it is 5:00 here is your foo"five@5. investors putting things on hold and nasdaq tries for more gains. night two of the republican national convention pushes deeper to uncharted political territory as one trump supporter faces criticism for his comments texas and louisiana bracing for

laura as it intensifies into a category 2 hurricane 16 years in the making, palantir finally making a bid for the public market but not without a lot of investor scrutiny move over bill ackman, there is a new face you ever watching cnbc >> good morning. i'm dominic chu in for brian sullivan today a bit of a miss so far you can see the s&p higher by about four points. the dow jones lower by 37.

the nasdaq outpacing after the s&p 500 closed higher. hitting the 17th record close of the year nasdaq trying for a five-session winning streak as it pushes. now seeing the 38th record close of this year the dow bucking the trend ending the day lower. the key to watch there, 28,000 mark early going, you can see the shanghai composite about flat on the day as well. meanwhile, we are seeing outperformance in the german dax up about a half a percent. the ftse 100 underperforming as

it has been all year currently down in this session we continue to monitor the developing story in the gulf of mexico hurricane laura intensifying to a category 2 storm overnight with sustained winds of 105 miles an hour. producing a life threatening storm surge and a lot of flooding expected to hit louisiana and eastern texas. texas governor announcing yesterday the state is racing to evacuate residents in high-risk areas in a social distanced manner we are keeping an eye on oil prices right now shuttering in the gulf ahead of that storm elsewhere, the world of blank check companies are gaining

popularity with another big name in the mix >> good morning. former goldman sach group president gary cohn seeking investment for a new special acquisitions company the latest name to join the frenzy of blank check companies who raise money for deals before an actual target is in their sights paul ryan, bill ackman and bill ryan palantir technologies known for work with the cia and other companies says it wants to go public and what could be the biggest debut of the year. marks a major moment which is widely seen as the most in the

silicon valley revealing about $580 million in losses on sales of $742 million. levels to test the appetite of investors shown increasing resistance to startups, most notably wework >> and charging teva in generic drugs for prize fixing they will vigorously fight the allegations in court shares are down about a share and a half this morning. back to you. >> thank you for those details to the campaign trail. day two of the convention under fire for a speech given by secretary of state mike pompeo while on a trip to israel. some lawmakers want answers and

they want to address the baseline between politics and official state business. tracie potts joins us from washington, d.c. good morning >> good morning. democrats want to invest gate did pompeo break the law or any regulations doing that political speech on a government trip. it is part of a number of criticisms and concerns raised by critics of these rnc speeches being done on government property and we'll actually see that again tonight >> life, liberty and the pursuit of happiness >> patriotism is the focus tonight as vice president mike pence accepts his nomination from historic fort mchenry in baltimore. last night, first lady from the white house aiming to win swing state female voters.

>> he's not a traditional politician, he doesn't just speak words. he demands action and gets results. >> mr. trump praised by two of his children >> it is a fight only he can win. my faith has made me believe america can truly be great again. >> in one area, he continues to dominate the polls >> americans are going back to work there is a housing boom, auto boom, consumer spending boom stocks are in record territory >> the president popped up twice on video in a naturalization and pardoning a convicted fellon in nevada >> projecting covid numbers outside the auditorium the sharpest attack came from former florida attorney general pam biondi

>> democrats have been lecturing. their nominee has been writing the textbook for 40 years. >> calling her claims a fountain of false hoods >> we heard a lot about crime and the economy. not so much coronavirus. poles are telling us that is the number one concern for americans. >> i'm sure something many republicans will have to address in the coming days >> back to the markets, the stocks search for more momentum. nasdaq closing at new record highs. your next guest says history offers investors some clues on this market and where it may be headed next. bill stone, as a former investor

advisor, i would caution >> i think when you look at all of the large selloffs and rebounds in the post world war 2 rm era. higher a year after that at least good resident coming off the bottom i will offset that a bit saying particularly when you get these very strong returns at the beginning, you'll see the base of gains slow. i think that's another thing to keep in mind that these may get harder to come by.

