it's 5:00 a.m. at cnbc global headquaters and here's your top five at 5:00. call this a tale of two markets. big tech keeps going up and both stocks are going down. which one ultimately wins out. a scary scene in the gulf of mexico two storms converging on texas and louisiana. thousands forced to evacuate potential cost and impact to america's critical infrastructure next. >> on the fast track, the fda giving a green light to a well-known covid treatment even though some in the medical

community pushed back. call this a red carpet alert the first one in months as movie theaters continue to reopen. and later, more than 800% return on a $400,000 investment it has nothing to do with the stock marketment all of that ahead on this monday, august 24th and this is worldwide exchange right here on cnbc. >> we are ready to play. brian sullivan good to see you on this very busy monday morning. thanks for joining us. they're setting up their day and their week and they are setting it up strong or on that big graphic right in front of your face stock futures are solidly higher dow futures up 215 points right

now. overall you know the headlines they say stocks keep going up. that's only half true. big cap tech keeps going up. the only sector to close those stocks as we well know by now are so big look no further than apple apple ending last week up 8% taking it along for the ride but the majority of the market is actually going down last week but when you got the biggest of the big going up it doesn't matter powers the indexes higher. we'll talk more about that in a couple of minutes here the bond market is not moving. the ten year yield trying to move around last week and it stands right now at .64% around the world you have green arrows in asia overnight a mixed picture in europe's early trading. it's actually not mixed at all in fact, it's solidly higher i stand corrected. germany, the u.k. and france all up more than 2%.

the asian markets powering higher as well remembering it's not just our fed that has been contributing a lot of money in stimulus u.s. central banks around the world cutting rates. many are negative and throwing a lot of money at the market and it's paying off on this monday we have big news from washington and the fight against the covid-19 pandemic. bertha is following that story and much more for you on this monday morning good morning. >> good morning, brian that's right the fda authorized emergency use of convalescent plaza for covid-19 those that received it from recovered patients within three days of diagnosis, they benefit the most from the treatment. the news coming as the president

reportedly waves granting coronavirus vaccine approval before a phase 3 clinical trial even as early as next month. they're reporting the vaccine being developed by oxford and astrazeneca is the front runner for possible approval. outside of the pandemic, the wall street journal reporting it was facebook's zuckerberg that stoked fears about tick to be. the chinese owned company does not share facebook's commitment to freedom of expression and represents the risk to technological supremacy. interesting move if true >> let's get down to this.

stocks rallied on the close. the s&p 500 ended at another record high. the index posting it's 4th straight week of gains but keep this in mind, the breath of the market, how many stocks are going up versus how many are going down has grown more narrow and more negative as of late in fact, despite the macroheadlines, 70% of the s&p 500 actually declined last week. but does it matter we'll talk more about this and more with the chief market strategist victoria, good to see you on this monday. it is a good question. the headlines say the markets are going up most stocks are actually going down in the last few sessions. what do you make of it >> it's as you mentioned earlier. we have this hand full of stocks driving the market at this point in time and the problem is that that's not going to stop i know that everyone is looking at the numbers that you're talking about.

they're looking at all the rest of the stocks in the indices and wondering when they're going to catch up but as long as we're in this same situation that we have been in. as long as we still are having shutdowns across the country, as long as we're still not having people go back to it this month you'll continue to be higher they change the way they interact as well and we'll continue to see that but it's an opportunity to trend some of the names you have on the portfolio and look at the rest of the names lagging behind and build more of a bar bell approach within your portfolio. >> all right i'm looking at -- you say you're trimming some of your technology holdings and buying some of your

staples there, victoria, what have you been trimming and why are you buying a spice maker by mccormick. >> you mentioned apple we're trending apple and some of our microsoft names. we're still overweight tech as a whole. so trim some of that and take a little bit off the table. >> all right taking a couple of hits on your feed they going to call you on the

telephone. so we'll get a phone interview right after the break. when we come back, the latest on the twin storms bearing down where victoria is. she is in houston and texas and the gulf of mexico region there right on target. something could happen that has only happened a couple of times in more than 100 years with the weather. we'll tell you what that is and the risk to the oil and gas business plus much more on the president's coronavirus vaccine before november and how politics, yeah, politics, may be playing a role and later, would you go to the movies right now they'll tell you how it's going in cities that are reopening dow futures up 201 we're back after this. ♪ you should be mad they gave this guy a promotion. 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,

