two can play this same game. we have to start playing it now. the reason why it's an interesting development here is because we have not yet confirmed whether or not there is a ban on maga hats at goodyear tire and rubber the tweet caused an immediate reaction in those shares as you can see by the charts. what we do have -- we have reached out to goodyear tire for some kind of a comment or clarification on what their policies are but in a prior statement, goodyear did say that they are committed to foersing an inclusive and respectful workplace. they ask that they can comment on issues of injustice and other equity issues or verbal otherwise support of political campaigning. we reached out to goodyear for a comment, but that's the reason why, folks, you're seeing that reaction in the shares and i will send back over to you. >> all right, dom. thank you very much dominic chu watching gt for us today. good morning, welcome to "squawk alley."

apple is above 467.77 making it the first u.s. company to have a market cap above $2 trillion, a discussion a few moments ago about tim cook and how he has led stewardship of the company through all kinds of cross currents josh lipton joins us to talk more about that. josh, it's funny to look at that change of market cap and think back to some of the more cautionary calls we've gotten in the past few weeks from the likes of b of a who worry about margin pressure on phones, margin pressure on services, less impact from the buyback and so forth >> yeah. listen, you look at this recent run, carl, obviously they had those earnings in late july that blue past the street's expectation. you saw strong growth in sales of the new low cost iphone sc. you can chalk this recent run to a few big trends one, they'll say listen in uncertain times cash is king and

obviously apple has a lot of it, net cash position of $81 billion and counting also, that work from home trend is clearly helping apple or at least certain apple products and services again, look at the last earnings report, max sales, ipad sales much stronger than the street was looking for. finally clearly here what you're seeing is a lot of investors are betting in the quarters and years ahead that apple is their think and well positioned to capitalize on some of the bigger tech trends whether that's 5g, digital health or wearables, guys. >> josh, maybe now is the time to go to that play list apple bears greatest hits. remember this one, apple can't innovate why didn't they come up with the amazon echo? or how about what apple really needs to do is buy tesla and make elon musk the ceo weren't those some interesting tunes? >> yeah. so, those are some big hits, jon. you know, wearables is really interesting. i remember listening to people

even on this very network who said tim cook was making a mistake when he launched into those wearables. now when you talk about those wearables, apple certainly dominates that category. the last estimates i think i saw from research something like 30% share there. so pretty interesting take we often hear that as a criticism, of course, of cook. i think sometimes people bring up it's method over magic. of course magic is in the eyes of the beholder there, but cook has continued to innovate certainly talk about the smartwatch, talk about air pods and certainly some of those services, too, like apple music, jon. >> yeah. josh, i guess it took a little while for investors to see that magic certainly. the air pods i remember when they were being made fun of. there were pictures posted everywhere of people looking goofy if their air pods but now you see them absolutely everywhere apple -- shares have risen 10% this month alone that's just a huge gain. and i wonder if that stock split had something to do with it.

i know that it didn't create any actual wealth, but psychologically, right, retail investors have been such a huge part of the stock market story this year. apple, of course, and big tech have been a huge part of the story. i wonder if that stock split has pushed it over the threshold and the next question i suppose, guys, carl, is who gets there next i remember when apple hit the 1 trillion mark, we saw amazon, alphabet, follow, amazon is now at $1.6 trillion market cap. microsoft, $1.6 trillion, alphabet just over $1 trillion and tech has really led this rally. is it inevitable that the other ones follow since given their momentum so far this year, carl? >> yeah. it's only $400 billion away from where apple is that's just a walmart plus a little, right? >> exactly we've seen it happen >> in today's times, that's not really that much

josh lipton, always great to watch this apple journey with you and look forward to seeing what interesting tunes the apple bearers will come up with next now that we hit 2 trillion, because clearly company's greatest days must be behind us, josh lipton. thank you. now, we're going to bring in gene munster of loot ventures and roger mcnamy to talk about the overall market but of course this milestone for the biggest stock in the markets and that is apple. gene munster, we never got that apple television that you were looking for, but we did get a $2 trillion market cap intraday your thoughts? >> i'll take the latter over the former i think that's what's important here is this concept that it's -- jokingly you mentioned that its best days are behind

