sitive note. relief bill fails in the senate. peloton shares soar. we'll speak to the ceo live. maybe i'll get on there while we are talking to him friday, september 11 19 years 2020 "squawk box" begins right now. >> good morning. welcome to "squawk box" here andrew ross sorkin along with joe kernen becky is off today we have green ar owes to end the week.

nasdaq up 151 points and looking to open about 31 points higher it has been a wild ride for investors all week the dow and s&p are down over 2% the last three trading sessions the s&p on pace for its worst two-week performance the nasdaq has been a big mover. a lot to chew on after a tough week >> true, andrew. tough in that it had been up so much we sort of glossed over september 11

19 years when you say it, don't you say, oh, my god, september 11 for you, it is about half your life for me, about a third of my life it went really quickly 19 years i remember so well mark hanes and everything else that happened. year after year, constantly on september 11, it is amazing how quickly time goes. since last year, we've seen our share of tragedy as well >> up until this pandemic, we'll see how history looks at all of this i would argue that 9/11 was the most consequential thing that happened in the past 50 years,

maybe 100 years with security and how we live. you can define the world in many ways by that morning i remember that morning all too well as i know you do too. >> andrew, we are still seeing veteran suicides from wars that were spawned by what happened that dachlt it affects people every and every day, the after affects. as you say, everything we do at airports it really was consequent al. we wouldn't be surprised if 19 years from now, there are remnants of the pandemic that will happen as well.

anyway, these guys in washington in washington news we can talk about it you don't get everything you want, so you don't do anything it is kind of weird. they do a lot of stuff down there. they know it is not going to happen both sides do things they did this, you did this anyway senate republicans advanced -- failed to advance that stimulus. they fell short of the 60 votes. it was unclear whether mcconnell had 52 rand paul was the one republican that voted against it. for a while mcconnell was cagey and not talking about. then he got everybody except for

rand paul. 52-47. that included reinstating enhanced unemployment insurance $300 that is down from the previous $600 and also would authorize small business loans the dras calldemocrats called i inadequate if we end up with nothing because these guys want to go home to campaign should you have done this? >> should have they made the attempt? i don't know. it drives them crazy.

>> what is so unique about this. right now there is a lot of people who conventional wisdom they need that it will by p perilous for the economy some have come on and said the economy is stronger and given the hurt that still exists out there. it is very interesting in terms of what that looks like right now. there are places we could target on the other hand, a weird position for republicans and president trump to be in where

they want to do more even add more prior to the election then again, they are making the case, the economy is already back. we don't need a v shape. it happens so often. they say one thangd then they are saying something completely counter what they said you got to get used to it. i should have taken political science. you think they taught you how to interpret. >> the science they taught you at mit was much more real science than the science of economics. >> this is an art that you can't understand >> let's talk about a couple of different stocks

you were mentioning your peloton. i think it is to your right. the sorkin family also contributed because we bought ourselves a peloton tread, the treadmill. the company posting the first quarterly profit revenue tripled. peloton said subscriptions for remote classes reached 1.1 million. also increasing production to include wait times shares are up more than 200% alone this year, peloton ceo john foley will be with us at 7:45 eastern time also announcing this week, a new peloton bike and new peloton treadmill. so a lot more coming from that

company. they want to become the apple of electronic fitness they may be on their way >> what prompted you to go with the peloton treadmill? is it the software do they have people saying, come on, andrew, go it is a hill do they have people motivating you? or is it soft like a wood way? >> it is like a wood way thetechnicals are pretty great the other element for us, my wife specifically, i try to keep up with her. i can't keep up with her half the time she was a big barry's boot camp goer in new york city which is on a treadmill and then weights. so this is the closest thing to

rep kate i will tell you. the machine is expensive they are coming out with a cheaper machine because they are charging so much it cost us a lot of money, we are privileged to be able to buy one. it is also a big thing it is large. unlike the bike that you could fit in a corner. >> it fits in a corner it is over there that's exactly where it is don't tell the guy your wife used to kick your ass in that other thing, you would do that running through the mud and under the cable. >> back in the days when we did the tough mudder she's super woman. i'm just along for the ride. i told you, i know who the boss

is always >> you do. i know all right, coming up, dr. fauci warning the u.s. needs to hunker down for fall and winter we'll talk to dr. scott gottlieb about that as we head to break, check out this morning's biggest dow winners and losers those stocks are up. you are watching "squawk box" on cnbc

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dr. fauci is warning, in his words, that the u.s. needs to hunker down for fall and winter. >> i think as we get to the fall and do more indoor things, we are likely going to see up ticks of covid-19. >> president trump responding to bob woodward's new book accusing him of playing down the dangers of coronavirus >> as the british government advised the british people in the face of world war ii, keep calm and carry on. that's what i did. this whack job that wrote the book they wanted many he to come out and scream, people are dying

no, no we did it just the right way we have to be calm we don't want to be crazed lunatics we have to lead. joining us now dr. scott gottlieb, former fda commissioner he serves on the board of a loom gn -- a loillumina and pfizer. the president on tape saying he haddown -- had downplayed it for a reason to avoid panic. >> it wasn't just the president. you look at health officials as well, they were issuing reassuring messages over the month of february. that's the month i would focus on by march, there were more

