shutdown and joe biden officially accepting his party's nomination we'll show you what he said about taxes last night you are watching "worldwide exchange" "squawk box" beginning right now. >> good morning. welcome to "squawk box." joe, what am i doing here? >> you are actually in englewood cliffs you both made the effort to do this >> me and wolff. we like it here. >> did we buy you something, kelly? >> i did hair and makeup at

home this is not an option. >> welcome to my world >> this is all i use these days. it is so easy. so quick >> amazing i'm 30 years old i'm 6'6" i look like adonis. >> you are mocking me. not a terrible mock to receive >> wolff, were you here in the u.s. >> you mean january 1, 2016 when i arrived on these shores? >> was it really january 1 >> one or two. >> you are in for another treat, i guess to see real democracy in action to have a constitution that is the envy of the world instead of 12 different parties in england, the republicans can

team up with bernie. >> you know what it is like to win the popular vote exactly, because our forefathers realize two parties could not elect the president. other people might have something to say >> in the uk, you can quite comfortably get a seat in parliament without the popular vote you are right, we have no written constitution it is hard to push back on that front. >> we have our own royal family, the kardashians. >> we promise not to gang up too much. >> i'm enjoying this so far.

i want to go back to kelly i wonder how much truth was behind it when you said good morning. based on your tone just before that >> good morning. really admire all of you guys who do this every single day do you know how much energy dom had. i'm trying to feed off of it >> he's amazing. >> amazing you are still tired, hubby is at home cursing you >> mom is over we need all hands on deck. god bless mom. >> we have three hours but we are going to hear from people if you don't say something about the market >> i very much enjoy being here. i miss talking to you. >> you are welcome any time. >> thank you nasdaq is coming off another record breaking session.

118 points higher. a 1% gain, 40th intraday all-time high here record on pace for the first win streak since early january a look at the picture this morning. equity futures higher at this hour nasdaq maybe adding 16 treasury yields a little bit of a story they have drifted up to the highs. we are back about 0.64% for the year >> also just mentioned the dollar as well higher by a quarter percent. the euro had changed direction down about half a percent after those pmis disappointed. well below july and the uk beat.

former vice president joe biden accepted the nomination with a pledge to serve all americans as a uniter and a healer. he said the first thing he would do is work to get the paean under control and mentioned his platform on taxes. >> we don't need a tax code that rewards wealth more than it rewards work i'm not looking to punish anyone, far from it. it is long pastime the wealthiest people and biggest corporations in this country paid their fair share. >> president trump tweeted, in 47 years, joe did none of those things he now speeches he will never change, just words. >> more on biden and what it could mean for your money coming up on the show

>> you guys have no delay, so i'm probably going to be the one to mess things up. it is weird. when you have three people all on delay, there is like a two or three second mandatory wait just to see it should be easier for you two today. >> i'll keep looking to wolff for my reinforcement >> we have a sports segment coming up, we are going to talk about european soccer. >> i like that feature heavily in his notes, the guest. >> it did. i was amazed there is actual viewership and profitability for some of the teams. >> including across the whole world which has a greater population than just america

>> have you ever watched the nba playoffs when you score in soccer and when you score in basketball >> people get way more excited in soccer. one nba game has all of the scores ever scored in soccer >> the euphoria there. >> plenty of euphoria even though you are in a bubble. >> you are missing out when you have 17 zero-zero ties, when you get that one goal. >> i have banged myself against the wall for hours and when i kick, it's like, i feel so much better >> sometimes in soccer, you get

a result after 90 minutes. unlike cricket where you can draw after five days all about the relative draw you can get from those moments >> management is saying now, it is not becky, andrew and joe that cause the problem it could be anybody. a california appeal's court extended the length of time uber and lyft have no with that order to reclassify drivers as employees. i don't know how this is going to work. as a result, both companies said they would continue operating in california after threatening to suspend service. extended until both companies appeal to resolve to a new time line to prepare a new procedure

including a statement by the ceos to figure out exactly what it would take. >> they could be smaller companies and they said, no. >> the wall maker's side of the bargain has caved. they didn't go right up to the deadline >> in london, it was more about did they do sufficient

background safety checks when you got right up to the point where was uber fletenning to pull out all together, they had to back down and it was this rolling extension of terms. >> you are right they called the bluff of the political class out there and they won it is hard to read this any other way. i wonder what it tells us if they have this issue on the ballot in november >> you know what is enjoyable there is that joe takes two seconds to laugh now >> do you have a car in the states >> i do now. >> you do now?

what is it >> a nissan rogue. sadly, it is a nissan. >> that's a good car >> did you drive a stick in the uk >> i did >> is the clutch on the right? >> no. >> i might mess that up. i don't think you ought to be driving on our roads stay on the other side do you got that down yet >> when we drive anywhere in the world, we have to get used to the wrong side. >> you are very international. we understand. okay >> coming up, johnson&johnson launching a phase three trial of the vaccine candidate double the

size of other competitors. two stocks on our radar. today is the last day for investors to buy shares of tesla before the five for one stock split. >> we are watching apple, closed above the $2 trillion level. we'll be right back. good morning, mr. sun. good morning, blair. [ chuckles ]

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j&j planning to enlist up to 60,000 people worldwide. that is over twice as many as other companies. good morning to you. >> what could be the take on this a sign that they could be getting better results than others >> it would work better than any other way that's not the reason they are doing a larger trial. it is not clear they'll roll up

others they may be doing large trials in other countries and regions a lot of the trials you are talking about were done in one or few nations of the world it is often the case they'll run a test for other countries >> is there a difference between these different u.s. and european companies in terms of how they are going through the necessary steps and across the sidelines that if they do get the results we can go there and

trust them >> the 30,000 patient trial including the one being developed by pfizer is a robust trial. even after these read out if they are successful likely to be an authorization used in a high-risk population health care workers. requiring manufacturers to reflect in the context it may be delivered in the framework where people get the vaccine but still will be followed this will be more of the rolling outcome after they get authorized the other good news we've seen

is the announcement in these companies. astrazeneca has enrolled about 8,000 to 10,000. news that pfizer that's enrolled about 10,000 information that these trials seem to be enrolling pretty well we look at data in europe spiking. >> i don't think we've gotten past our second wave we truly haven't had a second wave yet most with the perception that we've had one in the new york region and then another epidemic in the sun belt that looks like

a second wave. i do think we'll have a third pervasive spread likely to see the virus get into more rural regions that have been less impacted to date the way this virus spreads from not one to two people like the flu but from one to 90 people means the community is vulnerable you can host the spread and really the outbreak can happen anywhere that's what we are starting to see. >> what do you think about the colleges that are starting to reopen should they send students back home is it smart to keep them on campus, what are we learning >> i think the colleges are

reluctant to have outbreaks because of implications to staff. we are seeing some in older adults talking to college athletics, they are seeing some instances of mild carditis that was making concern of the issue of spread it is falling down in a social settings where students are going off campus and partying. on the campus, they have the ability to do testing with some social distancing and mitigation like wearing masks and trying to spread people apart. if they do that, it will enhance the campus setting >> you are saying they'll be

fine if they don't have big parties. that's just never going to happen >> it could happen people can make a decision that they are willing to undergo certain things maybe we should have universal masking. maybe you'll have to give up large parties they can enforce that with the theft expultion. purdue did that. people need to take on a concern or else we'll have continued spread >> thank you for joining us. >> i didn't know if you were going for a question there i miss read the delay there.

my apologies. >> i heard the doctor talking about football i was worried you misunderstood what he was talking about. >> even during an interview. he said it, and i thought, wolff is going to think he's talking about soccer the only thing i'll divest is we are worried about the fall here it is august and flu season i thought by now we'd maybe have a little breathing room p and i'm not really sure now. how would you know the symptoms are almost identical. it is going to be a problem.

we'll talk to him next week. coming up to stocks on the move. would you pay more than $100 for a mask one luxury designer thinks it could be the hot new fashion must have. we head to break and look at the biggest pre-rkmaet gainers in the s&p 500. whether it's over the phone, online, or in your office, we're here to listen and provide solutions that help you run your business better. because the decisions you make have far reaching implications. and a relationship with a corporate bank like pnc can provide just what you need. as one of the nation's largest banks, pnc brings customized insights and a local approach. to make informed choices now and in the future. pampers cruisers 360° fit can too with a stretchy waistband and adaptive 360° fit so they can move the way they were born to

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welcome back time for the executive edge. ross stores reporting a surprise second quarter profit. beginning a staggered reopening of stores in may company says part of the decline is attributable to depleted territory. ge has extended ceo larry culp's role working on a multiyear turn around plan. ge's share in aviation has been

impacted uk based luxury brand bu burberry has launched face masks. they cost $120 and come with a travel pouch 20% will be given to the covid community fund >> pretty predictable. >> if they become something we have to wear years and years then fashion becomes a thing i still see this as practical. i don't see paying more than $5 or whatever those packets cost >> there is a guy who makes them out in the midwest pack of 50 the value of this, joe

am i allowed to keep it? >> if i was spending like $120, i want it to be the very best air felt operation design. i don't know if we'd wear that i don't know if i'd wear that, wolff. >> the burberry one or -- >> the effective one >> i don't want an effective one, i want a burberry one >> i see you are agreeing with me there >> would you rather wear an effective mask >> we have to get to know each other better >> your tone was as if -- no maybe it was the delay

i delayed. the delays as someone send me an underarmor mask. it is black and technology looks pretty sophisticated too fur trying to run or something, you could design a mask better if you are breathing heavily so i understand that we'll be wearing these a long time if we have to start thinking about what clofr mask we need and how am i looking in my mask. >> should we be wearing masks for a month in february. >> i reckon for things like the subway, we'll be wearing them

forever more, which is common in other parts of the world i don't think you'll be wearing them in the most unnecessary times but we'll be wearing them forever more >> that's why burberry is making them >> you are not going on the subway >> if i'm going from the stock exchange to midtown, i'm taking the subway >> it still feels busy out there. everybody is above the ground, that's why >> leave the prius at home. >> it is a rogue much cooler. >> if he's going to pay for parking, the best car he needs to get to make it worth that money. >> coming up, the psychology of investing and why the robin hood trading platform

and looking at tesla, that stock cracked $2,000 a share up more than 400%. as we head to break, a look at the s&p winners and losers from yesterday. stay with us as business moves forward, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers... and deliver our products. but no matter how things change, one thing never will... you can rely on the people and the network of at&t... to help keep your business connected.

good morning u.s. equity futures have turned

a little this morning. the dow now down about 24 points, the s&p down three and change, nasdaq down about four we have phil la bas we were talg cars tesla is up. market cap, $377 billion the surge making elon musk one of the world's richest i think he's number four now phil, i can't believe you are on wolff just copped to owning a

nissan a rogue. i had to look it up. it looks sort of family to me. >> it is a fine choice there is nothing wrong with that you were putting something in a prius. >> prius is a little cache >> i'm not trying to defend it it is a temporary fix during covid. it serves a purpose. my dream vehicle one day is not -- sorry to be rude to those folks at nissan. but for now, it is practical >> it might be a tesla >> no. >> i'll take that as a hint.