it apple is actually view that it's best days are still ahead of it. i know that that is a little bit difficult to wrap our head around given its current $2 trillion but, iput it this way, that there has been a fraction of the market, not just because of the pandemic but just over the last few years in terms of our dependence upon these types of products as we think about what is fair value. i think that is an important, critical topic with understanding why the stock can be 600 or better is that this still trades at a discount some of its same peers. and i think that as i kind of survey apple's road ahead, i'm still optimistic because of this concept of a five-year acceleration i think related to what's going to be 5g. i think everything around health and wellness less than 10% of people who have iphones currently have an apple watch. i think that that is an opportunity. and then even beyond that

whether it's services or autonomy, albeit not a television but there are other product categories augmented reality. so i do not believe this will be a $4 trillion market cap in the next three years, to be clear, but i do believe there is a clear path to 600. >> huh roger, you have been a player in and a watcher of silicon valley for quite a while. apple is a unique story in that space. i can't help but note right now we're almost a decade after the death of steve jobs, which means we spent almost as much time with apple after steve jobs as we did with apple post steve job's return he returned in the late '90s and died in 2011 now we're almost ten years past that point what's the significance you think of the company hitting this $2 trillion market cap after the founding ceo handed

over the reigns to other management >> well, jon, i remember having some conversations with you on this very program about the issue of whether tim cook could fill the shoes of steve jobs and one of the conversations that we had was about the issue that tim cook's skill set better matched the post-iphone apple than steve's did if you sit there and think about what apple has become, which is this massive manufacturing, distribution and financial organization, those were skill sets that steve i'm sure would have done fine, but tim cook really is perfectly tuned it to. and i look at apple today as a real tribute to tim cook's strengths as an executive. and when i hear the complaints, and we talked a lot about the term innovation, which i think is widely misapplied in the context of technology, that apple the ways it has innovated but on business model, on

distribution and things like that to me the great challenge that tim cook faces today is that the environment is changing underneath them. as it is for all technology companies. that all of a sudden we no longer can count on global markets being opened smooth everywhere around the world. and we have to be attentive to the probability that there will be regulations that there will be pushback of various kinds and then the market is simply, you know, i think right now not fully connected to the economy and there may be prices to pay there. and those, i think -- i agree with gene. i don't think apple's issues right now are within its control. almost all of them are external to the company >> so, gene, i want to ask you about the china risk here, of course, because you identified a lot of the innovation still ahead, perhaps the 5g phone, that services revenue which still has very good momentum, but this is a company that still gets about 80% of its revenue from china, from iphones built

primarily in china are markets paying enough attention to this, particular if you think that while tensions are rising and china may retaliate, perhaps it's just waiting to retaliate until after the election and apple is prime candidate there. >> i think on the manufacturing side it's going to be relatively smooth the way i think about the china risk, it's more about how much the percentage of revenue that comes from greater china, which is about 15%, 1-5. and so i do understand that the global environment is changing just in terms of manufacturing and apple will be making decisions in the years ahead about where they're going to be making their products. i could foresee apple making more of their products in other countries undoubtedly. but do i see that as ultimately a risk, something that is going to short circuit this path that i see to 600 and beyond. and the answer is i don't. and the simple reason, i just feel that ultimately is that the chinese government has been

supportive of apple surprisingly and we've been monitoring this since the trade dispute really may of last year and some of the tone and social media, which is heavily curated by the government has been heavily supported. yes, there is some longer term supply chain companies that all companies including apple need to answer. i believe that it takes years -- >> sorry, gene not necessarily talking about supply chain issues but you said that the chinese government has been perhaps surprisingly accommodative for apple, but that was before the president threatened bans against some of their most important tech companies. now taking aim at tiktok and potentially wechat so what i'm talking about more is does the chinese government retaliate by limiting, perhaps, apple's access in china? >> so, we had a similar analogy a year ago with huawei and some of the bans going on and there

