it's 9:00 a.m. at headquarters in denver. 11:00 a.m. on wall street and "squawk alley" is live ♪ ♪ ♪ see that stranger ♪ come over here ♪ you don't recognize him ♪ got a voice like sugar good wednesday morning, i'm carl quintanilla welcome to "squawk alley" with jon fortt, julia boorstin with us for the hour. trying to reclaim some critical levels here, jon s&p 3400, dow 28k. we'll see what happens later on in the session. >> yes and we are going to begin this hour with what's been a rough

few sessions for tech stocks losing over a trillion dollars in value in just the last three days josh lipton is sorting through the carnage and has more josh >> that's right, jon big-tech names suffering big losses take another look here at apple, minhaj, amazon, alphabet, facebook and tesla just to put the plunge into perspective. the last three days essentially wiping out three weeks of gains. at the start of this year, these six companies were worth about $5 trillion. their value then peaked at 8 trillion just last week. now they lost about 1 trillion sounds like a lot, but also keep in mind, the remarkable runs these stocks have had. for example, apple is trading about 15% off its all-time high. still up, though, about 60% so far this year. same goes with amazon. down about 6% so far this month, but the stock is still up more than 70% so far in 2020.

also, check out the smh, the etf that tracks the chips bouncing here this morning. trading about 10% off its most recent high. sector surge on the work from home trend but there are questions here about valuation and increasing tensions with china. among the names that got hit in yesterday's trade, applied materials, sky, qualcomm and nvidia even the big software names aren't unscathed the igv is now about 10% off its record high, too microsoft, sales force, adoe by and zoom came under pressure zoom, down about 20% from its all-time high reach on september 1st. but still up, get this, an incredible 470% so far this year julia, back to you >> well, josh, interesting we're seeing apple do quite a recovery today. certainly not recovering all those gains but up more than 4% and also just want to point out that those social stocks are making gains, twitter and snap

both up over 3.5%. facebook up 2.5% so we are seeing those moves higher bouncing off the losses the last couple days actually apple is up nearly 5%, jon. what do you make of this do you think this is part of a continued recovery or just a minor correction after the correction of the last three days >> yeah, julia i can't seem to bring myself to care about the tech wreck or what have you. it's like somebody goes to vegas, wins a million bucks and loses 100,000. boohoo for you i mean, yeah, if you were just trying to trade this market some of these stocks at the very peak, then you're feeling a little bit of pain, but i look at some of the biggest stocks in tech, apple, microsoft, amazon, alphabet, facebook, except for microsoft, which is down about half a percent for the month, they're all still higher even for the month. so carl, we'll see where we go from here. but this is nothing. >> yeah.

although nasdaq is down or was down 8% for september. we haven't had that happen since 2008 so obviously it's very tough to parse the intricacies of selloff. speaking of which, jeffrey solomon is with us to talk more about this good morning, jeff good to see you again. >> good to see you, carl. >> sounds like you also don't like the term of market selloff. in your view, all that's happened is that a few extremely high-flying players have been corrected the ones that were contributing a lot to overall indexes. >> yeah. i mean, when you strip out the activity in apple, microsoft, amazon, facebook, just those four names, it's such a big percentage of the move in the nasdaq and frankly the move in the s&p that, you know, you need to look i think investors need to look more carefully what's actually happening in the underlying names before you rush to judgment that this was a big -- that the run-up was real and that the sell-off was real it's a bunch of really big cat

names and cap-weighted indexes that are driving the overall index. but it's not really impacting what's happening below the surface that much. >> right so as we get back to school. we get some banks and other businesses bringing back employees. movie theaters open. what is -- how many catalysts do we really need to see the market truly broaden out? >> well, i certainly think, you know, look, we've been laser focussed on the vaccine, when is the vaccine going to come and when are things going to get back to normal and that is human. right? we all want to go back to the way it used to be. i never been a believer we're going to go back to the way it used to be exactly so what we're doing is adapting as humans. right? we're doing the things that we need to do either because we have to or because we need to create that social engagement, in person, in a respectful way and so what you're seeing is the economic activity off the back of that where people are out and about and figuring out a way to

navigate, maybe take a little more risk with themselves personally it's very normal and expected. and so the economic activity that we're seeing and the regrowth in some of the stocks that maybe aren't just the stay at home stocks is a function of the fact that it isn't as bad as everybody thought it was going to be because humans and consumers adapt. >> jeffrey, i want to go back to a point that you started with because we had a lot of these big mega-cap stocks a lot of them tech stocks that ran up big and we were excited. boy, look at the markets running up big and then those big names tank somewhat big, not as big as they ran up, but it looks when you're looking at the indexes like something really big is happening. where can we look if we can't even look at the s&p 500 anymore for a sense of what's happening broadly with stocks to sort of some degree sort of cancel out the mega-cap effect? >> yeah.