>> talking about these recoveries and coming back into question about the markets what is the outlook and what does the data tell you >> it is a bit mixed we have a loss of momentum with the rise in cases but we've booked five straight weeks of better week over week numbers on the data in the u.s. europe is struggling with that it takes time for data to pick up again for that to show up i think you you are going to see some better glimpses of it we are going to pick up momentum here there are pieces that are not doing well and will probably continue for a while in the travel world you are seeing pockets of strength and housing continuing. what are your favorite sectors

right now? >> think industrials, banks have traded well. a little less risk, utilities have exposure to what will go on in the economy >> when we come back, details on the quarter for one silicon valley giant a tail of two retailers as the pandemic continues to hit the industry very hard trouble at the golden arches and scrutiny about its former ce o's exit package more after this break. hike!

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salesforce is expecting better than expected second quarter results. companies benefitting from its demand that produces cloud computing software gifting many the option to work from home for the coming year and perhaps beyond then shares of hue let pack ard enterprise the software and services provider issuing upbeat fourth

quarter guidance hpe plans to be in more stable position pointing to revenue trends and higher computing systems. those shares up 6% pre-market. then you have toll brothers. the company projecting stronger home deliveries in the analyst and those shares up 2% check this out this is bed, bath and beyond it is cutting 2,800 jobs from corporate headquarters and stores the home furnishing retailer is looking to shift more on line. shifting to buying on line and pick up in stores and curb side as well. those shares have lost about 29% of value just on the year to date basis >> still ahead, the stock insiders say is ready to

outperform come 2021 already underperforming. why she says it is time to get in early >> announcer: today's big number, $122.7 billion that's the value of warren buffett's investment in apple. more than the market caps of ip, honeywell. ♪

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a tale of two retailers and their stocks nordstrom reporting loss as the pandemic shut its stores nearly half of the quarter. digital sales dropping too partly because of shifting the anniversary sale urban outfitters is soaring. same store sales fell 13% but that was better than expected as they reported lot of revenue from stores that were closed let's talk more with the retail advisor. as you are hunting for these stores, tell us about nordstrom versus urban outfitters.

>> you hit it. definitely a sale of two different stories here if you look at nordstrom numbers, with the anniversary sale shift, compared to a macy's and a kohl's that was up way more than that they were the first years ago. while their inventories are really tight and really clean, their margins are still way down what we've seen, they are just not ordering new product the fashion and apparel sector is really on hold. >> for the longest time, we talked about the growing rack operations that off-price unit they had is it in the same situation ross and tjx is in as inventories get

leaner >> we heard from tjx that they couldn't get enough inventory in the stores the supply chain says it is, quote, hideous right now there are so many log jams that is really hard to get product. if you look at rack for nordstrom, it way under performed ross and tjx here. we have a bigger picture here perhaps increase market share loss for tjx, once they get the inventory in place, they need to get the supply chain in check, i prefer tjx over nordstrom here >> what is the driving force the anthropology side of things or urban outfitters itself >> a couple of things.

you have free people brand which has done an amazing job. they have a work outbrand. doing free videos and work ouous on line. urban outfitters talked about august wasn't worst despite the back to school issues. mark downs have been better because inventories are so tight. while they are selling less stuff, they are selling at full price and higher margin. that is the story going forward. better margins and 15 to 20% lower sales. >> nordstrom and urban outfitters, we'll talk about them now are either your pick >> what i'm liking is ulta if you think about the

department store base and what we've heard from nordstrom the market share shift in beauty is still up for grabs here you have ulta, which is off mall the customer doesn't need to go to the dome of traffic and germs. they can get in and get out. what they are doing effectively is buy online and pick up in store. they are really early in that game so many retailers are saying, our margins are so great you you are going to hear a lot about that and a margin bump for them finally for holiday gifting, it is going to be all about self-care. what better gift to give and their loyalty to shift to online means that their customer online will spend about three times as much as they do in store >> thank you for that. we appreciate it coming up on the show, an abuse

of market power. one e commerce player riding a surge of new business since the pandemic is calling out amazon as the gulf braces for laura, why new data from realtor.com could change the flood zone maps forever. and one wild ride, we are back with that story after this hike!

coming to the green flag, racing at daytona.

