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 morning

and see where they stand creeping up. over the seven handle at .713. we'll see what kind of core relation that may have with the equities market. melissa, welcome to the club this morning >> it is great to be here and start the morning with you guys. >> i say that with a hint of sa sarkasm. >> she's a regular you are ready to play. >> always, you got to bring it each time. >> no i in team. >> there's only a me

upgrading laura overnight and learned it is rapidly intensifying and bracing for great winds. a category 4 with winds of 130 miles an hour. more than half a million people have been ordered to evacuate from these areas 84% of off shore gulf production has been shut in compared to 90% in katrina not only is this having an impact on oil productions and industries from this storm that

could impact tonight >> salesforce shares soaring after the company reported earnings of $1.44. more than doubling revenue is above estimates core sales of the cloud road by 13%. the company got a big boost on investments. guidance for the quarter was below estimates but revenue was higher than expected sales force replacing exxonmobil before the dow quite a move that is over 13% andrew >> in the meantime, just before the top of the show, we have new details now of the most anticipated public reviews of the decade palantir planning to list under

the stock exchange under the ticker pltr planning the direct listing. the same path slack and spotify took that means, the company not raising new money but allowing others to sell into the new market last year, despite a 25% increase of revenue. worth noting the ceo said the company was founded in silicon valley we seem to share fewer and fewer values and commitments from the start to turn down opportunities repeatedly to mine data recently

announced plans and clear on its stance in china. we have chosen not to hold the impact and will propose three classes of stock that will be held by a voting trust held by the founders just below 50 percent of the voting structure power including facebook and google fur concerns about the power structure, that is something they do share in common with the rest he's been critical. it is a data driven company.

this is a company built on the back or in the afternoon of 9/11 to track down terrorisms described as a commercial internet giant using data relative to the way. kind of a new version of woke. almost certificate of a right leaning version of wokeness. you could imagine the truly woke those in the military complex working against wokeness you would think. they are attacking all the pc

companies for stealing their privacy and selling it it is kind of the reverse wokeness i like it. >> it is of sorts. i should note. alex would define himself as a self--defined libertarian. but in fairness of the middle of the election, he has been publicly against this administration and president trump. >> from a political perspective, it is much smarter for a company to say, you know what, china, we are going to pass on your business right now they are working for the military and the cia, you can't also host servers and data from china. you are forced to choose sides some will slam it saying you

will forego future profits they know exactly who is controlling the company. they've got structure where the owners are in total control. it is kind of an enig mau. >> he's an interesting guy he's a very principaled guy with clear principals his clear take away is the frustration as far as when google decided not to move away from that government his view of the american people would have a much greater acceptance of the data

collection and other things that some people may not perceive as positive if it was a positive benefit helping the country in that way. he's always trying to push the conversation in various directions we'll see. what will be curious to me is how the company gets valued in the markets. it does still lose money an enterprise money, a sas company, very high capital cost in terms of when they get a client, they have do a lot of white glove work with big clients. once they do, the idea is, are they locked in can that client go anywhere? we'll see how investors value

that >> you remember in lord of the rings that palantir was that weird orb. he couldn't keep his hands off it and then he was like in a trans. >> you remember that >> i'm in that transright now. >> what else is new. >> coming up you know whats that like, that's just like when you turned on the convention last night. did you see some of that are you okay of course, it no, not eyes wide

shut it was wide open i had them open like i was in clock work oranges >> i can just see. some positive signs are containing the pandemic in the u.s. especially in some hot spot states we head to break, check out shares of toll brothers. signed contracts for luxury homes broke. we'll talk more about real estate in the 8:00 hour with sam zell we'll be right back. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

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an update in the u.s down from a peak of 70,000 infections on july 22. we never did hit that 100,000 a day that fauci said was possible if we didn't tighten things up a little bit more about social distancing don't go to bars without a mask. i don't care if you are 23 state of texas down from about half of the peak and florida down from 4,000.

arizona is reporting about a fourth of the cases a day than it had in the peak officials warn that school reopenings and pandemic fatigue during the holiday weekend could cause a spike. dr. scott gottlieb, cnbc contributor and on the board of pfizer labor day. forgot about that. a lot of people get together i'm trained. i got to tell you that things i used to do i feel people if they are closer than five feet it is very strange right now is that ever going to go away? >> i think it will look, i think we have to get through fall and winter. we'll see how it goes. a risk of an uptick of cases this is a 2020 event

as we get to 2021, we'll have enough exposure. hopefully a vaccine at some point in early 2021 will get this behind us we'll see as some people maintain a level of vigilance with the spread through the fall and winter. >> i can think of two other areas and one is like a rapid saliva test. is this is like a flu-like thing. that would be able to nail it on the spot and hopefully get that person where they are not going to be contagious and the other thing. like a cocktail where if they zap it and didn't decrease 35%

mortality but knocked it out that would be good too is there progress on both of those? >> i think we'll have both of those. even setting aside vaccines, anti-virals are progressing. there are a lot of competing trials competing for patients. we'll see quickly lateral flow tests come on to the market like a pregnancy test that you put saliva on a swab and you wait a few minutes. they'll give rapid results and be fairly reliable that will change the equation of doing screening. that will allow for and afford the operation of testing and do it in locations where you

don't have the capacity. things are going to change quickly in terms of technology to combat this >> doctor, speak to that testing piece. i just took a saliva test. yale announced, fda announced that would be used more broadly. how quickly do you see the equivalence of that test at home and a similar price point. when do you think that test becomes available and is it used simply by businesses and others and almost on a surveillance basis which may be the only way this can work properly they'll be available quickly they'll not be available to the consumer in the home you'll have to have them run at

a place you have a nurse or doctor's office, some kind of medical convention or laboratory the agency, the fda is requiring can companies they test to the market for consumers to put in place some mechanism they don't want people diagnosing those at home this is still a special pathogen that requires public health. they are trying to figure out the work around and test results to be reported the test would read out a bar code and you'd have to take a picture with your phone to get the result that would be uploaded to the ser central server in terms of the market in significant quantities where there is not going to be a shortage of the tests, i think

that will happen at some point in september >> when did we decide on the n convalescent plasma. the minute it looks like the fda rushed this and before the election, it looks like hydroxychloroquine is that reasonable the way this was handled. taking a look at the data.

the standard for authorization under that emergency use would provide for the benefit of public health. there is enough evidence to tell that the plasma may provide evidence in this setting and recognizing the data set they could find a group of patients that could drive from that earlier you could produce the convalescent plasma the better >> you are creating a higher dose of those antibodies with those drugs. >> there was an fda report that

the trump administration was looking to fast track the astrazeneca university of oxford study. would that even be possible? >> i'm on the board of pfizer, as you know. pfizer and moderna last week enrolled 25,000 new patients i think if the vaccines are very effective. 70 to 80% to reduce symptoms, it is possible you can get a read out in october from one of those. it is more likely you'll not get a read out until november because the vaccines will probably be around 50% to 60% effective. you could get an early read out

probably some point in november. it is possible you'll have it available this year for select populations under an emergency use and the first availability of this vaccine will be under an eoa. it will be a high-risk group that will get it under an emergency use authorization. >> thank you, dr. gottlieb if it comes early, hopefully we'll be happy about it. >> we are making progress. >> good. that's what we want to hear. we all want progress we do. as quickly as humanly possible on the back end of this commercial break one automaker taking an usual step to help with the back b

log. >> check out shares of urban outfitters shattering expectations of the loss of 40 cents also beating sale-store sales. that was due to the decline analysts had eecd.xpte that stock up almost 17% back with more

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general motors is taking the unusual step to use paid volunteer salaried employees to fill positions of absent plant workers. the company has been struggling to fill orders grievances have been filed honda announced last month, it was using salaried positions to fill vacancies too

half americans work fewer hours to avoid voluntary furloughs. those furloughs are looming. part of the airline relief package expires at the end of september. looking for a catalyst american airlines warning that it will layoff 19,000 workers in october if it doesn't get federal help those stocks have been whip sawed back and forth will be interesting to see whether washington steps up to the plate and how to infus capitol to those companies and whether we'll follow other models in terms of additional warrants and benefitting the taxpayer coming up, the s&p 500 hits

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good morning

welcome back to "squawk box. the dow in the red this morning. nasdaq looking to power higher largely by about three points higher this morning. >> the dow fell on tuesday they did not help to lift the markets. what they should look to share next analysts tripping over themselves with stocked like apple trait price target like tesla, what sort of market is

this as they are playing catch up this is a market supported by strong technicals not only keeping rates low but adding money to the system. as they are pushed out over the risk marketplace a healthy amount of skepticism as well on the walls of worry these have now reached and breached an all-time high we are comfortably above the pressure now and that feels well.

could we get a period of con doll dags coming up we have virus trends and generally speaking we think any period of consolidation lends itself what is it that drives the market that tech sector tends to do well with the virus or is it that reopening on the reopening of the vaccine the low rates have made it clear where we have seen a slight tickup i'm

wondering if there is any catalyst or market that is seen as causing this. >> right one of the things we are looking at is the narrowing in the market that is a forward indicator of what is going to happen in the economy. we saw breath narrow from the 188 recession, most notably in 2008 one of those things now is really narrow breath in the market as they continue to bump liquidity into the system. that is going to provide some

type of backstop where equities are trading. >> we are all looking forward to jerome powell's, kansas fed virtual symposium. delivering on thursday morning part of that inflation talking about targeting and letting the inflation run lotter and longer running in the market. do you think this will be any sort of market catalyst? >> i think the market is starting to price in the new fed regime where they are hoping get back in to the over 2% target for an extended period of time

as inflation creeps higher and important risk assets that are more dollar centric. we are starting to get the new regime being priced in it is partly the fed but also because the economy may be beginning to recover over the next 12 to 18 month period it is a combination of those two driving the marketfactors that we've just discussed >> there is really no valuation. the value of gold right now. we are living in time where portfolio managers and investors can favor growth stock and gold in their portfolios. >> look, i don't think those things are exclusive we'll start to turn to 2021. particularly after the election and we'll start to see where the

growth is. we'll see reversal and see names outside of tech and demonstrate earnings growth than some of our favorite tech names right now. when youlook at 2021, you see sector trading on 50% on the five-year average. you see 100% plus earnings and even offering a yield. we'll start to see a rotation out of some of those more growthy names that perhaps can't support a superior multiple into 2021 because earnings on a relative basis just don't support it >> intellectually, it is easy to make that argument it is harder to make that move and rotation as tech continues to lead.