so what we tell investors and actually what we hear from our institutional investors which is primarily where we focus is the professional investor, you need to look at long-term trends and how those trends play out. you garner returns in a short period of time because the market catches up to where your views are. at the end of the day if you're not playing long-term trends like mobility, like the growth in artificial intelligence, like sustainability, like electric vehicles, like these are things that are going to last well into the next, you know, decade plus. and so, if you're focussed on those areas just below the big indexes you can actually make a fair amount of money at identifying stocks that are likely to do well even beyond what's happening in the immediacy of the virus and i think you can look at stocks in those industries regardless of what the political outcomes are going to be in november because at the end of the day, for example, 1 in 4 cars we project is going to be an electric vehicle by 2030 now, think about all of the

supply chain that has to be reconfigured, all the capital spending that has to go on in order to meet that and it's not because the government is mandated it's because what consumers want are electric vehicles. and so, that is a key trend that doesn't have anything to do with the big four names i just mentioned, specifically. it's a trend that's running in a bunch of different names in the s&p 500 or in the nasdaq you just got to look for them. >> jeff, you mentioned that you think ev will be a big trend regardless of what happens with the election come november. but i'm wondering how you're seeing the election and how important the outcome is to determine your perspective on the market and where things go from here? >> i think regardless of who gets elected there will be a tremendous amount of fiscal stimulus that occurs i'm not sure there will be fiscal stimulus that occurs before the election because it will be highly polite sized. whether a democrat or republican in the white house there will need to be a significant amount of fiscal spending that occurs

in order to get our cities and our towns back to some sort of fiscal stability that's going to happen so i think you can pretty much count on that. that's not democrat or republican that's just necessary. i also think the fed is going to be here for a very long time and it's the first time in my history i can ever remember the fed talking about that it's actually trying to promote inflation. i don't ever recall in 30 years hearing them say that. but that's certainly what chairman powell said last week so i think you can expect that the fed continues to be accommodative for the foreseeable future as this plays out. and that will happen whether it's a democrat or republican in the white house. and so what i've said to investors is there's going to be a lot of ranker. it might actually be more politicized than in any other election, presidential election, that i can remember, but a lot of that is simply posturing because when you sift through it from an economic standpoint a lot of policies are going to be the same because everybody at the end of the day gets around trying to figure out what to do to grow the economy, grow jobs

and that's a republican thing and a democrat thing both will be doing whatever they can to do that >> to that point, jeff, the press secretary this morning on fox was asked about the national debt and the way in which it's ballooned and she said that trump told her that addressing the debt is a big second-term priority is that also posturing >> you know, i think you have to say that if you're the president. again, i would say that if i were the president because at the end of the day the reason why we're able to do what we're doing in terms of fiscal spending is because the u.s. dollar is the world reserve currency i don't think there's enough understanding of what that means. that gives us tremendous amount of latitude to print dollars and do fiscal spending that other countries can't do so if the president doesn't get out there and tell everybody he is going to make sure that the dollars remains sacrosanct, that the dollar remains the world currency than we might have bigger problems. you're looking at potential tail

risk out into the future, it's what happens if the dollar is no longer the world's reserve currency and there, you know, i would say all bets are off but for the foreseeable future, i don't think we have anything to worry about on that front and the president is actually doing what he should be doing which is letting the world know we're going to address the ballooning deficit. that's what -- but again, i would say a democrat would say the same thing >> right that's a strong dollar policy. jeff, there's a lot to consider in the next 55 days for sure before the election. look forward to talking to you again. thanks >> like wise see you soon meantime, we just heard some news from american airlines, now getting an alert on united phil lebeau hasthat for us phil >> julia lots of airline news today. let's start with the united news the dropping 8k this morning in terms of passenger revenue, it will be slightly lower. it was expected to be down about

