cornell ahead. several colleges reversing in-person plans after outbreaks. we'll get an update with dr. scott gottlieb "squawk box" begins right now. >> good morning, everybody well come to "squawk box" here i'm becky quick with joe kernen and brian sullivan andrew is off today. welcome brian, good to see you >> good to see you as well >> in your honor, i wore a purple shirt today >> to make up with his brown tie from yesterday >> don't adjust your sets,

folks. it is not 5:00 a.m you are seeing brian sullivan. that's what i did. is this jump forward, step back. there he is. their loss is our gain, having you here, sully. you are probably raring to go because you slept in, right? >> it was perfect. i slept in to 3:45 >> exactly i wore green for you today, becky. >> i wore purple for you today i just went in my closet and found the ugliest brown shirt i could find >> that's not green. that's purple. >> we are playing zac brown band we are playing for you get it >> this delay. if people only knew what we hear in our ears doing this trying to

think. what are they saying chicken fry -- what is he saying >> who knows live at bonaroo highway 20 live. >> all zac brown >> i little bit of chicken fried. cold beer on a friday night. pair of boots that fit just right. >> as in brown i get that one >> the dress is blue and black this was from yesterday, brian joe wore a brown tie and kept insisting it was purple. i'm just trolling him. >> over wearing purple every day because i'm a red state, blue state guy. >> yeah, that's you. >> the market closed at an all-time high. it took the s&p just 126 trading

days to recoup losses that occur from february 19 to march 23, which was the fastest stiem down too. if you want to look at u.s. equity futures seeing this morning and after this, the s&p is indicated up again today. up about 6.5 points in early trading now. dow futures are indicated up about 50 points and indicated by about 31 we have a lot of retail earnings coming in today we'll be watching for too watching the treasury market there. you'll see right now, the 10-year is yielding 4.65%. some of those earnings reports just hitting it looks like lowes is hitting with its earnings. profits have come in compared to the estimate of $2.95. similar to what we saw yesterday with walmart and home depot.

revenue beating estimates for the lows same-store sale up by 34.2%, nearly double of what analysts were expecting analysts are kind of doing this blindly. as we heard, he's never seen anything like this in years of covering this. you are talking about comps north of 32% that is kind of unbelievable >> that really is something to marvel. >> 3.75 is higher than the highest estimate on the street as well. guidance is strong as well that continued into august meaning this quarter as well

lowes and walmart were some of the few stores allowed to open in some states lowes comp store sales up 34%. i'm not sure i've ever seen a store this big posting a 34% jump remarkable quarter. >> everything to do with the pandemic how quickly we shut down and how quickly wereopen

is it too late do it and not look so stupid not you, brian >> i guessed 3.75. did i nail the number? >> you came pretty close are you handy at all, sul? you look handy you can reach the areas to paint without a ladder because you are like eight-feet tall are you handy at home? >> no, no. i can move stuff i'm strong i can move things usually to the wrong spot >> here is brian cleaning out the gutters. up on his tip toes >> joining us is brian nagle senior analyst at oppenheimer.

we saw this yesterday with home depot and now with lowes what do you think? >> i agree with all the comments you just made. this is amazing. what is coming through my screen here my first thought is maybe it is a mistake. for lowes to do 35.1%. home depot set the bar very high it is absolutely amazing i've never seen it before. this speaks to what we were discussing yesterday with how up ended this is with people spending the time at home. lowes is capitalizing on the spend. >> back in may, with the limited

visibility >> what do you do as an analyst? >> that's a great question my answer has been no, they don't have to these companies are issuing a path on guidance very interesting with how home depot traded yesterday will be interesting to what lowes does today. comments on their conference call as the day progresses i've seen this release those businesses

are not slowing down whatsoever right now that stock is up would you buy the stock here or wait for it to come back in. >> the quick answer is i'd keep buying them. the idea is that this strength will keep on for a while even after this pandemic passes and the vaccine event, i still think there is going to be plenty of people spending more time in their homes. i would keep buying these stocks

they are not completely out of wham >> all of the market shares, home depot and lowes who are they stealing it from? >> there are other players out there. maybe half half of the diy space. smaller players take it from there. as they both push in to the commercial space smaller builders and remodelers. that is much more fragmented the other thing here is a shift in spending. we think about it, we are not traveling right now. we are not traveling as much or eating out as much or spending on sporting events those activities are a shift in the home all of that coming to play for a company like lowes right now >> brian, i want to thank you

for being with us and doing this quick instant reaction it has been good seeing you and thanks for your time >> thank you i appreciate it. lowes just the first of the big box retailers to report today. coming up next on the earnings calendar is target they are set to report here in about 20 minute's time are they going to have the same amazing numbers lowes had? we'll find out we'll get the news and reaction on wall street followed by a big exclusive interview with target ceo brian cornell. can't miss that. we'll be right back with an update from dr. scott gottlieb stick around stock slices.b for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50

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welcome back an update on reopening of colleges first it was unc now notre dame moving to online only classes for two weeks michigan state going fully remote the entire semester making the call before students return what we've learned is this, it is the parties university of tennessee tracing

outbreak to parties. the chancellor stating there will be expulsions for those hosting a party. as i said, college students are going to college >> i feel bad. i've got one part of the experience good or bad. i can remember colorado in the 70s. >> you can you can remember >> not much. but, i don't know that makes it complicated to get back in and getting your stuff at penn, i think they are going back but they have to stay where they are and do their online stuff there i don't even know what the point

is >> listen, we are all of the age thatwe have people in college or know people in college. there are a lot of connentious kids out there i've talked to a lot of parents orchids that are largely not afraid of it they don't care or don't seem to care they are acting like they don't care by hosting these big parties. >> you've seen basketball games. they are this far apart. the whole college experience is person-to-person contact if you think tf was the best 12 years of your life, like it was for me then it is sad it really wasn't it is sad. you get one shot at it the pandemic has disrupted so many things. let's talk to gottlieb about former fda commissioner, now

cnbc contributor huge partier on the boards of illumina and pfizer just kidding the story of record high of investor optimism about the world's ability to manage the pandemic i read that because front and center, if all i listen to is what was beg reported, that wouldn't be my take, it just seems like every day we hear about set backs in europe and the united states. there are positive things happening in florida and other positive areas i saw some numbers that were the lowest in a while. are we managing it >> we learn to manage it

certainly in-house mortalities you look at arizona, florida, texas, you do see cases coming down arizona has come down quite a bit. it could be the fact that a lot of people have been infected and people are starting to take precautions and being careful about large gatherings and seeing more adherence to masks not herd immunity. that rate slows and more vigilant they've seen it be epidemic. that combination may be enough to keep it at bay. the challenge is to get the fair rate of infection to contribute to the reduction of transfer we can preserve life this will seep into vaul nerable

populations. we'll see more people succomb to this along the way >> you didn't say the phrase it is what it is. that's what you are implying that's what i've been trying to say. if you do the simple image of mortality and the eventual spread, the numbers are horrific it is a pandemic, a novel virus. maybe this regeneron news is positive let's shift to that quickly. we'll have them on later from regeneron about a cocktail i guess targeted to spike protein which may prevent infection. that would help.

>> yeah, just backing up i don't think we have to just grin and bear this we can do things to control the spread with the news about regeneron on the release. it is a little unclear from the press release. in the partnership with roche, it looks like the partnership is on the global reach and manufacturing they are bringing on board it is not clear whether that is focused on the global expansion. my guess is that it is split and a lot of the excess they are bringing on board will go through the ability now and also increase domestic capacity the other detail here worth asking about is that roche's sun stan shal swi -- substantial swing is in a

facility in new jersey if they are manufacturing a lot of it and shipping ex u.s., that may be what they are doing we've seen governments hold on to drugs that are manufactured domestically before they satisfy x u.s. or out of country demand. >> dr. gottlieb, just quickly. back to the college story. watching what notre dame said yesterday with over 150 kids there having this saying they are going to lock kids down more i think the president to the university said if that doesn't work, they are going to send everybody home that seemed to me like the worst possible idea. the whole idea is that having colleges open, is that it was less risky for kids. you shut down and send them all home, that seems like the worst

possible idea. >> look, there is no good solutions here it is a risky environment. kids come from all over the country. i think colleges can do this successfully i've talked to a lot of college presidents that are putting into practice wide-spread testing and protecting professors. what is falling apart is social gatherings off campus. people want to restart the economy but unwilling to wear a mask we need to look at the simple interventions. they can have a zero tolerance policy to say we'll try to preserve in class learning, you

have to go home. some are doing that. if we take some simple steps, we may be able to preserve what is important here and that's what we should be focused on. >> i would never imply you just sit back and take it the numbers are going to be big. it is big now. going over 200,000 >> we'll end up over 200 tragically >> at the same time, the alternative is a complete lockdown we are seeing as you said. we are going to lose a lot of businesses still in the second wave we are trying to get some of them back. a complete shutdown is not possible >> we are not locking down again. the politics aren't there to do

it the social will isn't there to do it. >> it is important to stay open. not just the politics. there is young people that need to live their lives too. they need jobs and food. we can't do another 10 trillion. >> i agree, joe. it comes down to wearing masks and doing the simple things. i agree. >> it is still going to seep out. the bad things are going to happen thank you, dr. gottlieb. our interview with regeneron ceo is am coulding up is coming up >> joe, thanks once the college campus has it, you got to keep everybody there. you can't send them back and spread it all over the country again. when we come back, a study found that country's l bedy

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welcome back time for your executive edge and

get to that story. new analysis said that in countries where a woman is head of government fared much better than countries led by men. the study of the trend remained estimate even when setting aside outliners like the united states women leaders locked down their countries earlier than male leaders. using the death toll and did not factor in long-term economic impact >> i was wondering what the metric being used was. that makes sense target results set to hit the tape in minutes. aconl bring you numbers and retis. in an exclusive interview with

