good morning, everybody. welcome. joe and andrew are off today the dow gained 216 points. the s&p 500 and nasdaq both logging record highs now the 21st time we've seen a record close and 41st time this year we've seen a record close for the nasdaq if you are watching u.s. equity futures this morning, a lot of

green the dow is opened this morning. on the percentage points, nasdaq ended up open by 1.4% versus gains of three quarters of a percent. take a look at treasury yields that are lower than they were yesterday. the 10-year indicated at 0.688% after beg 0.72% yesterday. one reason we are seeing stocks tlink this morning is this nancy pelosi and secretary mnuchin appear to be making an effort according to reports, the two leaders spoke by phone about half an hour doesn't seem they made a lot of progress but it did come after

mnuchin's testimony where he said parts of the economy still needs a lot of support at least the two are talking and that will ramp up futures. >> continuing on in europe as well not so much asia which is flat trump administration announced a nationwide eviction moratorium a warning a flood of evictions were coming. the move applies to individuals with $99,000 or less or couples who make $98,000 or less they have to show that they cannot make the payment because of an impact of the pandemic >> the cdc getting involved at a level. showing you how congress can do

this without signing off both don't want to see evictions move forward at this point this is something the two sides would agree on it is interesting to see the cdc as the agency actually responsible for this go ahead >> the government shut down the economy, people could debate the level of which they should have done that. if government is forcing people out of jobs then they better make sure they don't force people out of their homes. >> the other side of that is the protection on mortgage forbearance. you have that added difference so homeowners would face the problems on the economic impact, you

would start to see evictions being terrible one way or another starting to patch things over. the market jumping because of the hope of other more meaningful discussion taking place. a lot to do to get that over the line as we approach the election but any kind of positive run, even a small deal, the markets are celebrating that this morning. >> at least they are talking deal talks for tiktok u.s. operations hit a bit of a snag or an entire road block because of the crack down of tech export rules showing the issue is that the app's coral e algorythm.

this is another situation where president trump has been ramping up his talks about how dead set he is on his side of things and the chinese government ramping up its side too. i think this may be more than just a snag. >> i remember discussing this a few weeks ago. even aside from the snags that rise from this between the u.s. and chinese government, you have a question of why bytedance would only want to take $20 to $30 billion if the buyer or someone else could use it to expand to other areas. if that's the case and true value can come from this, then

$20 to $30 billion doesn't seem like a fair price. if tiktok is worth $100 billion or so. it is a tough one. you could see microsoft would be interested if they didn't get back from that and you see bytedance would be better off notselling it as painful as it would be to see the u.s. part shut down. you think about it either way. >> the other part is that it is invaluable there is something in the ai that china may be afraid could get out there in u.s. hands or they don't want u.s. companies to have that kind of technology as well. people may be wondering why we are spending so much time talking about a short app. their power is not in the dancing, the cats and the combination of the two it is in the ai powered

algorithm that says, if you liked this, you may like that. that power given to the chinese government >> we'll continue to watch that story. it seems like in the beginning, everybody thought this would be a big give away and microsoft would end up stealing the value. that's why oracle jumped in and others were interested in this it is not going to be as easy as it looked a month ago. >> i thought about the power of microsoft and tiktok we've probably all had zoom or video flubs. alex and his son walking into shot the other way how cute, by the way microsoft owns teams taking all the content

people walking out naked throw those into tiktok, they'll have content for generations it is the perfect content creator. our own mistakes >> and skype as well a good side conversation i don't know who owns all of that >> any platform is going to -- any platform is going to likely own the content. we think it is ours but i guarantee you it is not. yesterday, i was wondering where skype went and some sharp viewers reminded me that it is skype technology rolled into teams on the back end. speaking of video, yesterday was a big day for zoom and its investors. the company's stock soared 41%

on that blowout quarter. remember zoom was worth $16 billion last year. now morning the most valuable american companies with a market cap larger than ibm. zoom yesterday added as much value as ebay is worth they added an ebay or chipolte yesterday. top that >> i can't top how much in terms it added but the other comparison i love is versus the major u.s. airlines. if you think of zoom as an alternative to business travel long term i think it is close to all of those again, whether you are saying zoom is a competitor to mobil

phone companies and airlines for business travel. either way, it has surpassed so many of them just the ability to ramp things up to monitor and run all of this these companies don't have the type of capital expenditures the reason technology stocks outperform all the time. it doesn't take the same amount of cap ex-to keep those going like airlines or other traditional big stocks >> are we all going to zoom as much when we go back to work and we will. there will be a day. we are all working >> you mean physically when we

are back in the office >> yes i will happily go back to the office people want to be back i wonder how long can that truly last there will be a zoom fatigue watching people struggle with it i believe there will be a peak of video conferences about half way through, your eyes start to hurt it is not that easy why i staring at a phone four hours a day. >> i'm a big fan of the regular phone call i always decline the video option it is a bit road do that for a first-time meeting but after that, i go to phone calls. the thing that stood out from the interview yesterday was the point to say that they don't think it will be a winner takes all market necessarily going

forward. it is fair to say some people say this will be win or takes all even when travel goes back and those values don't work and zoom as thrust its self-into the mix even with the teslas of the world. throughout the day on cnbc, we are watching the rise in price on things we use every day talking about instant coffee prices jumped 8.4% from the same period last year on deck, the debt threat something we all need at this hour, for sure why some economists argue

deficits do not matter right now. as we head to break, get your coffee shoe carnival. shares falling after reporting same-store sales stock hz jumped by about 30% since august 31. we'll be right back. anything your wild child does pampers cruisers 360° fit can too with a stretchy waistband and adaptive 360° fit so they can move the way they were born to [music]: born to be wild pampers cruisers 360° fit t-mobile's new offer on iphone 11 pro is even better on our most powerful signal. switch and get two new lines of unlimited for only $90

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later on today, issuing a comprisedout look for 2020 to 2030 saying right now, deficits may not matter former director and ceo. and director for the committee for a responsible budget something historic might happen which is the federal budget deficit will exceed the size of the economy and will trump that of what it was in world war ii will it matter many other countries are as close to debt in their gdp do deficits and debts matter now and for the next couple of years? >> no questions deficit and debt

do matter. you need to have a strong fiscal situation so you can borrow during emergencies and we are certainly in one there are a lot of countries worse than us. we have a lot of demand for our own debt it means the whole global economy are a wash for that. there still seems to be plenty of room for borrowing. the vulnerabilites it increases in our economy coming up debt is this increasing risk for our economy, we'll be vulnerable for rate and currency. you want to have a healthy balance sheet. we kept borrowing during boom time we kept this in a tenable solution that would demonstrate that is

now much worse >> not just that, pandemic and lockdowns will change a lot of things they've changed a lot of lives already in many, many ways i'm old enough to scream about the $938 billion stimulus under obama that seems quaint. mou we are spending $2 and $3 trillion in multiple pops. how does this change the way we think about spending >> you and i both gotten old i remember when people were yelling at me about a $400 billion deficit. now no one blinks. i think there will be a

reckoning. not this year and not next any country has as a minimum the requirement that it is capable the u.s. has not done that in the 21st century future lawmakers will have to get us to some stability and they don't have any discretion to go after voters in the future that wasn't baked in the cake. that will be a tough moment for them. >> that will be the reality that debt does matter >> you look at the bill that will be paid they are footing the bills but won't have to write the checks it is us and our kids and our kids' kids that will pay for it. i'm not advocating for higher taxes. joe biden's plan is for higher

taxes on the upper income. middle class taxes, i hate saying this, are at all-time record lows on a federal basis effective after deductions do you see anyway out of this besides higher taxes on everybody. maybe an added sales tax how do we pay for this >> no question the political promise of what people will do and won't do just aren't true. the fis kol hole we face is huge there is an aging of the population there will be incredibly new and expensive threats coming our way. the government will have to get the situation in order and that will have to take all the policies none of us like higher taxes getting rid of existing tax breaks and lower spending. we have to address huge entitlement programs and cap

spending they don't want to lead on issues they want to focus on good politics, which is giving away with free things and economics they want to focus on key economics. getting things under control so we can have a true economy we've been delaying them for years. the smaller changes we can make once the economy is stronger will be overall for the long run. it is important we do do that. >> does the u.s. have the ability to handle big debts emerging around the world. how important is it that the

dollar maintains >> is the current fall we've seen a big risk? >> that is a really important point. the u.s. is relatively able to incur large debt when things get bad, it flows in we are the best looking horse in the global glue factory. it gives us additional rope. it has done nothing but really take advantage of. it is a real risk to not pay attention and be callous in that use. you need to have some sensible plans on both sides of the

budget broaden the tax base without slowing the economy down and get serious about spending programs. it is important to do the things necessary to support the economy. there is no question about that. every dollar spent on that will be well spent. that doesn't mean you spend willy-nilly. that will come with consequences in the future. those are things people need to take seriously >> to sum this us, does all of this mean inflation is much more likely or put another way would be more welcome than it does at any point. that could be said in 2008, 2009 and would never materialize. >> excessive inflation will come with huge risk and a lot of pain i think the bottom line is this, three things we have to focus first on the

health care situation, the pandemic, second getting the economy strong again, we have to turn our attention to fiscal attention. we have to stabilize all of the economic factors and inflation under control and helping our currency to have a found balance sheet. political reasons and fear of hard choses, we have to be committed to a third step to accommodate it down the road as we've started in the recovery. that will take a lot of political will >> and for doom savers and made $50,000 a year investment income now making $6,800 a year it pays to buy stocks. thank you for joining us i have a feeling this debate is not over just a hunch and looking at some

pandemic-related movers. and macy's set to report around 7:00 a.m. eastern time we'll be right back. at massmutual, we know that traditions matter more if they're celebrated with the ones you love. that's why we're proud to partner