>> we'll talk about as continas martin another time. let's talk about tesla it has been a fantastic week some people said it will move higher >> if you want to be part of the five for one stock split, that can happen the adjusted level happens take a look at where we are at right now, looking at $379 million that is now worth more than toyota and volkswagen combined we are talking number one and two in the world tesla now worth man.

what are the catalysts now that tesla has run up to $2,000 we have battery day coming up on september 22 what are they talking about in terms of battery service and long-range batteries end of the third quarter, start of the fourth is when they do that q 3 results early november the giga factory, by the way panasonic is adding to the nevada factory production. adding a 14th battery production line that will be a 5% more efficient than the previous one. you take a look at tesla's delivery last year and where they've been remember, tesla's guidance is to deliver at least a half million

vehicles many believe they will make it to a half million. they may fall a little short and come up with $400,000 in sales wall street believing they will hit that $500,000 mark >> i have a different question for phil what vehicle fits three car seats? i need to know >> a lot of them you know what the real challenge is, you've got to try them out your test drive is not a test drive but you've got to see. >> i'm going to do the wolff and grab something and hope it works. >> you and i had a couple of questions about the news delta

released there were some question marks >> here is the deal. i'll keep it as simple as possible delta will keep blocking the middle seat on planes through january 6. that does not mean every single seat 100% is going to be blocked. you have a family of three, they'll take up a row there. it does mean that they are going to be limiting the number of people coming on their planes, boarding the planes. the previous cap was 60% now the main cab iin could be filled up to 75% depending on the configuration there was some confusion thats what they'll be doing starting in october up to january 6. it is not a concern whether they'll fill those seats the load factor, they are

struggling to get above 55 to 60%. it is not like you have a rush of people going on to these planes >> phil, thank you we appreciate it all the advice and information the latest there he mentioned tesla one of the most popular stocks, the brokerage says it has 13 million users with the median age of 31. recently valued at 11 billion. the app interface makes it easier to invest but caused dark patterns and may lead to investors taking on morris being. with us is thomas ramsey founder and ceo of neuro's ink what is robin hood doing that is so effective and maybe pulling

people in the wrong direction? >> what they are basically doing is taking away what disturbs people when they are making decisions. to logic sense when we are using our phone when trying to make a choice people have more time to make up their minds and make a decision. >> here is the thing we talk about other apps like facebook or others they are designed to get the most out of me they are not comfortable with that with robin hood and more investing especially young people should a company not design an app that is effective in this

way or rules about how an app would work >> that is something they need to bear in mind. there are certain design principals that are good to use. other things they should be more careful such as using some kind of reward when people make a decision to invest that leads to potentially a skew in the way people do that. >> what would you say he it people looking to make the next killer investment app? does it mean kind of encouraging people to make a lot of day trades and we know how that usually ends up. >> exactly the question is how much we

allow people to make apps and investment to your average i think robin hood has come koes to nailing it but with certain things, i would be careful doing. to simplify is generally a good thing. >> do you vo an idea to how the investors would be and drawing a conclusion. >> does that spook them in an a more pronounced way and taken time to get over these things in the first place. >> one of these things you can

see is that people will be more responsive and what we see is that people can tend to be more responsive and that can exacerbate the responses you see more biases when vesting. people tend to jump on when you see an up tick and tend to hold on for too long. my concern is focusing too long in the up and down focusing on risky choices. >> we appreciate the discussion. thank you for joining us this morning. >> still to come, the business of sports and how the game will change in the covid era. a look at the biggest winners of the s&p 500 so far led by retailers l brands an target up.

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welcome back to "squawk box. the dow looking to shed 40

points at the open shares of heavy equipment maker deere are on the rise reporting earnings of $2.57 a share, more than double estimates. revenue was above forecast raising its outlook although uncertainty remains. shares up 4.5% foot locker shares also on the rise earnings better than expected. sales as well better than expected foot locker is up 8.5% >> got to figure that deere thing out. you heard what we saw about target, walmart, home depot and lowes, everything else had to shut down. consumers got stimulus checks. i'm trying to figure out if maybe the economy is not as

disconnected to the stock market as we think. why the hell is deere going so high >> i heard yesterday people are starting to buy tractor and farm equipment again. maybe they are maybe it was low expectations. >> when we look back at this, it will all be clear. >> coming up, could we see any sports franchises change hands talking to one of the top investment bankers in the sports franchise world when we return businesses are starting to bounce back. but what if you could do better than that? like adapt. discover. deliver. in new ways. to new customers. what if you could come back stronger? faster. better. at comcast business, we want to help you not just bounce back.

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cbs is seeking $5.5 million for a 30 second advertisement during the next year's super bowl according to a wall street journal report it says ad buyers are asking for a way to get out of their commitment if the game can't be played because of the pandemic obviously you would think you're not going to pay $5.5 million for a 30 second spot on survivor or some rerun. joining us to talk the business of sports during the covid era and what changes we might see, don cornwall partner at pga partners.

don, looking over your notes, one thing that surprised me, the abundance of sporting events on the horizon makes it possible that there's too much. i'm watching more sports now, i think, because i'm so happy to be back. i'm watching all of the playoffs i'm watching mlb in cities that i don't even care about. i grew up in cincinnati, but i'm watching all of them you expect that not to last. so far the ratings have been gang buster, right as we've had something to do >> they've been quite good, especially for the previous years. my concern is there's overload. you've got at the same time basketball, baseball, hockey, socker, ufc is doing a lot of

events you have champions league over in europe. at some point you can only watch so many sports the sports world tried to spread things out they try to be thoughtful about, okay, i don't want to compete about these other sports then you have the bohemoths of college football and professional football right around the corner. >> what does that mean for whether we see investments into the different areas? we saw dwayne johnson obviously, maybe we'll see some teams that are maybe on the -- some sportso the market higher valuations, lower valuations, what's in the mix that you hear as a banker? >> yes there are a few teams that are on the market. i think mets process has been well covered, but i think behind the scenes, which i've seen a

lot more of, teams thinking about their liquidity positions. the good news for major leagues here in north america is that they've got wonderful tv contracts that lenders like to lend against the leagues have been able to increase their debt capacity so teams if they need a couple extra bucks for a rainy day, today's definitely a rainy day, they can get access to that capital. that being said, they do have debt limits. the influx -- >> i'm sorry, don. wilf wants to get in in a second are people saying i want to pay less because of covid? i'm worried about what the future looks like? is there a covid discount? is it a buyer's market >> investors are trying that quick story. i was in the middle of something where an investor was arguing that, they wanted a covid discount the team owner replied, the

covid discount is i'm talking to you. you're paying me full value. the access that you can get equity to this value is where the discount is. >> we know tv revenue is fantastic and they can borrow against them u.s. sports both within them versus some other key sports around the world, is the percentage of total revenue that comes from match day like ticket sales, other merchandise at the ground higher for u.s. sports? and within the u.s. sports which one is highest of all? >> it depends on the spoert the nhl, major league soccer has the highest value. football and basketball, while their games are important, their team contracts are so large that they generate a significant amount of revenue. relative to the rest of the world, it depends. if you were to look at the top five or six teams in the english

premier league, their revenue is large. smaller clubs it's about the tv contract. >> i have a final question which i looked online. 2018 pats revenue was $600 million. 2018-'19 manchester united was $900 million and match united has listed market cap is $2.95 billion. why are the valuations so much lower compared to an nfl team? >> yeah, so in england you have a couple of teams. i would not say they are great marketers for value. you know, part of the issue is that you look -- if you dig in on the base, it doesn't look like your typical company. the other issue with premier league generally, this is why manchester united, even though it's a massively global important brand is that the cost structure is quite volatile. unlike the north american leagues, there's actually cost

control. >> don, i was going to ask you about the indy 500 my buddy mike tirico is doing it for the second time on sunday nbc. huge audience expected we'll test your theory on whether there's too much because joone k this is going to b mar sunday. thank you, don "squawk box" will be right back. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. are a major security concern. cdw can assess your needs, then design and implement a secure mobility solution using the hp elitebook powered by intel 8th generation core processors.