>> i think the market -- >> sorry i think generally, it is important to keep that barbell if you think secular growth is here to stay as we get to the next 12 to 18 month oz, when you get the opportunities to continue to build the exposure including not only airlines and hotels think clean energy and housing which continues to do well think about areas that can do well in both environments including med tech and mobil payments there are areas that you can broaden into that are not just the value growth it is important to keep diversified as we develop into the next period. >> thank you good to see you. >> coming up, why nordstrom shares are plunging in early trading. we'll hear from kansas city fed

president for the latest out of the jackson hole imposymposium. it is going virtual this year. might be like davos. a reminder, you can watch or listen to us live any time on the cnbc app, if you choose to do so. we'll be right back.

>> showing the dow back on the market emerging and the s&p looks to trade in new high ground from where it is indicated this morning shares of

nordstrom have fallen online business suffered because of a shift in timing of the anniversary sale revenue below expectation kids merchandize, active wear and beauty were the strongest. >> shares of hp enterprise up sharply better than expected issuing earnings and higher than analysts expected. the company's ceo on the street in the 9:00 hour in an interview you don't want to miss coming up, the fight over tiktok we'll talk to an executive over how the fight could impact this company has a huge, huge deal on the line to help

artists. we'll talk about that and so much more after the break. >> announcer: don't forget to subscribe to our podcast you'll get interviews, content and behind-the-scenes content. subscribe to squawk pod today. more and more sensitive, personal data. and it doesn't just drag hr down. it drags the entire business down -- with inefficiency, errors and waste. it's ridiculous. so ridiculous. with paycom, employees enter and manage their own data in a single, easy to use software. visit paycom.com, and schedule your demo today. [mother giving birth] ♪ from the firstloving touch. everything that touches your baby should be this comforting.

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welcome back, tiktok now has 78 more deads before tays beforn to sell. what it means for artists and consumers on that platform steve stout who has produced albums for many stars. the music distribution companies that inked a deal with tiktok for artists to release music on the platform so much going on in the world. steve, good morning.

thank you for joining us tell us about the deal you struck with tiktok and also to the extend that you made that deal in the midst of what clearly is a global, geopolitical battle over the future of this company >> andrew, first of all, thank you for having me on the show. in getting this deal signed, it was a great deal for artists and creators around the world. during this pandemic, a lot of this is their livelihoods. they are small businesses. they make their livelihood starting off of tiktok and then to create different revenue streams. to have this opportunity to partner with tiktok as a partner has been fantastic >> to be clear, effect why i havely effectively, what it means, artists that start on

tiktok, they own their own product. they do it through your company and one touch on the app what does this mean long term for the big record companies >> no, man we we built a record company in your pocket. the legacy record companies have to turn more into different industries tech eats the world. music is one of those things you don't need to go to a record store the any more radio matters less this afternoon. the record companies don't have the hold that they used to have on the artists traditionally and artists are finding their audiences on their own they don't need at that record doe help them find an audience any longer that's where united masters comes in to make it easy for these artists. >> steve, did you have any

concerns making a partnership with tik tok despite its growth and how hot it is in terms of user base. there security and privacy concerns around this company and around its ownership in china. >> listen, i've worked with the ceo, the recently announced ceo. he's a very good friend and a great leader work he has done is phenomenal i trust kevin. he's done nothing but great things i can't get caught up in that side of it the tik tok is a powerhouse. and a global powerhouse. i think the politics around it are much bigger than some of the core points being pointed out with data usage. it's a china and american thing that has to be worked out politically and they are just getting caught in the crossfires of that which is probably why they filed a lawsuit against the government >> melissa, i think you have a

question for steve >> yeah. steve, it won't be a global powerhouse once this, you know, eo takes effect and tik tok is sold to an oracle or microsoft how do you view this deal now, this deal will basically get you across the united states and not the global presence the that you mentioned twice already as being important to you >> well, it's 100 million users in the united states and that's huge. and, you know, we do have a global deal with the company so whether it's sold or not, the fact that it matters, we still work with different divisions if that takes place to distribute the music for these tik tok artists around the world through the formal company at least that's what i'm speculating at this point in time it's very hard, as you can imagine as they go through this transition to figure out what's going to -- what's going to be the -- who will hold the company and how that's going to work

out. what we do know is that from the top of the company, we've gotten the blessing to move forward and that's exactly why we entered the deal if it was an the opportunity where the deal would be broken apart for us we wouldn't have done it. >> steve, i want to touch on a couple of other topic, one being the knicks you're working with james dolan. you know, i grew up watching patrick ewing but since then i've been a depressed knicks fan for a very longtime. you're out trying to help them remake their image i saw you got in a beef with spike lee a couple of weeks ago. what's the state of play with our beloved knicks >> first the nba has done a great job with the bubble, what's happening in orlando. it's fantastic they've been successful getting basketball played this season. and, you know, look, we're marketing, we're doing the

marketing for the knicks i think that there's nothing but great things to come going forward. i'm optimistic i grew up a knicks fan as well i'm a proud partner of that franchise and i think there's nothing but up to go, andrew >> steve, i think the there is only up to go but i'm worried because i don't know if this is a marketing problem or actually a problem about who is manage the team and james dolan who i know is paying you now, but we've had so many years of this. when you took this assignment. how did you consider it? >> i considered working with one of the greatest franchises in the world. i think the knicks and madison square garden -- i'm a marketing guy. you're talking about one of the top five franchises in the world and as a marketer you would not do anything but want that opportunity and that's exactly why i'm involved and that's the opportunity that i want to be a part of.

>> steve, before we let you go, doc rivers had an emotional speech last night about the police shooting of jacob blake you've been very outspoken about everything else. i want to get your take where we are, how pivotal this moment is especially given your ties to corporate merge and how you think corporate america is thinking about this particular issue right now. >> well, you know, since the george floyd murder, i've gotten calls from many ceos and i've given them five bullet points, andrew, that i believe are important. you know, first and foremost invest in african-american strategy you know, you got to immediately specifically, you got to hold your vendors accountable for diversity. you got to empower the chief diversity officer in your company to make sure that they have an opportunity to actually

do their job you got to higher more african-americans in senior roles. i think those on the corporate side what you can do i think outside of that, i think the america -- we're holding a mirror up to ourselves and it's ugly it's terrible. obviously more police training is needed when you start seeing things like we've seen in wisconsin, you know, you want to give it due process but, like, you know, shooting somebody seven times in the back obviously is fear on both sides and that needs to be solved with some level of training and some level of community understanding or this thing will progressively get worse. i think corporations can do a lot and play a huge role in this ship with those five points. i think police trarngs not defunding police but fund police training and create these connection in these communities

so that there's protocol that won't lead to someone getting shot seven times in the back enough is enough >> steve stoute thank you. so great to see you. congratulations on the deal with tik tok. we'll continue to follow your progress >> thank you so much, andrew >> you bet talk to you soon melissa? >> coming up the first word from the annual jackson hole symposium that's going virtual steve liesman will join us next. don't miss an exclusive with sam zell in the 8:00 you'll never know what he'll say. we'll be right back. right now, switch to t-mobile and get four lines of unlimited for just $25 bucks a line. with access to america's largest 5g included. that's right.

