it is 5:00 at cnbc bringing back the buyers maybe not. stocks looking to makeup lost ground futures are down sharply soft bank stumbles why they are doubting the multimillion dollar bet will work out caution to the wind. the sector goldman's will remain dominant another suspension another university to pause

in-person classes. and no deal yet as the automaker takes a test drive with automaker elon musk. this is "worldwide exchange" here on cnbc ♪ good morning, good afternoon, good evening and welcome wherever you are watching hope you have a good tuesday here is how the markets are setting up the day futures are down nasdaq ended up losing over 4% late last week and it could be more today look at that, nasdaq futures are down 253 points. remember, what we have seen happen, when futures really begin trading, always tends to

accelerate we can't say that will happen today but that has been the trend. nasdaq futures are down significantly. that is not a good look in the technology part of the markets which controls the entire stock market snapping a five-week winning streak as investors learned that soft bank was a big driver placing multimillion dollar bets on the options market. despite what is happening right now, goldman sach thinks so. advising clients to keep their faith in technology stocks unless interest rates rise, the tech sector is likely to, quote, remain dominant for some time to come as they are, quote, seen as

relatively defensive and might continue to outperform even in futures. around the world, asian markets mostly higher overnight. we'll have to wait and see what happens. in europe, it is mixed again, watch those markets as the futures trade off in tech. we'll see if they accelerate in their selling as well. back home, more talk about a possible coronavirus vaccine as companies speak out about their progress while the president presents his own plans rahel is here with more this morning. >> good morning. a top uk health official says a covid-19 vaccine would likely be available in the first few months of next year saying the country has already started production of an initial 30,000

dose from astrazeneca and oxford university president trump told reporters the vaccine could get the green light in the u.s. in october or november boeing is reviewing quality control lapses for the company that could stretch back over a decade an internal faa memo said boeing identified regulators that it had parts that did not meet their quality-control. it could accelerate production of the roughly 9,000 jets delivered since 2011 starbucks offering new plant-based menu items in asia includes an oat milk cocoa

macchiato. oat milk is the hottest thing right now. i can't get enough of it >> one important question. what is oat milk >> milk made from oats and more environmentally sustainable than almond. >> who gets up at 4:00 a.m. and milks the oats >> people get up at 4:00 a.m. to do the news, so lots of people would be available to get up to milk the oats. >> people get up much earlier than 4:00 a.m. to do the news as you and i know let's get back to the markets and last week's tech rally looking like it will carry over futures down sharply could be a big one as well

either we are going to try to bounce off some of these support levels or crash through them and go lower joining us now this morning. good morning it is tuesday. this market route looks like it might continue today futures selling off sharply. in most futures traders aren't even working yet unlike you and i. what do you make of the market right now? >> you are right we are seeing selling pressure nasdaq down 1.5% everyone take a big deep breath, since january 21st, these top five stocks, these faang stocks. facebook, amazon, apple, since january 1, 2017, up over 270%

compared to the nasdaq that was up down 7.5%. down another 1.5%. the bigger picture, there is a lot under the surface. we had the soft bank news. huge buyers come into the market at the end of the day, we are eight week as way from the presidential election. there is a lot we could break down further but i'm optimistic about tech pal >> you really are even after thursday and friday may continue today. >> let's break this down this is a long gamma trade that is the rate of change in delta. what is delta? a measure. we are talking a lot of greeks here i want to break this down. delta is the change in the option prices in relation to the

underlying stock if that option is delta 50, if apple would move up $1, the price would move up $50. when you see the velocity come in like softbank, every time they spend $1 billion on a premium, once we saw that come in, that made some waves of hedgers having to buy back some stock. this is a bit of the unwind. you put that in conjunction with the buyer to come in $100 billion at a time puts them at the s&p 500, you saw some anomalies last week that disturbed some people. we saw a big rock get thrown into the pond. we saw some waves and ripples. that will remain calm. there will be uncertainty.