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let's get more now on the serious situation impacting millions of people in the gulf of mexico. tearing through the caribbean over the weekend now marco briefly became a hurricane with sustained winds of 75 miles per hour before being downgraded to a tropical storm laura is bigger and expected to become a hurricane before making landfall in texas or louisiana on thursday. there's the track but it has been very fluid. right in the path of the twin storms about 44% of all u.s. oil refining capacity that includes 50% if the storm moves less.

also 15% of daily us. oil production. this will only be the third time that two tropical storms were in the gulf of mexico at the same time the last time was 1933 and 1959. much more on that story throughout the morning as well oil is not moving that much right now. how come number one inventories do remain high enough and demand expected to drop by as much or more as any production comes off line because folks will stay home and likely to shutdown largely for a couple of days w wti crude up just 36 right now

you are a houston resident by the way. what are you hearing is the possible impact on the oil and gas infrastructure where you live you have not one but two storms barrelling in. >> absolutely. it's unprecedented for us. and obviously they take the precautions they need to take bringing the people in from offshore it could be a big hit for us we looked at the last one that came in. that didn't do such damage because we didn't have as strong of a wind as we could with these two storms these are going up to hurricane status storms so we have to be prepared the key is that the demand is lower because of covid so that might help support the price of oil as we go through the storms

and everyone is getting ready for the worst case scenario. >> i watched the refineries take on water and i was shocked at how fast everything drained out. you had 6 feet of water on some of the highways. a couple of days later the water receded and everybody is back up to business. i think we learned a lesson. on that note, victoria, you mentioned that you were trimming an apple and buying a spice company like mccormick have you dipped your toes in the investment waters of oil and gas at all >> we have not that's still an area that needs to make a little bit more progress what we're doing is instead of looking at utility name, that's an area when you look at some of the components that are coming into the market. because of the fact that here we are 100 degrees in houston and

we think maybe more utilities instead of oil and gas at this time. >> yeah, you and everybody else still not investing in the oil and gas track as we're seeing pictures and animations of the storms so 2020 just hasn't been bad enough, now we have to deal with two storms in the gulf of mexico stay home. stay safe this time for a multitude ofreasons. thanks for joining us on cnbc. >> thanks, brian >> all right take care. all right. on deck, the numbers are in for the first hollywood movie in months to come out in theaters we'll check in with one theater ryarmeor that had to make so ve hd decisions. stick around

the nasdaq up 115 points right now. so anybody out there waiting for this market to maybe rollover, well, today looks like it's not going to be your day record gains powering likely more record gains. one of the strongest mashltrkete

have seen in a long time we continue to track the path forward they reopened their doors in some areas with a rare commodity. a new hollywood movie. it's called unhinged starring russell crow and brought in $4 million. a success by some measures but it remains unclear if audiences are ready to leave their home and sit in a room for a couple of hours with a bunch of strangers. according to a survey, only around 17% of consumers feel comfortable going to the movies right now. 25 theaters across six states. only three of which are operational over the past weekend. good to check with you again i'm sure that you have a hollywood movie. a couple of theaters open in colorado and virginia. one in connecticut as well how did they do?

>> well, they did pretty well considering this time of the year in august is go away time so it's normally pretty slow i was encouraged we did very well with it considering and also the weather was beautiful in the northeast and colorado where we have our lonely theater out there in connecticut i spent the weekend at the theater talking to people asking the very question what made you comfortable enough to come back and they said that they heard about our nationwide protocols issued by the national association of theater owners and they felt some assurance that it would be safe to go to the movies in connecticut i had people coming from new york new jersey, long island, it was pretty interesting. >> i'm sure that they were all or at least the ones you were at were masked up they seemed to be enjoying themselves were they able to do it even with the masks on?

