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 you have a new viewpoint?

>> the kids had a ball we loved it. jersey was great the people of jersey were great to us. the water by the way -- the water is -- i mean, the ocean beautiful. drinking water in jersey still is probably my only complaint. i have to go brita or bottled. but i got this tattoo which i know that you guys showed off last week. i got a lot of neosporin on it right now. just to keep the bacteria, that's what they say you're supposed to do but at some point we'll show it off and do the grand reveal. >> they asked me if we wanted to show it and i said no he never liked it on twitter and i'm not sure that he really liked it so you brought it up. i wasn't going to bring it up. >> to be honest with you, i came to it late i was actually trying to not

even be on twitter that much and i saw it and it was too late to start retweeting because it was a day after clearly you had shown it off and i didn't realize that i had sent that picture to you but i didn't realize that everybody would get to see it this way. >> it was fun. i'm going to get one for you crazy again today. you can bring us up to date on that. >> let's checkin on our u.s. equity futures up 219, 220 points right now nasdaq looking over 110 points higher treasury yields, the disconnect continuing to be real but none the less, a ten year note, .646.

>> crazy, record high stock prices and low interest rates. you'd think things were just going great. and then all of this other stuff. meanwhile, that's all we need. two major storms are on track to hit the gulf coast the u.s. gulf coast this week, louisiana and mississippi as well as texas, dapg roungerous waters, storm surges there's two of them. one is a tropical storm. it's marco, going to make landfall in louisiana today it was downgraded from a hurricane last night the other one is a tropical storm as well. laura already hit puerto rico and the u.s. virgin islands. laura is expected to strengthen into a hurricane tomorrow and make landfall in louisiana on thursday and officials are warning there may not be time for repairs and search and rescue between the two storms. 44% is in the path of the storm and that number jumps to 50% if either storm hits corpu

corpus christi, texas, this will only be the third time that two tropical storms were in the gulf of mexico at the same time last time that it happened, 1959 and prior to that it was 1933. andrew. >> wow the wall street journal saying mark zuckerberg raised the red flag himself about tiktok in meetings in washington when he was there last fall. he made the case to president trump at a private dinner that the rise of the chinese internet company threat to american businesses should be a bigger concern than raising in facebook he also warned several lawmakers about tiktok including tom cotton that demanded an inquiry into the app a lot of finger pointing at mark zuckerberg who the argument was being made was using it to deflect some of the attention that was being placed on

facebook and if you remember, even publicly, you have to think about the large companies in china. that's the real issue. we're trying to compete with them and the news does make a little bit of sense. there's folks on tick to be last night when the report broke that are going crazy now at mark zuckerberg because of course they love their tiktok and they have until september 15th to make a deal with microsoft and now oracle and we'll see if it all goes away otherwise. >> is there a part of it where he just a patriot and saying they don't do business like us and they don't have certain values we have is it 90-10?

he truly believes that this is not an upstanding, you know, that freedom may not be the top thing on tiktok's mind is it possible or do we just say he's protecting himself. >> no, i think you're right, joe. nothing is black and white it's always part of a spectrum and i'm sure that there's some part of him that has real issues with security problems in china as we all do i think or so many people do i should argue but at the same time, there's probably an element of the competition. he is a competitive guy. so i could see it being both i should note by the way, later today, possibly while we're on the air joe, tiktok filing a lawsuit. the expectation is against the united states government for steps that it's taking so we'll be looking for that as well. >> it's not just his money although it's unbelievable in his 30s.

>> right chl. >> he's grown in my eyes like the other guy that's the fourth richest man in the world that does crazy stuff but, you know if you got it, flaunt it. elon doesn't he looks back on a lot of the controversy. there's a few of them where you couldn't make them up. but now here we go you'll talk about it later with an analyst we have news that report today that we haven't brought you since march, box office numbers. theater chains reopened their doors with a new hollywood movie over the weekend, unhinged starring russell crowe brought in $4 million and is being considered a success as only 12 of the top theater markets allowed theaters to open they were all drive in back to the future, in areas that haven't allowed areas to

reopen four in california, one in deer borne, michigan, it's been years. i have very fond memories of that the big things that if you forgot, you'd go home with it. >> you can do it a lot better now. >> now i think that you can either -- now they beam it to your radio, right? in the car you go to a channel on the radio. if you still have that unless they do it by bluetooth but that would be the next modern version i think you sit in front of the car with the kids. keep the social distance is that how it works i think it works that way. >> i have not been in forever.

the place that we went to, this was many years ago there was a person that came around almost like the old rootbeer stands, they come around with the popcorn to each car as they -- like on a trolly. >> nice. >> but who knows. >> nice. anyway, don't come aknocking you know the saying. coming up, president trump announcing last night that the fda granted emergency authorization for the use of convalescent plaza reactions next check out the shares of apple crossing $500 for the first time as we head to break, take a look at the biggest premarket gainers. squawk box is coming right back. clean is a feeling.

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trump administration announcing yesterday that the fda granted emergency authorization for the use of convalescent plasma to treat covid patients the known and potential benefits outweigh the known and potential risks. here's president trump speaking about the treatment last night >> this is a powerful therapy that transfuses very, very strong antibodies from the blood of recovered patients to help

treat patients battling a current infection. >> last week the fda said it would not grant emergency authorization for the plaza until more data could be reviewed and president trump said the decision could be politically motivated. meanwhile, a new report says that the white house is considering fast tracking an experimental coronavirus vaccine within the coming weeks. that here is before the november election i could have figured that out. but thank you for imlying why we're doing it the former fda commissioner that also serves on the boards of al alumina and pfizer he writes studies are competing for too few patients it's time to direct resources toward the most promising

therapies. were you aware that it would be before the november election anyway, do you agree with what the president decided to do? do we know that the possible net benefits outweigh the possible risk and if you were still at the fda would you be in favor of this >> this is an almost use authorization in the setting of a public health emergency. so it's not the standard for trump approval it's that the drug or therapeutic may provide a benefit. i think on the basis of the data set that's available it's reasonable to conclude that this may provide a benefit to patients who are suffering from covid. and it's a very large data set there wasn't an indication that this were serious side effects

so we have a lot of experience using it we have seen where it does provide benefit. we've seen situations where it doesn't. but i think in the setting of this public health emergency, it certainly met the standard for an emergency use authorization and it may provide a benefit this could be beneficial it might be weekly beneficial. it doesn't look like a home run but right now we're looking for singles and doubles. >> that makes sense. we'll see how it's received. i'm not sure that it's going to be well received as we are going to see anyway, hopefully it works and can help some people the astrazeneca oxford university vaccine, which one is that which one is that that we're talking about here >> that's right.

it it's vaccine. >> so we have done it before we may know something about the safety of that would it make sense to you to start using that at the point that it might come a little bit earlier and full scale phase three trials are finished. do you think that it makes sense to do that >> look, i think you need to do research with the vaccines there's two trials underway. a 30,000 patient trial noted these trials are enrolling very quickly. i think what the financial times was reporting on is that there's a trial underway in the united kingdom with that vaccine involving 10,000 patients. that hasn't fully enrolled yet it's about three quarters enrolled but because it's a

smaller trial it could read out sooner than the trials underway in the u.s and would they feel the same on the basis of a small data set involving only u.k. and british citizens and not an american trial. i think that there's going to be some added complexity to this and that that vaccine started out as a single dose and they were finding that they weren't getting the strong immune response with just a single dose so they went toward a double dose like the u.s. vaccines are, like the two different doses so that might further confound the ability to draw very clear conclusions from the trial i'm not sure

>> do you at this point, does anyone, any scientist, any research indicate the disfferen modes. whether it's the astrazeneca method or one or the other will bare fruit we're trying to get them all but is one more tested that we can trust the safety of it >> they are early data sets that you have they would listen to a response that would be greater than what you would see for the vaccines but what we have seen is the vaccines, at least the ones in development so far that are in advanced development aren't going to be single dose

vaccines and also a response. the differentiation that we thought we might see early on we haven't seen so it's hard to say which vaccine might be more robust based on the limited data sets we have right now it's going to require them to make those kinds of judgments. there's a concern and worry that a lot of people may not decide to take it or at least not initially because they would be worried about side effects or worse and because so many of these things or at least some of them are based on new technology does it somehow create a side effect later on. within the medical community what are the side effects right now that people are concerned about beyond the usual headaches

and fevers that frankly the flu vaccine has given me over the years. >> one of the theoretical concerns is the question of whether or not the spike protein in the vaccine is actually the protein that's eliciting some of the post viral auto immune type of phenomenon that we're seeing with the actual covid infection because we're seeing incidences of people, children for example and adults that develop it and the question is what is triggering that. is it some protein in the virus itself is it some interaction between the virus and human host so if it's the spike protein and the common link between the disease and phenomenon then there's a theoretical possibility that the vaccine that contains the protein or elicits the production of the protein could have the side

effects. so that's at least a theoretical concern that you want to discharge and you need a large trial to do it a 30,000 patient trial underway in the u.s. should provide a sufficient data set to recharge the risk they become manifest weeks or a month or two after you get the viral infection so you should see them in a reasonably sized clinical trial with reasonable follow up. >> all right thank you. we'll see you later this week. hopefully update the state of things in the trouble spots and europe visit that as well at some point. anyway, thank you. we'll see you later. >> coming up when we return on the other side of the break, it's this year's hottest trend

>> a blank check company will discuss what it means all ahead. as we head to a break, check out airline stocks this morning. they're among the biggest gainers right now. right back after this. you're looking at southwest air up over 3% back in a moment

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welcome back to squawk box this morning luminar going public through, yeah, a special purpose acquisition company. also known as a blank check company. investors put money in without knowing how or when it will be deployed also al is with us the founder and ceo of the local investment firm. good morning to both of you. congratulations on this deal austin, i'll start with you in terms of walking us through the transaction but tell us why you decided to go the route of a

spac it seems to be the most popular thing going on wall street and why bypass the ipo process? and being able to get out there and have some greater certainty around things. it always made a lot of sense. but nows proven out with the electric vehicle and companies in this segment going out there with this. >> we'll give you credit as pie nowheres of the recent vintage

at least what's happening here? why are people doing this? speak to the fee structure of all of the things. a lot of times historically, people thought of these really as, you know, a vehicle or for sponsors to make an enormous amount of money massacre raiding as an investment strategy. they shifted though over the years now. >> sure they have. they have really become a great way to go public and much more efficient way to get the public markets for companies. and also work very well with the volatile markets and we just finished raising our 6th one. we're very excited it's been a great vehicle to do lots of things with companies and to find great dealers and great companies.