warnings coming out and a more sober analysis the question is if there was a more sober analysis in february, would we have done things differently and stopped the spread that was clearly happening. the reality over the month, and i'm had discussions with the white house. the white house staff being told by a lot of health leaders that the virus wasn't spreading here. they were confident there wasn't a spread in the united states. they were using illness surveillance network they try to track people presenting wi presenting with flu-like symptoms they weren't seeing any up tick. they assumed there for, coronavirus couldn't be spreading in the u.s we now know that this was spreading. we know the influence of illness surveillance network was very insensitive because coronavirus

doesn't present like the flu in many cases i was having detailed discussions with them over that month and hearing back from them that they were pushing health officials and political folks and policy people who weren't health people being told it wasn't spreading in the united states i suspect some of the president's comments reflected he wasn't being told it was here in the u.s. yet. >> you know, scott, there is a whole sub group of the population that still thinks the lockdowns were too much and we did too much in terms of hurting the economy, for example, in new york, instead of closing down the economy and not protecting the elderly people that you should have protected elderly people and kept things over there is a story that asks, the

president resisted panic and presented more a authoritarian response some say he already did too much the reason we are having some what of a v-shaped recovery is because we didn't overreact. >> let me give you my perspective of that. we had to shut down new york city and probably did a little too late the health care system in new york, the biggest, largest system was on the brink of collapse it was a covid only system for a period of time we probably didn't have to have stay at home orders in louisiana, and other cities. did we have to do it in dallas probably not in miami we don't know. the lack of awareness at the

time will be remembered as the great failing. with he had to assume it was spreading more widely at that point than it was. had we not shut down the south at that time, when it got to the south, maybe we would have had more support or mitigation but by that time, people were exhausted. this is part of the pandemic planning in 2006, it always assumed you would have a diagnostic test and know where it was spreading and you would just implement where it was spreading. in february and march, we had to assume it was spreading everywhere because we had no testing. that will be the key missing element here to have a more effective response >> that was a cdc problem? >> wasn't just cdc they didn't have the diagnostic test available as they should

have to roll out but we should have worked earlier in january with the large labs like labcorp and quest, we should have been working with the big labs. it takes them a month or two to get on line. their capacity didn't come on line until april or late february, actually >> doctor, to follow up. i have two questions i will not disagree with you about february there was a lot of misinformation inside the white house by many of the professionals who may not havefully understofully understood the question i have is where the president's mind was and the administration on march 19 when he made the comment that he purposely was down playing the

virus. that was a very different time purposely downplaying it in march had a huge impact with masking. there was a huge debate whether there was enough masks and what they should be telling the public about social distancing take new york out of it because a lot of these things were not known. but by march 19, a lot more was known. you had the rallies the president was pursuing so many other things the president was doing relative to the things you were saying on air was almost at complete odds. you are very careful with your words. >> look, the statements out of the administration have been a mixed bag. no doubt march 19, i saw that comment in the book i don't know what time period

the president was referring to march 19, they announced the 15-days to slow the spread they had taken aggressive steps by that point. they had taken it seriously. i had a conversation around that time period. the white house mood had clearly changed in the white house an around the president that's why i focus more on what happened in february to me, that is the more critical time frame where we could have slowed the spread in march as we reached the stay at home order that's why we focus on what was being said in february in march, the white house was or was not saying things. most of the general public was aware and leadership and governors were echoing more at that point they were becoming more sober to

the looming threat >> i would take issue with that. that was perhaps true in the places like new york where they were getting hit in texas, florida, california that ultimately did get hit, it was as if nothing had happened in part, i would argue, at least some of the messaging out of washington you don't agree with that? >> no. i think that's fair. we were very late. ied talked about it on the show the idea of recommending masks more widely. we were late to implement that some of the mixed messaging have down-played the risk it came from the president too really hardened the view among some people that this was a diminished threat. people have review on this and it is not going to change. their view is one of too much

come place an si they are taking too much steps that will not reduce their risk. >> doctor -- >> we just -- we just saw a trump tweet. congratulations to jp morgan chase for ordering everyone back to office on september 21. will always be better than working from home. i want to get your opinion on this >> when i talk to businesses, they are trying to bring people back to the office, i'm talking new york there is a lot of reluctant to come back. people have become socialized to a different way of working now there is a fear associated with it particularly mass transit. businesses are still struggling

with how to implement a safe work environment how do they bring workers in in ways that are safe you can stagger work hours businesses are struggling with this all the set ups in the fall indicate that risk of spread will probably go up, not down. >> i hear europe is better and then i hear france has a lot of new cases. what is happening. they were earlier with it. are we seeing troubling signs over there or is it positive >> it is troubling you are seeing cases go up particularly in france you mention spain as well.

they change over their seasons earlier. it could be ahead of what is happening here they went back to school and businesses the risk is still up here. i still believe we have exposure in this country. in certain cities where you have dense outbreaks. we haven't reached herd immunity where this is going to stop spreading. >> real quick on jp morgan you have the tale of two stories. you have the google and facebooks saying we are not going back until june or july. mark zuckerberg said we are not doing it because we don't have to we are making sure other people who need to get back to work can without raising the risk level ourselves. that's the argument on one end

then you have jp morgan saying we need to get back to work. we need to get back into our offices. who is right >> i don't know what facebook is thinking around this question. it is true, if you can dedensify things like mass transit, you'll create a safer environment i think the challenges becaus businesses will have to face besides protecting their work force is that a lot of people will be reluctant to go to the office in the winter when flu season picks up. they'll need a lot of measures in place to ensure they can get

themselves screened. >> great doctor, thank you for this conversation we look forward to doing another with you very, very soon on the other side of this break, new details of why citi group ceo is retiring earlier than expected setting up the first woman to run a major bank. check out shares of oracle an increased focus on cloud based products and services. the big question now, will they buy tiktok online, or in your office, we're here to listen and provide solutions that help you run your business better. because the decisions you make have far reaching implications. and a relationship with a corporate bank like pnc can provide just what you need. as one of the nation's largest banks, pnc brings customized insights and a local approach. to make informed choices now and in the future.

