throughout this period of time it looks long term >> and you're putting to work five to six billion dollars, as you said thank you for joining us >> thank you for having me >> over to you, carl >> leslie, david, thank you. it is 8:00 a.m. at apple headquarters, and squ"squawk al" is live.

welcome to "squawk alley." john fort has the morning life watching carefully as both apple, tesla, and the thatnasdae dipping into the red let's go to alex sherman >> tiktok is suing the u.s. government over effectively banning the app come september 15th tiktok released a blog post right now explaining the rationality behind the lawsuit against the u.s. government. there are two administrative actions that the trump administration has taken the fist would effectively ban the app by september 15th. that is the one that tiktok is challenging saying it has been preventing due process it has worked with the government for almost a year trying toics plane that it is

not, in fact, a national security threat. their parent is bite dance that is what this has all been about over the past several months the order demands that bitedance die vest tiktok by october that means the sale talks with microsoft and oracle will continue tiktok has at least challenged the effective ban that takes place next month >> alex here it is interesting to look at this blog post they say they have been doing everything that they can to express their range of concerns. how do you think it will impact

the talks from micro soe microsn others >> i think die vevesting may bee ultimate solution. there are two concerns here. tiktok doesn't want to be wiped out and then it is not operating in this country. all of it's influencers are fleeing toward other apps. the employees, are they continued to be paid tiktok preparing for the instance of a ban. that needs to be priority number one. they don't apt loss of -- want a

loss of the sale they want to make sure it isn't banned >> for your point, they never articulated any reason why tick took security measures were inadequate for any national security concerns. is your argument that they're not trying to dismiss a band >> it is a little confusing, their saying we're not a nation n national problem they're saying okay, look, if you're going to force us to do something, we would rather sell

than get banned. i think that is hair argument at this point unless we see further action that challenges that lawsuit. but we're not seeing that at this point and talks, i'm told, are continuing with microsoft and the oracle group that cnbc has reported on in the last couple weeks. meantime, apple shares hitting another all time high. >> so, julie, each apple share hold tlg will be three additional shares, so why do this it doesn't change anything the

whole point here is that a lower stock price can u adjust the stock prices we wanted to make sure that it was accessible it is at the price where it is today, and we bring it down to a level that is more affordable to a lot of people that have an interest in owning it. the first publicly traded company to reach a cap of $2 trillion since then 150 billion in cap. some of it's products, we know, benefitting here from that work

from home, too and now investors looking to launch products, analysts debating what the demand will look like when the new handsets hit the selfhelves, back to you. >> mark, always good to have you, good morning. >> good morning. >> every sector had more deliners than investors. that included tech that has not really happened but for a few times in the last 20 years, does that give you pause or not >> i think we're not seeing all boats float, right fundamentals do matter i looked closely at the internet

space. and we're seeing this space and we're seeing a i ddivergence in stock performance. >> how do you differentiate between the two schools. >> companies like google and twitter, they had challenging results. google not really growing top line and then you have company that's are performing very well it tells you a lot

>> as we look at a dynamics here, a handful of o market companies, they're safe from innovations. they continue to earn, and then you have a rush of newer companies, e emergencies, seeing some kind of chances to get out here how do those stay true at the same time, do you think? >> we can't under estimate the impact of the trading here it is true that we are seeing fundamentals and valuations and movements, but if you step back a little bit you have active trading that is really representing a pretty something portion of the market.

and i think that part of what you're seeing is, in the out performance of the few, is also driven by these programs and etfs i do think that one of the things you're calling out, i'm seeing it every day, and e commerce is an example a few years ago very few companies knew, and they were struggling now look at the skeuccess of vertical e-commerce companies. and the little guy, if you will, is doing well now. and even in advertising. you know you're starting to see some growth in smaller social networks like visco and others so there are, fundamentally when you look under the cover, the

little guy is doing well sometimes the performance is driven by active versus passive management, i think. >> mark, i want to return to something you just said about the possibility for the e-commerce players to compete with amazon. what do you think has the most opportunity and do you think there is a risk of exposure to a decline in consumer spending should the consumer take a leg lower this fall. >> certain verticals do lend themselves more. some that require a lot of capital, you take the auto vertical this is an area where you require unique type of distribution channel, right? you need to have refurbishment centers. there is a whole different back end that is specialized to that vertical with wayfair and the home

