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 pitch, the s-1

rips into silicon valley and defends the company's government work >> and no symptoms, no test. why the cdc is quietly updating its coronavirus testing guidelines normally, jim, i wouldn't start there, but you were just tweeting a moment ago about how important testing is as the number -- the seven-day average of new tests in this country is the lowest since early july. >> i just think that the main gap in the system is you hear people say, well, my daughter just got it from college and we've been all trying to test in the family, it's five days, we don't know what to do. i think that that halting nature of what to do has gripped this country and has changed it from a country where you go places to a country where you stay at home it's a country where you do not travel overseas, it's a country where you're frightened over a five and seven-day period endlessly and we live with the tyranny of it. testing would end it, but it's got to be instant. can't be a lab a lab is a big, big obstacle.

>> yeah. we will talk more about that later. certainly the way covid has turned the world upside down has done nothing to dampen salesforce projects. citi likely taking hardware share from cisco it's an amazing print. >> sometimes you look at a print and say when did you expect to get that one when did you expect to see that quarter? it would have been sometime maybe toward the end of last year, they've got 20 billion rev. the thing that i find that is most exciting about this is we're seeing companies saying i have to digitize you look at nordstrom, they didn't digitize correctly. anybody who digitized correctly, dick's which we are going to talk about, the world is their oyster most companies they are not technology companies so you bring in salesforce, they tell you how to do t david, you know that marc benioff has a vision which i think you share about how to change the world.

>> yes, so many things that benioff and i share other than friendship which we do not share. no fault of mine no fault of mine i mean, i have never actually had a guy on set when i ask him a question completely ignore it the way that marc did. >> i got that clarified. what marc has done is made it so that whether it's at&t, whether it's the veterans, under armour, vf corp. or vans, they figure out a strategy to be able to lift sales it's done by knowing your customer, by being the true arbiter of the customer and it works. i think a lot of people think it's smoke and mirrors until they bring it in and get a gigantic lift on their e mers. this quarter retail has been all about e-commerce if you had it you're good, if you didn't, bye-bye. >> we're going to get to some of

the e-commerce numbers out of dick's and others today, jim you did talk to benioff last night, he talked to you about the growth rate, but also talked about some of the challenging times that we are in let's take a listen. >> this has been such a challenging time for so many of us and, you know, we realized with 54,000 employees working at home, with a raging pandemic, with this economic crisis, social justice crisis, with this environmental crisis, we had two changes, we could stay and do what we were doing or we could change, we could evolve, we could shift and we did >> jim, wasn't long ago we were questioning the strategy of letting some customers go without paying some of their subscription fees. now all the commentary revolves around how you raids margins even amid explosive growth. >> i'm glad you mentioned that because that was the theme last quarter was a

disappointment and why was it? well, when marc came on he said we had to let people have it for free for a while, we were not going to try to squeeze our clients, prospective clients do you know what, it worked. they had a run of new clients, the likes of which i have not seen, this was the best quarter, i believe, as a public company and a lot of it is just companies and states -- university of kentucky, university of kentucky figured out its online strategy with mark when you bring in an outfit like at&t and, david, i know you can speak to this, i don't think at&t was necessarily known as a customer-centric company and what marc benioff talked b he wanted to talk about it first, was the number of people who are feeling basically good about at&t and their cable service because of this identification issue that marc gives you. know your customer and, david, i think a lot of companies that don't know their customer have no choice but to it your honor to sales force they don't even know how to do

it. >> you're right. you're right listen, jim, and you have made this point already, but it's worth mentioning again, i mean, we have talked so often the three of us about the acceleration of trends that were already in place and the digitization certainly of so many companies when it comes to their customer-facing opportunities has been accelerated. they have had to it's the only way you could survive at this point and obviously sales force has greatly benefited from that. not as much oracle or sap, by the way, as salesforce has been able to during this period. >> no, and that's the customer relations management marc puts up charts, shows that marc has been taking very big share. i think it's true. i think what you talk about with the e-commerce, you look at a stock like dick's, it's going to be up maybe the most this morning and they've got some numbers for e-commerce that are, again, staggering numbers that you get where first of all when

you see the earnings increasing 148%, 155% for nongaap you realize how did they do it because e-commerce sales increased 194% the theory i'm propounding for tonight's show is your home has become everything. it's become your mall and it's also become your office and, therefore, if you are going to shop at dick's you're shopping from your home and you take a look at the incredibly poor numbers by nordstrom today and the whole goal was to get you into their store so that you would do shopping, both their rack off price and also the main one in the mall and people don't want to do that. it's just -- it's done it's just not going to happen. they were nonessential because they didn't sell food. this was the same kohl's dilemma. they have no raise on deck, there is no reason why you need to go to nordstrom the better service is on amazon. >> it's true, jim. you would be the first to say

when the government says you can't open you are talking about huge policy ramifications, but it was interesting, you know, best buy was able to overcome some of that closure in the quarter but just not so for jwn. >> best buy has a pretty good curb strategy. the number of price dumps today, i thought best buy was unfairly punished by the fact that the stock ran up i think the best buy story is simple, they survived. they few in their category can survive. this whole issue of who survives versus who goes was decided by the government and i don't think we are ever going to understand how we let that happen, it was so arbitrary and capricious but when you are a nordstrom and you were closed for 50% of the days what happens what happens is people say they're closed i'm not going there. david, children's place, terrible numbers i start thinking in the mall, what are they going to do. everybody that's in the mall that was nonessential, people don't come back.

stores aren't that great. >> i know. but what you're arguing and many are is that there are behavioral changes now in terms of, well, behavioral societal changes that have taken place during the pandemic that will continue forever. we talk about shopping, there are others who will say, listen, people like to go to a store, especially a nice store, a nordstr nordstrom, something like that, there is something they enjoy about that and that's not going to change when they're able to do that and feel safe again. similarly there are those who fight back or challenge the idea that we are all going to be working from home forever. i know antonio neary yesterday from hewlett-packard which also had pretty strong quarter offer quarter growth, year over year still not great, but quarter over quarter and that stock will be up. jim and carl, talking about his belief that as many as 50% of the workforce is going to be working from home at some point. i find that a bit hard to imagine, but we can ask him or at least you guys will be

asking -- will be able to ask him about it, carl, on "squawk alley" when i believe he will be your guest the question is are these behavioral changes that have taken place over the last six months here to stay forever or are we making too much of them >> david, i think that some of this is frankly will we feel safe do you feel safe going to the store? i mean, obviously if you had rapid testing and you knew that there was a vaccine you might want to go as richard haines said and this is the incredible quarter that urban outfitters delivered, that's not all mall based but heavy mall, said, look, clearly some customers prefer shopping in stores. if you had heard that statement two years ago would you say, yeah, no kidding no kidding but what we wiped out and, again, he is such an articulate man, with he wiped out weddings, we wiped out graduations, we wiped out dining out, we wiped out the reason to get dressed nicely so what's happened is, and, again, he is such a smart man i'm going to steal this for the

moment, he is talk being that we are now -- fashion is function it's function. and it's also impossible conditions and bringing supplies carl, i think that things are here to stay until -- we have to hurry up whoever is trying to get us a vaccine and test has to realize there are a lot of jobs on the line even though i do see obviously from durable goods there is a come back there's no doubt a come back no one disagrees with that. >> durables -- durables up 11.2. we were looking for 4.7 and the prior 7.6. decent numbers on durables and that's a big reason why yields are up close to two-week highs jim, to your point about fashion being function, i mean, ces, conventions, now on the wires just now, davos rescheduled until early next summer, the olympics we will find out if the super bowl happens, but, you are rig right. what's the upgrade today keurig, dr. pepper, morgan stanley overweight on in-house

