>> it has been but, anyway, we are powering forward, powering through it i will see you tomorrow. do you know who i hear is on with us? sully. that's going to be -- not the guy from monsters, inc., not that sully, but brian sullivan. >> different sully. >> yeah, different sully anyway, we will see you tomorrow, becky, make sure you join us tomorrow "squawk on the street" is coming up right now. >> see you guys. ♪ good tuesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer. david faber has the morning off. s&p needs about 11 points for a fresh all time high and the stellar results from home depot and walmart may help us get there, although walmart has gone red premarket. coming up this hour treasury secretary mnuchin on the prospects for future stimulus, the house votes this weekend and a lot more but, jim, your discussion with becky a moment ago and your

tweet earlier in the hour does suggest that you think these retailers are prepping us for numbers that are going to be tough to replicate. >> yeah, i think that they have to, carl they all know that america was flush from the $1,200 check and they also know there is a lot of stay at home people trying to make their homes into an office and a home, and that that's largely passed now, that doesn't mean that you shouldn't buy these stocks because that money went to these essential retailers and now they're stronger than ever, but i know that if you are -- if you are at walmart it does not pay to say this is going to continue same thing with home depot i say you wait, let them come down and recognize that these are just so good that you want to be in them. particularly, say, if a lowe's comes down, that's kind of attractive, they report tomorrow look, these are remarkable companies, but they are also given as remarkable companies are to humility and to a respect to the individual investor they don't want to pick them

off. so they are saying, hey, guys, we wish we could keep doing this but understand there was a lot of stimulus money. >> yeah. mcmillen making some comments now, jim, saying a couple of things one is that back to school, slow start. >> right. >> clothing and backpacks have been weak so far and that they do want to see something in the way of future stimulus that does help small business which has been what you've been preaching. >> oh, my. >> we can stand here and watch the giants get bigger but a lot will depend on how mom and pop is helped out from here. >> the last thing you want if you are one of the ceos is to have to be called in front of congress, whether you're domino's, doug mcmillon and be asked how is it that you are able to destroy so many businesses is it fair maybe we need to break you up. they're great companies, they can buy in scale, they have great balance sheets i personally think that we as americans benefit from them, but i also know that also a lot of

small businesspeople and a lot of districts that cannot compete and when you see the prices, when you go to the local hardware store versus home depot it's almost as if they would be better buying the stuff at home depot and selling it at their place than getting the wholesale price that they are doing. so if the congress investigates it's going to be whether the wholesale price is fair between the small and the big. i would argue that of course scale should win, but that's a congressional issue. maybe the small guys deserve a better wholesale price that could be an issue. >> there are some more headlines this morning, jim. i thought what's interesting about the walmart quarter is it was almost a flip of q1 where grocery was the standout, this time it was general merchandise and they're giving examples on the call about fishing supplies. 25 million americans they say would go fishing before february that's now up 10 million so good luck getting any fishing gear if you were to go to a walmart this morning. >> it is incredible. as a fisherman i do feel that

this is one of the ultimate sports that you can have, it's fantastic, you go out, it's a family sport and it is something, by the way, that dick's excels at those who read that might want to go and buy some stock in dick's i also think that they said apparel was good and that, again, is something that i don't know that they can maintain. general mid teens apparel. now, grocery mid single digits is incredible. when i see mid teens general for apparel i think, okay, did they wipe out all the small apparel stores i happen to love my walmart. why? because they have great pick up. if you don't want to go into the store and, by the way, everyone is wearing masks in stores which i think really helps but it's a remarkable juggernaut and their e-commerce, oh, my, how do you do those -- how do you replicate that number? but then again remember they are, again, a humble company and humblecompanies do not say you

bet we're going to continue to crush them what they do is warn people, look, we have lean inventory, that's good, but we don't have government stimulus. that's why our interview with the treasury secretary is even more important when you have top executives saying, wait a second, this will not continue they are not saying that the unemployment is going to skyrocket but that is the implicatio implication. >> yeah. there an argument, jim, that the numbers, the strength we're seeing in retailers means that there doesn't need to be more stimulus >> i think that that's the -- certainly the superficial argument, yes. you could easily say look at these numbers. i look at it the other way which is that this next quarter that we are in, the ppp is done small businesspeople they took the ppp and now the customers aren't coming or if the customers come they have to be 6 feet apart one of the reasons why my travel stocks like costco is that the aisles are so wide that social distance which i think we should

now call physical distance because we are not really socializing with anybody, the physical distance is so great that they can put up inn incredible numbers when you go to the little stores sometimes you have to wait in line, you get in there -- i went for a sandwich this weekend and i moved four times, four times i apologized and then finally i told my wife let's just wait it's so uncomfortable. but a big store it's not. >> that's true, jim. basket size in walmart up 27 when people are going in store they're buying everything they're going to need for a long time and obviously going increasingly to e-commerce which by the way, at walmart is 11% of total sales, a year ago it was 6 and we are going to get more information walmart said today about walmart plus when the time is appropriate but the pivot, the long-term pivot to online is -- continues to amaze. >> if they have a club i would join that club they have tremendous delivery. i'm happy to have the guy come in with a body cam, give him a

one-time each day the code would stop, body cam, put it right in the refrigerator because i come home, i'm living alone, i'm miserable, even john oliver commented about how miserable and sad i am. >> yes, we are going to hear that later. >> it would be great i want mark loriu >> a, bucknell, fantastic, i need his people to come in and make me no more pathetic behavior when i get home where i'm looking at -- last night i made pasta, okay, the night before i made some pasta, then i made pasta and then i have to make pasta because i can make pasta. >> yes. >> i burned the chicken the other day. >> along with picking a hidden tomato and canning and listening to the rain. >> i love the big -- look, i get clothes at walmart the clothes are much better than they used to be. i used to go to walmart and all they had was size 45 >> i know. i think that's changed

the perception of what the notice you get there that said, though, jim, the rivals are not standing still. the journal today with this piece on amazon hiring 3,500 in six major cities including 2,000 in new york where they're going to take over the historic building that housed lord and taylor, jim, that's not a thing you see when cities are truly dying, is it >> no, it isn't. i do think that that -- they could get that lord and taylor property for a song. they need to be that last mile to control things the last mile. i also think if we talk post office, i know the president is upset with the contract, i have to believe that the post office is overwhelmed with amazon and probably gives it top priority, again, that would irritate the president, but the lord and taylor property, google coming in new york city is alive, but it's just not alive for public transit which numbers are just ridiculously bad and the boarded up stores and the rentals. oh, my 10% decline in your rent price

it's only .5 in brooklyn >> right not to mention the spike in crime which is actually a phenomenon in several cities around the country as robert frank was telling our viewers earlier today. jim, all right, let's say for the sake of argument we get an all time high today, first since february 19. what does that do to sentiment >> i think that we have more chasing. i'd like to see -- i do fear the dollar could start going higher, it's been a not great trade, the dollar has been going down i do think that you would have people saying, all right, like david costian did the other day i have to come in. i do worry about the reversals in the retailers, there was a negative comment today -- two negative comments about apple, apple has been a market leader this may not be the day that we take them out. >> you're referencing mohan of b of a, went to neutral a couple weeks ago, a relatively big

deal, reiterates 470 target. now he is talking about pressure on the app store, whether it's from epic or from china, which was heart part of his less bullish thesis earlier in the month. >> right, and the doo he sell operation of the apple stores. of course, he is still not talking about the lifetime value of a customer with 99% customer satisfaction making it so the stocks finally got the final price as procter & gamble who sells a razor, now you get harry's club so who knows. apple, own it, don't trade it. you have bernstein saying something negative, wow, that guy is on repeat, but i do think that we need to see other groups besides retail move today. i would love to see the bank stocks going down, maybe that's asking for too much. >> we will get to some of those big names more in a bit, but of course after the break as we said the treasury secretary on all thgstiluanmo i a momentd ren otally blind. otally blind. and non-24 can make me show up too early... or too late.