furnishings space, it is a different channel, it is dropships straight from supplier and in-house distribution as well these are specialized logistics and distribution channels that don't fit within the cookie cutter type model. so that is one theme that i see, and i'm sorry, jewelulie your o question was -- >> just in terms of exposure for consumer spending. do you think consumers are moving so much online that the e-commerce plays will be more immune than any negative trends that we have seen in the physical retail space? >> the folk that's we speak to, the longer we thought it would stay elevated for a couple of months in the heat of the pandemic and then start to fall off. that has not been the case a lot of e-commerce companies

have continued to see strong top line growth in their e-commerce sales. i'm talking about the competitors and the private world. the longer that has happened, the longer that we are expecting this to be a disturble change. and this is kind of a change in behavior that we think will be durable. it is hard to know because the pandemic is lasting a little longer than we expected. but it, i think the longer we go along and we see the co-horts behavior like a co-hort of before it is showing as it is a durable growth >> speaking of co-horts, i

seewsee w wayfair. is it a trend? >> that is not where most clients are looking to put their dollar the m&a market is robust we saw a pause for a couple of months but our activity is really starting to pick up, starting in the june time frame. that is really where we're seeing firms sitting on a lot of cash the changes in tax policy. and there is a lot of robust interest on the private equity side the strategics are not slowing down at all. we're looking first and foremost to put their money there i think it has always been a buy back >> mark, that was good always great to have you, thank you for kicking off the hour we'll see you later. >> thanks.

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i see you at one of your gyms right now. walk us through the experience and how things will operate under some of these restrictions for example, new york state, and things like that are you so far seeing your customers wanting to get back into the gym >> we of course are, it depends on people's own physical suggestio situations we are not encouraging people with underlying conditions so the key, i think, will be small group classes where people can see there is tape on the floor. people can find their own space and their own equipment.

they keep things down. >> what we're seeing in the past several months, of course, with many gyms closed is the market get very excited about stay at home fitness we're looking at shares of peloton. clearly a bet that this is an enduring trend. what is it looking like? >> interestingly of the millions of cross fit practitioners, a big chunk of them have always worked at at home for the garage gyms the other is a sense of community. there is an amazing community when you're part of a group getting fit together and you

kind of miss that at home. >> julia here. i used to take a lot of group classes and they were always very crowded now you're limited to 33% capacity what kind of capacity do you need to operate at to be profitable it is good from a safety perspective, but maybe not from a profitability one. >> we did a class with 11 or 12 folks in the class today precovid we might be up to 15 to 20 where as to your point we might have a capacity of 50 in here. in cross fit the most majority of classes are under 20 people and a big chunk of them tend to be about 10 or less. the key again is smaller classes

with really big rewell ventilat areas. >> anyone that has ever taken cross fit knows that oxygen is a must you got to breathe you're going to be huffing and puffing. what is your best advice to customers who come in and have to want a good workout through a mask how hard is that >> it is definitely making things harder. it takes some getting used to. we will have folks run outside of the gym and decide outside if they want to wear a mask or not. but in the gym we require a mask, and it takes some adjustments. but we always like a challenge it is just a new challenge and when we finally get through covid everything will feel

really easy at that point, right? >> reading between the lines, it seems like you would think that cross fit might be a net gain. is there any evidence you have for that so far. >> i would say for us, a transformation, changing lives, over 50% of people who do it regularly say it has changed their lives. it is higher than any other product or service that i have ever seen in my life it was a big deal for me so rather than taking in poundage and numbers that's why if we can only train with three or four people, but when we have 20 in here we're going to try to get maximum impact >> thank you for sharing your thoughts >> absolutely, pleasure to be

with you still to come, kara swisher on mark zuckerberg's warning to washington dc about tiktok and other chinese firms. what the president is doing is not really about tiktok, it is about tiktok, we chat, and other chinese software companies that are able to collect data on american citizens, ship it over to servers, and share it with the communist party and the people's liberation party. so i'm always amazed how some of these stories pop up but that one, for me, has zero credibility. i know that he had nothing to do with anything that happened here in the white house you're slouching again, ted. expired, expired... expired. thanks, aunt bonnie. it's a lot of house. i hope you can keep it clean. at least geico makes bundling our home and car insurance easy. which helps us save a lot of money

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tiktok challenging the effort to ban them how are you doing, kara? >> i'm not bad how are you? >> i'm good, is zuckerberg saying in private meetings what he was saying in georgetown?