coffee consumption. >> yesterday smucker you had duncan, café bustello, these are putting up 20% numbers, follow injuriger's. 20% growth for a coffee. what does that mean for stars bucks and kevin johnson. the foods that people really love, coffee, that's been a major come back, and, get this, peanut butter. jiff had amazing numbers and skippy had amazing numbers you can say, wait a second, is that a recession or some sort of craving? i don't know those are the two -- those are the two food stuffs that people went nuts for in a pandemic. david, i don't know. i know you never leave your house. how are you stocked for peanut butter how are you stocked for coffee >> we're good on both. >> good. >> we are good on both. >> i will tell marc benioff you're fine on that. >> thank you thank you. i appreciate that. because i know he cares a great

deal about my -- >> that's all he talks about >> guys, we will take a break here there's a lot to get to. got another street high on apple for the third day in a row, $2,500 target on tesla and david will walk us through that palantir s-1 which as he said was imminent 24 hours ago and is truly a remarkable read. back in a minute as business moves forward, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers...

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from pa land tear as carl said did prove to be an interesting need to the so much from the numbers but as well from comments from long time ceo alex carp remember, palantir will be doing a direct listing so it's not going to be raising any new equity for the company, which has been able to raise money for many years in the private market and has about $1.5 billion already in cash on its balance sheet. there is a look at some of the numbers as well in terms of the net loss last year, revenues and you can see overall the first half of this year 49% was the top line growth rate, guys, $481 million, you can see that number right there, and they are saying as well in the first half of 2020 the net loss decreased to $164 million they also say they made money when you exclude stock-based compensation but we prefer not to exclude that given it's something they've been doing for

quite some time and probably will continue to there is going to be a lock up of some sort on a certain percentage of these shares, i don't have a lot more detail on that, but it is worth keeping an eye on because it would make it somewhat unique in that sense. then there is the question of exactly what the float is going to be. i'm hearing it could be as much as a $4 billion float, 15 to 20 billion dollar value, you are talking about almost a billion dollars in revenues. guys, what got people's attention is, again, alex carp's comments in a letter about silicon valley where they have been for a long time, but where they are moving from here is what he had to say, the engineering elite of silicon valley may know more than most about building software, but they do not know more about how society should be organized or what justice requires. our company was founded in silicon valley, but we seem to share fewer and fewer of the technology sector's values and

commitments. from the start we have repeatedly turned down opportunities to sell, collect or mine data, other technology companiesincluding some of the largest in the world have built their entirebusinesses on doin just that. reminding us that their software is used to target terrorists and keep soldiers safe he went on to say if we're going to ask someone to put themselves in harm's way we believe we have a duty to give them what they need to do their job government work, jim, has been an important component of this company's business for quite some time, but they are trying to make a larger and larger commitment to the commercial sector with their foundry works product to help companies use data as well but, again, not in the way that he says -- didn't name names, but i think we know who he is talking about. >> they don't like the advertising model which i think is correct i don't know what is in their new product. look, i think that there is something to be said and a lot of these companies keep saying it about the idea that your personal data should be your personal data, but i also say

that everybody comes to the nuisance -- i never understood the idea that you came to facebook in order to blast out your personality or instagram you want to be able to tell things but you want privacy. it should come with the territory. i have shopify on tonight, we should talk about that i appreciate any contrary -- this is a very good call about the idea that there is just a concentration of power in one area and i think for those who want, let's just say, more democracy of tech, it isn't good that there is just a small group of people who control so much. but i also think that palantir is fighting -- they are fighting an uphill battle they're smart guys. >> may be. interesting to know peter thiel a founding, he is a billionaire but i'm told fairly liquid, this is an important direct lister for him as well. he is, of course, carl, on the board of facebook which while not named certainly seemed to be the focus in part of what mr.

karp was writing about. >> yeah, if people look into that letter from karp spitting on the traditional mindset of silicon valley but then, david, class f common sort of tying right into what silicon valley has done long term in terms of ownership structure. >> correct they will have voting control of the company to your point. that's right and that is something that we've seen happen of course the likes of facebook as well and a number of other companies so, yeah, it's not as though they are on the governance front at least that they are necessarily adapting best in class at this point, carl, but he's an interesting guy, karp, and i hope that we get more exposure to him. he doesn't make himself widely available but he's worth lipping to i've gotten to know him through the years and has a unique perspective. >> isn't it sanctimonious to say our looerdship believes working

with the chinese communist party is inconsistent with our culture and mission. no kidding if your culture and mission is to target terrorists and keep soldiers safe, why would you be -- i mean, yeah no, i don't want you to work with the chinese i mean, honestly not only that but we are not working with north korea that's it. we're putting our foot -- come on there's no place for sank moany. >> all right good yeah you thought he was sanctimonious. >> yes. >> i get it. i get it jim, stay tuned because we're going to have an interview with bhp committee mi pchlp committey it's his first interview in the u.s. a lot to talk to him about including of course the storm that is coming to the gulf and what they're going to do to prepare given bhp does he erations down there. back right after this. at leaf blowers.

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all right. let's get to a mad dash now. jim, you are going to take a look at lowe's. >> yeah, there is a couple notes today, jefferies comes out and says they have a new tool rental plan but it hasn't been laid out yet, but i mention lowe's because in the old days, david, when there were somewhat obvious trades like a hurricane people would buy home depot and they would buy lowe's i think that these new younger traders they think that they've never -- you know, no one has ever seen anything i actually think they're going to buy lowe's and home depot off this terrible hurricane that's potentially catastrophic and i think you've got to get ahead of them because i do believe that lowe's is a fantastic company, home depot is great and they are always first to help in these terrible, terrible weather conditions be aware i think that they will plow into it tomorrow morning around 4:00 a.m., maybe want to get into it ahead of them. >> wow so you're just giving -- you're giving a trading recommendation based on what you think is this sort of new cohort that's entered our market. >> yeah.

>> which will be thinking about things for the first time in a way that obviously we've been watching forever. >> it's extraordinary, david, they wake up and they say, do you know what, salesforce added to the dow, well, do you know what, salesforce will buy and then, david, the next day they have a report and the stock it up 30. i mean, because this mantra of these people is stocks only go up, my friend david portnoy has been the principal proponent of that, but they will do this. they will buy lowe's and they will buy home depot and they've got it right, salesforce, 34 points. >> right so they were not looking deeply into the salesforce numbers, making sure they understood what free cash flow was and what the prospects are for its opportunity to continue to grow at a significant rate? >> they may have had interested in the tab low software feel, meal soft worked very well maybe they were scrutinizing, david, the market share versus sap in oracle, or maybe they just said, hey, this one is

going higher, let's buy it which is the new way, david. >> i doubt they even -- they didn't even know there were earnings yesterday you know that. >> salesforce, maybe they think it's like armed forces i don't know no, they did know there were earnings david, what did they do? they bought it and picked up 35 points who are we to criticize. who are we gray beards, suits. >> i know. >> we put suits on, we know? >> is it 98? is it 99 is it 2000 where are we >> david, i have to tell you at law school we called used the term sui generous, it ain't like anything we have ever seen silence. >> carl, interesting times yeah, because, you know, so often, carl, with he hear these comparisons to the late '90s but it is worth reminding people we were talking about excess speculation in '98 and it went on for quite some time after that. >> right, and i think that,