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wall street looking to cap off the record breaking week as tech continues to shine. restourg the soul of america. that's democratic presidential cab date joe biden's message as he closes out the 2020 democratic national convention amc, regal reopening but will movie buffs rush to the seats. we'll discuss as the second hour of "squawk box" begins right now. good morning welcome back to "squawk box" here on cnbc i'm wilfred frost along with joe kernen and kelly evans andrew and becky are off kelly mentioned we had a record close on the nasdaq.

the s&p just missed out on its own record close down 50 points or so on the dow. european markets a little bit softer earlier with some weak pmis out of the eurozone strong out of the market investors appear -- the fear appears to be fading somewhat, i don't know whether that's good or bad, as broader markets march higher even though we're in the midst of a pandemic. earlier this week the s&p climbed higher they say it was the best 100 day rally for the index. when the s&p goes more than five months without a new high, the future returns are actually stronger we'll see. still, should investors be worried given the lack of breadth. we've got the upcoming elections that supposedly start affecting

things after labor day that's what they say joining us, it's coming, whether we get through labor day or not is ryan dietrich, senior market strategist lpl financial research a lot it chew on there, ryan >> yes. >> things did get a little bit bullish according to katie stockton a, do you think we're due for a pull back. b, when do we start focusing on the election and maybe the market already is? maybe the market likes the prospects for more spending or whatever it sees in a possible biden presidency. >> well, joe, first off, you use the word focus i'm coming to you live from lpl's focus event. there it is. thanks for having me on from here you talk about it. i mean, we've gone a long time without a new high, right? you think about t. with over five months without a new high, when you take a look like you just talked about at market history, the average year gains like 9% but when you go

five months without a new high and you make one, the future returns are actually better, up 11% above average. days without new highs, we went a while. what's really fascinating about this though, it took us only five months to recover the highs. when you look at previous times under a recession, it takes nearly 30 months on average. that hammers home to us at lpl, this wasn't your average recession. i've come on with you guys saying, market looks good. this is going to be the quickest recession we've ever seen. we think the stock market is likely kind of agreeing there. >> so where are you seeing any clues as to what the market thinks about the election, ryan? i saw some green earn nernergy s polls indicate biden is up what about health care i don't know, if taxes go up on corporations, maybe the market is looking past that to

something else to trade at new highs. >> right yeah i mean, you know, that's true. if you look at some of the joe biden i guess you call it, green imagery names, those are leaning. don't forget, we might make new highs today, right how the stock market does three months before the election is undefeated since 1984 and been right 87% of the time since the 1920s. if stocks are up three months before the election, incumbent party usually wins if stocks are down, incumbent party tends to lose. we're not there yet, i'm aware if equity markets keep being strong as you can see, we had the 14th new high, there are already five new highs on the nasdaq, potentially that could be the marketplace saying president trump has the better chance than what everyone said in 2016 everyone said hillary clinton would win except the stock market more of a potential president

trump play we're not there yet. we think it's more of a coin toss than what some of the people might think with who's going to win in november. >> you in cincinnati >> i am from cincinnati originally rough week for the cincinnati reds i live down in charlotte now okay, yeah >> i was wondering i still have relatives, friends. they -- i don't know, a lot of people aren't calling them for the polls. i don't know i think they're calling some other people kelly, you have a question >> i do. i appreciate it ryan i want to ask you about tesla. i look at the chart, i'm no expert, you look over a one year basis, it's vertical tell us like unpack cage this thing. what is the stock telling you? >> i'm not allowed to talk about individual equities. i can talk about big momentum names. they're clearly stretching it. that's one of the concerns clearly there's a lot of

optimism reuters had an article the other day talked about the unstoppable tech rally inner contrarian thinks we like tech, we like momentum, we like the communication areas but it does feel a little near term frothy maybe you need to wash some of those people out here. we all know the big seven names of the s&p 500 which has made most of the gains. they also make most of the earnings we saw that once again, this record beating earnings season we just had. we think the valuations are fairly justified maybe a little rockiness like we talked about earlier with joe, new highs are not something to be fearful of they happen in bull markets. we think this is still better times ahead over the next 6 to 12 months. >> yeah. i will say, ryan, when katie stockton was on earlier and said, you know, we've had such a good move, there is some resistance, bullishness has increased. she said she wouldn't be surprised at a 5 or 10% pull

back that's when i was saying, wow, with covid, with the election, i can envision what the fundamental backdrop, the reasons we'd be citing, we'd have no problem coming up with reasons. that could throw a wrench into your notion that the incumbents win when the market is up. if there was a 10% pull back, all bets are off, i think. ryan dietrich, down in nc charlotte now. got it >> i'm still an ohio boy. >> that's not a huge navy move, cincinnati to charlotte. the reds, what are you going to do you know what i mean better than last year. we'll see. >> thank you >> still to come, amc, regal and other movie theaters starting to reopen will anyone go we'll discuss after the break. joe biden laying out his national plan to keep the ee upon my going.

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he scores! stanley cup champions! touchdown! only mahomes. the big events are back and xfinity is your home for the return of live sports. shares of uber and lyft jumped after a california appeals court extended the length of time that uber and lyft will have to respond to

reclassifying employees. the reprieve will extend until the case is decided. if they don't agree, the stay expires on tuesday next week >> but it does look like they could draw this thing out now basically to that election, until prop 22 and put it to vote -- >> otherwise lyft and uber will repeat their threat. >> of course they won they won i mean, people backed down here's the interesting thing ap 5 applies to so many other businesses than ride sharing it applies to food sharing, they hope it doesn't, but it may apply. even if uber and lyft win on prop 22, the law still applies to a lot of different businesses that have to figure out how to comply freelance writers -- it's a long -- you know, it's obviously

affecting them most directly but it's so much bigger than that. the shares, like you said, that was a full trip yesterday. they were down 8% at the lows and closed up 4. >> broke in your show. >> i was wondering about that. it was literally like 90 seconds before you guys were starting. anyhow, let's talk about johnson & johnson planning to launch the biggest clinical trial of a coronavirus vaccine to date. by late september the company hopes to enlist 60,000 people worldwide to test its vaccine candidate. that's double the size of other studies that are starting or planning to start including those from moderna, pfizer and astrazeneca. unclear why j&j is planning that the shares are up fractionally in response to that. >> amc opening 100 theaters around the country after keeping them closed for five months. if safety wasn't enough to threaten movie theaters, the pandemic is accelerating the shift to streaming

joining us on the phone for a look at how this pandemic could change the movie theater industry over the long term, cynthia littleton, business editor at variety. i guess the simple question, which is the reopening for amc 15 cents a ticket at very reduced capacity it does make you question whether it's even worth while in the first place. >> i think, good morning, yes, amc is certainly testing the waters they have every incentive to move slowly because they don't want to reopen hundreds of locations only to have to close them if there is -- you know, in a worse case scenario. i think they're bringing a little bit of show manship to it in offering a 15 cent ticket as well as taking a slow approach, which is probably wise in these conditions but, you know, as you said, this

was a sector that was very much under pressure, even before the pandemic and the conditions now have just only accelerated the pain for the exhibition industry. >> the deal that i eluded to in the intro, amc striking a deal with cnbc's parent universal studios which will allow universal to start streaming movies within three weekends of movies going into amc theaters and amc willing to accept that as the tradeoff, is that a sensible move for them short term butperhaps might be an issue long term or how do you see that >> well, that deal that you refer to in july very much seems like a landmark deal and will be emulated by other studios. it really is i think for both sides, for the exhibitor, for amc and the studios that supply the movies, it's a realistic deal that has been long overdue. the two sides, the studios that

supply the movies and the theaters that show them have for decades, there's been tension about the rules governing how movies -- how movies can be marketed in the theaters and afterwards and so this deal very much shrinks the window, which is something -- the window of excludes sie excludsivity and this deal allow amc a cut of revenue from sales. the studios will offer titles for $20 or $30 that people can stream in their homes. they worked out this agreement, it's finally bringing the exhibitors into a little bit of that lost revenue. so it's a big move for the studios. for the exhibitors it really feels like they're trying to hang on by their fingernails. >> to that point, cynthia, despite clearly the issues that the studios have faced this year in not having the big releases of movies that they put so much money into, might it prove to be

a long-term benefit to the industry, that deals like the one we mentioned have been struck and turned the tide for the modern media generation? >> oh, absolutely. and the big companies like comcast and disney, the big content producers have wanted this they have felt very much hemped in decades of tradition until the movies are released. the studios are saying we can't spend all of this money that we spend to market. a theatrical opening then have to wait 90 days or more before we can start marketing the same titles in a home entertainment release the deal that was struck between amc and universal is ground breaking it is very likely to be emulated by other studios and other exhibition chains and you just don't see how you go backwards after this even after the pandemic threat clears

>> sorry i thought joe was jumping in there. in terms of the big releases that we have seen, some delayed, some going straight to streaming, what tends to be the decision making there? why is disney releasing mulan, for example, but why is "top gun 2" delayed until next year altogether >> you know, i think it's as simple as "mulan" is going to be a family movie, the kind of thing parents might want to watch with kids, the kind of movie that might be more comfortable for many families to pile on the couch, fire up the big screen tv, make a little popcorn. that just seems like a natural for an in home streaming at a time when americans have incredible in home audio and visual setups. whereas, the movie like "top gun" maverick, a long awaited sequel that you know will have a lot of action and ariel elements, that's a date movie that you want to see on a big

screen the decisions really seem kind of as simple as that, who's the audience for this movie. is this a spectacle movie, fx movie, blow everything up in the fourth act movie those kinds of things are going to lend themselves to big -- you know, big screen, biggest possible presentations but a movie like "trolls world tour" which was a big test of the waters earlier this spring for universal, "trolls" was going to hit theaters, it was going to come out as the pandemic shut everything down. they took a gutsy move and said we are going to take this to premium vod and it did very well that was the indicator, i think, to most of hollywood that now is the moment to push through changes that the major studios have wanted for easily 20 years. >> cynthia, thanks so much for joining us >> thank you wilf, are you still planning to go to that bond movie

is that still coming out this year >> i miss going to the movie theater. i haven't been updated on that release date, but if there was -- >> when's it supposed to be? >> when they delayed it from march or april, they said later this year. i don't think they set a date. maybe they did i don't think it's confirmed if it was that, "tenant," "top gun" i would be willing to go to the movie theater. >> i'm glad you heard of "top gun. >> i've seen it. >> wilf, since it's before -- >> i know. kelly, you probably -- >> those black and white silent movies you like i can't go back to. >> tom cruise. it wasn't in black and white tom cruise when he's wearing those white -- i mean, kelly, am i right? he's something special >> there is a reason it's still so popular. >> that guy does not age >> and, kelly, kelly, you probably miss, since your kids are young, but "mulan" 1 and 2

was phenomenal, wilf i don't know what moolan you have no idea -- >> i love "mulan" 1 and 2. >> with kids >> yeah. yeah no, i'm sitting -- no, i don't have kids. i'm just watching "mulan." yeah, with them. >> very enthusiastic about it. >> did you hear what he called it he called it moolan. i don't know how -- >> no idea we pronounce many words differently as you often, often, often point out. >> that's not true that's not true. do you have any idea what it's about? it's going to be live action it's going to be great >> i understand. >> i know you're waiting for bond because you have delusions that you're somehow like him but you've got to see "mulan." >> yeah, that's why i bought a nissan. >> think about that, a rogue

anyway what's his name? what's your buddy's name who says he's never coming back? he's so good even though he's not very technicatall roger moore. the highlights of the final night of the democratic national convention and what it means for your money is coming up in the next hour. how about this, secretary of state mike pompeo is going to join us. a lot of stuff to talk about, whether it's iran, sanctions, china. that's at 8:30 a.m. eastern time "squawk box" coming right back time now for today's aflac trivia question. which former pepsi ceo currently sits on amazon's pord of directors? the answer when cnbc "squawk box" continues by my health insurance. and this is the aflac duck who helped me cover it. aflac. these are all the cab rides to my physical therapy. and aflac paid me directly to help. aflac. what he said. and this unexpected bill is from... the two-thousand-dollar specialist.