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time now for executive edge. a look at three pandemic-related stocks shares of amc rising sharply after the company said it would reopen about 140 more theaters bringing the openings to about 70% including the first in california since march allowing customers to see "tenant" which makes its debut in the u.s. this weekend stocks are up there. roche announcing it will launch the new rapid covid-19 test this month. the anti-again test will be used for asymptomatic and symptomatic patients and the company says it typically yields a response in 15 minutes and is accurate more than 96% of the time i want to know when p it is

available in the united states >> that's the key to everything. rapid testing. if you think you've been exposed, rapid testing show your teachers, schools, work place get tested every day, if you have to, i guess >> it is a cheap test. a very affordable test something like that could be a complete game changer. >> and that's probably the way we'll go pernod ricard the maker of absolu absolute vodka sales fell with the shut down of bars, events and airport liquor sales during the pandemic, which you might have heard about the charge largely due to

absolute which relies heavily on duty-free sales at airports. you knew corporate sales were down i did not know until looking at their numbers and reading the stories that so much was sold at duty-free shops. >> so much varies brand to brand. the winners actually have liquor within it. people pivot to that at home and that beer sells were suffering even if structure sales were suffering. i don't know if absolutely more sales in airports than super markets, then that must explain it all right when we come back -- we'll talk stock splits. >> i think of great george

kestanza, what is duty >> i think you are quoting the great joe kernen i was taking a walk yesterday. somebody had put their recycling out and there was bottles and bottles of empty liquor. i thought i hope that was a couple of years. >> recycle shaming a new term it was only two weeks. i apologize for leaving it so close to your house. >> all right, guys when we come back. we'll talk stock split apple and tesla surging since their split.

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good morning, u.s. futures at this hour pointing higher by 186 points about 0.6, 0.7%. nasdaq leads a charge up 147

over over 1% of gains for the nasdaq an update on the pandemic. new york city has delayed the start of in person learning after a deal with the teachers union to avoid a strike moving the start date to september 21st a panel of experts says there is not enough data to show the convalescent plasma works on the coronavirus. australia's gdp fell at a record pace shrinking 7% versus the previous quarter worse than had been predicted. we are focusing on stock splits companies doing it and companies that may consider doing it and may get a deal when they do.

joining us for that right now, the ceo and portfolio of profit investment management. is profit really your last name? that was your given last name? >> good morning, becky yes, it is early in my career, i used to take my birth certificate to clients. >> i have to say, you are in the right business, my friend. eugene, let's talk about stock splits it has been phenomenal seeing what is happening with apple shares, tesla splits in theory, you are not getting anymore, you are just getting a split amount are investors getting a bargain? >> well, becky as common knowledge, it is really a mathematical exercise. there is no dirj between owning

1,000 shares to 10,000 shares. investors have taken a different approach stocks are performed a little better going all the way back almost 25 years when berkshire hathaway has never split, as you know warren buffett is not a proponent of stock splits, he created berkshire b shares because retailers wanted to participate in a stock that was worth over $200,000 a share. it is a bit surprising to see with tesla and apple as a result of how much they went up it causes me to take a step back and look at companies that might benefit and retail investors that know the companies. the stock prices might be too

high it is important but still investors like to have more shares than not. looking at this market where a lot of companies have done very well exceeding $500 a share, it might be an opportunity to look at the corporate board and create more demand for something as simple as a stock split >> is that because there are so many more individual investors i was looking at numbers that showed the amount of trading taking place is much heavier than the amount it had been in the past the bigger brokerage is fine >> i think it is a leading on what is going on in the options market more are in options than historically been. we are playing a little catch up with respect to the number of people actually demanding shares

in the market. there is a little mathematical reason but overall, you end up with the same dollar amount that would go up before stocks occur. >> let's talk about names that might benefit from this and amazon is at the top of the list >> it is amazon is doing very well. almost everyone is using the company. it has split a couple of times but been a long-time split looking at companies $500 a share, they could easily do "10

to 1 or 7 to 1 stock split amazon is not as expensive as tesla, more expensive than apple. they are right in between. they could probably be a good candidate for a split coming in the next 6 to 12 months. >> one thing, jeff bezos has always been clear. he told investors don't come if you what nt to turn a profit immediately. this is a companies that going to grow over a period of time and he's done that to choose the stock owners that buy into his company and be choosey with it if you split that stock 10 to 1, you'll get a lot of retail investors that are trading out of turn. i think over long term, i understand, it would bring in new buyers, it might bring in buyers that bezos may not

necessarily want >> you ma i be correct i think a lot of the trading investors are trading a lot more on options and going back to the berkshirage way story. buffett had the same attitude about long-term holders. when he did create the berkshire b shares, they did not see a lot of investors trading a lot of those shares while you are right, there is potential for more people to think about retail coming in would create more retail volatility it doesn't lead to more investors going in and out every day. they have more investors that probably want to own stock because they use am zob every day and they understand it so

why not own a piece of it. >> i know you have the same feeling about netflix, which you think would be ripe for another split. thank you for joining us i love your name, eugene profit. >> my pleasure thank you, becky coming up, more drama around social media and the election. facebook and twitter removing russia-backed accounts targeting votersied. more ahead just how bad will macy's quarter be or will it surprise to the upside we'll speak to the state of retail and where it goes from here going out, you can watch us live or anywhere on the go on the cnbc app today sun is cinomg up it is a new day. we are back after this

welcome back and good morning. it looks like this rally could roll on today. mnuchin and pelosi had a phone call yesterday talking about maybe getting progress on the next round of stimulus dow futures up 205 nasdaq futures with an implied open of 150 points the market rally will roll on today. in the meantime, dating app bumble looking to a public debut that could come early next year

for the dating app still to come, one of the country's best quarter retailers. see how the department store has handle the the pandemic shut down first, we'll handle election risk and social media. right now, the worst place to be is stuck in-between.

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facebook and targeting left leaning voters. good morning to you both joanna, ail start with you how significant and surprising is this latest develop 18 accounts. is that something to be shocked by or is that par for the course in 2020? >> this is something that intelligence agencies that have been warning us for months and months so, the 18 is probably the tip of the iceberg i think what we're seeing here is the social media platforms are truly ill prepared for this election they are still fighting the last

war from 2016. so they were able to identify the russian bad actors and they said they were able to identify them early but at the same time, you know, all of the bad actors are getting much more sophisticated and it's not just the russian, other countries are interfering. even more damaging, perhaps, could be home grown conspiracy theorist, they are ill prepared to handle the threats coming into the election. they don't even know how to hand tell president of the united states when he spreads conspiracy theories or falsehoods >> that said, joanna, whose fault is that? we've had four years with everyone being aware of the potential risks and no new legislation or regulations to make it clear to the likes of twitter and facebook exactly when they should or shouldn't act and that's led to all sorts of problems as we well know over the last year about being

criticized if they do act to take something down. >> it's a great point. this is not on the head of one individual, one company. we need a concerted effort as a country which we've not had with a divided congress we've not been able to get there. with the companies, you know, the issue we have with the media, social media platforms is they aren't designed by design they spread disinformation because the algorithms will surface information that will be the most viral and we know, m.i.t. media lab had done found on twitter false news stories will spread ten to 20 times faster than actual true news stories. so the falsehoods are getting out there much more quickly and the algorithms are surfacing them

at the same time other research found the emotion that spreads fastest is anger so these trolls and the misinformation is custom built to take advantage of the business model of facebook and twitter and the others >> and do we have any idea or analysis this time around as to which side, republicans or democrats, conservatives or liberals are using social media more effectively is it fairly balanced in the way perhaps in 2016 whether we're talking brexit or presidential election the winning sides for each of those probably handled their social media better? >> we've seen that kind of sway back and forth through presidential elections no doubt trump, you know, absolutely won social media. that's how he got the election his campaign has actually continued that push and are still in a lot of ways much more sophisticated in exploiting whether it's facebook or twitter

or other digital avenues they also sort of bought the splash page of youtube when the dnc convention was going it was very, very targeted, very specific, very savvy they are definitely winning. i think at the same time,th not about facebook seeking out these russian trolls because the way they frame that, we got a lot better at it we found these guys before they prol pro proliferated too quickly like in 2016 it's home grown terrorists as well qanon has this great audience on facebook and other and what are you doing about them and how is facebook -- it's still not clear. they've and the down a bunch of pages but you gate sense there's a lot more it's the type of the iceberg there. you're sort of -- you're solving one problem but, you know, the deeper systemic issue just sort

of is every where else at the same time. >> you know, joy, your point is well taken moral outrage is what sells on the web. you got to fix that at some point down the line. let me ask you this. if a restaurant continues to fail its health inspections the government will shut it down let me go extreme. is there any situation you can see where maybe we need to take a social media pause for a week or two ahead of an election? i'm not sure how that would look not a choice i'm being obviously extreme on the one side but i'm just wondering if you can't handle your business and we're talk about incredibly crucial events, should they be allowed to operate in certain ways? >> that's a really interesting proposition there. you know there's a growing movement of people who believe that big companies should be broken up. facebook should be broken up at the same time there are some

intermediate steps twitter announced yesterday they were going to add context -- >> we might have lost her. >> i'll go to you on the same question, ed you know what i'm saying i'm not advocating for them. if you can't handle your business, you know, if you're doing something that continually causes problems whatever side you're on the government may and i'm not in favor of government shutting anybody down but at the same time you got to be able to operate safely and do you wonder if maybe as a nation -- there's certain rules on political advertising on a lot of things why not take a pause, maybe? >> fda has rules on what's in cans and what you can sell, what can't sell, freshness dates that kind of thing. you're talking about the health of society, yes, that is one way to think about it. one way to approach it i want to suggest it in another way. we saw what happened in australia. right? their government is now looking

to pass a bill that would force facebook and google to pay publishers for having their content on their sites now there's a whole lot of things going on there but that's another example of, whether it's that or what's happening in the eu or antitrust push here in the u.s. this is the government basically saying hey social media you're way too powerful, we need to have a say in how you operate. now, whether it's what you're suggesting, or what australia is suggesting, what they are looking for is more lever as to how they control what happens on social media of course, you know, facebook and others, no, you can't do that you need to give us the room to police ourselves there's still a wide path. but, yes, more will be happening from governments this is a matter what shape that takes. >> guys, thanks so much for joining us have a great morning >> sure. >> when we come back, macy's just reporting a smaller than

expected loss. that stock is higher we'll dig through the report next actually the stock just turned 'lbe by two cents. wel right back. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow.