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welcome back target just out with quarterly numbers. target blowing those numbers out of the water earning an adjusted $3.38 per share. higher than the estimate of $1.62 a share. walmart also came in well above. helped by a jump in comparable sales. the store comp sales were up digital comp sales were up 195%. digital sales tripling from a year ago and that accounted for

13.4% increase stores fulfilled a large percent. you can pull up or get shipt those businesses grew 300% that means a lot of people were using these same-day services differently -- a lot more than were using them in the past. the company said it is unusually strong market share gains across all merchandize categories first half of the year, the company gained about $5 billion of market share. the question is, where are they taking that share from not from walmart or home depot those stores are doing well. target knocking it out of the

park on this it looks like the company is the strongest they have ever reported in their 58-year history. incredible to see what they are going through with this. on their 2020 guidance, they are not issuing the outlook because of covid and consumer shopping patterns that's what we've seen from all of these companies as well that they'll not be giving any sort of outlook the big question is what is happening in august and back to school target shares are up 4.4%. this morning, it is up by $6 on these much better than anticipated results. >> we have an exclusive

interview coming up with target ceo brian cornell. go ahead joe, were you talking? >> i was going to say these numbers. it is brian sullivan we have brians everywhere this morning. these numbers are out of the park just like the lowes numbers. we are seeing a reaction in the stock. lowes didn't move that much. i know you'll be talking to brian cornell. i do wonder how much of this is at the expense of small business and how much of that will reverse when stores reopen remember target and lowes were almost the only places open. how much can they hold on to from that? >> and how much have shopper patterns changed are they going to be new

customers and stick with that or go back to old patterns whether shopping at the malls or elsewhere. >> i'm back to thinking about outliers and then yesterday, we heard from some people that said walmart and home depot and that's it. we got to add a couple more at least and these are all specific stay-at-home type plays. there are stimulus checks. i think we are four for four on what we've seen. i'm not sure it is a commentary on the economy or the stimulus working better than we thought this is two more why didn't they go up yesterday?

why aren't they going up today on the target. people didn't assume target was having the same kind of numbers as target or home depot. we'll talk j&j in that all-cash deal. >> buying momenta and $52 a share. >> all cash transaction. $6.5 billion this company, it makes antibodies for immune mediated diseases it doesn't mention covid here but they have a lead drug candidate that is for different things neuroinflammatory, auto immune, dermatology. who knows. it doesn't specifically say that it could be used for what we see

happening in these cases >> we have to go look at that premium $31 close on the stock 67% premium for the massachusetts-based company. this huge premium. it goes to show you these big companies want some of the growth they want to bet on that auto immune response. that's a heck of a premium >> it is definitely guys, back to target we'll talk more about this in a moment one thing target and walmart had in common was investments they made on infrastructure and making sure they were ready to go in terms of online offerings and being able to pick up in stores we've an exclusive interview coming up with target ceo, brian

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coming up, after target's incredibly strong numbers, the stock looks like it is trading at a new all-time high target ceo brian cornell who will join us to talk about how the company is meeting surging demand amid the pandemic is that stock up 6.60. up 4.8% this morning we'll be right back. or sending corporate their expense reports.

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welcome back target just out with quarterly numbers. numbers that were much stronger than the street anticipated. $3.68 versus the $1.62 anticipated. joining us from target headquarters in minnesota is target ceo comps up 23% how long have you been in retail >> becky, i've been with target

now going into seven years obviously, this is a special moment for the team. a beautiful morning here in minnesota. i have to start by recognizing our team in the most challenging environment i've ever seen for this team to deliver the strongest comps in our 50-year history is incredible. our eps was a record high. to the 350,000 team members in the u.s. and offices around the world, these results are all about you. >> brian, a lot of people are looking at this and scratching their heads. even the analysts didn't see this coming. this is far better than any of them anticipated the question is how long does this last. what are you seeing right now in the current month. in the month of august as people are continuing shopping? are these continuing >> we continue to see stretch

across the entire portfolio. the strength we saw in the second quarter and breaking down our earnings we saw consistent strength from may to june and july may was the strongest month with comps over 30% in june and july, we saw comps over 30% strengths continue in august and we are seeing growth the consumer still waiting for a signal around back to school you can imagine, uniforms and backpacks are slower market share continues as we go into the third quarter >> the back to school, so many people are wondering what will happen if their schools will row open or if kids are learning virtually. can i understand why they are delaying these purchases you had to stock up in advance of knowing all of this

what do you do with the backpacks and uniforms >> i think the key to our success when i think about the second quarter is, one, we've been true to our strategy, our team has been focused on being flexible in the environment and looking at each week when we think about going back to school. there are 56 millions between k through 12 waiting on direction for back to school this week, i understand 66% will start remotely they don't know if they'll go back to the classroom in september or october or january. we have to extend the back to school season and make sure we've got the items they need throughout the fall and we can adjust by market we've got to be flecxible and adaptable. that's been the key to our success in the first and second quarter. >> it said in the press release

you had taken about $5 million of market share. the question is, where are you taking it from at whose expense >> if you look at our results in the second quarter, we are talking overall comps the strongest in retail. our store performance is probably one of the biggest standout and biggest surprises in the environment where many americans are avoiding shopping in stores, our store comps were up creating a safe shopping environment has built in trust for the consumer and leading almost at 50%. we've been taking from both specialty and department stores and traditional competitors including club category by category, we are

gaining share. food and beverage and household essentials, we were up 20% during quarter competing with our traditional competitors and picking up share in that space. as americans have been working and teaching from home, we've seen categories like electronics grow by 70% in the quarter we picked up significant market share from our product competitors. business and home was up over 30%. decor, domestics, kitchen wear continuing to build momentum and market share we saw a big rebound in apparel, which was down 20% in the first quarter. it grew in the second quarter in a category that was down 20 or 25%. we are seeing significant market share gains. across our business, we are picking up share from our

competitors. whether specialty players, department store or some traditional retail competitors the market share number of $5 billion is the most important market share on print. shows the relevance and trust we are building with american . what do you know about your new customers and do you think they will stay >> becky, it's one of the things i'm most excited about i'm standing in front of one of our drive up lanes our drive up business grew over

700% we've had drive up for several years. many of those new digital guests discovered drive up for the first time here are a few facts we pulled together that target guest who now starts to use drive up, they spent 30% more with us what we're finding is some of our traditional store shoppers, we love those store guests, when they start using our digital channels we see a four fold increase in their spending those digital consumers who are only using target.com when they start discovering our store service, when they start using our fulfillment options we see a ten fold increase. so we're looking at those new guests carefully that are using target.com and make she we introduce them to our stores, store service and fulfillment centers. >> generally i would ask you what the economy looks like where you sit but with numbers like this it's hard to imagine you think it's anything but a strong consumer out there.

the next question, those is what happens if there's not a new stimulus bill that's bassed by washington how important was the initial stimulus that washington sent out including $1,200 checks to just about everybody in terms of your sales and what happens if congress doesn't come to some agreement and pass a new stimulus package >> well, becky, i think it's very important that the house and senate come together and put forward a new stimulus plan. that being said when i think about stimulus, i got to come back to market share it's for understand one where those dollars are being spent and how they are being spent i would also, becky, think about as you look at some of the results what's happening with traditional discretionary spending in the pandemic, we're not going restaurants. we're not going to movies. those traditional summer trips have been. cancelled. we're not on planes, we're not spending dollars on lodging. many of those dollars have been redirected to retail when i look at the most important numbers right now it

is the traffic trends in our stores, what's happening with market share, and how those dollars are being repurposed and who the winners are. we're clearly seeing in retail today winners and losers and i'm proud to say target is in that winning column today >> brian, yesterday -- thanks becky. yesterday we were trying to figure out -- >> good morning, joe >> good morning. just that question that, think about when i was a kid the guy that did the balloon if you squeeze the balloon in the middle, is that what happens? same amount of consumer interest or discretionary spending, but it's gone to these different places or, has it been better than we really thought in terms of people getting out and, you know, not being completely shutdown does it help us think we have not a real sharp v but a better v than a lot of economists

thought we could get is there any optimism there? that's my only question. >> you know, joe, again, there's so much uncertainty today. what will happen with the pandemic what's happening with flu season if we go into fall questions about the economy and the new stimulus do we go back to school and back to college so we got to make sure we're adjusting to this environment and adjusting each and every week i think our success is rooted in the investments we've been making for years investments in our multi-category portfolio the investments in stores in creating create and now a safe store experience the ease that comes along with our fulfillment channels the ability to order online or pick up or drive up or have one of our ship shoppers come to your door. we have to make certain we listen to the consumer, meeting their needs and staying flexible there's still so much uncertainty. it's hard to understand what will happen next week let alone three or four months from now.