83%. now they're saying it will be down 85% capacity was expected to be down 65% in the third quarter now they're saying it's going to be down 70%. having said that united also announcing that it will be seeking opportunities on select international routes they're targeting africa and india. new routes to joe hansburg, south africa, also adding routes from the u.s. over to india. with all of that said, you still have a very weak state of the airline business, not only for united but for all the carriers. united daily cash burn in the third quarter is at $25 million a day. also take a look at the other airline stock. we talked about american just a few minutes ago. the transportation conference is going on american pointed out they may seek a larger federal loan from the treasury department. so, this is the pressure that you're seeing on the airline stocks today, guys >> all right phil lebeau, thank you

and still to come, tesla coming off its biggest one-day loss ever. apple countersuing epic games and rare comments from the ceo both netflix and facebook. big hour of "squawk alley" ntueinustwmites. all my favorite s right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪ before money, people tools, cattle, grain, even shells represented value. then currency came along. they made it out of copper, gold, silver, wampum. soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited

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sunday's were made for football on xfinity. that's simple, easy, awesome. add the more sports and entertainment package for nfl redzone. click, call or visit a store today to learn more. let's turn to apple. another stock having a rough time this week after a string of really good weeks. the biggest laggard so far on the dow although surging higher this morning and now countersuing epic games

after the fight over the app store policy continues brian white joins us now brian, good morning. >> hi, good morning, jon >> so, we got the announcement, the official announcement, from apple that we're going to see this event in a week that looks to be focussed on ipads, maybe watches. launch season has begun. how does this affect the stock and how will the details of this event you think color the way investors behave over the next few weeks? >> well, you know, this 20% very painful correction in apple occurred in just a couple days it was very fast and furious i think it creates very attractive entry point ahead of new product innovations in a world that is really accelerating its digital transformation >> so, we know that there are going to be new products there's almost nothing about them that's going to shock

but maybe we get a bundle on the services end should we expect more upside potentially depending on how they present their services moves versus what the products actually have? >> yeah. i think typically there isn't much movement around these events sometimes there's a selloff i think because apple really tanked ahead of this one it's an interesting setup. but i do think apple has an opportunity to have a couple events so, you know, they talked about in their last call that the new iphones could be later than usual. they have the benefit here of a virtual event which is much easier to put together than dragging people out for a couple events you can really exploit this up to your point, the first event if i were them i think i focus on apple watch and ipad, maybe some other innovations in the area of services, like you

talked about bundling some of the services and then i think i would have a second event in october with the iphone 12 family and other innovations maybe air tags, so on and so forth. so i think you can really separate these two events rather than just having it at one time. >> brian, how much do you expect 5g upgrades to really drive iphone sales this year do you think that 5g will have the same impact on consumers considering that many people are going to be staying home >> yeah. it's a great point i look at the iphone 12 family as really just the first step now in a very long multi-year 5g journey. it's going to entice some users to upgrade iphones and ipads and it's going to open up an entirely new world of services on planet apple which no one talks about, most of which we

can't dream act today. 5g it's great to get this year the coverage across the country and around the world is minor, there aren't a lot of services the economy is in the tank so, i don't look at this iphone 12 as like a major needle mover in terms of near-term but a step down the path that's very, very exciting for apple. >> all right brian white, thank you for being with us. now we want to move on to another stock that's had a lot of action that's tesla shares rebounding this morning after suffering it's biggest loss since going public, percentage wise, shedding around $80 billion of its market value yesterday. worth noting that's more than the combined market caps of both ford and gm. that's just the weight it lost craig irwin joins us good to see you.

>> definitely been a wild ride with tesla. >> it has. you had this neutral rating on it back in july. the stock has moved around so much i can't even tell. plus with the split. kind of where that puts you. but, based on what tesla is actually doing, looking at where the stock is now, what do you do >> so, i'm bearish i have $150 price target but i am not recommending people short this stock elon musk has far too many levers to pull there's a lot of good things going on at tesla. we'll have a mini car coming out. they'll be going into india. these are things that i think he's likely to announce towards the end of the year, maybe early next year. battery day cheerleaders out in force with their million mile battery or whatever they want to call it. reality is i don't think they have anything that the rest of the battery industry really doesn't already have but, there's a lot of people

