the flu virus does, but again, there's many unknowns. this is one of those things or we're learning about it and treating people at the same time >> all right, doctor, thank you very much. we very much look forward to getting all of that worked out best of luck to you in all that important work that you're doing. >> thank you and good thursday morning, welcome to "squawk alley." julie and mike santoli with me for the hour we look at the major indexes this morning the dow and s&p, pretty much treading water nasdaq doing a little bit better but mike, can't keep my eyes off apple, getting closer and closer to that $2 trillion mark it's up about almost 2% so far this morning >> yep continuation really of yesterday's trend where there was a return to those, you know, very familiar winners that have kind of -- seem overworked but they still continue to go higher, apple up something like

3% yesterday so it is the year to date momentum names in technology and large cap growth that are taking things there cloud stocks, the broad software group, e-commerce, all those baskets are up 2% or so today, so you know, at a time when people are unsure about the fiscal package getting through and maybe what the pacing is of the domestic economy, kind of the old reliable move is what's working for now but as you say, the broader market is kind of on the softer side for the start. >> julia, a bunch of technology names that have dipped their toe or maybe a couple of legs into media also higher this morning looking at amazon, up 1.5%, alphabet up a little bit more than that. netflix itself, which is all in on media, of course, up better than 1%. that trend continues >> and of course, we have to point at tesla, those shares up about 5% and just look at tesla, up 290% year to date, john, just really striking in the context of

everything else today. >> yeah. needham's chris wrestler is going to join us in a moment stuart george joining us now good morning >> good morning, john. thanks for having me on. >> great to have you so, we've got a number of the stocks that have been driving the overall market higher. they seem to be a continuing to perform at least so far this morning. how do you feel about the action thus far what if anythi what if any moves are you making >> we're not making any particular moves right now but i feel pretty good about where we're headed and what's been happening since the actual covid-19 pandemic has been taking place a lot of the cloud names are the names i focus on look at companies like the googles and microsofts and amazons of the world, those are sort of the leading companies in the cloud space, and while they're already leading prior to the covid pandemic, a lot of that demand for their services has been brought forward so not only are they great covid cloud plays, they also have individual

businesses that also make those companies continue to be available such as microsoft teams, google's youtube, and obviously amazon's package delivery business. >> chris from needham also joining us chris, from your perspective, are you looking below those big names that have led the market higher thus far, putting more attention to certain themes here, or not much change based on where we are in the overall indexes right now? >> we spend a lot of time as a small cap manager looking at those areas of the supply chain, and we think that there's still a lot of value in that area. the themes that we're seeing where people are continuing to build out, 5g continues to be just a monster theme we see going forward for multiple years on a global basis. infrastructure, building out, the work from anywhere, you know, we're also seeing, as

education is trying to manage and navigate through, how they're going to reopen. we continue to see investments in those areas to make the schools functional and technology's a really big part of making that a success going forward. so, that is where we're finding investments at this point in time you know, all the dollars have flowed to many of these much larger mega cap companies, but for investors that want to do due diligence as active managers, we're finding some real fertile investments out there. >> sir, what are some examples of names where you still see a huge amount of opportunity either to benefit from 5g, as you mentioned, or other sort of stay-at-home trends, especially considering there's so many stocks that have seen so much growth so far this year, especially in that stay-at-home sector >> yeah, that's a great question while you look at companies like i mentioned, the googles, amazons and microsofts of the

world, while they're rather large companies, if you think back, 5, 10 years ago, those companies were at that point in time as well but thing they have in their favor is that they are leaders within a particular sector that is drawing a bunch of growth forward and demand forward so, i think these companies will continue to grow and are the places that you want to focus from a large mega cap standpoint but another area that i like is artificial intelligence. that's also another area that has drawn a lot of demand forward and one of the companies that i think about there is nvidia they're the leader in gpus, graphic processing units, for video games and also a lot of automakers use their artificial intelligence chips in their car and they recently signed an exclusive deal with mercedes to help develop a specific line of cars for mercedes that focuses using their artificial intelligence computer technology >> chris, it's been a while, probably, since scisco was a