>> they did. when you're sitting you can take your mask off. there's nobody around them within a radius of six feet so i think everybody was very comfortable and i heard some comments that they just felt very safe and thanked us for providing the experience again >> everybody is going to be looking at this movie as a benchmark. when i watched the trailer last night. to be perfectly blunt i had never heard of it. maybe not the right movie at the right time >> i think that somebody had to go first and i'm very thankful that an upstart studio that released unhinged was the first. it was very brave of them to do without having the number one and number two markets open. it's very tough for a movie to release. we'll see what happens the big test is going to be over

labor day with the movie tenant. >> yeah, that one a much, much larger release probably much more of a test what about the status of your other theaters what are you hearing from state governments? in new jersey the restaurants are giving no guidance about when you can actually dine in. are you getting guidance from governors in states where you are not allowed to reopen? >> unfortunately, no new york, new jersey, maryland remain strong holds in keeping theaters closed. i am the president of new york state and we have been working very hard with the governments office, the budget director to try to get guidelines and get theaters in new york and l.a. open basically, i fear that the rest of the film releases are going to fall off the calendar and get pushed either later into the year or next year even worse. >> why can't they give you an answer has anybody says here's what we're waiting for? here are the numbers

that's what is confusing restaurant owners that i talk to in new jersey are not getting any guidance they don't have any idea what the metrics are that are supposed to occur for them to be able to reopen everyone says we're consulting with health pexperts. well, of course you are but have you been given any guidance about what we need to see to get back open? it has to be incredibly frustrating. >> not at all. we had an interesting dialogue back and forth early on in april, may and june and once announced they would be part of reopening we heard nothing and we have been lobbying to try to get assistance from the governor and also we had a failed attempt at a lawsuit in new jersey the judge didn't want to rule against the governor in the time of the pandemic to get theaters reopened and maryland, hopefully maryland and new york we'll get some action this coming week

>> businesses just need guidance thank you for joining us once again here on worldwide exchange we appreciate it. >> thank you >> all right still ahead, we're going to speak with one long time apple stock bull with maybe even another reason to love that name as it has a more than $2 trillion market cap. plus, from a reporter 400,000 to a confirmed 4 million. the return one trader got on a key investment and we're not talking about tesla orbit coin, we're back dow futures up 201 hike!

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>> some critics try foul over the move with weeks until the election and the gulf coast bracing for a potential 1-2 punch as two storms head for the shore. the potential impact they could have on the oil and gas industry it's monday, august 24th, this is worldwide exchange right here on cnbc.

welcome back and good monday morning everybody. and if you thought the record highs might teeter out over the weekend you have to think again. markets continue to rise and dow futures indicating that will only continue today. it's been a long time to say that nasdaq futures had an implied open over 100 points that's what is happening right now. all the major indian dexes looko open up higher now the macro headlines say stocks keep going up that's only half true. big cap technology in certain parts of health care, they keep going up in fact, big cap tech really the only major sector to close at a record high on friday closed look no further than apple as an example. last weekend ending up 8% and

internally in the market i know they'll probably hit on this all day, 70% -- 7-0 of s&p 500 stocks actually finished last week down in other words what they called the breath of the market it's not that good we'll ask that question in a couple of minutes. just keep in mind that fewer and fewer stocks are making gains, even as the market is making records. now to the latest on the coronavirus outbreak the trump administration saying the fda granted emergency authorization for the use of a convalescent plaza to treat hospitalized patients. it uses blood recovered from virus patients that built antibodies against it. however some of the nation's top health officials are expressing concerns over some of the data surrounding this potential

treatment. now in the meantime, a new report suggests that the white house considering fast tracking an experimental vaccine developed by astrazeneca in oxford within a few weeks. we spoke to their lead scientist a couple of weeks ago on the program. all of that could be done before the november election. there's a lot to discuss let's get right now with aman to kick it off here on this plasma treatment and expected vaccine. >> this is an emergency use authorization. that's a lower standard of approval than full fda approval and it requires a lower bar of evidence it requires them to conclude that the known benefits out weigh the known draw backs from the particular treatment and as you say, this is convalescent plaza which is taking blood plaza from patients that already had covid-19 and infusing it into those that are suffering

