athleisure which was a fascinating trend before covid thank you so much. >> it is a interesting morning regarding the markets here and there has been no lack of news on this. it is 11:00 and "squawk alley" is live. ♪ ♪ ♪ help me get things right ♪ hook me up a new revolution

welcome in to "squawk alley. dow down for a fourth day in a row. have not seen that since february, but the dow repaired some ofthe internal damage the s&p went green the nasdaq getting helped once again by a tech trade that seems almost impossible to kill. even with invidia and the expectations last night. >> yeah, in the green at the moment we'll see where that goes. we're going to start with some controversial ipo paperwork. >> it was the ipo that was and wasn't, now it is on again it company was one of the most widely anticipated listings of the area then travel grounded to a halt

and with it airbnb bookings. revenue started to rebound by june and july bookings returns to prepandemic levels. this could be a pandemic come back story, but much still has to be written. the main question will be whether or not investors give the start-up a pass for this year air bnb had the record to even out profitability and enough cash on hand at one point to consider a direct listing. as losses have widened this year the company scaled back their more ambitious plans especially those in real estate and hotels. that could make for a leaner cost structure down the road or it could be less appealing for investors looking for that next big thing in tech. until we get that perspectives, a confidential filing is no guarantee that it will go public soon or at all here is what we do know, it's board is well equipped to take

it pup lick wiblic with some oft revered names. you have the former disney and pixar executive ann mather we also know that air bnb is one of the last sharing economies pie ne pioneers to go public. it even has bezos. he invested when ayrir bnb was worth less than $70 million. >> so to add something about this, you spoke to brian chesky not too long ago while the pandemic was wreaking havoc on

the business travel would have to come back somewhat sf is he pushing it a little bit here >> when i spoke to him a few months ago we were not at the place that we are now. back then when we saw the virus resurge he was very optimistic the company said that gross bookings have rebounded to a level where they were at the same point last year the question, though, is how does travel rebound. he was very clear on that. he doesn't think that travel is going to come back and ever be the same that he was before. he thinks that air bnb is still uniquely positioned. he thinks in a post covid world people will favor home sharing over hotels. >> yep, that's exactly his point of view so far thanks let's bring in the editor and chief of the verge

good morning, good to have you >> good to be here >> deirdre is spot on. the ipo window is perspective. customers booked a million room nights for the first time, in one day, since march >> the question is can air bnb move it's rental stock and market out of cities and into rural areas? that is what we're seeing. people are now renting houses for more than a week as they try to work somewhere else and vacation in places that are not that densely populated air bnb is one of the few economy that's does not require a city to operate. they require population density to make their population work. air bnb can just move their stock and find homeowners in rural parte es of the country the question is if the support economy is there, clean air

property managers, lawn mowers, all of that stuff has to be built around rural america like it has built up in cities. another big benefit is they have been in fights with big cities new york city doesn't want them there. they move out of the cities to places where, you know, small towns, small counties, want that tourism to flow. that is a big opportunity for them and it might also reduce their costs. >> yeah, i'm -- you're right about the battle they had with the hospitality industry, the entrenched interest in the cities they have found ways to partner with ho tell chains. i would argue they have been relatively adept at finding good ways to be frenemies with the long term players, right >> that is a symptom of the pre-covid economy. they were becoming a dominant player the hotel industry realized they

could not kill them with regulation post covid economy i think the company has to reset and offer a different kind of product nap is more or less what we heard chesky say >> it is interesting that if you dig beneath the service and what the product is at air bnb and instead look at what the assets are, they have people who have space, and people who need space. kind of a very liquid market in those things at a time when home offices and locations are in flux. fundamentally the data they have, the audience, the owners of capital they have, doesn't that make them still pretty valuable >> i think so. if you think about what all of this sharing economy companies have done is they have increased liquidity in the market. they increased efficiency between buyers and sellers they made it easier to find

supply that has worked really well for the companies, and they depend on that base of supply airbnb can just move it. you have something, you want to rent it, it is hard to find a render from around the country i think there is a lot of upside for them, but they have to be real really fundamentally considering what they're offering, luxury experiences in cities. you go to nashville, they can't do any of that any more. they have to recalibrate and say what we're offering you is space. >> i also wonder if the collapse of we work is helpful to them. now that that over hyped idea is