>> of course two years ago he talked about the threat of china, and that was a first big talking point. he said facebook needs to be as big as it is because of the threat of china. as to the lawsuit, of course they'll do that. this is unprecedented what they're doing. there is a lot of shareholders and employees. i think they want to bring this to the courses it can't be done by fiat it has some scrutiny by others other than president trump >> but you don't think they harbor any solutions about what will likely happen >> i don't -- who knows? we have talked about a pivot live, that the chinese might just wait everybody out nap is a tendency they have they have enough time, we're in the middle of an election.

do you don't quite know what the biden administration will do, to drag it out is probably the best of all and they are certainly in that time fra ti timeframe, right trump will be in always until january even if he loses he will have pressure in general, and the biden administration can turn back whatever he does if he wins he can deal with them after that it seems to me that going to court is the smartest thing. to air these issues makes sense to me. >> and kara, how do you see the lawsuit impacting the talks and which potential buyer do you think is most likely to make a deal at this point >> microsoft completely, oracle has no business in this deal this is a forced bid let's just keep it in mind

whatever issues we have with china, this is problematic at lots of levels there will be a lot of lawsuits for lots of people there are not really any other buyers, oracle might be a stocking horse here. they certainly have a platform, but they're businesses don't skew with this one at all. so i would assume it is micro soft, but at the same time i think it is a problematic ser . search we'll see where that goes from there from is big legal issues and i think the courts are the right place to deal with that. >> back to mark zuckerberg, he is advocating for a crack down on tiktok. how does that play into the way that facebook is preseerceived

washington >> anyone paying taengs to facebook is not surprised. they have never competed as much on innovation as much as buying things or trying to mess up a market for someone this is their style and of course they would push because it has a welcome -- it is welcomed by the trump administration and a lot more people than that so they would use it for that. they would say oh no, even though they're competing with us, from an innovative point of view, and they are, we're going to push on the chinese part. that is what you would do if you were facebook. >> the way that we talk about tt tiktok is that it is a juggernaut is there any under current of

doubt. what are they looking to value this at and how do you think it plays? >> i think it is pretty innovative i don't know how much you use it, it's wonderful and it's a pleasure to use. that is one of the things that people are worried about facebook has never been able to provide in a with any products it doesn't mean it will take down facebook. facebook does 50 more things than tiktok does, but it shows a glimmer of competition that is significant, just like snap ccht did. and facebook came down on them giants crush people, that is their name >> that will play out in some degree we talked about the airbnb ipo,

now we have doordash where is this headed >> a lot of companies that want to move into the market. there is investors that want to invest in something, right wall street is sort of not at the same place as main street is there is a lot of money looking for places to put it i think it will be one of the biggest ipos going first it will be interesting to see their numbers and then how they will do in the market i think this is a great time to go public. a lot of big companies moved forward in times of stress it is always a very good time to do it. they will go into a market where there is not many choices and they will do pretty well you will see the decent companies come out like this i have not seen the numbers on door dash, so i don't know, but it seems like a good time to do it even though it doesn't seem like a good time to do it, if that makes sense >> better lucky than smart, as

they say i wonder how it will compare to an airairbnb in this case, pre-covid. >> i think the recovery of these companies, like doordash, uber, and others it is an interesting story. can they talk that and make the into profitable companies, right? that is the issue. air bnb was going that way there was a quarter where they were cash positive or better and this is a spinal to take advanta advantage of it. people are looking to make good investments and this is a good opportunity for investors and these companies. and it will change expectations. it is covid. and there will be a recovery eventually if not, t the end of this year, than by spring or summer next

year >> kara, we crossed over to a world where when you don't wear your shades -- >> you want them on, okay? >> all right, are you happy? i look like i'm in the air force. this is any podcast pkos studio i will be wearing them when i'm doing my interviews with big movers and shakers >> you look great, you made at least one viewer happy thanks, kara, we'll see you later. >> thanks, bye >> coming up, the studio head behind "unhinged" the first major movie released in earsthte since the start of the pandemic. we'll be right back. stay with us introducing stocks by the slice from fidelity.