was some anticipation as the u.s. government banned huawei products there would be a retaliation against apple products we did not see that. and i -- the contours of this related to tiktok and even what ten cent and some of their affiliations with epic games, all that, all those contours are still to be determined but i think the precedence is that china does still largely see apple as a company that they want to support. and i do not believe that it is going to be anything that is going to disrupt the supply chain because of what's going on with tiktok. i would just add this, too, is that my experience and i've covered chinese internet companies, spent time there for five years, and my experience is that when things do go awry, it usually is several layers below the surface. it is some of these nuances that the chinese government puts into place that make it difficult to, for example, provision new

factories or little things that you wouldn't necessarily see in the headlines. and those -- there is a chance that happens but i think that what we saw with huawei would suggest that we're not going to see that going forward related to tiktok. >> gene, that's an optimistic note roger, i wonder if you agree and i wonder if you think that if escalations were -- if relations were to wither, i guess, going into the final 80 days of the campaign, that it remains -- apple remains a large nuclear option should they want to go there? >> i think apple is unusually vulnerable and as you know, carl, i have been a huge fan of the stock for decades. and i have recently sold a significant portion of my position because it feels to me as though external factors, things beyond tim cook's control, now will determine the next, i don't know, 12 to 18 months for the stock i worry a lot about the markets

just being detached from the economy. i worry aton in apple's case about china. and i do think we have to pay very close attention to what's going on with epic games and the fight over the app store because essentially apple has, i would think, the least anti-trust risk of the major tech platforms but it does have a real risk and the way it is handling it so far i think is at least politically speaking very fraught. and all those things make me very nervous i think apple can execute the business incredibly well here without investors getting paid because essentially we've been getting paid for so long that we shouldn't be surprised if the stock takes a pause here >> well, yeah. the register is ringing at 2 trillion right now, so some folks certainly have been getting paid roger, gene, thank you for being with us. >> thank you, jon. >> this hour. there's more going on than just apple stock movements there's a lot still ahead on "squawk alley.

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welcome back to "squawk alley. let's turn now to retail as both target and lowe's report bellow outresults we're following the lead of home depot and walmart yesterday. guys, good morning >> good morning. >> hi, how are you >> oliver, i wonder if what we're seeing in this period changes the kind of calculus around how investors look at technology investment. for a while it seems like amazon get a pass while investing in technology because investors believed it would lead to real growth but some other companies might get dinged when they were investing in it but now it seems that's critical for everybody. >> what we're seeing here is the sbre gra integration of bricks and clicks target hit their numbers what stood out 195% ecommerce growth and using stores as hubs or fulfillment centers, drive

up, curb side pickup and reinventing the purpose of the store to integrate the whole shopping journey what's happening is america really values convenience and target has done a great job being america's easiest place to shop and thinking about physical mixed with digital and instant gratification. same day fulfillment is a big deal and customers want it all they want physical, they want digital and groceries and hard lines how they want it we're also seeing this at home revolution with home electronics doing really well, too these are all key themes and as retail continues to evolve, this whole fulfillment and stores plus digital will continue to be a huge theme. >> uh-huh. michael, i want to continue pushing on this technology investment angle and how investors should think about it. i mean, the ecommerce acceleration that we saw in walmart, in target, home depot, low's. we just had ace hardware, it seems like perhaps these companies are establishing a

track record of actually being able to get results out of these investments that they're making despite whatever margin costs there might be might investors you think or should investors give them more of a multiple because of that? >> well, yeah. and i think really the key is that ecommerce is no longer a bad word you think back a couple years ago if you mention ecommerce the idea is to short all retail. took some of these retailers a while to understand the investments in technology that needed to be made, but they've done it to oliver's point, using the stores as assets instead of liabilities again f you go back maybe five years ago the idea was if you have a store you're in trouble these companies through their technology investments have proven that's not the case so, i'm not sure what it means specifically for multiples except that i do believe that investing in technology to drive your sales and your earnings is certainly the right thing to do for these companies. >> oliver, it was interesting to

hear -- oliver, it was interesting to hear mcmillen's comments and then cornell's comments about the mix of tail wind between stimulus dollars and simple share shift away from travel and leisure into retail i wonder do we take that to mean that target believes further stimulus packages are less direly need ord what did you make of that >> yeah. it's something we're really watching because the stimulus in our view has had a strong impact of 3 to 5% or more as target speaks about it, part of their weakness was related to back to school and back to school will be a longer season. with a lot of uncertainty. so, the back to school season and as we watch holiday was an area of cautious optimism for target walmart was a little more clear in terms of the stimulus and not having the stimulus impacting the performance lately so, those are things that we're watching and stimulus interplays with