broad technology bellwether. the stock is down today, hesitancy among customers to do some buying for its gear, its equipment. what is the read through there, if anything? given the fact that the very strong areas of technology, like cloud software, like e-commerce, like semis, are up a lot already, is there any way to be concerned about capex trends that affect other areas? >> i think that companies do have a little bit of difficulty. if you need to be on prem or for installs, you know, some of the larger sales have been more difficult, but i think what we have seen is things where, like, software and deployment and security software, where they're not nice to have, they're must-haves, especially with the distributed workforces and all of the components on the edge that need to get into the system, you know, areas of software security, i think, are probably better placed to be and

i think even cisco mentioned that they might be looking to do some m&a and that might be an area that they would be looking. but you know, generally, we still think that there's a lot of investment to go into the system as companies and institutions need to improve their systems. so, not a surprise that there may be some blip in their business, you know, clearly global trade is also something that plays into it as their geopolitical factors are weighing, but in smaller cap companies where you can get behind some of these stories, we think, again, are great places to be. >> and then finally, stuart george, i wonder what you think about product launches microsoft is launching surface duo. we expect to see that coming up september 10th or so, i believe. apple launched a new mac, plans

to launch an iphone before the holiday, a little bit later than some might have expected but they've committed to doing that. three months ago or so, we weren't sure how and whether these products were going to come out do you take that as a sign of optimism, and is there a specific investing opportunity around that? >> yeah, i'm not sure about the specific investment opportunity around there but i do think it's a sign of the recovering health of the market and the economy as a whole. so, certainly, having products that were delayed or not announced to be announced recently, it's a huge process line from where the market is headed but one area that i think is really a focus area to think about going forward, not only from the taking advantage of covid pandemic but also from a generational standpoint is sort of the cashless payments area. i'm a big fan of paypal and square, i mean, i think about the millennials and gen x. a lot of them are underbanked and looking to invest in markets and paypal and square offer that ability. square's cash app allows people

to buy stocks on a fractional basis and even invest in bitcoin along with their seller ecosystem and their peer to peer payment so those kind of spaces that again are thematic plays, they're a play on the growth of the future and they're also bringing that growth forward due to the covid pandemic or the faces that i would focus most. >> you're not the only one with your eye on fin tech chris, stuart, thank you >> thank you very much getting some headlines from the president. elon is with us now. >> reporter: president trump announcing a new peace agreement between israel and the united arab emirates. he is speaking to reporters in the oval office right now. the uae is only the third arab country to recognize israel's existence. president trump said that he's already discussing with other nations the possibility of additional cooperation he says that the two nations will exchange embassies and ambassadors and begin

cooperation across the board in the room is jared kushner, someone who the president had tasked with the middle east portfolio, achieving some measure of peace there this could be seen as a major foreign policy win for the president as he heads into the election, but again, right now, he is speaking to reporters from the oval office. a new peace agreement between israel and the united arab emirates we will bring you more as we have it, guys. back over to you >> thank you so much really appreciate it now, john, we also have to talk about apple apple shares up over 2% today. that company reportedly working on a series of bundles that will combine several of the digital services for one lower monthly cost we're talking about apple tv plus, music, et cetera now, bloomberg says the bundles could launch as early as october, maybe alongside the new iphone to me, this totally makes sense. we've seen this coming for a while. what do you think? >> yeah, i mean, i wonder why they haven't done it sooner. josh lipton and i have been

talking about this i know he's asked tim cook about it if you have one bucket for apple music and apple tv and icloud and you're big on services, why not offer people a little discount for dipping into multiple different services? we can't forget arcade, other things they're trying to upsell people into. now, apple doesn't like giving discounts for anything, so maybe they wanted to argue for the stand alone value of these services, but come on. i mean, mike, you can take a page from the cable industry, triple play, you know, maybe quadruple play there's so many services out these days, it seems inevitable. >> i think it's interesting, if you were to break it down and figure out exactly what the sum of those services is worth and then what the price point might be if you remember, cable, they basically just passed through roughly speaking the price of the actual networks. they were really kind of selling you the connections, so i do wonder what apple as a service, if that's what it would roughly be, might be priced at, because i'm not sure what music plus