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so many things to talk about including what are the prospects for a new potential covid relief deal because we sure don't have one now. joining us on the phone treasury secretary steven mnuchin mr. secretary, welcome back to "squawk on the street. >> thank you it's always great to be with you. >> same. so what can we look forward to here we are running out of money, ppp done, we just had some numbers that make it look like small business is being crushed by large business you care passionately about

saving the small business. what can we do >> well, jim, there's no question that the economic numbers are doing better so as we reopen the economy we see things better, but i agree with you, the president wants us to do more. he wants us to provide money for kids and jobs and the second round of the ppp and direct payments are a clear part of that >> how do we move forward here what can we do what can the media do? i'm not being presumptuous, it's just i feel like there's been some sort of log jam and i think people can be reasonable knowing that the little person is -- it's just -- in a void versus home depot, versus walmart, these numbers today are staggering against the small business. >> they are staggering and you can see the good news is that people are beginning to spend, but as you said, jim, there's a lot of need for small businesses half of the employment in the u.s. is in small businesses and

we need to support them. you understand this and i would just ask you to continue to emphasize these issues, but the good news is we're moving forward, the president's eo on unemployment we now have many states that are moving through that process, we have looks like five states that have already been approved, we have another four states that have submitted and about flour ten states that are in the process so the good news is despite congress not acting, because pelosi and schumer aren't willing to sit down and strike a reasonable deal the president moved forward with the eo to help people still unemployed. >> what are the prospects, you're looking a the 19 states, is it possible we will be surprised and maybe see a majority of states be able to come up with the money >> i would expect that most of the states qualify and they can use their $100 they're paying

for unemployment insurance to qualify to get at least another $300 from the federal government so i hope we see the majority of the states and hopefully since speaker pelosi is coming back to look at postal, hopefully she will be more interested in sitting down and let me just say as part of postal, i think you know i chaired a task force for the president on the post office, i also chaired the federal financing bank we are the largest creditor to the post office so i've spent a lot of time studying this over the last two years and the post office has plenty of cash on hand they have about $15 billion cash on hand, we signed a term sheet which is part of the c.a.r.e.s. act to give another $10 billion if they need it and speaker pelosi and schumer and meadows and i agreed on another $10 billion to the post office, which we didn't think wa completely necessary, but we agreed to as part of an overall deal to make sure they have money and, you know, unfortunately we can't -- we can't go through with that, but we were going to attach that to

ppp and direct payments and money for schools and hospitals and vaccine and lots of other important things. >> how about a small deal, something that just says, all right, restaurants, small retailers, different companies that obviously are on the ropes, while we try to -- while we try to get something bigger, let's get some cash to companies whose business has been interrupted, that's been your mo from the beginning and i think it resonates with republicans and the democrats. >> it does, jim. i think there is a lot of bipartisan support for that. i think you know working with both the sba committee on the house and the senate side it's been a real bipartisan effort for the ppp. it clearly had a very, very big impact and going forward we've decided to refine it so i think the appropriate thing is move forward, this time it's focused on people that have revenues that are down 30% so we put a real standard in there and we give them a second check.

as you said we know a lot of restaurants that reopened if we don't give them more money they're going to end up closing and we are going to end up losing a lot of small businesses. >> 15 million people. >> the president would like us to move forward with it. >> i know you care parks in thely because you understand business and 15 million people should not lose their job because something that had nothing to do with either party or the state of the world past the pandemic let me ask you while i've got you, there is a bid, 80/20 bid, 08% private equity, 20% oracle to get tiktok. it's a real bid. it could come together today would you not favor that because there is no leverage over oracle by the chinese, unlike microsoft which actually even i believe has artificial intelligence business in china, oracle is clean, oracle has got absolutely terrific cloud business that larry ellison and katz know about, this is a deal that would

be great for america can you say that you want to get this deal done >> jim, that was a nice try but you know i can't publicly comment on these types of things i chair the committee on foreign investment in the united states and i'm on the security council and i can assure you we are looking at all the different issues and i can assure you any deal that gets approved we will make sure that american data is protected and that this becomes a u.s.-based company. >> we know there's 50 million users, the amount of times -- they're spending 50 minutes a day, the polls that i've got say that literally 25 million are republicans, 25 million are democrats. who wants to shut this thing down oracle obviously is a great american company that has no ties with the chinese to speak of i mean, i would think that this is something you would like to move along yes, nice try, but i'm not nice try business, mr. secretary. >> i got that. and that's why i deal with you and i like you all the time, jim. >> all right let's go back to the post office

for a second if you guys are so close, why does it seem like it's so far? >> jim, i really don't know. we started with a trillion dollars, we agreed to increase that in several areas in an effort to compromise i think as you know they started at $3.5 trillion, they actually increase it had to $4 trillion, they said that wasn't enough and then they basically said unless we publicly say at least $2 trillion so they didn't -- they didn't come down, they never made us a proposal at $2 trillion, they never gave us a line by line counter you know, there's a deal to do here if the democrats want to be reasonable i'm concerned about the politics in all this, but i'm speaking to the senate republicans, mark and i are speaking to the members in the house every day and i think there's a lot of people on both sides in the senate and the house that would like to see both republicans and democrats that would like to see people

come together and get a deal done that's good for the american workers and the american public. >> mr. secretary, do people understand that just because walmart and home depot have blowout numbers and i'm sure target and lowe's will also that that's not necessarily good for the working person >> well, jim, it's a two-tiered economy right now. there are some businesses that are doing phenomenal as you said as a result of covid, they are going to have their best years ever, and there's plenty of small businesses that are on the ropes and we've got to save those small businesses so this isn't about big business, this is about small business let me just say, you know, we have a lot of money we could have put to work with the federal reserve. the good news is we never needed to use the majority of that money, most of these big businesses went to the capital markets, they raised money on their own. so what we need to do now is make sure that small business has the support and that individuals have the support as you said, nobody lost their job because of anything they

did, they lost their job because of covid. >> mr. secretary, i have hope, you know how important i think -- and i'm just one person, but small business sin credibly important i know you feel the same thank you so much for joining us treasury secretary steven mnuchin, great to see you. >> thanks, jim. >> absolutely, sir. jim, great stuff we will take a break here. home depot has joined wall nauert in the red premarket but we will see if the stocks can make another run at an all te im high on the s&p when the opening bell rings in a few minutes. don't go away. is change.

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first big morning of the week for retail earnings take a look at the slooep laggards, though, kohl's is at the top of the list down 10% before the bell, no comps disclosed because of store closures we will lkorta me about that when we get the opening bell in a few moments.