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it's totally not the same without you. we're finally back and can't wait until you are too. universal orlando resort. buy now and get two days free at the parks. restrictions apply. investors putting the markets record run on hold at least for now as the s&p and nasdaq try nor gains night two of the virtual republican national convenience. we'll break down what the republican message means for your money and back to school virtually the president of georgetown university joins us to discuss the decision to keep students online instead of on campus. second hour of "squawk box" begins right now.

good morning welcome back to box right here on cnbc. i'm andrew ross sorkin which long with joe kernen and melissa lee in for becky take a look at u.s. equity futures at this hour the dow looks like it will open down just bathe. the nasdaq higher and s&p higher as well. dow jones off about 55 points, nasdaq up 155 points and s&p 500 up about four points all this, by the way, i wonder what it will look like on monday when we get those three switched in and he three switched out of the dow? but sales force being one of them with earnings joe >> sales force, guys, with the pop on earnings fourth biggest weighting on the dow it really interesting reshuffle of the impact of the dow and various components >> yeah.

in the past it's the s&p we really care about mostly anyway now and i've always made fun of those guys, that make the decision on the dow. that's okay. we don't -- it's not that meaningful at this point anyway with the s&p that's why i don't know, melissa. i don't know if the record are on hold. i heard that at the top. s&p and nasdaq are indicated higher that i would take issue with no ilk and i'm not happy about this, we like to path sasquatch sighting behind see abuse he's at a place where you expect one. they are very extra shy. at this year's federal reserve in jackson hole not going to happen, the symposium because it's virtual but there's always news and fed speak to talk about and steve liesman joins us now with more i think, when we were thinking about it, the sasquatch this time, steve, you put up with it

but i think you're like it's not you. you rather just do the fed stuff, right than have a sasquatch running behind you that we put in do you enjoy it or just think it's better to just focus on, you know, the substance? >> reporter: no, joe, i feel bad for the sasquatch, you know who is camera shy. every year you put him on and when we talk afterwards the sasquatch is why does joe keep doing that i tell him i never want to be on camera >> why are they not in two i always wondered that there's never a double sighting. are they totally alone do they have no spouse >> reporter: no. only when they mate, joe and we've never actually been able to capture that on television. >> you better go i can feel the pressure building in my head right now if we don't go go, go >> reporter: you led me down this road, joe and here i am

>> i take responsibility >> reporter: okay. listen, there's no moose but we do begin our coverage of the virtual jackson hole sum mitt the way we always do and that's with an interview with our host kansas city fed president george i began by asking her if she was concerned about the possibility of a double dip recession. >> i think that's an important risk to that outlook is thinking about what happens as we come in to the fall, whether we see any resurgence in the virus that would cause additional pull back in the economy so we'll monitor that carefully to see whether that plays out. what it requires of the fed in term of adjustment to policy i think we have to really wait and see. again, financing conditions are very accommodating we have low rates. we still have capacity in those credit facilities. i think it's too soon to try to speculate on what else might be needed other than to say the

federal reserve is going to be very vigilante on that and be prepared to respond if it would have to. >> reporter: what's your outlook for the remainder of this year and next year. >> after we saw the sharp drop off in the second quarter that we would be looking for third and fourth quarter to begin this process of beginning to build growth and we hear that from our contacts and so my baseline is we will continue to see the economy improve. of course, the big caveat around that is the risk of the health issue that we're dealing with globally and so whatever the path is of the health issue i think will really determine whether that forecast plays out in the way that i hope it will >> there's been a lot of talk about the fed averaging to inflation, let it run hot for some time. what's your view on that >> i'm not an advocate of letting inflation run hot because i'm not sure what people

mean by that i think we're down to achieve price stability. that is part of our mandate. of course, judging where we are around inflation is really core to the deliberations that the committee has. >> the virtual summit will still feature the fed chairman but because it's virtual one upside is we'll be able to carry it live that's tomorrow at 9:00 a.m. and we'll have as we always do a full lineup of interviews with top fed officials, the there's a fed, the president at 1:00 tomorrow and then also tomorrow morning, fill lynn lane on the executive board of the european central bank, former governor of the bank of ireland and then jim bullard as well, lohr rretta mer in the morning as well as on friday morning andrew >> okay.

joe? >> these are extraordinary times so it should be, you know, there's going to be even more -- there's always stuff i don't know why especially for people into it like us, steve. but now this is, you know, this is just so unprecedented -- we have sam zell. this is like the financial crisis and 9/11 like all rolled into one and the after effects are even more -- are even deeper and probably more dislocation. it's unbelievable. i don't know the fed likes to be -- people that work on the fed feel they are doing god's work they have a chance to do it this time around, right >> yeah. i think there's two big issues the first one is how do you run a financial system at zero or negative interest rates in virtually every developed country in the world

nobody has really been the there before, at least the u.s. had really positive interest rates for a while, and even europe did. now europe is way negative the u.s. and i think this issue that powell will be talk about, we think on thursday, which is, you know, changing the monetary policy framework to really let inflation run hot to make up for inflation that wasn't at 2% and averaging inflation over the time that's good for the market but what market has already built and the. but what we'll have here is a situation where you can sort of go to bed at times, maybe for a year or two and wake up and say you know what? even if we go above 2% inflation the fed is not raising rates >> i mean basically it's a green light for the continuation of the asset bubble that's calling the stock market right now,

steve. the fed reaffirming that stance is further justification for investors to say you know what interest rates where they are justify us bidding up shares of the tesla, apple, et cetera. >> you asked me that question yesterday and i gave you and answer and i thought a lot about it afterward the bidding was steve what about the asset bubble and the fed being at zero. i said the fed doesn't want to address asset bubbles through its monetary policy. it wants to provide what it thinks to be the right interest rate for the broader economy and deal with asset bubbles through bank supervision melissa what i thought about at some point the fed will have to think more about how its monetary policy is affecting the stock market and create asset bubbles that could pop i don't think it can keep going to the way it's been going with -- there's just no other place to put your money especially now, by the way, with

a different situation. the fed is back stopping corporate securities so what's happened is even that area where people can make some yield has come down very, very low rates at least for the top investment grade companies i agree with you, melissa, in your question you imply it should be a bigger part of the consideration for monetary policy >> we're in the midst of these conventions and very well may be president trump wins and may very well be biden wins. one of the questions i have for you is whether you thought if the trump administration were to win whether you think that powell would get reappointed you know he was hated for so very long by the president and then i think maybe now loved or at least liked i want to understand the dynamics of that and also what your thoughts were if there was a biden win what would happen to that role?

>> reporter: you know those are good questions i don't have smart answers for them a lot depends on the situation at the time. look, i of the ten said th-- ofh fed is out there to blame for the executive office and congress it's a convenient scapegoat for a lot of things going on and indeed sometimes at fault. so at the time there's some reason to blame or replace the fed chairman or chair then either president or challenger, the vice president would do that but if things are going well at the time, if there's some form of normalcy returning to the economy and there's a steady as she goes requirement, then i think powell would stay. he's done well in terms of congress but not necessarily in term of the president.

>> okay. steve, thank you so very much. we'll talk to you very, very soon meantime when we come back guess what, guys there's another spac company and it's going public. backed by some very well-known investors including "squawk" regulars the ceo of desk top metal will join us after the back with a $2.5 billion transaction also flag a stock upgrade. who is boosting their price target on tesla. street high of $2,500 a share. $500 post stocks tesla competitive edge in cars will shrink it expands in other areas including brand leverage that's an interesting one. software i get that and battery capacity tesla shares on the rise up 1.5%

we'll talk to at analyst later on "squawk b".ox we'll be right back after this break. r investments or pull back? 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. giving you more control. clarity. and confidence. for now and whatever's next northern trust wealth management.

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expect anything different? the big events are back and xfinity is your home for the return of live sports. welcome back to box. another day another spac, another company going public through spac blank check company and this one has some very well known names behind it. the doe desk top metal provider

of 3-d printing technology will be merging with try jimmy johtr. the pipe known to many people on our show right here, also bill miller, ron baron and former tesla cto as well. the deal expected to close in the fourth quarter with desk top metal expected to have an equity value of $2.5 billion. i don't remember when we've had rick phillip on many years ago when they were considered a startup. great to see when companies succeed like this. rick phillip, ceo of desk top metal. thanks for joining us. congratulations on the deal. this is not how i think it was

supposed to go, rick i remember when we the talked many years ago i think you wanted -- everybody wants to have an ipo but a traditional ipo where you go to a new york stock exchange or the nasdaq and you do the whole thing and you sell stock to public investors that way why did you decide to do it this way? >> that would have been our traditional plan but this is a little bit more efficient and the pandemic changes the way that you do things and we're really happy with the outcome. it's fantastic and we found fantastic partners in the crew >> how much does this whole spac phenomenon accelerate your plans? meaning if spacs didn't exist the way they do today do you think you would have gone public now, do you think this would have happened two years from now? >> i mean, there's a bit of acceleration, for sure, but it's -- you know, our business is actually accelerating

we have distribution in 60 countries and we're growing, so it's definitely a great opportunity for the company. we have a fantastic opportunity ahead with the market that's going from $12 billion last year to 150 by the end of the decade. so it's daefl growing -- >> rick, one of the big questions that investors have typically on a morning like this given that you haven't had a road show, if you will, or traditional road show to talk about the company, obviously, you do 3-d printing, industrial 3-d printing, who would you compare yourself to? people will sit around and try to do the comps on this company. what are the other public comps and what should the valuation be and what kind of multiple should we ascribe to the numbers? >> that's an excellent question. we got technology that's completely different than what's in the market. he we have the world's fastest

printing system. we make parts at a fractionally the cost it's difficult to find a comp from older first generation technologies this is a 2.0 start. but there's lots of comps in our space. in my previous life we had investors before they were public a variety of whether industrial businesses and folks that sell products that have a high market revenue stream like our products have >> how far away are we from 3-d printing or manufacturing at scale because that's a holy grail and with a backer i would imagine this is something a lot of companies especially a company like tesla, for instance, would be looking forward to >> well, we have lots customers. tesla is not a customer yet. we got a broad customer base,