in terms of investors that want to value this company and street it as a stock as opposed to a spac, what are the other companies in the space that you think are fair competitors in terms of multiples and the like that investors should look at? from this business model it makes a lot of sense under what we're building out for the autonomous space specifically, i think the reason why in our case is that we actually have a nearer term opportunity to be able to generate real revenue and ultimate profits with his.

and to be able to have it is something that has been very attractive >> and then when we looked at it -- >> oh, go ahead. >> sure, go ahead. >> when we look at it, in our eyes there's no competition, you know they are clearly leaders in the space. >> hey, austin, you probably heard it many, many times before but i want to get your view on this elon musk very publicly, doesn't believe that the main product that you make and

service that you provide is ultimately going to be necessary to autonomous driving. he has always argued that cameras will do just as well as the laser going around and mapping things around you. >> our other partners would certainly disagree but that said, to be fair, historicallies had it's own limitation from an economic perspecti perspective. we have something that instead of being a massive roof rack on a vehicle can be seamlessly integrated and be applicable to not just taxis or trucks but also consumer vehicles as well so that's where this is -- this is now the business case makes a lot of sense but when it comes to a product standpoint you don't actually need this kind of high performance if you want to do a basic level meaning that if

you want to be on the road, constantly paying attention, ready to take over the wheel at any given moment whenever it makes a mistake which is actually shockingly frequent on the order of tens of miles so if you want to get out of the loop and you want to be actually autonomous, you need it and right now luminar is the only company that meets that spac. >> there's not going to be the little laser police siren. >> no. >> what is your realistic view about when we're actually going to have genuine autonomous meaning i get in the car and i say take me to the office and the car actually does it. >> so here's the thing full autonomy end to end, this is more like a 2030 problem that we're talking about. what we're focused on is nearer term applications for launch in 2022 and that's starting with

highway autonomy specifically. that's what we're going out there with volvo and other auto makers as well and what long haul trucking applications are going to be fully taking advantage of we're working with nearly every major autonomous trucking program for exactly that reason. i think that those will be hugely successful but in the near term that's what we realize as well as active safety applications that are hugely relevant >> it's great to see your success over all the years we'll keep our eyes out for the next. >> thank you >> thanks. >> all right thanks, andrew

we're going to go to break i wanted to wish you a happy waffle day. >> is today waffle day >> today is national waffle day. >> today is waffle day. >> today is waffle day in sweden, norway and denmark it's on march 25th. it's been for years and years over there but in this country it has to do with when we -- the waffle iron was patented but i don't think you can get a free waffle at the waffle house i don't. i'm not sure but do you know where you can get one i'm told is ihop which is kind of weird international house of pancakes. free waffles i don't know coming up, a jump at the u.s. futures. momentum in the premarket. as we head to break, take a look at the casino stocks

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good morning take a look at u.s. equity futures at this hour the dow opening up 248 points higher the nasdaq up 114 points and the s&p 500 up 26.7 points right now. the s&p 500 and nasdaq closing at record highs at the end of the week but it's been as you

know so well, narrow 70% of the s&p 500 stocks actually fell last week and joining us right now it makes some sense of this market's moves is the cio of well management good morning to both of you. david, i'll start with you we have talked about how narrow this has been throughout and the question is when and if there's going to be a great rotation into some of the cyclicals and if we're going to do that, especially because people talk about a potential vaccine, you try to do it now or do you wait? >> well, there will be a rotation driven on whether there's going to be a treatment for coronavirus and once we have that in our sights and it's been announced and properly tested

we'll see a major shift in the economy and we'll see trade open up so far. it's really empty now in terms of consumer goods. the actual supply chain is going to empty over the course of the next year. basic things, appliances, carpet, stuff like that. the industrial rebound is very optimistic about that. it's very expensive and discounts many of the next several years in terms of what is going to happen in terms of cash flow. >> what do you think of what david just had to say there? do you think you jump into some of the cyclicals now do you hang on to some of the

tech part of this is a time line story. if you told me three or four months from now or sooner we do have a vaccine given some of the more optimistic takes, maybe you move but if i told you that you wouldn't get a vaccine in earnest where lots of people had access to it until late spring and next summer. i don't know what the move would be. >> they're covered and extended across the board so i think at this point if we continue to see better economic data and continue to see optimism on a vaccine then certainly some of the more beaten down cyclical sectors of the market have started to increasingly look attractive i cover small caps and we have seen that for a lot of the small cap cyclical sectors even though we have been more cautious on small versus large overall,

starting to see some of the more energy industrials so these areas look less like value traps and more like a bit better value. we do think rotating into value more at this point does make sense. we're within our broader equity strategy we are still equal weight tech obviously this is a lot from the sector but we do think that the sector has some regulatory risk as we approach the us. election and as we see more crack down from a regulatory angle but still lots of opportunity out there. >> do you think the tech stocks hold up overtime even if there is a rotation? is that a -- this is a binary story? meaning is it -- if the cyclicals get money, does that mean that the tech companies are effectively going to lose and is

that the right way to think about it >> that's the right question there's a period when for five years their earning and cash flow tripled and the stock was relatively flat. that's indicative of what could happen here. companies that are fully valued and are going to continue to perform well and then other companies, these industrials and even smaller cap is going to do much better over the course of the next 18 to 24 months that's why you have to have the right amount of technology in the portfolio but not too much one of the areas that we like are trading out at half the value that they were about two years ago on a relative basis to the us. stock market

so there's places that are much more attractive than big cap only but we don't want to sell the key components in our portfolio today. >> we have to leave the conversation there thank you guys, appreciate it very, very much. >> joe. >> thanks, andrew. >> thanks. coming up, a former img sports and entertainment president george pyne is with us he's going to tell us if the football season is actually going to happen. >> he looks younger, doesn't he? we have a big line-up for the rest of the show covering what you need to know for your money to start the week including the representatives. peter navaro and more. a reminder you can watch or listen to us live any time on the cnbc app we'll be right back.

>> gas prices held relatively steady over the past few weeks they expect prices to fall in september because many schools will remain closed eliminating the typical rise in demand and fall from school. coming up, countdown to kick off. the nfl slated to begin it's regular season on september 10th should you keep your sunday calendar clear that weekend? we're going to discuss that next later, the most expensive baseball card in the world we'll tell you about this weekend's record setting auction. it's no longer that guy we never

heard of from so long ago? we'll see. squawk box will be right back. yes, you are. i'm gonna get this place all clean. i'll give you a hand. and i'm gonna put lisa on crutches! wait, what? said she's gonna need crutches. she fell pretty hard. you might want to clean that up, girl. excuse us. when owning a small business gets real, progressive helps protect what you built with customizable coverage. -and i'm gonna -- -eh, eh, eh. -donny, no. -oh.

the nfl kicks off in a little more than two weeks that's the plan. yesterday they revealed that 77 tests came back positive

all 77 people were retested. and came back negative officials were blaming the lab in new jersey that tested the samples. joining us to talk about restarting sports, george kline, founder andceo and former img worldwide president of sports and entertainment. you can send us a little check for that picture that we showed of you, george like your high school yearbook but it's okay. you still looking good so i'm going to -- should we temper -- you're in the sports business should we temper -- george, look at that. i don't know if you've got a monitor. oh, my god, got to be 20 years old. wow. look at you. you had a rough night. no, i'm kidding, george. you're in the sports business. you want things like i do, you want things to work out. you sound pretty positive. you say that the sports that have restarted, that they have

been very -- they did a good job. minimized the problems and did you right down the list from the nba, to the nhl, pga, nascar even major league baseball, which has had, you know, a couple of times where i was wondering whether it was going to continue, but overall you think things have gone well. >> well, i think when you look at it, take a step back globally, they're playing rugby, soccer sport has returned safely around the world. certainly the united states, i think the women's soccer league, nascar, pga tour, the early pioneers have done a good job. even nascar bringing fans back to the stands. i think the nba, nhl, major league baseball all have done a good job i think what they've proven is sports in the covid world it appears can be played safely i would expect the same with the national football league >> really? that's good. then we'll talk about college football you know the expression, you're

living in a bubble that means nothing that's really happening in the real world is happening to you it's been phenomenal and that leads me to the next question about the prospect for media rights and how much teams are worth because it's -- i mean, i have seen almost every game. i saw a clippers/mavs game yesterday that was as good as any college game that i used to say that i -- you know, that the nba i don't -- because of the -- you know, they have such a short time clock and not as much defense. it was an unbelievable game. my interest is rekindled. are these sports teams going to suffer in terms of valuation or media rights >> very much so. i think what you're talking about, joe, is sports has come back safely but they're minimizing risk and losing billions and billions of dollars of revenue, primarily at the lives of game day. tickets, suite sales, food sales, consumer products

the service businesses around sports and not to mention the local communities. take tuscaloosa, alabama, generates $25 million of economic impact per game businesses around the barclays center this is a long standing meaningful economic impact that is in 2020 but will also take place in 2021 and i think have an impact beyond that. so sports is a little bit like the hotel industry, the cruise lines. it's going to be heaard hit. jobs have been lost. long term sports will remain strong but in the short run it will be very choppy and difficult. >> so you think major league baseball, that's where we -- they're doing double headers with seven inning games to make up for the teams that had to quarantine or played other teams where they had an issue, but that's been a success, too, you would say? >> i think it's more difficult when you're out of the bubble

but, look, they've canceled 36 games but overall they've also played the most games and i think they've done a really good job. they've had starts and stops reacted appropriately. from all accounts will finish the season again, more difficult out of the bubble but it's being done safely so i think, yes, they'll be successful and finish the season it gives you hope for the national football league who will not be in the bubble like the nhl and nba. nascar was not in the bubble nor was the pga tour. >> george, in terms of valuations of teams, one of the big teams, as you know, is up for sale, the mets everybody very curious about what the will ponds are going to do will it go to a-rod, j. lo, steve cohn and what kind of price you think it goes for. weigh in on all of it if you could. >> i think the mets are an

asset. they're in the largest market in the world. i think they have that going for it looking in, you might see some up side operationally on the mets in general it would stand to reason in the next 12 to 36 months valuations are going to be hit look at the expectations for the minnesota timberwolves, lower than you expect them to be there will be real dislocation when people can go back to games, there won't be the same number because somebody can go back, doesn't mean they will go back the costs to operate the venues will go up suite sales, whose pi talt will all be impacted. that will have a rub off on valuations in the short run. in the long run sports teams have been double digit for the last 20 years. in the short run it will be very challenging. a very difficult time, i think, for the next 12 to 36 months. >> george, the other thing i wanted to ask you about was gambling on games these days,

whether you think the play is something like a pen which owns bar stool and the like or you saw iac, barry diller, make a huge play on mgm on the assumption he can turn that and helper swayed them to have a global or worldwide digital presence who do you think wins in that game >> well, i think it's a huge opportunity for both the reason why is, look, what we know is it's inched out. it hasn't gone to 50 states yet. as the gambling expands across the you states, so will the financial opportunities. i think this is going to be a big revenue stream for sports going forward. if you look at what ted leonce has done in dc which is starting to adapt a venue to more gaming and gambling, i think that's going to be the future gambling will be a good revenue stream for teams and states. i also think it's going to be something that's sticky. 18 or 19 times more likely to watch a game if you bet on it.