>> announcer: the opening bell is brought to you by nuveen. a leader in income, alternatives and responsible investing. let's get cramer's mad dash. watching gm after that two-month high, jim. >> carl, the drum beat continues. break up gm. give us the ev people want ev those two letters together give you a higher priced to earnings multip multiple this morning the always controversial adam jonas, one of

the jonas brothers not at morgan stanley said you employed see ultium -- this is going to get the stock going again. carl, gm must keep its mouth shut because as long as they say nothing this thing could continue to percolate. the always unbelievable phil lebeau tells me don't forget red hot used vehicle market not slowing down we know that autos have red hot, jonas has a story about break up value. look, i can't fight it anymore, i like to see buy something on earnings i don't know about gms earnings but on a break up basis snongs the gm ceo says nothing i guess it can be higher. >> we have another spac entrant into the space with canoe as we watch lordstown and if i say kerr and nikola. jonas made the point that the reason musk is going pedal to

the metal because he knows the sandbox will not be his alone in a couple years. >> it really doesn't matter. i am a believer in him and a believer in tesla and i'm looking at the different alternatives and it's true, look, we have companies like amazon who are committed to supporting as many ev vehicles as necessary the one thing elon musk is fearless and i know that there are people who say, listen, china, he could be vulnerable. no i think the chinese want his cars as much as they do in europe the only thing that makes me worry would be if there is a slow down in the berlin facility and so far it looks like all systems go tesla is levitating here one day it will be down, that's what i think, maybe one day. i mean, no >> one day. >> one day. >> don't say with en. >> no, i don't. >> don't say when. >> we have a lot of viewers who joined us since april, carl, and they have never seen stocks go down and they're beginning to

think that what happens is when you buy a stock it goes higher too many people feel that way it won't happen >> 1900 premarket, jim, for the first time pretty unbelievable story. let's get the opening bell here and the s&p 500 map at the bottom of your screen. as we said looking for 1 is points or so 3393 to get to that all time high for a while, jim, it looked like walmart and home depot would be an assist, but we will find out. session still early. >> look -- >> retail will be the story all week. >> i would buy those stocks. they were not -- they were every bit as good if not better but some really stupid money came in, we have a lot of early -- no one wants to hear that there's stupid -- let's say ill-advised people who came in and paid much too much and you have to temper their enthusiasm these are great american companies that will do very well why? because as the secretary said we still don't have a deal. without a deal the ppp money is running out -- it's run out for

walmart's competitors. look out when i see that great mid teens apparel, i think, okay, how many apparel stores are going under because walmart is selling products so low? you may want to give up on them and think they have had their run. forget about it. the numbers will still be raised at walmart, raised in home depot and don't desert them, just understand people paid too much, they were too enthusiastic before they heard the comments >> right so are you arguing that a lack of further small business support sends walmart shares higher or is the overall macro weakness that would result a negative for the stock >> it sends them higher because i think that it's going to be surprising what we see in new york city with all the boarded up stores and the for rent is going to spread to all areas that have had a terrible covid experience and one of the things that walmart offers is curb side. you don't want to go into the store, smaller stores that compete with walmart because you don't think they are as organized.

the numbers that these companies spent on complying with covid is -- >> oh, yeah. >> what do you think a small business company can spend $1.3 billion? i mean, for home depot look at the numbers that they've been spending. so you feel safe and i know that wall mafrt when i talked to them offline, first thing, hey, jim, everybody wears a mask do you know what, again, when you are in these states where the numbers i think -- look, we all know the numbers are peaking but that doesn't mean that you're not afraid. so there is another level of store that is going to go under simply because they can't afford the plexiglas, can't afford to do what these big guys do and secretary mnuchin knows that the sign of strength walmart is a sign of weakness for many, many other companies and the goal is not to have walmart be ascendant -- we can't just have five stores, we can't just have watch, walmart, amazon, target, home depot and -- oh, my god, the other c.

w-a-t-c-h. it's target, costco -- i know how to spell, home depot and the thing that really worries me. >> -- >> five letters. >> when you see these other numbers you are going to have to say that lowe's is part of the group. now you really have a pincer movement on all the true values. using that as a metaphor. >> we will know more about that tomorrow. >> we don't want them going out of business, carl. >> covid related costs now -- i know margins at depot didn't expand but if you take out the employee bonuses it was up 130 basis points to a record 17. those are bonuses that smaller employees obviously cannot afford. >> think about what domino's did yesterday, they want drivers, assistant managers, pizza makers and managers you are at a smaller tratorria, you have eight tables inside, you have to do takeout which some of these guys, the door dashers take a big chunk as much as 30% is my experience. you are able to go against them?

you don't have a chance. i do believe that the democrats and the republicans have to recognize that those rent signs along with just banks that are closed at 4:00 are what our streets look like and they are going to be ghost towns unless we give these companies the money to be able to make it so that they can keep their tratorria open i know that the money is made on liquor do you think i'm not -- look, there were three places that closed on the block that i have my mexican place why? one of them was too crowded, the other served too much liquor and the third one we don't even know this is what's going on and we are just new york. it's all over the country. you have -- everyone says i have nice spaces outside. believe me, a bus comes by and you're finished. >> are you convinced that if this package were to get through it would be the last you've talked about the long wait for a vaccine, mcconnell has said obviously his caucus is not as unified as it was in

march and april. what we have to do this again? >> i think that the vaccine is much better than people realize. there was an article yesterday in the journal about the herd immunity i'm not buying that, but i do think that we are getting so close to the vaccine and there's so many trials going on that if you give us four months. four months. we are all going to feel like it's there. >> four months >> you can't -- they have to do -- remember they're giving it -- like when i'm in the trial, okay, i'm in new york where there's not a lot of people who have covid. you need people from florida, texas, arizona and california to get into the trial and the more they get those and they get the 30,000, then we're going to get good numbers and people will feel better, but right now all the authorities are really coming down with hobnail boots on the small guy because they don't have it together whereas the large guys, look, i mean, yesterday yum, pizza hut, one of the franchisees will have to close maybe 300 stores they are fine. yum is fine.

planet fitness is fine but there's just 30,000 other people who have got small gyms and we don't even have in new jersey all you are allowed to have is personal training. think about it no one -- no one can withstand that except for a place like planet fitness and the people in washington have to get their heads around the idea that when they see walmart up at the end of the day it's not yippee, there are a lot of shareholders at walmart, it's, okay, who did they crush >> yeah. that's a good point, jim i wonder what you made of the treasury secretary's comments on oracle which is performing pretty well here on this tiktok idea. >> well, you know, treasury secretary said what he said, i tried. i don't try. i do i think this bid is real, i think they've got 80% away, they can have a separate entity, they have great code work, they have a skunk works cloud operation that they don't even talk about. this would be the bid that the president should favor because

there's no chinese exposure. i know there are people in the white house, we talked to them who are very suspicious of microsoft, oracle does not have any -- any business to consumer. this would be fabulous for oracle it's the way for larry ellison to show without a doubt they've got a superior cloud product as he says every single quarter the money is ready i think this deal gets done. >> interesting i've seen one report that -- or one analyst at least who thought it was a done deal >> the oracle, done deal oracle is done >> yeah. >> no, we are not that far. >> he believes -- yeah. >> oh, no. >> confidence is high. >> no, this is one where the president and his team apparently feel that it's much less likely that the chinese can pressure oracle versus microsoft having a fantastic business in china that they could pressure and you've got to get the code all removed.

now, i happen to get that satya nadella is amazing and microsoft is a fantastic company, but oracle has been trying to prove its cloud bones for a long time and you couldn't get a better way to do it and you would get a dramatic acceleration in oracle's business because of the amazing 50 minutes a day that people are on this thing when i'm on it i feel like that my iq takes a sudden dive and that's just because i'm older, but the people really love t when i look at the numbers, carl, i mean, this thing is growing like a weed, it would be so great for oracle that oracle ought to put out a statement now, right now, which i'm certainly of course trying just like i did with the secretary to say, listen, we want it, we've got it, we've got 20%, private equity have 80, they are all based in america, this deal is done, mr. president, we are ready to roll. and then the president says, larry ellison, he is one of us bingo. deal done. >> yeah, so you sort of see

tiktok as proof of performance of cloud which was sort of the argument for azure and microsoft but you think it's more pronounced on the oracle side. >> yes, completely right i think that oracle -- oracle has said to me over and over again and i happen to like them very much, not that they think that, but i used to talk to the late mark hurd, i miss him, he was always talking about how great their cloud is, but they never got -- they never did the killer deal and this is the killer deal. this he should be really excited. i think we've got 50 million daily -- 100 million monthly average users growing like a weed, 50 minutes and, again, 25% republican, 25% democrat, it does skew conservative this is an oracle deal that could be done today. i have to encourage the treasury secretary to like take it to heart because i know oracle wants it and they're ready if they can do the code, carl, they want to prove that. >> i'm trying to listen to what