includes oems and a fantastic business that we're building this is actually the first time that you've got a technology for metal printing that let's you do it at scale. and, you know, in the through puts where you can make parts cheaper than casting, cheaper than machining and there's hundreds of kilograms of parts like that in automobiles, electronics, in aerospace. so pretty much all the new hardware technologies will have additive parts in them in the next decade and that's a huge exciting part of what our story is about it will grow in magnitude this coming decade and it's been compounding for a decade at 20%, you know

so that's an exciting part and we project compound for the next decade at 25% year definitely a fantastic space to be in. >> rick, you've been a pioneer in this 2.0 version. who do you look over your shoulder and say they are right behind me now that are trying to either replicate what you're doing or even take it to the next place >> i mean there's some very good companies on the polymer side and, you know, we're the leader in this additive 2.0 space in metal. we'll grow the number of materials we have today and we're excited about that i think that today -- you know this is very much a long arc we have $12 million worth of products made every year and a small fraction of that is through additive the you look at the benefits of additive, two decades from now it will be a much larger percentage and today we're prirnting parts and the future we'll be printing products

that's what i'm excited about. >> rick, final question about the spac craze because everybody is focused on what it means. historically spacs have had a bad name because so much of the fees went to the sponsor i know it creates, you know, you can do this very quickly and that's a huge benefit. you can raise some cash very quickly. but how did you think about those various tradeoffs in this, in this situation? >> i think it's a structure that's evolved we're very happy with the work that john did for us and we were able to craft a deal that was very competitive the spac structure has he evolved in the past decade dramatically, it creates a strong backstop as well as the ability to really have much

higher quality sponsors is one of the biggest differences leo will be joining our board and he's super experienced exec and among the top ceos, basically a legend in what he did in consolidating the cable industry and you didn't have sponsors like that a decade ago other two decades ago so the quality of the people that are involved as spac sponsors is dramatically improved that's actually a huge differentiator between the old structure and new structure. a lot of terms changed where you don't have holdovers that created problems than type of process. but we had an excellent post this came past weekend on going spac and the new york stock exchange is working on a direct listing process that would allow you to raise primary capital as

well it's an evolving market for sure lots of innovation >> ric, we appreciate you joining us on this very newsy morning, newsy for you and we appreciate it and wish you a lot of luck. it's a doe watch we've been watching you for quite some time. >> thank you it's a privilege >> good luck and we'll talk to you soon >> you bet >> coming up, breaking news on thoughts front mortgage applications are just out. we'll get the numbers after the break. second night of the republican national convention. it's in the books. speakers focused on the economy, foreign policy and social issues we'll break down the message from the gop in just a bit >> announcer: time now for today's aflac trivia question. what company did apple pass to become the world's most valuable publicly traded company? the answer wn hecnbc "squawk box" continues

not covered by my health insurance. and this is the aflac duck who helped me cover it. aflac. these are all the cab rides to my physical therapy. and aflac paid me directly to help. aflac. what he said. and this unexpected bill is from... the two-thousand-dollar specialist. thanks. aflac. when you're sick or injured, aflac is there. we can help with expenses health insurance doesn't cover. get to know us at (aflac!) dot com.

>> announcer: now the answer to today's aflac trivia question. what company did apple pass to become the world's most valuable publicly traded company? the answer: saudi aramco >> welcome back. check out shares of toll brothers signed contracts for luxury homes raised the company said that strength is persisting in the month of august conference call gets under way at 11:00 a.m. this morning joe? >> weekly mortgage application data released moments ago. diana oleck has the details.

>> reporter: august is the new april for home buying. mortgage applications to buy a home rose just under 1% last week but a remarkable 33% higher than the same week one year ago according to the mortgage bankers seasonally adjusted market more consumers rushed to either buy homes for the first time or upgrade what they already have low mortgage rates are only adding fuel to fire. average on the 30 year fixed dropped to 3.11% with loans with 20% down applications to refinance not so popular down 10% for week but up 34% from a year ago. refi market has been choppy. par sh partially due to an announcement by fannie mae and freddie mac

that they were raising fees. late yesterday amid heavy industry pressure the fhfa announced they would push the start date back to december 1st. joe? >> so, it seems like we're moving into a more seasonally slow season. so you said april is the new norm august is the new april. september is not going to be the new may, is it >> reporter: there's nothing seasonal about this year at all, joe. no way i'm seeing so much demand right now continuing the home builders are seeing incredible demand coming through we saw record new home sales we're seeing builder sentiment at a record high this could continue into september and october. i don't site falling off the way we usually do. there's no way to say that this year has any seasonable factors like normal times. >> i can't help looking behind you and thinking i'll see

somebody lurking behind you. like a shot from halloween coming out jamie lee would be there and you go back. so just be aware look around. if we could cue that music that would being a great. do that. put your photo on backwards. check the rear view mirror there's no one back there. you're good. melissa, right, cube sould be a sasquatch. >> lurking behind the tree >> still to come on "squawk box" how voters are feeling about president trump and the economy. the latest research data showing a bump in the polls in numbers we'll have that for you right after this break then georgetown university heads back to class today but it's going all virtual. we'll hear from the president of the university about that decision as it gets ready to re-open. be sure to stake round

sam zell, chairman of equity group investments llwi be our guest in the 8:00 hour box will be right back some companies still have hr stuck between employees and their data. entering data. changing data. more and more sensitive, personal data. and it doesn't just drag hr down. it drags the entire business down -- with inefficiency, errors and waste. it's ridiculous. so ridiculous. with paycom, employees enter and manage their own data in a single, easy to use software. visit paycom.com, and schedule your demo today.

welcome back to "squawk box" di dicks sporting goods reporting results. bertha coombs has the lights >> reporter: it is a blow-out quarter for dicks. you can see i'm in central park, everyone is out cycling, people want to be outdoors right now. the company reporting adjusted earnings of $3.21 a share. that is a record and that compares to the estimate of $1.30. revenues also at a record level,

$2.7 billion compared to an estimate of $2.5 baseline. same store saerms les were up 2. that comes after a drop off of 21.5% in the first quarter ecommerce sales, up 194% making up 30% of the totally revenue base ceo says participation in socially distanced outdoor activities has creased the majority of our asoertment sits squarely at the center of these trends and while mindful of the uncertainty in the current environment we are in a grate lane the company has seen softness in back to school not seeing as much of kids coming back getting soccer gear, getting ready for football and things like that nonetheless they are confident, they say they might actually resume their buy backs

back over to you >> i'm just fascinated shuffleboard -- shuffleboard up 225% so that's, you know, i bought a jump rope but not a shuffleboard >> reporter: that's. this is an old one this is an old one but people are looking -- very old jump rope because things are hard to find right now if you take a look at, for example the outdoor gear, our friend steve liesman may not be fishing right now at jackson hole where he normally would be but a lot of folks are fishing reels are the biggest outdoor gear that seen sales increases at the first half of the year cycling up 122%. if you tried to buy a bike, anything under $1,000 it's pretty tough so they may actually not be able to meet demand although a lot of retailers say they are back in stock with bikes walmart had talked about that

being a highlight as well. >> so, we got to go. one thing i keep wondering about with all of these stocks is how sustainable this system are these one time purchase that have been effectively pulled forward and never happen again or once you bought the bike or jump rope or, you know, got in this outdoor sports bug that you're going keep dhoing for the rest of your life and have to keep upgrading and buying more stuff in the future. this is not just an issue for dicks sporting goods but a thing for home depot >> one of the things is as long as this goes on a lot of people quite aren't ready to go back to gyms winter is coming not to be trite. but we talked to l.l. bean and they said their winter gear sales in july are up 43% from normal so certainly a lot of folks are already thinking about that and thinking about what they are going buy next

as far as your bike i don't know if you've been by a bike shop those are the longest lines i've seen besides grocery lines because everybody is trying to get their bikes repaired >> i've been trying to buy a bicycle for about four months now unsuccessfully anyway thank you, bertha. appreciate it. meantime want to talk about what's going on d.c. battle ground states serious concerns about covid-19 on the decline as president trump's approval rate is moving higher eamon javers is standing by with the latest results from cnbc states of play survey. great to see you this morning. >> reporter: we're seeing that bump here for president trump and it has to do with the fact that people feel better about the economy, little bit better about the virus, all that improvement translating in to good news for the president. take a look at the president's approval rating. he's up at 48% that blue line just below is approval of trump's covid response

white line is trump's overall job performance. blue line trending up more sharply than the white line. that means the covid response improvement is driving that spike in his overall job approval president not back where he but rebounding a little bit. look at the serious concerns about covid. they are lessening, 66 puerto rico of the respondents in these battleground states said they had serious concerns compared to 87% back in april. that's good news for the president as that panic feeling starts to lessen and people learn to figure how to live with this overall still in terms of who would have a better job of handling the coronavirus the edge does go joe biden, the democrats 51% to 49% for donald trump and the republicans. and in this poll, andrew, we also see that joe biden has an edge in every one of those swing states that we're looking at we're looking at six different swing states

we're looking at likely voters, people we think will show up or participate in voting. biden has an edge but it's a narrow one and the president is getting a boost over the past week or so back to you. >> thank you you got to be up, right? you had to watch >> i'm operating on not very much sleep. >> up >> are you can do it it's only a week >> we did last week. we're doing this week. >> right could be worse you could be watching nba or something. i'm a little tired too from that >> could be worse. we could have three political parties. >> that's right. we could here with more on last night's convention, let's bring in jim demint and donna edwards who served five terms as usa congressman from maryland's 5th district, first african-american woman to represent maryland. she's now a political analyst.