>> brian, we have a guy that comes on, i won't mention him by name but he's pretty smart about retail wow target and other big boxes were already in his words carrying guns to a knife fight then the government handed them a bazooka by giving everybody money to spend and shutting down their competition and now they are taking victory laps of what a great job they are doing what do you think about that >> joe, one of the things we did as we started to deal with the pandemic, is invest in our team. and we've invested over a billion dollars in pay and benefits for our team. we've invested significantly in safety to make sure for the guests that shop our stores they had a safe shopping experience i think those investments back in our team, in safety for our guests, those have been the most important investments we've made as a company i think we're being paid back because we created a safe environment where our guests

trust target, they are coming to us more often and our team has respond in an incredible way in this very challenging operating environment. >> brian, jim cramer tweeting about how he got a belt in an hour from ship yesterday that was a big initiative. in terms of digital sales how much breakdown in each of those coordination, the drive up, shipped things and what people can order, i guess, just traditional online >> becky, we're going talk about a lot of this in our earnings call think about the drivers our growth and while i talked about digital being up 200% and drive up going by 700, ship by 350, even things like pick up which we had for over five years growing by 60%, the reality is for us 90% of that business has been fulfilled by our stores. and our stores are driving the growth we took a very different path,

as you know. we've talked about this for years now. when others were moving away from stores and building upstream, we said we'll use our stores as the center of our strategy and let our stores fulfill digitally. we saw that come to life quarter after quarter but most pronounced now during the pandemic where our stores are playing an oversized role and they are fulfilling that digital demand so the growth we're seeing, 700% drive up growth is extraordinary. and it's all being fulfilled by our stores and those are guests that are driving into our parking lots and meeting them in the parking lot in a contact free way, putting their products in their trunk and driving away we'll don't see that same day service fulfillment drive our digital business but it starts with what our store teams are doing. >> brian, i want to thank you so much for being with us this morning. the stock right now up by 5% great to see you

we appreciate your time. >> great to see you. absolutely thank you. so, becky, normally i would figure, you know, a quarantine belt jim went up a size. that's what most us had to do, maybe go to a 38 >> i bet he went down. >> knowing cramer, he's just irritating anyway coming up, more big movers brian, go ahead. traded goods.

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stocks pulling off their fastest come back in history what you need to watch as the markets look to add to record highs. it's official. democrats nominating joe biden as their next presidential candidate. we have highlights and reaction from last night's convention straight ahead and the list keeps growing as colleges and universities deal with the reality of in person classes amid the covid-19 pandemic that story and much more as the second hour of "squawk box" begins right now

good morning welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick and brian sullivan andrew is off. you heard from him, becky, after yesterday? trying to figure out, you know, whether he's run into snooki or mike the situation room. anyway i'm disappointed that an hour is done and we only got two hours left with brian. >> you're knocking seaside don't knock seaside, come on >> you missed it yesterday. i might have been. yeah, i might have been yesterday. anyway -- >> i heard it, joe >> i like the entire -- i think it's a lot of fun down there i hope they are distancing i don't want them at those great watering holes tattoo to tattoo. >> i go to seaside we just talked about big

business the right shop on central avenue go to see mike go surf taco local business, baby small business mike, if you're watching shout out. i'll see you soon. >> brian, the situation sullivan all right. equity futures at this morning are up about 59 points or so but, hey, anyway, sullivan, we buried the lead. can you imagine andrew down there? he may be back already, i don't know we'll see. i haven't heard. i haven't had any update he might have gotten there and said what is this, bars? i don't know anyway weekly mortgage data just released diana oleck joins us now with the numbers. diana. we heard a lot of mortgage interest i want to hear about this. how are you? every day we get important stuff from you

what now >> reporter: you're punchy this morning. okay look a sudden turn around from record low interest rates last week called a pull back in refinance demand the average rate on 30 year fixed increased rather abruptly to 3.1% from 3.06 for loans with 20% down due to some positive economic data on retail sales as well as a hike in fees for lenders by fannie mae and freddie mac. that caused them to pull back 5% still 38% higher annually but just last month when refis were 100% higher than a year ago. rates are closing the gap making fewer borrowers able to benefit from a refi. mortgage applications to purchase a home increased 1% for the week a remarkable 27% higher compared with the same week one year ago demand for housing don't swell held back only because of

supply mortgage rates did drop back a little bit to start this week. brian? >> just going to show, diane j, just how price sensitive the american consumer and home buy certificate. thank you very much. we got some news out from southwest airlines phil lebeau joining us now on the phone with this breaking news what have you got? >> reporter: southwest shares moving higher after the company dropped an 8k this morning with an update on it's q3 financials. the big takeaway is that there has been a slight improvement in its daily cash burn due to a slight improvement in demand in other words more people flying in july the average daily cash burn was $17 million a day slightly better than the expectation of $18 million a day. as a result, southwest is now lowering its guidance in terms of the average daily cash burn for the third quarter to $20

million a day. previously they said they expected to burn through $23 million a day in the third quarter. a slight improvement not a huge surprise given what we've seen in terms of a few more people flying but certain lie good news for southwest and southwest investors. >> you know, phil, on that note here you and i and everybody look at these tsa numbers. how many people go through checkpoints. we broke through 800,000 two weeks ago for the first time since march 19th but the numbers seem to have stalled out. are you hearing from people that this rebound that we've seen from 100,000 a day, by the way, may be flattening out, that we'll stick around now about a third of the former previously travel e-people who feel comfortable will do it and those who won't because those tsa numbers really haven't gone up much in the last couple of weeks. >> reporter: we had the head of the tsa on yesterday in the afternoon. he basically said we're in this

range, might get close, to might even break 1 million a day, maybe by labor day weekend but remember september and october, those are slower months traditionally than august and july so this is the expectation within the industry. they were hoping for a much more dramatic snap back in business and in the number of people flying when they originally set out their business plan but they were not -- that just hasn't materialized for july and august and brian it's because where your going to fly right now? i was just talking with a neighbor who was thinking about taking a trip. why should i go there? if the place is halfway shut down i won't enjoy myself. that's problem with the airline business right now >> all right, phil, thank you very much. breaking news there from southwest. in the meantime lowe's out with earnings. profit came in at adjusted $3.75 a share compared to consensus estimate of $2.95.

revenue beating estimates as well and comp store sales surged by 34.2% that's more than double what the analysts had been predicting huge gains for the earnings on that stock and now the stock looks like it's indicated up by .8%. 159.20 target reporting quarterly numbers today too and that retailer earning an adjusted $3.38 a share for the second quarter versus the consensus estimate of just $1.62 revenue came in above forecast it was helped by a 24.3% jump in comparable sales analysts had been expecting a 7.6% increase in comp sales pap lot of that was from the digital pores of what was happening. target's digital sales nearly tripled from a year ago. we spoke to ceo brian cornell in the last hour about the state of business and whether they can keep up that momentum.

>> we see strength across our entire portfolio the screen that we saw in the second quarter and we're going break down during our earnings call we saw really consistent strength from may into june and july may was the strongest month with comps over 30% but in june and july we saw comps 20%. that strength has continued in august and we're seeing low to mid-teen growth. >> take a look at target shares this morning they are trading in the pre-matter at an all time high, $144.60. a gain of 5.6% or $7.60. that took closed at an all time high on monday gave back a little bit of ground yesterday and this morning off to the races in the pre-market brian. >> certainly are we got some breaking news in the last half hour from johnson & johnson. they are buying momenta pharmaceuticals. momenta closed yesterday at just

under 31 look at that that's about a 67% premium to the stock and it's soaring in fact pretty much above where j and j came in. deal will boost j and j treatment for autoimmune diseases heck of a ride for momenta shareholders and insiders congratulations. one wonders why j and j didn't step in a few months ago a great deal if you're a momenta pharmaceutical holder. you don't have to worry about tsa, you can fly private now to the macro markets and your money a record high for all the major index. the s&p 500, this marks a stunning 51% jump on the march loss we're actually now also higher on the year. so many of you may be wondering okay i made my money back, i didn't panic sell in march what dod i do now? joining us now to put the rally

into context is global market strategist at jpmorgan management and paul hickey co-founder of the spokes investment group gabriella what are you advising your clients to do they held their nose and stomach and held on. they made their money back now what >> well, brian, hopefully they did hold on. it seems like an easy choice looking in hindsight but felt definitely much harder at those march loss to do so. it was the right thing to do, to stay invested in the equity market it does rebound. does go back focusing on fundamentals so for us we really think of this as a cyclical bear market within a secular bear market equities are still the place where we expect the highest returns to come from in portfolios we still think equities ran higher from here over the next few years. expecting an average annual

return of about 5% so it's still an important place to be. what we've been thinking about within the equity market is trying to take on a little bit more risk now that we have a bit more confidence, the economic recovery is on track we have policy support, expectations are already pretty low. we're trying to think of how to balance the growth piece of the portfolio with a little bit more value side and especially for me it's about, if you want that value balance, it's the balance in the u.s. with the international. >> you know, paul, for years the bear case was simple you look at the demographics of america. okay 74 million or so baby boomers will retire. a, put their money into bonds because they don't want to lose their return or capital and b, they will start to drain that money out to provide for their living expenses. has low interest, first off negative with $15 trillion debt and ultralow rates here has that flipped that on its head

i can point out people in their 80s that are long about 80% stocks >> well, i mean the low interest rates are causing some investors to move into equities. we're still seeing massive inflows into bonds that we've seen for years even this year we're seeing much more inflows no bonds than equities against the whole sentiment picture of the market. millennials were never interested in the stock market they are starting to show some interest in the market now this year and i think that bodes well as they earn more and have more money to save and invest that goes into the market and fixed income as you just mentioned isn't much of an aprppetizing approach we're looking for investors to gravitate more towards these

re-opening and cyclical stocks because as the peak numbers in the south in the covid outbreak we've seen the peak there in number starting to decline we'll see more people starting to go out. we'll see those tsa numbers which hit a new high continue to increase going forward >> yeah. going back togaberry ella. we had brian cornell on this morning. target numbers, blow-out the government picked winners. they allowed certain stores to stay open. it's not target's fault, lowe's fault but other stores were shutdown they were allowed to stay open of course they got all the business kudos to them and their teams for doing well as we re-open across the country do you expect smaller stocks to start better or is their time past >> these bigger guys had an advantage so far as the economy starts to recover and grow, small cap s tend to do

better in that environment when you see growth become less scarce, growth stocks do worse and you start to see capital flow into other areas like the small caps again, small caps have lagged the market for several years now, in this environment as we've been in a low growth environment. we continue that group, small caps to see better performance >> gabriella, quickly your view on small caps? >> so, we're favoring large cap stocks at this point in time just given that we started a brand-new economic recovery but still going to be a bit slow out of the gate until we get that vaccine widely distributed next year also if you think about fundamentals going into this, large cap companies seeing much better earnings growth with lower leverage, able to with stand this lower rate.

