housing data plus, it is the republican's turn to drum up excitement we'll bring you highlights from last night tuesday, august 25, 2020 "squawk box" begins right now. good morning, everybody. i'm becky quick along with andrew ross sorkin congratulations. you have once made it to the camera before joe has. >> this is true. the benefits of not having to commute. we should explain. >> joe had some car trouble on the way here

flat tire. he is on the squawk news line. what happened? >> flat tire first day back with my driver. we are on 78 which leads to the new jersey turn pike which is where andrew was the other day we are getting close to the lincoln tunnel i had to wait and have another driver pick me up. that worked. the only problem was we got a flat in the express lane we had to pull over on the median with semis going by on both sides the whole car was shaking. i was like, okay, i'll never be there again. >> so i take it, you changed the tire >> i could have. the first thing i did was say,

look, you've got to go over that median and get over to the right. that's just asking for a problem. >> seriously dangerous >> at 6:30, i will be there at 6:20 there might be a correction coming you guys can explain to me honeywell? i thought it already was it was in, it was out and back in >> i think this is the first time since 2013, we'll see three dow components come out. now good luck. we are going to see changes coming i will tell you, power went out here we didn't get power back on until about 12:30. >> it is 2020.

everything happens in 2020 it all goes wrong. >> a flat, first day trying to get back to the nasdaq i'm going to let you go. i feel bad for pfizer. what did they do wrong >> look, i understand we need to have more skploeexposure with a coming out of the dow with that coming down to 26% it was a huge chop getting more exposure. i was with you, i thought pfizer is coming out? this is still the way that world is powered >> how about the futures everything that could go wrong with china is going wrong with

the dow. it's crazy good news is good news bad news we'll see. now china matters again. we'll get a little body language it is crazy. entering the tunnel -- >> we got to get a picture of you. nine years ago, you played "call me maybe." and had a little photo of me sitting on an empty chair. after the republican convention and clint eastwood did his empty chair routine. i came late. we'll have to get the music when you arrive >> it is fine. my hair. and i'm getting a hair cut today. >> there is a tease.

tune in at 6:30 for joe's hair >> 6:20. >> we are going to lose you in the tunnel we'll see you in a few minutes let's take a look at futures they are sharply higher this morning. after big gains once again yesterday. yesterday, the dow was up 378 points close to 28,308. s&p closed above 3,400 for the first time nasdaq up too. the relative underperformer only up 0.6%. you are talking a record close for the nasdaq, that is 37 times this year, the nasdaq has set a record close s&p has set a record 16 times this year. the dow is only 1% below break even still 4% below it has been the underperformer

as we mentioned, some major changes. let's look at the u.s. treasury. the dow you future up. 10-year at 0.682%. >> let's talk the shake-up the imply kaications are huge. trying to gather what it means late changes in the dow. salesforce, am agagen, honeywell stocks getting replaced, exxonmobil, pfizer and raytheon technologies those stocks falling on the news some form of exxon has been in the dow since 1928 the changes take effect before the market opens on monday

the catalyst for the shake-up, apple's four for one stock split which would have reduced the exposure to technology apple will be moving from the most heavily weighted component as a result of that split. i know a lot of investors who had bought the dow frankly to own apple in that way. based on yesterday's closing price, united will become the most heavily weighted component followed by home depot and amgen. a little history pfizer, the big name not in the index any longer there will be a lot of debate of who should have been in or should have been out or what it means. this is where we are right now we'll watch those stocks all

day. once the move happens, you are looking atom gwen up 4%. everybody else, home depot i'm looking at united health news i don't know maybe when joe comes, we can all have our debate. becky, when you were on the panel, the committee, is this the way you would have done it >> no. but look, people have trashed the dow for years because of the way they put different stocks in and come up with this market weighting. that does create some crazy running for what happens what is amazing is that over time, the dow has so closely tracked the s&p 500, you are picking winners and losers honeywell up, just like amgen. the jockeying will rough some

feathers mentioning honeywell being out and back in. pointing out that at&t has made several round trips because of various mergers it has made over time its exit was in 2015 when it was replaced in the dow by apple now look where it is if it hasn't had that stock, who knows where it would be right now. still down about 4% from the all-time high versus the 17 times the s&p has set a hooi and 37 times the gaz set a new high. we'll see what happens as they come u.s. and chinese trade negotiations holding a call about the implementation of the trade agreement. the idea that maybe there is a

bit of a thawing and both are moving forward chinese vice premier, lighthizer and mnuchin. they discussed u.s. property rights and agriculture al products we have bob davis who has an incredible book out on this. we booked him for today, we'll talk about what this signals and means. he's been tracking closely all of the changes that have been happening here from the wall street journal that book is a definitive book of what has happened with this relationship over the decades. >> it is crazy we'll get into the real issues with him but what is crazy is how the market is reacting

we've had bad news on so many different days and yet the market has moved higher in so many different ways the market goes up in bad news. we'll be hearing from mike wilson the view on all of this and what he thinks might be coming from the market when we come back, reading on the health from the economy on 100 new ceos equity futures looking higher. the s&p will be at an intraday high the nasdaq up by 30. huge lineup this morning, working professor jeremy siegele. the drummer from the band kansas will update us on big changes to

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switch and save up to $400 a year on your wireless bill. plus, get $400 off when you buy the new samsung galaxy note20 ultra 5g. welcome back kpmg gauging expectations for the economy from 100 u.s. ceos joining us now is the u.s.

chairman and ceo of kpmg welcome. glad to have you with us >> thank you for having me on. >> let's talk about what you are hearing from ceos. the news has been grim as we watched earnings season, even those performing well held their guidance they don't know exactly what is happening enough to give economic outlooks. i thinks that what makes your survey so interesting right now. >> many ceos are reporting that they are more confident about the growth prospects of their own companies over the next three years than at the beginning of the year. slightly more confident about growth of their own companies than domestics and u.s. economy. we found it interesting that ceos have accelerated digital

creation and talent is seen as the biggest risk threat to future growth >> meaning losing employees they want to hold on to >> yes you think about today's more virtual world, you can interview on board, migrate employees into your environment without physically seeing them so talent can move more freely >> it is about the cloud skills and artificial intelligence. companies are concerned about having the right people and those digital transformation efforts. >> that is stunning to hear that they are worried about talent. this could be a situation where some employees really get to call the shots and decide what

they want and how much they are going to get paid even at a time we are talking about incredible double digit in the country. >> it is very interesting. again, it is more about those skills needed to digitally transform those companies and thinking about how they operate in the more remote form. they are trying to put technology in the hands of employees to ensure they can operate this more digital world. also interesting that transformation includes operating models and business models and those that will be prepared for a different kind of future and more remote working >> companies are willing to invest money and making sure they have a digital strategy what about other investments those falling by the way side.

listening this morning interviewing guests that say there are no new projects whether it comes to commercial real estate. >> certainly commercial real estate, studies suggest they are rely on less now, it's more about prioritizing where you invest. at this point in our history, companies are thinking about how they dig tiitize the customer experience and making sure they are prepared for what may be a very different future. you see, certainly, companies trying to determine how they operate digitally. trying to transform to make sure they can meet customer needs in a more remote, virtual fashion >> in terms of employment

overall, is it really to beef up employment in talent and the key area and laying off additional people >> we didn't specifically get into that so we can't really speculate on the company's hiring plans i don't think that the company is prioritizing the digital investments or deprioritizing work force investments companies will continue to invest in education and bring in the right kinds of skills. over time, companies will have to look at the types of stills that they have growth spros inspects were those low to moderate. 2.5 to 5.5% over the year. they are still going to invest in people but this time, they are prioritizing what they need

to put tools in the hands of employees to make them more effective and efficient in this environment? >> companies are feeling so much better about their own prospects. was this january or february when we were starting to see the virus pick up overseas, what was the time frame >> it was january. that is part of the study. before the pandemic was significant issue or an issue at all in the united states that's an issue. i would stress that is a three-year horizon but net net, it is a positive sign for the economy. there is a lot of dislocation at this time. a lot of people are hurting. i'm sure ceos are thinking

monetary and fiscal stimulus the continuation over the next several months and possible years. >> paul, thank you for your time it is good to see you. >> thank you, becky. thank you for having me on >> thank you andrew coming up, when we return, on the other side of this break. a fallout from the pandemic and a new measure on the mental health impact. and kfc changing its slogan. take a look at the biggest pre-market gainers in the s&p 500.