that are big believers, want to believe. so i would say stay out of the way. it is egregiously overvalued almost being valued not for autonomous for tell poration they can lose $80 billion in value in one day like they did yesterday. musk is executing impeccably they're the world's leader in electric vehicles and there's a scarcity problem but there are many good companies coming fast. >> now, craig, how much is your neutral rating about the fact that tesla is not operating in a vacuum the other companies coming fast, as you just mentioned. we just had nikola take a huge move higher on the fact that gm bought a stake in the company. do you think that's going to be a real competitive threat? where does the whole landscape go from here >> so, there's a pretty vibrant landscape that i think is underappreciated by a lot of the people that have been buying

tesla. there are several car companies, several spaks coming to market at the moment. you can think of names like lordstown and fis car. nikola is executing well the management team there obviously has deep ties into automotive industry with people like gersky on its board you'll see a lot of really good things going on also in the fuel cell space, nikola is not the only company that's doing well but ballard and plug are executing impeccably you could see similar announcements out of these other companies. i just think investors are much better off in other names than tesla. >> interesting i wonder, is that because of rival technology or is there something about what gm brings to the party in terms of scale and engineering that made yesterday's announcement so special or so unique >> so, you know, usually when there's a tier 1 automotive oem

ties up with an emerging technology play, what you have is two companies with very different dna coming together and picking the most positive points from both sides of the agreement. you know, nikola saw the benefit of that yesterday in their evaluation you can see the same kind of thing show up for other companies in space over the next number of months you know, general motors is not the only company that really wants to see some exciting participation here you know, i would expect some of the europeans to be very active in conversations with potential partners and obviously the chinese oem tied up as well, ballard has very interesting chinese partners overall, the space i think is vibrant going through a lot of evolution and, you know, i really have to give credit to tesla for getting the party started. >> yeah. bearish but not telling people to short it. that's worth noting. craig, thank you

>> thank you. after the break, take a look at shares of stitchfix moving higher after deutsche bank calling it one of the best possible beneficiaries of lock jouns. that stock has been on a tear over the past month. up nearly 30%. we'll keep an eye on that. mo "ua aeyisexresqwkll" nt. when the world gets complicated, a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. that's the clarity you get with fidelity wealth management.

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from california through oregon to washington. many of them unchecked strong winds are driving their growth and in washington more acres burned in a single day than firefighters usually see in an entire year this new mexico town getting its earliest snow since records began back in 1971 up to 8 inches of snow expected with temperatures falling into the 20s. amazon announcing its 2020 career day will be held next wednesday, offering 33,000 corporate and tech jobs nationwide not surprisingly, this year's event will be virtual. and there's a new study out suggesting the chance of getting covid-19 in the hospital is very low. researchers looked at 9,000 people treated between march and may. and found only 1 patient infected at the hospital who likely got it from a visiting spouse you are up to date quewuptehe ns da "sawk alley" is back in a minute heading into retirement you want to follow your passions

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we're going to turn back to today's market action here at the bottom of the hour wed wishes ahead of technology and media training joel joins us long along the david katz. joel, i'm going to start with you. we have seen so much volatility, you know, the tech stocks just bouncing back today. apple up 4.5%. tesla up nearly 6% it sounds like you're focussed on this disconnect between what's happening in tech and what's happening in the rest of the market what are you see heeing here >> it really just provided us some evidence and confirmation that the recent move in tech specifically in august really got untethered from fundamentals under the hood whether it's elevated option activities that have obviously faded over the past week or so

but i think tech, you know, clearly the poster child for growth and momentum. coming out of covid we have seen trends only accelerate, you know, whether it's digital transformations, shift to the cloud, rise of ecommerce, video games obviously have been exploding as well. so tech is clearly the market leader i think it's been healthy. but a lot of the guys i talk to there's been so sense of panic and a lot does feel like broad-based derisking more than anything as well and you look at a day like tuesday, you know, even energy financials got carried out as well it does feel like guys are going into performance protection mode with the election just two months out. >> david, do you agree how should investors take that three-day selloff, is it a warning? >> we don't think the bubble has burst but we think that investors want to look at that and understand when the tech bubble does burst and when it does go down it's going to come out of nowhere and be very

swift. you saw a lot of companies sell off 20% very quickly they're rebounding some today, but the key is look at that as a warning. we don't think the bubble is bursting now, but if you have companies that are selling above 50, or 70 or 100 times earnings when they're rallying, you want to take money off the table rather than plowing into that rally. >> makes sense stocks that go up for no fundamental reason will come down for no fundamental reason i wonder about the product launches we're about to see. we have pricing on a couple of different models from microsoft, xbox, that's not just a product but platform for games that will follow interesting they have this financing plan that's also connected to their services. apple has been pushing on financing plans as well for the iphone given how low interest rates are, do you expect those kinds of financing plans to be important for holiday? >> i mean, i haven't -- it hasn't come up in too many conversations i've had