i think it's going to connect in ways with the avid fans. gambling is an overall positive and it's a real growth engine going for it financially. >> 18 or 19 times. that's a big number. so you assume nfl goes but i don't know about college it's different, isn't it we've got to run, but you think prospects are good for the nfl but i don't know how they do college. i don't know what's going to happen with nebraska, ohio state. are they going to splinter off into little -- >> i think college is fragmented each conference makes its own decision like america, people view things differently so i think that's the case in college. what we do know is sports will be played safely and i think there is an argument to be made for a 19-year-old young person to do something in a safe environment where they're routinely tested where safety is a priority focus on the goals

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looks to build on a record-setting week. we've got a full rundown of the biggest movers straight ahead. the trump administration announcing the fda has allowed convalescent plasma to treat hospitalized covid patients. and the highest paid trading card ever. someone went fishing and caught a trout. $4 million that story and so much more in the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" here on cnbc i'm joe kernen along with andrew ross sorkin. becky is off u.s. equity futures up, up and away just like last week record setting moves last week

when you were out, andrew. s&p adding some of its gains. trump administration breaking the news about convalescent plasma. president trump is speaking about that treatment last night. >> this is a powerful therapy that transfuses very, very strong antibodies from the blood of recovered patients to help treat patients battling a current infection. >> last week the fda said it would not grantemergency authorization for convalescent

plasma until more data could be reviewed president trump reacted angrily and said that decision could be politically motivated. the white house is considering how to fast track an experimental coronavirus vaccine within the coming weeks. so we're going to be watching that i imagine a political debate about it medical debate about it as well. joe? >> yup meanwhile, wall street journal is reporting facebook ceo mark zuckerberg raised a red flag about tiktok in meetings in washington way back last fall. zuckerberg made the case at a private dinner that the rise of chinese internet companies threatens american businesses, probably, and should be a bigger concern than reining in facebook zuckerberg warned senator tom

cotton about tiktok. facebook releasing this statement. mark has never advocated for a ban on tiktok. he has repeatedly said publicly that the biggest competitors to u.s.tech companies are chinese companies with values, is the rub, that don't align with democratic ideals like free speech it's ludicrous to suggest that long standing national security concerns raised by policy makers on both sides of the aisle have been shaped by mark's statements alone, which i guess are kind of implying that they're based on just winning winning and not about sharing the same ideals of free speech and freedom that they were emphasizing there. a little bit of both as we spoke about last time. >> this goes back to what we were talking about last hour it could probably be a combination of both, right >> i think he has a very principled view as he does about free speech and china.

tiktok does represent a competitive threat of some sort. so much so that instagram just recently copied part of the tiktok application meantime, apple gaining more than 8% last week and pointing to even more gains this morning. this coming ahead of the company's 4 for 1 stock split a week from today. joining us right now to talk more about apple's run higher in spite of recent blow back, dan ives is here, managing director of equity futures and mike santoli. dan, the question i'd ask is it feels like this is going to be a blowout fall for apple, so many people buying more computers expectation they'll buy more phones the question is is there a pull forward here i say that a little bit from anecdotal experience the sorkin family just bought two new macbook pros for the kids because who knows how virtual we're all going to be.

is that a pull forward i think i probably would have bought those computers maybe a year or two from now the question is is this just accelerated now on an upgrade cycle or upgrade strategy in the future >> on the mac side, definitely a little bit of a pull forward 350 million of 950 million iphone are in the window of an upgrade opportunity. 20% of those in china. that, in my opinion, is the fuel that works for apple iphone 12 is a once in a decade opportunity in terms of the upgrade cycle. i think there's a bit of a pull forward. blue skies ahead in terms of upgrade cycle for the iphone. >> mike, what are investors telling you right now? this has been on such a run. you hear so many investors saying we've got to get out of tech maybe we should be hanging out

in cyclicals because that's where the next move is going to be. >> there's been some halting moves. >> where is your money safer, where is it going? >> the market had a few weeks where it did broaden out a little bit while the huge cap, tech and tech-related names are dominating the indexes, they're not the only things in an up trend right now. i have a wonky answer for why money keeps piling into apple as well as microsoft as well as facebook which is the market is driving their free cash flow yields down which means that they're paying more for every dollar of free cash flow it's now about 3% that free cash flow for apple, microsoft, facebook investment grade bond yields are 2% they're squeezing these massive bond related yields down to where corporate debt is. that's the kind of math of it on a finance basis. there's also this feeling of tesla and apple are splitting

their shares there's this new stay at home do it yourself excitement around these massive household names that keep going up and it feels good to buy them because you know them, you love them by the way, nobody literally has a loss in the stocks because they keep making new highs today tesla is not up 65 bucks in a premarket apple is not up another 2%, the stock split shouldn't matter but it does matter to the psychology of a market willing to pay more for every dollar of earnings. >> all right dan, you know, we haven't talked yet about this big fight with epic games, maker of fortnite, what it ultimately means, who you think ultimately wins and whether washington gets involved from a regulatory perspective. the debate for those who have not been following has pulled fortnite, very upset about the 30% apple takes. you have spotify and others coming in making the same

argument how does that shake out and what does that do to services revenue if you think they are successful >> we think the bark is worse than the bite. i think apple defends this and is victorious in the courts. that's a key part of that $60 billion revenue stream i think a valuation 7 to 750 billion. our call here has sort of been you continue to buy apple. i think this is more noise they've defended again and again despite obviously a ground swell against it i'm not worried here despite some of the head-on fears. we continue to continue to view this as a positive outlook for cook and kup perfe tcupertino. >> i agree with you. i think apple is on relatively solid footing. what i don't know -- in terms of the court. what i don't know is whether they're on solid footing in terms of the marketplace, which is to say if a lot of app makers

decide, you know what, we're going to effectively redo our apps we're going to effectively move all of the payments the way netflix has, spotify, the way others have on to a web browser format so you have to go elsewhere to make the payment so apple doesn't capture that money, do you think that could happen en masse over time? >> it's a great point. i've talked about it with a number of investors. i think there's 1.4 billion reasons that doesn't happen. right now cook has the key to the kingdom in terms of app store. fortnite giving 315 install base, they can play a game of high stakes poker with apple others can't that's why right now i think it was a calculated but risky move when you look at what epic did here i continue to think cook and kupertino are not losing sleep over this. instead you're seeing them become more entrenched

especially with the august 28th deadline. >> dan and mike, thank you very much appreciate it very much. joe? you playing fortnite >> thanks, andrew. coming up -- later no, probably not probably not i know it's not being played in your house you have a lot of sims played still around here. it's a bizarre thing the actual service, not the ban. and reversing recent operational changes but things are not so certain in the senate. we're going to speak to california representative r ro khanna. the bill and 67 more before we head to break. quickly "squawk box" seeing some of the highs in the dow, the s&p and the nasdaq we'll be right back.

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at no additional cost. no strings attached. the house passing a bill to put $25 billion in emergency funding into the postal service. the u.s. postmaster general going to face another round of tough questioning from congress on mail delivery the head of election day let's welcome congressman r ro khanna of california, 17th district congressman khanna will

participate in today's hearing unclear where this bill goes and whether it has any life. mark meadows saying it's not going anywhere, doesn't do anything to deal with the long-running problems that we're all aware of at the post office. ro we know the price of a stamp never has paid for what it actually costs to deliver and we're endlessly subsidizing the post office. we do that with other services what's the right answer and what do you want to hear from the postmaster general >> two things. i know mark meadows and i believe there can be a deal. the postal funding can be part of the larger stimulus that we need to get out. two other quick points we've subsidized the post office from 1840 to 1971 as a service for the american people. just like no one would ask the defense department to make a

profit or the nih to make a profit, i don't understand why we can't have a view in this country that we should be subsidizing the post office to do an essential service. the final point, even if you have a philosophical disagreement whether the mail sorting machines are needed, why not fund it so people can have faith in the election even if you think it's not going to have a negative impact, a lot of people do, and create the confidence with the electorate >> the postmaster general has insisted that there srchlt going to be -- there aren't going to be any issues. you are probably going to ask that again today you don't believe him? you think there are going to be some major problems? >> i do think there are going to be problems because the sorting machines have been taken out there's still not clarity on overtime, but my question to him is going to be let's just

stipulate that you have your view and you may be right and i have my view and i may be right. millions of people are concerned. the president is saying he is up in the polls wouldn't he more than anyone want to make sure people have confidence in the result what's the harm? we've restored the machines through november after november let's have a debate but let's assure people right now they have no reason to be concerned >> i guess nothing that happens in 2020 would surprise me at this point, but are you a little bit surprised that the u.s. postal service has become such a bizarre political football with so much grandstanding on both sides? how did we get here, ro? >> i'm surprised i'm saddened i was born in philadelphia with ben franklin this is sort of the foundation of our country, and the fact that we're now politicizing the postal service i think is sad.