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a strong start to september. the futures pointing to a higher open yet again the latest on what's moving in the pre-market is straight ahead. future of learning while schools struggle to re-open investors have profitted we have that story and an interview with the he head of the american federation of teachers a new poll showing a shift in where the jobs will be as we work through the pandemic. pollster joins us with the results. second hour of "squawk box" begins right now. good morning welcome back to box here on cnbc i'm wilfred frost with becky quick. joe and an drew are off. futures are pointing higher.

all three indices did ramp up into the close yesterday should point out the vix also ramped up into the close something to keep an eye on overnight. asia was mixed and europe particularly strong. europe missed out on gains yesterday making up for it today. up 290 points on the dow 139 for the nasdaq 25 for the s&p that equates to about three quarters of a point for the s&p and 1% for the nasdaq. >> let's take a look at macy's earnings a stock we were watching originally quarterly results just out of and it did come in with an adjusted loss of 81 cent as share compared to the consensus estimate of $1.77 a share. revenue number was better than expected digital sales were up by 53%

yeah the stock is back up 5%. jumped initially dropped back down and now back up the company just said things were much better in all of its different brands macys, bloomingdales and blue mercury as sales recovery came back starting a business was the top priority successfully accomplished that then went on the say they are doing well with their digital business as well we mentioned that gain of better than 50% in the digital sales. they put significant emphasis on health and safety standards and allowed customers and colleagues to feel safe the company is not giving any guidance for 2020. it's withdrawn its guidance for the rest of the quarter. it's a similar story we've heard from other companies the big question is when that company can return to a profit better than expected but still losing 77 cents a share. former macy ceo terry lundgren will be joining us in the next

hour >> couple of pieces there. macy got some bad inventory out. 30% of their inventory said bye-bye. get rid of cheap clothes raised their gross margins a bit. most of retail may be facing hard time but there's one economic bright spot out there that's manufacturing two of america's biggest manufacturers caterpillar and john deer ha john deere is outperforming. steve liesman has more >> reporter: good morning, brian. the manufacturing sector one of the parts of the economy undergoing a v-shaped recovery and both in the u.s. and its global yesterday's smism hit the highe in two years a good sign for future customer inventory is seeing this too low they have to rebuild them joel naroff writes the

manufacturing sector is picking up some serious steam and could start pushing housing for the number one driver of growth. barclays report gains in its manufacturing confidence showed gains in europe, asia and americas, all turning around barclays says for now pen up demand supports the manufacturing activity however it's too early to die couldn't supply chain risk and covid-19 resurgence. it's not without its challenges like everything else in the economy these days there are higher input and output prices and that could be related to supply constraints of getting the global supply network working again. exports have not been a bright spot and employment still remains negative autos after good example sales fell from 17 million units to 8.8 million units in april at an annual rate but rebounded to 5.1 in august

better than expectations still they are about 2 million units below the former level the rebound is strong but there's concern the data is picking up just the re-opening and it's a ways to go before we get actual growth. >> steve, is there anything to draw from this as to whether this later pickup in manufacturing comes after we saw that so-called second wave in the sun belt die down or is it more the rebound in the economy is just sort of broadening out a little bit bisector having seen the first rebound in hospitality and now moving on to manufacturing? >> reporter: you know, i think it's a lot of all of that, will. what happened is that manufacturers have slowly been able to figure out how to call their worker back in a safe way. in a sense that's going to be easier than any service business can ever do. i think it's easier maybe to build a tractor in a factory than it is to come back and say go to the movies or something

like that. i think they are very different experiences for employees. at the same time, those i was looking back at some of the stocks, for example, deere is a good example it just took off in mid-july well before the earnings the earnings came out and sort of justified it. it's a lot like a lot of stocks. they didn't fall as much as expected and they upgraded what would otherwise would be low earnings to say we'll do better than you expected after you downgraded the earnings really what happened if you look at that takeoff in july it just followed the s&p higher so maybe that's a proxy for this idea of betting on the economy on the coming year. >> a big week on the jobs front. remind us what we're expecting today and friday >> reporter: we're getting the adp number at 8:15 on friday 1.2 million jobs expected still an enormous number of jobs

created. there's some concern because the high frequent data we reported yesterday that we've been looking at has shown that the pace of growth has slowed. but there's at least growth. >> thanks so much. we'll see you later for that adp number at 8:15 a.m. the pandemic has been a headache for many parents. but it's been an opportunity for investors. futures pointing to over a percent of gains for the nasdaq coming off another record close for the s&p and nasdaq last night. we'll be right back. some companies still have hr stuck between employees and their data.

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another day, another chance tlet's do this.rd. by making internet speeds fast and reliable. so you can keep up with your customers. by ensuring those speeds have wireless internet backup. so if the power goes down, your connection doesn't. and by covering all your connected devices with serious security. so we can handle this. and this. while you get on with this. and this. be fast, be secure. bounce forward. with comcast business. get started with a powerful internet and voice solution for just $64.90 a month. call or go online today. i decided that i wanted to go for electrical engineering and you need to go to college for that. if i didn't have internet in the home i would have to give up more time with my kids. which is the main reason i left the military. everybody wants more for their kids, but i feel like with my kids, they measurably get more than i ever got.

and i get to do that. i get to provide that for them. welcome back, everybody. covid obviously disrupting the education sector though it's been headache for many parents and educators it has created opportunities for investors. with education technology companies like12, chegg and arco we have more on this story good morning >> reporter: good morning, becky. for better or for worse the coronavirus is forcing many schools to embrace that technology and accelerate the shift to a more connected classroom. that's a lesson that could outlast this pandemic.

the coronavirus is changing america's classrooms in some concrete ways like socially distanced desks. sanitation stations. others are less tangible but more fundamental as it turns the old model of education upside down. >> one think we learned we have to think differently about create agnew normal within education. >> reporter: across the country that means embracing virtual learning despite the groans of teachers and parents the virus is speeding up the technological diserupts in our schools maybe permanently. >> we were marching in a certain direction, leveraging software, leveraging the digital media for teaching and learning and. what this did is really accelerated our path >> hold on let's review >> reporter: they use the same kind of technology that retailers do to tailor lessons

to students. once the pandemic is over classrooms can be transformed into connected learning environments where technology isn't a replacement for school but an extension it. still all this online learning requires access to the internet and the virus has exposed the digital divide in america's schools. now districts are racing to provide students with laptops and wi-fi, even buses that double as internet hot spots >> when he to re-imagine what we do instructionally and in order to provide connectivity and robust learning experiences every single day >> reporter: now they've already spent $7 million on mobile devices for students expect to spend another 17 million this school year a lot of money they hope it's an investment that will pay off in the long term back over to you >> obviously cools around the country are trying to do the same thing they are buying so much equipment to try to prepare for

virtual learning and in hurry. i just wonder how much has demand gone up and how bad are the backlogs in some of these situations how long will it be before these kids get those laptops >> reporter: in numbers we've seen is during the second quarter shipments of laptops and tablets were up 45% compared to last year. you also saw in dell's earnings which they said support demand from the education sector increased orders by 24%. so you are seeing a lot of demand, orders to take as much as two to three months to get in one interesting thing is what we're hearing from schools is that you actually need more technology to do hybrid learning than you do virtual learning because kids need those devices at home and in the classroom so they need even more than one to one ray show, more like a one to five ratio >> thank you it's good to see you

joining us right now to talk more about this and much more is the american federation of teachers president, randi weingarten she is the head of the aft which represents 1.7 million members including pre-school through grade 12 the aft is flated the united federation of teachers that represent the most teachers in new york city schools. thank you for being with us this morning. >> my pleasure >> so the big news yesterday is that new york city public schools are going to be pushing back the opening for in person learning in classroom learning for students by ten days i know that this was done over a lot of hard work and the union was pushing for this i wonder where things stand right now? there are many more guidelines and other steps that have to be met before that in person learning actually takes place. >> actually, i think that the big news in new york city is that it's going to be the first

major school system because community spread is solo in new york state, there was a real opportunity to try to do some in school learning which, you know, really, really important but it can only happen if it was safe and that is what both the principals and the teachers union have been, you know, that's what all the kind of tension and heat in new york has been about in the last couple of weeks. but that's what we as you know have been trying to figure out since april, because we know that if we can make it safe in school is long term a lot better than remote and ultimately remote is a supplement to not a substitute for in school and so that's -- so i think that mayor de blasio finally recognized that they were not ready and the

principals and the educators have a 50 point checklist that atf has put together but equally important is the preparation for both virtual and remote and this testing that is going to be mandatory on a routine and randomized basis to make sure that everybody can see whether or not the virus has taken hold again in new york. and that is what l.a. is trying to do. that's what is really landmark about this agreement in new york and, frankly, that's what we should be doing in other places as well. >> yeah. i have to say i looked through the list of the randomized testing where you take 10% to 20% of the student population and adult population and make sure there's nothing in the school you have to make sure the 50-point checklist is met. when i saw the news yesterday it