you're saying out of one ear and watching every tick on the s&p with the other because we are right on the cusp of that all time high. we need 3393.52. >> what we don't need are hats saying we're there because that is a kiss of death and i don't means coles which is kss we have some of these retailers, carl -- we are in a situation where we could be like rugs where all they had was gum and boy was that downer. we have to make it that we are not like a country that only has one or two places to shop. as much as i like walmart. >> i know. i mean, specialty retail is not playing today, whether it's pvh or ralph lauren, which, i don't know, jim, doesn't it fly in the face of actual quarter at walmart but certainly not with the commentary if mcmilllon is

true that back to school is coming up weak. >> we have to know it, we know it really as calvin klein, we know it as tommy hilfiger but the inventories are lean, i would have thought they would have acted a little better what's in play it's the cramer covid index to be completely arrogant about it. it's ring central, it's z scaler, it's crowd strike, it's kupa here it's happening again, octa. is there anything that can stop octa, which is really a passport company. >> teladoc. >> teladoc. >> zoom today. >> salesforce.com. >> this is not what we want, carl we want -- we don't trade the small guys, right? we don't trade nicola's pizza from rehoboth that i believe senator, vice president -- whatever, biden has been to many times. we are really -- we are seeing pizza shops close in front of our eyes and it doesn't matter

why? because -- i don't know, i happen to like domino's, it's fantastic on delivery, really fantastic, but i do think that when you get on the pedestal you don't have to touch anybody, it's great walmart, they do the curbside, it's great but, carl, how do you do curbside if you are a one-company shop how do you do it are you going to go out there and run it while someone is at the register you have to hire someone i mean, i don't think -- they've got to move fast we need ppp fast and we need oracle, of course, to buy tiktok. >> right. >> trying to do my best here, carl. >> i know. i know you're chopping some good wood here, jim. boeing this memo that's been reported from david calhoun regarding a second round of voluntary separations from the company. stocks not trading too bad but the sentiment around travel s i don't know, checkered at this point. >> yeah. they need a win. i think that one of the things that they are not talking about and i've been after them to do

this is the numbers of people getting sick flying, way down, because of masks they are not making you feel confident enough the air studies that they've done at boeing versus the air studies in a skyscraper, you have to pry this stuff from them i think that they think that it's out there, but boeing is another one of these humble companies where you have to kick them in the butt and say, hey, go i have us some goods. i wish we had gary kelly on, i know he feels strongly that it is the safest place to be but those numbers indicate that it's just not coming back phil lebeau did great stuff, again, on that yesterday cars are coming back, but -- used cars, houses are back, uh-oh, and here we go. >> we got it we got it, jim all time high for the s&p, 3393, almost 3,394, the first fresh intraday high for the index since the middle of february,

jim, when covid was simply something that was still going on in china. >> the average american is thinking that we are completely and utterly nuts they don't understand this at all. they don't understand it could happen but they also don't understand that the companies that are being traded are the winners and the companies that they may be used to away from them will be in oblivion and that's one of the things that is really going to be driving things as we see t of course, the banks -- look at amazon up 87 why? i mean, amazon obviously of all these other guys are doing well on e-commerce like all mart, then amazon is doing well. i think it's, tracted from the little guy -- i keep referencing the little guy why? that's who creates the jobs, that's who is going to be out of a job. yes, walmart will hire people and they have hired a lot, but the -- this is -- this is one remarkable run and like i said at the beginning, this is going to cause a lot of these guys who have price targets dr i saw price targets, for instance, for estee lauder which reports this week and you have analysts i'm using this as simply as a

metaphor, rbc goes from 173 to 194. hey, guys, it's a 213, wake up and smell the java the analysts are so far behind, this he have to catch up i see it every day within nike hold on, raising my price target nike, i'm going to 100 it's at 106. there is going to compel analysts to join the costen crowd. costen crowd meaning people from goldman. >> that's a good way to put it. >> they have had to take up their -- they had to take it up. they had to take it up a lot of etfs that are flying. in the meantime let's not forget oracle very big company, we tend knowledge it's not it's a $172 billion coverage and sofrakatz who is the chief executive officer i'm told she's very tight with none other than president trump. >> jim, on that note let's turn

to bob pisani on this new intraday high, first in several months good morning, bob. >> you know, sam stovall my old friend, carl, always used to say new highs are kind of like rusty doors, you have to push on them several times before you finally get them open and that's exactly what happened with the new highs. let's just take a look at the sectors today because what's happened is, again, you can see technology is helping push us through there, banks not doing so much, industrials and energy modest gains, but they have had overall laggards, this has been largely a tech rally i want to note the retail -- i call them blowout comp store sales numbers from home depot, walmart and even advance auto parts were terrific. home depot down a little bit, but remember it hit a historic high at the open today so a little bit of profit taking maybe is in order. kohl's is a little bit different here, they had good numbers but were talking about soft back to school shopping and that may be an issue for a lot of people bear that in mind. you see kohl's to the down side

even though their report wasn't that bad let's call it the same store sales blowout. you do not usually get estimates off by 100% at this point. home depot 23%, the estimate was 10 walmart, 9, estimate was 5, and great online sales from walmart. advance auto parts 7, the estimate was for 2 these are way above normal numbers, normal deviations from analyst estimates. remember, we want to hear more about back to school, that may be slower than normal and that may be an issue, but these are terrific numbers as for the new highs on the s&p 500, look how far we have come in six months. i'm talking six month. the historic high the old one february 19th, the bear market bottom that was march 23rd that was a drop of 34%, that was the shortest bear market since 1929, it lasted 33 calendar days from february 19th to march 23rd. that's remarkable. and there is that new all time high for today, we rallied 50% off of those march 23rd lows, took less than five months to

get back to new highs. that's the -- i believe the third fastest rally to recoup all that it lost behind 1982 and 1990 i want to remind everyone still very much driven by technology, those mega cap stocks moving things along dramatically and still lagging behind from that february 19th rally, the industrials, the banks and the energy stocks down 31% so, remember, a lot of companies still not back to anywhere near their old highs. as for where we're going from here, choppy, that's the b of a global fund managers survey just came out today most do not expect a v-shaped rally, most talking about a w. the most crowded trade, guys, carl, long u.s. tech still there, but here is something i haven't seen before, long gold is showing up as a crowded trade of course, gold sitting over $2,000 what a day carl, back to you. >> yeah, you got that right, bob. a lot of interesting numbers in that survey. thanks, bob pisani we will take a break here. if you are just joining us this

morning, s&p all time high today, first in about six months going back to february 19th, we are back in just a moment. t-mobile and sprint have merged.

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for a record high on the s&p 500, first time since february '19. how are bonds responding for that we turn to rick santelli this morning. hey, rick. >> hi, carl. we had strong housing starts and permits but that didn't push yields higher. two day of 30-year bonds, we're at 1 at 1.45. overseas a one-week chart of 30-year bund yields. why am i showing this? we're slipping back into negative territory after slightly going positive. open the chart up to march 1st and you can see in march, when all the markets were going wild, they were down to almost minus 50 basis points. it's been a long journey back, but many traders are using that as a canary in a coal mine. maybe rates peaked on the cycle. we need to pay close attention foreign exchange the euro versus the dollar continues to zoom, zoom, zoom, jumped over 119 today and opened the chart up 27

months ago to may of 2018 because these were the best levels against the greenback by the euro and the dollar index also at that same point and time at 27-month closing lows carl and jim, back to you. >> all right, rick, thank you very much. so once again, fresh all-time high on the s&p, and rick's picture of the bond market is well said although decliners once again leading advancers, another sign of where this market stands we're back in a moment good morning, mr. sun. good morning, blair. [ chuckles ] whoo. i'm gonna grow big and strong. yes, you are. i'm gonna get this place all clean.