and that's why i hope we could just have some common ground for the sake of our democracy. i think whoever wins, whether it's trump or biden, the one thing the country doesn't want is for that election to be questioned we should all be doing everything we can to make sure people have confidence in the result >> can we talk about your state and gavin newsom what do you expect to hear this week, new criteria for reopening businesses i know a lot of businesses that would like to move a little bit faster what's necessary what's the state of the covid-19 in california at this point? >> it's finally turning a corner candidly i think we opened too fast i mean, i think your governor, the governor of new york, cuomo, that were more cautious about reopening. had we not reopened too fast, i don't think we would have had the spike we've had.

so we have to be very cautious everyone even in my district, a lot of small businesses, they want to open but they understand that we can't go certainly to having bars open again or indoor dining open again until we get the numbers of cases much, much lower. >> andrew? >> congressman, i just wanted to go back to the post office for a second even think beyond the elections, and i very much appreciate the perspective you have about just having confidence in the system and wanting americans to feel good about the election whatever the result the question i'd ask is about the economics itself of the post office, which i know some of it is going to come up today and the unfunded liabilities and the way that's been structured do you think that that's appropriate? >> i don't i appreciate your raising that in 2006 there was a law passed that requires the post office to put away 75 years of

preretirement funding. it was basically ham stripping the post office for being profitable i guess i have a deeper question we have a $740 billion defense budget no one questions that. why can't we have a $10 billion allocation from congress to make sure everyone in this country, including rural america, can get their mail there are 97,000 veterans. people don't realize this. 97,000 veterans who go become letter carriers and work at the post office because they view it as a way to continue their work at the nation. i think we as a country should be funding that. we don't need them to make a profit. >> congressman, let's switch gears back to business again in california do you think that businesses are starting to look around at the business operating environment and saying, i'm out of here, this has become too difficult here you are seeing certain tech companies, palentere moving to

colorado you saw some of elon musk's comments do you feel that the state is on a path to, you know, killing the geese that are laying the golden eggs >> no, i don't i mean, we are 15% of the nation's gdp just my district alone, apple which you were talking about earlier, $2 trillion market cap, google and some of the tech companies, they're not going anywhere i'll tell you, apple has just built a $5 billion extraordinary space sort of headquarters in my district, and california companies really, as you know, have fueled the s&p growth for the last five years. i mean, if you didn't have the growth of apple, google, facebook and the faang plus microsoft stocks, the s&p would only be up 12% most of those companies are in california and they're not leaving. now on the margins are you going to see some businesses go? perhaps. but the bulk of the economic activities are still in

california i think it's a good thing that these companies post covid are looking at remote work and putting headquarters in another part of the country, a second headquarters. >> just reading something from your district. l.a. county and the state declareddto purge 1.5 million inactive voters we do want everyone at the ballot box personally to make sure we do have that faith and confidence in the system, but both sides have different viewpoints on how we get that faith and confidence but i appreciate this morning and we love technology we love all those california tech companies just wondering, you know, whether they love california as much as they used to congressman, we appreciate it. thank you for your time. >> thank you thanks for having me thank you. >> all right andrew >> okay. coming up when we return, hook, line and sinker.

somebody paid nearly $4 million for a mike trout rookie card we've got details of the auction. we'll talk about it next as we head to a break, a look at some of the s&p 500 winners in the pre-market "squawk box" returns right after this jean, did you know geico is now offering an extra 15% credit on car and motorcycle policies? that's great! that's 15% on top of what geico could already save you. so what are you waiting for? john stamos to knit you a scarf? all finished, jean. enjoy! thank you. i give. the stitch work is impeccable. it's just a double fleck pattern with a reverse garter stitch. no big deal. is your hair this soft? softer. geico. save an extra 15% when you switch by october 7th.

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i'll let you in on a little secret. they don't. by empowering employees to manage their own tasks, paycom frees you to focus on the business of business. to learn more, visit paycom.com record-setting auction this weekend. an auto graphed mike trout rookie card sold for nearly $4

million. the card tops the previous record of just over 3.1 million paid for a 1909 honas wagner card in 2016 it was previously purchased two years ago on ebay for $400,000 by a las vegas sports betting consultant honas wagner i don't think it's autographed that makes it different that it's actually autographed by, i guess, mike trout. that's a lot to pay for a baseball card, that's sure you don't want to lose that flipping cards i used to flip them when i was a kid. the ones i didn't use in my bike with the clothespins to make the -- >> yup. >> i've told this story a million times. that's when i realized i -- i gamble a little now with not much money, but back then i lost almost all of my cards i lost pete rose, johnny bench, all my reds. >> right. >> i tried to win them back. i came home.

i was crying i was devastated i realized, you know, this greed that you feel for gambling to get more, it can really -- it can bite the other way i need to lay down on a couch and tell you about that. let's do that after the show maybe, andrew, if you could call me i'm going to lay down here and to this day i remember that. >> i collected cards, too, but i collected basketball cards my prize and i still have it in my parents' house in lucite is a michael jordan rookie card, it's in lucite, fleer, 1986 mint condition that's my -- the only thing i got going. i think it's worth something. >> probably worth something. >> i haven't gone to -- there was a magazine -- beckett was the magazine that would tell you the different pricing. we'd trade them. go to the card shows and do all of that stuff back in the day. >> you never flipped them? you never flipped them did you ever flip them

>> i was an investor i made a terrible investment, joe? i bought a case of fleer ultra baseball cards, first year, 1990 or 1991, still also in my parents' basement. i think that i could get more money for selling the cardboard that they were printed on than the actual cards themselves. it was a terrible investment so, no, i was trying to make a buck back then >> yeah. shocker. shocker. all right. still to come on "squawk box," we're going to talk big tech names with gotham asset management's joel greenblatt. the latest on the twin storm systems bearing down where we n'wae want them to bear, w dot nt them anywhere,gulf of mexico states all the oil rigs out there "squawk box" will be right back. instead of buying by the share. all with no commissions.

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let's get a check on the futures. the dow indicated up 276 points. s&p up 30 and nasdaq up almost 120 points up over 100. knee jerk reaction that we saw last night from the financial press was that the convalesce sent plasma news out of the trump administration was giving a boost to the european stocks u.s. stocks and maybe there's something, too we are seeing a boost to many travel-related stocks, maybe either from vaccine hopes if that were fast-tracked or any type of positive response to

covid. big gains on the sector. cruise lines also up this morning. big percentage moves most of the points aren't so big based on where the stocks are trading. big tech, facebook, google, apple, amazon. all mixed but in the green casino stocks, that would fit in with the travel, cruise-related issues as well andrew, you were in new jersey you could have done draft kings if you had wanted. we can do it, as you know, in new jersey if you wanted to get a taste of it, you can. >> in new york or connecticut is it -- >> no, no, no, no, no, no. >> not allowed >> no, no, no, no. >> i do not -- >> un-uh >> got it. i've been in new york and it's like, okay, i forgot to do that. i try. on your phone they know -- the police are there

you know, the gambling police are on your phone not allowing you to do anything anyway, take it away, andrew >> i used to know a bookie -- it's a longer conversation joining us right now to talk markets and much more is joel greenblatt, managing principal and co-chief investor of gotham asset management he's author of "common sense." joe, we're going to talk about the book in just a minute. first, want to talk about the markets and talk about a little bit of common sense because a lot of people look at the markets today. they're trying to make heads or tails of it and they think it doesn't make much common sense does it? >> well, i think some of the stocks people are worried about, apple, microsoft, google, facebook, amazon, all of those leading companies, they sell at slight premiums to the market but they have better growth. they have some of the best franchises in the history of the

world and so i don't think that's where the profit is if you look at every company over $1 billion in market cap that lost money in 2019, the first six months of the year those companies on average were up about 47% so i think some of the froth is in those money-losing companies that people think will be the next microsoft, google, facebook there can't be hundreds of companies that will be the best businesses of all time some will be big winners there's a lot of froth in that market it's not the big stocks that people are worried about that are driving the averages >> and the question i think for so many investors is should you be in the big tech stocks or do you imagine there's going to be a massive rotation when and if there's a vaccine? do you need to do that in advance into some of these cyclical stocks that have been beating down so badly? >> yeah, well, i think there's an opportunity set in the deep value stocks that have really been beaten down i mean, value has underperformed by 35% over the last year.

17% a year over the last three years versus growth and so, you know, obviously these are beaten down stocks. you know, if we get a vaccine in the next three, four months i think we have a shot that those come back pretty nicely, but, they've been beaten down pretty badly. >> what do you think this market is anticipating in terms of the market we keep looking past things and willing to look pastime lines people had two and three and four months ago. >> you know, the truth is i don't really know the answer when this all happened i do know that most of the value of the business comes from what it's going to earn a few years from

now. this is a one-time event most of the value will come from what happens after >> before we talk about the book, i also wanted to talk to you about the move of tesla and apple and how you even think about that and how much of these -- maybe tesla more so than apple how do you think of -- what do you think of story stocks? >> you know, i really can't explain tesla. i think, you know, there is a lot of speculation in the market and i think some of it is there. i really can't explain it. apple, on the other hand, has a great franchise and it's actually getting more powerful it's not much bigger premium than the market and, you know, it has great growth prospect i'm not too worried about apple. >> i mentioned both in part because they also are dealing with the stock splits. should the stock split really

matter >> no. stock split just means you divide the shares by, you know, twice as many. the company's the same. >> that's what i thought the market apparently doesn't agree. >> yeah, so i think that's part of the froth in the market plus interest rates are so low as everyone keeps saying there's nowhere to put your money. there is speculative parts of the market but i think it's more so in tesla than it is in apple. >> joel, you know, one of the big portions of this book that you spent a lot of time on is education. you talk about common sense and investing and the like, but so much of this is about fixing inequality in the system and you look at the markets. by the way, people think markets are creating inequality. you think the solution is an education story? >> well, you know, i read a lot about the subjects in the book one of the biggest is education. everyone knows quality and opportunity starts with education, but the facts are

that only one out of 11 minority students graduate college right now. but there's plenty of evidence to show that it's not from lack of ability so -- and we know that college graduates earn more than 70% of high school graduates. the question is what can we do under the current system that the system isn't working for in the book i present the idea of alternative certification as a way to work around the current system so, for example, let's say you want to work in the hr department at microsoft all under alternative certification all microsoft has to do is certify which task, courses or certificates they would judge for a high paying job in that department this could be a simple literacy test, online course, certificate program or game-based tests. invalis measured decision making, adaptability, critical thinking skills.