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now the answer to today's aflac trivia question. which former pepsi ceo currently sits on amazon's board of directors? the answer, indra nooyi. check out shares of farm maker heavy equipment maker deere. on the rise in pre-market trading. keirreported $2.57 a share mor than double the consensus revenue. deere raised the full year outlook although it said uncertainty surrounding the impact of covid-19 remains but pretty good quarter. kelly? >> all right again, i think that's a good sign finally something outside of big tech that seems to be doing better than expected. still to come on "squawk box," presidential nominee, joe biden's message to america and to president trump and then will

business travel ever return? a read on the airlines is straight ahead. later, secretary of state mike pompeo is our special guest. that interview happens at 8:30 a.m. eastern time. "squawk box" back right after this (music) anncr: give customers access to precisely what they want,

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campaign to build a border wall just coming hours after he was pulled from a yacht owned by a chinese billionaire off the coast of connecticut and arrested bannon and three others each face one count of conspiracy to commit wire fraud and one count of money laundering.

prosecutors saban nonand the others charged used hundreds of thousands of done nor funds to pay for personal expenses. >> let's talk a little bit more about all of the politics. we've got the bannon case. we have last night joe biden capping off the dnc delivering a speech aimed at unifying the convention the former vice president officially accepted his party's nomination for president and took direct aim at president trump. >> with passion and purpose, let us begin, you and i together, one nation under god united in our love for america, united in our love for each other. for love is more powerful than hate hope is more powerful than fear. and light is more powerful than dark this is our moment this is our mission. may history be able to say that the end of this chapter of american darkness began here tonight. >> well, did joe biden's speech get the job done

joining us now is frank luntz, pollster and political strategist what sort of is the big take away from biden's remarks last night? and what kind of response do you expect from the president, from the gop now? >> well, i was a little bit surprised that it was relatively light on issues and substance and very strong on unity and what i've not seen in a long time, likability i'll take you back to as far back as 1968 50 years of elections and virtually every time the candidate who is more likeable is the candidate who wins. i had assumed before tonight, before last night, that they would have focused on what they were going to do with taxes, what they're going to do with economic growth, delivering jobs, specifics, details, facts, but that's not what this speech was about and that's not what the convention was about it was about whether a divided country prioritizes unity and about whether a country that is

so negative and so pessimistic about current conditions, whether they prioritize not necessarily someone you would have a beer with but somebody you'd want to be with. now donald trump's campaign has been all about it takes a tough guy to do a tough job, and if you look at the advertising, that's what the message is biden's taking a completely different approach i've got to tell you from my polling and my focus groups, there was something to be said for what biden did this show is about economics, this show is about business, there wasn't much of that yesterday, but if we are going to choose unity and if likability is a priority, then joe biden did get the job done. >> so what does the president do now in response? does he double down on his message or does he shift gears >> well, i would have expected that there would have been a battle over china. i would have expected there would have been a battle over the way the economy was and is right now as opposed to what it will be.

i think that the president is going to have to show that he's better at negotiating with china, that the decisions he made are tough and difficult but made a difference for the country and that this is simply an issue of covid and a virus that will go away and what country do you want when the virus does go away it does put donald trump in some difficulty because the tougher that he is, the more likeable joe biden will be in comparison but you've got 70 days left and it is still too close to call. most of the polls show a narrowing but people are paying attention to politics. they did watch the last night of the convention and you have to give biden some credit for changing the debate, for changing the focus and that's always tough for a challenger to do >> so, frank, what's the usual bump post convention bump? is it possible in a virtual setting to get that bump

what's going to happen next week do you think republicans learned anything about how to do a virtual convention can they expect a bump next week will the tone of the convention be something that is exhausting or, you know, you're talking about being nice it probably isn't going to be that way next week i would say is there anything we can look at in the past that gives us an indication of the post convention bumps for either party this time around >> yes and you're right to say that every candidacy gets a bump in the days that follow and obviously it's the advantage of the republicans to go last. the challenge is going to be it's not as emotional when you don't have an audience it's not as powerful when you're speaking like i am right now and directly to camera as opposed to speaking to thousands of people in a convention hall and it makes you feel like you're speaking to millions of americans out there.

and the republican convention won't be nice, i don't believe i think it's going to be tough i think it's going to go after joe biden for the one thing that he doesn't want to talk about, which are the economic policies that either divide him from america or divide him from the left of his party. the challenge for biden right now and why he did such a good job last night is that he avoided talking about the specifics, which will make the viewers of your show very concerned about where the markets are going to go, about wherein vestment is going to go, about where their own money is going to go. he didn't have to do that. trump is going to do it. >> frank, you don't need applause or audience or anything when you speak for some reason, i mean, you're talking right now and i'm subliminally thinking churchill and how churchillian you are in your deliveries. i'm really not sure why. oh, never mind did you do that for wilf

are you sucking up to wilf did you see that -- >> i thought that was trump. >> of course i saw it. i'm -- you can bring out the britishness all you want when it's in relationship to him. what a legend. >> guys, the one thing i would not do and the challenge for donald trump is don't go too far. over caffeinated rhetoric at this time works for the extremes joe biden toned it down. maybe the bernie sanders bros didn't like it because it wasn't progressive enough donald trump if he speaks to his base is going to lose the center if he speaks to the people who are really strong towards him, he loses that essential 6 or 7% right in the middle that doesn't like donald trump personally, doesn't like joe biden's policies so they have to choose between trump, who they agree with in terms of issues but disagrees with his personality

joe biden who they like and that's a very tough choice. >> frank, that was going to be exactly my question in terms of you saying these speeches didn't have a huge amount of policy in them, particularly economic policy and the key word, i think, is taxes. how hard will it be for joe biden to get high turnout amongst both the progressive wing of his party, the bernie sanders fans, and the centrists? is that an impossible task to get high turnout amongst both? >> it's not. that's why i think this convention, whether you agree or disagree with his platform or whether you like or dislike, the convention was successful in towing that middle ground and not alienating people on the far left and not alienating people in the center. joe biden emerges with the unified democratic party and a message that could take him to victory in the fall. he's clearly in the lead not just in the popular vote but in the states that really do matter i think actually donald trump has a tougher challenge coming

up next week how do you disagree without being disagreeable how do you tell the american people the truth about joe biden without coming across as being bitter or playing into the stereotype that the democrats have tried to sell against him over the last four days? it's difficult. >> frank, can i ask you to also respond to the whole pandemic messaging throughout all of this joe biden also went after the president's handling to the response let's take a listen to what he said last night. >> put politics aside. we'll take the muzzle off our experts so the public gets the information they need and deserve, honest, unvarnished truth. they can handle it >> so that was an interesting way to go about it how do you expect the covid messaging overall to play into the election >> well, not only was that a good issue focusing on trump's handling of covid-19, the way that he framed it, you can

handle it. it will harken back to jack nicholson in "a few good men" when he says, you can't handle the truth. attributes matter today more than issues. there's no attribute more important than integrity and the truth. joe biden would like this to be an election over who's more candid with you, frankly over who tells the truth. and i'm not surprised that he used that kind of language the challenge for donald trump is to say we've made decisions, tough decisions that the public did not like at the time but kept americans safe. the problem is the virus hasn't gone away and it will continue to strike people down between now and the election i think the critical -- the so-called october surprise that we need to look for is the ability to get a vaccine out that americans start to get those shotsand the vaccine works and the virus starts to go away i think that's going to be

critical to the president over the next 70 days. >> what do you make of the narrowing in some polls that we've seen in the last months or so or in the predict it betting markets? do you believe that narrowing? what do you put the narrowing down to? >> i think that joe biden has a pretty solid 8 or 9 point lead rather than the 12 or 15 points that some polls had shown 30 days ago i do believe that joe biden is ahead. i do believe the challenges for donald trump are significant the democrats are trying to make this a referendum on donald trump, not his policies, not the issues, but on donald trump himself. he needs to make it a referendum on joe biden's policies because his persona is very positive and i think that that's going to be the biggest -- to answer the earlier question, the biggest bounce is not going to be in a biden lead, it's going to be in biden likability that's always a -- pre-dates moving up in the polls my expectation is the bounce will be three or four points,

which is much less than it usually is after convention. nevertheless, joe biden has a clear and defined lead as we go into the republican convention. >> this has been such an enlightening convention. thank you so much. thank you for clarifying who was over your shoulder i was like, geez, that's trump that's not that subtle always great to have you thank you very, very much. >> thank you. >> joe, who just brought you breakfast? >> someone very near and dear who does that in the morning for me, my lovely wife does that >> very sweet. >> nice. just some toast. i'd like to say dry toast but it's not you know, wilf, i don't want to go here -- never mind. i was going to say, churchill still okay over here we'd be questioning churchill, i think, in terms of wokeness he's phenomenal. >> how is he still okay? he's covered up by a box in

london, wilf 's clearly not okay. >> well, i may not agree good sign of things going far too far. he's the man that changed the course of the last century >> imperialist all of that. he is unbelievable courage he walked through and not even flinched with things exploding reminded me of robert due vol in "apocalypse now. >> more of the absurdity of things i picked up finally which i've been meaning to read, andrew roberts biography and started it last weekend. i'm 100 pages into it. >> i saw him talk about it. >> because i was reading a great article in one of the newspapers that said that biography of all addresses all of the accusations of that the best and you can really weigh up and have an answer to give people when they try and suggest that he's not a great man. that's why i'm reading it. look forward to finishing it >> i think he can be too woke obviously. thanks, wilf coming up, a check on the markets and some corporate headlines.

then what airline executives are saying about business travel are they seeing a rebound? we're going to get an outlook for the sectors. here's a look at the airline stocks "squawk box" coming right back [] [ beeping ] [ engine revs ] uh, you know there's a 30-minute limit, right? tell that to the rain. [ beeping ] for those who were born to ride, there's progressive.