we'll call that a bipartisan split on the investing side. thank you both very much have a great day paul feed that dog it's hungry. or pet it. >> yeah. >> thanks. becky? thanks, brian. when we come back day two of the all virtual democratic national convention is in the books we'll bring the highlights and talk about joe biden's economic plan after this break. "squawk box" will be right back. evenue

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consensus. the democratic party laying out its agenda this week with another big round of speakers. eamon javers joins us now with some of last night's convention highlights you know, i'm wearing a combination of red and blue, i'm trying to be really fair and objective at all times about this but, i missed it again i forgot about it. i forgot about it again because -- >> you keep going bed too early, right? >> no i was busy with watching the nba and i actually had the over with that he and the pacers, it was 215 guess what it was? 113 to 101 can you believe that one point. anyway so i forgot again to watch it i just want to note, what is

it -- yeah what is it like? you have to watch it for, i should too but what is it like is it virtual? is there any excitement or interest at all at this point or, i mean give us the highlights >> reporter: it's interesting. they are figuring it out and we'll see what the republicans do next week they are figuring out as they go along with this virtual convention it's not ideal you mention sports it's like watching sports without the fans in the audience who used to be at these political conventions, cheering crowd, balloon drops, confetti, all of that energy doesn't come through in a virtual convention. what the democrats have been doing is moving to preproduced, pre-packaged videos. it's a two hour advertisement for the presidential candidate of the democratic party. last night they did traditional roll call of the states. they did that virtually in states around the country and state by state that was something that got a lot of good reviews. people thought speeches were

short and sweet and fun and you got see the states around the country. you're used to seeing that in a packed convention hall as well democrats rolled out their old stars and some republicans bill clinton took to taxpayer waves last night to blast donald trump. here's what he said. >> if you want a president who defines the job as spending hours a day watching tv and zapping people on social media he's your man. denying and distracting works great if you're trying to entertain or inflame but in a real crisis it collapses like a house of cards >> reporter: they also had some republicans continuing this emphasis of moderate republicans who support joe biden, colin powell the former secretary of state under george w. bush spoke as well. here's what he said. >> with joe biden in the white house you'll never doubt that he will stand with our friends and stand up to our adversaries. never the other way around

he'll trust our diplomats and our intelligence community not the flattery of dictators and despots. he'll make it his job to know when anyone dares to threaten us he'll stand up to our adversaries with strength and experience they will know he means business >> reporter: and, becky, tonight the democrats will roll out some more big guns including hillary clinton and barack obama and of course their vice presidential pick this time around kamala harris all speaking tonight on day three of the democratic convention back over to you thank you very much. right now for more on this we welcome duvall patrick, former massachusetts governor who is now founder and chairman of together fund pack and co-chair of the american bridge super pack adjudicate greg from the state of new hampshire welcome to both of you let's set thunder a little bit from a business perspective and duvall i'll start with you you have a background in

business you have done a lot of different things from serving on a subprime lender to working for bain capital and put capitalism and business first so make your pitch as to why you think joe biden is the right candidate for american business. >> so i think my business experience tells me that if you want a stronger future you have to invest today. you have to take a longer term view that's hat joe biden and his plan is exactly about. it's investing in the things that enable americans to lift themselves in education in nation of in knowledge based industries. and in infrastructure which, you know, if you travelled back in the days when we could, you traveled around the world and then come back home you see just how far behind we are inmode modernizing and updating our

infrastructure >> judd let's talk about your piece you wrote for "the hill" the biden tax plan recipe for recession. what is the biggest problem with his tax plan >> it's not just the tax plan but basic democratic thrust. i have great respect for duvall and if he was leading the democratic party economic plan i would be more favorable. but it's being led by a socialist. the tax plan is statement. probably $4 trillion tax increase not being used to reduce the debt or deficit. being spent. spending policies of the platform are about $8 trillion if you throw in the green new deal on top of that you're talking tens ever trillions of dollars. you're cutting off the capacity of americans to get working

capital for the purpose of investment when you got government expanding at that rate simple fact. you can't expand government the way it's proposed under the tax plan and under the policies of their plan relative to spending programs and expect you're not going to crowd out private-sector activity and that's when jobs are created that's where productivity comes from >> duvall, judd is referring to bernie sanders and aoc who both spoke in the first couple of days of this convention. how do you take and go from that to shifting it more towards the centrist view to try to appeal more independents? >> well first of all i think, i want to express my respect for senator gregg as well and with that respect i would i think it's time for the republican party to get some new talk points historically, economic growth has been greater one democratic

leadership than under republican leadership democrats under and joe biden understands that the private-sector is main source of jobs, it's the place where most people and through which most people house themselves and enter taken themselves and make their way in the world but we have an economy that is broken right now it has been growing but growing up rather than out so the marginalized and the excluded and that is what we have to restore if i want to create economic mobility and that requires investment in taxes i'll say first of all, i am one of the few democrats who think that on the business side the tax cut was directionally correct. i think it went further, indeed it we want further than the business community wanted it to go but we didn't finish the work because we cut the taxes and kept the loopholes so if the idea is to make the rate competitive then let's eliminate the loopholes that were argued for in each of their cases as a way to make those

particular industries more competitive. then on the personal side, we can have a radically simplified tax code that is progressive, and that actually addresses the needs that our civilization has and that people who get those tax cuts also say we need, like a modern infrastructure, like broadband that reaches every household, every school, every hospital, like high-speed trains, like an investment in making our energy system much, much more efficient and ultimately carbon free we can do those things we did them in massachusetts and was one of the ways, frankly, that by investing in the green economy we came out of recession faster than most other states and at 25 year high these are false choice we've been hearing for a longtime from the other side if you look historically and the

plan the democrats under joe biden i think have the right direction for america. >> i think we might be talking over each other. i get the feeling that the two of you could sit down and probably work out some sort of a budget and tax plan you might agree with but there are elements in both of your parties that aren't on that same page and i think that is probably what the biggest question is, which direction the party gets pushed, which way they lean. judd, i'll come back to you. republicans are spending substantially more and spending a lot on this pandemic that's an emergency situation. would you go along with the spending they are talking about right now and what would you like to see in the next stimulus bill >> i don't think we need another stimulus bill at this time i think we stimulated the economy to the tune of $10 trillion when you throw the fed's activities on top of the budget spending, the spending of the federal government you're aggravating the deficit here radically and i under it has to be done for the period

that we're in right now but there's no game plan for getting it under control afterward we'll come out of this pandemic 100% debt to gdp ratio with $25 trillion of deficit. we're going to have a situation where basically our kids will get so much debt loaded on to their back that they won't have the capacity to have a prosperous lifestyle like we've had, undermine the standard of living in the destination if we don't get the deficit and debt under control over time. so any the magic wand, what i would do is say that if there's going be another stimulus bill simply because they are running into an election and they want to do something before election which is what's driving this next bill they need include mechanisms to address the out year how we get the deficit and debt back to some level of manageable control like 80% of gdp and the way you do that, in

my opinion, is to set up another simpson-bowles type of commission that has real teeth which is legislated and the congress has to respect its results and make at it bipartisan effort. you can't get any of this one control without bipartisan effort i think you're right, becky, if the governor and i sat down we could straighten this situation out pretty quickly but we're not in charge any longer i never was in charge. but as a practical matter, the people who are in charge aren't facing up to the real substantive problems coming to us in the area of deficit and debt driven in large part by the spending these days to correct coronavirus situation but driven even more importantly by the structural problems which we have in our federal budget which involve entitlement spending >> senator gregg, governor duvall patrick i want to thank you both for your time this morning. this is a conversation that will continue we have a lot of months left

leading up to the election thank you both becky, if everybody on both side could be that polite and thoughtful america would be just fine that was fantastic all right. on deck, is there a chance for more checks to be mailed out by the government you just heard judd gregg say he doesn't think there needs to but what white house thinks there is we'll talk with our chief economist. one quick stock to watch, agilent. shares are down. the company reporting better than expected quarterly number but sales came in 1% lower in the same quarter one year ago. everybody is shopping at target now agilent. we're back after this. >> announcer: time now for today's aflac trivia question. which u.s. president was born on thisay d in 1946

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get you caught up on some earns out. earlier in the session lowe's pre-market session, lowe's out, profit came in at adjusted 3.75 a share compared to consensus estimates of 2.95. revenue beat as well comp store sales surged 32.4% more than double what analysts forecast target reporting quarterly numbers. analyst said higher than $1.62 revenue was helped by jump in same store sales analysts expected 7.6% increase in comps target's digital sales nearly tripled from a year ago. becky. well as if today wasn't busy enough it is opec day as well.

so on deck we'll find out what opec is really worried about right now and whether oil prices and maybe oil jobs are going to be stuck for a longtime. right now as we head to a break let's take a look what's happening in the markets this morning. looks like the equity futures right now are indicated up across the board yesterday remember the s&p closed at an all thyme this moaning it's indicated up by another five points dow futures are up by 47 points. nat nasdaq futures up by about eight. box will be right back this selenite grey is so pretty isn't it?