unemployment as well as consumer confidence those are all factors that will really weigh on the consumer target has been our top pick it's a top idea as well as walmart. we think they're both great places to be in this uncertain environment. we're seeing a by furcation. on the other hand, kohl's was down 20%, tough results. so what you're seeing is a transformation of retail with the malls and apparel retailers having a lot more problems but broadlines, home, grocery being key stocks to own. but that's something we're watching, carl >> right the grocery angle has been key michael, i want to talk to you about some of the other retailers, the smaller ones. of course the latest results have certainly highlighted that gap between big box and the smaller ones, more than 40 that have filed for bankruptcy this year but what do you make of say lululemon that had store closures yet shares are up more than 50% this year really have that technology piece figured

out before the pandemic hit. are there other companies out there that you think have done a good job with that that will emerge from this crisis stronger that aren't the big box players? >> well, certainly i think the bigger you are the better you are in this environment because it has enabled you to make those kinds of investments the new normal is going to be stay, play, learn and earn from home so again, i think you do need the omni channel assets to be able to do that. retail is not dead i know that's been the call for a long time, but it's more of a survival of the fittest in retail shakeouts there's really some small box retailers that are doing well. if i think about the smaller boxes, some of the auto parts retails, for instance, are doing well, grocery outlet, little of the smaller box relative to some walmart or target, doing very well but in general, i do think scale has always been important in retail and probably more so now than ever. >> oliver --

>> i would add that -- >> oliver, i want your perspective and we're just about done, but i want your perspective on something in particular and that is q4, black friday what happens to blackfriday in a socially distanced world >> yeah. >> how do the companies and retailers measure success and how do investors >> safety will be the number one priority what retailers are going to do is make sure they have enough stock of the things they're focussed on and offering strong values and really continue to embrace this digital revolution. which means curb side pickup, buy online, ship from store and giving consumers what they want with good availability and safety so, it won't be a similar black friday, but it can still be social and fun it's a cultural event. it's an important event for retailers and retailers are being flexible and agile as this is something they have never faced before we love health, wellness and beauty and stocks like p peloton

and ulta and planet fitness. >> yeah. everybody getting on these zoom calls, you have to invest in your face, right, michael? tell me what's your take on who is best positioned heading into q4, which i imagine is going to be just as crucial as ever >> sure. if we were to pick one name it would be best buy. they really do hit all aspects of the themes that we're seeing in terms of stay, play, earn and learn from home. so we think they're particularly well positioned and think they'll have a very strong back to school as a lot of college kids and youngsters are staying home to learn and are going to need to upgrade their ability to do that as well as his and her home offices and those types of work from home products. really we think it will drive a renewed resurgence in best buy's strengths. i think we saw a little bit of that in the spring but i think

we'll see even more this fall. >> i wonder if we get back to schools, back to distance learning and perhaps the second semester actually more people physically going back to school. oliver, michael, thank you >> thanks for having us. >> you bet thank you. and speaking of retail, frank hollande just got off the phone with the ceo of lowe's on the quarter and brings us the headlines from that conversation frank? >> diedra, i just got off the phone with marvin ellis and he said the company is making a shift to focus more on his pro customers. contractors, plumbers, people of that nature after a blow out q2 where the home improvement had profits 75 cents above estimates. ellison said the real focus is improving profitability. we have a large number of stores where we have lumber and building materials, dry wall, plywood on one side of the store and on the other side of the store we have fasteners, the bolts and screws you need for the building materials and the dry wall you find those things on the opposite sides of the building

something he said was very frustrating. he said that low's is now literally picking all the products that are like minded and project related, meaning if i'm buying these items and puts them in the basket, we'll put them adjacent to each other and spoke to him a lot about the impact of federal stimulus on the business it's not clear how much of an impact that federal stimulus has. there's a lot of macro factors like ageing housing stock and low interest rates that are also boosting the business but he admit you put money in the hands of homeowners they're likely going to spend it on their homes. it was likely a boost but he doesn't think it was the primary factor for this blowout quarter for lowe's back over to you, diedra. >> that's similar to what we heard from target's ceo. the commentary around stimulus thank you, frank. more on silicon valley's obsession with tiktok with the director of the world trade organization next. stay with us college more affordable. that's why we're keeping our tuition the same through the year 2021. - [student] i knew snhu was the place for me when i saw how affordable it was.