there is always uncertainty and this is a little pressure at this moment in time. >> there is a lot to unpack. introducing the phrase gamma squeeze to our audience. you laid it out very well. somebody has to sell you those calls on its option. when they do that, they will buy the underlying stock to health those bets when that rolls over or goes south, you've got to flip it a lot of big banks may have found themselves suddenly off sides to have a football term late thursday and friday now hear is the question if that's the case, that should be relatively short lived. right now, it's looking like it

might not be what do you think? to my point being optimistic to the out sized stocks, that was just a few before we saw what happened in comparison of course, that is the effect what we have seen in live stocks and decades. this is unusual and extraordinary, there is always different pushing points in the bigger picture, we'll digest it. hang in there, pal click in that seat belt. we are ready to rock

>> hang in there, don't panic. keep calm. a pleasure to have you on. buddy, have a good day we'll talk to you soon >> you too a lot more to do when we come back on this suddenly busy day including more on softbank and are they really the ones to blame on the volatility we have seen and continued crisis in california their biggest utility getting ready to halt. later. the data from the box office holiday weekend. we'll revisit our friends at the family drive in in virginia. we are in as "worldwide exchange" is back after this ♪

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futures are down again look at the two big technology games. apple and tesla are down in the pre-market tesla shares down 9.5. apple down 2.5%. could be another difficult day keeping an eye on that is tesla down $40 a share

something we talked about is all of this volatility really because of soft bank investors largely casting doubts on the investment giant's multimillion dollar debts. that stock falling after an 8% drop on monday let's talk more about soft bank and what they are doing on the news line with financial times deals deliverer. talking about soft bank and what they are doing what can you explain that they are doing in the options market that could help us make sense of what they are seeing >> they wrote the story on friday what they are going on the whale and in august, they

put out the disclosures. what you saw there, you agree that they bought about $30 billion in stocks from amazon the usual suspects then these rippers through the market that someone was buying the stocks it turns out softbank was one of these. they bought $3 billion to $4 billion in premiums on these contracts. since then, we wrote that they are up about $4 billion as before the selloff subsequently, it looked like they had not rewarded and are up on the trading strategy starting to tell us that masa son had

this startup and investing and other companies like-week and other companies that were privately held in the list then he starts disclosing all of the assets and the cash where it is heavily on the stock market it turned out to be profitable and left the investors in tokyo that it is nothing to do with tech that's where you saw the soloff in the last 24 hours a lot of selling and the new asset management unit, it sounds like from our sources, it is all driving this >> i think what you are saying

is important because there is two ways to look at this one could say softbank's options bet may be responsible for the recent down turn we have seen or maybes it mo maybe it is more accurate to say softbank drove up the market in the weeks prior. what would you say is more accurate >> it is hard to say we are talking about the position of $30 billion in the market contracts it is a huge amount and required by the hedging of the banks. i don't have any concrete evidence to dictate what is causing market movements softbank had been focused on private investing and startups had been shifting with the

access cash from disposals weighing heavily on the stock market >> when did softbank go from, hey, let's invest in your company to let's be some kind of high-speed trading hedge fund? >> what happened in march when the world was melting down softbank fell heavily. a lot of his market where he borrowed heavily against that. when the market crashed, he felt very squeezed to the point he debated taking the company private with the active investors. they chose not to do that and embarked on plans to liquidate a

ton of their holdings. they sold off alibaba and shares of t-mobile in the u.s the one thing, when he has money sitting in the bank, he does not like it just sitting there, he puts it to work. he disclosed in august that they were starting the asset management arm and gave specific people internally are passing the buck in terms of who is on the teams and who is not it is not clear. masa is driving this that's one thing for sure. >> $30 billion debt is big thank you for the great reporting on this story. thank you for joining us still on deck, talk about a deal buzz kill why the ceo of germany's automaker had to make social media after a test drive with

elon musk? >> announcer: today's big number, 4.1 million. that's how many jobs the leisure and hospitality job sector is down the united states postal service is here to deliver your packages. and the peace of mind of knowing that important things like your prescriptions, and ballots, are on their way. every day, all across america, we'll keep delivering for you.

welcome back, normally we

talk about the dow futures we can ignore that now you've got to stay focused on technology nasdaq futures down over 2% right now. big technology stocks are the driver of the stock market we've been talking about the idea of this market structure. five or six names are over 40% of the market in terms of weight, holdings and etfs, et cetera impossible to keep the market down the market had been rising despite a large percentage of the market had been down and down big in 2020 nasdaq futures are down more than 2.5%. >> that could be another bad day for technology >> labor day weekend saw the release of the highly anticipated film "tenant."