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welcome back we are in chairs this morning, virtual chairs at least. andrew and i are joe kernen, his chair is still empty. here he comes. making his way

>> they didn't put in the chairs >> go to your other chair. the empty one. >> i'm here. out of breath. >> we are hearing from people you were up late from the rnc last night >> i missed it i heard it started at 8:00 there was a special thing, if you bet on the lakers and they won, every point they scored above 81, which was kobe's best game ever, you got a dollar. they won and i bet on that you got to keep your priorities. to many surprise, i didn't see any of the rnc andrew, what happened? look at the shirt.

what happened with your bad self what happened? >> funny just for you, i wore a different shirt with a different collar. then i found out you had the flat tire. i thought we won't be talking shirts today but then you with your eagle eyes. people who say, we only own one blue shirt >> maybe not straight up with

financial. kfc retiring its finger licking good slogan after 64 years the company said that slogan doesn't feel quite right during the pandemic you can't put your fingers in your mouth right now they will bring it back when the time is right. it reminds me of a small store here called hands. general merchandize store. they rolled out a new sign that says above it, please wash your hands. in the meantime that was the end in a brief campaign.

it is never good to liqueur fingers. >> you've got to be careful. with pizza, you can't use fork and knife. you get railed on. napkins. >> you hear finger licking you don't just see it. you can hear it. you don't do that, do you, sorkin occasionally cream cheese or something. >> as you know, i only use a fork and knife no of course i use my hands >> they are going to bring it back after finger licking is okay again i didn't know that part. >> it will come back at some point. it is too good we should also tell you, google searches for anxiety soared in march because of the lockdown and paendemic according to a ne

study from san diego searches for the words anxiety and panic attacks were higher in the first fou months of the pandemic spikes around key news events including 17% rise when social distancing guidelines were first issued >> we are all familiar with the old -- 2020 is the year of anxiety. i'm kind of getting used to it this morning, i was like, what am i going to do you get a flat although i didn't like the semis on both sides. the guy was like, i think i have some spray i can put in. the back open, whizzing by i could have gone home i have a camera there. >> i thought you were on home. i didn't realize you were on the

road. >> i was loaded with options >> i thought the same thing. i was brushing my teeth to go to bed last night and the power went out i thought about it for about 27 seconds and thought, you know what, i'm going to go to bed nothing will be on nothing i can do about it. 12:30, it was back on. all good >> i've got to get a life. mike wilson is on at 6:30. no kidding the morgan stanley guy i'm like, this guy better get here mike wilson is going to be on. we'll look at the three now dow components and how the shake-up could impact your money. and morgan stanley chief officer

joins us next with the rebound he was bullish as we head to break, we look at s&p 500 winners and losers andrew still has that shirt on, man. i like it. experience the joy of a bigger world and a highly connected lexus vehicle at the golden opportunity sales event, lease the 2020 es 350 for $359 a month for 36 months. experience amazing at your lexus dealer.

good morning

u.s. equity futures are up again. new records in the s&p and yesterday. joining us now, mike wilson. chief equity strategist at morgan stanley i don't know, i called you like chief of everything. you think it is time a correction could be starting since the balance off the lows >> good to see you the thing we've been focused on is maybe the time of the break is the breath of the market. everybody knows the breath of the market has been getting narrower and narrower, you just have to be on alert for something. now, just figuring out what would be the reason of the market to pull back a bit.

this bull market is powerful trying to fight it is a mistake. we are not seeing a bull market but a correction first, maybe the school reopening is being threatened now. maybe a lockdown or partial lockdown again and people start to worry about that. the next thing is the rates. rate investors are things they are looking for. the second window is the control. they did not really want to go there. i agree with that. that message is clear. they don't want to control the back end going out because growth is better because of our primary view rates going up in the way we are expecting. by the way, that would be very corrective and a kignsignal thah

economy would be improving and a signal for the markets to pull back >> i don't know whether that causes people -- especially from those low levels some other things you mentioned, i think you think another stimulus round is coming you think it is likely every day that goes by causes intrep dags or a risk that we don't get one? >> that's right. the fact of the matter is -- in an election year and we are still in a recession, i think it is likely congress will fail on the next round of stimulus with the delay, it will end up being bigger than a lot of people thought the two sides are still far apart. we think they'll settle in north

of $2 trillion on the next stimulus if you don't do any, then the country is at risk the rates could go up sharply. all of these things are coming together at the end of the day, joe, it is a bull market trying to call these corrections and do these double-breaking putt doesn't make a lot of sense. because the breath is narrow it is straight up to the right, this is a time where you could take a break >> just you saying it is a bull market, does that poke holes into the theory that this is all fed and central banks and stimulus and sugar high and not justified by the underlying economy? if it is a bull market, you are saying there are reasons the market has rebounded and there

are reasons not for this terrible pandemic. the gdp number will be an eye opener, is it not? will that a lay some of the fears that were way out over our skis >> you and i have been discussing you know this, joe, markets move ahead of the fundamentals. the stock market is probably one of the best leading out there. no uncertain terms that 2021 will be pretty good. how we get there is irrelevant whether the stimulus or the fed, who cares. if it is going to lead on the market shade, it will not be that the fed is doing more but the opposite recovery is the opposite it is broader. operating earnings will be better that is where the surprise is

going tobe will it be the companies or the companies in a lockdown? i think it will be the latter. >> you do? >> sort of the narrative that it is the stay-at-home digital play those that will lay down as they recover. >> right saying the risk reward is more attractive in we see the path to recovery as the economy reopens

the consumer services and travel are perhaps manufacturing and reopening the material stocks and things that can benefit from rates going up small caps and rate economies. since the lows, a lot of those have outperformed. you think about the recovery story, that's where it is the greatest >> maybe in terms of the banks and financials if you look at travel and leisure, they go up every time there is a koour a vaccine, money coming from congress i understand your idea that the risk reward will be grater than where the stocks will come down. when you say travel and leisure,

some of those have done really well >> there are going to be bankruptcies and defaults. you need to be careful with certain companies that are going to make it they create pressure and shares. it is a two-edged sword. you have to buy the companies that will make it through the period we are in the default risk is still high >> we are doing a big risk someone else on the stock market it is always possible. someone wanted me to ask you is the market up to date.

the convention last night was so much better than last week joking i can see you on the spy cam i saw that look. >> i know. >> it was a joke can't i joke around. you do you do sometimes thanks, mike don't answer that question i went through it. back to you. >> sure thing. when we come back, the biggest headlines out of the first night of the republican national convention and how the election could affect your money. >> and straight ahead, talks on real estate, stimulus talks and much more.

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welcome back, time for the executive edge three public debuts to tell you about. alibaba ant group could be the largest in history plans to list on the shanghai market and hong kong stock exchange they run ali pay, the most popular mobil payment app in china with over 900 million users and a host of other products ant group valuation could be more than $200 billion filing with a first look at ant group's financials showing that it made $3.2 billion during just the first half of the year then there is snowflake. one of the fastest growing cloud

software companies reporting revenue more than doubled in the first half of the year to $240 million the company founded in 2012. allows businesses to store and manage data in the cloud rather than on data bases list includes capital one, adobe and others will list on the ticker snow i like that. >> and then asana, i've used it. plans to join the stock exchange started by the one of the facebook founders, dustin. he's invested in other stuff early. to be one of the cofounders of facebook and then this, pretty good showing meanwhile, the republican 'lbronal convention kicked off wel ing you the highlights

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welcome back to quack box. president trump and the republican party kicking off night one with an emphasis on the economy. here's nikki hailey, former ambassador to the u.n. >> joe biden and the socialist left would be a disaster for our economy, but president trump is leading a new era of opportunity. before communist china gave us the coronavirus, we were breaking economic records left and right. the pandemic has set us back, but not for long president trump brought our economy back before and he will bring it back again. >> for a look at what could impact business and the markets, want to welcome stephanie kelton, suni professor, author of "the deficit myth."

also joining us is bill griffeth, research fellow with the heritage foundation. stephanie and joel, thank you for joining us what do you think would happen in a second trump administration what changes how do you think the economy works in that version of the world versus a biden version of the world? >> i think it's a very stark contrast between the two former vice president biden has been very clear about what he intends to do, and that includes rolling back much of the tax deductions on businesses that have spurred an increase in capital investment and that longer term will increase productivity which will increase the standard of living -- >> joel -- joel -- joel, can i ask you a serious question because i hear people say this on tv all the time and it makes no sense to me because it's not true there was a small increase in

cap ex when the trump administration came into office. maybe you could argue it was the initial results of the tax cuts, but as you know, and you can go look at the math, you can go on the st. louis fed site that shows cap ex, cap ex went down during this period why do you come on and say it went up? >> well, following the taxes were enacted we did see, we saw an increase in capital expenditures in that investment component. we had a few other developments in here. we also saw a lot of trade friction much of that was needles there's no one solution to economic growth. we need to have free trade and we need to have lower taxes and we need to have the other incentives in place. yes, we saw the initial increase in cap ex which has a long term impact and we took a few steps back in trade. in the next administration if

that is president trump, we need to see the tax policies that began to set us on better long-term footing. at the same time we need to see increased business certainty our businesses need to know and our investors at home and abroad need to know we are open for trade and we are going to try to expand free trade across the globe. vooibd on t vice president biden has talked about a new tax, the green new deal the costs would be $700,000 a year which makes us look like parts of europe. >> stephanie, let me come to you on this with the tax issue biden said it in our interview right here on "squawk box" a couple months ago, even if we're in the midst of the pandemic would you raise taxes? if you're trying to create a recovery and would you raise

taxes in the midst of it his answer was yes do you think that's right? >> look, i think that i probably have a pretty different opinion. for me right now, i think i would be looking more for something analogous to what chairman powell has told us that he is going to do with respect to monetary policy when chairman powell said we're not even thinking about raising interest rates, the fiscal analog to that would be we're not thinking about thinking about raising taxes, as you say, in the midst of a pandemic the compulsion to increase taxes is really driven by concerns about doing anything that adds to the deficit i think that's what happens. politicians want to try to pay for their program. democrats want to hold themselves to a different and they think higher standard than their republican counterparts in the sense that, you know, they want to try to show they can

accomplish their agenda without adding to the deficit. i think that's what gets behind a lot of this sort of stuff. no, i have a different opinion but i understand, i think, the politics that drive vice president biden to say, listen, we can afford to do the kinds of things that i am talking about, the agenda that i am pushing. >> stephanie, if he were to raise taxes in the middle of all of this, do you ultimately believe that would be bad for the economy? >> well, it depends what those tax increases are. you sort of just said the tax cuts didn't lead to the economic miracle. they didn't produce the windfall that led to job creation and cap ex and that sort of thing, so if that's true, and it is, it seems to me rolling back tax cuts that weren't all that helpful wouldn't do that much harm so that's my answer >> okay. finally, real quick, joel, in terms of the confidence that people have in the economy, how much do you just look at leadership broadly

and i think it's hard to look at what's happened during this pandemic as a great exemplar of lead errship in terms of what it's actually meant to the economy. in large part you could say it's because of the approach by the administration it's prolonged the economic agony, maybe not for the markets but for the actual economy. >> in the actual economies over the past months we've had three record jobs gains. there's urgency across the country. if you look at new york and chicago versus places such as georgia and missouri and even parts of ohio that are reopening, you see a big difference here. you see people coming back to work, you see people returning to the stores, people returning to church and the schools. >> you think we can handle it. >> i think going forward that's what we're going to see play out. >> okay. we want to thank you both for quing with us. "sawk" returns on the other side of this break with two big

hours ahead.