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♪ welcome back, everybody. i'm sue herrera. here is your cnbc news update at this hour. the federal government is temporarily suspending regulations in 22 states to allow pharmacists throughout the country to administer childhood vaccine this fall. officials worry with many doctor's offices closed by the pandemic, vaccination rates could become dangerously low high heat and winds are fueling dozens of wild fires across northern california in this dash cam video a driver is forced to go through the flames in napa county.

the fires forced evacuations and threatened homes as well. another dramatic dash cam video as very strong winds north of orlando, florida, yesterday pushed a truck on to its side. the driver only suffered minor injuries, thank goodness and the florida highway patrol says that's because the driver was using a seat belt. so they're distributing this video to remind everybody that that is a good thing to do you are up to date "squawk alley" is back in a minute or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. 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.

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no new u.s./china trade talks on the horizon, this while president trump continues to threaten bans on chinese tech companies, like tiktok and alibaba to just name a few joining us to discuss it all the director of the world trade organization roberto-szevedo as he he prayers to leave to become an executive at pepsico. thanks for being with us this morning. and let's start with those u.s. trade tensions where technology

as increasingly become a tool or a weapon now in some cases do you think that we are entering a new chapter where buy furcation are these two mutually exclusive digital systems is inevitable >> i think this is one big challenge that we have before us so as we enter more fully into the digital age and to the extent that we don't have truly global rules about this new environment, it is important that we avoid the fragmentation of the internet because that will come to the cost of businesses, societies in general. so, it is a danger i hope that we can find solutions. we're now negotiating rules on electronic commerce and they will deal with things like cyber security, privacy and connections. so, i hope that that is a way forward. >> right certainly the w.t.o. is working

on these rules and as you say, you would like to avoid this fragmentation. but how do you practically do so especially when the rhetoric coming out of both countries is only heating up over the last few months in particular >> you cannot ignore that a lot of these tensions they're political in nature. they're not economic it's not about trade it's not about dollars and cents. it's about geopolitics to the extent that is the case, it's much tougher to avoid fragmentation because principles like national security would be involved and this makes things a lot harder so, it's a reality that we have to confront and try to avoid unnecessary, like i said, fragmentation. >> mr. director general, good morning. it's jon fortt i wonder if some of this

fragmentation might be necessary because there are some non-political issues here, at least political in the horse race like treatment of data, where it lives, facial recognition. there are some issues that, for example, china and the u.s. have different ideological positions on that are fundamental. is it the w.t.o.s role perhaps to police some of that and say, here are the global standards for these things and bring both sides to the table >> well, the w.t.o. cannot police the things because it cannot impose rules. it sets the stage for negotiations every single w.t.o. rule is negotiated among members now, there are negotiations on going on electronic commerce and a lot of the points you raised are right on the table cyber security, like i mentioned

before, also data flows, privacy. those things can be managed from a technical perspective, but to the extent that political elements come into the discussion, then it's much harder to figure things out. but it's absolutely doable i have no doubts about that that we can come up with rules and disciplines that would harmonize the way that economies interface in the digital space. >> i should have said that and not police so i wonder what your take is on the back and forthright now about tiktok between the u.s. and this chinese company, it does at least on the surface seem to be about data, but in a future dispute of that nature, what is the role of an organization perhaps like the w.t.o. >> any organization will be

somehow challenged by political tensions when you're talking about national security. and a lot of these tensions, a lot of these measures that have been announced have been couched on national security arguments the w.t.o., for example, has so many rules, so many things we're negotiating rules on electronic commerce, but having said that, we do have a special clause in the w.t.o. that says that nothing, nothing in the agreements that are negotiated there and they're in place there would preclude members to evoke national security to adopt certain measures this has been happening more recently, more than we wish were the case, but that's a reality in today's world so members are talking to each other and considering whether some measures are or are not actually national security do they fit under this umbrella of national security