they're off... in the kentucky derby. rory mcllroy is a two time champion at east lake. he scores! stanley cup champions. touchdown! only mahomes. expect anything different? the big events are back and xfinity is your home for the return of live sports.

stocks fighting to keep the rally going hitting fresh new record highs republicans shatter the norm with night two of their convention and president trump getting a bump in key battleground states. and hurricane laura growing. residents brace for an impact. wednesday, august 26 you are watching "worldwide exchange" on cnbc. welcome back to the show, i'm dominic chu in for brian sullivan here is how stock index is

looking. the s&p 500, we'll put gold stars here both hit record highs yesterday and both implied higher at the opening bell higher for the fourth session hitting the 17th record for the year pushing it to deeper record territory. seeing the 38th record for 2020. the dow ending the day lower and not far from breaking even we close at 28,248 yesterday mcdonalds is revealing new details in an investigation of the former ceo conduct. >> you are right, they are looking at whether former ceo covered up employee wrongdoing and allegations of potential

misconduct within the hr department concealing relationships with employees to secure his he have rans >> and etsy versus amazon. garnering option from several groups who claim it will stifle small online businesses. carnival cruise line has canceled some early 2021 trips affecting world cruises leading from north america to south america. carnival down this morning >> thank you now to the latest cnbc change research states of play pole revealing president trump approval getting a bump. eamon with more.

>> we are starting to see a bump in this pole for president trump. it has to do about concerns of the economy. those are improving. that all plays in to the president's bump here. likely voters that we think are going to participate in these key battleground states so this gives you a sense of where we might be headed this pole was in the field before the republican convention looking at the president's approval rating. we see a rebound as the president bounces up to about 48% in terms of swing state voter approval that's about as good as it has been since may concern about covid is going down 66% saying they had serious concern. that's down from 87% earlier in the year that is a marked improvement

who would do a better job of handling the coronavirus 51% say biden and the democrats. 49% say trump and the republicans. biden has an edge in each swing state. we are looking at six of these biden has a narrow lead in each of them. that would bring a narrow blowout. the lead is very narrow and it could go either way. we are seeing that bump for donald trump now back to you. >> stick around. yesterday was night two of the virtual republican convention. the president and his allies appealing to his base on abortion and internation relations to the media and economy as well. larry kudlow with his address. >> our economic choice is very clear. do you want economic health,

prosperity and opportunity and optimism or do you want to turn back to the dark days of stagnation and posseesemisim i say stay with him. >> joining me now is senior political economist, stephanie kelly. eamon javers still with us some strong words from larry kudlow he's out there telling people the trump administration is handling things well what do you see as the biggest difference of a trump continued administration opposed to a joe biden one? >> i think with his comments being economic minded and seem to be more business friendly, the reality is we are in the middle of an incredible global

recession. the u.s. is not immune to that we have 30 million voters out of jobs i think that is the difference maker. can the republicans win the argument that the trump administration has done as well as he could or will he end up getting blamed particularly with his key voters that are also going on those unemployment benefits >> if you look at both tickets, there have to be marked differences and similarities what are the key differences from an economy standpoint that you you are seeing >> they are actually and genuinely at a cross roads in the united states around the shape of the u.s. policy i do think if president trump got reelected and in the senate,

i think you'll continue to see this low tax approach and seeing the significant support we have seen under biden, you are talking about significant shift in the fiscal spending that leads to more spending that has to be funded through hire tax, corporate and income tax rates >> eamon, what is going to with inth -- win this election? are we going to get enough tax breaks, are people going to says that enough to buy my votes or do you think there will be a tilt towards other social issues >> i don't think that's going to be about tax cuts. there are concerns from republicans that biden will come in and raise taxes this is going to look down the

double barrel of the virus and the economy. you are seeing a virus that is crippling the ability to go to work that's why i'm standing in my living room right now. americans are feeling this and the free fall of the millions of americans that have lost their jobs. airlines are announcing they are going to make layoffs permanent after the funding delay that mandated they were going to layoff people. in the rounds of layoffs, that is very bad for the president. so trapped to the virus there. his fate there is the fate politically. >> it is hard to imagine similarities between a possible biden administration and that of trump. one of the experts i talked to said, when it comes to china, it

is similar is it fair that trump and biden administration would look at things in a similar fashion? >> looking at the path versus the actual outcome itself. it is very clear in voter polling and among democrats and republicans, there are deep skepticisms about the chinese regime, transparency and technology those are things that are shared it is more around the path we would see. rather than necessarily waking up on a monday morning to a tweet that indeed the trade deal is done or back on under biden, i think he'd be much more strategic and want to work more with european partners it doesn't mean u.s. and china would come close again by any means.