would be delayed by ten days and i saw the 50-point checklist and you've been working on it since april and now you have ten days to implement it. when i read it i don't see how schools open in ten days do you think realistically these schools will open in ten days. >> i think what happens is now you have arc on how to happen. would it have been better if this work had been done a month ago? yes, of course what's happening in new york is that people are really trying to figure out how to create some in person learning. remote will, you know, is the default in so many places around the nation when you don't -- when you have community spread or you don't have the resources. today by the way we're having actions all across the country one more time trying to get the resources to do, you know, to get the chrome books and ppe

i would that on a local level there will be some places that will be able to re-open, you know, in this hybrid model in new york, in ten days from now and some places that will not. but the good news is that they are now on track to have, to do this, and as i said, we've been pushing for this we've been negotiating with the city of new york on these things for about three months now and it's really kind of -- it's very sad that it took the talking about a safety strike in order to get everyone focused on what was actually needed. we needed to be safe >> this is brian sullivan. i'm sure you would agree the gap tweep the haves and have knots will skyrocket not just this year but for years come,

economic, educational inequality i have a friend who said when they went virtual in march half the kids disappeared they didn't know where they were they couldn't force them on the zoom has there been any talk at a high level of cancelling the school year to make sure that some kids who are going fully are able to do it hybrid, they are just going to power ahead especially when they are young >> well, i don't think that we -- so, look you can't cancel the school year because that -- >> why not >> that's terrible for all kids. what you can do is actually cancel like what was done last april, you can cancel the high stakes testing what we need to do is we need to actually create the kind of environments that get kids back to learning. you can't pick learning versus

living and i agree with you about the inequities we have been fighting, for instance, for connectivity, i just on the phone with oneof the, one of the people who, you know, who run comcast and spectrum yesterday i was like why are you not giving connectivity to every single parent in america you know, you have it. >> but first -- you're a life long educator. will a first grader learn to read over zoom >> no. but what will happen -- >> but a first grader in a school will. so those two kids in second grade will have very -- one kid who is in school and plenty of kids in america in school he'll learn or she will learn to read going into second grade while the kid who is virtual won't i mean how do you ever make up that gap it sits an impossible position to be in, i under that >> so, look, i think it is

look, the pandemic makes for really terrible choices. but what we have to do is we have to actually get to our kids and connect, which is why, you know, uft, the educators in new york city really struggled to figure out how to harmonize both safety and to the extent possible in school learning. i'm a big believer that if we can make it safe, we have to be in school for all the reasons that you just said that's part of the reason why we started working on this in april. look i'm a new yorker. april was the height of the covid infection rate in new york yet we still started working on it then. that's why these safe guards are so sacrosanct and this issue about community spread and you see a systemic spread. the the only way you see it is through medical monitoring with that testing

i don't disagree with you about what this pandemic is doing to kids it's part of the reason that we have been working on this so hard all across america. but you have to have the transparency you have to focus on people's lives and health and safety first and harmonize that and make sure we can harmonize that with education i have a big bet on our kids meaning, if he we can make sure they are safe and emotionally safe, meaning we really focus on their well being, then we're going able to overcome this learning loss. >> i know you said that some schools in new york city might actually be able to open ten days from now. can you put a percentage how many you think would be opening in person and do you even have testing in place to be able to start with testing that would be required for any of them to be opened >> let me just put it this way i know that the uft has trained

the teachers union in new york city has trained over 100 people to actually do many of these inspections. i know that the city has said that they've done some of these inspections. i also know that, that principals and fill in reps will be in their schools in the next few days assessing it. i can't give you the sees easement now i would say that probably next week you'll get some of that assessment but, it's going to be just like, you know, all these other places that started remotely for the first semester and are thinking about if, if one gets control of the pandemic how to actually get back to in school instruction. that's the same in terms of new yorkers just one, two, fire, ten steps ahead of that. i want to get back to one point which is europe figured out. europe is way ahead of us. the bottom line here is that we

should have fought the coronavirus in the same exact way as new york and new jersey did on a national basis instead of pretending that it didn't exist or having these kind of fantasy lands. i think that issue that i have and. that you have about what it has done our kids if we have fought it as robustly instead of pretending it didn't exist as south korea, as germany, as norway, as denmark, we would be in a different position right now than we are. and i really put that at the foot of the trump administration >> well, we're out of time that was our last question but i think this is going a debate that continues. i want to thank you for your time we'll have you back with an update once we see when we'll be opening. >> thank you >> thank you

listen, becky. we both have young kids. an impossible conversation certainly. i don't know how it will play out. coming up is the housing market still on fire, or maybe starting to cool off just a bit we'll find out in moments with new housing data then latest on a race for a vaccine with dr. scott gottlieb. d dow futures are up big dollar streenngthening. overall dow futures up 1.81. another big day on streeft drea -- street of dreams we're back after this.t of -- street of dreams we're back after this.dreams we're back after this.dreams we're back after this.an help ws health insurance

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breaking news on the housing market diana oleck joins us the latest report on mortgage applications and big news for renters. >> reporter: that's right. mortgage rates fell back a bit last week and so did marriage demand applications to purchase a home dropped but 28% higher than the same week one year ago we see annual increases and drops in single digits this is the average on the 30 year fixed fell to 3.08% with 20% down even that low rate didn't do much for refis which fell 3% for the week from homeowners to renters, big news late yesterday as the white house and the cdc announced a major eviction moratorium. this as state programs were expiring now to qualify tenants must make less than $98,000 a year or couples up to $198,000 this includes those who got

those economic stimulus checks under the coronavirus relief act. renters have to say they tried to pay their rent and tried to take advantage of federal housing aid but don't have to prove that they also must claim they are unable to pay due to covid related financial hardship if they are evicted they would become homeless or move to unsafe setting the white house used the cdc which order ad temporary halt on residential evictions quote to prevent the further spread of covid-19 its order said eviction moratorium-like quarantine, isolation, social distancing can be an effective health measure to prevent the spread of disease but there's already been a lot of push back on this from those landlords out there. back to you guys >> just before we come to landlords the proof they have to offer comes after the fact of not being evicted? >> reporter: well, it's when they are in danger of being evicted. they go online, film out a form basically they can get through

government or cdc websites and say all these things they just have to say they weren't able to pay, they tried to use government funding and would be in trouble if they were evicted. they don't have to show any proof of that. that could be kind of an open door for fraud >> okay. diana, i'll take the side of the landlord i'm not talking about the big corporate land wlorsd 10,000 apartment -- landlords with 10,000 units. what about mom and mop landlords. >> reporter: you got a lot of mom and pop landlords that have to pay the mortgage, utilities, taxes on those properties not to mention a lot of that rental income is their own income on the call last night with senior administration officials they said there was some hud money, some community development block money that could go to landlords but unclear how they would get that, what they would qualify for. a lot have not been seeing rent

for several months now already the last time we had a major eviction moratorium like this that expired in july the federal one that went into effect at the beginning of the pandemic that went along with stimulus checks along with extra unemployment benefits a lot of tenants used that to pay the rent they don't have that now now you're seeing numbers of rental delinquencies climbing up quickly. >> interesting point on mortgage rates. the 30 year itself had jumped from 140 to 155 on those comments about fed about inflation. we're back down to 143, 144 over the last three or four trading sessions thanks when we return dr. scott gottlieb will join us for the battle against the pandemic. check out shares of amc theaters they are moving higher in the pre-matter they are up by 12% the company plans to re-open another 140 u.s. theaters this

week including the first locations in california. stock again up by 12% which is a gain of 73 cents "squawk box" will be right back. , so you can live with us. i'm good at my condo. well planned, well invested, well protected. voya. be confident to and through retirement.

roche announcing it will launch its rapid testing in european by the end of the month. their antigen test will be for symptomatic and asymptomatic patients the u.s. reported just 33,888 new cases of the coronavirus on monday the lowest daily report in

weeks. however daily cases tend to dip with local public health offices closed for the weekend joining us now is dr. scott gottlieb a former fda commissioner and serves on several boards great to see you as always good morning to you. i would like to start if we can on that latest development of the roche test sounds very promising. quick. fairly cheap europe only incrediblitially. are we in a good positive way close enough to get a vaccine that testing itself won't be the definitive answer to this crisis but rather vaccines will will we have a vaccine, will testing become much less important? >> no testing is still going to be important like testing for the flu is important and testing for strep throat is important. you want to differentiate the illness when people present with a respiratory infection.