this is not an easy discussion and while members are trying to figure that out, we the w.t.o. are grappling with these issues almost on a day-to-day basis these days >> mr. director, we know that global trade was already under pressure prior to the pandemic, but i wonder if you think that covid and some of the temporarily broken supply chains sort of shocked some members into saying, wow, we get a picture now of what trade might be like if it -- or what the world might be like if trade truly went away. to that degree, was it a wake-up call >> absolutely. absolutely and i think we have to draw important lessons here, what is clear with the pandemic and after the pandemic is that international trade and diversification of supply chains is absolutely critical for the future companies now are less focussed on just in time, i don't have stocks, i don't have anything,

but i will rely on products that come on just in time to now just in case. so what happens if my supply chain is disrupted here and there? you need to diversify that now, the other side of this coin is that some are saying, okay, so we cannot rely on foreign suppliers. why don't we bring all our production inside? why don't we bring it to our national borders now, that, i think, is a bad idea it will be a bad idea because first, it will be costly second, because it would be not viable in most situations. you cannot produce everything. and third because it would increase vulnerability, not decrease because you would be exposed, everything is in the same place and if you have domestic or national emergencies, it can be of natural disaster or political or economic disruptions, then the vulnerability is still there or even increased. so important lessons here is

diversify, open up, cooperate more, not less >> i've got to ask you about pepsi. we have hugh johnson on just about every quarter. i have to imagine you had your pick of offers coming out of the trade organization, but why pepsi? and what do you think you can bring to them? >> i think the skills that i have developed will help in the position that has been reated. so, i clearly have more experience today than before on government relations and relationship with the private sector, with other stake holders, international organizations, governments this will be very helpful because most of the projects that i will be involved with have to do with not only the business itself, which is very important and pepsico is very focussed on that but also having an impact. having an impact on people and

the planet having an impact on societies, on communities, having an impact on how we handle the limited resources that we have in the world today. how do we lower the carbon imprint? how do we eliminate plastics all those things are extremely critical and those are things that attracted me. in the w.t.o. we have been working to be inclusive, to improve people's lives, to try to develop rules and disciplines to protect the environment more and more and these -- this vision of a company that wants to modernize and to be more constructive and impactful in social and environmental issues is something that i really want to contribute to. >> mr. director general, i want to go back to a comment you made just a moment ago, you said that

the diversification of supply chains is more necessary than ever countries need to open up more than ever, but hasn't the pandemic and rising trade tensions shown the opposite, shown the achilles heel of globalization and global supply chains aren't countries moving towards the opposite, particularly the united states? >> that's the point that i was trying to make that it clearly the lessons that we learned today show that what we need to do is diversify, not concentrate. to the extent that you try to concentrate everything within your borders, you are increasing vulnerability, so not decreasing you're making things more expense toif the consumers in short what you're doing is you're diminishing the purchasing power of salaries in your country if that's what you do so, it is something that it's a temptation when ever you have a crisis, when ever you have disruption of supply chains, you want to solve that by having full control of the productive

process, but that is not feasible that just won't happen it will be expensive, undoable and increase vulnerability so i suggest that what the take away from the lessons that we're learning with the pandemic is diversify more do not depend on one supplier, one country, one region even get connections and supply chains all over the world. that's the way you remain competitive and reduce vulnerabilities. >> okay. well, we wish you the best in your new role. thanks very much for coming on this morning and talking to us w.t.o. director general roberto-azevedo. >> thank you. >> as the s&p remains at record highs, one name that's sitting out the rally today in a big way is jack henry and associates the payment processer missed on revenue, projected a lighter than expected full-year outlook, stocks to the bottom of the s&p on track for its worst session

since 2008, down more than 12% esis a day after notching a frh all-time high. "squawk alley" is back in two.

