let's discuss this guys, good it is legal in pennsylvania, michigan is expected to go live morning and thank you for being with us. later this year or early next. i wanted to start with you and ask you about the stock splits the casino will be part of the offering there as well that will take effect on monday. it is more states past legislation, i think you will see more and more of that. clearly access has not been an issue for investors, they continue to surge higher you noted the last time that >> joe asher, it is great to see apple did a stock police they you. saw increased demand the states as they consider will that happen again on mobile gaming and sports monday it's hard to imagine it doesn't betting, those additional given the run they have had. revenues are something that could add to the state tax revenues as well >> i do think it will add to some increased demand. >> that was fantastic, thank you. it is 8:00 a.m. in palo alto we saw five times more stock "squawk alley" is live. trades on that day, and 7,000 more accounts place a trade. i don't consider that,

considering the increased volume, and to your point the incredible run up that both stocks have had. however, i think people forget that capital management is the >> this man as a sense of biggest thing that a retail investor has to do now this may make people in a situation where buying 100 devotion ♪ welcome to "squawk alley." shares, et cetera, is not such a the s&p trying to build on a six giant part of their account. day win streak already on pace for the best august since the late 1980s. we're hanging on to one point. >> tesla is up 16% this month, has that demand been baked in or pretty good numbers on consumer do you see further room to gain confidence we're waiting for the tesla and after monday also? >> i may punt a little on those apple splits effective on questions. i don't directly cover apple or monday >> my eye is on this divide tesla. i look at stock splits across a between enterprise on premise performance and enterprise cloud broad technology sectors usually it is non-events performance. we really see that reflected in i know they're trading events the results where that but they don't change fundamentals in my books so they

enterprise on premise market showed to be weaker. don't change the way i look at also in vm wear, but they also the stocks >> back to the s&p and what deirdre mentioned should be have a cloud story that we have seen play out to strongly this important to investors week with workday, sales force, amazon, alphabet, facebook, and with some others about 25%. at this point if you're buying so we're going to get more t the s&p are you betting on those detail and insight into that, five stocks? carl because if they have a broader move it will really affect you, we got you, de >> i'm all good, i'm all mic'd right? >> i think that is right the market is probably correctly figured out these winners. what happened in the last five up really the story just once to sixth mont months, we're deeo against, guys, the mega cap tech companies. those stocks powering th what it has caused these companies have all been averages higher again today. pretty natural winner pps fortunately or unfortunately alphabet, that all now stands at we have a surge in online usage. more than $7 trillion.

that accounts for 25% of the s&p and the move towards cloud as we market cap work from home, commuting from it has been creeping up all home, the idea of distributing year computing getting more engrained. they're just natural beneficiaries. they will get stronger and it is hard for that not to happy >> i would love to get your thoughts on kal ender effect ifs. calendar effects is it your base case going into next month >> you see days like today and we saw it earlier in the week where the s&ps are rallying, and the vix is rallying at the same time what happens after september we get very serious about the election with that i think that people have to strike a note of

caution. we have basically gone straight up this month. as you said the top since the late 80s, it is really incredible, the move that we have had i think people have to be prepared for something i don't think we will get smashed. for the bulls, i thought it was a positive case, off of chairman powell's case yesterday, you saw them start to participate. if they face every head wind there is, like a great boxer, that continues to get punched and get in there that is the one case that i think they continue to give us reasons to be optimistic >> that is a great point, but you probably have to see it last longer the financials lower today mark talking about some of the risks that jj flagged, what is the biggest risk to this

incredible rally in tech that we have seen? is it a vaccine? expanded testing u.s. china tensions? >> those all sound -- i think those are all correct. they may be increased regulatory scrutiny that fascinating event, that congressional hearing on big tech so we're waiting for the result to come out of that, but the recommendations of that committee is unlikely that it will be broken up. a google suit and the government is likely to sue google in the next 30 days in terms of the stocks themselves, these are covid winners. if we have clear progress toward a vaccine, then i think the stocks will do best with recovery name, i call them the vaccine stocks ride sharing names i liked for awhile online travel names. ones that have been punished and

smacked down they will be great recoveries, and the question is when will that happen? when do we feel like we're coming out of covid and your guess is as good as mine >> certainly we're all trying to put those pieces together. gentlemen, thank you >> thanks, deirdre now, let's talk about tiktok julia, caught up with the head of tiktok earlier today, good morning. >> good morning to you, previously tiktok's u.s. general manager is taking the helm after an abrupt departure. it is a threat and a shut down when i ask about what buyer would make the most sent, she praised oracle's strengths and here is what she said about walmart. >> walmart is certainly interesting.