carl, we have to respect t i think a lot of people including many big hedge funds don't respect it and they've been left behind by the people who are optimistic >> yeah, jim although yesterday i think we were going back and forth with portnoy about why people continue to insist it's a bubble and i think your implication was those who repeated about i say, oh, we are in a bubble, we are in a bubble, are not well-informed. >> no. i mean, i think that -- well, there's two things i would say there is a really interesting piece today jefferies on tesla and it's called the permanent revolution continues permanent revolution, carl, that is actually a phrase that comes from leon trotsky, meaning you constantly have to reinvent and attack and crush your enemies. portnoy is a bit trotsy-ite when it comes to these people i would say trotsy -- trotsy would look at these people and say they are really rich people who are sitting on their laurels

and do not have to account for anybody. portnoy of course comes from the sports world where these people would have been fired nine times over can you imagine an nfl coach who was very good in 1987 and has been coaching ever since and that's the world that portnoy is from he is a world of rigger and the world of rigger in the nfl is far more rigorous than the world that we have people can be wrong all the time a lot of these hedge funds come on and maybe they say they are on some private island, maybe they say this is the most dangerous market ever and nothing -- they're wrong and they still have their job, their job is to be rich. so that's why i thought that the tro trots keyimplication was interesting -- >> it was interesting. >> their job is to stay rich and keep you poor. >> the hedge fund world was created to enrich a small group of people beyond all measure despite the fact that when you look at the performance over a long period of time it is

nothing short of maybe average. >> yeah. >> and yet they have all been compensated until recently where fees really have started to struggle they have all been compensated as though they are the greatest invest of all time and they are not. >> no. >> they are not. it's much more of a marketing scheme in many ways has been my experience having followed the industry now for a quarter century from really its earliest day to where it is right now. >> david, we hang on those filings of what they're doing, we have people come on and say, listen, the world is about to end and then they buy into the world is about to end. i don't know who does that, but, david portnoy is not one who does that. >> yeah. >> i mean, remember, he got in right at the bottom. >> it's remarkable and it goes to the current conversation about wealth in this country, carl, because there has been an incredible amount of wealth created as a result of this industry that you could argue didn't make sense and didn't actually operate in

the way we'd like it to in a free market because in a free market it would seem assets would actually accrue to those who were best positioned to get performance and yet that didn't always seem to be the case. >> never fired. >> not to mention the federal reserve just this week with data showing that top 10% of earners in the country own 87% of u.s. stocks highly concentrated and unequal distribution of gains from the stock market which we don't talk about enough jim, back to what we do talk about and that is names like apple, you see we've got we had bu wed bush today going to 600. iphone 12 super cycle they say as i also notice reports apple may be planning augmented reality content for apple tv plus. >> they've always been saying that i want to caution -- you only hear the term super cycle when you are wrong. i say own apple don't trade it

we had a fracking sands super cycle, we had a coal super cycle, we had an oil super cycle. you never want to hear that term because no one can live up to a super cycle. i think they should temper their enthusiasm i am the biggest apple bull on the street i don't like to hear super cycle because that's the kiss of death. >> you know, jim, and carl, we don't mention often enough berkshire, still one of the largest companies in this company, i think sixth largest market cap, it's 250 million plus shares of apple are worth $126 billion. >> a lot of coca-cola. >> doesn't add up to anywhere near that number, not even close. i mean, bank of america i think is berkshire's next largest holding at around $26.5 billion value even though they own 11.9%

of the company, jim, that $126 billion and then you add the cash that berkshire has as well you get to an enormous number. there are some people that have been doing analysis on this idea of the stub value of berkshire given that. >> wow. >> i'm not sure it's completely worthwhile, but it is worth mentioning what a position that's been for warren buffett, you know, and you can criticize and we have and certainly there's plenty of names including kraft heinz and wells fargo, but the apple purchase not bad. not bad at all. >> went to dairy queen, saw everybody using an apple you never wanted to own technology stocks. he always regarded it as a consumer packaged goods play i know tim cook doesn't appreciate that is correct the ceo of apple, but better to be lucky than good. if you see a lot of people walking around with apple phones and decide to buy it, it does make up for some very underperforming wells fargo. wow. i'm still waiting for wells fargo -- i don't even know what

i'm waiting for there. a stage coach. john ford. it's a john ford movie. >> by the way, speaking of great investors who have had long track records, carl icahn, if he held on to that apple and netflix stake he would be worth $50 billion or 60. the numbers are staggering he did very well, remember, when he was taking tim cook to task and they were having dinner and things there were things like that that was years and then they sold same thing on netflix. sometimes it pays to hang in there. >> look, this whole idea of being in and out of apple has been a disaster and yet these analysts they upgrade, this he downgrade, it's really repugnant. we criticize hedge fund managers, how about analysts who are just trying to make a name, come on tv, say apple's best times are behind them, the stock was at 200 i don't know i think if you have conviction and the story stays the same, just stay with it. you can say, look, there might be short-term craziness, this

split has really created a belief among, i think, again, david, some of those newer traders that somehow a split occurs, you buy it before the split and suddenly you get a lot more no, not really you still get the same amount, but i do find, david, what i like about these people, what i like about these people is they believe in stocks not just etfs and you cannot tell a single robin hood trader they're 13 million strong that there is such a thing as single stock risk because they've seen the fortunes made in facebook and amazon and apple, seen them made in microsoft and google and they don't want to be left out by being in some sort of s&p fund and i don't blame them. >> certainly today is the day, jim, that completely ratifies that point of view as we see all of mega cap tech really supporting sectors that are otherwise in the red, including banks and we haven't really discussed what to expect out of jackson hole tomorrow, jim, but alan blinder in bloomberg today suggesting rates could be near

zero for the next five years >> i disagree with that. there is such a thing called science and if science solves first testing, gets that gap down, no more labs, then solves therapeutics so that if you get it you can take a pill or a needle and you get cured, then we will be thinking what was blinder thinking why didn't he stick to -- why didn't he think about science instead of sticking to commissi economics. this is a giant science economy. i'm tired of hearing from strategists who don't lead off saying it's a science economy. it's a science downturn for heavens sake it is. that's what it is. it's not a downturn on consumer spend. you heard larry kudlow last night, carl and david, carl, larry is bullish >> he is bullish talked about the pandemic in the

past tense, said it was awful. new polling today who say those who would take a vaccine if it were available today 40% now, up from 33% know as we talk about the fraying of confidence in things like science and the cdc. american laying off 19,000 yesterday as we know and, by the way, am he had dose on the tape saying that they are considering some executive orders to help out the airlines. >> i think that they, too, should wait for some science southwest is saying they don't have a problem, american already in hock a lot. i'm a believer that we will have developments when you see -- i watch dr. gottlieb and there's so many smart people involved. all the kids that you did not want to compete against -- remember when you would walk into one of those college classes and see all those people saying this is a d coming. they are all working on this they are smart people. we thought that smart people go to a small area of silicon valley, keep to themselves and determine the world. i am saying there is another group of people who are very

smart, except for they're scientists and they intend to try to cure something and stop den grading them or saying they don't know what they're doing, i wish the fda had more backbone, you're putting up a list of stocks that look like they are has been's but i think we're going to get results we start by knowing whether we have it and then we can do something. not five days later, not -- we send it and 77 nfl guys are listed -- imagine if that bio reference piece where there were 77 tested positive that came out game day what would adam schefter say you have 77 names who can't play david, he is espn analyst. >> i'm aware of who he is. >> okay. >> i've been watching a lot of basketball i don't know about you guys, i've been very much enjoying the return of at least some sports the mets was a little tough to take. >> there is a bubble basketball is a bubble okay >> basketball is a bubble. >> you have hedge funds come on say it's a bubble and they are worthless. basketball is a bubble.