stocks set to jump again after yesterday's rally that saw the s&p 500 close above 3400 for the first time ever. this after u.s. and china

negotiators held a call on trade last night we'll take a look at what you need to watch. that's coming up in today's trading session straight ahead. convalescent plasma and the controversy surrounding the rush to approval. the mayo clinic's head will join us to talk about it. and the reopening of america and the impact covid is having on live entertainment. kansas drummer and businessman phil ehart will join us to talk about the impact on the music industry and live industries, live events overall. the second hour of "squawk box" begins right now ♪ ♪ ♪ are we allowed to play music again? >> i love it. >> maybe it will open the doors for us.

>> yeah. >> instead of that -- foreboding 2020 music >> they're doing it on "worldwide exchange" before us, they're playing good music, too. >> i hope that's possible. i'm glad you said aerhart. he asked him stories, i said, i can't remember anything. >> welcome back to "squawk box." u.s. equity futures at this hour are up again at least some things are going pretty wonderfully in the markets anyway we have a good lineup getting all the topics that matter to your money including big tech. eric schmidt, former google ceo is going to be on. house leader kevin mccarthy is going to be on barry sternlicht, calming influence about three or four

months ago if you recall and kansas drummer phil ehart on the future of concerts and live music. jeremy siegel on the latest market levels. i kind of drove past his apartment yesterday. i was down in the city of brotherly love briefly briefly for a quick stop, andrew >> meantime, the nasdaq, thanks, joe, nasdaq and s&p 500 closed on a record high on monday it's a sign of the times three stocks are out and in the biggest move, exxon smoebl out it's been in the dow since 1928. pfizer and raytheon out. replacing them salesforce.com, honeywell and amgen.

jeremy siegel, professor of finance at the wharton school. good morning to you. we're looking at some of those stocks moving, as you might imagine, they may, all of this as a result of apple's four for one stock split which would have made it actually too tiny -- would have gone to being very big to too tiny so they tried to rebalance things if you were on the committee, jeremy, is this the way you would have done it >> well, i don't know if i would have picked those. i'll tell you a number of surprises, andrew. exxon money going out, wow that was the biggest capitalization stock at one time of course, so was general electric, the biggest, and that was booted out it shows you how the giants can fall i think what is most interesting

about this change is sal salesforce.com, i would imagine many americans have no idea what that company is or what it does. to -- i mean, it's a great company. i wish i had bought it years ago, but nonetheless, to have a name of a company that isn't anywhere a household word is also showing how our economy is changing going digital but there's one thing i think is quite interesting. i just checked the data. despite the fact that the dow has lagged the s&p certainly over the last year, over the last 20, 30, and 40 years the dow total return has actually beat the s&p 500 so i'm not going to question the people on that committee that chooses those dow 30 they've done a darn good job over the years

>> as somebody who is in the mutual fund business and indexing fund business, what happens to these stocks? like a salesforce.com, for example, you just said a lot of americans don't even know what salesforce is. does that actually change -- stocks can go up today a little bit just on this news, but does it -- but being in the dow, does it create a broader halo of reputation, other things than actually what you think would impact the actual business to its benefit, for example >> yeah, certainly just in terms of name recognition, a lot of people are going to look it up. what does sales force.com do if dow thinks it's good, maybe they'll think it we all know the amount of money that is indexed to dow is very much smaller than that, to the s&p 500, so there are going to be, you know, some influence to be sure, but it's really small

in terms of just name recognition and getting into that elite group of 30, dow is the oldest continuously computed index -- stock index in the world. the original, 1896 it became 30 stocks in 1926 that's almost a century ago. certainly it has a history of reputation, you know, getting in there is very likely to have some positive effect on your company. >> jeremy, broader question. stocks have been on a run and there's a question of whether there's a real move at everything else. the value stocks all of the under loved countries and whether it's binary. is it new money going into the cyclicals or is new money going to come out of the tech names? >> well, you know, a couple

things i do think -- i mean, how important tech is has been shown to us over the last five months, and that's not going to go away, but the market has valued that so looking forward to 2021 where i think we're going to have a very full reopening of the economy, getting back to normal, finally those stocks i think will outperform next year. now that having said, i don't think that that means tech's going to go down because as i've been saying for quite a few months on your program, the amount of liquidity that's been added to this economy is there it's not going to be withdrawn by the fed because unemployment is going to remain high for a long time. they're going to keep low for a long time. that liquidity is there. it's going to continue to feed into the economy i think there's room for both groups to go up in 2021 even

though, you know, finally we might get a turn towards value people seeking yields and saying where else zsh y-- you know, treasury's at half a percent, bank account is at zero. dividend is dealt 2, 3, 4% those are mostly value stocks to the extent people search those and the extent that the economy finally, you know, reopens with therapeutics and vaccines, that does argue for a rotation. does not necessarily mean though that the tech stocks have to go down >> jeremy, you know, steve liesman brought us a report yesterday where he talked about an economist thinking that there could be a second recession that would be a double dip, if you will obviously that does not match with the market we were talking earlier, joe mentioned that to mike wilson. what do you make of the fact that economists have that prediction, which is different

than where the market is right now? >> well, i think 24that the onl thing that i think could be a double dip is a serious second wave without effective therapeutics that come october and november that's not impossible. i personally think it's unlikely and so i don't think that that scenario is going to, you know, unveil and reveal itself certainly some people feared that's a possibility, and clearly that will put a break on this rally and push stocks down, but remember, stocks are really forward looking assets even if it takes another six months more than we hope to get effective vaccines, when you come back with the liquidity provided by the fed, that's a powerful force we're not going to get anywhere

down near the marleaus a little pause if we can get that wave, but i don't think it's going to stop the longer term momentum. >> jeremy, before we go. just to clarify one piece of this because you just said the market is so forward looking and is often willing to discount all sorts of things that are happening right now. in terms of the time line, the market's been willing frankly to up end its own time line a couple of months ago people thought by the fall things would be better. we're here basically in the fall and we're not where people wanted them to be. they're now pushing them out again. how forward looking can you be is there a moment where you say the market says, okay, we have to look at this in a different way? >> the market is very forward looking. i remember coming on your program in february when, oh, my gosh, things looked like they're going south at a rapid rate.

and i said 90% plus of the value of a stock depends on earnings for the 12 months in the future. so even if you would wipe out all the earnings, get back to normal, after 12 months you retain more than 90% of value stock. stocks has the longest term of all of those assets. yeah, that's why you can have a u economy, you can have a w economy and you can still have a v stock market, because of that forward looking. the disappointment is the wave hit the southern states. now it looks really like it is subsiding. we have to admit that we're getting really favorable news on therapeutics and vaccines. that has gone at least as well as we had hoped, and if this wave does indicate, you know, not that we're going to eliminate the disease but the wave and the death rate is so far down from what it was in new york and new jersey, these are

the encouraging trends that i think the market is looking at and with that liquidity still has that upward momentum. >> jeremy, we want to thank you as always for your insights and perspective. great to see you. >> thanks for having me. when we come back, the entertainment industry hit hard by the pandemic, particularly the music industry and live concerts there haven't been any of them we'll speak to phil ehart, the drummer of kansas and the founder of drummer lights and the fallout. let's get a check on the markets. this morning dow is indicated up by 183 points after closing by 1.83%. s&p up another 15 points after it hit another record close and closed above 3400 for the first time ever yesterday. the nasdaq is up 21 points it set its 37th record close of