we have been focused on rolling out e-commerce features. we have been providing that for the community. as a way to earn a livelihood if is something this week alone that we launched a live sh shoppable e-commerce link. >> the threat of a shut down and all of these deal talks have not impacted the growth of advertisers, users, or creators but they're also preparing in case the app is shut down. >> of course we want to be a responsible company and make sure that we are looking after our employees in any scenario, but we really do think we're going to have the positive resolution and hopefully that will come soon

>> she is telling me she doesn't fully agree, but they're committed to a safe and secure platform find more from the interview on cnbc.com >> i want to ask you something, victoria papas is not involved in the negotiations of whatever will happen at tiktok either it seems strange to me that the two top u.s. tiktok people that know something about streaming video, first kevin mayer, are not involved in these negotiations with players like microsoft and oracle that have not been good at online video. >> what i would say is that she is really an operator. she runs the day to day business of tiktok here in the u.s. i would say kevin mayer, and i think you're referring to my reporting from yesterday, i think he was not involved in the top level talks, they were led by the ceo of bite dance

he had an existing relationship with microsoft i think mayer was involved in the oracle conversations he has an existing relationship there. but not taking the leadership role so certainly you expect papas to be involved in some sense to see how the owners could impact the company but it seems like it is their show here. >> thank you very much, julia. it is quickly turning into a day of corporate announcements regarding layoffs. we heard from coca-cola and now m mgm. hey, carl, mgm sent separation letters to some

18,000 furloughed employees to the united states but they are extending health benefits through september 30th they're continuing to ramp up amenities and promperties and they want to offer some hope for a recall they promised that employees will retain their seniority if they're recalled before the end of the year. federal law requires them to be involved it has been six months since they were given that administrative separation. that is why you're seeing so many companies come forward with layoff announcements today, carl >> the stock up, we can see, and it points to the way that investors are responding to better operating leverage right now. >> that's right and improved cost efficiencies. what the casino companies are

finding out is when they cut workers and they're only bringing them back on as they need to they're managing their costs more aggressively than they did before the coronavirus lowtu closures mgm not the only one, the stock up 4.5%. wynn, caesars, all up between 3% and 5% today >> thank you, contessa, we'll watch that with your help. when we come back after the break, the 5g wave me'll talk to the cein o a mont pnc knows business keeps moving. and whether we connect over the phone, online, or face to face, we're here to help- utilizing our resources as one of the nation's largest banks and a local approach with a focus on customized insights. so you're ready for today.

welcome back, shears rising this morning some analysts remaining bullish on the company's growth in 5g. joining us now is matt murphy, good morning >> good morning, john. i'm interested in this on presence technology and the cloud technology spending. how do you see it playing out? we saw results from sales force and workday that really caught investors by surprise on the up side we also heard from you guys and others who have on presence technology that's there is some

reluctan reluctance >> i think if you look at our most recent results, our cloud results were very strong that includes 5g, cloud, and enterpri enterprise they all did very well on a year over year basis. it is really driven by the segment being mixed. we atranscript that to our companies being he is pant to put adjustments into the

equipment. we certainly like our prospects, but you're right the cloud business is doing extremely well with a mixed bag on enterprise next quarter >> i can see a scenario where it is and there is pent up demand when people get back to work or things are more ertain >> away from on presence that people have been talking about for awhile maybe some of that does not come back what makes you think it will >> we clearly believe that the cloud opportunity for us remains very large as large as our 5g opportunity on the enterprise, we see a significant opportunity there as well i think as you think about the enterprise going forward we call it the border less enterprise.

this work from home dynamic really changed the kind of applications that need to run. it changed the kind of semi-conductors that are required so we announced a whole suite of new products in our ethernet portfolio that for the next generation of equipment that will be available starting now and through next year, there is a significant upgrade cycle. so we have some other growth driver that's we feel strongly will be in our favor but certainly at a high level there is no doubt that the move to the cloud is real and i think it is a challenge for a lot of companies to navigate and we feel very bullish about it >> to john's point, the slers is

moving faster than we could have imagined why do you think that it will stick around and what kinds of industries are or businesses do you see going forward? >> sure, i think it will always continue to be a mix we have had our own trance formission thefo transformation with those, the challenge that we and a lot of companies face is this dynamic that has occurred we have engineers now around the world designing some of the most state of the art, complexion, semi-conductors from their homes.