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all right, so with a fresh record high under our belts this

morning, take a look at some of the gainers on the s&p for the year to date, nvidia, dexcom, west pharmaceutical, abiomed and paypal leading the charge for 2020 we'll get "stop trading" with jim, after a short break

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this is the actual barstool book which i think is going to be fantastic. they can do a tv rights deal, and yes, it is portnoy, who is so busy you know, with all the -- he's doing all the cryptocurrency stuff he's become a little boy, like a suit i feel he's become a suit, but this deal penn national gaming how they can buy more barstool and just a match made in heaven. i've got to tell you, the stock can go much higher >> interesting, jim. >> and you know, bitcoin, we don't mind bitcoin we love the fact elon musk, the text and the twitter and stuff and you know what we want from him, who is going to win the super bowl and whether there's going to be a season and maybe some of the matchups wouldn't that be good? he can do both

he's ambidextrous. >> on the season, jim. how about tonight, what have you got? >> ehealth, controversial company and columbia sportswear, a fantastic line of cold winter sports people should be thinking about this company they've had to close a lot of stores tim boyle is a terrific statesman for the industry what a day, carl, all i can say is stop being greedy people. don't be greedy. it's been a great run. there's nothing wrong periodically to ring the register and go out and buy a really nice cashmere sweater online from target >> something you've long said, jim. see you tonight. "mad money" 6:00 p.m. eastern time >> oracle, oracle and oracle good tuesday morning, everybody. welcome to another hour of "squawk on the street. i'm carl quintanilla with leslie picker and john ford david and morgan have the morning off. our road map begins with stocks at record levels the s&p finally hitting that all-time high, just moments ago. >> and then blowout earnings results powering the dow higher

action a breakdown of walmart and home depot's quarters next later, riding the spac wave. reinventing the ipo. >> let's start with stocks this morning. obviously that's the story of the day, the all-time high for the s&p, nasdaq rallying as well with its 33rd record close of the year let's bring in wells fargo asset management ann milletti to talk about what this means and changes perception of equities versus everything else what do you think? >> you know, the perception of equities has been very positive, but i think it's because the economy has recovered really strongly we've seen a v-shaped recovery not just in housing, but we've seen it in industrials as well, and in the job market. so we've seen it across the board. the market has responded to that, and certainly it's responded to the increased liquidity across the board

>> so you reject the notion that the stock market is not the economy? >> i don't reject that notion, but it has responded very favorably. it's also the stock market is a projecting tool, right, and it has very quickly off the bottom, as we're talking about today, as you all have talked about today in a very short period of time, i think it's been 102 days today, sharply recovered it saw that all of the weakness that we saw in, from the virus, from the pandemic could be recoverable, and so more quickly than i personally thought, more quickly than most investors thought. it saw that and took advantage of it very, very quickly >> and good morning. say you're an individual investor and you've done what a lot of the pros say you should do, which is put a decent amount straight into the s&p 500.

now record highs, how do you protect yourself from here >> i think you do have to diversify, and that's what our portfolio managers have been focused on is building strong portfolios that can withstand anything that comes in the future, right, so although we do like technology, we have been overweight that space for a very long time. our portfolio manager saw opportunities across the broader spectrum so they were early to go into the industrial space, the material space, and they have stayed away from energy they have underweight, the bank space, and so i think investors have to be careful about the areas they invest in there's certainly a lot of risk and equity investing is all about risk versus reward we know there's been a lot of secular change happening, right, and we want to be on the right side of that tech lsecular chane >> do you protect yourself from equities is that what diversification more broadly means now

>> it's interesting, because there hasn't been any place to get yield. investors have come to the equity market seeking that yield. that isn't necessarily the safest way historically to play it but it's like the nicest home on the block when it comes to finding returns, and at some point, it will create more risk for all investors, but at this point, it's interesting. when you look at the s&p 500, the multiple, i think the average multiple is around 22 times. the top five stocks in the s&p actually are trading at 12 times higher, right or 12 multiple points higher, so 32 times for the top five stocks, and where the bottom 495 stocks are trading at 20 times. and so there are stocks in that bottom 495, and certainly outside of the s&p 500, that are

attractive when you look at the small cap indices, they broke the june highs last week, and so there are other places in the market to invest, and our portfolio managers are looking across the spectrum for those opportunities. >> to that point though, the discrepancy between the multiples of these top tier highest rated stocks versus everybody else, people looked at that and said that shows there's limited breadth to this rally and the fact we've gotten here so quickly, are any of those concerning signs about the market's ability to continue moving higher from here? >> it's interesting, as we started out in the conversation, the market is mimicking the economy, and the strong are getting stronger we certainly are seeing that with some of the technology stocks, where the secular change created that was already happening pre-pandemic, but certainly aksccelerated by the

pandemic, has created straeengt for some of the large technology companies and some of the large retailers, some of the larger spaces markets reacting and giving credit to those companies. so when you see growth rates and margins accelerate in those companies, investors are going to reward them that's okay to a certain extent, as long as that growth rate continues, but there are opportunities for other companies to succeed certainly, we're going to -- and we are expecting more bankruptcies, and our investors, sorry, our portfolio managers are avoiding companies with weak balance sheets, companies that don't have good fundamentals because we expect there will be more risk on the other side of this >> and speaking of risk, i know you're expecting more volatility throughout the remainder of the year, especially surrounding the election that's coming up? >> yes, we are we have seen volatility come way down, again, not too surprising, when we see the market continue to strengthen without a lot of

downed days but we expect volatility will increase and whether that is because we can't get another bill and the ppe has stopped, and that will change some market behavior, some consumer behavior, and we do have this election, right, and there's going to be more noise from that, that will probably increase volatility, especially if we don't know the election results right after. >> finally on that point, how reliable of a tell at this stage do you think the vix is? we've gone from 80 to 20 and a lot of people are watching it as an indicator of whether or not it's a repeat of the dot-com boom where it never got quite to the levels that we're at now >> i think we don't focus too much on the broader vix index. certainly it's an indication of volatility but or portfolio managers are focused on bottom-up company fundamentals that's what they're narrowed in

on every single day. >> ann, thank you. our first guest post new all-time high. thanks for the insight good to see you, ann miletti >> thanks for your time. we were talking about the intersection of wall street and main street. that intersection is made clear this morning in retail, specifically home depot and walmart, both report blowout earnings results this morning, although lower in today's trade at the moment, fractionally. morgan stanley's simeon gutman joins us now good morning >> good morning, how are you doing? >> doing pretty well what's the big takeaway here from these two companies that did better than expected is this a share grab of the big guys who have this omni channel online and offline capability from the remaining mom and pops, maybe even the smaller regional chains >> yes, i think that is the key take-away. your previous guest may have said it, the big are getting

bigger there are secular winners and talking about two of the largest companies period, in all of retail, that demonstrated that home depot with 25% comps, walmart with comps they'll continue to be relevant and saw big margin expansion as well >> what does that mean for what investors should expect from here is this increased investment in the systems necessary to really fuel omni channel? i was just talking to the chief information officer at a home depot competitor, and they're pushing hard on continuing to invest in the systems that they think are a big part of the future >> yes, and maybe i'll break that into two things of what to expect first, no question, investments and scale are going to matter even more. large companies especially retailers are still going through that transition from physical retail to multichannel or omnichannel and the companies