not around to enforce any more, does that allow them to perhaps redefine themselves and go public >> i think the question is whether or not people want to work out of homes forever, right? working in someone else's house is enough of a change from working in your own house, or vacationing in someone else's house is different enough, or if they need to build or acquire a different kind of stock. one of the challenges they will have as they expand is homeowners are buying up properties there is a boom in the housing market here. people are buying all sorts of things and they need to renovate the homes to make them desirable. contractors are on short supply. we're seeing big box stores experience sales booms getting the stock online to pivot the business model, when airbnb is not in charge of it,

will be a challenge for them >> the price of lum bber will definitely point to that then we have the pro-trump conspiracy theory group qanon. >> i understand they like me very much. i don't know much about the movement i heard it is gaining in popularity >> all right, so we have the president's point of view, i guess, obliquely is facebook getting more stringent on the restrictions they're going to put in place? >> i think they have to be and i think just to be completely blunt the president not knowing much about a group that likes him very much and is on a fbi terrorism list, that is

iffy they have to cut against the essential nature of a social network. what do social networks do they bring together people of like interests they amplify your interests. they are designed in a very direct way to create movements whether or not that is about knitting enthusiasts or conspiracy theroi stherorists facebook is not great at this but they have to start getting better >> i wonder if they're getting better because they're scale and

size is so large at this point that theydon't need spents as much as they did three or four years ago? >> they will always need advertisers. facebook managed to ride it out. they did very well they have a huge response for advertisers. but if the repetition just keeps getting bad der. the question is whether or not they need qanon supporters as a stwee constituency they make it clear that they don't think they do. >> let me push back on that just because it is fun. i know that facebook takes a lot of heat. i also know the stock is near all-time highs even though the company will say it's a tech company, it's really a media company. we know that people, in general,

say they don't like the media. regard less of what peep might say, they don't like facebook. we see that in the results maybe facebook has largely dodged a bullet here it is just a media company so of course people don't like them. >> is. >> yeah, we want to trigger additional responsibility. we want them to feel added life and responsibility whether or not you think the broad public likes or dislikes the media, the question for facebook is do they want to take responsibility they don't make it, they just distribute it. and what is their responsibility we did one in december and we're

doing another one soon facebook is just showing you things, and you kind of don't know where they came from, and a lot of times it is things you don't want to see. that has always been their issue. none of the things have turned into a essential utility it doesn't provide that utility that people love >> you know even as we talk about new school tech, i'm obsessed with that old school amply fier behind you. we'll see you next time, thanks. >> yeah, always good to with here >> coming up, the top stock on the s&p for the year so far. we'll break down nvidia's

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taking a look at shares of nvidia it has been positive at times in today's session. they're posting an earnings beat on the top and bottom. tj rogers joins us now

tj, good morning >> good morning. >> so nvidia's results bolstered by gaming. an acquisition in networking doing well is nvidia the most important chip stock out right now because of the moves it's making >> i think getting named the most important chip stock is like being on the cover of "sports illustrated. it means your next season will be lousy i like nvidia. i like what they have done a $4 billion quarter, $2 a share. worth $300 billion now one-and-a-half times what intel did. this up and down is speculation. it is not worth commenting on. i see, obviously, the gaming company, but i see their biggest thing now is that their servers

are bigger than gaming and that is the mark, everyone needs more compute everybody needs it all of the time and they're getting into it and they're taking share away from intel. if you have to pick someone on top, pick a tech company >> i said most important, i did not say best a chip engineer, raj, is joining us i wonder if what they're doing next is trying to purchase arm would that be a positive for you? would it be a negative given where nvidia is invested and where they're succeeding what would that add? >> i don't think it would be

smart. from a financial perspective they were acquired for about $32 billion. they will have to pay over that. i think strategically it doesn't make a lot of sense from my perspective. arm primarily is competing in the smartphone space this is an area that nvidia walked away from a few years ago. they decided not to get into the smartphone market and i think there would be a lot of regulatory and anti-trust issues i'm skeptical of that happening. i think nvidia is a phenomenal story. we think it is one of the most perpetual growth stories from $4 billion to $15 billion in a straight line and they are dominating ai and that will be the future.