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that is kansas the coronavirus crisis has stalled live entertainment across the country leading to millions of job losses behind the scenes the live events industry contributes $300 billion to the u.s. economy every year. since march revenue has dropped to about 0 that is impacting everybody from bands, managers, venues, lighting engineers joining us is phil ehart, the drummer and manager for the band kansas michael strickland from bandit lights welcome to both of you phil, great having you michael, first time we've had you. want to welcome you. >> thank you very much i appreciate it. >> good to be here thank you. >> great let's talk about what's happening to the overall industry because i think the live events business is $300 billion to the economy live entertainment is $38

billion. there are 12 million people who have jobs behind the scenes. what's happening behind the scenes now what's happened to those people who would be there to set up the concerts and take things down? >> thank you, rebecca. thank you for having us on here today. entertainment arts and culture as a whole is $877 billion with 12 million people employed there are three facts about what's going on. first and foremost, no one knows our industry exists, no one. second, the people that do know that our industry exists do believe that because your rolling stones and your u2s are extraordinarily wealthy, that everyone within this space is extraordinarily wealthy and that's not the fact. most of us in the industry work for the artists and everyone below the artist level is struggling right now the third fact is, i want to thank cnbc for having us on here, this is the first national coverage this has gotten

the live industry as a whole went to zero income on march 13th and will be at zero income until march of next year unlike restaurants, gymnasium, hair salons we have no income and no chance of income. that fact is very simple, rebecca, because we can't have events, because we can't have 10,000 people together at the same place at the same time. so unlike some of the other struggling businesses, we sit in a moment where we can do absolutely nothing the key point is we're at halftime it's been five months until the virus hit. it will be another five months until we can get open if we can get open then. you've got 10 million people that literally are making no income >> phil, these are people you know well, have known for years and have relied on what do you see around you >> well, it's -- speaking for all my peers, we're all sitting at home. i mean, we were basically with a

new album heading out in march, heading out to the west coast when we got a call from our agent and said, guys, head home. california's closing up. oregon, las vegas, everything started to shut down and so we've all headed home. everybody is sitting home with no income. so it's the kind of thing that is very startling at first and then you start to realize, you know, all our support staff, our lighting, our trucking, our staging, everything is all at home so it starts to take its effect not seeing a light at the end of the tunnel it's not like well because -- speaking for kansas, we're already moving our dates from 2020 into 2021 and just the other day we started to move our dates into 2022.

so it's not looking any better, and as michael said, there's zero income. it's not like we can go over and play out in the park somewhere on the back of a flatbed truck we're stranded we're done yeah, it's -- kind of wakes you up, that's for sure. makes you pay attention. >> phil, do you have concerns about whether the industry can survive and whether there will still be all those people left, those places to play after we come out the other side of this? >> well, sure. i mean, i like to stay positive. it's the kind of thing you want to, you want to believe that some day we'll come out of this and there will be concerts again, that there will be sports, there will be parks and things in theater, ballet, all of the things involved in arts, anything where crowds can go,

yeah but as far as the things that look real, some of the things mike will be talking about are the venues if the venues -- think about your favorite theaters your favorite performing arts centers. the outdoor amphitheaters if you go if they don't have concerts for a year or two, they're not going to survive they're going to shut down and a lot of them, a lot of those theaters in downtown cities in the u.s. are prime real estate they'll be bought and torn down and when we all come out of this again and go out to our favorite theaters downtown, they won't be there. so it's something that -- you know, a lot of people sitting home, how is it going to affect me think about where you go to see things and to listen to music. you know, so, yeah, it's pretty

catastrophic and i think it's only going to get worse. >> michael, to that point, you have spoken with some members of congress about this. where do things stand in terms of potential relief for the industry >> thank you, rebecca. on march 14th i reached out to my two senators, lamar alexander and martha blackburn i expandedmy circle and spoke to them and their staff and i've been in contact with senator young and senator bennett who have written what we call the restart act. we've been pacing revenue. what the congress did for us back in april with the ppp was phenomenal that was a bridge loan when we all thought this would be over in 30 to 60 days then we've moved beyond that everyone is out of money within the small business community within those businesses that have been shut down.

so now we're looking at this next relief package that they're trying to craft. when you look across the landscape, the restart act is the only act that will take care of small business in a way that works for most small business. now bear in mind we're talking within our panel about venues, managers, agents, booking agents, lights, high rope people, there's 10 million people sitting but i spend all day every day communicating with senators and congress people and their staffs helping to guide them into what small business needs 1yer78ly but specifically what the live events industry needs to make sure that we can get through to january and if we don't as phil said, not only will venues cease to exist we're losing companies and more importantly we're losing people out of this market sector going into other market sectors which

is why it's so important the enhanced unemployment be oaks tended right now it's sort of in a log jam and we're hoping in the next two weeks that congress can come to terms on the next relief bill and get the restart language inserted into the bill and get the extended relief extended. >> i want to thank you both for being with us and shetding some light on this. i don't think people understand how many people are involved in this industry. the initiative september 1st is going to be taking place it's red alert there are going to be locations lit up red as an effort to try to shed light on this. michael, nice to have you with us phil, thank you for being with us and congratulations on the new album. >> thank you very much, becky. thank you. >> thank you joe? >> like a retroalbum cover

it's good. brings you back. kansas still doing it ♪ ♪ kansas okay, but just anything different i'm ready for some captain and toneil starwood capital barry sternlicht real estate market, the election, what he said a while back and whether we are in a much worse place now "squawk box" will be right back.

well the come back to "squawk box. best buy out with quarterly numbers. they earned and adjusted $1.71 a

share beat the consensus of $1.08. kparnl sales up 5.08%. best buy says it doesn't expect sales to continue at this current pace there's a big issue whether we're pulling lots of stuff forward. families out buying computers, electronics and the like given they're home and what that means for the future, whether those purchases just came earlier. meantime, a quick check on the futures. we are in the green this morning. about 159 points higher on the dow which is flipping and flopping around with some new names in it which we've been talking aboualt l morning. "squawk" returns right after this with barry sternlicht of ca. infinite "what ifs?" and contingency plans. creating funds that help target gaps in client portfolios. tap untapped potential. and strengthen confidence in you. flexshares.

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♪ ♪ >> man, i was kidding. you didn't have to play captain and toneil any music would be good, even captain and -- doesn't mean play -- let's get a check on the market real estate, becky's dancing what that means for reopening the economy. barry sternlicht, starwood capital. barry, not every guest is episodic there are certain series you watch on tv. each one stands alone. other ones you need to remember what was said before we've been through this together, i view you as episo c episodic i've talked about your initial appearance maybe four, five months ago when you were -- i mean, you were optimistic.

i guess that's what you would call it. very sort of calm. let's not panic here it's four months later the market is at new highs was your optimism misplaced in terms of the actual underlying economy and dealing with the disease? would you say you were dead wrong about that and we're actually in a worse place now? >> good morning, joe >> i did come on in early march and said that we would recover, we would over stimulate, which we did, that americans have short memories and want to win, which i think they did i thought also we'd make amazing progress in the medical area and the vaccine and i think we've seen that. so i think my basic theory is inta intact, which is when do we get this vaccine how widely distributed is it and

used and testing. the testing is the key to opening the cities i went to dinner last night. i was tested on the sidewalk in new york city before i sat down. i don't know about a temperature test the more people feel they're okay, the more we'll get back to what we used to call normal and the economy can rely on not handouts but its own i neshnfin. i wouldn't have expected the stock market to be up on the year global stimulus package, there's been 500 of them i didn't expect interest rates to be 68 basis points own the 10-year. we have massive, massive stimulative forces i think they've overwhelmed what i think are the big underlying negatives of today's world and the post-covid world it will be a struggle next year

as we have this tug of war between the trillions of dollars that are now in the economy and the 19% stimulus rates for americans. and we have a lot of cash. you'll come out with deglobalization forces which are negative for the global economy. you haven't settled on what your future of china and u.s. relations. for most of the market china is the growth market going forward. you haven't changed the fact that western economies are slowing in population growth and that we've piled on 125% debt to gdp across the world i still think the flood of money is going to win and i think consumers will continue and there's positives and negatives and we get to the election. >> then you get to new york. your viewpoint is not monolithic you are seriously concerned

about the long-term prospects for new york city, are you not in terms of real estate. double whammy, a lot of unrest, covid, everything else >> yeah. >> when does it recover? how significant is the haircut that most property values have already received >> yeah. so i think -- like i said, i think the covid will pass and the big cities will be okay, but there's two new players you have to add to your thoughts on big cities one is of course now i call it safety my friends -- i had a friend yesterday who called me looking for a house in greenwich never, ever left new york city he's not -- people are looking for suburban homes it's not the covid but safety. especially in the northern states like chicago, minneapolis, seattle, portland

i thought there were hippies in portland i didn't realize they had huge racial riots we have an office building in portland it never occurred to me we would have a block, a huge zone near our office and then the biggest thing will be taxes if you tax the wealthy, 1% is -- the biden tax plan, i'm happy to pay more taxes but i don't think the increase in the capital gains rate is a good idea for investment in our country which we need to do. that will go up 15%. if they don't reverse the salt, you're talking 60% taxes on the wealthy in new york city and they will leave. i've become a real estate broker for miami. i keep sending friends down that

they can buy and they're buying. i think it's a shame i think the de blasio administration has been a disaster i can say that publicly. they appear to be bent on bankrupting new york whether it's gyms, they'll open on the 2nd small restaurants can't serve indoors here but they can anywhere else. it's crazy this tug of war between the mayor and the governor is like a macho race into oblivion the city has to get its act together on the margin, what we care about is leasing velocity in the united states in offices you haven't seen negative absorption in office since 2009 but it's here now. i'm an optimist. i think companies will have to come back to work much more aggressively than you -- i was

recently with a ceo of a tech company. they said people don't have to come to the office since the middle of 2021 he said, that's not what we meant. if you have an issue with your children, they can't go to school we'd really like you to come to the office i'm hoping he will say that publicly so we can change the dialogue i do think most companies are much better off with their employees learning from each other, sitting next to each other, chatting with each other and it's a social environment. i particularly don't like working from home. i like a change of venue in my life i have enough stuff to do at home >> hey, barry? >> yes >> let's just be aware in the middle of the national convention, you talked about the democratic national convention, you talked about the possibility of taxes and the safety issues in new york city which are absolutely real and i'm concerned about all of the things that you're talking