>> basketball is a bubble, they get tested a lot and, listen, i share your concern still at this point given that i have two very social teens and we have had them tested a lot and, man, you cannot get a result as quickly as you need to. >> you can't. >> unless you're willing to pay. there are places you can go and pay a lot of money for it and so the question still becomes, well, why hasn't the government then found a way to make those places ubiquitous where you don't have to pay so we can all get tested when we want to and get results very quickly i don't get it. >> we do people to be in these trials when i heard that vacs number, i've been trying to get into the j & j trial, i think it's everybody's duty to get in these trials there aren't enough arms regeneron needs more people. if we don't have people from hot spots who take these vaccines we are not going to have any answers. it is everybody's american duty to try to take a vaccine we need testing. we don't have enough people who

are willing to try that's going to be the death of the vaccine candidates. >> let's hope people listen to that in the meantime all time highs again for the s&p this morning and the nasdaq let's get to bob pisani. hey, bob >> good morning, guys. happy wednesday. all time highs on the s&p and nasdaq but not a lot of new high breakouts. where are they i count 13 on the s&p 500, that's it. with the s&p at a new high this shows you how important these mega cap tech stocks are let's take a look at the sectors. what's happening today is this little mini rotation into value stocks we've been seeing recently in banks and industrials, that's kind of stopped today. i think largely thanks to salesforce, thank you, that is moving the software sector up rather dramatically, helping techs out, consumer discretionary. banks, industrial, energy all modestly underperforming, the rest of the market here. if you take a look at software stuff, a lot said about what's going on crm, but it was a blow out number overall here, guidance also very good.

intuit delaying knows tax filings helped intuit, this he do the turbo tax and everything else the company said they had the strongest customer growth in four years people needed a lot of help with their taxes. you see software stocks that are doing -- data dog, splunk, service now, smaller companies, but they have had terrific quarters all the time throughout the last few months. the numbers just keep going up speaking of customer growth, online sales among the retailers, boy, they just keep getting just terrific numbers, dick's was up 194, that's not a typo urban outfitters didn't give a number they just said it was up double digits and they had a great quarter overall. surprisingly nordstrom down 5% but that partly is because the anniversary sale was moved there should be an asterisk there. i believe it would have been up if you would have had the normal anniversary sale there, but still rather poor showing for nordstrom. if you take a look at the numbers today the market is telling you here obviously they love dick's numbers and urban outfitters was surprisingly

strong, pleasantly so, you see the 25% jump and nordstrom no real response but disappointing numbers. nothing disappointing about the home builders. home builders, another home run in the new order we just had a vehicle of tremendously great numbers from pulti, horton and toll brothers. the key metric is what's the future like and you watch for new orders that is the key metric for the home builders, another good number here up 26% for toll brothers, d.r. horton's numbers were up 38% when they reported, they reported a few weeks ago. pulte as i recall was flat everybody had tremendous things to say, the numbers kept getting stronger month over month here the request he i think here, you saw they were all down the question is how much more cuff these stocks are up all 30%, 35% for the quarter. if you plot the home building

etf the hxb against the s&p for the year you see the hxb in the white line dropped a lot more in march than the overall market, but you can see it's recovered a lot quicker. we recovered more than 100% of the losses that they had by the march bottom so there's the huge turn around and i think a lot of people have been pleasantly surprised including home depot and lowe's and everybody benefitting from the diy ethic sweeping the country. carl, back to you. >> bob, thanks. rick santelli brought under the circumstances those durable numbers at 8:30. let's get back to him. hey, rick. >> yes, carl, those numbers were definitely on the hot, hot, hot side, you can tell look at intraday of ten year notes they made their high yield pretty much right at the moment those figures were released a little bit above 72 basis points which by the way is the intraday high there about the 13th of august, call it a couple weeks ago, and it's the high close from the 13th as you look at a month to date chart you can see it there right

in the middle and if you open that chart up to june you can see that should we trade a little lower in price, a little higher in yield we would immediately pop up to the best levels since mid-june. so we've really been compressed and i think that's an important feature because we could argue about do you believe the stock market is giving us representation of the economy, but in the end there are no buts, we are at all time highs in the s&p and nasdaq and interest rates really seem very much to be ignoring that dynamic, one could say it's because they're giving you a test of the real economy i don't think so they're giving you a test of the breadth of the federal reserve to keep interest rates low that's really in my opinion what's going on. finally let's look at the dollar index. since june 1st you could see this big rounding bottom that we have where we are coming from 92 plus all the way up to 93, we've been doing some work and the euro currency of course has been turning at that 11 #, 11 #,

118.5 number obviously emerging markets much of the world has seen a relief from the dollar funding issues just a couple months ago and everybody has written off the dollar index, many think it's going to be much lower but at least at this point in time it certainly seems to be getting its land leg back. carl, jim, david, back to you. all right. thank you, rick santelli don't miss coming up our interview with bhp group ceo mike henry they provide commodities around the world. what is he seeing in terms of a rebound? we will talk to him about that stay with us pnc bank believes that if you can get a pair of goggles that helps you master your backhand... ...then you should be able to get a bank account

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etsy ceo josh silverman jos for a bill which seeks to hold electric retail marketplaces to the same liability standards applied to brick and mortar retrailers he says, amazon is taking bold steps to wipe out competitors by promoting hard to comply with legislation that only they can afford to absorb their goal is to be the only place to buy things online since co-vid through marketplaces like etsy small businesses struggling now more than ever will bear the brunt of the overbearing burdens

of ab 3262 that seeks to hold retail marketplaces to the same liability standards applied to brick and mortar retailers something you imagine is not good for etty. >> no. and i think josh raises a lot of good points. basically that this was an anti-amazon bill they didn't want obviously california didn't want amazon dumping cheap stuff. it could be difficult for amazon to make the rules too hard so etsy wouldn't be able to vet all the items sold tonight i have to bring this in. i thought josh understands the wolf in sheep's clothing is no protection bill. amazon better distance itself from it if they want to be a good actor what a great thing if they did that they are

you can't do this to the small business person. that's who is on etsy and shop if i and they're struggling the most in this country, not amazon >> it would be the first law to hold online retailers liable for defective products it would be forging a new area which california often does. >> yeah. uber and lyft can tell you about the california law they've been very important to a very big business. we continue to see consumer discretionary and information technology continue to support the market at large with most of the other sectors down s&p is up almost five points ckft arecord today ba aer bak what happens when 2 million people

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dow is down 50 breadth is mostly negative today. you can see what facebook, tfare, amazon and nelix e all up back in a moment

let's get to jim and stop trading. >> a company hasn't done as well as others. dra day you can do it virtual. you do it that way and you're the right place to be during a pandemic stock is up 7.