i don't think we're at a point where a vaccine is so near term it will obviate the need for testing. the strategy for the remainder of 2020 in term of controlling this infection will be testing and tracing, quarantining people who are signature. a vaccine that's widely available and provide enough immunity in the general population to make a difference in terms of the transmission won't be until 2021. the roche test is significant. this is just like the abbott test you'll see a wave of these approvals of these point of care of test that don't need sophisticated machinery to run roche is initially getting authorization in europe for a test but i would expect they will bring it here to the united states pretty quickly. last point this follows a pattern of how fda typically approaches new technology. first platforms they approved here back in february time frame were the pc r platforms used in sophisticated labs then they authorized the energy

based tests. the platform the white house uses now they are moving on though to these card based test. the first was the abbott test. other manufacturers are working on these i expect to see those other manufacturers authorized in short order. >> do you think this roche test is transformational? >> i think this agagenre tests . it's a cheap test that can be deployed in schools and workplaces and give a quick result that's highly sensitive and specific you can produce in mass volumes because it doesn't take a lot of sophisticated components abbott said they can produce up to 50 million test as month. roche will approach those kind of levels in a couple of months as well in term of their production there's other large manufacturers working on these kind of card based tests what this will allow is move

testing in to schools, for example, into nursing homes and more youaustere facilities some tests can be run with a tech in these settings a lot of these tests can be run by consumers but not authorized for home use >> amc's stock is up quite sharply. they will get up to 70% of their theaters open by this weekend. do things like that worry you large indoor gatherings for non-essential gatherings that's a concern to you >> they are higher arriving. i think we need to be circumspect about what we open while we open cools. priority should be to get schools open and do it safely and not have outbreaks in community to put pressure on schools to close certainly when you're looking at opening venues that are indoor congregate settings where people

congregate inside that's a higher risk setting. certainly things done outdoors we know is a lot safer than things done indoors. i don't know what the movie theaters have done to try to retrofit their theaters with better air handling equipment. hopefully they've done that and reduce the risk to some degree many will require masks inside the theaters there's things they can do but i would have liked to have seen more local communities open schools, do that successfully and then incrementally open these indoor entertainment venues to keep the infection down as schools re-open. that needs to be our priority right now. >> dr. gottlieb, back to testing, you said it yourself. you don't think this will be readily available for the consumer over-the-counter time when will that happen? i would love to see it

>> it could start to happen this year i would expect some -- manufacturers are already in front of the fda with requests, with emergency use authorization request for tests that can be used at home i think you could see these large manufacturers come back and seek those authorizations as well initially the sticking point was the fda was going to impose a requirement that the results needed to be reportable on a mandatory basis back to a public health authority they seem to have relaxed that a little bit they will require it but not hold up in authorization because a test can't put in place a foolproof way to make sure the result gets reported back to a public health authority. what they don't want is a lot of people self-diagnosing at home and not getting reported that's a concern the bigger imperative is make sure people can have access to testing. you want something like a pregnancy test that can be used at home. you might see it by the fall i don't think you'll see it in the next month or so

remember, also, the abbott test the government cornered its supply for that test for the next few months. that test won't be readily available in the market to business or other entities because the government bought up most of the available supply and say they will direct that mostly to nursing homes right now consumers won't see that test for a while. >> i want to end to ask you about an op-ed that's in the "wall street journal" today titled "the failed experiment of covid lockdowns. suggests that social distancing did not necessarily help and that re-opening the economy has not hurt in terms of the spread of the disease what do you say to that? well, you know, i think we need to remember what was going on in march. new york city health system was about to be overrun and would have been overrun if new york didn't implement the stay-at-home order there's little he question about that we didn't have any diagnostic testing in place to know which city would be the next new york city very likely detroit, new

orleans, boston, would have evidence s on the same density as new york if we didn't issue that stay-at-home order. could we have issued stay-at-home order more specific on certain cities yes if we knew where the spread was but we couldn't because we didn't have the diagnostic test. i think the big mistake here and the one i think history will judge and look very closely at is the fact we didn't have diagnostic testing in place to know which cities were at risk of becoming new york new york came right up to the brink of their health system collapsing they made it through but right up to the brink at that point. >> dr. gottlieb, great to see you as always. thanks for joining us. >> thanks a lot. >> still to come a check on moves in the pre-market include agnew call on the price target for periloton. reaction to macy

terry lundgren will be joining us "squawk box" will be right back.

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welcome back to "squawk box," everybody. let's take a look at the futures this morning yesterday was the first day of september and you saw the markets up pretty sharply after very strong gains for the move august this morning continuing that trend. dow futures right now indicated up by 176 point. s&p futures are up by 25 and nasdaq is indicated by 145 we're also keeping an eye on shares of zoom this morning. that company's stock soared 41% yesterday. lifting its market cap by $37 billion. that's right $37 billion in one day it's now got a total market cap of $129 billion and now among

the 20 mostvaluable u.s. technology companies with a market cap higher than ibm and more than twice as large as vm ware jpmorgan out with a call on peloton. the analysts there jpmorgan noting the significant upside potential for both short term and long term is pretty strong at this point as it heads into earnings and demand for its bikes and that stock is up by 6.5% this morning. then there's bank of america also raising its price target on nvidia as the company unveiled new video cards. bank of america is the high on the treat for that stock with a price target of $650 up next we'll talk about the anlure of work frk ntz will show us a new poll showing a shift in jobs we'll be right back. introducing stocks by the slice from fidelity.

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welcome back here's a question for you and maybe your college age kids. what's most important for a good career right now amp a college degree or b, the ability to do things like program software it's not the degree. 30% of americans think that a bachelor's degree will be the most important factor in future jobs 43% see technology skills as more important joining us now is frank luntz. i screwed up already, frank. i used the word job and your

survey shows if i'm a politician that wants to get elected or a company i should ditch the word job and focus morton word career how come >> correct because a job is something that you do 9:00 to 5:00. a job is something you're looking for next one a career is something you do 24/7 this is a career for me because my time is 4:45 a.m. and i'm still up doing your show americans want careers americans want to really love what they do they want to be passionate about it and working nation thought it was important to explain not just to politicians, not just nationally but locally and to businesses and to employers every where that we have new demands in the year 2020 new expectations about where we should be going and what we need and what matters most to the public is the concern that they have right now for globalization. the idea that american jobs and

american careers are going elsewhere and other countries are getting the advantage of the u.s. and also a concern is outsourcing and automation in fact, one of the keys to the working nation study is the idea that we can't be planning for the economy of right now even during covid. especially as we look towards recovery we need to be focused on what happens five years, ten years, 20 years down the road one more life long learning is the phrase that the public now embraces with the idea that whatever training we have right now is not good enough for what we will have in 2025, 2030 and looking into the future. that we can't just go to school now and graduate and get our degree that it's absolutely essential that we continue to get reskilled as we work and look towards the future >> yeah. by the way, we appreciate you getting up you're starting to look a lot

like abraham lincoln in that picture over your right shoulder i mean that as a kpliemt globalization, outsourcing job skills if you look that up that's what people fear the most i've driven through michigan and wisconsin twice this summer. the entire way down 75 to the gut of michigan and from wisconsin down through milwaukee down to chicago twice. i see a lot of trump bumper stickers and tags in what might be the most important two states for the election does his focus on china and outsourcing and globalization and america first, do you think that's been a key reason why at least in those states just from the eye ball test there's a lot of momentum and the election may be a lot closer than people think? >> i do think it's a lot closer than people think and even though the working nation survey is absolutely positively

nonpartisan, there's something here for biden people and there's something here for trump people i'll tell you outside of the survey that donald trump has closed the gap by two or three points over the last ten ace and secondly, that my concern and it's something that maybe you hear and debating whether or not to go public with this is that donald trump has the lead on election night, that republicans vote on election day. they vote in the polling places as they always have. and that democrats vote by mail because they are being urged toby the biden campaign and by other grassroots organizations mail ballots are counted after >> we might have -- >> machine ballots ate problem. go ahead >> sorry we lost the connection, frank. we got you back. i'll go with the question and

maybe we can round it off at the end. my question was, going back to the starting point of jobs of careers, the economy is whether the next two and a half months performance after election day matter in terms of how voters think about how the trump administration has handled the economy. do the last three and a half years significantly outweigh the next two months or does the trajectory of the post-covid rebound in the next couple of weeks really make a difference or not >> it's a good question. obviously the trump people want you to think about what's happening back in march and february and january where we had the strongest economy ever in the last 50 years. and the biden people trying to get to you think that double digit unemployment is really -- i think this is why china and tissue of china and outsourcing and automation and globalization is so important. the public needs to know about

what's going to happen over the next six months and i think too much of the campaign is being waged by both candidate in what happened over the last six months and what's happening right now. the public is already in the mindset what will life be like in 2021? the candidate that captures that essence of the near future is the candidate who wins >> frank luntz, always a pleasure buddy whether it's 4:45 a.m. or p.m. we look forward to that election and your insights. it will be a big one >> you got it. coming up, we will be speaking with former white house chief of staff bill daley. he'll join us to talk to us about the stimulus stalemate in washington and whether there's any sign of movement there and chances of reaching a detail macy's higher after reporting a smaller than expected loss that stock is up by 5% this morning.

we'll hear from former chairman and ceo of the company terriy lundgren "squawk box"ilbeig bk. wl rhtac the only thing that makes t-mobile's new offer on iphone better

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good morning welcome back to box. september looking like its off to a strong start. nasdaq set it's 41st record close of the year. dow futures are up 150 adp report is is a minutes away. we'll get the health of the job market call on the consumer macy's shares rising on a jump in online sales. third hour of "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" here on cnbc we're live from all offer the place today. i'm becky quick along with wilfred frost and brian sullivan joe and andrew are both out today. we've been watching the u.s. equity futures and on this second trading day of the month we're looking at the same trend we saw on the first day of the month in august through july green arrows across the board. dow futures are indicated up by 150 points right now s&p futures are indicated up by 23 then nasdaq is indicated up by 136 points again this comes after some big gains yesterday and a day that nasdaq was actually up by 1.4% if you've been watching treasury yields those have come down a little bit as least where we were yesterday you'll see right now the ten year is yielding 0.769%.