we can collaborate online and to be productive. there is a host of new problems that come with that like security we enable a lot of features in that so this is not something that is going to go away and in fact, i think, what is going to be required for enterprise hardware and equipment will change significantly with the changes that are occurring with the work from home, work from anywhere dynamic. i think it is not necessarily a market that people normally think of as a growth market. we have been able to join and and some of it is our own unique product there. >> i know you got a significant

boost from 5g deployments. give me a sense of whether or not anywhere across the globe you think the pandemic slowed down the 5g rollout. as there been kind of, as areas like china have recovered, has there been an acceleration in 5g deployments and what do you see happening in other markets >> that is a great question. we have seen very strong growth in our 5g business our second quarter that we just announced was our fourth consecutive quart er of growth and looking out to our next quarter we guided that business to be up very strongly so if you look at it globally,

the only area that had it was south korea. china started to deploy as they have come out of the pandemic. they view this as a country as being very strategic and that is happening now, and we're benefitting from that giving our design position we see the gg opportunity in front of us and other companies, certainly in the united states, and i think you heard others talk about the delays. there is a catalyst coming, a launch of an iphone in the fall and we believe those types of devices will drive the need for networks to get built out. >> so that is a catalyst for you

too, potentially we'll watch that closely not just for what it does for the consumer matt murphy, ceo of marvell, thank you. later this our, an exclusive with vmware's patrick gelsinger. we're back in two. we allowed people to work from home, and before the pandemic, you know, we got up to about a quarter of our workforce. i would expect even mast the pandemic it could be 50% of the workforce. i think many of us have learned you can be quite productive working remotely turns out that is also pretty good for our business. in as alie as you are... don't settle for silver

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>> hello, everybody. i'm sue herera in washington thousands have gathered in front of the lincoln memorial to commemorate the 1963 march on washington and to demonstrate for social justice >> peaches have been called due to a salmonella outbreak the cdc says at least 78 people

have been sickened in 12 states and 23 hospitalized. >> a foster farms chicken processing plant has been shut down due to a covid-19 outbreak. 358 employees have tested positive and eight have died in india more than 77,000 new cases today. a new daily record india now has confirmed nearly 3.4 million cases and nearly half of that number occurred just a august. i will see you back here in an hour, john, over to you. as we go to break a look at the top stocks on the nasdaq 100 for the week workday at the top with a gain of 25% of course ul ta beauty, facebook, and starbucks. ♪ come on in, we're open.

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the new interim head of the company for tiktok says she expects a positive resolution soon the question is who walks away with this juggernaut welcome back, good to see you again. >> good to see you, good to be back >> the journal says that micro soft and walmart is the front runner at this stage do you have any reason to bet against that >> the sources that i have are saying that walmart and microsoft are the front runner there is a good question whether or not they are the right acquisition target it is a complicated transaction is to figure out how they will split it, but i think the only way that walmart, who is someone that i understand truly truly wants it can get access to it. >> we're all trying to read into

the calculus that walmart is churning through what is in it for walmart that we might not understand quite yet? >> the truth of the matter is almost any technology company or commerce company in the united states would benefit from an asset such as tiktok it has 800 users globally. 60% of the user base is in that highly sought after demographic. it is a very, very valuable user base a unique social element that has been hard for the u.s. based companies to replicate for walmart in particular, there is an opportunity for e commerce to get intersected frer everyone from facebook to google to twitch are trying to find a way to get part of social and walmart wants a part of that >> i want to pick up on

something that john mentioned earlier. i found it so interesting that when vanessa papas came on cnbc earlier today she said a few times that she was not involved in deal conversations. this is also the reason that kevin mayer left it raises a few questions to me. one is how involved can the american leadership really be if it is not even involved in deciding the company's future. and by the way american leadership that it is not totally chinese controls, and two do you think that the bi bitedance founder will really give it up >> it is really important to recognize the fact that this is a progrebroader conversation tht is happening between one company