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welcome back to "squawk box. citi has appointed its new ceo she'll be the first woman ceo. but a report that the former ceo exited earlier than expected i want to talk to the author of that story to get the backstory. banking reporter great to see you great reporting.

walk us through what happened here >> october 2019, winning the race she said, look, i'm getting calls from other places for other jobs you have to let me know if i have a reason to stay. basically, she won that race at the time, people that they spoke to said mike corbit was going to continue being ceo for two to three years october 21 to at least 2022. huge news that he's leaving in february that is without a doubt an acceleration of his plan

>> you are arguing the regulatory problem the company is facing right now? >> right senior insiders said, look, they have told citi their technology and infrastructure has been substandard. banks, this is always a conversation they are working on it what happens in august, they've delivered nearly a billion to hedge fund lenders it strikes at the heart of what banks do, which is to hold money responsibly. at this point, the jig is up people i spoke to said this. for years, they were under the gun. they would try to hit targets

for the expense ratio. it was his decision. one of the dings he gets the other is share prices, which is the worst of the six big banks. >> just to put a fine point on it are you saying and i'm curious what citi is saying back to you, that effectively he was forced out in the course of this or that he did this voluntarily >> what i'm saying specifically is that he accelerated the time line he said this is clear, everybody agrees, she's going to be the next person but in two to three years. it is undeniable he accelerated that the people i talk to say the reason he did that is because he

was under pressure from value act, an active hedge fund. for investors, their patience is not infinite when you look at worst in class share returns, these are reasons he said he'll pack it up if there is going to be change, you might as well go to that change earlier than expected >> good reporting. thank you for bringing us that story. >> thank you coming up, stocks driving the market swings. faang names whipping things around we'll be right back. as business moves forward, we're all changing the way things get done. like how we redefine collaboration...

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this is the yes, a new way to shop that's completely tailored to you, with hundreds of your favorite fashion brands. tell us what you love and what you don't. the more you yes and no, the more we get you. we will build a shoppable feed that's so you. no two feeds are alike.

this is shopping made genius. download the app and shop in a whole new way. good morning microsoft is warning russian hackers that disrupted the 2016 election is once again disrupting political parties microsoft said china and others have also tried but they said those attempts were not successful president trump says the deadline for bytedance to unload their u.s. operations will not be extended. adding urge ens si to the discussion of microsoft and

oracle bytedance can sell the u.s. portion or have it banned in the u.s. as you were watching yesterday, they were up, down, out, they were in. by the end of the session, it was another ugly one that's where we are this morning. the nasdaq tried leave the early morning higher briefly succeeded. we'll see. it is friday we are going to talk about it right now and maybe berry with the silent k has an idea >> let's go to him right now given how crazy things have been all week managing partner and director of research good morning to you both barry, you've albon hot and cold more recently.

i wonder if you are hot or cold in the market right now? >> i had been looking for a pull back in the august/september time frame on august 22, we decided to down grade the tech sector. i've been overrated going back some longer term, my concerns about the technology sector, i've expressed this a number of times. the movement to the cloud will start to move from producers to consumers. health care companies. you had on honeywell yesterday i think that process is going to occur. i also think that risk is building around the sector if you go back to jackson hole,

there was a paper arguing that the diffusion of that technology across the economy has slowed because of the dominance of these winner takes most companies. you had a princeton professor arguing something similar. you had both ends of the spectrum arguing the same thing. those risks will grow. i don't think we are in the same situation as in the 90s where we would have a huge build out and not have a software bust per sigh the thing that raised my concerns was this increase in volatility in the vxn while the market was still turned up that is attributable for upside

calls. some of that may have been retail and some led to this risk what you are supposed to be doing with this risk off event is buying cyclicals and not so much piling back into tech i think tech will take time to work through the excessive speculation that went on through the summer down 10%, you should be a two-handed buyer but not on the tech sector necessarily. >> not on the tech stocks. what about craig, are you on the same page or no? >> some what there is parts of the market very, very overvalued. at hodges capital, where we think you could vest and leave the country and come back in good shape is the housing area

we see a giant deurbanization theme going on amid covid and restriction unrest all of this is happening at a very time when companies in the first time in history are having a giant majority of their employees working from home. also, you have millennials, which is 72 million people the biggest demographic in history. they starting to move out of armts and buying home. this is all happening with historic interest rates. and there is a housing shortage. there is a lot of ways to play this housing theme over the next three years. housing stocks are one but there are so many ways to play it. remodelling like a home depot, building supply like owens

corning. furniture companies like restoration hardware mattress companies like sleep number mortgage companies home gym like peloton. >> are you buying at some point? this week? >> no. >> no? why not? >> there is so much uncertainty. i think there is a lot of opportunities out there. there is no reason to go in with both feet. there will be some easy money made out there that have been some what ignored by the market. there is a lot of focus on tech and a lot of interest in the tech area with a lot of people slowly but surely seeing tech. like i said earlier, you could leave the country and come back in a handful of years and be

well served. >> we appreciate your time and perspective. i'm staying in the country for now. we'll see. appreciate it. joe? >> all right thank you for the warning. much more squawk still to come first, check out shares of chewy. up more than 100%. check out the dollar this morning. stay tuned you are watching "squawk box" on bc clean is a feeling.