thanks for joining us. congressman, let me start with you. it's not necessarily like a rorschach but i have heard republicans criticize last week's convention saying it was dark, it was foreboding, and they said that then now i'm hearing it on the other side is that an effective tool just for both parties to call the other's convention sort of a dark pessimistic view of the future, of the country >> well, i think that you only have to listen to the republican convention to know that. you know, look, i think that really what was at play here over the last couple of days is just kind of a dip into unreality. it was the unreality convention. until you got to the first lady there was no even acknowledgement of nearly 180,000 people who died of covid, let alone any discussion

of what a plan is both to get us out of this and to recover this economy, those things are intertwined. so i think that people's reality sitting at home really tells the story of the republican convention >> jim demint, congressman, who has got more optimistic view of the. you're representing obviously the gop. you hear a little different picture of what you're seeing than what congressman edwards is seeing >> i feel like i'm watching a different convention than congressman edwards. the last couple of days have just been optimistic and patriotic. we've had a mix of americans from all walks of life especially the great speeches from african-americans, attorney general from kentucky last night, senator tim scott it's just been inspiring for me

and, of course, the first lady, i thought, did a wonderful job and a great setting last night i'm certainly hearing the ideas that i want to hear as far as continuing to grow the economy and move it forward. we know what the president's plan is for coronavirus. he's had regular news conferences on that. we think we'll have a vaccine or at least a very positive treatment very shortly so like you said going in the show the sense of normalcy is returning and that's a good signal for president trump and republicans this fall. >> congressman edwards, do you have a playbook for vice president biden at this is not he's done well just the staying out of the limelight to some extent in terms of quarantining. do you think he need to get out at this point between now and the election or do you rest on

the he lead and not mess that up >> no, i mean i never believe in preventative defense it's important for the information vice president to connect with voters in a way that is safe i mean he has said and built a campaign on following the science and if is science says that it's okay to get out and to go around the country he will. if the science dictates that we should not be having large gatherings, and that nature, he will not but he'll conduct a campaign that's forward looking i mean i fully expect that both he and his running mate kamala harris are going connecting with voters in smaller groups in forums where they are hearin from experts about things from climate change to moving the economy forward to investing in infrastructure, and to, for a

plan for the pandemic. we've actually heard that from the information vice president ream since the beginning stages of this pandemic and i would argue that, in fact, had we had a real plan coming from this administration we would not have 180,000 americans dead and probably approaching 200,000 by the time we get to november 3rd. so, just because you say that you have a plan and just because you put faces of african-americans or latinos and showing diversity, the policies that have been reflected by the trump administration simply have not played that out in reality for people's lives and i think that joe biden is going get out there and tell the truth to the american people and present plan going forward. >> so congressman demint, i guess it's possible that the republicans can push back and say we made difficult choice and no deaths are acceptable but

what economy is important too. tough to make that argument when you talk about human life. but can they make that argument? we've had these job numbers three straight months that have been pretty good gdp number might look pretty good will that resonate that the deaths are -- i think president trump said what it is what is it obviously he got a lot of criticism for that but has always been a very delicate balance between trying to keep the economy from being absolutely decimated, and human life and the cost of human life. can they walk that fine line >> i think the president can easily walk that fine line using science as well as economics all the data shows if we're really going use the science that deaths primarily have come with folks over 80 going back to work, back to school, we have not seen that cause additional deaths. when there's a report of spikes that's hardly ever associated

with an increase in the death rate the thing is that we do have science now and children are not at risk. you got folks healy, working age americans are not at risk. we can go back to work here without endangering people and we need to take care of those at risk we're learning to do that all across the country older folks who are at risk know they need to be much more careful than others. but we got the formula and as we go back to work, as jobs come back, death rates decline, treatments improving and people are going to lose that sense of fearer and as they feel more a sense of normalcy -- yes >> just to follow up on this, i know you think we're getting to a sense of normalcy, 1,000 death as day even though it's lower than i want used to be i think is very hard for most americans to think of being normal and to the extent you want to follow

the science, i think empirically, no matter what your politics are, the president disregarded the science for so very many months when it came to testing. he explicitly said he wanted less testing not more. he told people masks were not necessary. irrespective of whether fauci or others early on didn't think masks were necessary when they did he said the opposite why do you think that the american public when it comes to science piece of this, or this idea of normalcy are going to look at this and say servicing great? i don't understand that. i'm trying to do -- i don't know if i can say it apolitically, empirically. >> well, again, i don't know what information you're going from i think you're watching too much of the news reported falsely the president responded much quicker than governors did blocking travel from china he implemented a national effort

to get more masks and ventilators. if you go down the list he accomplished more in a short time -- >> senator, you still cannot get an n-95 -- most courtrooms cannot find an n-95 mask if you want to buy an n-95 mask today it will cost you something on the order of $10 to $12 a maverick if you can even get access to one and there are hospitals and medical people who need them around the country who still can't get masks and we're five months into this pandemic >> well the medical professionals we're hearing from all around the country are thanking trump for his response. we heard that from nurse and others during the convention so i guess we'll have a different opinion on this. and the people that make that decision in november but you can't blame the president for the virus and, again, i think the medical information has been slowly getting to us and the media has done a very poor job of reporting who is mostly at risk

and now the question going back to school is just obviously ignoring science we need to get our country back to normal and except for folks who are older, the coronavirus certainly it has taken some lives but generally with co-morbidity that we know about so a healthy working age americans are at very little risk it's terrible to lose anyone from any disease, but i think americans are starting to see the truth and that's why the fear is subsiding. they know they can go outside and go back to work and with very little risk to themselves >> all right very good, senator demint, thank you. we appreciate your time. and congressman edwards thank you very much. we appreciate it melissa >> coming up shares of tesla are topping pre-market 1.5% after jeffries upped its price market. we'll speak to an analyst after this break and take a look at

futures as we they'd a wednesday open looks like green arrows for the s&p 500 and nasdaq dow will lose 53 at the open we'll be right back. when we started carvana, they told us

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see for yourself, at carvana.com. coming up new price target high on street for tesla the analyst making the call teins us after the break lar sam zell will join us. we'll be right back. 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.

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on select new and certified pre-owned models. you say that customers make thelet's talk data. only xfinity mobile lets you switch up your wireless data whenever. i accept! 5g, everybody's talking about it. how do i get it? everyone gets 5g with our new data options at no extra cost. that's good. next item: corner offices for everyone. just have to make more corners in this building. chad. your wireless. your rules. only with xfinity mobile. now that's simple, easy, awesome. 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. there were tsunamis fourtin the world. and once they happened, we were in a major hurry to get to those regions to provide aid and support. it was very humbling to be able to help out all those people. it's my dream now to go into clean energy and whatever the next new fuel source is, that's where i want to be. i want to be on the front lines of implementation.

jeffries boosting its price target on the tesla to $2,500 a share. $500 post-stock split. joining us is the analyst making that call, phillipe houchois the stock has had an incredible run. how much of this adjustment to the price target is mechanical in that your price target prior to this adjustment was 2,500 in your buy rating and how much is an actual fundamental change in the story since earnings >> well, good morning. it's fair to say it's difficult to keep up the magnitude with the harp rise. keep in mind in past 12 months you had a pretty consistent upgrade.

expectation has doubled in the past 12 months revenue and profit of cash is up 50% and the general reduction cost risk around tesla which is the fact that tesla has done much better than expected through the course of 2019 but also through the pandemic and that all those things together will don't support the valuation. of course we have to see what the company says on the 22nd of september. but i think there is continued improvement in terms of the outlook for growth and profitability. >> musk has tweeted about that expectation, that he expects 50% more energy density in the next three to four years. is this a precurer, a hint to come is this what you're expecting? >> we'll get some new benchmarks

for density, for cars and capacity which are all very critical what we're looking for as well is more what will happen in terms of markets like stationary storage and what it could mean for the global auto industry if battery longevity increases and we get to that point i think -- i don't expect elon musk will frame that clearly but the industry should think about what the impact could be of that battery longevity on the business model on the industry >> phillipe, great to have you >> a lot more "squawk box" ahead. this morning's "market movers" get you up to speed. later our exclusive interview with sam zell for his take on e state of the economy

"squawk" returns with a big hour ahead.

good morning stock futures mixed ahead of the opening bell but we're still on a record high watch. s&p just scored it's 17th record close of the year. the nasdaq, 38 record closings this all coming ahead of tomorrow's hotly anticipated speech from the fed chair jay powell remarks we'll be watching closely. hurricane laura gaining in strength now expected to become a catastrophic category 4 storm as it makes its way towards texas and louisiana. hundreds of thousands have been told the flee. with less than ten weeks until election day tissues most critical for investors are coming in to focus we'll speak with a man who never

minces words, sam zell on the candidates, real estate market and the future of the american big city the final hour of "squawk box" begins right now. good morning welcome back to "squawk box" here on cnbc i'm joe kernen along with andrew ross sorkin and melissa lee. becky is off today and we're looking at some possible records once again for the nasdaq and the s&p, although the dow has indicated lower. more new highs when the opening bell rings or possible. or likely on the nasdaq. maybe not so much on the s&p and s&p is now nearly 20% up over the past year after coming

back from the big selloff in the pandemic i guess it looks like a check mark we were asking not really a v but kind of looks like a check mark if the right side of the check mark goes up above where it started, the selloff. have you thufought of a nike swoosh i don't know a check mark describes that. >> a check mark with a 30 degree angle instead of 45. >> i don't think it's a 45 yeah >> 30 degree >> a normal check mark -- >> 45, no >>no >> no. >> s&p 50% gainin the past 12 months all in your mind not real melissa. >> let's also get the price of oil. this is what we're watching.