apple tv plus and the rest of it, you know, what the real current dollar value of that is. >> so much of it is a sunk cost. isn't it i mean, when you think about how much you're paying per month for apple tv plus versus music, the cloud storage, which they've got tons of and have invested vigorously in. the value for them is really keeping you inside their ecosystem so you buy a lot, so you buy a new phone, right >> yeah. it's all about keeping it in the ecosystem and john, i think it's also going to be interesting to see not just how they bundle these different services with each other but how they continue to bundle the services with the hardware so we saw that with apple tv plus, if you bought a new apple device, you got a year of apple tv plus, then, of course, they are going to want to convert all of these people to paying subscribers but they also have that news product, there's so many different reasons why they could use this or how they could use this to introduce people to

get another one of their services oh, you're interested in games try arcade you're getting it basically for free because you're already paying for tv plus so it seems like there's huge potential for upside here. >> remember a la carte we don't hear so much about a la carte anymore. ever since -- i mean, disney wasn't first but we got that bundle with disney plus and espn and hulu it's like these giants have become the new bundlers and they've shifted their messaging, i think, away from, hey, look, you can buy one song from 99 cents to, hey, pay me every month and look at all the value that you're going to get >> but you're not paying for as much stuff as you didn't use before so before the problem with the big cable bundles, you were paying for hundreds of channels you might never look at here it's a more focused bundle and oftentimes a more customized bundle and i think that's why it's going to be more appealing. also, perhaps, less costly than the full cable bundle. >> no more paying for hundreds of channels you might never look

at now you're paying for thousands of shows on the cloud you might never look at. as we head to break, shares of revolve are up more than 30% in just the last week the cofounders and co-ceos are going to join us this hour stay with us senses. the audi a6. get exceptional offers at your local audi dealer.

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now that's simple, easy, awesome. switch and save up to $400 a year on your wireless bill. plus, get $400 off when you pre-order the new samsung galaxy note20 ultra 5g. let's take a look at shares of cisco, down about 11% this morning despite a beat on the top and bottom lines a drop in revenue year over year i mean, orders were down 10%,

which is the worst performance since the financial crisis, but really, that guide on the top and bottom was soft. the street was hoping for a lot more there you can see that stock, again, down about 11% don't go anywhere. "squawk alley" is back in two.

our next guest just partnered with microsoft to invest $25 million in small businesses, including minority and women owned. christopher williams, schenck

chairman joins us now on that announcement good morning so this clear vision impact fund, $25 million seed investment from microsoft. you're targeting a size ten times that at $250 million what do you think you can accomplish and how soon? >> well, the key is to, as we look at the distressed economy and the impact that it's had, particularly on small businesses and in fact many of the businesses in the minority community but in other distressed and underserved markets, the key is to have an impact, and the impact we're defining as an impact on increased employment, increased employment of diverse talent, training of that talent, and then more broadly, actually having an impact on the community so also impacting the

educational opportunities for whether it's looking at students in school, and many of them willing leveraging technology as we know in order to create an enhanced educational experience and in many of these communities, they don't have the same technology that they do in more prosperous communities. so, the impact will be one that is to increase the economic prosperity but also the quality of life. so, it's multiple facets that are being addressed here >> do you have the strategy sketched out yet because the description i see is that this is investing growth and operating capital in small and medium-sized businesses, so is this more newer businesses that need capital really get going or is it maybe existing businesses that have a track record already and are just struggling in this economic environment, you're going to help them keep going >> well, it's more the latter.

many of the business that we're focused on are businesses -- and we've already seen a lot of inbound requests for financial support. solid businesses that have actually had a track record of operating but have been adversely impacted by what we've seen as a result of covid and the economic downturn associated with it. so, we'll be providing both debt and, in some cases, equity support when too much debt cannot be borne by a specific company. and that will enable them to not only grow their business, hopefully invest in additional resources within their business, so that they can be a stronger partners with many of their customers. bear in mind, many of the smaller businesses that are out there, they're often customers of and suppliers to many of the large businesses, so in a way,

the fact that our natural relationships include small and large businesses and many of our biggest clients are the household name institutions that will be hopefully supporting this fund and microsoft being one of them. but the key is, when you have those relationships, there's often an opportunity to marry that with certain businesses who can invest in themselves through the money that we provide, become a more vital and valuable supplier to the companies that they work with, and therefore become just a stronger organization from an economic perspective. >> christopher, julia here i know that women and minority owned businesses have traditionally had far less access both to debt and funding and i'm wondering how much do you see that as a financial opportunity. these are businesses that were