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the nfl returns. the long-awaited regular season kicked off last night on nbc with the defending champs, kansas city chiefs, defeating the houston texans, 34-20. fans were placing bets lou mayonne, president and co-founder of sports grid joins us to talk about night one back in the stadium sports grid is the nation's first 24 hour free network for the sports wagering audience i've got some questions for you, lou, that are both general and specific because i'm trying to figure this out. this sounds good let's first talk about the reception last night and how excited people were and whether that's an indication of the pent-up demand people are seeing

for things like the nfl. i've been watching the nba games. the nfl came on a little bit too late what about that? >> yeah. i think the -- i think the pent-up demand is there. we're seeing it through the numbers. i mean, you have the viewership there. to me, that's where i like to look at, the viewer ship i like to look at the excitement, the action being placed, the bets it was up 52% just on the action placed in new jersey that's big news. that's big news for us >> do you think that the incremental effect that online gaming or gambling -- not gaming but gambling is going to have is fully appreciated by everyone yet? it's not in enough states, i don't think, to be fully appreciated, but it's going to become integral to what all

these teams are worth and what networks have to pay to broadcast. i mean, it's going to be -- you're going to see the difference, don't you think? >> joe, that's a great question. we've talked about this before on your show you have three things going for you. one, you have the excitement of sports gambling and moving through the states, but you have to remember, it's all about the money. we talk about this on your show all the time it's about money from the state's point of view. remember, they need revenue. now, it also is from the operator's standpoint. they need customers. they can't be 22% penetration in market access. they have to have national exposure how do you get national exposure it's simple, you have to get in more states. getting in more states creates more dollars and more demand it helps out the revenue base for the states going under. >> here's one of my customers. 24 hours you're like the cnbc of sports wagering so let's say that i am

interested in a game and like a half hour before the game starts i find out that kershaw's -- his elbow hurts. he's come out. will i see that there? and then i can say, i'm not -- i've got to totally change what i thought i was going to do there. can you help me there? >> if you go on any of the digital platforms right now, the free plays, the rokus of the world, samsungs, go on your tv if it's after 2016 go on sportsgrid you'll see a rack. we'll parallel it. we talked about this to the financial community we're going after great talent what's great for you, you can watch it in the background like traders on the floor, it will tell you who's hurt, injured, arrows going up and down on the teams and the lines. we have a wrap around our programming. just like you are on tv, you

have joe, becky, you guys are there, but around it is all the tickers and things that you need that's our wrap. that's syndicated. doesn't have to be on our channel. can be on your channel can be anywhere. that becomes the app people can have on the go it's a cool process that we're going through and we're seeing incredible numbers, joe. it is insane how many people are watching sportsgrid. >> do you do any explaining how to do -- i can only do like one thing. do you do like different parlays or like when the game is actually on, i don't know if i actually want to know anymore. are there any tutorials? we do tutorials sometimes on cnbc i love that you used to be at deutsche bank. there was too much gambling going on there so you actually came and did sportsgrid, right

we may have lost you do we still have the audio, lou? >> yeah, i'm here. i hear you >> okay. so we lost the shot. like in the morning when nothing is going on, is there a tutorial >> i'm telling you you have to log on we have to get you on. we need you. we're going to help you out. >> i don't want any -- i don't know if i want any help. anyway, i need help winning, i just don't know if i need help finding out more how to do this. lou, thanks. you keep saying cnbc over and over again it helped us out cnbc of sports all right. andrew okay big two hours ahead. peloton ceo is gngoi to be joining us live to talk about his blockbuster quarter. sales surging 172%

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stimulus stalemate a gop coronavirus relief bill failing in the senate. we're going to talk about the latest from washington and what it means for your money with former gop leader eric cantor. and the market's wild ride what you need to watch ahead of the opening bell is all straight ahead. and a sale surge at peloton amid the pandemic. the company ceo joins us in a

first on cnbc interview as the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with joe kernen. becky is off today we may both be getting on our pelotons in a minute, just wait and see. u.s. equity futures wild wide all week looks wilder today. dow looks like it would open up 155 points higher. nasdaq looking to open 93 points higher s&p 500 looking to get back, too. up about 22 points joe? >> thanks, andrew. if i knew how to -- if i could just angle this camera, i could show you the peloton

i'm afraid i'm afraid to touch the lights and camera i'm not going to do that i can almost touch it from where it is. the stalemate over the next round of coronavirus stimulus deepens. the senate failing to advance a skinny relief package yesterday making it less likely additional aid's going to be approved before the election. for a look at what is next, let's welcome a former congressional insider, eric cantor, former house majority leader who is now vice chairman and mapping director with moelus and company. eric, thank you for joining us every time we have you on, usually it's after something like what happened yesterday, and you're able to look back on it when you look back on it do you say, god, that's just business as usual you have one side trying to do something, but it's too little so the other side, you know, because they want a lot more, they're not even ready to go with what would obviously help certain people out