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"unhinged" has opened in theaters and it brought in $4 million. the group behind the film joins us now congratulations on having the first film to open, why are you considering that $4 million a success. >> sort of three things to say first we get revenue from all over the world and that has already happened we did very nicely in the early going. secondly you make money in theaters and also home video, tv, and so on. third and by for the most important is everything about what is happening now is upside down so that $4 million opening would normally be considered a flop. but everything is starting slow and holding on forever so in the old days it would be a big opening and the next week it would be down, and then you can

figure out roughly what you will do our film opened all over the world, and eventually it catches up >> it will be interesting though to see what happens when other films open including tenant and of course mulan. how do you expect the launch of the films to hold on >> we're seeing a lot that tells us that helps instead of hurting. what seems to happen is more people realize that theaters are open, they hear from friends that it is a comfortable and satisfying experience, and they end up going so australia has films that opened last week andour film went up from the previous weekend. that never happens, normally everything is just covid crazy >> mark, how do things look on the production side?

is there a huge air pocket in your pipeline or the industries right now that we'll have to work through both for release and other platforms? >> there has definitely been at least a six month delay. we felt like we we supposed to be shooting in september it is not easy everything about it is three times harder than normal there will be a gap somewhere along the way. >> in terms of a gap, though, do you think fewer films will do a theatrical release maybe intimate movies will go direct to consumer or direct to ondemand >> no question covid accelerated it the same way it accelerated e-commerce. i don't see any reason that that would slow down. but it doesn't mean, of course,

that it will be the death of theaters, either >> and when you think about your relationship with theaters, we saw leaders have a 18 day window how do you think about your dire to have shorter windows. >> it was as close as possible i expect that what we will do is be powerless and just try to support theaters and when the big boys and girls decide to do

we will say thank you and go along. >> has anything else changed that you think will be enduring about the economics of what people thought would be the at least holds for what a release has to live up to? or anything else that you're now building into whatever modelling you have >> in our case, no, but if you look at what the major studios are doing it is clear that it is much more heavily, a film like tom hanks, it would have been a gigg digital release. things they call mid-budget which is $60 to $80 million, would be the case. >> are you thinking about your next round of films going into production the fact that costs might be higher, how important

is it to you to have guaranteed audience overseas? the subject matter or the star has a built in audience when it seems like the u.s. market might open more slowly >> it has always been true it is becoming even more true. so it is very important. unfortunately we can't make a baseball or a cowboys and indians movie. but there is a lot of things you can make, and there are plenty of things that we do agree on, and that is what we can make >> congratulations on the first wide release in many, many months thank you for joining us >> thank you for having me when we come back, companies investing in the well-being of their employees. the ceo of headspace joining us in just 2:00 this is decision tech.

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our next guest is seeing a significant increase in requests from companies seeking support for their employees mental health since the pandemic started. joining us is the co-founder and ceo of head space, richard pearson. tell us about the growth of your corporate business you start out as a consumer app. now you have this booming corporate business how has that been going since covid started? >> i think what we seen since the pandemic started is something we thought might take three years to reach the market. we thought the mental health was going to become more and more important in corporate settings. i think where mental health was a conversation in 10% of boardrooms, i think it's happening in every single

boardroom now. we have seen tremendous growth all of our incoming requests with up about 500% we now have over 1100 enterprise clients on our platform for the likes of ge, adobe, starbucks, farmers insurance. folks that you probably expect and some names that you probably wouldn't we just seen tremendous growth in this area as the pandemic has kind of moved forward. >> 1100 companies paying you to have access to your meditation apps and wellness apps for their employees. my question is how much of your pitch to them, your relationship with them is about guaranteeing the people who use the app will be healthier and more focused and better able to do their jobs >> we did a big study, a big mental health report with thousands of workers around the world. what we found is the 30% of