clear they're trying to attract consumers that maybe don't have the financial means to kind of put -- to buy things up front. they're trying to be more creative to increase their tam a little bit and reach more consumers. but, yeah. so far it's like, you know, we have the apple event on september 15th you mentioned xbox and sony are both launching the new consoles in november. so there's a clear awareness out there from these tech players that a lot of people in the economy are struggling unfortunately it's at the lower end. especially those in the service industry so they're trying to kind of not alienate that part of the market it makes sense to be creative in how they can reach those people. >> given that, david katz, is the market overreliant on a consumer that's so stretched or are these types of moves marketing wise and financing wise to move instruct going to come through once again? >> we think it makes sense we think it will come through

once again speaking with banks, a lot of them have mentioned they think consumer balances in the bank accounts are higher today than when we went into the covid crisis the government bailout is working at a fairly meaningful way. people have money. so we do think if there's any sort of light at the end of the tunnel with covid and people feel that the economy is going to be getting better next year, they will continue spending. in the meantime, plans that you're talking about will help them get through that gap. >> joel, you know, when it comes to consumer technology, i've read a couple of takes this morning that argue, you know, we all summer long households realized they would have to set up shop at home. so they got extra laptops. they got extra phones for their kids and whether that stays the same or whether they go back to work, a lot of that demand is in the classic pull forward and that could mean tough comps coming up in the following year. does that ring true to you >> i think so. i mean, i think when we start getting into 2021 and these

companies are facing some serious lapse which will probably be impossible to beat and in tech as david mentioned as well when you start seeing the eye watering valuations we have seen in the cloud complex, it will be tough to keep up the growth, to justify the multiples that we have been seeing of late especially so when you get a name like zoom lose 30 billion overnight and seen it obviously in other high flying tech names as well. that's a big issue for 2021. hence i think the names you want to have more expo sure to are more defense names look at names like salesforce.com, micro soft to buy and hold disney continues to act well and then kind of stick to more defensive names that are liquid and you won't get blown up 15, 20% on a headline overnight. again that is more align with guys wanting to be more

defensive in their positioning heading into next year >> yeah. you mentioned disney and microsoft. interesting seeing how disney in particular has bounced back from some of those lows david, i'm curious to hear your response to that what are the defensive sectors or individual stocks you see as an opportunity right now >> well n terms of technology, cisco has had a no-demand this year or sell-off in demand we think that's a good place to be that's more defensive in terms of other industries, we have not liked utilities for a long time. they have been miserable performers this year as a result we have warmed up to them in a meaningful way we liked telecom at&t just spoke today and we thought their outlook was good consumer staples have valleyed and given some of that back. those are more defensive names we think the market will focus

on in the next 6 to 12 months rather than what they're doing right now which is obsession with the internet and technology >> i guess in terms of the risk associated with internet and technology, joel, i'm going to give you the last question here. and it's about the conflict between china and the u.s. and the kind of overhang that could have on this tech sector >> yeah. as we saw when things heated up before with huawei semiconductors are at the forefront of this battle many would argue that a blacklist of smic is a much bigger deal than huawei. obviously huawei is a bee hee meth when it comes to 5g equipment and smart phone player as well. smic are the key catalyst for china to become less dependent on silicon and ramp up their semiconductor internally that could have a huge ripple effect, you know, if a blacklist was mentioned. obviously semicaps would get

absolutely destroyed they were the worst performing pocket of tech yesterday china and smic specifically have been -- a big source of rev upside there if you see china trump kind of talk up the china, you know, reer toic, i think this semicaps will be most at risk and i think you'll see buying very hesitant to say the least i think to get his base more on his side, you know, trump will probably use china as his punching bag for the next few months. >> david, i'll pose the same question to you. how should investors be thinking about the china/u.s. tensions? >> that's one of our biggest concerns in terms of the economy. in terms of market if trump were to win he thinks in earnest he can decouple from china, that will cause enormous pain to the u.s. economy, technology and the stock market so that's one thing you really want to pay attention to

if you think that trump will follow through with that, you want to be a lot more cautious in your equity allocation right now. >> certainly a lot of big potential catalysts to watch thank you, joel, and david we really appreciate you chatting with us this morning. >> thanks. ♪ still ahead, remember the paypal mafia, one of the president's few supporters in the valley and the controversial vc behind one of this year's biggest public debuts inside peter teal's empire after the break. before money, people traded goods.