>> the legacy of arm is very much in smartphones but they have important embedded technology in design and what not. and in the 5g area that is important, isn't it? >> yeah, it is the way to make servers and cell phones. i agree it would be a distraction. nvidia has done one thing very well they have done computing power happening on to ai and we're just at the beginning of the ai revolution today it would be cellphones, a down andbidirty business, i thin it would be a distraction for them they would divide their attention. right now getting in the server

market and having servers pass over for them their gaming business, they have all of the market in front of them that they need. they have all of their focus and they're doing a really good job at it. >> they're in a great time right now where they're market tap is at about $100 billion. intel is just over $2 billion. nvidia is $300 billion what a turn about from where we were a decade ago. which of these do you think is being underestimates the most at this point >> the rise of the stock price is just a phenomenal thing from my perspective i think it has more tail wind, more growth in front of it we increased our price target this morning to $600 it reflects roughly $2 billion

the gross margins are approaching 66%. hoping to get to 68% over time and the operating margins. i think there is positive events that are helping we have a move to the public cloud. pretty much every type of compute workload is happening in the public cloud whether or not it is the signs of computing, rendering, what have you there is a huge amount of workloads. that means analytics, speech, text, it is no longer going through basic processing that is happening. number two the computational requirements to support this level of workloads is going up massively. so the ceo on the call is saying

the compute power is going up 10x per year the last three years it went up 3,000x in terms of computing power. this combination of comeputing power and the workloads compounded by the stay at home economy is fuelling a very big growth market for nvidia and every hyper scaler is designing around it. >> so bottom line, despite or because of that run, you still like nvidia, raj, tj, thank you. >> thank you >> still to come this morning, apple, as you know, crossed that $2 trillion market cap line yesterday. we'll want to hear what byron wien says about it retirement yu want to follow your passions rather than worry about how to pay for long-term care.

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closer look when some companies list cash on their balance sheets leslie picker explains >> yes, much of what is listed as cash is not cash at all corporations are holding nearly $400 billion worth of bonds issued by other companies. the researchers poured through the footnotes of fcc filings to find that a large portion of

corporate america is running mini bond portfolios apple being known for being cash rich, but they had about $280 billion in cash but 14% of that was cash or cash like securities 42% was tied up in corporate bonds and billions in things like mortgage backed securities. the other top holders include microsoft, apple, cisco, and a trt at&t the researchers say there is little transparency over the risk levels of these holdings and the market shock earlier this year valed sorevealed somec problems since they were stuck with liquid assets.

you think this is supposed to be a safe line of cash for a rainy day, but they turn into something you cannot use at all. >> they are urging policymakers to look at how corporate cash might not actual i will be helpful as we think it is during a crisis, carl >> leslie, great hit. a great look at what is going on the s&p continues to vast late betwe vacillate between gains and losses the white house is waiting for answers to questions about steve bannon's arrest. he is expected to plead not guilty after his arrest and indictment along with three others on charges they took money that had been contributed to build part of a wall on the southern border. lawyers have filed an appeal

to delay an enforcement that years of tax returns must be turned over. they say it needs to be looked at extensive and protracted criminal activity at the trump administration anthony fauci is back home and said to be doing well after having a pollup removed from his vocal cord carl, you're up to date, back to you. getting a vaccine update from j&j >> we have headlines saying johnson and johnson is planning a 60,000 person study for their trial and their experimental covid-19 vaccine they want to start the trial by the end of september and it will study not just in the united states but other countries as well with other high virus

transmission rates the company is saying, as to the reason why, what they want to do is enroll a robust number of participants determining the safety and efficacy of this drug. this is about twice the size of the other studies being put forth right now by companies likes astraseneca, pfizer, and others as well we'll wring ybring you more as n more thank you, dom let's look at tesla. my goodness up more than 5.5%. getting really close to $2,000 a share ahead of the expected split. up more than 20% just this week. wow. stay with us

getting some response from the white house, let's get back to amon jabbers. >> that's right the white house now distancing themselves from steve bannon they say, as everyone knows president trump has no involvement in this project and felt it was only being done to showboat and perhaps raise funds. president trump has not been involved with steve bannon since the early part of the campaign carl the allegation here is that steve bannon and three other men raids $25 million for a "we build the wall" campaign to privately build some of the wall the allegation was they were skimming some of that money for their personal use even though they were telling the donors they were not taking salaries and it was being done on a volunteer basis. the president is front of cameras right now behind the

scenes at the white house. we may see reaction from him directly on camera in the next few minutes. we'll bring that to you if we get it >> yeah, the pool report has at least once quote saying "i feel very badly i have not been dealing with him for a long period of time. we're looking for tape of that response thank you. apple meanwhile becoming the first u.s. company valued at $2 trillion this week doubling it's markets cap in the past two years alone. our bank of america ann list is joining us now whamsy, what is the significance of a $2 trillion market cap? what does it say about what apple has the power to do that it didn't have two years ago >> yeah, that is a great