so you get nothing instead of maybe having -- it's just more of the same crap that allows them to posture but it doesn't help any of the people that elected them to go there. >> good morning, joe and andrew. it just to me reminds me of the two worlds the world i am in now is about bringing people together it's all about making sure you consummate the deal and produce the result i think you're absolutely right. i think where we are in d.c. now is they have all taken the necessary votes that most think will position them fairly well in front of the electorate in the next 50 some days and they're fine to just do that without taking into consideration the real consequences of a lack of result at the end of the day. i think you said earlier, there are parts of this economy that, frankly, are in need of some

assistance if you think about it, we still have an extraordinary amount of unemployment in this country we have small businesses you just walk down the streets, i'm here in virginia still, and i can tell you the small businesses are hurting so, again, these kind of things are not going to be there to help people while all of the while we see equities markets in the west and things doing well it's unfortunate they were not able to come together. >> what do you -- now that you're in the -- you noted you're not in that former business now, you're in this new business, do you have feelings what do your colleagues think about what's going on in the stock market at this point is it real is it memorex? is it stimulus is it the fed? is it a v-shaped recovery? what are you anything. >> my colleagues and those of my partners are looking at the

equities markets certainly there's not uniformity across sectors, we know that we've certainly been a real up tick on the tech side and some of the large companies who are able to take advantage, and i don't want to say in any bad way, but they've been positioned well with a crisis like this to go in and pick up some market share. for the most part at moelis and company, listen, we're seeing clients regenerate or pick back up where they were in terms of discussions on deals pre-covid i think where we're seeing the most activity is what we're calling the power middle so it's not the megacap deals because i do think some of them are having some difficulty right now getting in the 50 some days before the election where no one wants to stick out and be the poster child for a big merger, if you will, in the eyes of washington so we're having a lot of discussion though with clients and talking a lot with folks who are really desirous of getting

deals done right now it all happens to be in certain sectors and what we are saying is the power middle which is, as we know, in mid market, anywhere from 5.5 million to 10 or $12 billion. >> did you used to have to whip both you must be able to gauge what the chaps are that we get anything else. what are the chances that we get anything else? back to that and if we don't -- if we don't, does the wall street care or is it just poor main street once again that gets the short end of the stick? does wall street need more stimulus for the markets to stay happy or do we just need it to try to help those parts of the economy that are still under stress. >> it's all about the fed, flight we have seen the fed and

jay powell saying we're going to backstop the markets and that's what's fueling what's going on in the markets whip, i cut my teeth as the whip before i became the leader and, right, my gut is just looking from the outside and what's going on in d.c., my gut is that they are satisfied now that they're well positioned, each party thinks they're taking the necessary votes for cover, if you will it will be in the main street businesses it will be small businesses. it will be those who are unemployed that won't come out of this as well. and so those -- you know, the economists who come up with this vision of a k recovery, they may have something there because there's certainly sectors that are doing okay and others that are just not >> yeah. so no deal then in november? >> well -- >> by november, no deal? >> the thing is, there's one driving mechanism that is going to happen at the end of this month. as has been typical of

washington over the last several years, they've been unable to come together on a spending bill what happened at the end of september, they'll passion what is known as a continuing resolution to keep things steady where the funding measures are without changing much. that would be the only real opportunity for the two sides to try to get together and produce something for people who really need it in a targeted way. i'm below 50% on prognosticating. >> must have been some celebration among the lady partners at moelis with the lady partners about citigroup. >> moelis and company founded by ken moelis 10, 13 years ago but we have a coo, founder and board member who's a woman

i always say it's because of her and her team that we've been so successful so i'm glad to see that. i mean, it's obviously a big milestone for corporate america to have a bank like citi to be run by a woman and i think we'll begin to see more of that across not only the financial services sector but across the country. >> all right we'll just end with, i don't know, can you say anything positive about the political environment, what's it going to take >> listen, joe, we've got a great country. we can't forget that. >> i know. >> we have a great country it's polarized washington is extremely polarized. it's only reflecting the public at large we are a polarized country you listen to scott gottleib, he does almost every morning on the

show listen, when you look back and you see some of the things that we could have learned, i mean, not to divide on some pretty basic stuff. listen, i think folks who say i don't want to wear a mask is too political. i'll stipulate to the fact, yes, we are sacrificing some kind of personal freedom in requiring us to put on masks when we go inside, but, fine, it's worth it if we get the economy going again and get people back to work i think washington is a reflection ofwhere the country is now i am can have dents we are going to see our way clear of this one of the things that's from s frustrating for me is testing. i have to do a business trip up to massachusetts and in order to do that next week, i have to get a test but i can't guarantee that test is going to come back with results until 48, 72 hours.