it's not like google, amazon, jpmorgan would have to create tests, courses, administer them, all they have to do is make public a list of which courses, tasks, certificates would be considered when selecting specific candidates for jobs i talk about how a whole ecosystem of supporting online resources and tutoring services would develop if there is a buyer for people who passed or did well in these courses or tasks. it wouldn't require government involvement. the cost would be much lower than the current system. >> joel, we appreciate it. there are a lot of great ideas in the book and folks should go out and get it we appreciate your time and perspective this morning. >> thanks so much. >> you bet joe? >> all right thanks, andrew coming up, bracing for a one-two punch. along the gulf of mexico the latest on laura and marco is next oil rigs, refineries in the area taking precautions right now

gas prices held relatively steady over the last two weeks the average price at 2.24$2.24 gallon whether andrew enjoyed having his gas pumped for him again while you were in new jersey that's like the -- one of the many things that make the garden state so special see, andrew is giving me a thumbs up, right >> loved it. every bit of it. >> he loved it >> totally >> yeah. yeah >> great thing. >> they will do that yeah they call it progress, pumping your own gas, smelling -- it's kind of an -- i like the smell initially but then i feel kind of sick. analyst chobe lundberg expect prices to fall and schools yw, quk x"omg ed anay"sawbo cin right back stay with us . the volatility. the ambiguity. the moment calls for more.

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welcome back to "squawk box. the dow up 261 points. nasdaq looking to open 122 points higher. the s&p 500 up 28 points take a look at shares of apple right now. morgan stanley upping its price target to $520 we should tell you that is the highest estimate on the street right now. that stock continuing to climb and if you ever thought there was going to be a row staying to cyclicals, apple may be one of the tech stocks that keeps up joe. unbelievable thing what's happening here. >> 520 that's like a sell 520 is like a sell what is that, $9 on $511.

>> in this market. >> but if it's -- you only look at -- what is that, 2% you say that's the highest price target on the street >> i think it's the highest on the street right now >> that's what i mean. so obviously -- i mean, a lot of large numbers got to take over eventually you're talking about the most bullish. up 2% from where we are right now or less. i don't know, that may mean it's going a lot higher with these guys, right? >> could be. could be momentum is a strange thing. >> and then, you know, once it splits, it's human nature, andrew it's always -- no one would ever disagree with you, that it's meaningless. when you ask -- well, it just means that -- yeah, we all understand that. we get it. we know exactly what a stock split does it doesn't change anything >> right. >> but historically it just

works and we've always talked about remember wicks, the reverse splitters work they go down it's hard to short a $3 stock but do a reverse 1 tore 10, get it up to 30 and it will be at 12 it just happens. you've seen that over the years. it's like the converse, right? human nature nothing has changed but it works. two major storms are on track -- you know what, andrew one thing that -- i don't know if you were here the day we had someone on, if you are going to do -- if you are going to acquire stock through a put, let's say you sell a put because you wants to acquire some stock, it's 100 shares. >> right. >> you can't do it when the stock -- if you want to right covered calls, do any of the option strategies -- >> right. >> -- that the najeri are talking about, you can't do it

one option is 100 shares that's something to consider. >> right. >> it does change that dynamic. >> yup by the way -- >> go ahead. >> no, no, i was going to mention i also have people calling us or sending in emails a week ago, robinhood lets you buy in fractions you can't buy in fractions in a 401k plan. maybe there are advantages in certain ways who notion. >> dealing with the delay. i'm back to the nasdaq tomorrow, andrew at least the delay will be a little bit less. >> new york's coming back, baby. i was just there over the weekend. it's coming back. >> it's crowded. >> it's coming back. >> i was there yesterday it's crowded people are out and about anyway, i'd like to stay there we'll see what happens i may only be back for a little while. two major storms are on track to hit the u.s. gulf coast this week louisiana, mississippi and texas are bracing for dangerous flood

waters, storm surges tropical storm marco is going to make landfall in louisiana expected today it was downgraded from a hurricane last night tropical storm laura is already hit puerto rico and the u.s. virgin islands, dominican republic and haiti laura is expected to make landfall in louisiana on thursday and strengthen to a hurricane. officials are warning there may not be time for repairs and search and rescue in between the two storms meanwhile, 44% of u.s. oil refining capacity is in the path of the two storm systems that number jumps to 50% if either storm hits corpus christi, texas according to the latest noaa data, this all sounds very familiar to me, this will only be the third time the two tropical storms are in the gulf of mexico at the same time the last time was in 1993 and

1959 just move a paragraph so that something's different about what i read last time either way coming up, the future of smart transportation former gm vice chair steve guersky will join phil lebeau to discuss the electric vehicle market in the rise of the spac in the ev space. in the next hour, white house trade advisor peter navarro is our guest "squawk box" will be right back. ♪ [ engines revving ] ♪ ♪ it's amazing to see them in the wild like th-- shhh. for those who were born to ride, there's progressive.

welcome back to "squawk box. spac companies are going public in a $3.4 billion merger with blank check company gores. phil lebeau has a very special guest. phil. >> reporter: thank you very much, phil let's bring in steve guersky you were the man who brought nikola through vecto iq. you brought it to a market a few months ago we're going to talk about that in a minute. what's your reaction to luminar? >> good morning, phil. good morning, everybody. we're an investor in luminar in the pipe and in the company. i think this is the broadening out of the investments in this space. it started with ev companies and

you're going to see it move to infrastructure and component companies. if this is all going to work, you're going to need more capital and this is up and down the value chain. >> for people at home, luminar is in the autonomous vehicle range. nikola when you brought them to market through a spac ipo, you believe that people don't understand that the hydrogen fuel cell is the play. the ev component gets a lot of play but the hydrogen fuel cell in your opinion is perhaps the more valuable one? >> we thought it was more than a truck company, more than an ev or hydrogen truck company. hydrogen stations, energy storage. a lot of businesses rolled up into one which we thought was attractive. >> what do you think about all of the spac ipos we've seen? especially in the ev space there are some people looking around saying we've hit the

limit. the pool is limited with what can be tapped in the future. have we hit the limit with spac ipos? >> as we said before, i think there could be more, but i also think it's going to broaden out to infrastructure, component suppliers, things like that. listen, it's surprising how many have come out. i think it's a lot of things came together. we have low rates. we have rise in esg investing. we have an unstable traditional economy and the rise in the retail investor all came together at the same time. this has a huge potential total addressable market and people are pushing out on the risk curve here. >> steve, you served for a number of years on the gm board of directors you know mary barra and the management team well from all of your years there from 2009 through 2016 should gm spin off its electric vooek assets >> listen, i can't speak for mary or what they're doing i'm sure there's frustration inside there as there are in

other oems there's significant intellectual property around electrification, hydrogen, natural gas. i think they don't think they're getting credit for t. how do you get credit and say let's spin it off. that's not easy. there's accounting issues, business issues. are these embedded in your business it would be better to get exposure and highlight the businesses as they've done with their autonomous business in the past. >> steve, how great are their assets you know the industry well there are people who look at gm and they don't fully appreciate everything they have within their electric vehicle arena and what they've worked on from your perspective, how great are their assets >> we used a lot of ex-gm people to help us so i think highly of the people there and those who developed it other oems have it also. the germans have it.

others have it around this space. they're late the tesla model s is 8, 9, 10 years old. best selling car in california in its class for a long time and the germans arguably are just trying to catch up now >> you talk about tesla. we only have a couple of minutes left what are your thoughts as you see the stock continue to move higher and higher and higher >> wow my analyst days are long gone you're talking to a guy that bought it at 170 and sold it at 240. i'm not sure i'm a good judge here but i do think what they've done is quite amazing. >> go ahead. i cut you off there, steve do you think this continues? >> it's quite amazing. it's more than just -- if you believe it's just a car company, it's one thing they have the largest share and the fastest growing segment in the market globally and that's worth something. >> worth quite a bit right now a stock that is now trading, what, over $2100 a share pre-market steve girsky, the man who

brought nikola, ev spac to the market as part of the vecto iq team i know we'll be talking with you more, especially in light of this luminar news and other ev spacs coming to market. >> thanks. >> you are very welcome. thank you, phil. coming up, we'll talk to white house trade advisor peter navarro for the latest out of washington then later we'll talk to the cfo of row cku for the latest on streaming. of the greatest game shows in history. during that time, we handed out millions of dollars to thousands of contestants. and i thought, what if we paid the contestants their winnings in gold instead of cash and prizes? back in 1976, we had a wonderful contestant named lee whose three-day winnings were valued at $12,850, and you know what? that was a pretty big haul back in 1976.