and some acquirers this has been happening since china, at the technology level were for now over a decade google, facebook, tumbler. they have all been banned in china for awhile so they're trying to figure out the right way to respond so what you're seeing is that this is not simply a conversation between a ceo and potential inquirer it is a conversation that is a little more broad. >> convince me if you can that this is an aol and time warner all over again it reminds me of big picture, big promise ideas of how to take an online user base and translate it into customers in this other realm and it rarely works. i don't remember myspace giving a huge boost to fox or tumbler

reversing yahoo fortunes so why is this two companies that have not been very good at social or video pouring money into something they don't know how to run >> you ask a great question. i think what is very important to note is we're in a very different stage of the internet today. if you look at what happened with china, they did a partnership with alibaba and they had about $29 million of sales on bitedance's equivalent in china in one day into that shows that social shopping on the mobile device is a phenomenon that has a real audience today the second thing important to note is that microsoft has a proven history of being able to buy assets and leave them alone. so they bought linkdin

and jeff did a wonderful job microsoft got minecraft. not a well known thing about microsoft is they run one of the biggest gaming sites for teens and younger people, and then they have the xbox platform. they really have a portfolio of assets that are much different the final thing i would note is that walmart has probably the world's most interesting customer data for english speakers the fact that they have that and they can integrate that into the tiktok platform could be big for this point in time they thought it was $10 billion on social commerce that could be on instagram alone by 2021 that might feel like a low prediction, and so the social shopping opportunity is really enormous today >> fascinating i remember that call on facebook earlier in the week. fascinating, too, that it is all

chasing technology built by someone from china but will continue to watch thank you so much, see you next time >> we are joined after this break, don't go away 'rba iju t mutwee ckn stwoines

high demand as work from home continues patt, good morning >> good morning, john. as always great to be with you >> great to see you and i have to give you credit i don't remember your exact quote, but months ago you said that tech was going to do better than companies in general. there is a dislocation that i have been talking about between what we see in on premise

spending and cloud spending. give us your fame on why that is happening. people that had cloud projects under way just accelerated it. it was about getting things done, and it was an acceleration of cloud, but we do take a balanced view of that and we expect some recovery as we continue through the recovery and the under lying conditions of on premise environments, and the governance and privacy issues we see it as a balance for the long term, but clearly in this near term environment this is

where it has been. >> how much of it comes back though there are some cloud players saying there will be a fundamental secular shift, and it would be a convenient time for that to accelerate >> some of those cloud players have been making those arguments forever. we have always taken a balanced view and we have seen very large brands now seeing large economic benefits of a hybrid and on premise world. they are sustainable prea prpre an pre and post covid some of the strength that we have seen in public sector, these are on premise spends. as we look in our own pipeline, i just count the numbers we definitely have a good data set to reenvors the view that

there will be recovery in the next couple of quarters. >> tell me about those shifts. you mentioned carr bon blacbon . zoom, and your ability to move this from a company that was getting smaller enterprise wins into getting larger wins how have you been able to do that how has your sales motion changed in a pandemic? >>. >> it is learning new materials. they all join as well. they have more access in some

respects but we're proving that our virtual engagement and doing virtual pocs, prove of concepts with customers becoming effective as well. ultimately the driver is digital transformation and it is more important than ever in fact, jon, i had a conversation with a cio, customer of vmware, he got a standing ovation from the board of directors for how well they have been able to respond. technology is more important and that left to the conversation. it is more important than ever >>. >> we ran a soundbite earlier saying the remote work environments that turned out to

be good for productivity he visited the headquarters and he said it was like disney land for adults how do you think about the remote work going forward? >> we were less than 20% remote workers. but i believe our new normal is 60%. a tripling of our workforce. we also said that we don't expect that we are going back ever in fact we have begun the new normal today where we are mostly a distributed workforce. we're going to focus on hotels for officers to become collaboration centers. when we look, our productivity

of new software development is as good or better than ever. supporting of customers, great metrics and great success, and on a good quarter our ability to sell and continue to transact businesses doing good as well. as i talked with cios across the industry, almost every one has said my efficiency has been as good or better the crisis caused us to fundamentally shift and we don't think we're going to go back >> tell me about capital investment in the workforce. are you structuring incentives for workers differently. are you deploying for different technology doing other things that you didn't do in the past to enable