with the biggest systems, the best ability to analyze data, they'll continue to lean in and get better that's one trend the other one, we shouldn't be surprised or fooled by some of the strength right now we're living off of stimulus some of the companies are growing off of that, even walmart and home depot i think you're going to see the rate of sales growth decelerate across retail but the strongest companies best able to manage that deceleration, one in terms of retaining sales and two, translating it into profits. >> simeon, i want to hit on that ideas of sales deceleration with these particular companies obviously the big boost from e-commerce, these two businesses were considered essential during the second quarter during peak lockdown do you think that they can continue to drive significant sales as other retailers open up, as the economy continues to open up and see more people in

stores >> yes so also maybe i'll separate the two companies in that regard first of all, for home depot, right, they're benefiting from this massive work from home shift that we called it the honey do list. there's a million of things to do around the house, people continue to do that. the averaged median price of a home in the u.s. is $300,000, that's assets people are using and consuming more frequently. as long as no vaccine exists, people continuing to work from home we think the spending in the home category will stay above average. walmart is essential but more of a consumables based retailer, grocery, other type of consumables, their general merchandise business was on fire this last quarter, probably helped by stimulus for home depot we think the rate of decell will be more moderate, continue to grow at an elevated level. walmart tells us in the month of july their sales have begun to

normalize around the 4% growth range which is not that far from where they were pre-covid. >> and interesting, on -- sorry, go ahead john, go ahead >> simeon, i was wondering beyond stimulus, when it comes to the impact of lower interest rates, can't help but look at housing starts, and i wonder, is that a signal maybe that the middle class, the white collared middle class in particular is also part of this strong, getting stronger story, and that we should expect to see that continue to flow through and have impact on these stocks? >> yes, john, i think, i would put it even a little bit more broadly, and just say housing as a sector probably does it is going to get fueled by the demographic shift that you mentioned but you see this urban migration that's going to happen it could fuel higher home prices the one limiting factor right now is availability of getting a mortgage, but to your point, we

think the medium term, even the long-term tailwinds to housing are favorable at the moment and we could see a surge coming in housing turnover, which we're starting to see the seeds begin to form, but we think we're going to start to see momentum build in the coming months >> you mentioned walmart e-commerce up 97, which is amazing given the prior quarter was up 74. when it's 11% of sales now, what is the moonshot number on that for walmart, the percentage of total sales that will eventually in your view be e-comm >> we don't have a moonshot forecast e-comm is around 20, excluding food if you include food, it goes back to 15 i think walmart around the 20% level isn't an outlandish assumption i should lean into that a little bit, right, the speculation around walmart plus, this

membership program that could take their business to another level that gives them a catalyst for which they can grow wallet share with their customer and accelerate e-commerce at the expense of the physical stores and goes back to investing in this period, how the companies can lean in and drive faster growth >> yes, retail certainly telling us a lot simeon, thank you. >> thanks for having me. take care. our next guest is an early investor in the likes of uber, airbnb, pinterest, paypal and jumping aboard the spac wave kevin hartz joins us, as that vehicle begins trading today stay with us ♪ ♪ ♪

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starboard value becoming the major hedge fund to jump in on the spac friendsy manning to raise $300 million through a blank check acquisition vehicle. spac raised $2.5 billion this year speaking of spac, seven hartz is taking his spac known as one public today he's an early investor in uber, airbnb, pinterest and paypal and founder and former ceo of event bright, kevin joins us now, thank you for joining us the goal of your spac is to partner with founders, operators in the tech industry offerin them a path, an alternative path to the public markets.

as someone who has founded several companies and taken them public, seen through their ipos, seen through the traditional ipo process with event bright and zoom, do you think the spac methed ais better? >> what we see is that we're really just beginning here it's the top of the first for this revolution, a spac revolution just as we saw many other asset classes grow over time, this is the time and the place for spac. we're not in the bottom of the ninth. we're getting starting and a star is a sponsor company and one is our first vehicle coming to the market at the right place, at the right time and the right people >> you have a lot of company in silicon valley in terms of raising money for spacs and acquiring companies and finding alternative route to the public markets. bill ackman is doing something similar, dragoneer acquiring a

technology company, we've got billy bean out in san francisco. you've got four sight capital executives, trulia the list goes on and on. how do you differentiate yourself in terms of what you plan to do with your spac called one? >> we are very uniquely positioned there is nothing out in the market that first has these operators on the team that have seen and grown up in silicon valley that really understand the ethos that we have not just built colleagues over time but we have these great friendships, and interconnectedness in the valley and we see a lot of spacs coming in from the outside, reaching out, cold emails and so on we know this group we've been here, we've walked in their shoes. we've been through the ups and downs. secondly, we decided in this world of the mega spacs, where

stocks over the last 18 months have grown in size we've decided very specifically despite all the demand of being multiple times oversubscribed, we've stayed small, stayed at 200 million and that allows us to reach a billion-dollar company and right in the sweet spot for the next generation winner we want to be a part of >> that's interesting. in terms of the type of company you do want to acquire, i'd love if you could share some kind of color around your thinking there. it seems like these types of spacs have worked really well with electric vehicle companies, space has traded pretty well we've seen online gambling create some buzz as well is it possible to do this with say, you know, maybe more of a boring b2b saas type company >> i'd call them far from boring any business building something really great and with amazing leadership team is who we want

to partner with. just a few months ago we really found people our founders and ceos around the valley scratching their heads, what is the spac thing and now they're really leaning in we're getting so much inbound interest because they look to us as a trusted partner, we're not interested in what we would call this miracle pharma cancer cure. that is something that goes public with no revenue, more the prospects of revenue, and has this binary outcome. it's a low chance of a success and we find that irresponsible in the market. we're really looking to find a fundamentally great company that's going to build over the long-term, and we want to be long-term shareholders we don't want to rip the rip cord after say 18 months and walk away with a big profit. we want to be partners and hold the shares in the lock box for 10 or 15 years >> kevin, is this spac story really about the traditional ipo process being broken every time we get one of these

ipos with an enormous pop, when it opens, you know, practically every time, i see bill gurley from benchmark, the vc tweeting about money left on the table, and how inefficient it is. is that really what's behind both this spac movement and the direct listening >> well, the spac is going to be another tool, another arrow in the quiver of many options for founders we've seen companies staying private for far too long the average companies say private for 12 years six to seven quarters of growing revenue in a tech company should be out in the market and we're seeing the market move back the other way. what they say is light is the best anti-septic we need to get the companies really fit out in the public markets, better governance and seen a lot of horror stories on the other side we think we're going to swing bill gurley to the spac camp we've had a lot of conversations

with him he's coming over, but i think there's no bad option to go public the spac just represents a new product or a new way to do that and founders and ceos that are ahead of the curve that are contrarian in thinking are really taking consideration here >> critics of the spac process would point to the fees and the fact that it actually can be even more expensive to go public, if you're a founder-led company via spac, versus just the traditional mechanism, because you have to pay the underwriter fees, you're paying for the m&a bankers to consummate the transaction action if that's the route you choose, the 20% promote to the sponsors how do you see these fees and what kinds of conversations do you plan to have with founders, now that you're public and you can start having these conversations about a potential reverse merger >> well, we really want to amazon-ify this space, this asset class. we think the fees are egregious,

against our own best interests, why would kevin say that, why would a star and one say that? we think everyone benefits we saw venture capital get in line and see their economics compress, both one, the founding founders and companies one and venture business really took off and so reforming the economics, going to drive out the unsavory carpet baggers in to make a quick buck, not to our seemingly best interests, we're going to compress those fees, we're going to make the cost of capital really attractive to who really matters and that's our partner companies, those ceos that are looking for a viable opportunity. my wife took event public and went through the traditional route. it was many quarters, a lot of work and distracting to management and the spac offers this great alternative, where you can reveal a lot more information through the s4 that you can get to market quicker,