question, jon. $2 trillion is just a number what the company is is a platform company it is built an incredible base of very loyal users. it is looking to monetize that and it had tremendous success with that. a few years ago when the stock was in sub $200, it was extremely valuable and now looking at the stock where it is now treated much more like a growth stock the services story has become a lot more important and frankly, if being a power house of innovation that is not just on top of the license but also all of the services on top. this clearly being a revaluation. this happened much faster than i think anyone would have thought. but that said i think this is a

tremendous company with a lot of innovation >> wamsi, to me the most important strategic thing they're doing is in the chip space. developing their own chips for the mac or the acquisition of intel's 5g chip business working qualcomm out of the devices that need connectivity. are you monitoring that? what do they think of the margin if apple is successful on the chip front >> this is important gross margins at apple are probably the one thing that creates the mosqt risk in the story. that is up wione of the things f set the gross margins. if you say a 5g iphone is $1200,

or in that range, the gross margin to it should be in the low 30s. if you add $50 of incremental cost to the building materials coming purely from 5g and for wave add another $300, it is gross margin pressure. apple is good at pressuring the supply chain to work with them, lower costs, and they can get maybe $50 out of the system, but that is $50 more to overcome maybe a net 30 or 300 basis points and pressure they have to deal with when they come out with the new iphone. will they raise prices or do more vertical integration. this is where your point becomes important, right every little penny they can save on the building materials helps stabilize their growth margin. this is technology technology is a one-way ratchet in terms of putting more, more,

and more technology into a product. and yet selling it at roughly the same asp sometimes even lower. you sort of hit a barrier where you have to do other things to be able to off set pressure on the gross margin side. services are partly off-set. then you don't have the offset >> now we have crossed that $2 trillion mark we'll have to start asking on whether or not it is a sell the news event for the iphone this year wamsi, great to have you, thanks >> thank you >> later today, don't miss an stn usive can delta ceo ed baiaat 4:00 p.m. today

>> inn i ddices are a little chd we have byron wien with us to talk on the phone. >> good morning to you, i hoped to be on the screen, but it seemed to be some technical difficulties >> story of our lives, byron >> yeah. let's first talk about covid it does sound like this wheal that we're wheel that we're in, it is starting to weigh on us. >> yeah, what i'm upset about is that the economy has not developed any natural momentum on it. it is dependent on fiscal and monetary policy to keep it going. if the fed doesn't ease and congress doesn't approve additional compensation to

unemployed people, they will be in terrible troupe if is recoving very slowly it looks like the escalation in cases is causing a set back and the number of people unemployed is increasing. >> so even though daily case counts may come down in some of the troubled states, does that mean it will improve, or do the constraints on restaurants and movie theaters and retail will keep a rebound on whatever we can assemble >> i don't know what your numbers are, but it seems to me we're a quarter of the way back to where we were in 2019 and until the economy develops some natural momentum, we're not going to get halfway or three quarters of the way back until people start flying again

and traveling again we won't get all of the way back. that is probably a 2022 fee n phenomenon >> when i look at a chart of the dow or the s&p, and the recovery they have had, at the same time, main stream has been suffering are you saying it is inevitable that at some place the market stocks have to reflect what is happening on main street >> it is a bifurcated market a handful of stocks are continuing to do well. those of us dependent on the

internet for communication parts of the marketing with travel related markets, hospitality, travel, hotels, are suffering. so it is really a market broken into two parts with one hotel doing well and another part doing poorly or very poorly. >> maybe tesla is a stay at home stock. it is up this morning. ahead of it's planned stock split. does that continue to shift this rich get richer story in the way that you describe? >> yeah, sure. i think test la is worth more than all of the other auto companies in the world combined.

they can't make that much money on each car. i don't think the market is rational in that sense >> byron, your political radar is better than anyone's, i think. biden will september this nomination tonight where are you in terms of forecasti forecasting. the impact on the markets, the investors are being told all kinds of different things about a dem sweep, a senate flip, what would you tell them? >> what i am saying, what we know for sure, is that biden will push for tax increases. they will probably be an elimination of the capitol gains tax pretty much across the board. capitol gains will be treated as

ordinary income. certain regulations will be reinstalled. so my view is that earnings projections that are based on the fact that there will not be tax changing is wrong. so i think they will react to the easternings of 2022, i think they will have to revise their forecast whether or not that will cause a hit to the market is uncertain at this point. but my own view is the market is pretty fully priced at this time trump would have been better for business than biden, but i don't think biden will be bad. i don't think he will be as accommodating as trump would have been. >> byron, i wish we had more time, because we are waiting to

hear from the president in a few moments. more later with you. we appreciate it as always take care. meanwhile, take a look at shares of intel, they're seeing a pop up almost 2% well off of the day's highs. it was a lot higher to begin with after it announced a $10 billion in stock buy backs an acceleration of the existing program. we'll be right back. don't go away. you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila! maybe a couple throw pillows would help. get a strategy gut check from our trade desk. ♪