not too much of a move 2% moved higher for wti. we're down by half a percent now. hit its highest level partly on gulf of mexico output as laura is expected to become a catastrophic category 4 hurricane as it churns its way towards texas and louisiana. forecasters say it has grown in power by 70% in the past 24 hours. more than half a million residents on the gulf coast have been told evacuate the national weather service saying parts of the area could be uninhabitable and without power for weeks to months. >> yesterday the s&p notched it's 17th record close of the year and the index is more than 50% above its 52 week low hit back in late march whenever we hear about the market rally in the last few months the conversation turns to the performance of a few big name tech stocks let's talk markets now and

whether the recent rally is really broad now be called durable. i don't need names for it. i just need look at the charts mike santoli joins us. someone famously said it is what is it and it's at all time highs. >> right without a doubt the basic picture of the market is of everything going in the right direction even if not everything is moving to the same degree in terms of magnitude and gains here's what people seem to mean when they criticize this market as being unbalance or insufficient broad this is the mega gap growth. that's tleerd. year-to-date chart well off new high territory. here i that have equal weighted industrials and equal weighted consumer discretion. not just dominated fwlarger stocks equal weighted indexes they are moving in the right direction since the low but not surpassed their highs by much at least since june 8th

most of their come back came from the marlow up into june i want to emphasize going in the right direction. not as if it's a few stocks up and everything else falling apart. doesn't necessarily mean it's a fragile market also wanted to take a look at the total stock market u.s. total stock market index since the vti. it's at a new high the entire market is at a new high in aggregate. not quite as dominated by those five or six top stocks and this is all stock markets outside the u.s. also, again, moving in the right direction. so i don't think it's ov oversimplifing things even if not everything is going up in the same degree. we've shown a knack for rotating away from danger when big stocks pull back and that's why the broad index is up. >> the combination of, you know,

breadth that's not great and bullish sentiment and complacency, and just sort of there has been a bit of a sea change in how people feel about this market. a month or two ago i remember back in may, i mean i couldn't buy anyone to believe that the market might hit higher i made bets about it it's may, june, july, august, up almost every month since then. so now people are more bullish that's got to be an issue along with the breadth that's why mike wilson thinks we'll have a near term correction yeah >> that's exactly the type of things you want to look towards. not too scientific to say now officially everybody is overconfident about the market there's greater acceptance in this rally you're seeing speck at the ulat

the market we're potentially stretched and would likely invite at some point some kind of settling down, a slowing down, sideways move or a correction at some point in the next few months very difficult to pinpoint that moment >> thanks, mike. mike, stick around our next guest says market breadth is fine. joining us now is jim paulson. jim, it's great to see you you've been bullish but i'm curious what you think we'll hear tomorrow from powell and how that could impact things one way or the other >> yeah. i think powell is going to tell us that more or less that the fed is going to work to raise inflation. and not be so concerned about inflation going up i personally think after years of worried about global

stagnation and disinflation, deflati deflation, negative yields, lack of such ingrowth i think the market will act pretty favorably to that idea of maybe finally rather than be captive to some specific rule about 2% or something, to let this thing rip and let's see what we can go the economy a little bit i think it's more of a positive outcome. now i think there's risk involved in that too, andrew, down the road if anyone who lived through the 1970s can see what that might be but i think in the short run ate positive speech is how it will be taken >> jim, in terms of the way you're setting up a portfolio right now, there's been a lot of conversation about whether you should stay, stay mostly concentrated in the big tech names which obviously has been a successful approach thus far and when and if you should rotate out for at least add money into

southeast more unloved cyclical names ahead of what might be the expectation, of course, is that we get a vaccine whether it comes soon other or later who knows and how effective that vaccine will be is the open question but when would you recommend people make that move if you're recommending it at all? >> i think you already should be shifted to some extent look off the loss for march 23rd, a lot of the cyclical sectors, a lot of small cap stocks, the equal weighted s&p, the value line arithmetic weighted and even international markets have done better and some i have listed outperformed the s&p 500 overall on a cap weighted basis i think a rotation has already taken place. it's not dramatic or robust bust it's already starting and get morrow bust in the coming year one of the things we've done

here -- >> would you jump into travel names, for example, though >> i don't know if you have to go that deep i would be okay with that. but, look, you can buy, rather than going all the the way to the kind of the epicenter of the pandemic swing here, you can just buy some general industrials, some financials, maybe some well financed energy overall and still have and go small cap in general, for example, and still have a pretty big bet on a leadership shift but not necessarily have to bet everything on just covid shifting i think the better bet here is to bet on economic growth doing better we're in a quarter right now maybe 25% real gdp growth. the expectations by wall street right now over the next year is for the pace of real gdp growth the annual pace to improve by 18

percentage points year-on-year from what it is right now and i think if it does that it's going create a leadership shift. whether the airlines are back full or not it's going to create a shift towards small caps and international over the next year >> jim, you've never attributed to vaccine hopes some have been saying that all along. oh, vaccine hopes which could be dashed in a second if it didn't work but you've always -- you've never attributed this 50% move to vaccine hopes >> well, joe, people say wall street is disconnected here. hard to see that me. look at the bounce we're having in the economy we have a record-setting economic surprise index both here and the united states and globally we've had retail sales go from off the chart in the crash to now record highs again we've had the ism go back above

50 we have housing on fire. we have a big improvement in unemployment rate and unemployment claims. i would the size of that economic bounce is very reflective by what the stock market has done. this is more about following the bounce on main street than it is about the vaccine news >> thanks. okay gentlemen, we're going leave the conversation there jim and make, i want to thank you both for the discussion. melissa? >> thank you >> coming up an exclusive interview with billionaire investor sam zell. we'll get under way the most important issues impacting your money not the least of which is the 2020 election. check out dicks sporting goods they are higher this morning after the retailer beat estimates by a wide margin also saw ecommerce sales nearly triple during the cosend quarter. stay tuned you're watching "squawk box" on cnbc or face to face, we're here to help- utilizing our resources

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we need internet essentials. there's no excuse to not get connected. georgetown university fall semester starts today virtually. they were one of many colleges to reverse their plans in late july joining us now, john dejoy, president of georgetown university great to see you thanks for joining us. >> an honor to be here thank you. >> how difficult was this decision and how do you think about sort of the longer term impact on the georgetown community particularly when you don't have first year students having the benefit of that sort of culture on campus >> it's one of the great questions that we're engaged in right now. our decision to place over the course of roughly two months, we began our prep participations

back in april for this fall but back in june we made a decision that we would be able to re-open, we would need to do so monitoring carefully our public health conditions here in this region, and we made a decision the at that point that we would try to bring back a good part of our community, our graduate students, our law students, our medical sturngts our research community and hold off the decision on undergraduates just trying to determine what would be the right framework for bringing back undergraduates we have a very he dense, very rich residential experience, nearly 90% of our undergraduates live right here on the georgetown campus. at the end of june early july we informed our undergraduates that we're going bring back the first year students, we're going bring to campus our first year students and hold off and see how that would go before we make

a the decision to bring back any more but as you were just describing the accelerating pace of this threat of the virus through july made those plans impossible. at the end of july we were looking at uncontrolled spread in nearly 30 states. and restrictions on interstate travel as we looked at that, the stiff washington made a decision that anyone coming from any of 27 states would be required to be quarantined for 14 days and we estimated nearly half of the students we were bringing to campus would have to be quarantined for those first two weeks. we looked at just the conditions we were wrestling with and how it was unfolding we made a decision that we would go fully virtual at the start of this year >> all right i mean logistically for a lot of urban centric universities it's difficult to find space to quarantine students before they get on campus officially let alone if there's any sort of an outbreak

you know, it's interesting because the semester is starting as sort of a high school seniors are considering where to apply to for college for next year and i'm wondering what you expect in terms of the admission process a lot of students who decided to matriculate to universities for their first year made a decision to go before schools reversed on not bringing them back to campus do you expect any sort of drop offs in applications particularly when you think about spending $56,000 a year on tuition, it's hard to say $56,000 a year for online learning >> as you may know we did make a decision when we went fully virtual for undergraduates to reduce our tuition we provide such an engaged residential experience, we felt such an infrastructure to support that we know that infrastructure is not going to be used this fall so we made some adjustments to the cost of education for this

fall we haven't seen any real change. we've had a few more, i'd say, you know, a larger number of students requested a leave of absence after we made a decision to go fully virtual but the numbers weren't significant. we aren't expecting much change in term of the interest in students applying to the university but we're in a very new moment and we're all learninger and we'll see just what unfolds as we move into this new academic year >> no sports at georgetown when your expecting with other universities, you are on the board, i believe of the ncaa >> yes yes. well, this fall our conference -- we participate in two conferences. the big east for almost all of our sport we play football in the patriot league in mid-august, both conferences announced that we would be