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welcome back dow is weakening a little bit implied lower by 81 points here's one stock moving to the up side this morning, foot locker the shares of 3.5% after better than expected second quarter earnings sales up 19% that topped expectations and the company reinstated the quarterly dividend and will reinstate the buy back program deere and foot locker showing some positive up side. i guess positive up side is redundant. coming up, secretary of

state mike pompeo talks of china, iran sanctions and much more this interview is less than an hour away. stay with us meantime, as i mentioned, futures are sinking down about to schett 80 points. s&p down 10. back in two. right now, switch to t-mobile and get four lines of unlimited for just $25 bucks a line. with access to america's largest 5g included. that's right. unlimited and nationwide 5g for the whole family for just $25 bucks a line. only at t-mobile. and i'm here with nicole and miles and we're out to find the top looks for day one back to school at dick's sporting goods and so we want to find something that's going to grab everyone's attention the variety and selection is crazy bucket hat bucket hat this would be a fire first day fit.

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chad. your wireless. your rules. only with xfinity mobile. now that's simple, easy, awesome. switch and save up to $400 a year on your wireless bill. plus, get $400 off when you buy the new samsung galaxy note20 ultra 5g. as amy first jober, is to care for derek. everything i do is for him. when i moved to this apartment after six months, we need to connect with the world. i use the internet to keep him in the language, because that's the way to connect to my family's traditions. he has to know where he comes from. we need internet essentials. there's no excuse to not get connected. business travel brings in a lot for the airlines it's not expected to return to 2019 levels and that can depress

profits. phil lebeau joins us >> this is the real concern for the airlines you and i going on a vacation to california, that's important you want the corporate traveler. this is where the airlines generate the big profits and it's where they generate the revenues as well the general feeling among airline executives is you're looking at at least 2024, 2025 until you get back to 2019 levels as i mentioned, this is -- the concern is that it generates about 50% of the revenue typically for the airlines you have three things that are compacting or impacting the business travel right now. first of all, you have covid-19 concerns and it's not just companies saying i'm worried about people being on the road, they don't want you visiting they will tell executives, if you can do the meeting over the

phone, do it over the phone. there's few if any conventions, meetings are down and video calls are increasing companies are finding, look, you can get most of the work, if not all of the work done through a video call let's do that. take a look at the airline stocks keep in mind while we focus on the travel and demand out there, delta airlines, we were talking with the ceo in the closing bell about whether or not they're going to be able to continue to grow business with the middle seats being blocked through january 6th and then when you talk with the other ceos as well at the other legacy carriers, they're sitting there saying, okay, we've got to get demand coming back up we've got to prepare for the fact that the job guarantees end on september 30th and then we will have to be dramatically smaller airlines in terms of service and employees starting on october 1st at the end of the day, guys, you have to get the business traveler back. there is no sense from the executives i talked to, no sense at all that it's going to be coming back any time soon.

>> you answered a lot of questions, phil. we're going to talk to jeff potter who has some private air interests now after running frontier my question was going to be, well, you know, if a ceo or some senior manager really needs to go somewhere, he could go private theoretically for business travel. >> yeah. >> who wants someone coming in -- who wants to go to another problem. >> that's the problem, joe. >> you don't want to go to meet the people you normally want to meet so it's not just getting there, once you get there you don't want to -- >> correct. >> -- be near those people that's terrible. >> i have a number of friends who are in sales and the number of friends who i have who are in sales who tell me we are telling our people, your territory is this particular state, you stay in that state. i don't care if you can drive across the border, you're not driving across the border. that may change across the time.

but in terms of corporate travel, it is a very brutal market right now. >> all right you know, used to be bad enough -- salesman is coming, oh, no, what am i going to do? you don't need an excuse now let's welcome jeff potter, former frontier airlines ceo now founder and ceo of manifest, a travel club that pairs u.s. travel destinations with private air travel jeff, how is business? i'm thinking, we're driving a lot of places now. it just -- it just -- if it's a short hop, people are driving, aren't they? i don't think business travel between l.a. and san francisco is just zero on airlines now, right? >> well, i think you're right. i think to the earlier point, we're in a situation where most industries, certainly airline industry, they're dealing with a deck of cards that there's no face cards, it's all jokers. they're trying to react as best they can but i think, you know, video

conferencing certainly has an impact but when i think when we talked about is this a new normal, i'm not a believer this is a new normal. i believe this is obviously going to go on for six, nine, 12 months domestically. internationally it will have longer term implications at the end of the day, a lot of driving. a lot of rvs i think what that tells you from a leisure perspective and also from a business perspective is there's this pent up demand. i understand the position of, you know, who wants to see somebody else, but, you know, ultimately by human nature we're social business still is done in person again, video conferencing is in my mind actually enhancing the -- improving the efficiencies of business but when we look out a year from now, i do think we'll think --

see things really come back to pre-covid type levels. >> so at this point net net for private air travel, has covid been a net positive? you can see reasons why it would be but if people don't want to go anywhere, then it wouldn't be a net positive >> sure. >> which is it is business better, worse, the same >> you've probably heard a lot, read a lot, reported a lot on private air, people are gravitating that direction, but my mind, you know, that audience is still somewhat limited. corporate, high net worth individuals. some of the things we're doing at manifest on the leisure side is trying to find efficiencies so that we actually broaden the market audience. so i think net net right now it's -- you know, i think there's a lot of inquiries is private air an alternative for whether it be business or leisure? you know it is, but the price point is still somewhat

aspirational versus realistic for most people. >> yeah. and i've got to tell you, i don't want to take it here, but i'm going to now, it is aspirational even if you get a partial share of something or you want to charter something, if you're going to fly private you're trying to broaden out the number of people that can do that, if taxes go up on people making anything over $400,000 a year, don't most people who fly private, isn't that sort of a base number for people that are even able to consider flying private? i wonder if the election could matter >> yeah, i actually think that's a realistic number right now again, what we're trying to do and, you know, we're a leisure focused business we're chapter base so we start with the major metropolitan markets. we just announced last week denver, la basin and san francisco bay area but, you know, what we're trying to do is

take advantage of the shared economy but find some efficiencies that actually lower that target audience you know, it's something that's not been done in private aviation to my knowledge in the last 20, 30 years. >> taxes are going up there, jeff jeff, if biden gets elected, he stated he's going to raise taxes on people making over -- i guess you'd need the senate too. maybe it's going to be tough to raise taxes in general in a weak economy, but 400,000, i was just thinking that's your target group. i don't -- you know, in new york city, that's not exactly a fat cat. i guess it is in relation and we don't want to be -- you know, we don't want to be jaded about things, but that would affect private air travel i would think. >> certainly. >> what would you do -- are you glad you're not running frontier or one of the carriers right now? must be -- >> you know, yeah. it's a great question. you know, when i left frontier it was back in the financial

crisis, very similar to now, the situation was back then, i was thrilled to be out of the airline business but i quickly found there was no place to hide and so, you know, i went in the hospitality sector at that time, and it's very similar there. obviously the aviation and the airline industry is critical to this country's economy but at the same time so many industries have been impacted that, again, i'm glad -- you know, there's a great leadership group out there in the airline industry right now and, you know, that's one of the core components of managing your way through so, you know, they're all tested they've all been through certain situations this is 10, 20x as bad as, you know, whether it's post september 11th or certainly '08 through 2010 but, you know, i think they've managed it as best they could so far.