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good morning s&p 500 with the longest market gain apple up another 2%. morgan stanley gives it a new street high price target the trump administration green lighting emergency use of a blood plasma treatment for covid- covid-19 it comes after the white house puts pressure on the fda we'll speak with peter navarro about that and the latest in the tech cold war between the u.s. and china. and two tropical storms churning in the waters south of the u.s. mainland. marco and laura. marco's expected to approach the louisiana coast this afternoon we're going to break down the business fallout for the all important oil. the insurance segments the final hour of "squawk box" begins right now.

good morning welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with joe kernen. becky is off today take a look at u.s. equity futures. they are rocking and rolling on this monday morning. dow looks like it would open up 267 points higher. s&p 500 up 30 points right about now. nasdaq looking to open 135 points higher. meanwhile, let's show you treasury yields. you can look at the ten-year note trading right now at .643. joe? >> lots of stocks on the move this morning beginning with apple and tesla. both getting ready to split their stocks apple just got its price target up at morgan stanley to a street high $520 a share. already mentioned it's almost there anyway

today is a record date for that apple split. that means shareholders as of the close of business today will receive three extra shares for each one that they own now both apple and tesla will be trading on a split-adjusted basis next week. and with the futures surging, have a look at the airlines sector higher on vaccine and reopening hopes in the u.s cruise lines, casinos, all the usual suspects also up this morning really on this news. andrew >> meantime, the trump administration granting emergency authorization for covid-19 patients to receive convalescent plasma. that as a treatment. convalescent plasma is a part of the blood that contains a high number of antibodies it's taken from patients that have recovered from the coronavirus and infused into current covid patients it's controversial because there's no conclusive evidence that it is shown for the treatment to work. the new authorization coming shortly after the white house complained of politically

motivated delays on virus vaccines and treatments at the fda. for that and so much more, eamon javers joins us to take us behind the scenes in washington right now. eamon? >> reporter: yeah, good morning, andrew this is an emergency use authorization. what that is is one level down really from full fda approval. it means what they've concluded is that the potential benefits outweigh any of the potential downfall from allowing folks to use this as a treatment for covid-19 the convalescent plasma, as you say, the idea here is to take the plasma from people who have recovered from covid in theory that's full of antibodies to fight the disease and infuse that into the blood of people who are suffering with it right now the president claimed political victory for that yesterday at the white house and also hinted that there might be some more vaccines coming. here's what he said. >> it's only made possible because of operation warp speed,

that is, everybody working together we're years ahead of approvals than we would be if we went by the speed levels of past administration we'd be two years, three years behind where we are today, and that includes vaccines that you'll be hearing about very soon, very shortly >> reporter: the president there saying you'll be hearing about vaccines very soon, very shortly. andrew, obviously this was a controversial decision over the weekend. it came after a couple of days of the president feuding with his own fda tweeting out that he felt that the fda was full of deep state people who were working against him and trying to delay any therapeutics or vaccines until after the election so there's some controversy there. we saw nancy pelosi, speaker of the house tweeting back saying the fda should only approve any kind of treatment based on the medical merits alone, not on any political pressure i'm sure we'll hear more about that you can also expect some of this

trump administration effort here to take center stage tonight as they begin the republican national convention. a big slate of speakers here tonight including don jr donald trump jr. will be one of the featured speakers tonight and we'll see as the campaign rolls out in full force beginning this week how this virus response takes center stage in the president's campaign for re-election, guys some of the key rnc speakers back over to you. >> eamon, let's talk about that convention we saw pictures of the rose garden which has been renovated. it's apparently where the president is going to be speaking from. there's controversy about using the white house as a backdrop as you will for the convention. i don't think that's been done before what are the other themes you're anticipating we'll be hearing at the convention this week >> reporter: i think this is going to be a lot like the democratic national convention in one sense and one sense only. the democratic national convention is going to be all

about donald trump the republican national convention is going to be all about donald trump you're not hearing a whole litany of policy issues. not hearing a whole lot of specifics about what each party will do if re-elected. the president's been asked a number of times what he wants to do in his second term and he doesn't have a fullsome answer to that other than keep on keeping on doing the same. this is not a policy oriented convention that you're going to see this week. this is about why you should re-elect donald trump and why the trump administration is good for the country and why biden, conversely, would be a disaster in the president's words >> okay. eamon, thank you so very, very much. >> you bet. >> we'll look forward to hearing that convention this weekend you are reporting on it. joe? >> thanks, andrew. let's stick with the new fda authorization for doctors to use convalescent plasma on coronavirus patients former fda commissioner dr. scott gottleib told us earlier

on the program he thinks the emergency usage is the right call >> i think that this could be beneficial it might be weakly beneficial. it doesn't look like a home run, but right now we're looking for, you know, singles and doubles. there aren't really going to be any home runs on the horizon until we can get the other therapeutic antibodies on the market and other vaccines and better therapeutics. >> that new trump administration authorization follows a weekend tweet by the president in which he tagged the fda commissioner, he tagged him, and accused, in his words, deep state elements at the agency of making it difficult for drug companies to recruit test subjects for vaccines and therapeutics. yesterday axios reported that that language closely tracks with an accusation white house trade advisor peter navarro leveled at senior administration health officials in a meeting last week. joining us now is peter navarro,

assistant to the president. >> hey, joe. >> director of the office of trade and manufacturing policy hey, peter so there's an old expression, i use it a lot, that is just because you're paranoid doesn't mean people -- >> doesn't mean you're right. >> doesn't mean people are out to get you i don't know whether that's a bridge too far the fda is always criticized for not moving fast enough when you're trying to balance safety versus promising new therapies across t bohe board people are saying, why not just use it why bring up deep state sort of political, i don't know, conspiracy theories to explain what's just the normal functioning of the fda, peter? do you really think there's anti-trumpers in the fda slow walking this >> by the way, i got a great idea for the great reveal for andrew and the tattoo -- the kernen tattoo. donate some blood, andrew, and

we'll give you a twofer. let's talk seriously about this convalescent plasma because what we have in donald j. trump is a right to try president what we have now is not normal times. we have extremely abnormal times where americans are dying every day and there's a struggle now philosophically in the medical profession and the analogy is what ben franklin once said about it he'd rather let 100 guilty people go free than have one innocent person be in prison what's the analogy here? it's simply that i get the feeling sometimes that the medical -- some of the medical folks would rather have 100,000 people die from the virus than have one person die from some of the therapeutics i think convalescent plasma is like the poster child for this this is not controversial, joe

convalescent plasma, which is basically using the antibodies from somebody who has been infected, give the antibodies to somebody who is fighting the infection. this has been around for numerous things for decades, right? and the odds on the safety end the odds of somebody being hurt by this is close to zero and probably zero. the odds of this working is close to 100%. so in that case why would you drag your heels? it was great what the fda did yesterday. it could have been done a week before or a couple of weeks ago based on convalescent plasma so what we're trying to do, joe, is it fight a deadly virus that came over from china that's killing americans. this president is moving on all these different fronts and trump time which is to say as quickly as possible. sometimes, joe, he's having to fight portions of the scientific establishment that are risk averse in a time that is not

normal so for me, anybody who tweets about convalescent plasma in a negative way, for example, like dances with scarves pelosi did, that's just wrong. that's politicizing the virus. that's kind of my take on that >> okay. nancy pelosi's one thing, she's a democrat on the other side what you just described is that the fda has a propensity to be careful and safe you're actually -- or at least we're hearing that you are int tim ma imating that there are people that don't want that do you believe at the fda people are slow walking treatments so that the president doesn't get re-elected do you really believe that >> all i see here, joe, are treatments, therapeutics that could be saving lives that come

to us a few steps behind remdesivir, we all agree that remdesivir is an excellent treatment but, you know, that took too long to get so that's all i have to say on the subject. i do -- if i may, i've got a couple of pieces of breaking news i'd love to share with you. any interest in cnbc land? breaking news? >> you understand why we're asking you >> i've asked and answered i think it's important >> go ahead. >> a couple of things. machinist local s6 voted over the weekend, 87%, to settle the strike which was at bath iron works in maine why is that important for your viewers? for one thing, general dynamics builds the arley burke ships there, the destroyers. that will be fullback on i think it's a case where it shows the white house and

organized labor can help each other out. i got a call a couple weeks ago after the strike had dragged on from a great guy named jimmy hart from the afl-cio. we helped a little bit to get everybody back to the table. what's nice about bath ironworks, to me its a a symbol of trump, economic security is national security. great jobs there and building destroyer. here, joe, here's what's interesting about bath we basically recruited bath to build sophisticated machines for the puritan swab in gilford, maine. it's an example of repurposing factories. the other piece of news that's interesting on the trait front, a couple of months ago i went with the president to bangor, maine. we were given a hat trick of challenges from the lobster fishermen in maine they were getting hammered by the chinese on tariffs

they were getting hammered by the canadians. so we were able to quickly solve the china problem. two parts of the hat trick, but on friday ambassador lighthizer announced, this is beautiful, he got the european union to drop the tariffs on american lobsters why that was important is canada had made a deal with the european unions to have a zero tariff on lobster and our folks in maine were absolutely getting hammered so big victory on trade. the people in places like jonesport, kittery and casco bay were getting hammered. this is how the president forms jobs i can go across the country and show you state by state how he's doing that. >> can you comment on this report today that mark zuckerberg is influential in formulating policy about tiktok?

have you seen that story, peter? >> you see what i'm showing up here, zero zero influence of mark zuckerberg on any of that tiktok that's the first time i ever heard of it, and i saw -- you know, i was witness to how that unfolded let's be clear, what the president is doing is not really about tiktok, it's about tiktok and wechat and all of these other chinese software companies that are able to collect data on american citizens, ship it over the chinese servers and share it with the communist party and the people's liberation army i'm always amazed how some of these stories pop up, but that one for me has zero credibility because i know that he had nothing to do with anything that happened here in the white house. >> andrew? >> can you give us -- can you give us some color on where the tiktok negotiations stand?

we understand tiktok will be filing a lawsuit today against the u.s. government. i really want to understand whether you think it's a microsoft or oracle or whether you think there's any other real bidders out there and how quickly this can come together given the time line that the administration has put on this >> i'm not -- andrew, i'm not really deeply involved in the actual sale negotiations i can say that it was, i think, encouraging to have oracle step in i think i expressed some concerns previously with you guys on cnbc about microsoft and its ties to communist china. oracle is one of the toughest, smartest companies on the planet and they've been absolutely meticulous about making sure that the chinese communist party has zero influence over them let's see, as the president loves to say, let's see how it pans out the bigger issue here is protecting

it's kind of like the joke i made about that which is too serious. it's like 8:30 in the morning do the mothers and fathers of america know where the kids are or do the chinese communist party know that's a problem >> any update since last time you were on, peter, about phase one or phase two it seems like all these data points with tiktok or with wechat or any of these things all seem to indicate that it's going to be tough going on a phase two or even making sure phase one works. >> so phase one is going great the chinese communist party is buying historic levels of corn, soybeans, beef, pork president's very happy with that we're very happy with that what's also happening, it's very clear that the chinese communist party would prefer joe biden to be the next president.

they actually editorialized in "the global times" which is the pragda of china just a couple of days ago saying that joe biden would be the smooth, nice guy that they could basically roll over like they did for the last 40 years with them so i think china, the chinese communist party and the democratic party have kind of common cause into beating donald j. trump so, you know, for the american people it's time for us to understand that and to fight back against that. because the last thing we need is another presidential administration that gives away all of our factories and jobs in the south china sea and everywhere else to the chinese communist party. >> all right peter navarro, thank you >> all right. >> appreciate -- >> donate plasma, andrew i want to see that big reveal. >> he's obviously not afraid of needles. i mean, i hear a tattoo -- how much -- >> that hurts.