underserved by financial services, traditionally. is that a huge opportunity to give them the resources they need to be able to accelerate their growth, and how are you making that part of the narrative beyond just doing something that's good for the community and good for business? >> right well, that is so key historically, you're absolutely right, many of the women and minority owned businesses in these communities have not had the same access to the capital that's needed to invest in their businesses, to grow their business, to hire the proper staff, to purchase the equipment or resources that enable them to play on the larger stage so, what we will be looking at is evaluating each of those businesses and make no mistake, this is not a fund that will be making grants these are commercial

investments, primarily debt with the possibility for a portion of equity but the key is to find those entrepreneurs, those business owners, those executives who are, in fact, able to take that money and can identify an executable plan to put that money to work to help make their businesses more viable, more valuable in terms of to their customers and to their business partners, and therefore offer an opportunity for us to receive a return on the investment because at the end of the day, it's an investment >> given your relationships and the network that you have over the normal course of business, i mean, how quickly do you expect to be able to deploy something like $250 million and what do you think may be the average investment size or loan size might be >> well, we're actually in the discovery phase in terms of

size, because we have already gotten a lot of inbound questions with respect to just how much we would be willing to invest, not even from this fund. this is just relationships that we have in the marketplace that are constantly looking for funding from an organization like ours. so, whether you're looking for someone looking at an organization that has a $1 million to maybe a $10 million need, could be that we would do larger obviously, if we're at the $250 million fund size, there would be limits in terms of the percentage of the fund, but let me just point out, in terms of sourcing deals, we, as a firm at siebert williams shank, we have 20-plus offices nationally that gives us reach, first of all, into a broad range of networks with an interaction with businesses. we have corporate relationships in over 40 of the states and certainly in every major

population center. we have a thriving municipal business that has relationships with and maintains relationships with many of the state and local government elected officials but also with all the various business leaders within those communities. so, it's really a broad network, and then when you add in the professional organizations, many of which -- and social organizations as well, many of which have a large percentage of their membership that are minorities, for example, be the fraternities, sororities and national organizations, you really have access to a broad range of opportunity and we'll be able to identify the need >> christopher, that makes me wonder, what is it that you don't have that you wish you had? in terms of either data or resources to help communities more or get even higher quality investments and a higher hit rate >> well, this will take a lot of

work on our part to mine through all of the opportunities that come in and identify those that are the most deserving of the investment based on the likelihood that that investment will not only enable them to succeed and grow and provide a return but also have that impact again, will they be able to hire the people will they be able to train the people, provide the internships? all of those and the important factors and that requires just a lot of leg work and i don't think there's any substitute for that so, you know, we look forward to seeing the incoming inquiry and then we'll be sifting through that to determine where we can put the money to work. >> keep us updated on your progress, please christopher williams, chairman at siebert williams shank. thank you. >> thank you very much appreciate it. later this hour, the company that 10% of public schools are

turning to as they figure out how to teach and learn remotely. the ceo of dream box learning joins us on the other side of th bakst wh ayitus

welcome back i'm rahel solomon. and here's your cnbc news update burger chain johnny rockets is getting bought by fat brands the price tag is $25 million following the deal, fat brands will have 700 locations across 9 restaurant chains. three out of five parents with school age kids say remote learning will negatively affect their finances that's according to a survey by bank rate. 30% say they'll have additional expenses like technology, tutor, and meals. you can go to cnbc.com for tips on reducing the cost of school supplies and in california, an amazing rescue of a man who was nearly hit by a train. police released this video of an officer rushing to help a 66-year-old. his wheelchair had gotten

stopped and stuck on the train tracks an officer was able to drag him to safety but it was such a close call that the train clipped that man's legs. he has been taken to the hospital and is expected to survive. that's our cnbc news update for this hour. "squawk alley" returns in just a moment ecking with their supervisor to see how much vacation time they have. or sending corporate their expense reports. i'll let you in on a little secret. they don't. by empowering employees to manage their own tasks, paycom frees you to focus on the business of business. to learn more, visit paycom.com ♪ i keep working my way back to you, babe ♪ ♪ with a burning love inside