it is just the path looks different and feels different in terms of volatility. >> really quick, what do you think will be the key to this particular election? >> i think ultimately, it will come down to highly uncertain turn out in the moment with biden's lead nine percentage points should suggest a strong electior call college voting, that leads to the voting turn out and trust in postal voting. can democrats get voters out to win the election where republicans are being effective is around making sure they can rally up their voters it is about turn out on the day.

>> turn out is the key we appreciate it coming up on the show, remapping american's flood zones. new technology of letting homeowners know if their property is at risk. and more as hurricane laura is approaching shores jay gray is standing by in louisiana with more. good morning >> reporter: in lake charles in the path of this storm a new national hurricane center advisory and more coming up next on "worldwide exchange." my name is joe. i'm a sustainability science researcher at amazon. climate change is the fight of our generation. the biggest obstacle right now

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welcome back we are closely monitoring hurricane laura in a category 2 storm. expected to bring a life-threatening storm surge expected to hit louisiana and eastern texas later today. the state is racing to evacuate residents in a social distanced manner also keeping an eye on oil crude prices as most shutter oil output you can see brent futures for oil up on the day.

jay gray joins us now from lake charles, louisiana jay, how are people preparing down there >> reporter: well, dom, doing everything they can hear especially with the latest news which indicates this storm could be a category 4 before making land fall. calm conditions could change the time to prepare and evacuate quickly running out here sand bags, boards and building tensions along the gulf coast. >> kind of nervous for texas and the westside of louisiana. >> reporter: that's where forecasters say hurricane laura will strike. brittany thomas and the family locking down the house before land fall. they'll ride it out. >> we have water and supplies. where we are at, it is like a

bomb shelter i'm okay with that >> it is time to go. >> reporter: many are moving to higher ground by the bus load. as families rush to shelters, the storm is not the only concern. >> here we are in the middle of a possible hurricane trying to actually think about covid too >> reporter: many areas are using larger and more facilities to make room for social distancing >> we expect the land fall to be just after midnight wednesday and thursday it will be high tide that will add additional water.

that will cause major problems as well. we looked at the map of the storm path there is a lot of oil and gas interest in the area we are talking about oil refineries impacting right now. >> they've already pulled many of those off it will slow production a bit. they'll be able to get back out there. they won't put anybody in harm's way until laura is out of the

area >>. >> bracing for potential flooding, some actually don't have flood insurance because current federal flood maps, do not factor in the effects of climate change and looking at the potential impact of the housing market ♪ >> when hurricane harvey inundated the houston area years ago, most of the homes damaged or destroyed did not have flood insurance because they were not in fema flood zones. the fema flood maps don't factor in climate change. a new nonprofit first street working with more than 80 scientists and researchers is working to create a new flood

risk list. >> we are building flood models that calculate the past, present and future risk for every home in the country >> fema classifies 9 million to have substantial risk requiring flood insurance, first street identifies 40% more or nearly 14.5 million profits with the same level of risk calculated more than half of the properties in harvey's path were high risk. first street uses current and projected climate data including sea level rise it maps actual rain fall and includes areas fema hasn't mapped >> it is a great partnership to create awareness of flood risk and how it is likely to change >> backed by various foundations and offers information free to the public, it is selling bulk data on millions to mortgage

companies, insurers and commercial real estate brokers and appraisers and to realtor.com which will now include flood risk to every property on its site some sellers won't like thow th information affects the value of their home >> armed with the decision, homeowners can make good decisions for themselves >> first street is already embarking on new projects to mark fire and drought risk and other companies. this is likely to change a lot of factors