>> 2% of gains across europe as well at the moment making headlines today macy's reporting better than expected second quarter results digital sales were up 53%. retailer says it has $1.4 billion of cash on hand. shares of macy's jumping we'll talk to former macy's ceo terry lunn grdgren at 8:30 a.m. eastern time bumble is preparing for an ipo that could see it valued at $6 to $8 billion a public debut could come early next year. investors include blackstone and grey curiosity we got watch shares of draft kings. here's some pretty big breaking news michael jordan has joined draft kings as a special adviser to

the board of trade according to press release which just crossed he'll take an equity interest in draft kings in exchange for providing guidance and strategic advice to the board of directors on key business initiatives michael jordan trading an equity stake in draft kings for a both on the board draft king stock up 14%. michael jordan is the owner of the charlotte hornets basketball team so we'll wait and see what hornet sports and entertainment is the name of the actual company there. big news for draft king. it's been a big year michael jordan getting in on the online app and betting site. big story there. the stock skyrocketing right now. >> wow yeah that's not overstating things. stock is up by more than $6. >> let's tell you what's happening with the stimulus package.

treasury secretary steven mnuchkin telling democrats he'll meet any time to negotiate the stimulus plan. >> the president, the entire administration thinks there is more work to be done let's not get lost on different letters of the alphabet. let's move forward on a bipartisan basis on areas that we can agree upon because there are clearly parts of the economy that need more work. >> joining us right now to talk about the prospects for a deal is bill daley. former chief of staff to obama currently vice chairman at wells fargo. great to see you this morning. thank you for being with us. >> thank you for having me >> where do you think things stand right now? yesterday treasury secretary mnuchkin and nancy pelosi had a half hour call i until think they are pretty far apart but what idea they are final lie talking is probably good news, right >> yeah, definitely. now that the conventions are behind us and you got 62 days to

the election, there's no question that right after labor day i believe they probably got about ten days to two weeks of getting this deal together i think it's imperative and some of the reasons that frank luntz spoke of, the closeness of this election it's motivating both sides both sides need to do something. obviously the economy and the people who are really hurting need relief, whether it's the cities or states blue or red who have been impacted by this pandemic. so i think the motivation is there with election as i say only 62 days away. so they got to act relatively quickly in september right after labor day. >> they have to act quickly in september right after labor day but if the administration is still talking about a $1.3 billion plan and nancy pelosi in the house is talking about a $2.2 billion land, how does that play out especially when things

you mention like city and states getting addition enamel money. that doesn't rate high with some republicans we've spoken with. >> some of them. but you also -- this pandemic has affected red and blue states, obviously. and localities within those states so i think there's a motivation there. i think the president has a tremendous motivation to have checks delivered to people sometime in october with his name on the check which has happened in the spring that's a big motivator democrats see pain out there in some states that they have a big influence in and state and local governments that have real needs based upon the pandemic the reduction in taxes in these states and cities is really almost across the board blue or red, rural or urban, cities and states have been pretty well impacted by the slow down on the economy and especially south

states like texas, places like that, that have been really impacted as unemployment has gone up and we've seen the impacts of this. i think there's a motivation there's nothing like an election to motivate a deal that's all this is republicans are at 1.2, she's at 2.2, there's a deal to be made there. no question in my mind >> you know yesterday we had robert frank with us and he talked about the pain that cities are feeling particularly new york city he was focused on. he talked about how last week new york city issues $1 billion in debt. if you look at the spread between that and aaa bonds it's grown drastically from before the pandemic before pandemic new york city had to may 20 to 30 basis points in spread now paying 78 basis points the only upside is that at least it's not chicago which is paying

higher spread. there's a lot of pain in these cities they have seen plenty of their tax base leave during the pandemic and it's going to get much worse from here how do we deal with this what needs to happen is there any saving these cities at this point >> we've got get through this pandemic that's what's driving difficulties in the economy. that's the heart of this so at some point when the pandemic and the concern about this releases by virtual of a vaccine coming people will begin to spend they will come back into the cities will they come back at the rate they were, that remains to be seen will people still occupy offices, will they come back into your ban setting? that remains to be seen. i believe that well. maybe not to degree we've seen in the last two or three years in urban america but there's no question that we got to get through this. it's not going to happen until

the economy is not going to be in a state of concern that it is until we get through this. and at least have a sense not only that there's a vaccine on the horizon, but it is there and people have a comfort that this is going to -- we're going to get through this i think there's a way to go for the cities to see that yeah, brian. >> i was going to ask you, bill, thank for joining us tough questions. you think chicago will go bankrupt >> no. they can't go bankrupt unless the legislature allows it to >> will the state of illinois? i mean you under what i'm talking about. >> yep the state can't go bankrupt. you know obviously it is the pension problem that's hanging over the state and the city and many states and cities, chicago,

illinois, chicago may be two of the worse in their -- with that problem. we have some barriers on the constitution but there obviously the pandemic has just made it ten times worse by virtual of the need and the reduction in taxes and the need to spend additionally whether it's on all sorts of city service. and you don't have the tax base being replenished right now. they got to get through that there's no question they have to address this problem it's only going to get worse math, you cannot fool math at some point politicians have got to wake up and say we must do something about it. so far they seem to be willing to ignore it which is horrendous >> when you say do something about it, does that mean say the pensions are not going paid out at the levels they've been promised >> no. first of all we have a constitutional block to saying that, to acting on that.

at some point they have to change the illinois constitution to allow a negotiation of changes of benefits. you got to find revenue to support the state in other areas. it's a combination of things.ens tighten the pensions, cut the pensions, address the benefits and at the same time finding new sources of revenue that can replenish revenue losses that of a occurred in the state where you're replentyishing the number of people in the state who are leaving and now you got this turmoil in urban america, city of chicago being one of them adding the stress to city services but adding to stress of people wondering if they want to stay in cities not only with the violence but the difficulties of the pandemic and the cost that's going to be put on people who remain in cities but cities have great vitality

the yrdynanism look at the urban area look at new york, it's not just new york city. look at the entire region around new york that's impacted will be impacted if new york city mdiminishes or chicago diminishes they are the economic engines of both of those states as dallas is in texas or l.a. and san francisco is in california these are big pest of america. and whether red, blue or whatever, we've got the vast majority of americans that live in urban, metropolitan areas >> bill, it's always good to see you. i want to thank you for your time today bill daley former white house chief of staff, former commerce secretary. good to see you. we'll talk to you soon >> thanks very much. have a good day.

>> you too >> we have some breaking job news or career news. the adp report minutes away. stock futures soaring. nasdaq futures are almost up as much as dow jones future nasdaq looks like big tech will soar again i don't think 'vwee seen them flip you're watching "squawk box" on another big market day right after this so you're a small business,

or a big one. you were thriving, but then... oh.

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same for s&p 500 nasdaq don't lead the charge up more than 1% or 142 points similar theme to yesterday nasdaq leading the charge. treasury yields have been slipping back. spiked last thursday the ten year 0.677 adp employment report crossing three, two, one, steve liesman >> reporter: 428,000 adp reporting private payrolls in the move august rising by 428,000. that's less than half of the forecast for adp of 1.17 million jobs were expected to be reported today as you look at the bottom of your screen less than a third of the or about a third of the expectation for total nonfarm payrolls by the bls. whether or not it's something to be worried about we'll talk about that in a second they revised up june payrolls. authors okay numbers in normal times.

40,000 up. maybe not good enough when you have whole lot of people who are unemployed in the millions, almost tens of millions. looking at size bisector, small business, lagging behind medium business lagging behind large business. maybe too soon to say but if you had a couple of months of this you would say this is what's happening with the differential, what's happening on main street and wall street with big companies doing better better access to financing better access to government aid and small business the aid running out. perhaps that's a reflex ever that we'll wait and see bisector professional business service up 66,000. education and health may be picking up some of the return to school here. up 100,000 trade transport up 58,000. construction doing well up 28,000 financial activities 11,000. information services was down. this is a reflex of slowing economic activity. i will tell you, adp did a good

job -- the numbers are running around like crazy and forecasting jobs has become much more art than science. but they did a good job in april and may of forecast. done very badly in june and july this is as you might expect becky the rubber match of seeing if adp is doing a good job reporting it consensus hasn't been much better wall street hasn't done a whole lot better with all these fluctuations it's what we usually have. very difficult >> steve, obviously, nice absolutely positive number but behind expectations as you just mentioned but also a nice revision upwards for june which is encouraging just mentioning as well dollar slipped a fraction in term of that sector breakdown going back to that, education, we can understand why that stood out. what about other sectors and we

talked about the strong manufacturing numbers. did that play out in anyway? >> reporter: i am going to scroll to a second to the sector manufacturing up just 9,000. that's sort of the on the weak side given number of manufacturing jobs loss and reflects the ism employment index which also showed that it's still contracting that's not doing well. you get a nice rebound in leisure and hospitality, up 128, 129,000. not on your screen there still millions of jobs lost in that sector. i don't know what your sense is but i feel like in the job market you can say it's a v-shaped recovery any more we had several strong moves rebounds but still the numbers are, we still lost 15 million jobs still remain unaccounted for. >> unemployment rate which we'll get more details on friday still in double digits, having made

quite a swift move from say the 15%, 16% level down to 10% or 11%. that's a fair point and with tausk letter, steevgs we get to the k shape as well. and depends which sector you're face brian will jump in as well >> i just want to jump in for a second i got to say steve, the old eye ball test. i've never seen more help wanted signs at restaurants wherever it might be there seems tube need for truck drivers and service jobs here's thing authors jobs you can't work remotely and if you know your kids aren't going to be in school or virtual somebody has to be home. i'm telling you the school situation could be a huge drag on the job market, wouldn't you agree? because if you can't -- you're not leaving your 8-year-old home alone to zoom learn if your kid can't go school and you have no child care you can't take a job and i wonder if there's going be huge hiring gaps because of

that >> reporter: so for a lot of reasons it's good you're not an economist and you're happy about that the first thing they teach you in economics is anecdote is not evidence you want to be careful you don't extrapolate although i'll say in my career looking out your window form of forecasting has sometimes beat the data crunching part of it you're right there are jobs available jobs that have not come back it's hard to argue right now one of the arguments that was out there is extended unemployment benefits is part of the reason last week you still had a million people filing for unemployment claims. we still have something like 26 million people receiving some form of jobless benefit. so, yes, there could be a lot of jobs by the way, it could pop like that if the virus were to kind of go and ebb a bit and then you have re-opening of certain economies and certain part of the economy that remain

shuttered. it could happen very quickly but right now you have this gains that come back 500,000 is insane. it's a great number but not in the context of millions who lost their jobs >> fair enough >> steve thank you very much we will talk to you again soon when we come back, though -- yeah we were trying to figure out who was taking it. when we come back some new signs that florida's housing market is heating up and what this might tell us about real estate in other parts of the country first though as we head to a break check out this morning's biggest pre-"market movers". see who is on the list nvidia leading the way apps are used everywhere...