tools, cattle, grain, even shells represented value. then currency came along. they made it out of copper, gold, silver, wampum. soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. that's why it's time for digital currency and your investment in the grayscale funds. go digital. go grayscale.

welcome back last night cnbc hosted a special, "the path forward" race opportunity in america we looked at the data on black talent in companies and where there's room for progress. i had a chance to talk to my old friend lloyd pierce head coach of the atlanta hawks and one of five black coaches in the nba. he talked about the importance of representation across industries. >> i didn't grow up seeing a lot

of black coaches so i never really thought about being a coach. and when the opportunity came, and i was able and naturally able to just move forward. i have to be the example for the young generation of black men and black women so they see that already other things that they're capable of becoming and one is a coach and one is a commentator on a business tv show >> guys, i strongly believe the common ground we're likely to find on this across political lines is equal access to opportunity. in a capitalist system when it's running the way it should we don't try to mandate equal outcomes but the whole economy will do better if everybody has a fair shot. and jon, i know this is something we talked about a lot offline, but it's really interesting just looking at the potential economic opportunity here if companies, if entrepreneurship, venture capital investors can have a

more diverse assortment of people invested, there's so many studies looking how diverse teams perform better, diverse management teams at companies have better stock performance. so this really seems, jon, like just a massive overlooked economic opportunity and if it can be tapped into right now could really help fuel growth for this country at a time when we're really going to need it coming out of this crisis. >> the stories were interesting and they're important because we talked about this before, a lot of investors, sand hill road, for example, they look for the hoodie wearing college dropout who doesn't always come in multiple different shades. or multiple different genders for that matter. so there are lots of different pockets of opportunity we're just talking about stitch fix. that was started by a woman who did not drop out of school and is doing quite well in the markets these days tomorrow, don't miss another big event cnbc's inclusion in action that will examine how business leaders can take immediate action addressing racial

disparities in their organizations, create sustainable solutions and allow for equity and opportunity for all. that's programmed in partnership with the executive leadership council, the event will feature conversations with ibm, carnival, washington football team president and a lot more. join us tomorrow 2:00 p.m. eastern and register at cnbc events.com/inclusion ♪ jon, that was a great show last night and i look forward to watching that tomorrow. jon, we should also note, don't miss another big show next hour. "halftime" has ken frazier, united ceo oscar munos and a ton more it all goes down in just about ten minutes. so stay wi uths. when the world gets complicated,

a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. that's the clarity you get with fidelity wealth management.

some of the valleys's biggest names set to go public and a lot have something in common, a link to peter teal diedra bow is a has more on this year's biggest ipos. diedra >> jon, call it the empire from paypal mafia to facebook comember, tech's most prominent trump supporter, he is one of silicon valley's most important power player except he doesn't like silicon valley. rerelocated to l.a., unsatisfied with the left-leaning politics with the bay area calling silicon valley a one-party state. he hasn't spoken much to media and declined an interview with

us today but his hand and perhaps his influence can be seen in the upcoming class of tech listings. his vc firm founder's fund an early investors airbnb he was an individual investor in asana at their seed stage and of course he helped found p palantir with founder shares now, palantir also recently left the bay area moving its headquarters to denver echoing the dissatisfaction with the valley ceo alex karp quited the increasing tolerance and mono culture of silicon valley it went further criticizing other tech companies that, quote, sell, collect or mind data built on advertising dollars. agree or disagree with those sentiments they certainly do things differently and we're seeing some of the company's backed by him or his network do public listings a little

differently as well. instead of traditional ipos. palantir and asana are doing direct listings. we do not know if this was thiel's influence, it's worth watching what this new crop of public companies do and how they behave and might be different from what we're used to from the valley back over to you, julia. >> it's really interesting and certainly seems like palantir's decision to move to colorado must have been influenced by thiel, a chairman of palantir. i wonder if you have a sense of how much he's involved in each of these companies obviously he's chairman of palantir but also has this investing business where do you think he's spendings majority of his time right now? >> well, julia, as you know very well, he's also a facebook board member so, he is busy he has a ton more investments. we only talked about the ones of the companies that are pursuing public listings. so, i doubt that he's very

involved except for the ones that he's on the board or helped found like palantir, but certainly with that letter from alex karp-a lot of that sentiment has been something that thiel has been saying for years already. many in the valley were shocked by it. but this is something that we've heard fromit, but this is somet we've heard over the last few years. certainly at a place like palantir where some of the other smaller companies, it's unlikely he's super involved. >> it's amazing to me, either peter thiel or paypal itself is like the kevin bacon, connected to everything. elon musk, of course, was connected to paypal, max lefcih, invested in fin tech at this point.