postponing fall sports and we would be moving them to the spring in the hope that we would be able to have fall sports this spring unusual but nervertheless we're hopeful. we don't have intercollegiate competition take place this fall i think you would see that across much of higher education. the ncaa recommendations regarding health care have made it very clear what kind of conditions would ideally be in place for us to be able to engaging intercollegiate athletics and then the guidance from the board in august was the ncaa whose fundamental responsibility in the fall is to host the championships, if less than half of those who would be eligible to participate in ncaa championships in fall were not participating in their conference activities then the ncaa would not have fall championships and, in fact, more than half of our conferences across the nation are not

competing this fall so there will not be ncaa championship in all sports this fall >> sure. jack, great to see you thanks for you time. >> great to be with you. thank you. coming up, is the exodus out of america's biggest cities a permanent one. that's a question we'll be asking when we talk to real estate investor sam zell, someone who is nerve holding back but next new frarks kansas city fed president george stay tune. you're watching "squawk" on cnbc.stay tune you're watching "squawk" on cnbc

less -- steve liesman

brought us some comments on esther george. now he's back with more from that interview >> reporter: the virtual jackson hole summit begins tomorrow kicking off with a speech by jay powell in the second part of this interview with the virtual host kansas city fed president esther george i began asking her if she believes the fed promised to stay too low for too long. >> i think even at the point that we resolve the health issue that is affecting the economy today, what we can't get to know until the dust settles is what has been the impact to the economy longer term. what will be the rate of growth. what will be the confidence that comes back from households and businesses so i think there's a lot yet for us to learn in terms of how we think about calibrating policy in the months ahead and that, of course, will be where we focus at each of our meetings.

>> reporter: the kansas city fed is a very diverse district it has agriculture, tech, aerospace and energy tell us how those industries are faring during this epidemic. >> i think you see the impacts nationwide playing out here in our region in aerospace we know that because the demand for travel has plummeted, that sector is going adversely affected in the ag sector which is so important to this region, of course, farm incomes have been under stress for a number of years. coming in to this, we will continue to see, i think, that stress continue and extend probably to areas like the livestock sector as we look at that so the supports that farmers have relied on have been important. land values have held up for them pretty well during this period to try to be an wroffset the last thing energy sector

also important to this region. again, when you have the drop in travel and demand that we saw oil prices drop, we've seen the production fall off in our region and so stresses will continue there, i think for some time >> reporter: shifting gears, judy shelton is a controversial nominee of president trump to the federal reserve board of governors. are you concerned about her nomination >> i understand when a president makes a nomination senate banking committee has an important role in vetting them so i leave that to them and stay focused on what my job is which is about the economy and the appropriate policy that goes with that. >> reporter: we have a full slaft interviews as if it was a real conference not a virtual one. phillip lane will join us tomorrow morning on "squawk box" former governor bank of ireland. robert cap laland

in the afternoon james bullard melissa? all right. coming up, breaking economic data july durable goods numbers are out. in minutes we'll have them and stt rkinanmaet reaction when "squawk box" returns i see an unbelievable opportunity. i see best-in-class platforms and education. i see award-winning service, and a trade desk full of experts, available to answer your toughest questions. and i see it with zero commissions on online trades. i like what you're seeing. it's beautiful, isn't it? yeah. td ameritrade now offers zero commissions on online trades. ♪ good morning, mr. sun. good morning, blair. [ chuckles ] whoo. i'm gonna grow big and strong. yes, you are. i'm gonna get this place all clean. i'll give you a hand.

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welcome back to box. we're seconds away from july durable goods orders taking a look at futures green aro for the nasdaq and s&p 500 rick santelli standing by with the numbers. >> we're connecting a number up 4.8% if you double it, if you triple it you get in the neighborhood of 11.2. this is a big jump for durable goods orders 11.2 and where does that take us to we actually had a 15 in may and we had a minus 18.3 in april that's when we went on that transition site isn't the highest but certainly is surprising given expectations now if we look at the capital

goods orders nondefense air kraec defense and shipments, shipments are up 2.4 that's better than expected. i don't have the other data points here they are. they are starting to think it wires. up 2.4 on durable goods orders ex-transportation. in the rear view mirror 3.6 went up to 4% you can see where the comp is there. then capital goods orders, for capital spending, believe me this was stalled even before the coronavirus hit the economy. up at 1.9 a couple of the tenth better than expected bath nice revision to our final read last month which moves from 3.4 to 4.3. that's definitely powerful and on the shipment side as i pointed out earlier up 2.4 that's against an expectation, that's about a little bit under 2% and also the revision, all these revisions are strong

3.3 moved up to 3.8. i do path word of caution here durable goods orders are super volatile to begin with and this is a preliminary read which means all the data, the piece of the puzzle aren't in place yet but definitely a strong read on the interest rate side we're back over 70 basis points which has become a psychological area to pay attention to. we have a record size five year note auction today at 1:00 eastern at 51 billion. yesterday's record 50 billion. the note auction went pretty well the shorter maturity hard to go wrong. what's the close yield rate for a two year note. between 13 and a half basis points and 15 and a half basis points further down the curve we go more volatility, more important these options are to may attention to joe, andrew, melissa lee, back to the whole gang. >> yeah, rick. the ten year yield up .7, almost

2. almost a the two month high for the ten year yield i under and i get the point about durables being very volatile monoand could be completely revised away let's assume within the order of magnitude of a beat over expectations how do you interpret the strength here? >> you know, i think that all the strength is being second gesd and a guessed. when you hit a bottom, like the shutting off the economy after the coronavirus hits, the bounces are going to be substantial. and they count these numbers count. they get inputted. the whole economy isn't chugging along. with respect to the history of the last several months and the rate of change that the market should pay attention to these numbers are quite good and i would put lots of confidence in them that the final numbers probably are going to be even better considering some of the bumps of the resurfacing of some

of those hot spots seems to be moderating a bit >> all right rick, thank you. rick santelli in chicago for us. andrew >> thanks, melissa coming up billionaire real estate investor sam zell has the pandemic made big the city office building a thing of the past and what about co-working spaces like wework. an exclusive interview you don't want to miss and that's next on cnbc >> announcer: don't forget to subscribe to our podcast you'll get interviews, original content, and behind-the-scenes access look for us on apple podcast or on your favorite podcast app and bsibtoquk d day.

welcome back to "squawk box" huge number on durables in terms of the overall headline number as well tass core number

we got futures higher right now holding on to those gains. s&p 500 looking at four. nasdaq nasdaq higher by 26 1/2 >> latest states of play survey from cnbc and change research shows people in battleground states feeling better about the u.s. economy and unemployment rate sentiment shift comes mainly from arizona, florida and wisconsin. let's get to sam zell, who, obviously, legendary investor, equity group investments and whenever you're on, sam, i go all the way back to when i was buying as a stock broker southeast the things that you thought were attractive like those rusty old rail car that you somehow saw some value at i te -- itell. you were called the grave dancer because you found value in things that were left for dead basically. and you've always done that with real estate. buy low, sell high

i just want to start the interview and then we'll get to some other things. i want to start by asking you right now it seems like would you be looking around and seeing so many opportunities given that so many things were being left, you know, was so undervalued given what happened with the economy during the pandemic. you don't see it that way. you're not buying anything right now,are you >> well, we are for sure active, although it's really too early for what i would call the normal clearing process that clearing process usually leads to opportunities and i think everybody is still a little bit shaken and people haven't made decisions yet or haven't been confronted with the reality of the situation so, i think that there will be

significant opportunities probably in the fourth quarter or the first quarter of next year but the pandemic has basically slowed down decision-making and deferred decision-making and, therefore, general activity level from a transaction point of view is much less at this point. >> the big cities, sam, i think maybe you might be more pessimistic than really a lot of people, and i do want -- now that i read this here's southeast issues people see. here it is you can respond. >> this hundred of thousands of people looking for suburban homes and i would say it's not as driven by the covid situation

as it is safety and law and order and that's now pervasive across the big cities in the united states sadly. >> you characterized the future of big city, i guess both office and residential as long lasting scars in that sector of real estate do you feel that way can you go in that a little bit, sam? >> yes i mean i think, you know, i think barry's comments are exactly right. that is that everybody is being driven and impacted by the issues of safety and i think that, you know, we're in an early stage of kind of let's call it a change. i mean you can see it here in chicago, i think chicago was surprised by the violence and the looting and the organized nature of the attacks. the steps that they have taken

since that time and very significant in term of wherefore lack of a better word gaining or are regainingcontrol of the city i think that's happening pretty much all over the country. i think that, yes, people are quote running to the suburbs particularly to find, you know, rental kind of house but i the think that's a short term response, and i think that the basic reasons for cities, the fact that we're social animals, the fact that yo urbanization creates opportunities and i don't think we'll see anything like that a repeat back to the bad old days where cities were too dangerous. now, we, obviously, need a lot

of enforcement and we need a lot of adjustment to these no bail, no bad things happening. there has to be consequences and hopefully we'll see that happen in the next few months. >> we'll see i was thinking about how long you've been coming on the show and you span a lot of different administrations. i don't know, about 20 years you've been coming on the show >> been a longtime i remember when, you know, joe kernen was a young guy >> very funny. you look the same the entire time somehow, that's good and bad, sam just kidding check this out so, you always say that you have been a democrat for life you've always been daem. but there have been times in the past i would say mostly during the obama-biden administration