about. what do you think happens and what do you want to happen in the national election and how do you think the national election, meaning the presidential election, will impact mayoral elections and the like i've heard an analysis that argues, you may get the lower taxes you're talking about or lowering the talks and able to get more push in the mayoral election in the cities around the country as a push back if you have a biden administration, i think there's an argument to be made that you may get higher taxes immediately, at least on the wealthy, but you may get more centrist mayors because you won't be having this backlash, if you will. what do you make of that >> look, i'm an environmentalist so i have trouble with the administration

joe knows that so he hates me for that >> that's okay that's unfair. i'm an environmentalist, barry i like clean air and clean water. i don't think that catastrophic anthropogenic global warming, and neither do most people in the country, think that trace levels of c o2 are going to end the world and are causing natural disaster clean water, clean up chemicals, clean air. >> i'm glad i pumped you up. >> just not c o2 phobia. you've got some carbon in your body, too, pal so don't accuse me of things that aren't true anyway go ahead go ahead >> the endangered species act isn't going to help the u.s. economy. look, i think the democrats have a very strong hand i think trump over played tax reform in one direction and it looks like we're swinging the pendulum too far the other way

whether taxes go back 30, 40, not a problem. corporate go to 3 or 4 on 100 billion, are they going to work to reduce the deficit or pile on more aid what you're seeing with the stimulus is a problem. the concept of paying people 70% of what they would make if they went back to work. at $600, the number was 75% of people were getting more money than they would get if they worked why would they work? we've seen the ramification as we try to open our hotels and restaurants. even in places like nantucket, they can't find workers. they'd rather be home. that's a mistake that was a well-intended mistake and i think they need to come up with a compromise because these people are at risk and they need to go -- they need support we can't hire them

there's no demand, no flights, no tourists, no attractions. there's no reason to be here other than locked in your apartment. >> explain this so i understand. from a presidential election perspective you would vote for whom and how does that impact you and the politics of the cities when it comes to safety, police, all of the other issues, what the impact of that is? >> you know, i probably would vote for biden right now but hoping that kamala harris at least was not a far left i think we have to have a peaceful world order i don't think -- i think our being friends with our allies, we know who our allies are i can't understand our tilt to russia we have to have a constructive dialogue, not a fist fight with china, i think the nation needs

to heal. i don't think we're going to do that with the rhetoric on the right. they're dismissing all opinions that don't agree with them as well i'm in the middle. i'd be an independent, fiscally conservative and socially liberal like most of my peers. we don't have a party. we kind of just wing it. >> all right barry, hope you're -- i'm worried about your carbon footprint with all of the houses and jets and everything. that's just me thank you. we appreciate you being on here. i know you're doing your part. i know you're doing your part. thanks we'll see you later. please come back for the next episode. andrew. >> absolutely. it's a great episodic element. thank you, barry.

when we come back, we need to take a check on what's moving in the market and then the fda authorizing a convalescent plasma as treatment for covid-19 coming under scrutiny by political pundits and scientists we'll speak to the leader about the move and what it means for patients "squawk" returns with that in a moment ♪ come on in, we're open. ♪ all we do is hand you the bag. simple. done. we adapt and we change. you know, you just figure it out. we've just been finding a way to keep on pushing. ♪

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coming up, the head of the mayo clinic's plasma therapy program joins us to discuss the fda's emergency authorization for convalescent plasma treatment. kevin mccarthy joins us. "squawk box" will be right back. ?

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welcome back, everybody. the fda granting emergency authorization for convalescent antibody therapy at a press conference president trump said that the treatment reduces mortality by 35% fda documents don't make clear where that figure came from but it may be based on data from a may crow clinic study published

back on august 12th. data that was published earlier this month looked at more than 35,000 patients. joining us right now is dr. scott wright he's the study leader for the mayor clinic plasma program. he's director of mayo's human research section and he's a clinical doctor. thank you for being with us. there's so much excitement around this potential treatment. very happy to have you with us >> thank you it's a pleasure to be with you it's been a pleasure to be part of this study led by dr. michael jonner and co-led by several of us at mayo clinic. >> there has been some discussion about how effective the plasma treatments are. the number 35% reduction in mortality, did that come from the may crow cho clinic >> i believe the fda hasn't told us where that came from, but my

best guest estimate is they took our data plus additional data we analyzed and sent to them after the pre-print plus additional data they've incorporated from around the united states it's an amalgamation and integration of data and probably is a conservative estimate of all of the data they have. >> what was your reaction to the fda's emergency use announcement it made surrounding this plasma treatment? >> we were delighted they reached a decision about whether to use an emergency authorization or not we've been working with them since late march in the design and we thought the study would enroll 5,000 to provide plasma where clinical trials were not being conducted. much to our surprise we've

enrolled over 103,000 patients in june we began sending them data not only on safety but preliminary signals of potential benefit or lack of benefit for them to start analyzing so they could make a determination about whether we continued with the expanded access program, closed it or whether they transitioned to an emergency use authorization. we've been in discussions with them for several months. delighted they reached the decision i don't believe it was rushed or pressured. they've been rather looking at it over several months i don't see this as rushed we're glad they made this decision because it makes plasma available to every patient in every hospital in the u.s. and its territories. >> we have been citing this with 35,000 people. it sounds like you are doing a much broader study with 105,000 people at this point i don't want to put words in

your mouth. >> yes. >> it sounds like you were saying they were being conservative that it cut mortality by 35% is that's what you think -- >> i think their estimates are better it's better with refinement. this is a fast-moving target the assays that we are using to look for signals of efficacy were developed in june and have been applied we haven't been able to analyze the entire 35,000 patients with the assays because of the mechanics of getting blood samples and having the proper types of samples from the convalescent plasma. please recognize that likely half the patients that we've enrolled came in between the first of july and now so we don't have 30-day follow-up data we made a decision around the fifth of july to use that as the

last date of entry when we did the analysis we sent off that's why we have slightly different numbers and they have more up to date data they validated it and didn't always tell us where they validated it that's their prerogative i saw one figure on twitter showing how they derived that. what they are saying is if you received convalescent plasma that has a high level of risk reduction of 35% compared to patients who got convalescent plasma at the same time but the plaids ma had low levels of immune titers. it's a signal of efficacy than i think a clinical trial would proceed on and power their study

based on the initial efficacy decision. >> you know, doctor, we have heard today of someone in hong kong who recovered from covid and then four months later came down with covid once again maybe it's a different strain, maybe -- i don't know too much about it at this point but it is raising questions about whether we can eventually develop a vaccine that would be able to tackle any of these forms if you get it, if you come back down with it. i guess it would raise the same question about the plasma. if this is an influenza or a covid that continues to alter and change and mutate, is that a huge concern for you would that be something you would worry about any of these vaccines or treatments >> i think recurrent infection is something we worry about with every illness. we also worry about it with non-infectious things like recurrent heart attacks and

congestive heart failure the community will look at this and mitigate those the duration of that efficacy or benefit might not be a lifetime, it may only be a year or two o it may require a couple of vaccines a year depending on what the initial research shows. this is similar to the common cold virus it's a coronavirus family. it's not uncommon to have one or more episodes of common cold or even the flu can recur so i'm not surprised by that, neither am i alarmed by it i think the medical community will develop treatments to take that into account. >> dr. wright, thank you so much for being with us and explaining the science behind it. i think there's been politics that got caught up in it that cleared up a lot of issues. thank you.

>> thank you >> andrew? >> thanks, becky. coming up on the other side of the break house minority leader kevin mccarthy will join us to talk about th clean is a feeling. ♪ e stimulus mccarthy and eric schmidt. just like that. and the simple joy of washing your hands, without ever touching a faucet. we think it's the little things that matter. and we know you do too. that's why we create moments to feel kohler clean, every day. ♪

good morning the s&p 500 eyeing another high. futures green across the board out with the old and in with the new. three names set to be added to the dow and dropped thanks to apple's latest stocks.

we'll tell you who's tagging in and who got benched. we'll ask if this market is too top heavy with tech. posing that question is someone with just a little bit of experience google ceo eric schmidt will join us with an exclusive live interview. the final hour of "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. music is back. no more kansas joe kernen along with becky quick and andrew ross sorkin not the state, the band. u.s. equity futures -- nothing wrong with the state u.s. equity futures up -- >> or the band. >> or the band 173 points that was implied you need to develop an eye when

you drive across kansas. if you get an eye for it, it's beautiful, beautiful, flat state. >> it's not flat that's why they have the -- >> western kansas is flat. eastern kansas is not. >> yes >> all right treasury yields are not really that interesting yet .69% or so and we'll let you know we'll let you know when we really need to start paying attention. i'd say at like .73 would be like a big move up might have to start worrying there about mortgage rates becky? >> yeah, i think you're right. alan greenspan told us that was the most important number, he always looked for that we started playing it on the ticker a little less important. doesn't move as frequently gold. >> yeah, right, see where that's going. >> an important story investors are following this morning is that big shakeup in the dow.