i think it goes higher >> a few names off of their early morning highs along with shopify and 3 m. >> i cannot wait for tonight's shows. all those stocks are potential movers all of them. >> wow that's a lineup right there. >> thank you, guys >> and then. >> very nice >> do you think we mentioned earlier jackson hole and we heard frommester george this morning saying she sees more deflation aspects than inflation. i don't suppose you think that conversation is going to flip in 24 hours >> no, but i look for science to help us. not the fed. they've done their job let's get science in >> science how about congress we don't seem to hear about much of them. >> i gave up on them i gave up on congress. i need science because secretary mnuchin, they're trying to do something too late

they failed. now we have to rely on science >> there are a lot of people not doing well a lot of small businesses that rely on congress for some sort of relief. >> i gave up on them we need something but we're not getting it from washington we're not. i'm sorry. >> yeah. meadows, his chief of staff is talking to politico think and said he had his staff reach out to the speaker to try to resume talks on stimulus but does not have high hopes. maybe that sentiment is more widespread than we think >> i think that's true i don't have any high hopes either not anymore. not anymore. >> jim, we'll see you tonight. >> thank you very much mad money, great show tonight coming up at 6:00 eastern time good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with david faber and leslie picker.

all-time highs at the open as we anticipate what the chairman may say tomorrow at jackson hole hurricane laura in focus a lot of megacap lift doing the heavy lifting. ulta, lowe's, urban up almost 20%. that's even off the early morning highs. >> bright spots in retail. s&p shares of sales force surging on earnings. plus as hurricane laura bears down on the gulf coast, we'll talk with the ceo of bhp about the impact on the region and the oil sector and the college opening and co-vid what's being done to keep the students, professors and staff safe >> all right we mentioned some of the retail movers today a lot of that is being driven

not surprisingly by how much they've been able to leverage e-commerce growth in the case of tick's, comps up 20. that's more than double the estimate e-commerce nearly tripling so investors once again rewarding companies who found a way to do that >> e-commerce is interesting it's accelerated for companies that may not have seen as much e-commerce interest previously now in the pandemic that's come into focus it's also a picture of investors looking at numbers and saying it could have been worse. urban outfitters, every analyst expected the company to lose money. they posted a surprise profit. that's something that people were not expecting it wasn't priced into the stock. that said, net sales were still down 16.5% for that company. it's not like they're not struggling it's just that the market had priced in worse numbers than they were seeing >> yeah.

it's funny this leads me, though, to sales force which has benefitted enormously from the need for so many of these kinds of companies to fully digitize their operations when it comes to their communications and dealings with their customer i mean, if you are somehow not there, as a retailer, for example, then you suffer and nordstrom is a case in point, but look at the move in sales force today. that's staggering. adding, i don't know what it is at this point. 40 plus billion in market value just this morning. it is now a almost $240 million market value company this is on top of modest gains yesterday when we learned it was going to be added to the dow but the numbers, 29% top line growth which outpaced most of the analysts who followed the company and right on down from there. and the outlook all just sending

that stock skyward in a way i don't recall ever having seen. >> no, david people are retweeting a report you gave in may of 2015. is this going to ring a bell that microsoft and sales force had talks in the spring about a purchase of salesforce by microsoft and the graphic has salesforce at $73. >> yeah. amazing. i do recall that that's funny you saw that. i have not, but i do recall. and they had the talks then there was a period, of course, you may recall when salesforce was interested in buying twitter it's one reason why benioff, i think won't talk to me, but they decided not to and they got a significant pushback from their own shareholder base listen, they had keith block in there as co-ceo. he departed the company.

there's always been questions as to whether to a certain extent they were going to have to digest acquisitions. like a number of companies that we continue to focus on during this period j they have benefitted enormously from this acceleration of digitizing that's taken place across the board in corporate america >> and that skael -- the big six retailers have seen record growth you've got walmart, amazon, home depot, target, lowe's and costco you look at the picture of what you can do with scale during a pandemic and juxtapose that during a company that's smaller and trying to figure it out and there's a clear gap of have and have notes in the retail space >> yeah. speaking of which, it's a great topic to bring in our next guest on chairman and ceo of charter holdings ray washburn is with us. also the former ceo of the overseas private investment corporation. ray, it's good to see you.

thank you for the time today >> thank you for having me it's an interesting time with the ppp money running out the end of the day what the destruction is going on in the restaurant business. >> and you've been consistent saying august would be a month of reckoning what are you seeing now that we're getting into month's end >> well, the original ppp program is set up as an eight-week program the government shuts down beginning march 14th landlords which i'm also a landlord with many shopping centers and restaurants as ten na na -- tenants. we deferred rent and abated rent now we got to the end of the ppp money, really it served as the unemployment office for the government to pay rent, utilities, but they didn't give us any money to pay for i.t. or bolding the -- you see the

restaurants in streets and things all that capital cost had to come out of the owner's pocket balance sheets of the small restaurant are toasted you'll see in the next 60 to 90 days another 10 to 20,000 restaurants shut in the country. >> is there anything that looser restrictions of the state can change or is this a function of consumers choosing not to go >> in this case government policy forced creative destruction in a rapid rate on us i was listening to your piece on e-commerce no one really speaks what it's done to the restaurant business and what's coming. right now you heard of ghost kitchens the next big term that's come out is called the host kitchen you go to a chile's or applebee's and come up with a new brand. chile's came out with a wings

concept. for the small guy that doesn't have the ability to have i.t. or seating where it's limited, a 40-seat restaurant, if you seat outside, it's fine, but as soon as the cold weather comes, this rolls over this fall when the cold weather hits, the small guy, especially in the northeast and colder areas, how do they survive? >> so ray, what needs to happen then if you say 10,000 to 20,000 restaurants shut their days in the next 60 to 90 days, that's not much time to turn things around is there anything you recommend that either the government do or the restaurants do to try and kind of buck that trend? >> well, look, 16,000 restaurants have shut during so far during the pandemic and that's with them getting ppp money. the money when it came in as accountants will tell you, it came in as revenue to a restaurant bounced up against your expenses.

we looked at it when we got it, and i think a lot of members of congress intended it to be a grant or forgivable loan, not a taxable event. if you have your restaurant above break even, you've gotten back to about 70 3k9 % of sales. if you're not there by the first of august, i don't know how you'll get there at all. congress could address taking the ppp money and turning it into a nontaxable event for recipients i'll speak for the restaurant industry that's one that's some stimulus that will immediately come in to the survivor restaurants to t to the ones that have shut down, i don't know what to say this is a classic case of wall street versus main street. the small main street restaurant, how do you survive in the new economy you're going to see big chains like kroger hooking up with facebook and doing delivery out of their kroger kitchen and

amazon buying the grub hubs of the world and taking over that we're getting rolled and what can we do about it? i don't know we need to get open. i know that. i'm not going to speak to the health and medical aspects of all of it. but that 50% occupancy with outdoor seating, everyone is able to crawl through this as soon as the weather changes and we're inside, it's came up >> but you as the landlord, how lenient can you be with your tenants during a time like this? it's now six months into the pandemic how much can you withstand in terms of leniency for the people who pay you rent >> let's look at the small mom and pop restaurant we went to them in march, april, may, and gave them half rent or rent abated into 2021. how is their balance sheet going to look next year? they have 15 or 16 months of rent to pay in a 12-month period this is going to drag for

several years. as a landlord, i'm taking on the liabilities of things like utilities, property taxes, snuns. they're not paying those things. if we get into later this year and people continue to ask for rent abatements, and then they fail, then i've eaten months and months of utility costs. as a landlord, it's tough. if a landlord -- if a tenant will work and do things like outdoor seating and delivery and be creative, i've had some stick their head in the sand and say i wish it was march 1st. the world has changed. you've had six months to try to ie just to it. and what do you do for a tenant with limited seating and you no longer have the seating? one thing that happened across the country is liquor sales to go, being able to make margaritas and sell them off premise. that's helped. there are little things but i don't know i don't have an answer for it.