pulling in $20 million marking the best domestic opening since the pandemic began many looked at the film of the benchmark to people's willingness to return to theaters our next guest says the movie was another opportunity for his drive in owner of the family drive in theater walking distance from the gas station my grandfather used to own. it is good to chat with you on camera how is business? >> zb morning, brian thank you for having me back business is very good this year. it has been a strange year with the pandemic all the drive-in's nationwide and worldwide have been doing very well. all of us are surprised we did

well with the classics and now we are happy to see some of the new releases we've got >> following you jim, of course. i appreciate you guys coming on. you've got a couple of movies. you've got bill and ted, the new f tenant and you've had some old movies >> a lot of us in the drive-in theater business were surprised how well some of the classics did. some of the stops were jaws and jurassic park. we could have probably run it three or four weeks. we've done greece and dirty dancing and a lot of the

classics my booker didn't think we'd do well with cassa blanca and singing in the rain and we did well with that it is surprising >> it is an amazing story there. from a home town boy's perspective, i love to see you doing well we have to leave it there because technology stocks are down big good luck. maybe the market volatility will drive people to your theaters. >> thank you so much >> thank you technology stocks. that's the story goldman sach says keep calm and invest on. here to weigh in on what could be a big market day. we'll be back. nasdaq futures off 2.5%.

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stocks facing more pressure. standing by with help on how to navigate when could be another important week for the market and your money weeks before the governor is trying to strike a stimulus

deal the founder of jelly belly holding a trooerz hunt to give away his candy factory more here on cnbc. ♪ >> welcome back and good morning. could be another big market day. let's look at stock futures. you can ignore dow futures this morning. you need to focus on nasdaq futures. technology is where the positive market action has been and the negative market and that will continue today nasdaq dfutures are off their

lows around 7:00 a.m. eastern time, a lot of people hitting the virtual desk and moving the markets. last week, we saw the nasdaq dak a hit and the s&p 500 go with it, snapping a five-week winning strees we learned softbank was a big part of the volatility placing as much as $30 billion in the options and equity markets. there were questions whether technology could keep driving us higher goldman sach thinks so advising clients to keep their faith in tech stocks from the note, suggesting unless interest rates rise, the sector is likely to remain dominant and adding that tech companies are seen as relatively defensive and

likely to perform in a broader perspective. >> joining us there, cnbc contributor and great to have you on what do you think. are you on board with goldman's call on tech stay long and strong even through the volatility >> of course i'm not i put out a note saying we've seen extrememania. that party will come to an end i'm saying relative outperformance this does not mean they need to go down a lot but they need to take a pause it has been too fast, too furio furious.

back in the 1990s, there was an opportunity to go back 20 years like to the 1970s and look at the top 120 market strategists and chart each of their predictions. what you see is that they are wrong all the time like all the time. when i read a note like this, i think oppenheimer is a really smart guy but it is an opinion i'm going to take that and others and my own strategy with this many other companies are trading at huge discounts. those are where i'm looking. the nasdaq is still you have 26% year to date >> it is that's why we love having you on it is a good point if you've owned these stocks for a while, you've probably made some money, which means, could we make a connection, could a

selloff -- maybe i was wrong, you sell the big tech stocks that gives investors a lot of cash they've made a lot of money they might be able to put to work other names like you are talking about? >> right we've got our growth portfolio, income portfolio there are 60 companies between these, most of which are trading at a fraction of the market multiple many are still down. there aren't only five stocks to invest in. there are hundreds you can look at american express that is still down look at intel that is trading at 10 times nafent, at&t, verizons they do produce huge cash flows

and have a lot of value in them. not necessarily value stocks but they offer value to an investor. >> nasdaq futures are down 300 points i know the numbers get bigger and i understand percentages i went to an engineering college for pete's sake. i have never seen nasdaq futures down overall down 300 points. you mentioned some of the names. is it time to rethink our idea of what growth means maybe it doesn't have to mean growth is growing, maybe your in investment growth is growing >> right that's where you separate growth from the appreciation. i really mean 490 companies or 450 companies. some of those offer better