where i think that you criticized some of the regulations, the regulatory environment, maybe southeast tax policy and i'm just wondering where you are right now given that we're in a political season there's a piece in the "wall street journal" that says that the left and mr. biden want to claim trump inherited a long expansion but they opportunity out it was the weakest recovery post-war and that the second half of 2015 was losing steam and came close to a recession in 2016 and then the policies that trump brought in the deregulation, tax cuts, corporate tax cuts did work initially until covid came along. do you agree that that things were going along pretty well and what should we do wish die policies in the future from wherer with right now make more sense to bring the economy back, tax hikes or more of what we saw? >> first of all, i do agree -- i

never really identified myself as a democrat in the most recent periods. in the beginning when i was very young and in cool and law school, et cetera, i was for sure a democrat. as i've gotten older, i kind of been much more of an independent and probably a republican. i was critical of the obama-biden era because i don't believe that redistribution is the solution for anything. the only thing that really matters is growth. and that what the united states needs to do is encourage growth. and that's how we also solve the inequality problem i think that inequality grew dramatically during the obama years primarily because the focus was on redistribution

rather than on creating growth opportunities. i think that many of the things that the trump administration did were very positive for that. and hopefully they will continue and help get us out of this mess from the pandemic. >> melissa >> sam, you talked about not seeing opportunities the until maybe later this year and i'm wonder if you think there are opportunity on the other side of the trade. there's been a lot of talk recently billionaire investors going short, the 6 series which is heavily weighted towards mall debt is there more down side in that sort of trade. your in or have you considered that sort of trade >> you know, i'm very lucky. i used to be one of the largest owners of arrest in the united states longtime ago in the early 90s i

decided that wasn't where i needed to be focused in and sold our entire retail portfolio. i, obviously, wasn't smart enough to know that online retail was coming on and what it was going to do to the retail market there's no question in my mind that retail is falling knife and we are for sure notat the bottom in term of the impact online and just a change in the orientation towards retail >> so there's more pain and have you considered that sort of trade where you're betting against that debt, you're b betting we'll go into default? >> i don't think -- i don't really think in terms of trades. i think in terms of, you know, i would buy a retail portfolio today? maybe not today but maybe tomorrow

i think that, you know, we started out this whole scenario with more retail space per person than any other country in the world by a multiple. to some extent the change in retail is really just a recognition of the oversupply. i think going forward certain italy pandemic has accelerated the amount of online retail and i don't think that's ever going to change. and it's going require, you know, future retail to be retail real estate to be very different than it has been up until now. >> sam, yesterday we played this out. we have a lot of worries about law and order, big city, but when pressed, he thought that the, the i guess, the divisive over the last four years, if you had to be pushed on who he would

vote for this time he came out with biden we go back many, many years and you're always hesitant, you don't endorse on tv and i'm not sure you're ready to do it this time >> that's correct. >> okay. anyway, you do have some pretty stark choice in terms of regulatory policy probably, green new deals, can you give me some body language -- does the divisive or down side to what people see in donald trump make it unable for you to support him for four more years? >> i think that as an investor and as an american citizen, i don't think anything is quote as clear as you perceive the question i think that the real $64 question on this whole election is who is joe biden, and is joe

biden the joe biden of 20 years ago or is the joe biden just a place holder for the democratic party being taken over by the radical left i think that the ideas of what i call for lack of a better word the radical left are relatively catastrophic for the future of our country and i'm not supportive of them if joe biden quoteis able to govern from the center, that's a very different story and i think that over the next three months we're going to find out exactly where he stands and whether he has the commitment to be a centrist or whether he's just going run over. >> what was obama-biden?

that administration. was that centrist? would you like that biden for the next four years >> well, let's put it like this. if you told me that the obama-biden plan or methodologies was going to be repeated for the next four years, i would a lot less worried than i am right now. >> okay. all right. so you are worried about -- so what i'm reading is you didn't like the redistribution policies of the eight years of obama/biden but it's preferable to the divisiveness or some of the down side to the trump years. >> well, i think that -- you know, i obviously don't think that the divisiveness is beneficial and i think that anything that is, you know, focused on dividing our country is not a positive thing. at the same time, i think some of the radical solutions and

free everything philosophies are just not realistic and ultimately will lead to the destruction of our economic system >> andrew, i don't know, are you gone, are you back did we have a technical problem? do you want in >> i had a little bit of a technical problem, i missed sam briefly. >> okay. >> we had a little bit of a technical glitch, but we are all good, and, sam, it's great to see you. it's fascinating to hear your views, the political views, but also your views about cities and i'm trying to be optimistic and hopeful. i hope that, you know, six months from now, a year from now that some of the great cities like chicago, your city, and new york return to some better sense of normalcy. i appreciate your optimism this morning. >> and i think i would add by saying that it's going to require leadership you know, it's going to require the leaders of all the companies to come back to their offices

and lead the people and create the opportunity and hiding out in the hamptons or hiding out in vermont or wherever doesn't make any sense and is counterproductive. >> all right sam, great to have you on today. we will continue our long, long relationship, hopefully. >> my pleasure i miss being there in person and connecting as we usually did. >> i know. it's always fun. where are those railcars now i mean, they were old and rusted out when you were buying them, aren't they? >> yeah. >> itel, the wonderful itell. >> we just sold the last piece of itell about a couple months ago after 37 years, but the railcar business is actually quite healthier today than it was when i got involved in the

early '80s. >> right all right, sam zell. >> my pleasure. >> very good andrew, i will give it back to you, i guarantee you cramer remembers itell and a lot of sam's moves. it wasn't just real estate, he was all over the place, wherever anything was cheap that could be sold for a lot more later he would find it. >> sam was there. >> yeah. right. >> sam was the pioneer you bet. thanks, sam. we're going to get over to jim cramer right now who probably does remember itell very well. jim, it's great to talk to you >> i thought that it was an unbelievable company, it was a technology company itell we were all trying to figure out the values of these and now we know they're being used because our rails are probably -- they are precision and we need every car we can get. >> jim, i have so many things i want to talk to you about. real quick, you talked to

benioff last night on salesforce, they're going to be brought into the dow starting monday what do you think that actually does to the business itself? do you think that actually -- will actually expand the business because more people will know about it >> i actually think it might and that's because jeremy siegel yesterday, very part guy, professor at penn said a lot of people don't know what it is it's a good identifier this is a quarter i would have expected maybe at the end of 2021, it was that far ahead and a lot of this is of course the pandemic and people don't know what to do so they turn to salesforce. >> jim, two other very quick questions. >> sure. >> spacs, you saw desktop metal this morning, do you think that investors should be buying in on spacs when deals happen immediately or wait to see how they play out first. >> i like the one for utz, it's so small but it's a great one. i think that it's case by case gary cohn, does gary know business absolutely i'd like to know a business

plan the utz is dynamite, regional, going to national potato chip and smack company. we like the pretzels, like their cheese balls, you have to like the product and that's what makes me like a spac, it's not the person but the product. >> okay. jim, we will see you in just a couple minutes on "squawk on the street." >> good to see you online again. i know you missed a little bit. >> i had a little gap in the technology here, but we're all working again. >> great show this morning. >> meantime -- thank you it's been great to have melissa here and joe has been doing a great job. we're missing becky as well. the whole team meantime, coming up on the other side of the break, top stocks on the move ahead of the opening bell stay tuned, you're watching squawk right here on cnbc.

a little more than half an hour until the opening bell on wall street. let's get to dom chu he has this morning's movers. >> good morning. let's take a look at dick's sporting goods, it's surging right now, that retailer rng a $3.21 a share better than expected in terms of overall estimates, revenues coming in well ahead of expectations as well so you take a look at those shares, those comparable store sales, by the way, the digital sales, up massively, nearly tripling there, dick's sporting goods one to watch as well checking out what's happening with salesforce, soon to be a dow component, up big as well. check out what's happening, better than expected results there, up about 14%. then we will end here on shares of apple which are getting some at least movements up to the upside helped along with some analyst upgrades as well wedbush upping their target price to a trestreet high.

up 1% in the trade so far. melissa, back over to you. >> dom, it is amazing to see all these analysts tripping over themselves to raise price targets on stocks that have simply gotten away from them when you take a look at the prior price targets. the we had bush street high, another call yesterday and tess will and jefferies went from a price target of 1200 to 2500 >> you have to play catch up in some way in some ways this is a mea culpa, an acknowledging that perhaps their target prices have been lagging at the very best. so if you take a look at those particular upgrades and down grades, the issue i have right now is as you take a look at the upside momentum for these stocks it implies over the long term they are going to have upside but they don't necessarily factor in any kind of a pull back we could see. i'm waiting to see if these things pan out >> dom, thanks good to see you, dom chu.

durable goods pretty -- very volatile, that's what we always say, down or up, very volatile dow has cut its losses a little bit, under 30 points, but all session long premarket we've seen the s&p and nasdaq up melissa, parting is such sweet sorrow, are you here tomorrow? >> i will see you tomorrow. >> good. excellent. andrew, you, too make sure you join us. "squawk on the street" is next ♪ good wednesday morning, welcome to "squawk on the street" i'm carl quintanilla with jim cramer and david faber. futures are pretty steady, mixed, as a waiting game begins ahead of jackson hole and powell's speech tomorrow durables with a nice upside surprise, we're watching hurricane laura. roadmap begins with salesforce, monster beat, rising the guide, up for that new dow component. >> palantir's pitc