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zip code they're in. and we think the way to do that is to personalize the learning experience so that it's engaging, it's effective, and it's highly, highly personalized we developed an intelligent, adaptive learning engine, which was pioneered in 2006, to actually track how kids are thinking so that we could match the curriculum to exactly where they were so it was -- it would never be too difficult or too easy, and it would always be engaging and kids would struggle productively and learn and master skills. >> so, jessie, you were already working a range of schools pre-covid but then in the first half of this year, i understand you've had more than 50% revenue growth how much has your business changed now that a lot of teaching is happening remotely and how has your service changed as you prepare to get teachers and schools ready for the back to school season >> you know, we really didn't know what to expect.

we just knew we had to embrace change schools were asked to change, and parents were asked to change, and we changed too so, we opened up our platform for free through the end of the school year just to make sure that parents and teachers didn't have to worry about mathematics, and we saw two -- over 2 million kids join the platform in less than six weeks, and so that's great growth but it also means it strained the organization, and when you grow that fast, i like to say, you get stretch marks, so we're managing through our stretch marks. that means that we have a lot more students and a lot more volume to manage in a much -- in a much smaller piece of time and we thought we would get some relief as schools would go back to school in live classrooms, and what we're finding now in the last couple weeks is that there's an acceleration in the number of schools and districts that have decided to remain in a distance 100% online learning mode >> yeah.

jessie, talk to us for a moment about big picture, what are the gaps that you see in the technology driven distance learning process so far? because from so much of what i see, it's widening gaps between the haves and the have notes when the narrative was this was supposed to help the process what's missing what are the missing ingredients that could help rectify things like that? >> this is a big concern and challenge and i would say an opportunity for everyone involved in blended learning at dreambox, we never believed and don't believe that teachers can be replaced by technology. we have developed a technology that was designed to complement the live instruction, to complement the art and the magic that happens in a live classroom. so, we think there are things that technology can do better. technology can understand what each individual child is doing moment by moment and then can tee up predictive insights to a teacher so that they know what they can do and how they can

change their live instruction. so, you're right over the time of covid, we think that the gap between the haves and the have nots has grown larger because there are some kids that are permanently disconnected they don't have access to broadband and they don't have devices, and we need coordinated strategy, national, state, and local strategy to make sure that these disconnected kids are connected and they can leverage innovative learning technologies that complement what they get in the classroom. >> yeah, jessie, technology also doesn't provide discipline, structure, emotional support, encouragement. i'm wondering if you have any ideas or have seen any models for how, even when kids aren't in a classroom in a school, some of those types of ingredients might be provided when maybe the parent or grandparent in the home isn't able to have their eye on that child during every minute of the school day >> yes, well, one of the things -- one of the adaptations

that we actually made during the time of covid was we added a capability in the platform that will allow teachers to send notes to kids, so i don't think that all technologies are the same there's no monolithic online learning experience, and you're right, the many kids are not experiencing a positive online learning experience. we're thrilled that at dreambox, our kids are engaged they think they're playing a game but they're actually engaged in rigorous, meaningful, deep thinking mathematics, so that's why they love it, and that's why parents trust it. we saw an exponential growth in the number of parents who actually signed up for dreambox as well. parents need relief. children need engage learning, reliable learning experiences, and i think it's incumbent upon companies like dreambox to open themselves up to the scrutiny of third party evaluators as we did. a harvard study that we published proved that it was

efficacious and kids could get a 60% increase in their learning and on the other side, in terms of privacy, common sense media has given us their highest rating so these are hard goals but we've got to be intentional about subjecting ourselves to the scrutiny of third party providers, to make sure that kids and teachers don't think they're martyring their kids just by adding technology to their learning experience. >> jessie, as kids return to school and teachers try to figure out who's fallen behind, who has the biggest gaps, this is going to be an ongoing challenge as students continue to learn from home what are you doing in terms of benchmarking, in terms of helping teachers understand where kids are and how much they may have lost? >> this is such an important topic that you're bringing up. we actually had plans to add a data and analytics capability later in the school year at the end of this calendar year that

was intended for teachers to use with students in the classroom, and we realized that was not going to be relevant because kids were not going to be in the classroom with their teachers. so, we modified our product road map so that we could provide district administrators a glimpse about what has happened while kids have been out of school so, now, with dreambox predictive insights, within three weeks, they can get a very high confidence in what has happened, which students are still on track, which students have experienced learning loss, and which students have accelerated during the covid break. >> well, jessie, this will be a very interesting story to continue to follow thank you so much for joining us today, and we hope you'll be back to tell us more >> thank you my pleasure. china's largest housing platform set to go public at the nyse today the chief financial officer of ke holdings joins us this hour stay with us turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that.