with it and the hope is the antibodies in the plasma will help jump start it it's not entirely proven just yet but the president says this is all part of an effort to clear away some of the regulatory underbrush and get moving here's what he said last night at the white house >> we're removing unnecessary barriers and delays. not by cutting corners but by martalling the federal government we tested the efficacy of plasm for patients with the virus. >> this comes after a couple of unusual days here with the president engaged in a very public twitter spat with the fda itself saying that there's people inside of the fda he called them members of the deep state that are campaigning against him and trying to delay

treatments or vaccines until after the election the president harshly critical of his own health officials there over the weekend but then last night praising the fda for taking this step on moving forward on the convalescent piece of all of this controversy there. not all scientists and not all people in the scientific community are convinced this is the right treatment but the president is pushing forward anyway >> all right so that would be a treatment talk to us more about this potential vaccine. we spoke with the lead scientist at oxford a couple of weeks ago right here on this program it looks very promising. astrazeneca. oxford university. is there a likelihood this could be given fast track approval before the election? >> i think there is. and you can see this report from the financial times over the weekend suggesting that the president might be ready to move forward with another emergency use authorization on that vaccine from astrazeneca the president is clearly here

pushing to get something done before the election. he has put out the time frame on twitter as the one he is concerned about. the president feels a lot of political and health reasons to push as fast as the science can deliver. >> thank you very much back to the markets. today is your last chance to be eligible to get a bite of apple before they go ahead of the stock split at the end of the month. this is the first stock split in six years and it comes as the stock is on a remarkable and historic run. they own roughly 80,000 shares

of apple as of the end of the second quarter congrats on that have you been holding and buying more or selling some and taking profit >> as you can imagine it's a pretty full position it's a stock that we owned now since 2005 so we did benefit from the 7 for 1 stock split six years ago. it doesn't change the evaluation of apple hard to say that it's a narrow shareholder base at this point though. >> how much of this run the last few days, not this year or the past couple of months, the last few days do you think is split related versus just renewed optimism over apple or fed lead stimulus that has to go into something. >> i think that it's probably

the latter where there's money flowing into the market and it flows into tech funds and index funds so it becomes a self-fulfilling prophesy when you get to this size of the s&p 500 when you represent 6% of the index you'll continue to see your stock go up that can be a double edge sword though should sentiment in the market go down apple will suffer along with it. our viewers probably wanted to reach through the screen and throttle me for saying this over the last year and a half where i have been talking about this narrow market and how sort of the way that etf and index fund structure is structured could lead to these market gains because of the way you buy and sell index funds and it's

beautiful when it works. you reference the chance of what happens if it doesn't. so what happens if what's working suddenly stops >> there's two schools the hope for investors is the rest of the market begins to catch up the down side is, if it's just simply sentiment you'll see the largest components of the indices get hurt the most. for apple it has such a broad shareholder base we don't think it would be as devastating as if it were an entirely institutionally held asset but what brings you up also brings you down. what we have to pay more attention to is valuation. 30% of the stock over a really short speerd of tiperiod of timu it's building up within the stock. >> why would that matter

they don't care i'm just saying valuations don't mare chlts you're right valuations haven't mattered across a reasonably finite number of companies but at some point over the long haul valuation matters. >> market structure. appreciate your time and your candor have a great day, okay. >> thanks for having me. >> all right take care. coming up here on world side exchange, joe biden talking taxes and a potential tax increase for some. he becomes president we'll tell you who first as we head to break, some of the other top stories on this monday long time trump aid kelly anne conway leaving the

administration she will depart to focus more on her family meantime, the on going outbreak lead to a record number of bankruptcies by large american companies. according to the financial times as of last monday, 45 companies with assets of more than $1 million have filed for chapter 11 surpassing the level seen during the financial crisis. >> a record setting auction this weekend as an autograph mike trout rookie baseball card selling for $4 trillion. the previous record of 3.1 million for a 1909 back in 2016 not bad for a kid from millville, new jersey. you go mike trout. go angels. not your year but congrats for the card we're back right after this. ♪