how is that? when we're six to seven months into this. that is what bogless my mind in a country like ours. >> i know. anyway, we're going to go, eric. you got a peloton yet? you might want to tune in. i don't know whether you've already got one, but you might watch. the ceo is -- you look fine. you haven't packed on any of the pounds during quarantine you look good. >> i'm thinking that you and andrew, really, you ought to maybe do a session where both of you are on the peloton i know becky could probably show both of you up on that yeah, i'm very interested to see you get on the peloton right now or in one of these shoes it might be a good little blip. >> you know what they make you do if you follow the person egging you on, they make you stand up on that

there's clothes on it. >> i don't like standing up on it i agree. >> that is not -- that is not my house and that's not my peloton. that's not my smelly clothes on that we had that ready to go. anyway, eric, i don't know if you can -- i don't know if you have a monitor or not. thanks it's good to see you this morning. happy friday we'll check back with you. see you again soon. coming up, a read -- all right, you, too. a read on the real estate market the ceo of compass joins us to discuss the exodus from the major cities and the suburbs and the pressure it's putting on inventory. later, first on cnbc interview with the ceo of poll lowton the stay at home fitness company crushing it. sales surged 172%. john foley will join us with the first on cnbc interview. "squawk" coming right back this is decision tech.

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now the answer to today's aflac trivia question. what was the last 12 cylinder car produced in the united states the answer, the lincoln continental in 1948. breaking news on the mortgage bailout program diana olick joins us she has details of a new report. interested to see this, diana. good morning >> reporter: good morning, joe yeah, after dropping by nearly

150,000 last week, the total number of mortgages inin active forbearance plans make it 3.7 million or 7% of all active mortgages. these plans allow borrowers to delay monthly payments for at least up to three months or up to a year. there is a wave of 2 million plans expiring this month. 350,000 did not renew, but overall 3/4 of those in forbearance are in renewals still unable to get back to making their monthly payments. about 48,000 borrowers started their first forbearance plan this month but that's the lowest in five months while some of the numbers are improving, the forecast for for closures are starting to deteriorate. the number of seriously delinquent mortgages nearly doubled. core logic predicts serious

delinquencies could double again by 2022. foreclosure filings are still pretty historically low. they actually jumped 11% from july to august as several moratoria on mortgages expired. starting to see those numbers get worse, joe. >> you would think, diana, that homeowners with this pandemic have been hit with something even worse than what happened ten years ago, yet is there any reason to think it could get that bad that we saw why won't it get that bad from where it was ten years ago >> because there's a very big difference in the housing market today as your next guest will probably tell you which is we have very high demand and home equity is very strong. if you are in trouble on your home mortgage and can't pay it for up to a year, you do have the option to sell the house, pay off the mortgage and probably pocket some equity as

well whereas, ten years ago homeowners in trouble were way underwater they couldn't get out of them. they had to go to foreclosure. that's the biggest difference today. if you start to see foreclosures and prices deteriorate, that's when we start to worry about it. >> it was just the self-inflicted bubble rather than some exogenous -- all right. thank you, diana olick andrew, we're going to keep talking about this, i guess. >> we're going to keep talking about it for a very long time. big cities across the country are seeing a rise in listings as people move to the suburbs according to compass, seattle's listings grew 15%. washington d.c. up 55% robert repton, the ceo and founder much real estate company compass. we've all heard the anecdotes.

we're starting to see some of the data does it persist is maybe the question. >> we believe that increased activity is going to persist throughout the rest of this year and into 2021. our consumer traffic has increased 180% year over year. that's an indicator of future demand and the average surge is 19% longer than it was last year, which reflects that buyers are more serious than they were last year. this is hemming for two reasons. people have never been so aware of the inadequacies of their home everyone wants more space. more indoor space, outdoor space, private space, office space. obviously you have record low mortgage rates the fed has said they're not going to increase rates until earliest 2022. >> so this is almost -- it's almost unexpected in terms of where people's heads were even a

couple of months ago about what was going to happen to office, what was going to happen to real estate because i think people were worried about it. it appears that it's holding up better again, the big question right now is what about the big cities and the move out of big cities and how concerned are you about that you've got it coming and going, but i'm still curious. >> on the anniversary of 9/11 i think we should recognize how resilient american cities are. i actually bought a home in new york city since covid hit. why? new york city is still one of the largest safe cities in the country and the world. they're both open. still have broadway, still have central park everything that we love about new york city is still here, we need to wait until a vaccine comes and that's a matter of time when you look at the data, 96% of cities saw an increase in home prices in q2 and many of the buyers in suburban markets around cities are using them as

second homes >> robert, i don't know if you saw this letter. i don't think you were a signer of it, but there was a letter that came out yesterday by a number, i think over 150 executives in the city of new york, to the mayor, mayor de blasio, saying there is widespread anxiety over public safety, cleanliness and other quality of life issues across five boroughs. the letter says people will be slow to return it was a no vote of confidence for the mayor. what's your take on what's happening in the city? >> look, safety is the primary concern for every company and should be for every city i'm glad that that letter was septemb sent to the mayor, but i do

believe data being issued around safety are in the headlines versus the trend lines the trend lines are positive >> you don't believe this is as pronounced as that letter suggests >> i do not. you look in the upper west side, yes, it did feel a little different in new york city over the probably july period but it's been getting better week over week. >> fair enough two other questions. we've talked about the future of your company for quite some time and there are a lot of expectations about a potential ipo and going public where does that stand given where we are in this pandemic? >> we are incredibly fortunate we have had three consecutive revenue months, june, july, and again in august. august revenue was 70% ahead of where it was last year our business is really surging as a result, we don't need to go public in order to raise capital. that said, we do have people in place and systems in place to go