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all right. if you needed more evidence there is more evidence this morning that florida's real estate market while already hot heating up even more and a few signs much it slowing down diana oleck is back with us. is this all people leaving new york city and new jersey and moving to florida, diane gentleman? -- die january >> reporter: that's part of it incredible numbers on how many people signed contracts to buy homes. palm beach sales up 84%. in the price $600,000 to $800,000 range up 265. 1 million range up 268%. this is thanks to a big jump of new listings but strong demand from buyers leaving large northeastern cities due to covid. miami which earlier this summer saw a major spike in covid cases

didn't seem to hurt the housing market sales up 18.5% top ranges, $600,000 to 800,000 up 91s 1 million up 41% part of this is leftover demand from those affected by the salt tax changes two years ago. the tether between work and home is longer and even after covid passes there will still be zoom. now interesting the numbers are very similar in other high end markets like aspen lovely to live there back to you guys >> okay. i'm not sure aspen, like steve liesman said i'm not an economist but i don't think aspen is the best market to focus on how about the one you're in right now. i tweeted out an article for "the washington post" newspaper of record in your region where a young family going after a house, i think it was in fairfax or falls church, virginia. there were 12 bids above the

ask. they bid 30,000 above the asking if i remember correctly. did not get the home by the way, the house wasn't a million dollar home. northeastward it's getting a little silly out there >> it's getting very silly out here you're looking at record low mortgage rates looking at very high demand from house. that's why this urban flight theory you're seeing from new york, san francisco, a lot of cities you're not. competition is still very high especially here in d.c you have house with backyards and demand up here is incredible prices are going way up. you're right houses are going with multiple offers very hard to find an affordable house especially on the low end where inventory is solo. because people aren't putting their homes up for sale. you still do have a lot of hot urban markets and have some people who think if i don't have to work from an office why not work in miami beach? >> or aspen apparently

diane jafa oleck thank you very. >> what do you have against aspen? >> nothing i can't afford aspen i would like to see it some day. i'm more of a basalt kind of guy. for more on where the hot and not so hot markets are in real estate let's bring in the executive chairman of one of the oldest real estate brokerage firms. you just heard diana's report. will this end badly? are people being silly with prices they are starting to pay in some markets? >> well, you know, there was a bunch of inventory around. and, you know, the prices, i don't see the prices quite as high as some other people have seen them. what i see things that have been on the market a while and haven't sold because the market was coming down after 2016 they are now selling so it's not like the prices have gone up that much.

what has gone up is the suburbs. the suburbs never came back after the financial crisis starting in '08. so that market that's come back. >> do you see the hot markets staying hot or getting hotterer and maybe the cold markets like new york city staying cool or values to be had >> i think there's plenty of values to be had in new york city right now people don't want to buy they will take anything if they are leaving new york either temporarily or permanently they want to get out of real estate the markets like south florida is growing and growing for a while. there we do see as you mentioned on the jonathan miller report we do see substantial price increases, more so in a single family homes in south florida. but condos are selling well also new york city, the most active

part of the market we see bidding wars is one $2 million high end is what's hurt new york city the most at this time >> you're still seeing bidding wars in new york >> yeah. for under $2 million yes. under $2 million we had bidding wars >> that's probably the family or young family i know $2 million other parts of the country think that's crazy but new yorkers understand you think there will be -- the death of new york city has been greatly exaggerated? >> i don't think it was a death. in a temporary coma but hasn't died i think new york will always be the place that people want to be has the most high paying jobs. it has right now a lot of the great things about new york aren't open, obviously theater, sporting events, concerts so it's a little bit different that may take a year or so to drove, maybe even a little bit

longer but it will recover and new york city will be back. >> well i like the optimism because all the reasons to love new york are now the reasons to not but if they come back they will be. howard, where would you put your personal money if you would invest in real estate not in new york city. not in new york city anywhere in america right now where would it be? >> well it depends if you weren't in new york city and want to be some place in a distance that you commute too, you have long island which also never recovered from the recession and those house are down 50% pre-'08 you have long island, westchester, fairfield county, local places if you're looking for second homes, south florida has always been a big second home place for people from the northeast. aspen is way up in volume. i think we've done three or four times as much business so far this year than we did last year

at this time so there's a lot there the prices are rising and there's a lack of inventory. in south florida there's still plenty of good inventory on the condo side less good inventory on the single family home side. seems that people are gravitating towards single family homes right now that may mean that they think they have a future of moving permanently down there or just want to have more space and outdoor space and so forth i think it's a combination of factors. but there's plenty of good real estate for sale and at reasonable prices surrounding new york city. >> howard, that's almost counter to what i would have anticipated to see strong markets in places like miami for a second home, aspen for a conhome. those are places that you have to fly to. a lot of people don't want to fly. or is this the crowd that can afford a private jet >> yeah, i think it is the private jet business has been pretty busy the domestic stuff

not for international. they lost a lot this year, this summer for domestic it is that's why i mentioned these places around new york which you can drive to all the counties north, north of westchester. those are places that are still commutable or at least if you want to get into the city you're not going to have to get in a plane and do it. long island, again very inexpensive compared to other parts of the country and you take that with low interest rates, i think that it's very compelling >> howard thank you. great to see you >> howard, thank you very much good stuff there again we come back to aspen. becky, apparently aspen -- by the way if you go to aspen, c infectious diseases is every where which is cool. >> that is cool. when we come back, terry lundgren will join us to talk about the american consumer and

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macy's holding better than expected results frank collins joins. >> reporter: macy's share 5 pierce high5% higher the ceo says he expects holiday shopping to get a big boost. company however saying the slower recovery of stores in urban areas like new york, chicago and l.a. and reduced tourism continue to be headwinds. luxury sales were a bright spot. strongest sales from women's handbags and shoes, home goods also higher. macy's said it will lean higher into luxury sales. skin care brand blue mercury seeing sales growth. another thing to watch, the company also discussed logistical issues as it repairs for the holidays saying it's experiencing bottlenecks at

ports and challenges with ground freight. something to watch again, macy's shares up 5% in the pre-market back over to you >> frank, thank you very much. joining us right now is former macy's ceo terry lunn grdgren. watching the numbers today definitely better than had been anticipated but you're still talking about a fairly large loss per share what do you think just in terms of what's happening here, in terms of when the stores re-open, when people start to come back and start shopping how long of a road will this be? >> well, first of all, becky, they didn't have any momentum so they are starting out of the starting blocks well behind all those retailers that were deemed essential. and so, they are catching up but they are just now getting back open, getting organized. it was pointed out in their call the larger cities are not

contributing the way they have pre-covid. it's going to take some time for it to get through the system i'm encouraged by what i saw in their results. certainly better than expected certainly better than some of their competitors. i think it's because they are so strong, have been forever, in digital sales. i mean i think that's not been recognized bay lot of comment that have been made previously macy's was the leader in the omni channel performance for years before the big companies that are now catching up, like walmart, target and home depot so they have that base and they are going build on that. i'm encouraged by what i saw >> the digital sales were up 53%. that's a strong move macy's will never be in a position where it can rely on the digital sales without having strong sales from stores too, correct? it's got a large store base. >> becky, not only macy's but

90% of all retailers will have that same issue. i mean prior to 2019, 87% of all transactions took place in a physical store, brick-and-mortar store. that's changed of course since the covid experience that we've all gone through we all learned to buy more coordination and more products online but it's now 25%. so i still, even after covid, that number will come down as there are more stores open and people can choose to shop in store or online. so, i still believe that that number will be 70%, 75% of business will to be done in physical stores. that's important not just for macy's but all retailers this is the key message they have to learn they have to make sure those stores are safe and those stores are encouraging for consumers because ultimately consumers will go back to these physical stores by the way they are going to those stores at walmart, at target, at home depot and other

stores already so consumers do have that -- they already got it in their mind they can go into a physical store demonstrated by grocery stores and the ones i mentioned. >> terry, it's brian i'll do a tyler matheson two partner. macy's is committed to the mall. what's the right size of the number of macy's stores, especially at the mall how much do you have to shrink number two it does look like j.c. penny may liquidate sears holding on by a thread is there a post-department store world where macy's can thrive simple lie because others are in even worse shape >> well, brian, first of all america is over stored it has been over stored for a decade or more so that's just the reality significantly more-square-footage per capita in the united states than any any other country in the world that adjustment must take place. then as online sales have grown,

the physical stores have not contracted enough to offset that it's just rising online and shrinking physically the supply and demand suggests that these -- there must be a contraction of physical stores that's taken place all these stores must be part of this it will be a combination of stores taking offensive positions and closing towards that are unprotected or not re-opening stores that are already closed that are not productive, and some stores, frankly, just not liquidating to your point about j.c. penney all together so that what will be at the very end will be, it will create winners and losers and winners are the ones that are the liquid businesses that will be able to get through this challenging time and at the end of the day they will have less competition. you got to bet on those for the future to your point i think that's exactly what's happening

just happening at a much more accelerated pace because of covid-19 >> terry, you've mentioned this a couple of times. the government actually allowing those big box stores to open like the wall mattermarts, targe depot and not allowing other stores to re-open. creating its own winners and losers do you think that was fair >> i think it was frustrating. i hate the word non-essential. the retailers that were closed, a lot of the products that the essential retailers are selling are those same products. so i think walmart does about, i don't know, $40 billion in these non-essential categories or something like that a year so while consumers are in their stores or shopping online it just easy to extend the shopping cart from just the essential products to these other products that are competing with the stores that were physically closed

honestly i think it was very difficult and i feel for those retailers who had just been closed for several months. now they are just having to restart. >> terry, thank you. am great to see you. we appreciate your time and hope to see you back here soon. >> thanks. >> still to come draft kings jumping on news michael jordan is joining the company as special adviser and take an equityta ske we'll talk about that coming up next