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>> the indictment of your former campaign aid steve ban non >> i feel badly. i haven't been dealing with him for a long period of time. he was involved in our campaign. he worked for goldman sach's he was involved in our campaign and for a small part of the administration haven't been dealing with him at all. i know nothing about the project other than i didn't like when i read about it. i said this is for government. this isn't for private people. it sounded like show boating i think i let my opinion be very strongly stated at the time. i didn't like it it was show boating and maybe looking for funds. you'll have to see what happens. i think it's a very sad thing

for mr. bannon i think it's surprising. this was something, as you know, just by reading social media and by reading whatever it is and by speaking to mike and all of them, i didn't like that project. i thought that was a project that was being done for show boating reasons. i don't know that he was in charge i didn't know any of the other people either. it's sad it's very sad. >> respectfully, sir, it's roger stone, it's michael flynn, rick gate, michael cohen. what does that say about your judgment that these are the kinds of people and culture of lawlessness? >> there was great lawlessness in the obama administration. they spied on our campaign i know nothing about it. i was not involved in the project. i have no idea who was i can tell you i didn't know the three people that were talked about were people that i did not know

i don't think that should be a privately financed wall. we're up to 300 miles. in another week and a half we'll be up to 300 miles of wall at the highest level. they were even having construction problems. i was reading they are having construction problems with the wall they had a small area just to show people they could build a wall and they were having a lot of problems where it was toppling over and other things we built a very powerful wall. it was a wall that is virtually impossible to get through. i didn't want to have a wall that was going to be an inferior wall >> chris didn't endorse the wall >> i didn't know about bannon's involvement. i didn't know the other people i do think it's a sad event.

steve had a great career with goldman sach's i haven't dealt with him for years now. i guess the was a project he was involved in. something i very much femt was inappropriate to be doing. >> that's the president in the oval a few moments ago as we learn more about the circumstances behind where that arrest took place. >> yeah, that's right. what we're learning from nbc news is that the arrest took place on a boat. 150 foot yacht off the coast of westbrook, connecticut in the long island sound. bannon had been working from that yacht for some period of time he's not the owner of the yat b -- yacht but the arrest was

made without incident today. as you heard, the president there distancing himself from the man who was widely regarded as one of the architects of the trump campaign and the architects of trumpism itself. also deflecting questions about what it says about his judgment that multiple members of that 2016 trump presidential campaign have since faced federal charges in one way or another for various things that they are alleged to have done back over to you >> all right i'll take it thank you. as we head to break, quick check on the markets can see that the dow is just about flat the s&p just a little bit better than flat as well. the nasdaq doing the best of the rct.t o-ir oa dsf peen we'll be right back.

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welcome back dow has gone positive as we saw obviously just a bit of a turn everything is marginal today j and j and that news of 60,000 enrollment vaccine trial and the continued expectation among j and j management that a vaccine would be available it didn't do anything to hurt sentiment today. >> yes, indeed what's the story >> john, wynn resorts is handing out 106,000 shares of stock to 240 executive offers and key

employees. 140,000 of those shares were intended to go to ceo maddox for performance base stock grant i've learned at his request the board will restrict those shares plus some. cnbc obtained a letter sent to those key employees in which he writes this year is treacherout. he wrote in recognition of the challenges we're facing and how many the company needs you to stay focussed and motivate your team, i've asked our board of directors to approve a stock grant that will vest and become your stock at this time next year this is not just a generous gesture. this is wynn resorts guarding the exits. it's a retention bonus sources say they are not worried about casino competition they are worried about other industries poaching their top

talent john, carl >> interesting look at a business that's been under pressure but still feels the need to try to retain some talent thank you. tesla almost got to 2k let's get to the judge thanks so much welcome to the halftime report front and center this hour, stocks versus the economy and whether the great disconnect that's carried your money to new highs could soon run out of steam. we'll debate your money's next move with our investment committee. let's begin with markets the dow facing for its fourth straight day of losses it's barely in the red the s&p and nasdaq have gone positive all of thi