capital appreciation potential from the stock price one of the things you are focusing on is the magnitude of growth. these companies have become hume onnous to repeat a 40% growth is harder and harder but many like amazon are prizes as if will sustain a long time it is not going to happen. they are getting too large to sustain that forever if we are afraid of those going higher, guess what, there could be a wet blanket coming in to lay on top of these big guys >> you've been saying you've had the same conversation for months

but you may be right this market conversation you've been warning about has happened. we appreciate you coming on and presenting these others. buckle up, it will be another big day. appreciate you coming on from markets to politics and president trump. once again raising the prospects of separating the american economy from the chinese rahel solomon back >> the president floated the idea to decouple the economies continued to make getting tough on china a key part of his reelection campaign and he claims the u.s. would not lose money but our economy would only become stronger. >> we will make america into the manufacturing superpower of the world and end our reliance on

china once and for owl whether decoupling or massive tariffs like i've been doing already, we have to end our reliance on china. power is being shut off in california because of strong wind gusts are expected to last to wednesday morning the governor has declared a state of emergency as wildfires continue to burn across the state. west virginia university is suspending in-person classes at the main campus. they will shift to online-only lessons. they suspended 29 students amid ongoing investigations volkswagen ceo says there is

not seeking a deal with tesla. saying the two men had a chat and musk took the new id car for a spin and they took a nice selfie which you could do if you were back in the studio >> by the way, that will happen. i promise you. there will be a day. >> allegedly >> we'll be back to normal >> listen, it is our fourth pandemic in 100 years. we'll have it again. >> and selfies will commence >> eh, yeah, that's the only down side. let's stay in washington where congress is returning from the august recess with a long to do list and a lot to do. lawmakers and the white house on the same page to maybe avoid a deal shutdown at the end of the month. not the same to be said on the

talks of the stimulus. that doesn't stop eamon javers up in a suit and tie at least on top. i'm not going to ask about the bottom >> i'm not going to answer about the bottom >> don't they've a lot to do. where do they stand on, a, funding the government and, b, more stimulus? >> the senate is back. the house is only back in terms of committee, not in terms of the floor. as you point out, they have the rest of the month now before the fiscal year deadline to keep the government funded. it looks like nancy pelosi and the speaker of the house have cut a deal for some kind of clean continuing resolution. that means just a bill to fund the government for a limited time nothing else no stimulus no bells and

whistles just the barest of deals that handshake agreement will be made in terms of stimulus, we are nowhere in terms of negotiations he said he's not even meeting with the democrats >> i know who i'm dealing with and i don't need to meet with them to be turned down they don't want to make a deal because they know that's good for the economy. if they make a deal that is good for the economy and there for it is good for me for the election. >> we have a new note out from a couple of hours ago from goldman sach saying they think it looks like a much closer call than a few months ago however still

saying we think congress is slightly more likely than not to ignite a stimulus package. the democrats have put big numbers up on the table. politically, you'll see this come up before the election. >> we have to go, eamon. there was an article in the wall street journal that are 4 million people may have to quit their jobs to stay home and teach their kids as you know, virtual learning means you are basically teaching your kids. still up, disney's bet sending mulan straight to streaming turning out to be a good move.

biggest chip maker bouncing back over potential black listing. weighing whether to put export restrictions to the company. good news for the airline industry manufacture us are flying again. reporting passenger levels hit 968,000 on friday of labor day weekend. down 50% from last year tharks is the highest level since midmarch by 100,000 people berkshire hathaway cut its stake in wells fargo to about 137 million shares down from what it owned at the end of the second quarter. wells fargo down we are back after this ♪

♪ i keep working my way back to you, babe ♪ ♪ with a burning love inside ♪ yeah i'm working my way back to you, babe ♪