>> all right i think you're probably right though, jeff we all -- you know, we're all saying, what is it, a 12 hour drive? okay i can do that, i think you can do it a couple times, but then it starts to -- it starts to -- it makes air travel look pretty good maybe it's not the new normal and we're never coming back. maybe that's going to happen and we get a vaccine, therapeutic because you do appreciate flying if you do it too many times. anyway, thank you, jeff, for being with us this morning we appreciate it. >> i appreciate it have a great day. >> good luck >> okay. wilf you've got a rogue every time you step into that baby it's like, i could stay here forever in that i mean, just enveloped -- >> 20 hours from minnesota my brother drove straight to come stay, then go back home. you're right, joe. >> how long though >> what did he think >> a month, five weeks. >> i'm being told we're up against a hard break futures down 0% .3or 84 points

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match-up is set and a hopeful tone taxes, coronavirus. >> my economic plan is all about jobs and with respect to the community. >> a special interview with secretary of state mike pompeo tech tensions with china how is tesla doing

i wish i had preread that. joe can get his laugh on the pronunciation. >> stock surges above the 2,000 mark. >> did you write that, joe >> i have access to it to the scripts >> i did not do that i think somebody did, is messing with you i didn't do it and i'm sorry about that >> the hour's over we cannot tomorrow that.

pompeo notwithstanding. >> i feel like i'm hosting you and i want to be a gracious host and everything and i take responsibility for that, but anyway, good morning kelly, did you start laughing? >> "mulan" you kill me either way. you can see the difference there. >> no, you -- you had the emphasis on the wrong syllable, moolan good morning welcome to "squawk box." kelly was laughing a lot more than i was. >> why are we talking about a banana >> a sign of the extraordinary lengths with which you and your co-hort go for pronunciation anyway, there we go. >> can you -- papa johns can you 0order banana i'm sure we're going to hear about this on twitter. i'm joking around with kelly and wilfred frost. very classy.

you raise a whole level of the show, wilf i'm not kidding. u.s. equities at this hour as you can see have gotten much worse. yeah lobar but down 170 points now. nasdaq indicated down 50 and the s&p is down 21 that has gotten significantly worse. attributable to -- i mean, you know, it's on a percentage basis, not a lot we were unchanged when we started. actually up a little so i don't know what you would necessarily attribute that to although we have been weak for three or four or five sessions and there has been, you know, some -- >> earnings were good. >> talk things got bullish things got bullish, right, kelly? a little bit frothy maybe. a new high on the s&p. >> the goldman report for the start of the third quarter, they had the lowest short interest in the s&p 500 in 15 years so to your point, i mean, we've come back so strongly.

the stocks were on a role. anyway, as i've said, 185 points could be nothing more than someone decided things today are a little frothy. i'm not discounting the call

that a 5 or 10% pull back, some technicians, i'm not saying we're not in something like that do you think -- neither one of you think that the well-received joe biden speech where a lot of people are saying he buried the notion -- >> frank luntz he was just on here talking about likability might win you know -- >> joe -- >> outperformed xpectations. >> i know i get marked and eye rolled when i say there are things outside of this country that are relevant. the pmi and european markets have been slipping dollar rallying, up 0.6% now also a factor. >> no mocking. no mocking here. no mocking here. >> let's talk about what's going on last night. saying america can overcome this season of darkness, joe biden officially accepted the democratic nomination for president in a lrargely positiv speech he wrapped up the four-day

virtual convention by focusing on unity talking about uniting a country contested by coronavirus he contrasted with president trump. take a listen. >> this president, if he's re-elected, you know what will happen cases and deaths will remain far too high more mom and pop businesses will close their doors, this time for good working families will struggle to get by and yet the wealthiest 1% will get tens of billions of dollars in new tax breaks. >> so now the republican national convention kicks off next week and early voting in some battleground states is going to begin as soon as next month, guys. it's getting real, especially with the voting and the mail-in voting issues. it's going to be an early election season. >> certainly is. going to keep getting hotter and hotter uber and lyft still operating in the state of california after a court ruling handed gig workers in november. the ride hailing company

threatened to shut down service in california because they said they wouldn't be able to comply with a new state labor mandate and they are entitled to unemployment insurance and also sick pay new court arguments will take place in mid october with a final ruling unlikely now before november 3rd that's election day when the question of whether gig workers should be considered employees or independent contractors will be on state ballots. uber and lyft say most of their employees like the contracted model and they're pushing for a middle ground option >> all right as wall street sits near record levels, main street is still struggling the divergence may be due in part to the government's uneven response to the coronavirus crisis in terms of at least recently the efforts to have an additional stimulus package. steve liesman takes a closer look at the split economy. steve?

>> thanks, joe yeah, many big companies have prosperity in part because they've been able to leverage technology taking market share from smaller businesses and because they've been able to cut costs in ways governments just can't government programs may be widening the advantage of big companies helping drive down the costs of the crisis. the paycheck protection program made $660 billion available to small businesses it did a good job of getting money out the door relatively quickly. it has not targeted the areas where the virus has spread the most millions of small businesses have been hemmed along with some that shouldn't have been they were forced to keep their employees on the payroll the program awaits new funding at this time big companies are getting help from the federal reserve and the treasury with no strings attached take a look here the fed's corporate credit program has bought $12 billion but the effect is much larger backstopping much of the corporate debt market and even helping stocks

it's helped spark massive new debt corporate debt issuers pay nothing for the fed's backstop in the secondary market and have no restrictions. the fed's main street lending program has booked just 470 million in loans while these loans are interest free initially, they do carry a 3% rate over 5 years and retaining 5% the takeup has been slow because critics say it's too expensive and banks don't want the risk. the companies enjoy a much lower cost of capital in part due to a broad fed backstop for the debts. medium sized companies have to pay interest for the smallest companies, there's no money available now the money that was offered came with strings attached, joe >> trying to figure out the solution highlighted the problem, steve you know what, you can see exactly how it happened, too, can't you? i mean, it's almost like in the

response -- go ahead >> and why, joe? yeah because it's much easier for the fed to go into the corporate debt market. very hard for it to go into the small -- to really backstop small business loans you know, but you think about it, if you're going to create programs that segregate companies by size, you want to make sure that the cost of capital ends up being at least similar or the aid provided by the government to reduce the cost of capital. ask yourself this question, joe. for the next crisis you would much rather go in as a small business or as a big business that is available and potentially have the federal reserve or the treasury backstop your business? there's definitely an incentive to be created to be bigger from this response. >> it's not just that. it's who is allowed to stay open who do people feel -- there's strength in size and everything else, steve. >> yeah. >> it's almost just -- we're learning as we go along though i don't want -- yeah, next time. please no next time can we double the amount of time

between the last flu and remember 1918? let's double it or triple it. >> not the next pandemic but the next crisis, right where do you want to be? what part of that -- >> don't want one of those either >> joe, if we can double the time before the next recession, that will be 20 years. that will be pretty impressive run. >> next pandemic. >> i know. i know i'm just saying. >> next pandemic. >> let's double the time between both steve, stick around. we're going to talk about the widening economic split and the potential of a stimulus deal potential as well, what the election might do. austan goolsbee, chairman and professor at the booth school of business and glen hubbard, former council of economic advisers both join us. very good morning to both of you. austan, i'll start with you. what do you think leads to a

stimulus deal of note and size would it only come if we see worsening economic data or a falling stock market >> yeah, probably. i think for sure if you started to see a real deep return to the kind of free fall moments, there would be a little more pressure on doing a deal. i think historically this close to a presidential election congress really usually can't do anything because they're trying to just set up a series of show votes where they say, we would have been able to do this but the president or the other party is against it. and so i'm fearful about that dynamic. hopefully they can agree to something, but i think they will not be able to agree on anything like the order of magnitude of what the problem is going to be. >> glen, clearly there's a massive bifurcation in the economy as steve has outlined as

the stock market versus unemployment rates tell us that said, have the lastcouple of months of recovery for the economy been impressive? and do you have confidence that that recovery can continue without a stimulus deal? >> well, i think the recovery has been good so far but it's woefully inadequate. let's remember how many people are still out of work. small business, mid-sized business failure rates 678 we definitely need another stimulus package my fear is if we wait until we get bad data, we've waited too long i think the focus on states, unemployment insurance, again, small to mid-sized businesses is something we should be able to agree on even if the amount is subject to dispute. >> austan, i don't know if you saw our segment earlier with frank luntz. he was suggesting very purposefully the democrats and joe biden didn't take any clear positions on policy. do you think as we get closer to the election that will change?

and do you think it will be difficult for him to capture a broad coalition of democratic voters, if you will, it really nails down certain economic policies >> that's two different questions. on the latter one, i don't think it will be hard for joe biden to unite the democratic party you kind of saw that this week bernie sanders, full throated defense. centrist full throated defense all the democrats recognize what a hazard president trump has been to the economy, to our health, they're very unified i think the question of will this presidential campaign turn more in a policy direction the way some previous ones have, part of that depends on what the president does in 2016 hillary clinton had a lot of policy ideas and donald trump's approach was to say, well, i'm going to have

something fabulous for a health plan that will give you more and cost less and he didn't go into details. if the president doesn't want to get into details, i don't think it will be in a policy direction. it's going to be about who is a better person, who do you think will do a better job of dealing with the virus if joe biden doesn't have to shrink from the policy discussion, he's outlined pretty detailed plans for his economic side at least. if they want to get into that, i think it would be totally fine >> go ahead, steve >> yeah. i just want to engage glen on this.

fed programs, that money has been appropriated. we don't have to fight over it that would include main street and much of that capital is unallocated. the problem for small and mid-sized businesses is they don't need loans as much as they need equity. of course, the fed can't replace that what the fed could do is longer term bullet loans at very low interest rates and favorable terms with banks the problem is the conservatism being pushed is limiting the effectiveness of the program why the treasury, because this is the people's money, the treasury has to sign off this is supposed to be $600 billion so we're a little off the mark >> billion. >> billion with a b. >> wilf, i just want to add, if you don't think that the corporate credit program is helping the stock market, play a

thought experiment if i came on tv and said the fed is ending the corporate debt program right now and what would happen to the stock market so i think it's a major backstop to the stock market right now and the small and medium-sized businesses do not have that back stop essentially in their equity and not in their debts. >> absolutely. clearly you just have to look at spreads and unbelievably low levels in absolute terms of all sorts of data. >> great point. >> and the amount that that's been issued on glen, to that point, banks clearly have done quite a lot and they're certainly not the epicenter of the crisis this time to help those small businesses on the flip side, are there risks to their credit quality, particularly if we don't get extension of things like mortgage forbearance and eviction bands in that the moment you can be looking to the banks to try to do more but they also have to protect their own credit risks. >> first, it's not a matter of

the banks doing more these facilities are backstopped by the treasury so the banks would essentially be held harmless but for a very small piece of what they hold. yes, banks are taking big loan loss reserves already in fear of business losses, real estate losses those remain a concern for the banking sector the banking sector went into this crisis much healthier than last time. the concern in the economy is more the non-financial firms this time than it is the banks. >> austan, there was a line coming out from joe biden along the lines of cares more about protecting wealth than protecting workers if there is a tax to put on the policy sheet to increase, which one should it be that could have the best effect in terms of helping the economy and helping fairness but be the least worrying to certain voters >> well, i mean, most of the program that joe biden's outlined is not about the raising of taxes, it's about

where do you need to invest the money to protect people to stop the virus, to get more infrastructure, to rebuild and that sort of thing i think part of the pay for is high taxes would go up, back to something like historic levels on high income people and he said on big corporations that the rate should be more in the 28 range than in the 21 range. >> austan, glen, steve, thank you all very much. >> not a rounding, thank you, resounding coming up, secretary of state mike pompeo. a lot to talk to him about this morning. a new push for sanctions on iran whether china's doing its part in the phase one trade deal and that competition to buy tiktok is all ahead in a couple of minutes. next, we'll have more on the retail stocks on the move as we wrap up a big week on the sector deere and foot locker showing