>> ray, it's david correct me if i'm long you're levered as well, aren't you? you've got debt. i'd assume it's not that big a margin you've got to give to your tenants how does this play out if it continues? are wegoing to see more bankruptcies across the board? >> oh, yeah, especially in the triple net space, being if you own a one off california pizza kitchen free standing building in a parking lot of a mall and they take bankruptcy, that keys back to the lender restaurants make up to 10% or 20 % of your space, some of them will survive and you'll get through. your margin is gone. and the ppp money, it came in your balance sheet as revenue, but you had no profit margin in it all the expenses from january and february people are going to pay in march and april through the spring, that wasn't covered by the ppp from a landlord standpoint, we

didn't get any ppp money as a landlord we're having to fight the fight every day. interest rates would help if the tide goes out and rates pop up, 100 or 200 basis points, i don't see survival >> are you able to cover your lenders? are you able to cover your interest payments at this point? >> oh, yeah. we're not heavily leveraged as all. one thing coming out of this last since 2008, it was in the old days of 120% type loans. lenders are sticky on 60% to 65% max ltv on loans you have a long way to go before we get triggered the big public routes, i can't seek to them the run of the mill shopping center owner is not heavily leveraged typically. the banks didn't allow that this time not that we didn't try >> one last question

airbnb today dwaif workers the option to work remotely until august of next year. and i wonder if the picture on apparel is going to change any time either. >> on apparel? oh, yeah we have stores like lululemon and things their sales are off the charts our high end retailers are doing extremely well the middle part of the gaps of the world like in dallas where i live, i mean, gap is closing every store in our market is what the real estate people are telling us except for one store for returns. apparel, the high end i think is going to do okay and the bottom. the middle rung, brook's brothers, that's a goner, all that but as we go through this fall, if we continue this conversation true and in 30 days when we get to september 1st rent payments you're going to see a huge falloff in restaurants landlords can't take it much

longer because of the additional risk we take >> ray, we appreciate it nice dose of clarity ray washburn on retail and restaurants. we mentioned earlier the chief of staff mentioned this morning some potential eos to help airlines. for that we turn to phil this morning. >> carl, look at the airline stocks you might have taken this news and said well, is this good news for airline investors? is it good news for the airlines i just talked with sara nelson who is the president of the association of flight attenda s attendants they will take the biggest hit when the job cuts come on october 1st. and they're not terribly crazy about the idea of the trump administration using an executive order in order to prevent airline layoffs. why not? because the idea is that perhaps the executive order would be requiring treasury to make some amount of money, say $25 billion

available to the airlines to borrow in order to pay employees and keep them on the payroll well, that's not a terribly appealing idea here. what the flight attendants would like and many of the airline unions would like is a clean cares act extension. an all new one that would prevent any cutoffs in jobs until the end of march so that's why you're not seeing much of a reaction here from the airline stocks the democrats, the republicans and the white house, they all agree they want to do something to help the flight attendants, the pilots, everybody. the question is can they do it in the cares act which would require a stimulus package an executive order may not be much of an incentive for the unions to be crazy about the idea >> interesting phil, thank you for that color appreciate it. when we come back, we're going to get a sense as to commodity demand around the world, mike henry will join us with that. - [narrator] at southern new hampshire university,

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the dpufl of mexico is bracing for impact from hurricane laura forcing some of the producers in that region to shut down. joining me now is mike henry, the ceo of bhp, one of the world's largest resource companies. we're going to talk business impact from the storm, co-vid and outlook from him on the global economic recovery underway by the way, mike, appreciate you joining us for what is your

first u.s. interview since you became ceo at the beginning of the year thank you for being with us? >> thanks for having me. >> let's start with the storm. it's front and center right now. no you have a couple of i believe neptune platforms in the gulf what's the plan there? >> we have operations in the gulf of mexico first focus in a situation like this is safety production is shut down. we've been focussed on getting people off the platform, everyone is safe at this point we'll ride out the storms and then get people remobilized and production back up and running and the barrels flowing. >> what's your expectation in terms of -- i mean, obviously it's weather it's hard to predict do you have an expectation given previous events as to how long it will take for you to get back up and running? >> currently looking toward the back end of this week, but it does depend on the path of the storms, how long you last for. this is unfortunately a regular -- a regular feature of

operating in the gulf of mexico. it's not unusual we're well practiced in it we'll keep an eye on the weather systems. >> all right let's take it from the weather to the global economy. obviously as one of the world's largest resource companies you have a view in terms of demand around the world china a very important market for you. is china coming back and the rest of the world lagging? >> so china has been well and truly coming back. we're seeing a solid v-shaped recovery we see that in the demand for our products but we see through for demand to our customer's products and it's looking solid. lots of momentum we look at the rest of the world and we're seeing a pick up starting to see a pick up in demand in some of the world's other economies. >> you're starting to see demand in some of the other world's economies. i think you previously said it was going to be not just even bumpy but perhaps things are going to be down year over year.

is that still your prediction? >> still the prediction. we're expecting there's going to be a sharp contraction in the global economy over this calendar year. we then expect there to be a sharp up tick again next year. we foresee it taking about a year for the world to get back to the levels of economic activity that exited preco-vid and maybe two or three years for the world to get back to the track it would have been on if not for covid-19 >> so two or three years before we get back to what we would have seen from 2019 to 2020 without co-vid >> i think we'll be back to 2019 levels within a year but to get back to the point that the global economy would have been at or would have grown to if not for co-vid, we expect it will take two or three years. >> and what about china? it is rebounding more of a v-shape.

is it going to lead in that way in terms of that recovery you're talking about so get back to where it might have been sooner than the rest of the world >> probably, yes so we see there being real momentum there the government has stepped in with some stimulus that we expect is going to create further momentum through to next calendar year. so things are looking pretty positive and pretty resilient there. >> mike, prior to the pandemic we spent a lot of time on our network starting to talk about the impact of esg. given the assets that were continuing to move into this overlay of strategy when it came to asset allocation. a company like yours would seemingly be in the cross hairs of some investors given how much stuff you're taking out of the ground what are you doing at this company since you took over to try to change its power, so to speak, that you could become more, perhaps, appealing to those who look for companies

that are doing well when it comes to the environment obviously social and governance an important issue here. >> this is front and center for bhp. and we are building on strong foundations. so we've shown real leadership in this space over time. now, specifically on the matter of climate change this is something that we have multiple decades of action and leadership around just in the past year alone we've announced a pretty major shift in the operations in chile, that's where we have a couple or a few big copper mines. we'll move to fully renewable power there. and we'll be taking further actions in australia i'll have an announcement around some new commitments in terms of reducing our operational mission, scope one pane two. we've said as a company we're targeting being net zero but we have to make that tangible i'll come out with a target for where we'll get to by 2030 on

path to the outcome. i'll announce tangible actions related to scope 3 emissions to enable -- the value chain and i'll also talk about an updated assessment of how bhp portfolio fares in align with the paris agreement. and overall, one of the things that i've been explaining to investors and other stake holders is that action on climate change is a good thing for bhp. at the end of the day, bhp depends on a growing world economy. that will be made more resilient through action on climate change and, in fact, bhp provides many of the products that are needed to help decarbonize the world. >> what are some of the -- when you say that, i mean, you're talking about a wholesale change