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joining us now is the special assistant to the president for economic policy and economic council's chief economist and before you joined the white house, i think you were kind of positive as well and i was going to start the interview by saying do all of your peers just sort of not speak to you any more and sort of walk the other way when they see you as far as economists go, very few have said v-shaped and many, many more have said this will not be v-shaped but you're sticking to it >> yes one thing i'll say is the talks that are going on now or talks that have stalled we would like them to occur. the president is going take action to do what he thinks is best for the populace and through executive order to get the economy moving and in even stronger fashion we're in good shape right now. that's important in terms of my peers, p

pessimistic. they missed the recovery coming out of '08-'09 and careful thinking the economy can snap back the economy was very healthy right before we had this pandemic contraction and we look at the data such as retail sales, housing starts, permits, automobile production, joe they are all back above the pre-coronavirus high the v is there the question is will it continue and we believe it will we're encouraged by the fact that our mitigation efforts seem to be working. new daily cases are down this is a remarkable statistic down 36% down 36% from july 25th peak moving in the right direction. more work to do but we like what we see >> you've been on a lot. when you had been on in the past before you were part of the

administration it will be easier for you to say these things now i can just tell you with the white house in the back grope, you know a lot what you say will be discounted as part of the, you know, part of the spin that the white house likes to put on these things i generally think that before you did that, you were going against the entire pack that really expected things to stay bad for much longer and had no idea that the stock market could possibly rebound to this extent. >> yeah. joe, thank you look, the economy -- i'm generally an optimist. there was a book, famous book written a number of years ago called "the triumph of the optimist." i was preft excitty excited abo growth in 2018 and 2019. before this contraction hit, we had been accelerating upwards of

2% we were on track for 3% plus economy this year absent the virus and that's important to me that reflects very good business policies that are employing people, giving good middle class jobs and wage trends moving higher that's what i believed before. in my old capacity i got paid for being correct. i'm unbiassed and i'm giving fortunate and director kudlow good advice in terms of what i'm seeing in terms of market and economic data. >> i want to flip to it schools. we've been talking a lot at a time when schools are to be going back tens of millions of kids will not go back for weeks or months or not go back at all for this semester what happens to the economic recovery when the parents of those kids many of whom can't work remotely, they work at a restaurant or hotel or grocery store. what happens to the recovery when those families can't get child care, their kid is stuck at home and they can't go to their job or look for a job

because those kids are at home what's going to happen to recovery >> brian, first of all i'm happy i'm on at 8:00 not at 5:00 a.m good to hear your voice. look one of the reasons why we would like to pass a legislation is because part of the phase four was $105 billion for school, for ppe, for testing, and that was a bit more than what the democrats wanted. there's important work we would like to get done if we can in terms of different areas and locales, what i can tell you some of the data we're seeing in the hot spots have really improved and we're hoping that in some instances people will be able to go back to school safely we do have a lot of momentum that's helping if these cases continue to move lower i got hope to we can continue to open up safely and more people will go back to school than what is the case right now. unfortunately as you may guess the good news kind of gets pushed off to the side and i don't want to be a pol pollyanna

people said the economy can't continue at this rate. we had this recovery it's easy to say things will slow again, i'm an optimist and i think we'll make some real progress in the fall and people can get back to school >> joe, as an economist for a longtime, you have seen, for lack of a better word, the bond vigilantes and others that worry about debasing dollar and too much stimulus and too much spending they are out in force now and they may be on to something. you watched the action in gold the flip side of that is that it is artificially propping up all the equity markets and people ask what does, you know, buying junk bond -- not junk but buying bond, what does fed buying bond have to do with stimulating

demand for main street there's a lot of criticism do you think the stock market is where it should be as an economist or do you think this is fully a high on all the cheap money? >> look the fed did a very important job in rescuing the capital markets and getting even the treasury and swap markets functioning to normal by april that was important but, joe, i mentioned these v-shaped recoveries. the president had honey some charts on production, housing. we got this big bounce certainly rates are low. rates have been low for a while. rates have been low globally equitys is a value investment. equities are expensive or cheap relative to what rates are low. inflation is low the stock market today is forward looking. the stock market bottomed on march 23rd four days before the president signed the c.a.r.e.s. act. the c.a.r.e.s. act was very important in keeping people employed, keeping companies

having -- having companies keep their workers on the payroll these are positive things. the equity market is forward looking and if we continue to get the growth we're looking at for the second half of this year and looking at 5%, maybe even 6% growth next year which is what some of the private sect orforecasts are showing we would have recouped all of the 2020 pandemic contraction loss in gdp. that will be made up in that world i don't think the equity market seems very expensive if that's the case i don't think it's cheap money it might be the market is starting to sense the president's policies will continue for another four years. >> what about what you see or i don't know whether you're a basketball fan, i don't know what you were watching last night but if you were glued to the dnc what do you think of some of the economic plans there, and once again you're standing in front of the trump white house. i guess you don't like it very much >> here's the thing, joe i talked about the equity

market i'm not sure it's vice president biden or former i'm not sure,000 said i want to be respectful. the biden plan, if you will, is going to effectively double tax us on capital gains an that means selling by year end. the fact that text market hit a new high yesterday, in fact the nasdaq where a lot of profits have been made have been consistently hitting new highs that tells me investors are very optimistic that these pro growth policies continue. otherwise my guess is we start to see markets wobble a little bit and people will say i got an axe to grind if i'm sitting in my private sect orseat i got to like what i'm seeing and think these broad trends continue. just the fact that the unemployment rate is heading significantly lower after many of my peers had forecasted the rate to 20%, it's testament to the hard work and progress we've

made we need to make more progress. there's a lot of hardship and pain but, again, we're moving in the right direction and i just want people to hear that >> okay, joe thank you. and we'll see you again soon >> thank you, joe. >> nice shot i don't know your stature in my eyes is -- i don't know thank you. >> thank you when we come back we'll get an outlook for oil and later again ron teaming up with roush we'll speak to again ron ceo dr. about that news. again ron stock is up 35% since the marlow "squawk box" will be right back.

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welcome back after a wild start to the year and that now infamous day where price went negative crude oil prices have been creeping higher largely not because demand is growing, it's because american oil production is going through what is no doubt a record collapse new drilling and outvladimir putin falling faster than naked sky diver. today opec meets virtually of course here are some of the key story lines around the meeting first concern price risk for oil is likely to go to the down side not the upside in parts because cracks of global demand growth are showing as economies either relock down or people don't go out. next up, cheaters. they are still cheating.

iraq and nigeria putting out more oil then they are supposed to under the quotas which has frustrated the saudi leaders of opec which is tired of carrying the production cut load. their patience wearing thin. joining us to talk more about this is michael bradley. he has physically attended an opec in austria. what are you expectations from opec today >> i think this will be a really, really low key meeting the last couple of meetings have been very contentious. saudi has been pushing guys to comply that will be the focus again for this meeting to get the cheaters, iraq and nigeria, cheating to tune of 450,000 barrels a day. that's going be the focus of this meeting getting those guys in line. how they do that and whatthe

headlines look like in the next two to three hours will be key >> do you believe the price risk is to the down side not to upside wean with 2.5, 3 million barrels coming off the u.s. market >> near term the markets are a little bit oversupplied. we look at spreads and dubai time spread over the last four, fire, six weeks they have been rolling lower which tells the physical markets are getting weaker that's a combination of demand petering out and supply being added to the market in the last month. time spread is going lower that tells the market is looser which means opec will have to be more vigilante in their compliance over next couple of months >> you know we just had phil lebeau on talking about how the expectations for flight growth is not that high in fact maybe not come being back as fast as some people thought. jet fuel is likely the problem we have a chart showing jet fuel and flights and the reality is even as people may be driving more in the united states, we're

simply not coming back to what we were flying how much is that weak demand in jet fuel playing any havoc with the oil markets, mike? >> yes i think it's a combination of jet fuel and just low gas demand what we're seeing is -- you look what's happened in the last couple of weeks, last month or so, it's been refinery, temporary refinery shut ins, and actually some total refinery closures and that's just a combination of weak demand we saw last night the apis come out. so global cracks are really terrible we'll see continue refinery ramp down which is bad for crude oil demand also going to see closures permanently and weaver seen a lot of, you know, announcements over the last couple of weeks of guys converting refineries we'll don't s-- continue to see

that >> as oil drilling collapses, that means less natural gas is coming out of the ground natural gas at 40% in a couple of weeks, mike i know you called this you and i talk do you think natural gas and natural gas stocks could be a money maker for the cnbc audience >> yeah. i think crude oil and natural gas going into 2021 looks fantastic for us i mean you're going to have supply being contained and domestically and demand will be increasing as we come out of our lockdown natural gas right now you just won't see especially u.s. producers they won't spend they are now saying they want to spend 75%, 80% to reinvestment that leads to a big short fall next year. we're pretty bullish on oil and natural gas next year. >> all right bullish longer term. michael bradley, thank you very much when we come back, senator

debbie stabenow will join us to talk about the fight over the postal service, stimulus and much more. later, regeneron and roush announcing the increase to supply covid cocktail. 'lta to leonard schleifer for the latest for the latest "squawk box" will be right back. virtual wallet® for digital banking from pnc. it's time to get more from your bank. rather than worry about how to pay for long-term care. brighthouse smartcare℠ is a hybrid life insurance and long-term care product. it protects your family while providing long-term care coverage, should you need it. so you can explore all the amazing things ahead. talk to your advisor about brighthouse smartcare. brighthouse financial. build for what's ahead℠

market come back complete. stock futures they are higher right now. point northrop grumman gains after the s&p 500 surpassing it's prepandemic record. it's official now. believe it or not, we're in a new bull market. another huge morning for retail numbers target and lowe's absolutely blowing past analyst expectation in the second quarter as americans either hunker down at

home or they went to about five stores that were open and those five benefiting. could there be some light at the end of the tunnel of a new stimulus package some members of congress are pushing for a vote as soon as this weekend final hour of "squawk box" begins right now. good morning, welcome back to "squawk box" here on cnbc i'm with joe kernen along with becky quick and brian sullivan who got to sleep in today. andrew is off today. u.s. equity futures are indicated up a little bit almost 50 points after yesterday. s&p 500 completed its historic come back as you just heard brian talking about. erasing all of the coronavirus viruses and hitting intraday highs. that confirms that this year's