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>> welcome back to worldwide exchange democratic presidential nominee joe biden is willing to risk taxes on americans making over $400,000 a year. biden making those remarks in a new interview with abc vowing no new taxes for those making less than 400,000 as well as businesses that employ fewer than 50 people the chairman and ceo of private equity firm apollo global management will reportedly be

subpoenaed as part of the probe into the late jeffrey epstien. according to the new york times, the u.s. virgin island's attorney general is planning to go after leon black. and twitter lapping another warning label on a tweet over it's content the company taking the action yesterday in which the president claimed boxes are a voter security disaster. twitter says while the posts violated the companies rules around elections it would not be removed. worldwide exchange is back in a moment with coverage on the storm system threatening the gulf coast

welcome back we are keeping a close eye on that scary and developing story along the gulf coast a potential double threat for its shores tropical storm marco was

downgraded back to a tropical storm overnight from a category 1 hurricane and was set to make landfall in louisiana today. now right behind it is tropical storm laura which is larger and is expected to develop into a hurricane and make landfall in the coming days. of course one thing to keep track of with these storms is oil and gas. about 44% of u.s. oil and gas refining capacity is in the path of these dual storms you get about 2.8 million barrels a day in houston 1.7 million barrels a day east of that and 2.6 million barrels a day in the new orleans, baton rou rouge region now in terms of the company's impacting it's all big names that you know. you have marathon with their huge garyville plant exxon mobil, and citco and more all with a massive presence in the region there you see some of the names

based in some of the areas this morning, bp, shell, chevron and others have workers on offshore riggs about 15% of u.s. offshore production is shut in and that's not too bad right now especially given that demand is also expected to drop as people get locked down, excuse me, because of the storms as well. so the price of oil is not moving too much right now. let's talk more now about these two scary storms nbc's jay gray is in new orleans where officials are preparing for both of them jay, good morning. >> normally you hear some type of music there's always an energy here. the entire french quarter unusually quite right now. some businesses don't seem too worried. right next door, this restaurant comple completely boarded up. the effects of marco expected in this area in the next several hours with laura still looming right now.

the big easy a bit uneasy right now. with two tropical systems targeting the louisiana gulf coast. >> some are blocking or boarding up what they can and making sure they have the essentials to ride out the storm. >> stocking up on food and the highest point possible we can find. >> others in this area below sea level are heading for higher ground. >> we can't handle a regular rainstorm and two storms coming back to back in less than a week it's time to go. >> marco could lose a little energy before landfall this afternoon. it's west of new orleans leaving the city on the strong side of the storm. law is a much more powerful system that will likely

intensify before crossing the coast. >> it is expected to be a category 2, a very strong category 2 there is definitely the possibility that it could be a little bit stronger and be a category 3 >> lashing the islands as it grows and takes aim at the gulf. evidence of the strength of the system and a sober warning for those in the track of the storm. >> officials here are saying the time to prepare is really over at this point. they told residents across the area overnight where you are now is where you need to hunker down for the next 72 hours because of both of these storms >> all right 72 hours is it possible given if laura comes thursday you could have people that are effectively locked down. not from the coronavirus, locked down for the weather for a week or more. >> no, you're absolutely right it's also going to effect those areas that are hit the hardest

crews can't get in and do their work and that includes recovery teams, rescue teams, electrical teams can't get in and do their work until both storms pass. that's going to be an issue that even in this area so familiar with storms have seen so many over the years, it's something they never had to deal with and officials right now are trying to figure out how they can best handle what is going to happen starting in the next few hours. >> be careful. >> thank you. >> as the gulf braces for those two storms, wildfires are engulfed more than a dozen states in the western part of america with more than 20 blazes burning in california alone. as a result, insurance companies are facing mounting costs amid continued catastrophic losses. contessa is joining us now with the insurance side of all the stories as if 2020 wasn't bad

enough. >> that's true the gulf coast braces for that and insurers are grappling with a very busy august across the nation 15 years ago the gulf got katrina and willma and now they issued a hurricane risk warning. it is specifically advising clients of the damage potential from storm surge because, you know, the sea levels in the gulf are 5 to 6 inches higher than they were during katrina and they're warmer the pandemic of course complicates evacuation efforts as well. >> they're going to be challenged as the impacts will vary business disruption could also be a consequence now the same is true in california where crews are battling the state's second largest ever fire among more than 500 fires covering nearly a million acres.