in the complexion of the company, obviously taking place over 30 years. nonetheless, mike, i mean, how do you transform a company like yours? it's not just as simple as shutting down coal operations, is it? >> it isn't. probably a couple of things to say on this. one, bhp is 135 years old. over that time, one of the things that we've done remarkably well as a company is reinvent ourselves on the back of the things playing around us. today bhp is one of the biggest providers of nickel. that's used in batteries for electric vehicles. we're one of the biggest world producers of copper which goes into supporting the electrify kags trend there's parts of bhp's portfolio which are resilient to long-term trends and other commodities, we think there's solid demand for some time and we're a great steward of the assets. we're committed to doing this better than anybody else, and

then over time we'll build up more options in the commodities the world is going to need more of in the future >> finally, mike, just back to the current pandemic, unfortunately, which continues around the world certainly here in the u.s how are you dealing with it when it comes to things like a mine, enforcing social distancing. has it had an impact on your aenlt to produce >> it could have had a much larger impact if not for the way our people have stepped up some of the measures we put in place are increased social distancing, of course, and that includes in the transport to and from the mine. we have strict hygiene policies in place we've taken steps to protect at risk workers and we've sought to protect our communities and support our suppliers in the bhp business. all of that coming together allowed us to record a strong year in our last financial year operationally. so production records, in fact, in a number of our operations, and we'll be seeking to continue those safe, reliable operations

this year. >> does it stay the same i mean after the pandemic, after there's a vaccine, do continue with the current work conditions >> the challenge is through to that point where there's a vaccine, making sure we do that and all signs are positive on that front right now but, of course, we want to take the learnings we've had through co-vid once we're through the pandemic, make sure we embed the earnings to accelerate on our improvement drive. >> appreciate you taking time with us. thank you. >> thank you very much >> mike henry, the ceo of bhp. back to you guys time now for our etf spotlight. looking at the ticker igv currently trading over 4 % higher salesforce is the top component with the 9% weighting.

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the listing prospect us, palantir says some companies throw people at the problem. others build dashboards. we build software platforms that become part of the institutions we serve the word customer appeared a whopping 836 times

the ceo minced no words in his opening letter saying that despite being founded in silicone velocialley, they don'y on advertising he knows the projects with national defense and intelligence agencies have been controversial while other companies that engage in what he believes to be invasion of privacy are common place they are moving their head quarters to denver and doing a direct listing meaning the price skroefr process will take place during the debut investors commended the top line growth, nearly 50% higher during the first six months esg is a headline risk palantir is issuing a class f stock to three founders, giving them a variable number of votes to control as much as 49.9999%

of the voting power even if they sell some of their holdings. just shy of that 50% control but they're also issuing class b shares which command ten votes per share for other venture backers. class a shares the general public can buy command one vote per share. >> that's a lot of nines >> six nines >> yeah. a lot of nines it's also going to be a lockup on a certain percentage of shares that's going to be an interesting part of this deal as well >> yeah. >> that's something we've seen with the two other prominent direct listings we've had so far. shopify and -- excuse me spotify and slack. i misspoke >> yes you're right the lockup aspect is interesting. i don't know if that's a reflection on palantir's concern

about too many insiders selling on day one or if they looked at previous iterations of direct listings and said we can do it better this time by locking up more insiders on day one to prevent them from selling. so far they don't disclose how many shares are subject to that lockup at this time. but it's certainly an interesting iteration for the direct listing model for something that's criticized as a key risk that too many insiders will offload the shares on day one and that could cause the stock to maybe not perform over the long run as they may have otherwise liked it to do so. i think it's interesting, especially as you read this investor letter, the letter at the top of the prospectus, it's surprising especially as you look at the performance of other technology companies as you look at the performance

of software companies, normally you'd go on a road show and market to investors and say we're doing what they're doing and look at the market multiple you've prescribed to them and they're doing the opposite >> it's going to be an interesting discussion when the issue happens how the valuation works. does it center around a software type model or a consulting type model which is obviously much different? great piece in the times looking at that. and also something i didn't realize. the name palantir is a nod to qualify the lord of the rings and the sphere objects use to see middle earth that's their pitch, we're going to allow you to see the world in its complexity in simpler ways >> not a lord of the rings fan, carl >> absolutely. i love it. i just was not aware of the world. >> no, i actually have not read the books, but no, it's an

interesting and very thoughtful title for or name of the company and kind of gets to this ethos of the founders and effectively what they set out with this company. >> let's get a news update with sue. >> good morning, carl. good morning, everybody. here's what's happening at this hour in wisconsin police and the fbi are investigating shootings overnight that killed two people and injured another. they happened during the third night of protests against the police shooting of jacob blake in new jersey gyms will be allowed to reopen next tuesday safety requirements include a 25% capacity limit, and the logging of names and phone numbers of workers and clients to assist in tracing efforts next year's big summit in davos has now been postponed the world economic forum says the major gathering of business and political leaders will happen early next summer

and flash floods have killed at least 72 people in afghanistan. rescuers are looking for survivors amidst the remains of 300 destroyed homes. you are up to date llee's the news update i' s you next hour "squawk on the street" is back in a minute. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. pampers the #1 pediatrician recommended brand, helps keep baby skin dry & healthy so every touch is as comforting as the first pampers. the #1 pediatrician recommended brand

we're all awaiting the chair's speech tomorrow at jackson hole steve caught up with us. let's get to steve >> good morning. yeah the jackson hole summit will take place virtually this year let me try to make it real yesterday. the host from kansas city, she was asked about the concern for a double dip recession >> i think that's an important risk to that outlook is thinking about what happens as we come into the fall, whether we see any resurgence in the virus that would cause additional pullback in the economy

so we'll monitor that carefully to see whether that plays out. what it requires of the fed in terms of adjustments to policy, i think we really have to wait and see. >> open to doing more if they need to. they are hometown to agricultural companies she's looking for how much damage remains after the virus passes >> i think even at the point we resolve the health issue affecting the economy today, what we can't yet know until the dust settles is what has been the impact of the economy longer term i think there's a lot yet for us to learn in terms of how we think about calibrating policy in the months ahead. >> george added she's not a fan as some have suggested about letting inflation run hot. that's something chair powell may talk about at 9:00 a.m we'll bring you live coverage of

the speak providing details about the long-term strategy including whether to move to an average inflation targeting regime and that's just a bit of what we have for you full coverage where we make the virtual summit real with interviews of phillip lane, the bank of ireland, now the ecb governing council, patrick harker from philadelphia and leslie i can't really see that screen you're looking at right now. >> i'm impressed you recited that since it's a busy week for you. we appreciate you bringing us the rare comments frommest ester george before we go to break, take a look at the top performers on the s&p. salesforce and hpe leading the way. stay witush pnc bank believes that if you can check on henry when you're miles from home... ...your bank should help you check on your account

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the dow is changing the stripes. our traders share which stocks should be included and the names to cut loose find out an trading nation more squawk on the street is coming up. so you're a small business,