three new companies will join the 30 stock benchmark before the market opens next monday those new companies are salesforce, amgen and honeywell. as a result their stocks are all up today they'll be replacing exxon mobil which is hard to believe because some version of exxon has been in the dow since 1938. pfizer hard to believe and raytheon technologies. it has been in the dow since it was added as standard energy honeywell was dropped and they've been prompted by apple's decision to have a four for one stock split. that will divide by four because the dow is price weighted, meaning the higher the price, the more influence it has. apple will drop from the top spot to number 17. technology, as a result, is a huge part of this. you will have much less

technology reflected in the dow. howard silverblatt said that would take it down from 28% to 20.7% but with the addition of salesforce technology bumps back up to 23%. more news on apple, cohen raising its price target to a street high of $530 a share yesterday. morgan stanley upped its price target to $520 a share that stock is down by 2.4% still at $500 at $501. earnings mover to tell you about as well. best buy, the electronics retailer coming in above the street's expectations for the quarter. comp's sales doubling. best buy does not expect the current pace of sales to continue that stock down by 3.4%. joe? >> believe where that stock is all of a sudden. i guess it's not all of a

sudden house of representatives came back tovote on emergency funding for the post office. congress as a whole has still made no real head way on another relief package for coronavirus the next incentive to make a deal may come in a month when government funding runs out. here with more on whether a stimulus deal is, house leader kevin mccarthy is it possible handicap that? what would it look like? how would it happen? >> well, it's possible but it's less likely. you know, we came back for an emergency meeting on saturday, and that was about the post office the desire that the post office needed more money but the post office has had 14 billion on hand and has another 10 billion line of credit through the c.a.r.e.s. act that we already voted on as republicans, we voted on another amendment. offered dealing more money for

covid research and others. that was shot down it's concerning to me that we're getting so close to the election i'm not in the majority. i can't control what comes to the floor. almost this is becoming a political element instead of a policy one that it needs to be >> to go from point a to point b. >> yes. >> congress can vote some help for people that need it. how does it get exactly to where the weakest parts are for small business, where people are, food insecurity, whatever it is that really needs to be addressed, how do you do that can't the two parties appeal to each other just to focus on that and get rid of the other -- don't bring up cannabis. you always bring up cannabis me thinks you protest too much, mccarthy. >> i'll leave cannabis out i know that's an element the

democrats crave. >> so to speak. >> they think that's helpful to covid. no, it needs to focus on unemployment insurance fortunately the president took some action there. unfortunately the speaker wants to stay at the $15 an hour extra from the federal government per week even though steny hoyer says, no, we can come off of that ppp you already have 100 billion still sitting there. we have a lot of small businesses still being affected and needing help we can utilize that money and maybe even more. schools are using a great deal amount of resources to make sure the schools are prepared for students to come in. we had more than 100 billion for that we're arguing about how much we were 5 billion away. i don't know why that couldn't be done. these are key elements resources to the states. they're more than 100 billion that's already sitting there that we could provide greater flexibility. there's $1 trillion already appropriated that hasn't been

outlaid yet that you could utilize too. it seems as though pelosi, the speaker, is wanting to have $1 trillion more. she makes you want to spend it instead of saying, i already had it here, can i just add that onto it? that seems to be a real sticking point. unfortunately i think the issues we all could come to an agreement on we know the need for it. the president did take some action because the house and senate has not come together in this situation i'm concerned about the economy, it's too important. if we could stay in a roam, what concerns me more than anything else, they shifted the democrats for the emergency meeting on the post office and said we had to come back on saturday. if you watched, 68 democrats didn't even show 1/3 of them didn't even show up. i would believe the economy would be so important that everybody could show but they couldn't even bring that issue up as well. >> do you have concerns about if 80 million votes are mail-in

votes, do you have concerns, congressman? is there any way to avoid having such a large percentage of it to be mail-in is it okay if it's in the mail >> it's interesting. everybody's concerned about the post office when it comes to mail-in ballots. that's not a problem >> there's a real difference between mail-in and absentee that means everybody who's on the rolls gets a ballot mailed to them whether they want it or not. the problem is, the rolls are never kept up. we watched in l.a. they had a million more people than they needed an absentee ballot is where somebody is registered and they

apply for it then you have a protection in the process because you're checking their signatures based upon their voter registration that there's a check and balance there. that is a more authentic and a safer method for election. that's the fundamental difference of what's happening you don't want a bucket of ballots sitting out there for anybody to vote. you want to make sure your elections are honest or fair in the process. if anybody got their ballot, mail it, follow it, trace it if it doesn't get voted upon, go to the polls >> okay. the pundantry. i guess i'm not part of it i can't help it. the pundantry was light on policy, more on other things i've seen the pundantry say the president hasn't outlined at all what a secretary term -- can you

list five policy priorities if trump were to win re-election that would be on your wish list or should be on his or are on his? >> yeah, i can. >> what are they >> i think you should look at the contrast between the two the first thing you want to do when you're talking about an incumbent, no matter what they promise you about for the future, they promised you something four years ago did you keep your promise? did president trump keep his promise? did he build the economy bigger than we've ever had and helped everybody in america the answer is yes. did he create right to try that was so powerful last night you just had a guest on a couple minutes ago from the mayo clinic that's really what you're looking at when you think about plasma it's almost a right to try for those battling when it comes to covid. then when you think about criminal justice system, the president was able to change that

us usmbc said they would rebuild it debris americans home who were held in jails in other countries unfairly the answer was yes did he build a wall that was fundamental to what he said he would do so he kept his promises. now let's look what he's going to do in the future. he says he wants to rebuild this economy. i think that would be number one. we're watching day in and day out. looking at the stock market every day with your viewers. the answer is it's beginning right now. then what i want to see is i want to bring this divide together i want to invest for the 21st century, right the number one thing i'm looking at after covid that we're never put in this position before. can we find a vaccine to cure it instead of sit back and just argue and say nobody can go outside and we need to shut the economy down one more time i want to look to somebody like lincoln that can build an intercontinental railway in a civil war. doing a vaccine in the speed that we're doing, i believetha is the same achievement.

i want to make sure that china, that we have a supply chain that's improved. >> leader -- >> yes. >> leader, how would you grade the president's handling though of this crisis people really measure ultimately leadership in the midst of a crisis and by all fairly empirical measures the united states has not fared as well as other countries, just on a relative basis so how do you square that for the american people given that this -- and it's had an economic impact as well how do you square what's happening in the midst of a crisis given that americans worry about that and to some degree we talked about that with barry sternlicht.

>> could we have done something different there. you would rebuild it we've got six companies that are very promising out of the 14 for a vaccine that he's invested in. i think the test would have to be at the end of the process we did not want these many people to be affected by it or to die by it, but did he create the virus? no what is he doing to cure this, to stop this i think the big investment in the vaccine and the therapeutics is going to come in a short time if something happens this year, history will look back and say, that was unbelievable that you could get a vaccine built that fast that would be like a marshall plan that would be unbelievable of what we've been able to achieve. but could we have always done

better yes. is he the only one to grade? would you ignore comeau inside of new york, putting people into elderly homes and others that spread it further? there are so many people part of this could america itself always have done better? yes. i believe no matter what it is we should strive to do better. the real problem that i have is what if china would have opened up and just let our scientists in what if this was like ebola and we contained it just in africa, we could have contained it just in china instead of sending those international flights around the world in the last couple of months it's going down in america, it's spiking in europe, i think it's too early for that grade at the end of the day if you want to grade this, do we get a vaccine. nobody is going to get an a when it comes to it we do not want one person to have lost their lives. we don't want one loved one to have to see an individual die. did we learn as we went through

this yes. are we learning every single day? yes. just as you had a guest before, we are willing to take a risk. this is one thing i'll say about this president, he's willing to take a risk and push the fda on right to try that is what we need right now to solve this. >> leader mccarthy, as always, thank you for coming on today. >> good to see you made it to work, joe. >> i did make it i did make it. i had a couple of different bumps in the road as they say, literally. may have caused it >> you have a tough life your driver had a flat tire. >> my driver had a flat tire you know what, it's already fixed. he's waiting for me now. i have to get a haircut, congressman, as you can see. you look fine. you look great >> all right thank you, guys. >> all right >> great to see you. okay coming up, thanks, joe, meantime, a special exclusive interview with former google ceo eric schmidt how america's megacap companies have gotten even more

mega during the pandemic we'll talk about that and so much more with him as we head to a break, let's draw your attention to two particular groups of stocks, salesforce, amgen, honeywell exxon mobil, pfizer and raytheon why those specific names yeah, because the first group, they're being admitted into the dow jones industrial average that starts next monday. ntueatin"sce the latter. coin wchg quawk" on cnbc hey, kids!

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marco made landfall at about 6 p.m. last night. it weakened to a tropical depression forecasters are now focusing on tropical storm laura which is being blamed for at least 11 deaths in the dominican republic haiti and laura rotating and likely to become a hurricane today. could grow into a category 3 storm by the time it makes landfall near the northwestern coast. that's expected sometime tomorrow evening becky? >> andrew, thanks. a few stocks on the move this morning delta airlines telling employees that it will furlough more than 1900 pilots starting in october because of a significant drop in air travel demand. federal assistance to airlines is due to run out in the end of october. sticking with the employment theme, accenture plans to cut 25,000 jobs globally that's according to the australian financial review.

if that's not adding insult to injury, not only are we letting you go, we're ledding you go because we think you stink classy >> yeah. to paraphrase. coming up, the down sharp and then up above where it started. slowly coming up, two countries affi affirming. reaffirming. reaffirming their commitment for last year's phase one deal that's giving markets a shot of adrenaline do that is with wall street journal senior editor bob davis as we head to break. here's another stock to watch

please tesla ahead of the company battery day. next month ceo elon musk tweeting battery capacity could jump by 50% in the next three to four years they are putting charging stations at all waffle hous,se stay tuned you're watching "squawk box" on cnbc climate change is the fight of our generation. the biggest obstacle right now is that we're running out of time. amazon now has a goal to be net zero carbon by 2040. we don't really know exactly how we are going to get there. it's going to be pretty hard. but one way or another we're going to reduce our carbon footprint to net zero. i want my son to know that i tried my hardest to make things better for his generation.