bear, bear market was the shortest on record just 33 days from mid-february to late march. perfect. almost not exactly but pretty darn close. right, brian thanks, bill according to a common definition it confirms that we're in a new bull market which began with the rise from those late marlows treasury yields indicated trade ago round .65% there's a lot of fed action. nice to see yields move up a little if the economy is for real there's so much -- so many thing going on who knows what the real -- drives rick santelli crazy you could probably say that for the last 11 years. price discovery. >> probably. >> when you have a fed balance

sheet, the fed balance sheet, let's be clear, the fed is five unelected officials. no knocking them their balance sheet is nearly twice the size of the annual budget of the united states of america which is overseen by 535 elected women and men. not that that's a thing. i'm just saying. the fed's balance sheet is almost double the entire annual budget of this nation and when you're buying etfs directly -- it's like a pershing missile trajectory pershing, see what i did there, joe. i'm tired still. >> you got it. >> there you go. pretty good. >> one thing i'm say -- brian is good with that one thing i will say is that most of the people who know the markets best who i speak with say look if the fed hadn't stepped in we would be in serious, serious trouble at this point. you got to give it to the fed

for stepping in very quickly and making markets didn't freeze up but hand it to the federal government for coming up with some of these plans really quickly too. you're right, i think it's impossible to know price discovery but it could be pretty frightening situation both in the economic markets and real economy the they weren't there doing some of the support right now. >> you remember cramer when our former colleague erin burnett was wearing that bizarre dress she was thinking i going to wear this once. it's got animals or something on it but cramer, he went nuts with the last one he didn't do that this time. >> he didn't have to because the fed stepped in he didn't have to. jim didn't have to because the fed stepped in quickly now you have me rethinking

let's hope nothing happens today because i don't want to see the shirt again and again. >> it's only slightly less brown than joe's tie from yesterday, by the way >> exactly >> you know what this is all a diversion. nobody has been talking about my toupee in the last two days. >> your hair is the real color under the lighting there >> it is it is. people don't realize that. it's the real -- no it's real. i swear -- >> joe, to quote elaine from seinfeld, hold on. with regards to my ears i just want to be clear too they are real and they are spectacular. >> as long as you don't dance like elaine we're okay >> exactly all right. >> all right let's get to these

retail results that were out a big week for the sector. we're going to start with tar gift certificate that retailer crushed earnings expectations more than doubling what the analyst was expecting in terms of profit estimates revenue beating forecast with quarterly digital sales. same store sales, comp stores including internet transactions jumping 24%. target ceo brian cornell joined us earlier in the show >> we saw really consistent strength from may into june and july may was the strongest month with corps over 30% but in both june and july we saw comps in over 20%. that strength has continued in august and we're seeing low to mid-teen growth. >> by the way, if you saw that stock chart target is trading at an all time high this morning in the pre-matter up another 8% which is hard to believe because they just closed

at an all time high on monday. second quarter results from lowe's and there were impressive as well. same store sales skyrocketed more than 34% versus a year ago. that was more than double what the street was expecting we're going dive much deep near to these results later this hour again that stock this morning up by 1.8%. then t.j. maxx out its numbers it posted a larger than expected sales. said foot traffic moderated from last quarter into this one it doesn't expect to pay a dividend that stock is down 5.6%. the winners and losers in retail kind of laid bare and obviously some of them had the huge advantage of being able to be open during a pandemic shutdown. yep. this is true hearing a lot about that you know, becky, were you getting those messages too you don't need to -- don't say

somebody said -- i don't want to be protected >> oh, good. >> when he sent in you don't need -- i said this beforehand say my name. that's funny if i can say it i will i didn't initially say it. but a lot of people on twitter are saying that too well, yeah, you know, the government will keep you open and shuts down all your competition and now you're bragging i think, brian, in fairness, this has been going on for three, four, fire years and been preparing for taking market share. >> there's a lot of people who don't feel comfortable going back in a store and utilizing things show up and home delivery or show up and get it delivered right into your car as you podium in the parking lot. those are the things that walmart and target have been able to do pretty well >> yes >> that said, isn't it kind of

sad, though? kind of sad. >> for a small business. >> i know we lost small american business it's like drive you, faceless, nameless no, hellos, throw the stuff in the back. we've been moving that way for a while. maybe i'm being a little bit emotional. it's sad you lose that connection with even anybody just hi how are you today? >> absolutely. now i said it, becky i don't like to say it either but i mean it. it is sad. we can go back a long way as we watch creative destruction just put people out of business and a lot of times we don't cushion the blow to the people who are displaced. but we always say that's the way things work. that's way you make progress how long has walmart been putting mom and pop jobs out of business it's probably gotten even worse recently, brian. but i mean people cried about the buggy whip manufacturers

>> now it's amazon walmart was the bad guy 15, 20 years ago. remember that vermont voted can't have a walmart now it's walmart -- it's amazing how things turn. >> yes all right. we don't want to keep the senator waiting any longer congress is still at a standstill on another round of stimulus relief. many believe it's critical for the nation's economic recovery we're closing in on three weeks since enhanced federal aid for millions of americans expired but we might get movement soon a group of house democrats are pushing nancy pelosi for a vote this weekend on expanding benefits then it's up to the senate and then president trump joining us now michigan senator debbie stabenow and senator it's good to he see you we had one of your former colleagues on earlier, judd gregg. he's a great guy i'm sure you got along with him great. he disagrees think enough

10 million still not spent we got pay that eventually given what we're seeing with some economic green shoots in the stock market we don't need to do it is he wrong? >> i'm sure you're notsurprise first we say good morning and i served on the budget committee with judd gregg. he was a terrific chairman and even though we disagree on this, you know, i respect and value his opinion. what i would say this is an extra time it's a pandemic. it's once in a hundred years for us let's hope it's only once in a hundred years and these are extraordinary times with 30 some million people out of work we don't have 30 some million jobs and i always am very glad to listen to positive results you're recording but the reality is when we say the economy, supply and demand, the demand

means somebody has something in their pocket, money in their pocket to go the grocery store or pay their rent or pay their bills or go into target or go into walmart so the reality is at this moment when people are not able to re-open their businesses fully, are trying to survive and figure out what to do on child care because the cools are not re-opened because of the pandemic and on and on and on we have to have a way economically to be able to keep dollars going, the supply, the demand side of the economy. and on top of that i would say that when you look at the fact that states and local units of government are faced with laying off our public services, our firefighters, our police officers, the public health workers, the food inspectors, i want to open our refrt rant, you have to have a food inspector. what we're seeing is probably

going to see more layoffs. there's been a million and a half already authors folks working with jobs that go into unemployment and aren't able then to pay their bills and that certainly doesn't help the economy >> we're trying to do this right, senator everybody is i think. and we understand how much money we're talking about here but we also understand, you know, that the stock market does not necessarily represent main street although a lot of people, you know, we think about stock ownership and forget about all the 401(k)s and retirement plans. we rather have a stock market going up rather than down for everyone across the country. but how do we -- how do we make sure we don't frivolously, you know, get the debt too high based on the criticism maybe you hear from republicans that the democrats have all this crazy stuff in there

every time mccarthy is on he says cannabis is too much, is mentioned more in the bill than other things that's one of his examples of extraneous things in there >> i'm not sure about the cannabis part of it here i didn't see it. i'm sure it must be somewhere in there. but the reality is that we got to do oversight. of course. always we need to be doing that together but the truth is when you talk about the stock market, you know, the c.a.r.e.s. act we made it very clear that treasury as well of course the fed essentially could put a safety net under the stock market, that that was good for the economy. we didn't put the same kind of powers to fund small business or family farms or a safety net under working people who lost their jobs through no fault of their own. it's not been the same it's great that that stock

market is doing well but not sufficient not sufficient in the united states of america and you know what if we don't get our arms around this pandemic, if we are not able to create the rapid testing, if we don't have any national plan if we are not doing what we need to do to have testing materials, the ppe and so on in the united states, made in the united states so it's fully available to us, we won't be able to fully re-open the economy safely or our schools. and if you don't open the schools, you can't fully open the economy. so this is all connected and this is an extraordinary moment so i'm happy to have all of these debates about the debt i'm sure if it's president biden and democrats all of a sudden the debt will be the most important thing in the whole world and nothing else matters i know you guys talk about it all the time but my he republican colleagues don't not when they want to fund what they want to fund the minute democrats are in charge, over course, the debt

will be most important thing but right now, at this moment, which is extraordinary for the country, we have to. >> funny how it works. depending on -- >> oh, yeah. >> both sides. fully do believe me we're watching. yeah senator, thanks. we appreciate it thank you very much. all right. we'll see you later. brian. all right. on deck one year ago today the business roundtable asked a rather simple question what is the purpose of a corporation? is it just stocks or is it something more meaningful? so up next roundtable ceo josh bolten will join us what we have learn social, political and societal change. another biggie a first on "squawk box" interview the ceo of regeneron we'll hear about a new collaboration with roush trying to ramp up production of a potential covid-19 treatment

that's a biggie. breaking news this morning dow futures up 35 and we're back after this ♪ come on in, we're open. ♪ 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. ♪

welcome back big news from johnson & johnson buying momenta pharmaceutical at 52.52 per share. momenta closed yesterday under 31 bucks a 65% premium. it will boost j and j's treatment for autoimmune shares. momentuma shares up 145% this year before the deal so congratulations to the shareholders there and probably a lot of insiders. they have as they say banked

some coin. yep, momenta first for me a lot of companies that have come out in recent years we don't know all of them. shareholders know that one coming up an interview with regeneron ceo with the ceo sleeve sleeve has his company partners with roche to increase supply of an antibody cocktail aimed at fighting covid-19 that news broke earlier this morning. as we head to break. take a look at southwest airlines the company said its cash burn rate for july was $17 million a day, smaller than the previous estimates and also projecting a evusler burn rate than prioly estimated stay tuned you're watching "squawk box" on cnbc find the shoes that inspire the look at dick's sporting goods. for me, it's all about the shoes.