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affect financial markets here and abroad we're trying to be less global,

at least some people are, wilf obviously, we're all interconnected we're going to have secretary of state pompeo on in just a little while. i don't know what is our relationship with china look like with all the rhetoric from both sides talk about a new normal. i don't know kelly. >> i'll just mention again, that wall street journal piece this week about chinese students who have to do online learning at colleges and how they're using code names because they're afraid of being picked up by chinese censors and all of this stuff. there's a lot of disentangling it does feel like the fight in schools is in some ways on the front lines of it. let's talk about the retail results. we've heard from target, walmart, home depot and lowe's with big beats foot locker is one of them it just topped analyst estimates on the top and bottom line in the latest quarter their comp sales were up more than 18% they reinstated the quarterly

dividends. the shares are up more than 4% they're still down 27% year to date though. accessories in foot retailer the buckle scoring a second quarter top and bottom line beat way above the 6 cent estimate. they saw an impact from store closures their online shares doubled. buckle shares ever are up 18%. coming up, live with secretary of state mike pompeo we're going to ask him whether it makes sense for oracle, microsoft, someone else to buy tiktok in the u.s. plus, tesla hits $2,000 a share as it gets ready for a big stock split. do the shares have more room to run after a nearly 400% gain this year? we'll speak to a top analyst as we head to break, check out some of the biggest week to date gainers in the s&p 500 stay tuned, you're watching "squawk box" on cnbc ♪

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welcome back to "squawk box. futures right now have once again come back ever so slightly we're down 140 points start of the day unchanged and we have been gradually trading down a little bit down 137 points on the dow jones. the s&p indicated down 18.5. the nasdaq indicated down just under 40 wilf >> we're watching shares of deere this morning deere more than doubled quarterly profit estimates earning 2.57 per share revenue came in above expectations and deere raised the full year outlook. the company said many uncertainties remain regarding the impact of the covid-19 pandemic on the business shares of deere up 13% this morning. >> wilf, i was digging a little more into this one

government payments, stimulus to some extent helping not just the individual payments but also the -- i think it was about $14 billion in assistance to the farm sector. to some extent factored in but the results coming out better than expected. 3% for deere. >> coming up, secretary of state mike pompeo on the issues that matter to investors here and around the world, tech, trade, relations with china and other countries. we'll have that interview for you live right when we return. check out futures as well. dow looks to sink about 134 at the open stay tuned bcx"n watching "squawk bo o cn

welcome back tesla marking yet another milestone. the stock hitting $2,000 a share yesterday. just as the electric car maker prepares for a five for one stock split. joining us now for a look at this seemingly unstoppable run and whether it can keep going higher, collin rush is managing director and senior analyst at oppenheimer. to me, do we even talk about the fundamentals with the stock? don't you look at the stock chart and worry? it's up 822% in a year.

>> of course you worry about valuation in a move like this. consolidations, what the real earnings power is on this and why investors are willing to pay such a substantial multiple for it there's a couple of things that we get grounded on that are important. first, the cash flow for the company. you know, we're looking at a company that can generate a billion dollars or more of free cash flow starting in 2021 as a scale up unit. and then given the velocity they've been ramping up facilities in china and the u.s., we're expecting them to be able to execute on this plan for expansion in europe as well as the u.s. that sort of growth can compound itself >> yeah. >> the last thing that i'll just mention, it's the competitive response we're continuing to see very slow response from other oems which is allowing tesla to take an awful lot of market share. >> they've tried to capitalize

on the high stock. they raised $2 billion earlier this year. obviously that puts them in a great position for the future. is there more that they could do yes, they're splitting the stock. that doesn't affect their capital raising ability. should they be doing more to take advantage of where the stock price is now >> you know, it's really about the purpose for that cash. given what we're expecting from the operational cash flow, we need to see more from them for a real purpose for that. the company historically has tried to run the organization relatively clean from a cash perspective to keep everybody focused. you know, the things that we would look at for them is, you know, potentially expanding the insurance business where they have an enormous money data that can leverage its products for the customers and so that would be a use of cash additionally, we might see them, you know, offer up additional financings but given the availability of liquidity across

major markets, i don't see the need for tesla getting into the financing business. >> what do you think about what they make from basically being the emissions meter for other car companies in a sense raising money that way is not necessarily core to, you know, manufacturing profitable cars at scale. >> no. and that's the short-term opportunity and one that you can model in and it's found money within the model i think the important thing for us is the focus on being better, faster, cheaper than the competition. there's a number of technology areas where they have key areas, one in battery technology, second in the power train technology they've been really out in front in terms of leveraging the power in those batteries and to the very effective mobile and propulsion the third is about the data they're collecting from their adas solutions with the cars out driving on the road. they have an order of magnitude

more vehicles on the road collecting data for autonomous driving and that helps them bring functionality to market. >> bring us up to speed on what their plans are. i saw there was another autonomous technology update a lot of people are watching to see just howfar tesla can go i this space, especially with the future of ride sharing somewhat in question because of their economics of the business models it seems like we're still a very long ways away from self-driving cars but what can tesla now accomplish >> you know, so i agree that we're years away from fully self-driving cars on the road in volume, but what we can do is see an awful lot of augmentation of driving they're offering, you know, hands free driving where the driver is really the backup in cities and being able to have stop light recognition, stop sign recognition, lane change in urban areas is a very big deal in terms of functionality. it uses a lot of commutes and congestion particularly as folks are using less public

transportation for a while. >> what do you do with the stock at $2,000. i see you have a $2200 price target that seems crazy we were under 200 like last year >> you know, in january i took my price target up over $600 and that felt like a major move. so for us i think you kind of ride the momentum here and protect yourself we do see up side near term to the stock to that $2200 number, but i think in that sort of market you have to be practical and protect yourself with some puts or call depending on how we're playing the stock. and incremental buyers so i am still bullish on fundamentals as well as -- >> what is it now, the tenth biggest stock by market cap in the country? that's crazy >> colin, do you have any

analysis on what buyers' average in price is and any kind of fears, perhaps, that if we see a 5%, 10% pull back that could lead to a much, much bigger pull back because people will think, well, i've gained a lot on this, there's no reason for me to risk, you know, trying to ride it higher? >> i think we already saw that after the quarter. the stock reached out to $1800 and consolidated down at 1400 and then really started picking up momentum again after they announced the stock split. so i think that consolidation on some of the traders happened a few weeks ago. i think what we're seeing partially now is new money coming into the stock. >> to that point you're not worried that the stock split actually materializing could mark the sort of buy the rumor, sell the fact type of thing? >> we've got an expectation that 10% of the shares are needed to be bought just to get started on the s&p 500. you've got that as incremental

buyers if you look at in disrupting entire transportation market which tesla has the potential to do both on passenger vehicle as well as on delivery and heavy duty, there's still a potential significant amount of growth in market cap for them to go. obviously we're giving them a lot of credit here at current valuation. it's the sort of thing where there's very few names to buy if you're looking at the disruption of the transportation market with companies that have actual experience and transportation on the road tesla is the clear leader here. >> all right colin, a pleasure. thank you, sir appreciate talking to you. colin reusch secretary of state mike pompeo live on the latest china tensions a new push for sanctions on iran and very much more "squawk box" back in a couple of minutes. don't forget to subscribe to our podcast. you'll get interviews, original content, and behind-the-scenes

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>> the reports now on the dow. it's a session, the plea-market session. went along we were down almost 200 at one point. we've paired some of those losses the nasdaq continued to do well with technology. wilf, what else are investors doing today? do you have any idea >> do you know, i might have a couple of stories that people might be talking about today,

including another strong housing market number. >> let's hear it. >> expected later this morning when the national association of realtors releases existing home sales for july sales jump 14.2% following a nearly 21% surge in june pfizer and german partner biosplts -- biointech could be there to help. kulp became ceo of ge in 2018. he's dealing with external issues including the impact of the aircraft business. that stock is down 1/3 of a percent. >> all right we're about 45 minutes now away from the opening bell on wall street let's see. what can we do

dom chu. dom chu joins us now for a lo look -- can you see my two co-anchors. >> i'm smack dab in the middle of them. i have wilfred 20 paces, 60 feet, 20 yards that way and then kelly evans is about we'll call it roughly the same amount that way, 20 paces, 60 feet. >> not breaking any social distancing rules. >> no. we're incredibly distant. >> there's another set here. it's far enough away. >> joe, you should come if we're all going to be here >> i think basically we've just proven you can make it in every day. there's no rule breaking >> hey, i'm -- i go to the nasdaq it's been loathe for me to come out there. >> right right. you're assigned. you're assigned. >> but i have to wait to go to

the nasdaq because i was out somewhere where i couldn't -- that's the only reason i'm here. i hate this delay. >> you were in like a -- >> it is what it is. >> you were in a quarantine state or whatever? >> which -- in new jersey and new york i think there's 48 states if you go to you've got to be -- aren't there what's the list? there's 48 now how many states are there? 50 57 someone once said. >> we don't take vacations anytime soon out of the new york, new jersey, connecticut area. >> who would ever need to. >> i have everything, i have kelly, wilfred, i can see joe on the screen everything else. to your point, joe, i'm going to move on because i'm sure our producers are asking me to move on right now let's kick things off with the morning movers we're going to show you shares of deere right now first of ll this is the biggest maker of farm equipment, agricultural equipment. up 3%, pre-market volume it hit the quarterly trifecta. better than expected profits and

sales and boost the full-year forecast i did couch things saying there's a little uncertainty around the impact of the covid pandemic we're watching those shares. then you've got, wilfred mentioned this, pfizer which is up a percent dow component. 150,000 shares of volume it along with its german partner biontech, they see positive data trends and we're watching those shares up a percent we'll have an impact on the dow. then wee're going to end on shares of foot locker, racing 5%, see what i did there, 300,000 shares of volume athletic apparel retailer is catching a bid and better than expected profits and revenues. helped along by 19% jump in sales growth at established store locations. i should mention foot locker reinstating the quarterly dividend after it suspended it temporarily.

wilfred, joe, kelly, those shares up 5% i love the fact that we just had that nice socially distant interaction just now >> i agree dom chu, thank you so much. still to come here on "squawk box," the stocks on the move that you need to know about. further stocks you need to know about and secretary of state mike pompeo. flexshares may look like other etfs. but inside... there's advanced research, modeling and refinement. constructing funds that don't simply follow an index. but explore new terrain. helping you fill portfolio gaps. connect to client goals. and strengthen confidence in you. flexshares. powered by over a century of investment expertise. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more.