welcome back to "squawk box. s&p will be in new territory or is premarket nasdaq up more becky? >> joe, thank you. u.s. and china trade negotiators once again affirming the

country's commitment to carry out phase one of last year's trade deal joining us to talk about the tensions between the united states and china is bob davis. senior editor at "the wall street journal." he's co-author of "super power showdown, how the battle between trump and xi creates a new cold war. thanks for being here. >> thanks for having me. great to be here >> let's talk about this news this morning first of all. i know you've been chronicling this watching the relationship between china and the united states the markets have been very eagerly trying to figure out what's going to happen with trade talks because obviously that's put pressure on stocks in the past this morning it sounds like they are moving along how did you read this from the u.s. trade representative? >> in our book we detail the

three-year battle between the u.s. and china over trade. trade was the tip of the spear in the fight between these two countries and now amazingly trade is one of the few strands that holds this relationship together i think that that's what that meeting shows. the meeting is the message it wasn't that they talked about so many foreign things and made decisions, it was the fact that there was a meeting. top u.s. officials, top chinese officials continuing to talk during this amazing slide in this relationship. >> is that indicative of how far the relationship has fallen or maybe the recognition that both sides need some sort of trade truce. >> i think it's a recognition of how far things have fallen and to expect things to fall some more to expect more initiatives out of the trump administration that

move the two countries in dissimilar paths but i think the message also is a boundary to this at least for the moment and it's reallyquestionable whether thi will continue through the election, but at least for the moment the phase 1 deal is safe. again, it doesn't mean that it's going to make it through the election the president has warned time and again that he might pull out, but right now, you know, very senior people on both sides are saying, you know, we're committed to the relationship -- we're committed to the trade relationship, not necessarily the rest of it we're committed to the trade relationship and we're going to move forward with it >> technology trades between the two and potential ban with tiktok, wechat and what's happening with huawei. how big of an issue is that and how quickly do you think those escalations will happen if the bands go through as expected

>> i think it's a big issue. the tiktok and wechat, there are lots of outs on that tiktok looks like it's going to be bought by an american country. then we have the precedent is this a precedent by a u.s. president forcing an american-based company to sell and also asking for a cut of the proceeds we'll see how that works out with wechat they're still working on exactly how sweeping that ban will be when it comes to huawei, that's a very, very significant action. there were two swings at huawei before this where the u.s. tried to limit the kinds of things that huawei could buy. both of them had enormous, enormous loopholes that u.s. and foreign companies could work to continue to supply huawei. i think that's one reason china hasn't reacted that strongly to

huawei but this recent effort, this recent regulation is enormously sweeping i mean, it really could wind up strangling huawei outside of china. i mean, china will -- huawei will always exist because it's got an enormous domestic market. the u.s. market now is pretty much closed off to it, but there is the entire rest of the world and the u.s. has put into effect something that will cripple huawei in its sales outside of china. that's i think frankly the most significant move the trump administration has made against china. >> thank you for your time it's good to see you today >> thank you >> once again his new book is called "super power showdown, how the battle between trump and xi threatens a new cold war. andrew coming up, much more on u.s./china tech tensions with somebody who knows a little bit

about technology and more. former google ceo eric schmidt is going to join us in a couple of minutes before we head to break, a reminder you canat wch us on the cnbc app ♪ i keep working my way back to you, babe ♪ ♪ with a burning love inside ♪ yeah i'm working my way back to you, babe ♪ ♪ and the happiness that died ♪ i let it get away servicenow. the smarter way to workflow. riaccelerate your investments to be is or pull back?een. change the plan or stay the course? that's why northern trust is here. with specialized expertise... a history of success through every economic climate... and proven strategies rooted in data and analytics.

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up next, a wide ranging interview with former google ceo eric schmidt talk about it including the market takeover of just a few megacap gains. getting kids back to school in the fall and the future of work post pandemic. check out the biggest pre-market gainers this morning in the s&p 500. you'll see j.m. smucker leading the way. p rhtehd. we'll be right back.

welcome back to "squawk box. s&p 500 and nasdaq closing up.

driving the gains are megacap companies. mostly all tech companies, apple, amazon, microsoft and alphabet all valued north of $1 trillion. joining us in an exclusive interview talking about the growth of technology and so much more, u.s. china relations and tiktok, what's going on with work at home and everything else in between is eric schmidt we should tell you that eric schmidt has a new podcast that's literally launching today. he of course is the former coo of google. he is also the co-founder of schmidt futures and chair of new york governor andrew cuomo's commission on reimagining new york, a topic we also want to talk about with eric good morning to you. thanks for joining us, eric. >> good morning, great to be back. >> i do want to start with the megacap tech issue because i think there's so many questions embedded in what's happening and the acceleration of their success and whether that's a sustainable success and, frankly, what it means to the

rest of the economy. are you a believer when you look at valuations that are ascribed to the companies and the success they have that this is sustainable? what does this look like and what does it mean elsewhere? >> it's broadly sustainable. we thought things would take ten years that have occurred in one year consumer patterns are changed. people are online. i don't think we're going back to the way it was a year ago, and the companies that you're naming are clearly among the winners of this digital acceleration clearly having these companies be american firms controlled by the u.s. and so forth is incredibly important for u.s. dominance. >> i want to get into the issue of china and where we are with them and maybe tiktok and some of the other issues, but let me just ask you about size and scale. it's an issue you grappled with when you were running google, now alphabet of course is there a point where these

companies become too big there's a big debate going on in washington epic games has now gone after apple for its control of the app store which is now in court. do you think that that all gets up ended and how does that work into this larger conversation about china and being global >> i want to be the first person on your show to say i want to start by thanking amazon and apple and google and facebook and so forth for making it possible for us to get through a pandemic better than in 1918 can we just start by saying, look, guys, if these systems had not been in place, our lives collectively as citizens of america would be in much, much worse shape. yes, there's lots of issues, there always are as the companies get bigger there's going to be areas of conflict it's a fundamental point not only are they driving our stock market but they're driving the global presence of america in the world. it's incredibly important these companies be successful.

>> eric, you look at the success of these companies but one of the questions is the competition. the reason i ask it is interestingly you go back 20 years ago, most of these companies were not in the top of valuations in america. in fact, it was almost a completely different list. microsoft was the only company so a lot has changed that means there's a lot of competition. if we had this conversation 2040, do you think that the names on that list of the top ten most highly valued companies would be different again because then you'd say, yes, there is competition if they're still on the list, there may be questions about it? >> first place, there's brutal competition. among other things, there's brutal competition among the five 20 years ago the one really big player was microsoft there are other very large companies. each is run clearly, in different ways they win, they lose. we benefit from that brutal

competition. look at what you have in a mobile phone, the competition between android, i0s, the android ecosystem has brought a super computer into your pocket. that's going to continue the reason it will be different in 20 years is because artificial intelligence will create a whole bunch of new platform winners the way this works is the u.s. establishes global platforms that everyone else uses. we are for getting it is u.s. leadership at the platform level that has brought us to this point where we have multi-trillion dollar corporations >> i want to get into china in one second let me ask you as a former board member of many, many years of apple, what do you make of the epic games lawsuit and the idea of these different stores being monopolized? >> i don't know enough about their dispute. i left the board a decade ago. the important thing about the app stores is that they provide

some level of security branding and protection for the user. in china, for example, google does not have a single app store because of regulatory issues there's always been issues is the app you're using certified and so for i would be careful of breaking up the app store when you use an app store you can rely what's on it is represented to be what it is think of all of those viruses that you're not getting as a result of the app store. >> in terms of china, you saw tiktok just filed a lawsuit against the u.s. government. the administration has said that they got until september 15th for that to become an american company, otherwise they're going to shut it down. do you agree with that position from a security perspective, national security perspective? >> i don't know what the confidential security concerns are about tiktok the claimed reason for this

action is data sovereignty in other words, that the people would like to have the data for tiktok to be held in the united states if that is the goal, there is a much simpler way to do it, which is you require tiktok and others to do it to work with a cloud provider, amazon, google, others who have the necessary security protections covered by law what i worry about is u.s. taking a data sovereignty position, which is what this effectively is, sets the precedent this will be done against american firms that have global presence. essentially every american tech firm has data that's stored in the u.s. that's subject to u.s. law that's used by europeans, for example, and they bristle at that now you're setting the precedent that they can insist on this too. be very careful about the multi-move scenario, the back and forth in these things. it seems appealing but then it sets in motion a whole but much of things that can affect

american dominance. >> eric, what's the right answer in this regard you and i have talked about huawei i think you might have come up with the phrase splinternet, the idea that the internet is going to be split as a result of all of this. how do you remain secure on one side and at the same time not create a splinternet >> we have benefitted enormously by american values and american technology being used globally i worry again, sorry we have all of these worries, that we're splintering the internet as you said because it's so easy for a country to say, we don't like these other people we are safer as a world because we're using each other's applications, we're getting to know each other better in huawei's case there was the worry they were doing things inappropriate. there are ways to stop it and detect it. the best solution is to have a strong competitor in the united

states that strong competitor, right, should be able to wipe them out competitively. again, we're playing with tiktok and in huawei from a behind position i'd rather have strategies which are where i'm quite sure the u.s. will win. we can win these battles with focus, great innovation and all of the things we do well and open borders and lots of people using it outside the country >> hey, eric, just wanted to come back to a point that you were making about being concerned about american dominance continuing, especially when it comes to these technology companies i know a lot of people worry that if we change things too much that we would lose our dominance in this area i just want to -- who do you think would take over, these companies in china would step forward? do you think it's companies in europe where do you think the biggest competitive threat lies? >> the evidence is that china is as hot or hotter as silicon valley and the corporations of america.