>> how much hurts, sorkin? >> that hurts, right >> yeah. >> it hurt >> given blood will be nothing for you. >> you saw it, huh, pete i'm going to get one of andrew. >> i'm going to get one. >> i'm going to get one. >> brothers, you take care >> i'm waiting. >> going to get one of navaro. >> thank you, guys. >> i hope becky doesn't get in on this act. come on, boys. >> no. no when we come back -- >> thank you, peter. when we come back we're going to talk about going back to the movies we have early box office data as more theaters reopen roku's cfo is going to tell us about what the pandemic is bringing into focus. shares of blackstone stepping in to buy tedaka's pharmaceutical for $2.3 billion. stay tuned, you're watching "squawk box" on cnbc

it's a monumental moment for the industry it's been hit by the pandemic. it's a much different experience for audiences. julia boorstin joins us now with more hey, julia >> reporter: good morning, joe this morning 1700 u.s. theaters were open. that's 1/3 of the number of

theaters that were open the same weekend a year ago according to comport. the first was "unhinged" from russell crow it drew $4 million in domestic ticket sales that would have been seen as a disappointment but now it's seen as a sign of demand. we talked to people from inside a theater about what movie going is like now. >> there's no one here yet but this is one of the showings that was supposed to be kind of filled up, although filled up means 40% as i think it means. i was in one of the biggest theaters, there was 25 people there and that was sold out. the only aspect that gave me cause for concern was when i saw a bunch of people going into the theaters and once they sat down they took off their masks. it was dark and they could feel like no one saw them i'm passionate about going to movies in person, making sure we keep the big screens open. hearing other people laugh when

you laugh. hearing other people gasp when you gasp it's part of the experience and we shouldn't lose that >> reporter: now seven states including california and new york, those states typically account for a quarter of box office revenue are still not allowed to open their theaters now we're watching to see what kind of turnout disney gets when it debuts next weekend joe? >> okay, julia $4 million seems like a low box office total but i understand why that's pretty good, a positive sign given the rollout, right? what percentage are we talking about really of full >> reporter: well, i think the key thing here, joe, $4 million is very low, especially considering the budget of the movie was reported at $33 million. there are tens of millions of more dollars to market the film. this 4 million is seen as a sign

of consumer demand because there was an increase between the friday and saturday box office numbers indicating that word of mouth was strong not just about the movie but about the whole movie going experience so that friday to saturday increase is really being pointed to as the key piece of hope there. >> all right i'm excited about -- it's hard for me, julia. "tenant" which is forward and backwards, it's stel "tenant" or mulan. >> they have to do two different things "mulan" is going to be released on september 4th and released around the world "tenant" is going to do a staged release. this is the beginning of a new era where movies are distributed in different ways. some are going to be released in theaters and available at home three weeks later. some movies which studios have a huge opportunity in theaters, they'll just leave them in

theaters i do think we're going to see more movies go direct to consumer on demand the super hero movies, the "tenants" of the world designed for a theatrical release. >> okay. all right. julia, thanks. andrew, waerp talking about "mulan" with wilf who, you know, he can't say it, you can't see it he's obviously never seen. the other one, did your kids finally see the "mulan" 1 or 2, animated disney versions >> i think we saw one of them. yes. i don't know which one. >> it's good >> i know we're planning on spending $29.95 or whatever it's going to be. >> oh, my god. >> on this next one. >> did you have to have a family meeting to decide that was that an easy decision for you or did you finally take a vote >> you know, joe, it's a very

egalitarian operation the sorki family isrunning anything over a $5 price point we all have to discuss >> i got it. i got it >> it's going to pay off down the road. >> you know, joe, we're all limited partners you know who the general partner is. >> yes >> you know. >> right non-voting shareholders. >> non-voting. non-voting i'm not a controlled shareholder. while theaters were closed during the pandemic, the shift to streaming accelerated the u.s. household watch 662 minutes of streamed content in july. that's up 92% from last year increasingly crowded nature of the business has led to some standoffs between streamers and platforms. joining us to talk about all of this is steve loudon, the chief financial officer of roku. so much to talk to you, steve, about. i want to get in just a second

to some of the clashes that have happened now between some of the platforms and the streamers but i think the one big question i have is do you see this as a long-term accelerant, which is to say that a year from now in a post vaccine world we're going to be watching this much of tv do you think this has pulled all of this forward into a remarkable and unique moment in time i shouldn't say remarkable, upsetting and terrible for so many. >> good morning, gentlemen it's good to be here we do view covid is accelerating long-term shift to streaming that helps the streaming industry roku has the leading streaming platform in the u.s. that has accelerated our active account growth it's accelerated streaming hours. we do think this is getting to the longer term trend growth that was a bit faster.

>> let's just talk about some of the battles over getting on some of these platforms because the platforms have become very, very valuable you have lots of streamers all trying to get on them. some willing to pay, some maybe not willing to pay >> yeah, for roku, you know, we aspire to have, you know, relevant content for folks we have a great mix of free ad-supported content for folks we also have subscription services as well as you were talking about, you know, the transactional video on demand and direct to consumer releases. we have that as well so, yeah, we aspire to have the most diverse set of content for people to view and they can pick on how they view it. the consumer, once they have access to the roku platform, once they have the operating system built in, they don't pay the platform directly to access

content. there's a lot of choice on the platform and thousands of apps to choose from >> no, no, but what i'm really suggesting is that the streamers themselves obviously have to pay some percentage in all of this and my question to you is at some point do you think there's going to be an argument that a roku could have too much power the reason i ask is there's a big debate whether apple on their own devices has too much power in terms of which apps are on their phones, which streamers are going to be on your platform, for example? >> well, i think, you know, roku is the leading streaming tv platform in the u.s. certainly, you know, there is a large tv ecosystem with content producers, advertisers, retailers and then the consumers, of course you know, historically we have taken a neutral position and so, you know, really we're open to having all content on the platform we've structured our revenue

streams with content producers so that when they do well on the platform, we have -- share in a portion of that. i think the important thing to note on that front is that the content producers that are leaning into roku and leaning into streaming are winning in that and disney+ is a great example. you know, they launched in q 4 and they've made tremendous growth we're a strong partner with disney they've leveraged our audience development capabilities to build up a strong base on roku and elsewhere. >> steve, tell us then, where do these negotiations stand with the likes of hbo max, peacock owned by our parent company, are those clearly not on your platform right now what's the problem what are the fault lines in those discussions? because clearly the platform as you just described is not neutral insofar as it's

negotiating on behalf of the company with or against other streamers. >> yeah, we don't talk about any specific deal or negotiations. we do aspire to have all of the content on the platform. because the consumer is not paying roku the economic model for row can you is related to these content distribution agreements on one side and then advertising revenue is one of the other pieces of monetization for the platform that is necessary for us to continue to invest in the business, both in terms of developing great players and the tv operating system as well as continuing to innovate in the user experience. so as i mentioned, you know, our revenue model is in the form of advertising as well as revenue shares when we sign up new subscribers or there's transactions on there. you know, certainly there's -- we have thousands of apps and a lot of times these apps are either on the platform or

renewed without anybody really noticing occasionally we do get some sticking points but, you know, hopefully we'll be able to get through those. >> okay. steve, we really appreciate you joining us hope we can continue this conversation watching your growth has been a remarkable thing there are so many different issues in the space that you are living in right now. look forward to talking to you again soon, steve. >> okay. thank you, gentlemen. all right. coming up, could d.c. dysfunction lead the economy into a double dip recession? we're going to tell you what top economists are saying in a new poll out just this morning check out the biggest pre-market gainers in the s&p 500 stay tuned you're watching "squawk box" on cnbc

"the news" with shepard smith will premiere on september 30th 7 p.m. on september 30th andrew >> set your dvr, but really watch it live. looking forward to see what shep's got in store. meantime, when we come back on the other side of this break, the potential cost for a summer of natural disasters

even as the pandemic continues to pull at government resources. some economists say we are about to have another recession. new forestca data just out we'll bring it to you when "squawk" returns after this.

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welcome back to "squawk box. a new survey released today showing economists are beginning to worry about a double dip recession. steve liesman joins us now with more on that steve? >> reporter: good morning, andrew the national association for

business economics concerned that the economy now in recession could emerge from recession and then jump back into recession if you look at the findings here, 80% see at least a 25% chance and then you go up 32% see a 52% chance that once this recession ends we go into another one. maybe one of the reasons for this, it's not clear in the study here, the survey why they think that you can see 40% believe that the response of congress so far is insufficient 37% say it's adequate. just 11% find the response to be excessive. looking at other findings they have, they see the recession, the current one we're in, ending sometime in the second half of this year. that's the plurality at this of the survey by the second quarter of 2022. we've had other surveys that we've done finding a similar

thing. fiscal package, $1.5 trillion or higher the thing we've been reporting last week, which is a terrible number, 40% of business closures will be permanent. i want to add though that this concern about a double dip recession comes when our cnbc rapid update at least for the third quarter is tracking 25.6, call it 26% and that's about five points higher than where we started the quarter. this is the tracking survey. we'll see if other data we get next tends to put that back towards the 20% level. it's a pretty good looking rebound, andrew. i'm reporting that these economists are concerned about double dip recession andrew >> steve, just walk us through what they think could cause the double dip recession sort of what are the pieces of this that they're thinking about? >> so in general, recessions are

caused by policy mistakes, one or the other either you have a downturn in aggregate demand, then you don't respond correctly fiscal wise. the physical response is one area a precipitous course is the federal reserve and this may be more importantly a proxy for a second wave of the virus, andrew that would be the sort of thing that would cause it. you can see the economy will be coming back. i'll be looking at the high frequency data i was letting it mature a little bit to see how it handled the end of the unemployment insurance and some of the other aspects that have been going on with the virus i'll take a look at it this week my latest read is that it had been stable to slightly down i'm trying to see if it comes back with some of the decline in the virus numbers. i think the second wave of the virus numbers is the most likely thing that would cause another recession. >> steve, you know, i -- we

don't -- i don't think the economists need to be needled or sort of made fun of or anything. do they watch cnbc do they follow the stock market at all i mean -- and i understand -- >> they do. >> -- that there is a huge controversy about whether stock prices are either inflated by the fed in all the stimulus, in some type of bubble territory, the underlying economy, i understand all of those things i would think we would get some type of indication with the stock market double dip. it's one of the leading economic indicators it's a very good one not just voodoo economics that they forecast economic strength. it's used in that way. the irony of hearing that and hearing, you know, these guys talk a double dip, here's why.