and we can really compress the fees, so we think it's an ideal vehicle at the right place at the right time >> great we'll be watching over the next 24 months or maybe less to see what type of deal that you guys are able to sign kevin, thank you for joining us. >> thanks so much. and now for our "etf spotlight" liking at the i-shares expanded ticker igv, up around 40% from a year ago, led higher by the likes of oracle. oracle getting a boost of its own today, a source telling cnbc the company has entered the race to buy tiktok's u.s. operations. that tiktok thing is turning into the weirdest ever season of "the bachelor. more on that later in "squawk alley. stay with us

good morning, everybody. i'm sue herera here is your cnbc news update at this hour. a long-awaited bipartisan report from the senate intelligence committee has just been released largely confirming the mueller investigation's findings into russian interference with the 2016 presidential election among those findings, trump campaign manager paul manafort collaborated with russians before, during, and after the election postmaster general louis dejoy is adding another virtual video trip to capitol hill to his schedule, amid concerns postal services cutbacks may interfere with mail-in voting in

november dejoy will testify friday before a senate panel where republicans are in control he was already scheduled to appear monday, before a democrat-led house committee and on the 100th anniversary of the constitutional amendment securing voting rights for women, president trump says that he will pardon susan b. anthony, a leader in the suffrage movement she was arrested and convicted in 1872 for voting, which then was a violation of new york state law. you are up to date i'll see you in an hr.ou "squawk on the street" continues after a quick break. after a quick break. all we do is hand you the bag. simple. done. we adapt and we change. you know, you just figure it out. we've just been finding a way to keep on pushing. ♪

only five states are employing an automatic vote by mail system in the upcoming election including colorado. jom governor jared polis, welcome back good to see you again. >> good morning. >> a lot of people looking at colorado as a case study of how this is going to work.

can you explain? >> you know, we've been voting by mail for a really long time it became the default in 2013, but even before that, in 2008, 2006, 2010, a majority of voters voted that way we get our ballot in the mail, three, four weeks before the election and you drop it in many of the official drop boxes or you put stamps on it and you put it in the mail and republicans, democrats, independents are accustomed to voting that way. we have a long ballot with lots of initiatives people like to research them at home it works very well >> is there any reason to think that the process this year will be different than years past >> well, i think people are going to be a little bit more careful about if they're going to mail their ballots, normally three-quarters of the people who vote in our state use drop boxes, which are all over. they're at grocery stores, next to mailboxes, about one quarter use the mail i think that one quarter will be a little bit lower this year people are going to trust the

official drop boxes more and if they do use the u.s. mail, think they'll give it a few more days. we always tell people if you are mailing in your ballot, do it at least a week before the election, maybe now folks are going to say do it ten days before the election, otherwise use one of the drop boxes. how quickly for the governors out there watching you right now can other states replicate what you do to ensure the safety and security and efficacy of the voting process in colorado in terms of hiring appropriate staffing, using the technology that you do to ensure that the votes are ascribed to the right people, judges, auditors there is a process there in colorado that you follow how easy and how possible would it be for other states that don't already do this to get up to speed in just a matter of weeks? >> you know, it's logistically easier, if you think about it, than running an operation with thousands of polling places, each one presumably with election judges w people who

administer elections people in colorado can still vote on election day, if they didn't get their mail ballot, don't want to vote by mail they vote at a super voting center it might be a 15-minute drive or 10-minute drive. there's a few in every count y depending on the size of the county we have super voting sites turns out less than 1% of the people do that that's how popular vote by mail is in colorado when ask you about other states, it depends where they are. there's many states with 30%, 40% voting by mail already, maybe they want to get to 70%, 80%. if states have zero vote by mail it's going to be hard to get that whole system in place because you need signature verification, you need everything else. i think they can do it, but if you look at most states, they have some form of absentee ballot already so it's really just a question of how do we make that a little bit easier for people to exercise their right to vote during a pandemic in a safe way. >> senator michael bennet said at a news conference with you that an american is more likely

to be struck by lightning than they are to commit fraud how do you ensure the sanctity of the voting process? what types of technology do you use to make sure that this process is safe and that the results are the accurate results? >> yes, using the mail-in ballots like we do in colorado is universal, also a way to reduce voter fraud we have negligible voter fraud in colorado. one of the ways we do that is signature verification, so if the signature, you have to sign the outside of your ballot if it doesn't match and that happens in less than 1% of the cases, it doesn't mean your ballot is thrown out it gets elevated to you have a chance to cure your ballot there's legitimate reason somebody's signature could be different, a stroke for instance, partially paralyzed but in most cases the signatures match, the balance lots counted. if not, there is an opportunity for to you go in and verify it was in fact your ballot. >> governor, how do you do that kind of signature verification

on a mass zalescale, especially talking about other states trying to adopt a system you've had for a long time under very different circumstances and arguably made more efficient and perfected. i mean, i imagine you would have to use ocr, optical character recognition, or something to do this on a mass scale across the country to reduce or eliminate fraud in an election >> yes, the technology is there. we're not the only state that has had universal mail ballotses for a decade i don't remember a time by the way where i didn't vote by mail. that's just the way people vote in colorado, independents, republicans, democrats it's what we do, and it became the default, as i said, in 2013 and less than 1% vote a different way. the technology is available. again, most of the signature also match when it's not, it's elevated for a decision point for an

opportunity to cure. when you register, we can register dmv, your post office, you also have to show a form of identification to register it can be bills to your address, it can be a driver's license, it can be a passport, so we have that check on the process as well >> and so governor, want your opinion here do we need or should we have national standards for the sort of auditing of by-mail processes so voters understand and can be confident that here is the standard everywhere for being sure that this process eliminates as much fraud as possible, is secure, you know, you have ballots scanned, you have this elevation process like colorado has, et cetera. >>le wit billion, we have the ff law behind our integrity of elections. it's a felony offense to cast an illegal vote if somebody is trying to vote for somebody who is dead as they used to do at chicago at precinct polling places, if somebody does that

spree i don't mail, it is a crime and would be prosecuted. turns out there's next to no fraud in these elections and we break down the mail-in balance lots to reduce what little fraud there was, preserve the integrity of our election system and also a lot easier to administer than this concept of having thousands of precinct polling places at schools and churches across our state. there's still a way to vote in person, but it's at these voting super centers which are also safer, they're able to have social distancing, able to register on the spot if they can't find your registration, show your i.d. really makes sure that if you have the right to vote in our country, if you're an american citizen, you're able to exercise that right to vote >> so long-term, governor, do you think this is the future of voting nationwide in this country or are there political or secular challenges that will keep that from happening at scale? >> yes, it's growing rather than shrinking, so i mean, you know, there's more and more states doing this all the time and in the states that have it as an option, more and more voters do

it all the time. so look at a state like california, it's not the default option but they have more than half their voters that vote earlier by mail, and colorado, we were probably about ten years ahead of that, we already had a majority of voters voting that way, and we said let's just have everybody vote that way unless for some reason you want to vote in person. >> well, some colorado natives are proud of that, i'm one of them governor, good to see you again. thanks for the time. we'll see you later. >> always a pleasure will they or won't they? that's the question for new york city gyms, as cuomo and de blasio face off on reopening ruth zuckerman weighs in on the other side of this bak ayitusre businesses are starting to bounce back. but what if you could do better than that?