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with retail foot traffic basically at zero, direct to consumer names like revolve have seen dramatic increased demand over the past few months as shoppers stay home during the pandemic the stock surging on big earnings beat. you see it's up about 18%. joining us now revolve's cofounders and co-ceos michael mente and mike karanikolas michael and mike, thank you both for joining us today >> thank you >> thanks for having us. >> so, i want to start off with the overall trend.

it sounds like you saw more customers, more shoppers, but each purchase price was or purchase value was perhaps lower. michael, what's the overall trend you're seeing this quarter? >> well, it's really a combination of things. one is the consumers' lifestyles really shifted overnight so there's been some rotation to slightly average over value like beauty and such but there's the component that with a lot of physical retail shut, there's definite been a little bit more discounting than we would have expected in nonpandemic times but overall, we think we managed it incredibly well our inventory turns are some of the best we've had in five, six years and because of our business model, we've been able to navigate it quite well. >> and mike, i know you started selling masks rather quickly, which of course was a good move but what are the other trends you're seeing and the types of things people are buying and how those compare in terms of margins with the types of things people used to buy pre-pandemic. >> we've seen a huge shift in expansion of wallet share with

our consumer, so beauty is a huge category for us it's gone into triple digits year over year the asps there are lower but it has incredibly allow return margin as well and i think, you know, that reflects in the results, which is record earnings, actually, our highest earnings ever for any single quarter was achieved in this quarter during the pandemic >> what are people buying stuff for? i mean, usually, i think about people shopping at a place like revolve, it's to go out but i imagine, you know, more people than usual are not going out so are they buying to stay in and do something in particular have you seen sales of bags fall off the cliff but intimates go up what's really the trend in terms of behavior, michael >> you know, we've seen a little bit, no doubt, the lifestyle's shifted so we're seeing a lot less fancy dresses and event-driven kind of outfits but really there's a whole other range of needs we're seeing people at home more for at-home zooms and such and

people need different outfits for that we see a slowdown in shoes but massive growth in intimates, sleep wear, lounge wear, of course, but also a lot of daytime categories, summer dresses have been good for us as well so, it's really a new lifestyle and we really have built our merchandise assortment is a full lifestyle brand and we have something for someone and their lifestyle. >> mike, i guess the conventional wisdom for some time had been that the massive dominant platforms across all these different categories might kind of consume all the oxygen in terms of e-retail what are you finding in terms of the ability to have people find you or find customers or keep them just kind of checking back? because it's not just revolve that seems to actually have found a little bit of a niche in this current environment >> yeah, definitely, we think we're getting stronger than ever and we think this online fashion destination that we've built for younger consumers looking for premium fashion is really a leader in the industry and if you look at fashion, it's always been fragments. it's never been dominated by a

single big box retailer so we don't think fashion is going to play out the same way as other categories and i think the proof is in the results and in fact, certainly everyone always worries about amazon but we've been competing against amazon for years. they bought our closest competitor, i think, 12 years ago. and since then, we've well outpaced that organization so, you know, we feel great about the trajectory >> you know, guys, we're seeing some video of some of your marketing campaigns you've done. it seems like you've done a lot of event marketing places like coachella, i very much associate your brand with people going to coachella, wanting to get dressed for coachella and having big marketing events there obviously there are no events to market at right now. how are you thinking about the transformation of your marketing and when live events do come back, are you going to need to have a presence at coachella or is it going to be all about instagram and facebook marketing after this >> yeah, you know, we're definitely known for our events and i truly miss them.