public when we would like. we brought on an independent board of people like pam grant and she's on the board of companies like peloton and eileen murray and she's on the board of hsbc and a third board member which we're excited to announce later this month. >> one of the biggest investors is softbank. we talk about softbank almost every day. there's a view the company artificially inflated the private market for companies like yours if we're being frank. now there's a view they may have inflated the public markets. what do you think of this? >> what softbank does as a corporation doesn't affect us. i'm ensuring we use our capital to increase value in 18,000

people what they do in the public markets doesn't impact us at all. >> i've always said, robert, if you weren't in business you'd be in politics. robert, we appreciate you joining us this morning so very much thanks for joining us. we'll talk to you soon good luck. still to come on squawk. we have so much more coming up technicals and what's driving this morning's wild ride with katie stockton she has so much to tell us. first on cnbc interview, john foley is going to talk to us about the surge in sales of peloton. i don't know if joe is getting his spandex shorts on, but that interview, it's all just minutes away we'll bring you john foley in just a minute. we're in the green on this friday morni aer wngfthat has been a wild week back in a moment ♪ ♪

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it posted mixed quarterly results. weaker than expected revenues. sales growth fell by 87% over the same time last year. that was worse than expected it opened 87 stores in 27 states next up you have shares of adobe which are higher to the tune of

3% the business software and digital services gets upgraded to an outperform it goes higher to 555 bucks. they cited a better growth profile going forward with macro tailwinds from the covid-19 pandemic then we'll cap things off here with shares of tesla which continue to be relatively volatile up 3%. it was 160 before. the shares are up $380 over pre-market a mia culpa. >> may have to talk about tesla with our next guest, dom we'd be remiss talk technicals, joining us is katie stockton, founding and managing partner of fairley

strategies i think we went up another 6, 7% until we saw this most recent pull back. is that part -- is that about as close as you can come to getting it exactly right in terms of you might see that something looks over bought but you could still get another 7% before something happens. are we still in the consolidating? >> i think so. i think sentiment was the issue when we last talked. we've seen that overly bullish condition pull back with the broader market but not to the degree of which the indicators are flashing an over sold reading. that word over sold is over used but there is meaning to it we don't have that quite yet

uber bought down turns we've seen over the past few weeks, names like apple, it will give way not to just the initial pull back which has been quite sharp and severe, but also additional consolidation before we get that tradeable low. i think it's very, very constructive back in the late '90s they say this is a double what we're seeing is positive long-term momentum that's a new development i think we assume that this corrective period is instructive given the breakouts that proceed it >> we're right about where we were when you were talking about a correction last time i mean, does it -- so we're at

3339 would you be surprised to see 5 to 10% from here if it moved up can we do 5 to 10% from when it was up near 3500 >> i don't think the losses will be so dramatic going forward i do expect another down draft next week and i say that in part because of the vix which is one metric we were watching as a risk metric going into this. it was something that helped us trigger the pull back to our cliens because it cleared a resistance of its even it is taking a pause and that volatility spike could be enough to get the sentiment readings where we want them to be in terms of over sold or more bearish than we are. i think we need a little more

down side, 57 to% -- 5 to 7% is a little too address sieve the stock is looking up this morning, 114, 115. that's pretty dramatic down side if you were to see a pull back of that magnitude, it would be constructive it would help, one, buyers that felt like they missed it to add exposure at a better price but it would maintain the up trend, there would be no break down and it would be a successful test and help refresh the up trend. >> apple yesterday or the day before, the market was doing well immediately when apple weakened, you just could tell that the entire market wasn't going to be able to maintain the momentum. obviously we know that a few stocks have been very important to the up trend we're seeing in the markets, but apple even

seems like the one that means the most so that's important. if we go to -- if apple were to pull back to 100, i mean, i think the entire market would have a similar percentage loss, would it not or no? >> yeah, i think certainly the triple qs or the nasdaq 100 etf would have that kind of decline. maybe the s&p 500 a little bit less it does have more exposure to other sectors, including defensive structures which have proven to be a safe haven during the pull back. very classic i think that probably persists until we get out of the september doldrums and get a run up to the election apple to your point, watching the market leaders when they do crack, that is usually an indication we should be managing risks more broadly speaking. >> we have to go

how's gold looking still in a bullish up trend? i can't see how it has. >> bullish up trend. it has defensive tendencies. that's a nice opportunity to take advantage of a long term up trend. >> katie, thanks appreciate it. >> thanks. >> fairlead strategies we'll be checking back with you in a couple of weeks andrew okay coming up, president trump giving tiktok's parent company no wiggle room on that deadline to sell the u.s. assets. we've got details about that after the break. head to the break, a look at this morning's winners and losers right on the nasdaq back after this. a reminder, you can always watch us live on the go. do it on the cnbc app. we're back in a moment the united states postal service is here to deliver your packages. and the peace of mind of knowing that important things like your prescriptions,