folks thinking they have depression or nxiety 50% of folks believe it's work-life balance is the main cause of stress. 50% of those folks don't believe their companies are offering adequate mental health the great thing is we have been -- we have shown if you use head space you can reduce stress, increase focus as well as depression and anxiety. when you give that evidence and we have the evidence in 25 peer reviewed published papers, that's really big part of the -- the reason why folks want to send their organizations >> richard, some would argue that work-life balance has gotten better. working from home is an option you got more time with your

family road warriors don't have to head to the airport why isn't the situation better for some workers in some ways? >> depends on what families you speak to i know some of my friends are enjoying the experience trying to balance everything. i think that's the brilliant thing that's come from this. we found that with our own team, one of the biggest piece of feed back that we had is they can't get away from work when you're in one place and you don't have the social interactions, a lot of the mental health issues that were kind brought to the surface. >> richard, how do your offerings co-exist with other types of mental health benefits

that companies might offer whether it's direct access the counselling and things like that are companies using yours in lieu of those benefits or some kind of relationship and integration with those >> i think it's a huge spectrum of mental health offerings we partner with someone this looks after the more acute end of therapy that's not something we offer. i think the thing that is really compelling about our product is when we launch these organizations, we have 17 million people on the consumer platform, people have heard of it and they know of it i think the consumer brand enabled us to fuel this growth at the same time there's a need for other types of services and i think that offering is

expanding daily, at the moment >> richard, as you look to the future, looks like this last leg of growth has been driven by these corporate clients. if you look to the future, head space held the idea of applying your tools to general well being, general health and sort of tool similar to what lavongo has. how important is that for what headspace means going forward? >> we believe the future of consumer health, you'll have to have brand that can get people to fill passionate about the service that you have. you'll have to show up in enterprises because we believe that every single ceo and management team will have to take the health of their employee base more seriously than they ever have. if you believe those two things to be true, we believe that health care will be rapidly disrupted. for us, it's really important, actually, that we can start to have clinical great products against mental and physical

conditions we have got our first head space health product in clinical trials at the moment we'll get the results in q4. looking to commercialize by the end of this year, beginning of next then we have a whole range of products that we'll be releasing after that one we really do see the combination of consumer enterprise and health and health care as a really important part of ongoing strategy >> i hope you'll come back and tell us more about those products as they launch. thank yous for joining us. >> thanks for having me. postmaster dejoy has been testifying in front of house oversight. let's get an update. >> reporter: that's right. come contentious moments as postmaster general are explaining changes he made democrats are concerned the changes are slowing down mail delivery the democrat of massachusetts asked the postmaster general if he's going to reinstall some of

the sorting machines that have been taken offline over the past couple of week here is that moment between the two men. >> i'm proud to lead the organization the rest of your accusations >> lu will you put the machines back >> i will not. >> you will not. >> will not. >> there are a go. >> let the witness answer the question he's gone over time. >> the gentleman may answer the question without being interrupted. the question is will you put the machines back? >> the answer is no. every accusation you made other than the trucks -- adhere to the truck schedule is inaccurate and more misinformation for the american public. >> reporter: dejoy saying he's not going to put the sorting machining back he ontending the machines are not needed larmgly because of the slow down in the volume of made in this era of electronic communication. that's a cost saving effort. watching this is the president

of the united states who tweeted about this continuing to set up the idea that democrats are positioning the country for massive fraud in mail in ballots that are being sent to people who not even requested them democrats are setting the table for a big mess in the election that's the fight here. the president says the democrats are positioning the nation for frauds in november we're headed toward a very contentious election in november >> we'll see how some of the social media platforms handle that last tweet. twitter did put a disclaimer on the president's tweet about mail b b boxes. >> reporter: what the house passed on saturday,plaining thee

holding the hearing after order. the democrats on the hill say this is exactly the way we need to do it we needed the money to get out as quickly as possible that's why we did it this way. >> all right thanks we'll keep onc covering house oversight. let's get to the half. welcome to the halftime report the bulls are in charge. nasdaq and s&p hitting new record highs should you be bracing for a pull back our investment committee is here today. welcome to you all let's begin with the markets at this hour. the s&p 500 having its longest weekly win streak since december you see there. 34.20 is your