another stock moving higher ahead of earnings is invid ya, having doubled in market value since march. eclipsed intel as the largest market cap of a chip maker josh lipton has more on an incredible run for invidia josh >> yeah. incredible is right, jon heading into this earnings report they have been on just a tear, pull up that chart you'll see that stock has jumped now more than 100% so far this year it's up about 15% this month alone as you mentioned with a market cap now approaching 300 billion. it easily surpasses intel. analysts say much of that credit for this company's success goes directly to ceo jenson wong. jenson is nvidia he sees the opportunity and

seizes it on and now he has big tail winds at his back its chips are used in the data center more people work, learn and play at home that results in greater demand for the cloud services that rely on its technology. two, it's chips are used to improve video game performances in pcs and notebooks, that of course is a big deal as more people are looking for in-home entertainme entertainment due to the pandemic now jenson could be ready to pull the trigger on a headline making acquisition, too. reports suggested he's interested in buying arm that would be huge it's the world's largest graphics chip maker a gpu is a processer that helps generate images and accelerate a.i. but with arm, it would become a big player in what's known as the cpu market as well that's the primary brain in most computing devices. another potential challenge for intel. carl, back to you. >> that arm issue is a big one

to me it was weird being with softbank to begin with, but arm sort of has to be this neutral player almost in the market because they supply technology and designs for so many, qualco qualcomm, apple. what would be the impact if nvidia were to have a hold of that as well >> that's a great point, jon obviously if nvidia really does pursue that purchase of arm, you would expect regulatory scrutiny and to your point there are a lot of companies that license arm technology and they would want assurances they're going to stop access to that tech if even if nvidia decides to pursue and buy them you expect jenson wong to have answers to them. i think investors today when reports after the bell are hoping for any kind of color and commentary they can get about these reports, guys. >> yeah. stock is certainly going in hot

to the print as cramer liked to say this morning, josh thanks we'll see what happens this afternoon. don't forget this afternoon as well, larry kudlow on the closing bell 3:00 p.m. eastern time on the hopes for a skinny stimulus deal potentially this weekend. we're back in a moment we're back in a moment you say that customers make their own rules.

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apple continues to trade well let's bring in chris shankar, krishi. it's doubled the market cap in value has the business doubled in value over that time >> thanks, carl, for having me what has really change is the

mix shift is toward business side i think that's why you're seeing the multiple grow. the question always couple times with investors is, a, what about valuation? the stock is expensivele valuation has always been a pushback at the end of the day, some of the arguments we've heard already, the bottom line the mix has shifted. you're seeing more services in the same unit,but -- >> so krish, what do you have t believe in apple and be comfortable with that it may grow higher. the app store disputes we're seeing, services like tv-plus,

arcade and music >> that haz really created a lot of value in that stock and i think it has the potential to create more value. so you have to be a believer in the services piece you're heading into a 5g cycle, and that would be a positive momentum for the stock, and the argument that there's a lot of iphone that are two or three generations behind could get more attractive. so those are the two big hoof hi level things to believe in everything else is additional. those are all incremental, but they're not transformational in terms of the whole line thesis, which is long-term in services, line a one-year -- from iphone 5g cycle

>> what do you make of the unprecedented challenge to the app store? if apple has to give up at least a bit in app store commissions, is there still a bold case to buy? >> absolutely. i would say -- there are a lot of litigations on around the app store for the last several years. there's a high-profile one that caught people's attention, but the customers have been suing a few years ago -- it was called the pepper case, so it if you lot it altogether, there have been headwinds or pushbacks all the way along in the app

economy. what i would say, when they did the math, app store is probably -- and 10 to 15% of eps. you want to take the worst-case scenario and the 30-day trade goes to zero, worst case, so to me that's a manageable rink. risk >> krish, what a day historic in a lot of different ways thank you. krish sankar talking apple. we did get a statement from goodyear after the president's tweets about the company restricting maga hats.

jon, one more example, it's just their turn to be the football today. >> yeah. there's a difference between -- with some companies in some cases, political campaigning, and a politically controversial position >> yeah. dee, thanks for the help today let's get to the judge and the half apple hitting $2 trillion in cap, the first u.s. company to hit that milestone joins me are joe terranova, jim lebenthal, steve weiss and -- let's