>> i'm going to look at my property now seeing impact now as people start to consider whether they could be in a flood zone in the future or not. >> that could happen realtor.com is starting that today. in june, they may not have fwhoen it but when you go on realtor.com, can you see that score. anything that impacts the value of the home, will impact the sales of the home. >> a busy dynamic for many people's biggest portfolio, their house. coming up, looking to keep record gains coming. why cash on the sidelines may further fuel the markets coverage of the federal

reserve's virtual version of the annual jackson hole summit starting tomorrow. "worldwide exchange" is back in just a moment.

we are flagging a stock upgrade. boosting the price target on tesla to a street high, $2,500 per share. while the competitive edge in cars may soon start to shrink, it continues to expand in other areas like brand leverage, battery capacity as well they are up on that news welcome back, futures are pointing to a mix on both the s&p 500 and the nasdaq considering the amount of cash

still sitting on the sidelines, a broader market could be on the horizon. founder of new england investments and retirement group. take us through why we think all of that cash on the sidelines will be deployed >> if be look at what is happening, we have a dynamic where active managers are more and more in near of not catching up with the index. there is approximately $4.6, $4.7 trillion on the sideline. that cash will continue to be deployed we move closer to the election, we'll see more and more volatility based on the cash and liquidity of the markets, we'll continue to see technology and growth sector dominate. >> let's talk about how that cash is going to get deployed.

is that going to continue regularly? are there folks waiting for things to happen in the markets? >> the institutional management that really drives the market. they'll have to continue to p ut that cash to work. >> let's talk about where they are going to put it to work. where they are seeing the volatility as opposed to chasing the momentum names the tesla upgrade on the split target price is that the type of thing people are going to be chasing. >> we are going to continue to see growth dominate. we've noticed over the past couple of months, every time we see a situation where value comes around and some of the recovery stocks might have a three or four or five-day rally.

it is a case that's not going to last long and growth stocks will be leading the market higher >> those cloud stocks, will they go higher. is cloud still the place to be >> we believe it is. we saw what happened yesterday with sales force right now, 30% of the economy is very strong and as active managers this is a good portion of what could be stick with what's working.

that big symposium is kicking off. what should the fed do and not do for stocks to keep going higher >> i think what powell will do is to reiterate the message and do whatever they need to do to keep the economy higher. i don't think by any strecht imagination that will go any further -- with that being said as we come into the fall season right now. with the threat of covid acting up, that would be a terrible situation. with that said, that will seek the market and whatever they need to do with further stimulus to strengthen the economy to continue the trend going if the trend keeps going, that is further investment.

what could derail the market rally at record highs right now. >> a couple of other things, if we see a really strong outbreak of the virus news that the markets are expecting a vaccine at the end of the year. from what we've read and researched on the scenario on the optimistic side. in the vaccine of the first quarter of 2021. that continues to be the news coming out if that changes and it looks like that vaccine will be pushed out further combined with the outbreak stronger. the third factor would be if we've seen as we come back from vacation, more progress on the next stimulus package coming out. regardless of the fact that we

mentioned and those are the factors that could make the market rally >> that does it for "worldwide exchange." you can see markets are strabl ahead of the opening bell. modest positivity as we approach the opening bell "squawk box" picks up all the coverage after this break. hike! coming to the green flag, racing at daytona. they're off... in the kentucky derby. rory mcllroy is a two time champion at east lake.

he scores! stanley cup champions. touchdown! only mahomes. expect anything different? the big events are back and xfinity is your home for the return of live sports.

good morning, the s&p and the nasdaq closing at record highs. we'll see if that continues. getting you ready for today's economic data. fed speeches best time of the year, fed, love them palantir opening its books new details on one of the most

anticipated listings in years and hurricane laura now expected to be a category 4 before it makes land fall tonight in texas and louisiana. it is wednesday, august 26 "squawk box" starts now. >> good morning. i'm andrew ross sorkin along with joe kernen. melissa lee is with us today becky is off the dough looks like it would drop about 60 points at the open s&p 500 looking to open a little higher right now we should also take a quick look at treasury yields this morn