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secretary of state mike pompeo is in new york city today to formally inform the united nations security council of the restart of some sanctions, snap back sanctions against iran. these are related to the 2015 nuclear deal with that country america says iran is in violation of the deal. as you know, the u.s. itself

abandoned it two years ago secretary pompeo joins us now. he's a trooper we persevered, mr. secretary it's good that we finally have you. i think it's zoom at this point. it's good to see you thank you for hanging in there with some technical difficulties anyway, we'll get to the iran sanctions in a moment. first i want to ask you about the latest with china. the u.s./china trade deal, phase one. the prospects for phase 2. then i want to ask some additional -- get some additional color on whether we ever have good relations again with such an important trading partner given the rhetoric on both sides where is phase 1 >> thanks for having me on i'm glad we were able to make it work good to be with you all this morning. as for the phase 1 trade deal, the chinese had some of the work they need to do on purchasing, they committed to fulfilling that obligation. there's a lot of obligation that goes far beyond purchasing american products.

there's a whole other set of chapters associated that we hope the chinese government will comply with them they promised us they will we'll have to wait to see what happens. as for the follow on, there's not a lot of prospect at this point but i hope the chinese communist party won't conclude you can't keep destroying american jobs, this is what the president has been focused on on this trade deal. we are always ready to sit down with them and work our way through a deal that's good for the marne people. >> do you have -- do you have a prediction on what finally happens with tiktok and what exactly that means, if it is sold in the next few weeks >> i do have a prediction, i predict that tiktok will no longer share its private information that belong to the american people with the chinese communist party. i'm confident that they won't be doing this when it's over. i don't know how it ends, i don't know what the conclusion s but the american mission, the mission of our national security team is to make sure that america's private information

isn't compared with the chinese communist party and its intelligence services, i promise you when we get to the end of this that won't be happening. >> just getting down to real brass tacks then we will get to iran and i know my colleagues want to ask some questions, too, mr. secretary, but will we ever have a relationship with china that both countries would like to have with the current regime? you have had such tough talk, given tough speeches and there is no reason to think that the ccp is going to really change its stripes, i don't think are we in a permanent sort of a cold war with china at this point that's going to last for years and years? >> the problem isn't my speeches or the president's efforts, the problem lies with the chinese communist party. this has been decades of americans turning the other cheek, not doing what they needed to do to protect the american people, the previous administration just simply refused to tackle this problem from china

we have taken it head-on we continue to work to try to find a way forward in the end the chinese communist party will get to make that decision, to date they have shown no evidence of the central understanding that if you want to be a world power, if you want to participate on the global stage you can't engage in the kind of predatory economic activities that the chinese communist party has been engaged in for far too long and we are not going to let it happen on our watch. >> how do you -- getting to iran, why now for the restart of all the sanctions that the previous sanctions, why no support from europe? i mean, i can cynically figure out why, i guess, but you say behind the scenes you have a lot of support in the middle east from some of our friends there and maybe even, you know, no the so great friends, but no cooperation from europe. why not? >> you will have to ask the europeans that i have not had a single world leader or one of my counterparts tell me that they think it makes

any sense at all for the iranians to be able to purchase and sell high-end weapons systems which is what will happen on october 18th of this year absent the action that is we took at the united nations yesterday, president trump is determined to not let them have a luke clear weapon, no the have them have hundreds of millions of dollars of wealth from selling weapons systems. just this year this is the regime that shot down a commercial airliner. first they denied it, then they said they did it, then they wouldn't give up the black boxes. this is the largest state sponsor of terror. we are not going to let them in october of this year as secretary kerry did and you his foolish nuclear deal allow them to begin to buy and sell weapons in a handful of days, thank you's just nuts. >> mr. secretary, good morning to you, good to see. >> you good morning. >> i want ed to go back to tiktok clearly the focus has been on tiktok and huawei before that. i was wondering why exactly the level of focus on them is it because of stock-specific,

management-specific things that those companies that you don't trust or should we connect that if any chinese company gets to that scale of penetration in the wrn world, in the u.s., that they would also starting to into the phase where the u.s. would want to try to ban them? is there any chinese company that has that sort of reach? >> that's a great and important question we haven't focused on any particular company, we've focused on technologies and the chinese communist party. our focus has not been to go after any chinese company because of their commercial success, it's been to go after chinese communist party entities or commercial entities being driven by the chinese communist party that present national security risk to the united states of america. so your question says will there be other companies that follow i hope not i hope the chinese communist party will disconnect and not operate the way they do but through the extent and i anticipate this will be the case that they continue to demand that every state-owned enterprise, every chinese company is beholden to his

security apparatus we will continue to go after them to make sure the american people have the security levels that they have and expectation with respect to not only technology firms but every company operating here in the united states. >> mr. secretary, there is a lot of talk about obviously not just selling the u.s. part of tiktok, but it tends to be reported as plus canada, plus new zealand, plus australia and that those four countries exposure of tiktok would be what is carved out and sold off why those four countries if it's five eyes why isn't the uk part of it, if it's nonchinese u.s. allies why isn't europe part of it? >> i appreciate that look, i don't want to talk about the commercial transaction, i want to talk about protecting americans. so that's our effort our effort is to make sure when you have networks, you have information that passes a i cross international networks all across the world, we are attempting to identifywhere those risks are, where these unterroriu untrusted vendors might operate

and take that down that's the mission set in our conversations with tiktok, our conversations with every chinese company that is connected to the chinese security apparatus your listeners have to know this is a serious effort, this is a serious risk and president trump is serious about making sure we protect our information, our networks and the american people >> mr. secretary, you are busy, you probably didn't get to see a lot of the convention, i don't know if you saw vice president biden's speech last night, but just as an american i'm trying to figure out if joe biden were to win the presidency what happens with the sanctions do they go back off? do we try to resurrect that deal that the europeans seem to want to cling to that we had with iran what happens with china? what should we expect? although, as you know, have they mentioned china at all during the convention i'm not sure where they stand on that regimes do change. what would the future look like,

do you think, mr. secretary? >> i will just take them at their word they will completely ignored the threat from the chinese communist party not only during their convention but for the eight years that they were in office so if history is a predictor of how they will behave the chinese communist party into welcome the departure of the national security team around president trump. we can do what we can do on our time and service, time on or watch. we will keep after it. >> what would you foresee in terms of iran? >> yeah. >> that's not salvageable, is it >> it's the right question i can't imagine that it's not salvageable not because of anything that we did, it's not salvageable because it is a regime that's engaged in terror for 40 years now, this is a regime that continues to build out it's nuclear capabilities, this is a regime that improves its missile program even during the time that this nuclear deal was in place this is a regime that threatens europe, it has conducted dozens

and dozens of efforts inside of europe to kill people. i hope the europeans, i hope the whole world will come to see it's not enough to say, boy, you wish the arms embargo were extended but to actually take actions that will deliver security outcomes for their people i can't imagine any administration that would see it any different from president trump with respect to securing the american people from the threat from the islamic republic of iran. >> let's look at the flip side, let's say the president wins reelection, what should china think about listing companies here or ipos or alibaba or any of the other -- huawei, what do we do to ensure that we have chips and materials from taiwan? i mean, do we become closer to taiwan they wouldn't like that. >> this is really easy if the trump administration has four more years the chinese communist party should begin to behave like a normal nation with respect to their economic activity around the world.

they should allow the united states to invest in china on the same terms that chinese companies can invest in the united states, they should conduct trade relationships in a way that are fair and reciprocal, put tariffs on that are balanced and even. this he shouldn't steal our stuff, jobs from places like my home in kansas where manufacturers invent great things, and then the chinese communist party rips them off and then turns around and sells them back to us in a subsidized way. if we are on watch for four more years we will continue to rj the chinese communist party to simply engage in economic activity on a fair and level playing field, that would be a good outcome we think it's a great outcome for the chinese people, we know it's the right outcome for the american people. >> mr. secretary, once again, thank you. >> thank you. >> thanks for working with us, thanks for the perseverance. >> you bet. >> it was worth the wait all right. >> no worries. >> we hope so see you soon okay have fun at the u.n. you got that going for you anyway, a final check on the

markets, quickly as you can see we're down less than 100 points now on the dow, down about 96, the s&p down 13.5, nasdaq down 7 or so. take a quick look at europe, we had which wiilf on the show tod. kelly, wow, all the way at ec. >> i will see you a the 10:00. >> we will see you soon, it's 9:00, make sure you join us next week have a good weekend. "squawk on the street" is next ♪ good friday morning, welcome to "squawk on the street," i'm carl quintanilla with scott wapner and leslie picker as jim cramer and david faber have the morning off. futures are red, although the s&p and the nasdaq are shooting for their fourth week higher and the dow only needs a couple hundred points to join them. it is busy for an august friday as the market watches for sign