>> yeah. with very different philosophies as well, right, jon? you named all these people who have become hugely influential people, but with different views. let me float something by you. palantir mafia, that could be the next one we see. we've seen so many go on to do different things that's another company to keep your eye on, especially with the same values, perhaps, or at least willingness to do things differently. >> yeah, i don't know, we'll watch that you have the youtube guys who came out of the paypal as well yelp came out of that. they have a lot of work to do if they want the good side of mafia status deirdre, thanks. we're keeping our eyes on shares of slack today. boy, it's getting slammed, down

16% besides beating the street's estimates. they didn't want to do much on guidance, you can see, again that stock down a little more than 16% st wh 'rback in two. what if you coule the perspective to see more? at morgan stanley, a global 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. come on in, we're open. ♪ all we do is hand you the bag. simple. done. we adapt and we change.

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it's been a rough few days for big-tech momentum names. tesla tumbling more than 20%, but many recovering their losses today. netflix down, and reed hastings discussed the volatility on "squawk box" this morning. >> well, from what i was reading, it's not very softbank sort of driven

i'm not shush, but i have really focused very well on the things i can't control, such as the markets and focus almost entirely on our employees, our customers, our series, our films that's again an area i can have some -- >> do you buy stocks >> index fund investor for at least a decade. >> that's it >> there's netflix and passive i'm very barbell >> that's very reed hastings mark zuckerberg taking a dig at apple and app stores on hbo last night, saying it deserves scrutiny. >> is the apple app store a monopoly >> well, i certainly think that they have -- they have the unilateral control of what gets on the phones in terms of apps

i think it's about 50% of americans that have smartphones, and around the world there's more than a billion apple devices. so i do think there are questions that people should be looking into about that control of the app store >> this, of course, comes as the conflict between apple and the companies that distribute their app and pay a fee through the app store heats up there's a countersuit between apple and epic, the video game maker of fortnite and other companies have joined in in the criticism. we got news on american airlines a moment ago. now there's other news from united we'll turn to phil lebeau. >> take a look at shares of united remember, it was just a few weeks ago that the company

said as part of the planned furlough, 16,000 employees on october 1st, it was going to furlough about 258 pilots. the union has reached an agreement in principles so there won't be pilots furloughed you're not seeing a lot of reaction, because to a certain extent, there was expectation on wall street that they perhaps could be an agreement like this. now we have learned that united pilots and the airline have reached an agreement in principle to avoid 2,850 pilots being furloughed october 1st guys, back to you. >> julia, you know you've been watching american tower and its impact on 5g it'ses -- its

position is as the largest owner of wireless towers across the u.s. with 40,000 nationwide. it's helped to profit from this new standard the stockis up over 40% from the march lows, and up over 180% over the last five years a key factor driving american tower stock higher is t mobile's integration of sprint annu all carriers will be deploys new spectrum over the next year. it's a buy rating on the stock deutsche bank tells us we continue to view amt as the top beneficiary of global mobile data growth over the long term

jon, it seems like we're going to continue to hear a lot about 5g, especially with apple announcing 5g-capable phones will be out later this year. >> i wonder if investors are factors in the controversy of 5g placement on towers, especial closer to homes. some people don't like that. >> yeah, that's controversial, about you it seems like 5g is here to say. there may be pushback, but it seems all the carries are committed and invested a huge amount so certainly something to wall as both the telcos and handset makers move forward. >> the next few weeks will be interesting as we get the new product introductions, of course guys we're close to session highs, nasdaq holding on to the best left since about april 29th one of the key elements is the

technical levels we recovered. dow is at 28k, levels of course we lost last week and we are anxious to get back. there's been interesting new flow the last few moments let's get to the judge and the half welcome to the "halftime report." the comeback to stocks are our story as well welcome the quick est it recovery. brad gerstner is the keismt o of altimeter, with a challenge to increase african-american representation on corporate boards we'll get to that in a big