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welcome back, everybody. this morning the business roundtable is looking back one year to when it first decided to call for enhanced corporate responsibility you may remember last august 19th brt overturned more than two decade old policy statement that said a corporation's main purpose was to serve shareholders now it includes the key constituencies of customers, employees, suppliers and communities. joining us right now to talk about this is business round table ceo josh bolten. josh, welcome. good to have you with us today >> good morning, becky >> so let's talk about what's happened because there has been so much that's happened in the year since this and especially because of this global pandemic. i think businesses have had to react in huge ways to kind of address that and make sure that they are reaching out to all their constituencies where do you think we've come over the course of the last

year >> i think it's been an important year, and especially for the statement of corporate purpose that you just mentioned because while a lot of people said to me, oh, the economy is in terrible shape so i guess the corporate purpose statement goes out the window, and my answer has been on the contrary, what this crisis has meant is that the overwhelming majority of america's big companies are stepping up in a way that actually underscores the values in that corporate purpose statement because like you said, this is a moment when the corporations who are able to do that need to support their customers, their employees, their suppliers and the communities in which they operate as well as their shareholders >> josh, i've been thinking about it, and i you know have

some very specific examples of things where companies have really stepped up to reach out to their community, maybe to their employees. i can think of many of them from ones we talked to where they are paying their employees more, giving back to the community and make being sure they help support them do you think it was because of this purpose entertainment those or do you think this is just something -- to me great companies have done this for a very longtime. >> great companies have. and the corporate purpose statement is in many respects a reflection of the way that good ceos lead their companies these days but i think the statement has also made it front of mind for a lot of companies and made it comfortable for them to go to their shareholders and say, yeah, i'm going to be spending some money, extra money on my employees for the next six months, or i'm going to be, you know, foregoing cutting off our

electricity customers who can't pay right now. and you can say that much more comfortably to your shareholders now i think because of the values reflected in that statement and the underlying point there is that no company can be successful in the long run if they don't support all of their stakeholders so the statement is really an affirmation of support for the long term shareholder over the short term shareholder >> you know that's interesting i hadn't thought of it from that perspective the idea that this gives those ceos some cover with their shareholders when they go to them. have you seen a change in shareholder mentality over the last we're >> over the last several years, yes. i think you look at blackrock, you look at vanguard, you look at a lot of the big shareholders and they are not just

acquiescing in ceos behaving this way, they are calling for it as are the companies, customers and employees. >> josh, you have a couple of examples you want to highlight of things that companies are doing very specifically these days >> sure. well, it's a really long list. but you've both the auto companies, gm and for. they retooled their operations to make ventilators. you got cigna and new york life stepping up and creating $100 million fund for the families of front line workers you've got duke energy and edison international and comcast giving their customerswho are in trouble the opportunity not to have their service cut off in the midst of the crisis. you've got tim cook at apple and

sales force who each donated $100 million of ppe when there was the crisis over the shortage of ppe early in the pandemic there's just about every major american company has really substantial examples of ways that they stepped up and tried to help all of their stakeholders through the crisis. >> josh, it's joe kernen and you know we've talked in the past. you know i sort of argued or at least played devil's advocate from the point that if you take care of shareholder value like milton freeman said that by definition you can't do things to hurt, you know, your community. you can't do things to pollute rivers you have to think of all these things or else it comes back to haunt you. if there was one thing you needed to do was to "today" profitable so you could stay in business for your employees and

customers and everybody else i needled you a little bit about getting woke or whatever but my point i'm making right now see if you agree with it you're still basically, even with all these concessions that the brt has made, given where the left has moved about capitalism and the aoc, you're still -- there's still plenty of differentiation between where you are and where some people in this country want to take us right now. would you agree with that? >> oh, sure, joe and, look the statement wasn't a concession by ceos it's the way they think they ought to run their companies in the interests of their long term shareholders, and in the interest of the system overall so our ceos are still 100% supporters of free market principles they are supporters of capitalism and the way to make capitalism work in america these days is to make sure that every company is taking care of all of its

stakeholders in the interest of their long term shareholders, like becky and i were just talking about. this isn't the ceos denigrating the shareholders in some way, it's the ceos saying i'm landing on the side of my long term shareholders not my short term shareholders >> there are sometimes, josh, if a ceo's personal woke -- i don't know whatever you have i can come up with examples where if a ceo decides he wants to do something it can be counter productive for shareholders what his own little woke, whatever it is that he has on his plate that he wants to do with the company's money that could affect shareholders. it's a slippery slope. to say these guys are all capitalists and believe that not everyone believes that any more. that does distinguish your group from a lot of people that will be there all week -- watch tonight. they will be there all week long

talking about a very different view of how the economy should operate versus what you're talking about. >> sure. joe, that's exactly why the corporate purpose statement says we're supporting our stakeholders and that means our employees, our customers, our suppliers and the community in which he operate and so if you stick to that, that mantra then you don't have people going off on frolick and detours of whatever good cause happens to strike them the good cause here is supporting a corporation's stakeholders in the interest of their long term shareholders >> josh, thank you for your time today. it's good to talk with you we hope to see you soon. >> likewise. all the best take care. >> great all right. we'll talk with regeneron this morning announcing a

collaboration with roche to ramp up the global supply of a potential covid treatment. meg at the well joins us now with a special guest meg. >> reporter: that special guest is dr. leonard schleifer, ceo of regeneron. thank you for being won us this morning. tell us about this deal. you're trying to manufacture an antibody which is a complex drug to make on a scale to stop a global pandemic. this is an unprecedented challenge. tell us about the challenges you're trying to soflve here >> regeneron has been in the lead in trying to develop these so-called antibody cocktails combat this terrible virus and make a dent, a big dent we hope into this pandemic we've been exploring technologies we've been developing for years and despite our efforts and technologies which we're optimistic about, we

use them to treat ebola. we've shown they can attack this virus in monkeys now we're working to show that we can do in this people but it isn't enough to be able to prove that this cocktail can do it. you have to supply it. supplying these things are extremely complicated. you know for probably 30 years we've been admiring genentech, part of the roche group. we've end emulating them and recently competing with them and now we're excited to collaborate with them. they bring to bear one of the largest capacities in the world to make human antibodies and more than triple and substantially increase the amount of doses, drug cocktails effective that are available in the united states and around the globe. >> so give us a sense of how much of this drug actually will be available and when? we know you struck a contract

deal with operation warp speed in the united states for almost half a billion dollars and you said at the time you could supply for treatment because the dose is higher up to 300,000 doses or for prevention up to 1.3 million dose thinking about number of people who are at risk for covid-19 or have covid-19 that clearly won't be enough. tell us about how much you expect to be able to supply now and the timeline for that. >> sure. well so we're working very hard to transfer our technology, which is a big deal. but this is what you do in pandemic times transferring technology to one of our competitors that technology transfers over the other way. i think that there's such a sophisticated manufacturer, it will take months rather than years it would take others to be able to operationalize our technology and once they get going, between them and us we would think that we might be able to psupply, fo

example, in the prophylactic mode 4 to 8 million doses a year or even more depending on how things are looking they have more capacity. we have more capacity that we're trying to squeeze our products, around products and make it available and staff up so, really maybe up to as many 8 million dose in the preventive mode or more >> of course you're both working on this at risk before the drugs have even proven to work in clinical trials. tell us about your level of confidence that these drugs will work and really make a dent in stopping this pandemic >> well you're exactly right this is sort of a re-ordering of things the way things are normally done. normally you get evidence before you scale up and get this capacity we're making the investment as is roche in the capacity i'm hoping that our cocktail

will, in fact work now why do we think it will work as he said it's worked in the setting of ebola where it was a life-saving drug cocktail this cocktail is directed towards this particular virus. so we hope that it would do the same thing, would be either life-saving or prevent people -- for example we're doing a study in people household contact with people who are already sick. if your wife, brother, sister or whoever you're living with is sick and has covid we think that maybe we could prevent you from getting it if hour hospitalized we might be able to prevent you from getting worse. these are things we have to get data for at the end of the day it all depends on the data. >> it's joe kernen, and i don't want to get too into the weed. but you're a doctor so i know

you know the answer to this. why do you need two antibodies, why do you need a cocktail to go over the spike protein it a different part of the spike. does it mutate around just one how does that work we pointed out in the past you got a great technique for fully humanizing this so we don't have to worry about any bad response from the body to the mouse parts of these things. why a cocktail >> that's really pretty insightful question for just a television anchor, joe you're absolutely right. >> oh! that wasn't very nice. >> come on you know i love you i'm just giving it -- you stuck it to me as a doctor i should know the answer which is not the case think it's protein that sticks out and attaches to the body's cells and what we're trying to do is cover this spike protein

on the virus so it can't attach, can't replicate. can one antibody do it sure we have single antibodies that will block this. we know that you hit the nail right on the head you mentioned the word mutate. this virus is constantly changing a little bit and what you don't want to do is select for those mutations by putting just one thing in and then you mutate and then all of a sudden you could have really bad unforeseen outcomes. could make vaccines less effective. that's what we felt and we took the time to get two antibodies that could bind simultaneously to this protein and therefore make it very unlikely that you could mutate that's exactly what we showed in our animal and cell studies that a cocktail is more effective you got it exactly right a plus >> len, we got to go

i just want to give you a shout out. $65 billion. when you started it was zero billion dollars, was it not. in your life time you went from $0 billion to $65 billion and at the same time hoping to cure the pandemic so just -- only in america it's awesome amazing. >> thanks, joe it really is the case that people don't under we went for 25 years spending billions before we even became profitable i think the public does need found the miracles that our employees are able to do, they came in by the way in the pandemic and worked on this and our company didn't make money for 25 years so yes only in america our system does work but right now we're focused on just showing that we can make a difference because that's what has to happen. >> doctor, thanks for being with

us >> thank you very much, meg. thanks joe take care. pretty smart for a tv anchor, joe. by the way, we have some breaking news i want to get to forgive me the uso oil fund remember that is the etf that kept rolling its contract months as oil went negative the sec just issued a wells notice investigation against u.s. commodity funds, the u.s. oil fund and john love who runs that company. uso is run by u.s. commodity funds and this was that contract that kept, you know, rolling to future months in as the market developed. the sec this morning issuing a wells notice against the company. again no distinct allegations ever wrongdoing. wells notice is designed to investigate what exactly they have been happening. under rule 17 and 10b5 of securities law of 1933

it's a pretty big explanation but implies some kind of potential, potential fraud or material misleading of information regarding that fund. so breaking news, the uso, etf and its parent company and ceo getting a wells notice from the sec. i just reached out to them for details and a comment. if we get one you'll certainly hear it first. up next a deeper dive into the big box stores dow futures up 20. "squawk box" will be right back. more and more sensitive, personal data. and it doesn't just drag hr down. it drags the entire business down -- with inefficiency, errors and waste. it's ridiculous. so ridiculous. with paycom, employees enter and manage their own data in a single, easy to use software. visit paycom.com, and schedule your demo today.