i can't wait but in-person events were really relevant to the consumer when they were out and about, going to music festivals and traveling to europe for the summer but because that's not the lifestyle for a consumer now, the team's done an incredible job of switching to virtual events where quite an tras to physical retail, our marketsing is more relevant than ever, people are on their phones things like virtual pool parties, at-home workouts, kind of classes and things like that. and it's gone extremely well and the one huge benefit is that doing virtual events is a lot cheaper than flying everyone to mexico or to the caribbean for a massive event to that's really reflective of the marketing efficiency we've seen in this quarter. >> mike, speaking of efficiency, why were your inventory turns so high at a time when i would think demand would be really hard to predict? what did you do and how sustainable is that? >> yeah, i think it really speaks to our business model and

how we're differentiated from traditional retail the way we manage our inventory is primarily with proprietary technology and a data driven dna that was built from the ground up 17 years ago so the team was able to pivot really quickly into the categories where we're seeing consumer demand and produce incredible results and i think that's really on to this quarter is how well we manage the inventory i think that's big between us and traditional retail >> well, mike and michael, fascinating times for your business finding new products as your customers are at home you see your stocks up about 17% now. thanks so much for joining us. >> thank you >> high inventory turns have revol revolved shares of tapestry are under pressure despite better than expected results other companies also lagging ranging from the reits to retailers including gap and

under armour 'lbeig bk.

welcome back we have mentioned it before but apple up almost 2% today near the day's high. inp ching closer to that $2 trillion market cap. i remember it was a couple of years ago it was at one trillion people were saying large numbers. its best days are behind it. between that and the tesla calls, who knows is there law of large numbers? does that exist? >> i would say i'm a stickler

it's very difficult to know. i think the real interesting thing about the path from one trillion to two trillion was summer of 2018 when it first got to one trillion is it almost come from a higher valuation placed on each dollar of apple earnings that bull story that was in place for a lot of years that finally did come to fruition that it was a more stable earning space and the cash flows were more predictable because of the smooth upgrade, all that stuff has actually made its way into the valuation to the point where it trades at 30 times forward earning and always used to trade at a big discount >> i imagine it's a hard stock to sell, too when you think about what's happening with bonds and where do you go for consistent return and cash apple has a dividend

as loyal as the customer base is and as much cash as they've got on hand, you can probably be pretty certain, at least, they will pay it out in the near term it's worth considering the potential value that apple could generate by bundling the services together. the idea of taking someone who might subscribe to apple tv plus and giving them the opportunity to subscribe to other services it's way to lock consumers into the ecosystem and grow the rekur recurring revenue. really a lot of potential there. it's not yet open for trading. did price at $20 a share as

indicated to open above $30 at last report. thank you very much for joining us congrats on if ipo i'd love to hear about the state of your business the housing market, the new home turn over market in china and how it might have changed, if at all, with the coronavirus crisis >> it was shut down for months for the -- it dropped 8.3%

the year two single culture almost 1 trillion and also we have a very good from the rnb and they have very good ability for the single quarter >> have you detected any change in people's interest in, for example, moving to cities or any other longer term changes in consumer behavior based on what has just gone on >> i'm very happy to show very interesting phenomenon almost 50 times. because our agent and our home

but because we have so they can do the and they are doing this open and all of the traffic suddenly they are have the amount this is the technology that change the world also it continues to solidify our market >> thank you very much for checking in with us. good luck on the opening the stock has indicated to open a good deal higher on the first day of trading thank you. >> thank you >> we continue to watch not only the broader markets but a few specific stocks. lyft is down almost 4.5% reiterating what uber ceo said they might have to shut down in

california in light of the regulatory pressures there until perhaps in november an election swings things in their direction. you have to wonder whether this is really a move to influence the electorate >> well, certainly this is really what is going to be the future of these gig economy companies. uber and lyft saying they might not be able to operate in california if they have to treat their gig workers as employees and have to pay those additional benefits that stock is up 6%. mike, got to mention once again cisco is down 11% this morning >> i did see i think it was goldman sach's showed their

indicator did have pretty sharp downturn their destiny isn't really in their control fully as we now know they are kind of depen dent on corporate gdp so some degree stock is back down to where it traded two and a half years ago. >> thanks. the nasdaq is up we turn it over to scott wapner and the half thanks welcome to the halftime report the return to new highs and what could be the next big catalyst for stocks. let gee let's go to the wall s&p goth