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welcome back new york city gyms looking to reopen might be confused as governor cuomo says they will reopen later this month. mayor de blasio says not so fast ruth zuckerman joins us now, founder of true community. ruth, good morning >> good morning. >> so i'm interested in your perspective on how you think this pandemic will change the fitness business even long-term.

i notice that true community, even though you're doing this thing online, trying to connect people to instructors, you're doing it in virtual geographic areas. >> we are, and my answer to your question is, i think at home working out online is here to stay people have gotten the chance to get really used to it and they're loving the convenience of it, and even though we're using zoom, which is a bit clunky, we can really connect with everyone, so they're feeling the same connection almost that they used to feel at the live brick and mortar experience >> does this mean that these brick and mortar experiences, which are often in really high rent areas of high rent cities that they're in big danger, or even that the premium business model is in big -- are people going to pay hundreds of dollars to do this virtually >> i think the brick and mortar is in danger to a certain degree

and here's why with at home and online, it's kind of a win/win. instructors get to be paid more, because there is no overhead there is no, there are no high rents, and the users get to pay less i mean, we just started a few weeks ago, and that was our biggest struggle was figuring out the pricing, because i'm so used to kind of the elevated boutique fitness price for class, and we're actually going to lower our prices, because we want a wider reach right now, and it's definitely a diller have lining from the pandemic. let me have a wider reach and get more people in having this community experience, where they get better mentally and physically >> for those brick and mortar studios that are still looking to open up, does the math work if they can only have 33% capacity i mean, is that enough to keep a business afloat in this pandemic >> you know, i guess we'll find out. i personally have my doubts about it, because the experience

changes. you're spaced much further apart. you're not high fiving people anymore at the end of a hard workout. you're potentially wearing face masks for a while. it's a completely different experience now >> do you find that kind of going back to some of the digital offerings that you were discussing a minute ago, do you find that you see competition from free offerings as well? what is the line that gets someone to actually pay for a class when you can look to youtube? i've seen workout just lists of different workouts you can do on pinterest. what actually encourages someone to pay for a digital class, even if it's just $10 >> absolutely. and that's a really good question, because when i was starting this, and again, just started a few weeks ago, how are we going to differentiate ourselves and how can we draw on people who will pay a price for

the class. for me, it's about picking, choosing curating your instructor list with seasoned instructors who already have a following, and you're paying up for that experience. again, the community is just as important as the actual fitness class, and for us, another way we're differentiating is by offering the fitness classes but we're also going to offer kind of weekly get-togethers on zoom, later in the day we'll chat about anything from aging to injury prevention to what was your favorite netflix show at end of the day people want to connect and in a pandemic want to connect more than ever. >> ruth, it's expensive to assemble a gym at your house you never replicate the variety of equipment you get at the gym and easy to get bored, right, over time, even using digital classes. i just wonder, aren't you looking through this period to a time where covid is not an acute concern and people are going to

want to go back to a communal gym? >> i am, and you know, i think we will all, you know, miss that experience, the live experience, and down the road, i just think that there will be room for both i just don't think the at-home is going away. people seem to love the convenience, and i've heard from my riders, my users that they're not giving this up they love the fact that they can take their favorite instructor at a time that's convenient for them they don't have to travel across town to find their favorite one. everything is right there in their living room, and they're showering in their own shower and they're doing it in their own time, and they're not commuting, and they love it. >> but ruth, what about the peacocking effect? you get some people who go to the gym to work on themselves and look good, and they want to see other people, you know, who are trying to look good, and trying to look at them does this at all play into that

online or do we end up with a physical, you know, on-premise workout scene that's more social and higher cost for some of those reasons? >> yes, it's funny i mean, we can only do so much online, and the peacocking might not be as well achieved online as it is live, abobut that being said, so much of people's enjoyment going to an exercise class is the chatting that goes on before and after the class and i literally do that with everyone on zoom we're chatting so much before the class starts, half the people don't want to start the class because they're so into socializing with everyone else so to a great extent, i was a naysayer at first, but i realized that you actually can accomplish this online >> i've got a cousin who is single who i don't think will be doing this because i think every girl he's picked up for the past 15 years has been at the gym

but ruth, thank you. [ laughter ] >> but now there's virtual dating >> yes thank you, ruth. >> no social distancing going on at the gym for your cousin shares of cureleaf falling we'll ask the executive why, after the break. stay with us you say the customers make their own rules.

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the new samsung galaxy note20 ultra 5g. welcome back to "squawk on the street." the s&p slips into negative territory after the highs of the day. 3394 is the new mark one sector is hanging on to gains and that is consumer

discretiona discretionary. the best performer so far today. among the leaders in that sector, you have advanced autoparts that smashed expectations for quarterly results with a 7.5% rise versus estimates up just about 2.6% on the other side of the discretionary spectrum, and the s&p 500 as a whole, you have kohl's they painted a very grim picture ahead for the holiday season saying they expect further impact from the crisis and is planning conservatively for the remainder of that year those shares off by 16% ghrit now. more "squawk on the street" after this commercial break. before money, people traded goods.

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welcome back watching curaleaf today. the executive chairman of curaleaf holdings, boris, is joining us today >> good to be here, joining you from the rocky mountains and a log cabin, so i hope my connection works >> stocks had a great run from three to 12. all of the market dynamics, that were new and growing in the first place, have been disrupted, to some degree, i imagine, by covid. > >> we had an eventful six months, as you know. no one in the country or the world that has been affected by it we adjusted to it because you

know we were made essential by most states in the country we had to change all of our practices to make our patients, customers, and others safe we were able to do that across the country. we closed two of thebiggest transaction is transactions on the first two months we closed with $124 million in revenue, basically a zero net income line, which i think is really great we had growth of over 140% quarter over quarter 16% sequential over the year so i think results are good. the sector seems to be healthy and we're seeing substantial step up going into the third and fourth quarter >> do you believe that pressure on state's finances, dwindling budget surpluses, and deficits

will lead states to adopt more broader cannabis allowances? is that a strong hand right now? >> i think 39 states have medical programs and 14 states have adult use programs. i think the most important event will take place on the east coast in november where new jersey is going to have, on their ballot, a legalization of cannabis for adult use if that happens, and the polling looks like it will happen, you will see new york, pennsylvania, and connecticut do adult use as well over 85% of the population will access it by this time next year we think that will force the hand of thefederal government to step in and finally start to recognize the industry and regulate it. >> is that true, boris, do you believe that would be the case if there was not a change in power in the white house in november >> i think it is very difficult to avoid the fact that if new

jersey goes, and we expect it to, we heard both governor cuomo, pennsylvania, and connecticut, will all go that means maine, massachusetts, connecticut, probably maryland on the east coast there will be adult use. you have california, washington, oregon, colorado, and arizona also going to adult use. and nevada in november so i can't see how the federal government, no matter who is entitled, will not address that issue. >> what about some of the tough lessons out west, boris? the resilience of the black market, the expectations for tax revenue not quite what people hoped. do new states benefit from those tough lessons? >> i think so. i think you have to differentiate between the east coast and the west coast on the west coast it was pretty

free cannabis use with farms the east coast you never did they are highly regulated. the west coast wasn't. now california, because they need the tax revenues, we have seen substantial enforcement on the side of the california authorities working together with the d.a. to try to bring order to the illegal businesses. we're seeing prices rise in california in the sector flower because of the enforcement mechanisms being put in place. we think that is good news the tax revenues in place like colorado are showing you can have substantial tax revenue from this secretary. and as you did with the lifting of the prohibition in the 20s and 30s, i think you will see the cannabis going into this environment. >> boris, dynamics continue to evolve i appreciate the time. good to see you again. we are getting a news alert

on td ameritrade >> they're seeing their second day of outages on the thinkorswim platform there is a inability to connect to the desktop platform. clients can stick access accounts through the mobile app and other platforms. we have seen some other outages. we had robinhood in march and others it comes on a very busy markets day and the s&pis back at all-time highs back to you. >> kate, thanks for that good tuesday morning, everyone it is 11:00 a.m. on wall street and "squawk alley" is live ♪