in the absence of even mentioning that we hit a series of new highs last week, to me it just -- you know, it's kind of silly. it could happen. >> i get that, joe >> i know you do. >> joe, i get that. >> you're an economist >> my outlook is not -- no, my outlook -- i don't represent them i report on them my outlook is not for a double dip recession. i think we come back, we come back slowly. my bigger concern is how this -- how long this current recession will last and we don't do enough to get us out. that's my biggest concern, double dip joe, when you have a market, i'm interested in your thoughts on this very much when you have a market where earnings are up double digits but revenue is up single digits, what's that telling you about the economy? it tells me the economy is not doing that great but it tells me that companies are adapting to the current level of demand

that's out there it's not telling me that eventually companies are getting their act together to eventually prosper, but they're right sizing in a way that has negative effects for overall macro economic growth. >> steve, i harken back. we had the former ceo of frontier airlines on last week we were almost giving him the mantra, the narrative that the new normal is here for good. he goes, i don't -- i don't agree with that. i think 6 to 12 months we will be back to the old normal. i mean, the revenue problem, the earnings problem, the closures, all of these things -- >> i agree with a lot of that. >> if there's positive news, we may not be talking about all the things that are staring us right in the face right now 6 to 9 months -- you know, it's the age old question. >> i agree. >> -- is the market right or wrong about what the market is forecasting? >> i would just say personally,

i don't miss getting on as many planes as i got on i think you traveled almost as much as i did, joe i don't know about you, but i don't miss the plane travel. i've learned to live without it and i'll try to learn to live without it less when we come back i agree, it's possible to come back >> right. >> my concern is the permanent damage it's done to the economy. 40% of stores that close and can't reopen you hurt the credit rating of the small business owners. you have a whole process of bankruptcy and debt workout. that's more my concern is the kind of scarring that's done to the economy as we adjust to get back to what could be normal and i sure hope the music business comes back pretty soon, joe. >> okay. good all right. thanks, steve. joining us now to talk about a lot of these issues, the market impact of the economic turmoil that we're seeing is noah blackstein. did you feel like talking when

steve and i were talking you could have piped in, noah? what are your comments on the discussion we just had what do you think? >> to the extent of how much -- if the pandemic did anything, it paused sort of what was going on today in the overall economy, but a lot of the areas that are showing weakness had difficulty especially in malls and retailers. they were in trouble before this whole pandemic started whether it was a shift to ecommerce or even foot traffic in malls to the extent that some of these areas that were in trouble before the pandemic accelerated through it, i think that that's kind of what happened. but, i mean, a lot of the economic data is terrible but it's government induced terrible by shutting the overall economy down so, you know, the ability to reopen is important and then the willingness of consumers to re-engage. i think there's some uncertainty around how unwilling consumers are to re-engage but we just have to see. that's going to weigh on some of the more troubled places lik

cruise lines, airlines, other things like that it's going to be tough for mom and pop restaurants with all of the rules and capacity i don't think restaurants can operate at 50 or 60% capacity. you know, it's probably the opening line of dickens tale of two cities, the most over used line in finance for think pieces, but it truly is. there are other places which are benefitting from what's happened and other areas that are accelerating because of it so, you know, we're trying to figure out the areas to be involved with longer term and some of the other areas were in trouble before and that's -- this pandemic has just accelerated that >> so you heard some of the comments about just where earnings are, revenue, things like that. will time take care of a lot of these concerns, do you think the underlying economy catch up with the stock market, noah, or vice versa >> i did like the piece that was

done likening the pandemic more to natural disaster. the example was katrina and then the rebound in the economy i do sort of feel that, you know, we shut things down as things have begun to reopen things are coming back for sure. like i said, there will be areas that will be more difficult to bounce back and there were areas that were in trouble before and it accelerated i also do think habits do change a lot of demand is getting pulled forward we've heard from technology companies, one technology company said digital transformation was accelerated by two years i've seen other surveys saying it was six years a lot of what's happened in the pandemic is changing habits. a lot of things people do are habitual some of these habits and some of these ways that people shop and the way people access data and where people work, they have likely been changed to some degree permanently >> all right noah, we'll keep it short today. we have other places we want to get to before the end of the

show appreciate it. >> thanks. >> we'll have you back on very soon andrew coming up when we return, the latest on those two tropical storms moving closer to the united states mainland what this season of natural disasters means for individual finances and uniquely insurance companies. we'll talk about it tethafr e break when "squawk" returns. stock slices. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow.

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texas bracing for a one-two punch. two tropical storms expected to make landfall this week. let's go to contessa brewer for more on the potential insurance industry impact from the storms in what's already been a whole season of natural disasters. contessa, good morning >> reporter: some natural and se manmade, joe property and casualty stocks have taken a real hit this year. the industry expects there to be an impact on it significant bond holdings, as well. really no wonder insurers are getting slammed from all sides higher losses from covid-19, civil unrest, significant liability exposure and catastrophes including hurricanes and wildfires we've already broken records early in the hurricane season and just entering the peak time for these big storms fm global is warning commercial customers of the elevated risk in the gulf because of higher, warmer seas. and in california, the fires are moving faster and burning hotter than ever. putting properties formally

considered low risk like storage facilities at high risk. the insurer told cnbc, a real wake-up call for commercial property insurers as prior to that wildfires weren't really a major concern because of where the property was located that is all now changed and why the current wildfires occurring in california is a major concern. the american property casualty insur insurer's association told me it is a very challenging year, that might be an understatement the industry they say will be stable as long as the biggest threat to their stability doesn't materialize that lawmakers force them to cover business disruption claims related to coronavirus joe? >> yep now we add the oil industry into that and the type of damage it's done to rigs and everything else that are in the gulf, contessa we'll need you to stay on that beat thank you. coming up, we're going to

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get to cnbc headquarters and jim cramer joins us now. has the high price started on the street which is like a percentage point above where the stock is right now, jim. so, when the highest price target on the street is basically where the stock is, is that, obviously, the analysts are either going to need to raise their price targets above where they are or do we believe the stock's getting close to fair value at this point >> i think that what katie is trying to do here is portray the company as the best tech company that has a very good revenue

stream best annuity scream and a consumer packaged good stock with the procter & gamble multiple i think what -- the way to look at this one is to say if they hit all the numbers she said and the stock should be substantially higher, but they have to do it. i don't think this is any retreat from her i do think thatthere is also a very good explanation about app store risk, which i really like and a good explanation about some of the parts, which is very good you know, look, should she have taken $600 this is more of a piece that just says there is a lot of skepticism, about $2 trillion. but maybe $2 trillion is justified. in that sense, pretty good research, rigorous >> right but, you know, when we do the story they say they raise it to the highest on the street. i think we need to see it's at 513. the highest on the street is 520. no one buys a stock to go from 513, at least i wouldn't

>> very much like invidia. 19 price target bumps and most of them took it to 490, 480. up to 525. does that mean you should sell it enthusiasm for some of these stocks that basically says, listen, we'll over run the price targets and you have to raise them then. >> it's a stopping point maybe the stopping point and then we can go up from there no, i understand that. all right, jim, do you think about gardening while you're at work >> i do. but there was critical freezer space shortage we're trying to put it anywhere we can until we give it away just too many. too many cans. what can i say the cans its arer t it's the cans >> all right see you later. thanks, jim. we'll see you. talking about -- uctalking

about apple, guys. two stocks weirs we're watching this morning about to split apple and tesla morgan stanley analyst out with his new price target for more on the markets, we're joined by stephanie link and portfolio manager and cnbc contributor. stephanie, you look at both of these companies. i don't know, they already moved. they already moved on the split. is there a reason for them to move more? by the way, we always debate whether they should be moving. >> i know. i know and i don't really understand the tesla move other than to say that people like the product it's an esg play they believe in the company. and, so, it's taken off, obviously. apple i kind of understand and i think katie huberty had a good note out today. she only went to 520 her prior target was 431 i thought she made a good point by saying the last four

quarters revenues only grew 6%. earnings grew 12%. free cash flow grew 24% all in the face of the iphone being down 1%. it speaks to the stickiness of the customer base. it also speaks to the ecosystem that we talk about all the time in terms of products and services it really should be maybe compared to a consumer products company and if you do that, it's trading at 25 times free cash flow and that's a 10% discount to the consumer product companies. you could make a case that the fundamentals really do matter here i think less so on tesla quite frankly because a lot of questionmarks on whether or not they can produce the amount that they talk about in terms of the vehicles >> okay. so, stephanie, different question all morning we have been talking aboutthe possibili about the possibility of the vaccine and in so far do you

think the stock loses some steam or an amazon or netflix or do you think they maintain and more money just comes in from the outside into some of these cyclicals that have been otherwise unloved? >> well, $5 trillion in cash on the sidelines, right in money markets so, it could come from there i think you could see a bit of a rotation in some of the high fliers but, actually, i would say maybe not so much apple because that's a 5g play. that's a reopen play so, i think apple can hold its own in that environment. but i think you want to still have exposure, andrew, to secular growth tech because they have these amazing, total addressable markets and this amazing growth potential and i think that has onlybeen helped by the fact that we're stay at home, work from home and probably never going back 100% to where we were so, i think there are winners in tech but i also do think if you get a better, if you get a vaccine and you get a better growth in the economy and better profits and certainly you could see a vicious rotation because i think

if you look at energy and industrials and financials, they're all down on the year and very underowned at this point. i think it will be binary, absolutely >> stephanie, thanks for hanging out with us and giving us some ideas this morning joe, nice to see you nice to be back. join us tomorrow "squawk on the street" begins right now. good monday morning, welcome to "squawk on the street" i'm carl qintanila optimism on covid treatments and the stock is not far away. our road map will begin. wall street looking to build on another record-setting week. futures point to a strong rally at the open.