♪ and the happiness that died ♪ i let it get away servicenow. the smarter way to workflow. welcome back it looks like willie wonka and the chocolate factory may not be a big fiction. >> more on that, first we have to talk about disney and their decision may have worked in its

favor. the app saw 68% spike amid the movie's release. customer spending shot up 200% because of the subscribers now to brian's favorite story of the morning. one candy company owner looking to give away the keys. the founder of jelly belly hosting a hunt for prices and the ultimate prize is a key to one of his candy factories as well as a scholarship to a candy-making university. learn more at gold ticket.com. >> obviously a genius of marketing. two questions. one is big and the other private

and personal number, what is a candy making university and personal question, what is your favorite jelly belly flavor don't say buttered popcorn >> i have the same question about candy making university. i guess it is a university you learn how to make candy. who knew there were. i do not like jelly belly. you may tweet me >> not one >> nothing 600 flavors. >> nothing >> we are going to change that on our car ride. >> when you get back to the office >> buttered popcorn tastes like you dropped your popcorn on the

floor of the movie theater and someone stepped on it and you ate it >> nasdaq futures are down big a couple of months ago said once we got close tore a vaccine, the markets will sell off. back to explain more on the call we are back after this nasdaq futures implied open down 300. stick around a quick programming note path forward, race and opportunity in america taking a closer look at underreputation of black workers and leaders in corporate america and your ideas and solutions ceos, investors and entrepreneurs. that's tonight 7:00 p.m. eastern. look at that lineup. with err back after this organ sl collective of thought leaders

offers investors a broader view. ♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley.

this is a little in the weeds but shows what we were talking about when discussing on the options actions and why some of the biggest names became so volatile a monthly charlotte of single stock options. pulled out the faang stocks from others and everybody else. look at that options activity on single tech stocks has boomed. why is this random but interesting to you this is maybe why we've had such volatility some big funds got off their balance sheets and they had to hedge stocks to find the

exposure options action moving the stock market hand document, hopefully interesting. let's be joined now by founder of axiom finding now why the options market, be it seven or eight tech names has gone nuts kind of under the radar. you came on and talked about this hinted at it you've warned your clients about it as well what do you make of that and where that may ultimately end? >> it is clearly under speculation. we were building in a fairly large imbalance. it wasn't without reason it had a fairly good foundation. a lot of systematic was reading

the tea leaves the same way. the world is going on line and technology was a favored secto and as a result, a lot of money plowed in that momentum and it brought with it a feeling that individual investors felt that they were going to get on board. they were participating and clearly is a sign of speculation. so the danger in this is that we reached a peak in that speculation at a time when that was very high. trading at about 100 times earnings which was five times the market which oddly enough mirrors closely the 2,000 euro the companies today are much

more secure. the market was going to be more sensitive and i think the adjustment process is now under way as a lot of these chase the market up. this is what would happen if you do get an inflection point and people should brace for the process at that particular point in time? >> could that overall market go up if big tech goes down >> it is not going to work that way under the near term of the capitalization it is larger and it will have a dominant influence you can expect the index to come down you'll see areas like small cap, s&p and nasdaq 100 dominated by these high growth stocks what we are looking to try to

establish is some level where all three are satisfied with now this new rebalance of capital given the circumstance of more concrete time line to a vaccine. i think connecting the dots there means eventually we have a more normal monetary policy with less stimulus and normally functioning economy. that will be operating still with a limp, not in a wheelchair but a limp >> you may have called it a couple of months ago we appreciate you joining us nasdaq futures with implied open down 336 could be an ugly day have a great day thank you. that will do it for us here, nasdaq futures off more than 300 points on an implied open. we'll see you tomorrow "squawk box" will tick up the coverage of what could be

another big market day the united states postal service is here to deliver your packages. and the peace of mind of knowing that important things like your prescriptions, and ballots, are on their way. every day, all across america, we'll keep delivering for you. every day, all across america, lookentertainmentour experience: xfinity x1. it's the easiest way to watch live tv and all your favorite streaming apps. plus, x1 also includes peacock premium at no extra cost. this baby is the total package. it streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. yup, the best really did get better. magnificent. xfinity x1 just got even better, with peacock premium included at no additional cost. no strings attached.

there were tsunamis fourtin the world. and once they happened, we were in a major hurry to get to those regions to provide aid and support. it was very humbling to be able to help out all those people. it's my dream now to go into clean energy and whatever the next new fuel source is, that's where i want to be. i want to be on the front lines of implementation.

good morning futures pointing to a lower in that week we saw last week got almost down 10% at one point nasdaq almost corrected in three days nearing a plan to avoid a government shutdown. still no deal on a coronavirus relief package but they are back problems for boeing, the faa reportedly looking into quality control collapses in the company that go back almost a decade in this case, it is the dream liner. september 8 and "squawk box"