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got some big breaking news in the sports and sports gambling world michael jordan is joining draft kings as a special adviser to the board and taking what they call an equity interest in the company. shares of draft kings up big not as much as they were they were up 17% they are up 11.5% right now. still soaring. with us now is our own jabari

young. a big move by jordan but a bigger move by draft kings because they get the name recognition and a business genius as well as a basketball owner as well. what's your take on this deal? >> reporter: well, i mean, listen, in talking to people at draft kings this was something in the works for a while they've been seeing if jordan was interested he's not the first nba own the boston celtics and others are equity owners in draft kings. not the first owner. you mentioned it, his name and image likeness is what will drive this robert kraft can't do what michael jordan has it's the culture what michael jordan has look at the ratings of espn had on the documentary because of who michael jordan, a man of pure genius as far as when it comes to the business. he'll get draft kings to get

their brand inside with the owners once their business becomes official >> okay. but jabari, you know as well as i know what will come. it comes in the form of twitter machine. dave portnoy took a dig at michael jordan's gambling history. draft kings is big on the jordan news that's bananas unless that's just code they are taking his action in which case it makes sense. in other words, if i translate that tweet correctly basically saying if jordan is gambling because a well-known gambler, gambling through draft kings it makes sense. is it smart from a business perspective to join a gambling company when you're an nba own with a history of maybe gambling too much >> reporter: i mean listen, we don't know what that history is. we don't know if he's fixed that

history. if he is so what gambling is part of the u.s. it will expand again, he's not the only owner that has equity owner in draft kings. look into gamblinglook at everybody's else's gambling history as well. don't just pin it on michael jordan remember he's in this to make money. i don't think he's going to blow it by gambling it away it's a good move for draft kings using his name and image to build his brand when we know sports betting will continue to expand whether michael jordan screws it up by gambling it away, who cares. >> what about nike will they mind about this association, close association with sports gambling >> reporter: you know what, if they did, i don't think they are going to say anything. what your is going to say to michael jordan put your brand on the map.

what do you say to him you can't say anything michael jordan is michael jordan the man has many billions of dollars. his brand alone is worth billions of dollars. if nike has any issue about it, i'm sure michael has talked to him about it you can't say anything about michael jordan the man is who he is and he's just too big again, you have a culture behind him. the snaemers, the brand, logo, everything michael jordan is the equivalent of michael jackson in sports he's just too big. >> that's a good point yesterday nbc sports and our parents company making a deal but the world of sports gambling and money is all coming together michael jordan great at spotting trends early probably seeing this as well my point is i wonder if it's a bad look for draft kings or if there's going be some knock on jordan because of that who knows?

but to your point we'll probably see more deals like this and now you've more cleared the way for more sports owners whether dolan or jordan or kraft or whoever else and whatever sport it might be to get in on this game and it will be a gold rush. >> reporter: yeah. this is not a bad look for jordan nor a bad look for draftkings. if school was started under normal circumstances do you know how many kids i would see in the yard with michael jordan sneakers on right now? this is a great move for draftkings. >> i wish it was >> it accesses them to michael jordan name, image, likeness and the culture. people who probably wouldn't have used draftkings, now being associated with michael jordan, who knows, they might just do that remember he's also got some strategy and i know i think michael jordan is pretty good at business strategy. i think this is a great move how it unfolds we'll see, but, again, look at the stock the stock is rising, leveled down now, let people know, wall street know, when you are

associated with michael jordan usually good things come. >> jabari, good move for michael jordan, good move for draftkings, is it a good move for the nba? >> yes absolutely because the nba now is involved with gambling, okay? they have business with gambling partnership. gambling is the future, gambling is a new source of revenue for a lot of sports franchises who maybe ticket revenue has declined because of covid, now people will be home watching the game, these in prop bets, in quarter bets, this thing will continue to get bigger and bigger and michael jordan is smart to get on board now. again, he is in this to make money and i think this move will allow him to make money, this love will also help the nba because michael jordan his face is closely tied to the nba if the nba is involved in gambling which they are it's a good mo of. >> and to your point, obviously

fertita a personal friend, he set the bar high and maybe jordan following that. i just hope whatever equity stake or interest jordan took he took yesterday because that stock is soaring he may have made who knows just how much money on the name recognition alone. jabari young, no doubt we will hear from you all day long thanks very much, buddy. appreciate it. >> no problem. coming up, this morning's top stock movers no doubt draftkings will ultimately be in that later on speaking of sports don't miss nfl commish err logger goodell he will join "squawk alley." what does he think of sports gambling, we will ask him 11:30 eastern time t you call td amerie for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila!

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a number of stocks on the move ahead of the opening bell dom chu joining us right now, he has some of the names to watch. >> good morning, becky let's start off with the notable earnings mover of the morning that's macy's shares up about 5%, roughly 3.5 million shares of premarket volume. the department store company behind name sake stores and blooming detail storms reported a smaller than expected quarrel less on better than expected revenues, sales growth fell shy of forecasts but digital sales grew 53% macy's stock has lost over half its value in the last 12 months. sharing up 7%. next up shares of nvidia which are hire by around 5%, the computer chip maker being helped along by analyst moves like at bank of america which reiterated its buy but said it's raising its target price to 650 bucks a share, it was 600 before today

the analyst team citing nvidia's longer term growth prospects in gaming, cloud computing, artificial intelligence, self-driving cars and robotics we will end on shares of peloton up over 7%, roughly half a million shares premarket volume. named a top pick by analysts at jpmorgan and the target price $105 per share, that's where they see the shares to be in december of 2021 they cited robust demand for bikes that could fuel revenue growth on a more sustained basis. wilfred, three green stocks premarket. >> an average seven-week wait to get a peloton across america, 10 or 11 weeks in new york city quite astonishing the excess demand at the moment dom, thank you. joining us to discuss markets further paul hickey, co-founder of bespoke investment group an anastasia at jpmorgan

private bank good morning to you both paul, just kick things off with you. i know you've of late been relatively reassured by the economic data coming out of the u.s. and that that might at least help explain some of the equity market run. do you get concerned by a jobs miss like we saw this morning? >> not particularly. you look at the adp last month missed by over a million and then the nonfarm payrolls came in 300,000 above expectations. i wouldn't put too much into that i mean, it's very hard to get an accurate read on these numbers here as far as the jobs are concerned, but the economic data we're seeing, momentum in economic indicators, obviously it's off a low base but the strongest three months we've seen since at least 1999 the recession that started in february is over for all intents and purposes what happens going forward is another story, but right now this is -- the kind of action we're seeing is early recovery type of action.

>> anastasia, we've seen so many attempted breakouts higher from yields over the course of -- well, the last couple years, but also the last couple of weeks and months and with it attempted breakouts by the financials. do you think that changes meaningfully anytime soon? >> you know, i think financials is a really interesting trade at the moment one thing that has changed for financials over the last really couple of weeks is the yield curve sh the yield curve has steepened out meaningfully and we think there's more to that trend to go for the rest of the year we could see higher nominal yields but not much in terms of inflation. so that would be quite supportive of financials, it obviously as we talked about the economic activity is improving as well so that's the second pillar of support. the third thing i would say it has a little bit to do with the outcome of the elections and if the potential win of the incumbent means return to deregulation of financials, that could be the further catalyst needed for financials to do well

here so it's a bit of a contrarian trade, at the same time they're down 17% so i think it's definitely worth a look. there's lots of other parts of the market that are doing well and i would say that yields generally speaking they're inching a little bit higher but are still anchored at very low rates. what that means is that valuations for the market and especially for growth stocks like technology can continue to move higher here. >> sentiment indicators starting to concern you at all? >> yeah, short-term sentiment indicators are a little bit concerning, some of the ctas and some of the momentum indicators, but overall i would say investors are not yet in this market they have watched it, they have watched it from the sidelines, but they are notin it. so i think that could be the catch up trade that we see in the fall as well. >> paul, 20-second take on the same question to you. >> i think to the same point for every sentiment indicator that shows excess bullishness there's

one showing cautiousness on the part of investors, i don't think sentiment is an issue here, just look at cnbc every day, you see people talking about how far ahead the market has gotten ahead of itself, you don't see that kind of action when people are just throwing caution to the wind. >> thank you both so much for joining us apologies, paul, we are out of time here. thanks for watching "squawk box. "squawk on the street" starts now. ♪ good wednesday morning, welcome to "squawk on the street," i'm carl quintanilla with david faber, mike santelli coming to you live from separate locations, cramer has the morning off. coming off that strong start to september and the s&p's 21st record high of the year, futures strong again as the street raises tarts on names like peloton, nvidia and tesla, oil steady as signs of demand continue to improve. our roadmap begins with a futures surge, the s&p and nasdaq looking to build on tuesday's record