there's every reason to think that the chinese have not only copied but in some cases stolen technology from american firms and they're busy implementing them more quickly and at scale if you look at electronic commerce in china, it's far more advanced than europe and the united states. china is the one to watch. it's not the case that china will be allowed to have globally dominant forces so the consequence of china doing so well will be a further splintering, if you will, of the structure of these platforms when they are splintered, right? when china has its own micro processionors because we won't allow them to use ours, et cetera, et cetera, that divergence can result in a lack of security and great tension. we benefit from the fact that everyone uses the same architectures that were invented by americans 50 years ago on the internet imagine if the chinese had invented the internet and all of the weird stuff they put in it

that we would not like so we really benefitted from american ingenuity and i'm proud to say i want that to ontinue. >> so that's an argument for continuing to sell huawei microprocessors, just to make sure we still control basically, you know, the structure and the architecture of everything >> i am in favor of competition and i am in particular in favor of huawei figuring out if they're doing anything bad and using redundancy in other ways to block what they are doing there are technical ways of building systems that are unreliable to make them reliable i think it's important that these simple answer, block and stop and have the property that they caused your competitor to become separate and you'll never get them back. imagine the situation where 40% of the internet is dominated by huawei technology and it's completely incompatible with ours imagine what would happen if american firms no longer have access to 40%.

market if you look for example at the application block which today is occurring, how will chinese firms be able to sell apps that people want from america in their market they'll have to have their own you're creating competitors unnecessarily. >> hey, eric wanted to pivot the conversation and talk a little bit about the work you're doing with the governor of new york you might have seen jerry seinfeld had an op ed in "the new york times" yesterday saying that new york is not dead, however, there are lots of people that are concerned about the state of new york and cities across the country, be people leaving the city, the tax base in these cities, about what happens with the safety and security in the cities what are you seeing right now? >> the governor's done a good job in new york in this general area we have to get the pandemic below that level we are not doing it quickly

enough i don't understand why the american government hasn't been able to get this under control pretty much every other democratic system has. without getting it under control, people are not willing to go back to work, risk their safety, send their kids to school, teachers not willing to teach, so forth and so on. that has to be the highest priority once that's in place, i think the systems will come back people miss seeing each other. a zoom world is an okay transition but people like to be together they like to work together i don't think everyone will work from home all the time we will return it will take a few years new york has been through many such scenarios and new york will return as well. >> one of the things though that i think does have people concerned is what happens to the tax base there is the security issue that -- and safety issue that people are concerned about right now in the city. are these things you talk to the

governor about what can be done between now and a vaccine or a therapeutic given there's still not enough testing even in new york i think there was an idea back in march when this first happened that come -- by the fall we were going to -- you know, people were going to be doing surveillance testing on whether you were symptomatic or not all the time and that's how you get people back to school and back to work and yet even in states that by the way i think we made some early mistakes but hopefully have gotten a lot better, still don't have all the testing in place to give people that confidence. >> there are plenty of states that don't be have mask rules that are effective that's i had otic, unsafe and leading to people's deaths that needs to get addressed. part of the reason the northeast rate has been so low because people have been through a traumatic experience in march and april. they all understand. in new york, they're wearing masks and they should be set in

the trillions of dollars and we didn't put in place the rapid structures to do rapid testing with rapid testing corporations could open, people could go to work the test specificity and accuracy of these testing systems is quite good now, however, they are not broadly available still. that's a tragedy if it were the case that we had reasonably uniform mask wearing rules and rapid testing we could get back to work >> would you still invest in testing right now? you talk to a lot of venture capitalists they say if we spend the money now it's possible if there is a vaccine three or four months from now it might have been a bad investment to invest in testing, you a there's others who say, look, we're going to be dealing with this for many years, continue to invest in the testing, we will be needing to do surveillance testing a year from now even with a vaccine. >> the virus will be with us in one form or another for the rest of our lives, hopefully under control. just like the flu. we will need forms of testing to

make sure we keep it under control. the investment in such a thing is not only patriotic and good for humanity and a good moral thing to do but it's going to be a very good business trust me, if you could bring out a reasonably accurate testing system or reasonably good anti-viral right now you would become a very wealthy person. >> eric, we should also mention as did i at the top you have a new podcast out. you're turning the tables, usually you answer the questions, now you are asking them the podcast is called "reimagine with eric schmidt. it is live this morning. what led you to do this? >> i got so upset over america's failure to deal with covid and in particular the collective failure of our society to deal with a genuine war scenario. this is a -- this is a real enemy, it's an enemy of all humans we could have done better so let's fix that now i start with the u.n. secretar general and i go up from there

>> so is this what they call a limited series or is this going to be, you know -- "squawk" has been on the air for 25 years now, more than 25 years, are we going to be listening to eric schmidt the podcast host for a very long time. >> the media landscape is brutal and i hope to do well. >> eric schmidt, thanks so much for joining us this morning. as i mentioned, the podcast called "reimagine with eric schmidt" you can listen to it wherever you get your podcasts you are not keeping it -- you're not keeping it on google exclusively or spotify or -- >> no. no >> you're available everywhere, right? >> we are available everywhere globally. >> and we will make this interview available on our podcast squawk pod which people can get as well this morning thanks, eric appreciate your time and perspective and look forward to seeing you again soon. you bet. coming up, a live update on one of this morning's most important premarket movers plus

jim cramer's first take on the trading day that's ahead futures pointing to a solid open premarket. stay tuned, you're watching "squawk box" on cnbc we wilbeig bk.l rhtac ♪ you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis.

all right. let's get to cnbc headquarters jim cramer joins us right now. and, jim, i've been waiting all morning to get to talk to you because i want to get your take on these new dow components coming in. you saw salesforce, amgen, honeywell all moving up pretty sharply. does that make sense to you that those stocks are up so sharply >> no, but there is a cohort of people who don't listen to us, who don't care that in previous

years when something is added to the dow it has a spurt at the beginning and goes back down because of the money index what's incredible is amgen is not a real growth company. i like the company it's kind of like pfizer honeywell is a better growth company, kind of like raytheon salesforce is nothing like exxon, exxon was a great company. interesting they took out exxon not chevron. exxon has an 8% yield. that yield may not be sustainable they get rid of that salesforce is a company that a lot of people don't know as someone who ran a subscription business salesforce is the greatest company in terms of being able to boost your subscribers. i have marc benioff on tonight i think they will tell a good story. i wouldn't necessarily sell that one. honeywell is a great company, back to where it should be, but there is this cohort of buyers, becky, or rebecca, as one of the guests called you which i love,

and they're not deterred by the facts, their enthusiasm cannot be quelled by the facts. it's extraordinary it's not the '90s, since the '80s since we started doing 401(k)s and had iras people are excited about royal caribbean, honeywell it's it incredible amgen up 8, do they know what amgen does >> that's what i thought it was the robin hood traders jumping in with this trying to head scratch and anything out why each of these companies are going in, the one i thought with honeywell is darius has tried to make that company more technology oriented >> yes. >> if you listen to the dow jones index people maybe that's what this is about because they're trying to get more leverage towards technology because of the crazy split with apple stock and what that means because of the way they come up with index valuations. that was the one straw i thought maybe hubby well is more

technology centered and focused than raytheon. >> you are dead right. dave cody did a terrific job at honeywell. darius has shed some of the more industrial companies, become much more software oriented. it is a great stock. has less commercial aerospace than raytheon, raytheon has more defense. the biotech stocks have been down for five straight days. amgen has gotten up here because they were able to get a drug for when bristol-myers had to close it's transaction, they got a give away, amgen has a good anti-cholesterol franchise but amgen has missed quarter, missed quarter until the most recent quarter. i'm not sure it's the best run in the group a stock like regeneron, it's a $600 stock, i just heard eric schmidt talk about you need more testing and more drugs he should look at the cocktail that regeneron has right now

with roach they need people to take t it's a winner, i think that that's the one the president ought to focus on, that's the one that the nfl should to focus on, len schleifer has been great talking to meg i don't understand why people aren't talking about regeneron they've been down ever since they announced terrific results. i want to be in it, they won't let me you have to be specifically next to covid or being sick but it's -- i think it's the save i don't remember. >> we will see you in a couple minutes. >> it's the savior. >> thanks, jim see ya. >> final check now on the markets before we head out of here we are looking about where we've been for most of the early morning session, up about 140 points, up 13 or so on the s&p 500, nasdaq up a little over a point. i was excited about going to frank holland, you giets, that's what was -- we have time, he's going to talk to us about best buy. the brick and mortar is not dead

apparently because best buy i think you go shop there, you get some service. >> if you build it they will come. >> might even buy it there anyway, i'm going to have a smooth trip in tomorrow, i can feel it. >> cross your fingers. >> fingers crossed make sure you -- they're panicked we might not hit nine straight up. easy, i got it "squawk on the street" now ♪ good tuesday morning, welcome to "squawk on the street" i'm carl quintanilla with jim cramer and david faber. futures are solid, pointing to some fresh record highs as the u.s. and china reaffirm their commitment to that phase one trade deal got some changes to the dow as well plenty of upgrades and price target hikes for names like facebook, apple and starbucks. kay shiller is in as well up 4.3. the roadmap begins