this new workstyle that you expect to be term nant -- permanent >> that's right, we're figuring that out some of us are spending less on buildings but giving them more per diem's paying for broadband, also pay differentials. we have pandemic leave we have new flexibilities for them to be able to work from home and how we're supporting them for teach from home, as i call it the ugly combination of homes becoming we work officers and kindercares. how do they make it work in their family environments. dealing with time zones, enabling people to people to relocate for more family and closer to some of their familiar needs as well all of those adjustments and we believe this is part of what the

workforce of the future is and technology plays a critical underlayment to allow the workforce to be more effective tf is really an excited time >> how to make this school at home while also working thing work welcome certainly come back and tell us. i need to know and i know a lot of viewers do too. always great to see you. the stock up better than 2%. 2.4% carl >> all right, jon. when we come back the district of columbia suing instacart for whatdeceptive fees the dow is up 90 traded goods.

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district of columbia attorney general is suing ins instacart claiming they have been charging millions in deceptive fees attorney general joins us now. good morning to you. i know this suit is focusing on a policy, a tip l policy that ended in 2018. this year, alone, instacart hired hundreds of thousands of more shoppers and a recent lc.a times report they are judged by harsh metrics including the number of seconds it takes them to pick a product. there's no doubt that door dash, post meates are essential and ae getting a lot of business neez

days d.c. consumers are reasonable. they view service fees as tips. unfortunately, door dash, excuse me, instacart put those service fees in the category of regular revenue and did not give those moneys to the drivers and we think they misled consumers on that point the sec part of our lawsuit is looking for taxes that should have been paid gig economies are subject to the same rules as old companies, brick and mortar they got to pay their taxes. with respect to the workers rights issues, those are concerns the state attorney generals are focused on. i do not have an investigation

right now going on with respect to insta cart but i'm aware that other attorneys general are concerned about the way gig economy workers are treated. >> we have spoken to some of them such as california's ag you have brought lawsuits against door dash in the past. uber for its data breach now instacart. these companies are able to raise so much money that in many cases the fines or penalties that they pay amount to very little in the grand scheme of things for them. do you need broader legislation or regulation for these companies to really hold them accountable? >> you make a good point about their ability to go to the market, but it the private market or the public market to raise moneys they also need to just follow the rules. i think that's why our lawsuit and other lawsuits like ours are incredibly important we're not going to let them go for 18, 20 months period of misleading consumers and not

giving money to the workers as they promised. i think with respect to legislation, it's important for regular larts to ke regular la regulators to keep an eye on the companies. >> do you think gig economy workers need to be treated as employees across the board >> i follow you and i followed you for years. i think the debate is really fascinating. i also read with great interest the what was written by the krerceo of uber.

i think you're seeing the debates now being formed and i'm hopeful that we'll be able to reach a resolution that is fair to gig economy workers and fair to these innovative companies. >> attorney general, does that mean you're still deciding whether or not they should be gig economy workers treated as full employees number of other ags are looking at the legislation and have put it in place. what is your stan right noce riw sounds like you're still considering. >> you're putting the pressure on me, which i appreciate. i think the california law that the attorney general there is reviewing as well as the massachusetts law is different from the d.c. law. i've got to look at it with respect to what the d.c. law is and i can assure you that our office is doing that >> okay.

thank you for explaining those intricacies. thanks for being us this morning. >> thank you so much >> pretty remarkable week that we're starting to put to bed with all different dynamics involving the fed. all time highs social justice in sports tiktok, hurricane laura. next week will be interesting too. we got a lot of eco data to chew on >> adobe, especially i can't let the entire show pass by without noting roku, which is up more than 7.5% just this morning. that is a stock that's been popular and is had quite a run and continues to run this morning. >> after a bit of a breather yesterday, we are just seeing tech power ahead

i mentioned workday at the beginning of the show. that's up 12.5% right now. financials have turned positive but it's really the megacaps leading the way again, carl. >> the leaders of the dow and the s&p are the two companies that have announced work force reductions today let's get to the nominee a, ma half thank you very much. welcome to "the halftime report." a record breaking week for the bulls. the s&p 500 and nasdaq hitting new highs and the dow wiping out its losses for all of 2020 technology still dominating this rally right now. how much more can this mark keep going higher and how can technology play into it? our investment committee today is jim, steve