ensurers paid out $24 billion on wildfires in 2017 and 2018 so much that since then many reduced their exposure and then of course we had that that swept through the midwest a couple of weeks ago adding another katz t catatrophe to deal with the industry is experiencing elevated losses from a combination of events. covid-19, civil unresit and liability exposure and hurricanes and wildfires pro stocks have taken a hit and so have the bonds and it's a challenging year that's probably an understatement. >> yeah, just terrible out there in parts of northern california. if you wanted to get fire insurance now, could a business or an individual get it? particularly not just in this but in the wake of what happened

with fires a couple of years ago. >> they're not renewing policies or they're just getting out of california fire business all together however, the state put a moritorium on ending the policies that happened in december. they put a one year moritorium that said if somebody's policy is up you're not allowed to discontinue the insurance. it's so expensive that it's done away with pending sales because people figured out i can't afford the fire insurance that's going to happen. their premiums are six times what they were a couple of years ago. >> wow, six times. i mean, if businesses aren't dealing with enough, now the

insurance preed ymiums and the e and the floods and the storms. good to hear from you. thank you very much. >> sure. >> all right well in the face of all of that, let's turn now back to the markets because with everything else going on the market doesn't seem to matter. dow futures up 220 points right now. all of this adding on to last week's record setting gains for most of the major indexes as well, with stop me if you heard this one before, big cap tech trading in a new record on friday >> it's great to have you on don't tell anybody but 70% of the s&p 500 declined last week how long can this last

for awhile the thing becomes that if you're looking forward and trying to find value over the long-term, then you can look at some of those -- that 70% group but these tech companies are going to continue to run for awhile but at some point some of the others that are following behind that 70%, they'll begin to pick up as well >> what is your biggest fear or biggest risk for the equity market right now >> my biggest fear is a contested election come november or supreme court type of an outcome if it's heavily contested. that's my biggest fear or nightmare if you will. >> what do you think that would do to the equity market? >> i think it will exacerbate

the unrest and nervousness when we take a look at gold and what it's done, 36%, there's been a lot going on around the world. not just here in the united states so a lot of what i see happening is based on the fear trade when things are unsettled. when there's concern about what is going on in the world, people flock to things like gold and having a less than normal potential exchange of power around the world would only exacerbate the situation. >> so you're willing to continue to own stocks but you want to add as a bit of a hedge. >> a bit of a hedge. i'm somebody that has great confidence in america and our ability to get through things. we're talking about the near term and what is it that might worry me, somewhere over the next three to four months, that's it. we have seen hurricanes come and go and they're devastating

i don't mean to be little that when i got up this morning and went through the facebook time line, well, that's real for people all across the country. we have seen what happens when refinal refineries get shutdown and that sort of impact it's one of those things where we have resiliency but in the near term they can add some shots to the system. >> they can. the refinally shutdown is probably less brief by the way less mitigated by the fact that we're shutdown anyway. they're not fully back to normal because of the pandemic. he thinks the market rally can continue but watching for a contested election we'll see you soon on cnbc worldwide exchange you be well. >> take care same to you. >> nothing is bothering these markets this morning folks dow futures up 215 points. apple up again in the premarket.

i'll see you on closing bell later this afternoon that's it for worldwide ua pki uthco sqwkicngp e verage next have a great one

good morning, stock futures pointing to nice gains from where we closed last week as wall street looks to build on what was a record setting week we'll have a full run down of the biggest movers straight ahead. the fda approved convalescent pla plasma we'll get reaction at the top. and the gulf coast is bracing for a 1-2 punch as marco and laura make aim at louisiana. monday, august 24th, 2020 and squawk box begins right now.

good morning, welcome to squawk box on cnbc i'm andrew ross sorkin along with joe kernan. nice to see you. >> good to see you. >> just the two of us. >> a lot happened last week. i am an adopted son of new jersey. >> a lot happened. >> a lot happened. i heard about it i didn't watch much. i watched so much that i had very little time to do anything else did you like the shore okay? do y