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moderna and pfizer presenting data this morning there. the update included new information on older adults phase one vaccine trial. this is important. there have been questions about whether these will work as well for older people who don't always have as strong an immune response the data showed there's about 20 patients over the age of 56. they found that the immune response was similar in older participants as in the younger ones that we'd already seen, those ages 18 to 55. they say the vaccine appeared to be generally safe and well toll tra rated including in the older pop yuttle the stock already moving higher this morning on this update as investors in the vaccine space were closely listening to this and minutes ago the new data came out moderna is in the middle of enrolling the 30,000 phase three

trial. that's the one that gives us information on how well this vaccine works against covid-19 some promising early results in that older population that is so important because they're so vulnerable to severity of cc >> yeah, meg conceivably the first population that would receive a vaccine as you indicate although, again, it's 20 people. only ten of them really considered older i mean, very, very small when is moderna expected to actually complete enrollment of the 30,000 it's looking for for the phase three trial? >> that's a great question they provided an update on friday saying they'd enrolled more than 13,000 of the 30,000 they began it july 27th. it's not expected to be a linear pace of enrollment because they're bringing on more trial sites. it could pick up within the next few weeks to month we should see that trial getting fully enrolled, and then

it will depend on the places where the people are, how quickly we see the data. about how well this vaccine protects them. we should get updates from moderna every friday that's nice on learning how fast the trial enrolls. >> meg, quick, people asking this morning why would the cdc revise the guidelines on those getting tested but not expressing symptoms? >> yeah. there is a lot of concern about that that i'm seeing from experts in the field because we know that there's so much asymptomatic infection with covid-19 so people don't feel sick, but they can still be contagious some folks saying 40% of covid-19 infections are asymptomatic not clear exactly that most experts agree that is a good change in terms of testing guidelines and we've been hearing the pushback from an admiral overseeing testing for

the trump administration saying we need strategic testing called shotgun testing of everybody but there's a lot of disagreement about that in the health care community. >> meg, thank you for that nice summation of what moderna told us. as we watch the s&p hang an to modest gains powerful 5g experience for america. it's 5g ultra wideband, and it's already available in parts of select cities. like los angeles and in new york city. and it's rolling out in cities around the country. with massive capacity, it's like an eight lane highway compared to a two lane dirt road. 25x faster than today's 4g networks. in fact, it's the fastest 5g in the world. from the network more people rely on. this is 5g built right. only on verizon. come on in, we're open. ♪

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welcome back to "squawk on the street." a quiet start for markets today with the exception of a few big tech outperformers as you can see we're helping the s&p hold onto gains. we're at session highs new records. taking a look across the sectors behind me, we find that

utilities and real estate are among the laggards down about a percent interest rates have risen and some of the rotation out of more interest rate sensitive sectors among the only three negative for the month of august. keep an eye on you >> announcer: realtime exchange sector is sponsored by -

voters in key battleground states are starting to feel more optimistic about the u.s. economy. eamon javers explains in our latest states of play survey >> yeah, david, that's right we're starting to see a bump

here in president trump in terms of his approval rating all related to economy and covid take a look at the swing state views on the economy and job market what you see on the right hand side of this chart is a little tick-up late summer tick-up here 41% and 40% respectively in terms of optimism on the economy and jobs that is an encouraging sign if you're running for president of the united states in a re-election effort as for the president's handling of the economy, 51% approve, 49% disapprove whether the president is helping your own individual pocketbook, similar picture there, 51% approve, 49% disapprove. so the president is above water on those issues. but, on who would do a better job handling covid's economic impact, 49% say joe biden and the democrats, 51% say the trump and the republicans would do a better job there so, the president having an edge here across the board, carl, but

what we see when we look at the swing states themselves, joe biden still has an edge in each of the swing states that we're looking at, six different states, which could control the fate of this election. biden is ahead narrowly in all six of those at this point so the question is, can the president capture this little bump, maybe translate that through the convention and start to take a lead in some of those swing states as well back over to you >> that's a good curtain raiser for our next discussion. thank you. connecticut state treasurer is responsible for overseeing $60 billion in investments and joins us this morning. mr. treasurer, also good to talk to you good morning. >> good morning. great to be back with you. >> yeah. you heard eamon talk about that poll bump for the president. you got markets at all time highs. housing is on fire durable goods are coming in double the estimates is the case for further stimulus in congress starting to fray >> no, no. i don't believe the case is

starting to fray by any means. i think you know as well as anyone that the financial markets and the real economy are two very different things. and so when we look at the ups and downs of the stock market, we're not really seeing, you know, in my state we still have significant unemployment, we still have small businesses suffering. so very much so we need an additional stimulus to keep this going. and the markets themselves, even if we're going to talk about the financial markets, have relied so heavily on the federal stimulus that's already been provided and i believe it's baked into kind of future outlook in the market, continued support by the federal government and if that breaks down, i think we're going to see a corresponding breakdown in our financial markets again. >> how are legislatures and the public supposed to prioritize

between u.s. p.s. and enhanced unemployment, city aid, state aid, school aid, all of these pipelines of need? which comes first? >> well, i think it's a false choice we have to do multiple things simultaneously if we're going to -- we're in the midst of the a pandemic that is a health pandemic, which led us into an economic recession and we have to address multiple things at once and so, yes, financial package through congress, yes, we need to address the postal service. that impacts our health care, that impacts our economy, that impacts our upcoming election and democracy itself. >> and you've also been focussed on the issue of social justice and racial inequality in particular, writing recently an op ed in the hartford current,

state treasurer overseeing more than 60 billion, you're well aware of capital in america, we want to live and we need you to get off the sidelines. so what are you calling on corporate america to do? >> i'm calling on corporate america, you know, in my role i have a front seat to wall street and corporate america. and we're in the midst of a national reckoning once again around race. and corporate america holds a unique place in our society and position of influence. i'm calling on ceos to use that influence in a constructive way to impact both i call it the mirror and the window. looking inward on how to do things differently within their own organizations as well as how they can deploy the intellectual and financial resources towards addressing racial economic disparities in society importantly, i would note on that, there's a study by mckenzie consulting that says if

we close racial economic disparities by 2028, we could increase gross domestic product in this country by 4 to 6 percentage points. i think that's pretty compelling evidence that not only is this the right thing to do but if you're interested, like i am, in growing our economy and our country, we should all jump in and do it. >> and you've, on that front, you've dedicated more focus to allocating more funds to diverse managers what have you found in terms of why historically diverse managers haven't had the same kind of access to capital that nondiverse managers have had and do you believe that setting kind of a guide post for increasing exposure to diverse managers is the best way to kind of narrow that gap for access to capital? >> yeah. i think access to capital has been one of the major issues, whether it's in the investment money management area, or if you're a business owner trying

to access capital for diverse owners it's been a challenge. and i think we have a history of systemic and structural racism in our country that we have to contend with when i say that, i'm not focussed on the individualized acts of racism or prejudice, but it's how the systems have worked to disadvantage certain groups so, what we're doing here at the treasury in connecticut is saying, you know, when i look at investment opportunities, i want a diverse portfolio generally. types of asset classes, types of managers, sectors of the economy, that's how you build a strong robust portfolio that's built for all weather conditions, so to speak. with respect to managers of color and emerging managers, we have had a program in place that's had some success. what i'm doing is enhancing that, learning from the best practices across the country,

including our own experiences, increasing the amount of capital that's allocated, and looking at a greater range of investment opportunities. in doing so, i will increase the ability to maximize risk adjusted returns for connecticut beneficiaries. that's my goal as a fiduciary. >> always good to touch base with you, mr. treasurer. look forward to next time. appreciate it very much, shawn woond, the connecticut state treasurer joining us this morning. good morning it's 9:00 a.m. at headquarters in denver, colorado. 11:00 a.m. on wall street and "squawk alley" is live ♪