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welcome back we got absolutely blow-out second quarter results from target earlier this morning. brian cornell joined us live and said it's critical house and senate pass another round of economic stimulus and pointed to a shift in traditional consumer discretionary spending >> in the pandemic we're not going restaurants. we're not going to movies. those traditional summer trips have been cancelled. we're not on plane we're not spending dollars on lodging. manyof those dollars have been redirected into retail when i look at the most important numbers right now it is the traffic trends in our stores what's happening with market share, and how those dollars are being repurposed and who the winners are. we're seeing in retail today winners and losers all right joining us now to dig deep near to these retail results is director of consumer research and senior management

director at retail analyst at guggenheim securities. no knock on brian cornell and his team i'm sure they did a great job under very difficult circumstances but there were only a few big box stores open during much of the quarter in much of the united states. how much of these results is the quality of these companies, lowe's or target actually running the business versus there was simply no place else to shop, stimulus checks came in and it was sort of they fell in the money pit if you will. >> brian, good morning i think ultimately when you look at the results they had a huge opportunity. however the opportunity was given to them and truly capitalized on the market share opportunities that were out there. it was an amazing trend by target this morning. >> as long as you have been covering especially the retailers which tracks earnings estimates, have you ever seen a retail beat like the one target

just had >> this was definitely a record for target in the 53 years of business that they've been in existence. however one key metrics that stood out was 5 million in market share that they gained from apparel two sectors. target saw single digit growth in apparel which is outstanding. however for this discretionary spending to continue in the united states, stimulus checks are crucial. the latest meeting of the consumer confidence report tells us consumers are very much concerned about the unemployment, their personal financial situation and having that money coming into their pockets they will spend it but if it stops the third quarter could not look as good as the second quarter especially given that the third quarter has to be a quarter where consumers take a pause before spending a lot for the holiday season

i guess, the question is this how much has this permanently or semipermanently changed our consumer behavior, the drive up where they throw stuff in the back and you drive away, eat will that stick around for the next couple of months, quarters or even years? >> for sure. ecommerce is here to stay. there's right now what we're seeing in spending there's definitely nothing going on. we've talked about that before they are going home furnishing stores health and wellness on top of their mind they are not just shopping at five retailers they are shopping at nike and lululemon. they all saw immense ecommerce sales. so ecommerce trend is here to stay companies on the other side in asia have already told us shopping in stores is back but consumers are still graph

tasting taste i -- gravitating online to finalize those purchases >> retail is not going away. thank you guys very much bob we'll see you soon joe? all right. becky, are you there >> yep, i'm here >> we heard from andrew, i guess. he actually sent us -- he sent us in what he was doing yesterday and i'm really kind of touched actually and we were right about the -- he's getti inked. he's in the chair. very painful he confirms that's one of the most painful things that you can go through down on the jersey shore i'm not sure which place he went we'll miss him he'll come back sporting a pretty darn nice new ink i love it. >> he'll have to start

sleeveless shirts. >> he could have paid up for some color add some color to that >> i'm not sure if that's his arm or where that is >> going cheap on the kiernan face don't get cheap on the kiernan face >> we're coming right back with the headlines and the futures.

welcome back, everybody. yelp has been tracking data related to business closures since the start of the pandemic. the company says that there are currently a total of 155,000 businesses that are closed in the united states. joining us right now to talk more about it is justin norman, he is vice president of data science at yelp. justin, where do we stand right now versus when you first started tracking this in april >> thanks for having me, we canny, and we have a lot to talk about today. you're right unfortunately yelp status still shows that the pandemic continues to hit local businesses especially hard as a matter of fact, we're beginning to see overall business closures increase again up to 155,000 total closures as of august 11th, compared to the nearly 133,000 that we reported as of july 10th. so now what we're watching is

that the rate of change of closures both in temporary and permanent are also both up, which we had seen a temporary pull back in the temporary closures, which was an indicator we were hoping would continue. way back in april we reported 176,000 total business closures, which we had hoped also were -- quite a few of which were temporary, but we're starting to see in august that that trend is not continuing downwards as we dig a bit deeper into the data from a category perspective we're also seeing that restaurants are the most impacted category and that's why we're taking retail with more than 31,000 closed and that's 61% that are permanent. >> that's devastating. of the 155,000, how many of those businesses are permanently closed and how many are temporary? >> right so that's about 61% total will be permanent closures that we're

seeing there yeah, it's absolutely devastating as you said. in our recent economic average report we uncovered an interesting relationship between some late may consumer interest in the restaurants and that's also in bars, nightlife and gyms as well, so all those indoors activities and there's also a subsequent increase in covid-19 cases. we are not saying that's causal, but it's a very interesting relationship we are watching as well to see if there are going to be continued waves of business closures both temporary and permanent going forward. >> what do you ascribe this to is this because the ppp has run out? bases are now finding out they don't have the customers coming back is this because states are keeping businesses closed or going back and doing reclosures? what do you really think is happening here >> a combination of all of those that you mentioned many businesses have with stood having to temporarily shut the doors and operate at reduced capacity for months, however, the longer that that continues without sufficient government

aid or customer aid, the more businesses we're going to see force to permanently shut their doors and in particular those businesses that are in states that had reopenings like arizona or in the south there was a wave to rehire some of the staff, restart operations especially indoor and it's difficult for low margin businesses as you know and many of those same businesses are having to transition back into a temporarily closed status and maybe of them are just skipping straight to saying we are not going to be able to do this in the long term and going into permanent closure. >> justin, i wish you were here with better news, but we do appreciate the data and we hope you will come back for another update soon. >> absolutely. thank you. >> thank you brian? all right. becky, thank you very much you're watching "squawk box. dow futures up 26, more on the markets on the amazing retail results coming up next stick around ♪

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let's get to cnbc

headquarters, jim cramer joins us right now jim, i'm told we only have time for one question so the burning question this morning is was the belt that you bought from shipt a size smaller. >> i was looking for a 34, the old days it was 36, got a 33 it works perfect. brian cornell, shipped, love it. >> perfect. >> 33. >> what do you think of target's numbers. >> unbelievable. just unbelievable. best in show >> jim, we will tune in in just a couple minutes to get more of your take, but good to see you and i knew it was going to be smaller. >> good to see. >> you you, too. >> most people get no sleep get fat supposedly just the whole thing makes no sense. 33 god, all mighty. 33 i think it was 1933 when i was a 33 anyway, joining us now for more on the markets jeff south, founder of south strategy and portfolio managers, chief investment strategist at capital wealth planning. hay, jeff, we have a lot of people on, they say, you know --

and i call them on it because they're like, yeah, i think we're going to go higher, they've been negative the whole time, here they are at new finds saying we're going to grind higher you were right and we got to 3,400 and that was your basically close, and that was your target all along. now what >> right right. a couple weeks ago i wrote that i think the markets are getting ready to go vertical, they did go vertical. normally when you bounce up or bong off the old highs you generally don't get through it on the first try, it takes three or four tries, but i think we're going to go through it and i think we're going substantially higher >> brian wouldn't have been nearly that nice to you, this is joe, the guy that had been talking to you about this all along. you go on his show, too? are you that -- no, i think on cnbc -- anything on cnbc is fine we had katie stockton on, she is a technician, jeff, that said that the sentiment is getting too bullish, she's looking for maybe a 5% to 10% and that

probably wouldn't surprise you, would it >> yes, it would you've got $5 trillion sitting on the sidelines, people are bearish, people don't believe this rally. >> okay. she was saying after perhaps some consolidation that 37 and change is what her long-term target is. do you go out that far what do you think the s&p -- where can it get by 2021 by the end? >> i told you about a month ago i thought in 12 months the s&p would be at 4,000. i will stick with that >> does it matter who is elected in november and what happens with the senate? >> it might on a short-term basis, but longer term we are in a secular bull market and presidents don't make markets, markets make presidents. >> all right jeff, very good. thank you. we don't have a lot of time left so we're going to have to say good-bye, keep it short. we got what we needed to hear.

brian, thanks. becky, what do you think, i will get one that says becky and andrew will you play along with this with the ink or no maybe not. >> no. not a chance. >> too painful too painful and too permanent. i don't know how he would do -- anyway, make sure you join us tomorrow on "squawk on the street" with the skinny jim cramer is next ♪ good wednesday morning, welcome to "squawk on the street" i'm carl quintanilla with jim cramer. david faber has the morning off. coming off the s&p record high and record close ending the shortest bear market in history. futures are steady with more blow out retail prints from target and lowe's. our roadmap begins with retail blow out, target profits up 80%, same store sales setting a new record say good-bye to the bear market, the question is what happens next and the president giving verbal s