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. welcome back to "squawk box. the futures are where they were for most of the session. in the green dow is indicated about 127 points as you can see. the nasdaq a little bit stronger on relative basis. we're watching it closely. that's where a lot of the action has been, dictating a lot of the movement has been this week in the averages we'll see whether it holds on friday, andrew >> meantime -- thanks. meantime, president trump saying the deadline for bytedance to unload the u.s. operations are not going to be extended bytedance has until september 20th

that's the deadline to sell tiktok or have it banned in the u.s. by the trump administration lots of eyes on that issue by the way, we're going to be talking to the head of instagram which is competing with tiktok in the 8 a.m. hour this morning. joe? senior editors at j.p. morgan chase are being told it's time to wrap up their work from home operations. according to reports, executives at the bank informed managers in its sales and trading units in london and new york. the plan to return to the office is september 21st. some exemptions will be made including employees deemed high risk or if they have issues coordinating child care or home schooling. the president tweeting earlier this morning, congratulations to j.p. morgan chase to ordering everyone back to office on september 21st will always be better than working from home. what are your plans, sorkin?

any idea >> you know, i -- i don't know what our plans are i'm going to be back and forth, i imagine, between the city and here my children, happily, are -- they're doing virtual school today but we're supposed to be starting in person five days a week at the end of this month. so i will give you a report card on our progress about whether we get to that place. we're all very hopeful crossing our fingers >> i'm ready to go back but do you think i should get rid of all of these yellow shirts i wear every day or should i continue to keep wearing these yellow shirts? actually, never mind i'm going to try and work on that today i do want to get back to the nasdaq asap. the delay kills me, andrew i'm going to say that and i'm going to wait for you to respond. >> i don't -- i actually think the delay between both of us isn't that bad i think sometimes -- >> maybe it's worse for me. >> working at higher speeds. >> fiber to the home

fiber to the home. you know what, we shouldn't complain it's amazing we're able to do this we did it quickly. >> unbelievable. >> back when we had to do it all the guys that helped with this, it is amazing but i don't know i don't like, you know, a shirt that matches my teeth every day. anyway, up next, john foley, co-founder and ceo of peloton joins us and some news announced earlier about the bikes and tre treadmills and then the head of instagram and the new york real estate market and the covid impact which we have talked about. and then later toni sacconaghi the recent sit bpletween apple, particular to being and the war on tiktok.

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welcome back to "squawk box" this morning shares of peloton, they are pedaling higher. blowing past earnings estimates and raising its guidance revenue soaring 172% from a year ago. the fitness subscriptions more than doubled and the paid subscriptions more than 200%

joining us is john foley, co-founder and ceo of peloton. john, great to see you i hope the next time we can do it in person joe's got a peloton actually right next to him. we're work from home today as well i just bought the new tread. not the new new tread, we can talk about that in just a minute just speak to where we are because clearly the growth has been beyond any measure. i think the big question in the markets among investors is really just how sustainable that is and what kind of multiple to put on that because what does that business look like a year from now if hopefully we have vaccines and we have therapeutics and people may go back to gyms and the like. >> yeah. thank you, andrew. thank you, joe good to see you guys we believe that the -- i will start out by saying we've grown 100% year on year rev ewe for

six years. we didn't just do this because of covid to your question, we're as excited to get back to work, and hopefully we have a vaccine, you know, in the coming weeks. we'd be excited about that we believe what's happening here is a secular move from working out at a different location into the home if you can have better workout experiences, and both of you know this from having a bike and a tread, when you have a better experience working out at home with incredible gamefied hardware and software, why would you travel we think post covid this is still an incredible growth story. >> in terms of just keeping up with the demand, one of the things you talked about yesterday with these earnings was that it's been hard to keep up with demand what does that look like in terms of production of the bikes, of the treads and the delivery of the ability to

deliver this over the next couple quarters? >> yeah, that's a great question, andrew it's hard to put a finger on what team at peloton is working the hardest because it feels like every team i talk to is red lining you're absolutely right. the supply chain, the manufacturing teams, the field ops teams where they deliver the bikes and treads globally, they're all out for sure i think they've done an incredible job they've gotten order to delivery down demand has gone up we've been able to out pace it with supply chain and field ops delivery growth. you're right, it's hard for sure >> can we speak about pricing? you know, you're going to be introducing a new tread that i think is close to half the price come 2021. you have a new bike out which is also then going to allow for a lower price current bike as well

how much do you think you have to get the price down to expand the audience >> well, to the extent we are having a hard time to make them fast enough at the current price, you would say we don't have to change the price at all. of course we are to your point, andrew, with our better/best strategy and both the tread and with the better best, we can have the premium product, the best we can get. it's the best bike in the world. it's at just under $2500 over time it allows us to do a lot of creative pricing. right now it's at the original bike that's the best cardio machine on the planet loved by millions is under $1900 which is from a finance perspective under $49 a month which we're very excited about

we do think the price point will matter so we're getting out in front of it. >> john, it's joe. i see you watching a lot of the video and i see people working with dumb bells and obviously weight training is important in addition to cardio might be even more important are you developing anything or innovating in a universal, for lack of a better term, machine with a bench or pull down or dumb bells is it possible to combine the software you have with a class or trainer with a machine that sort of has three or four different -- will there be a peloton machine like that? >> you're right, joe we need to win strength. we will win cardio we care about winning in

strength as well andrew could probably talk to this because i know you have a tread, andrew. my favorite workout is a boot camp off of the tread where, joe, you might not know this, but a lot of the content, you get on the tread for five or six minutes, then you're asked to grab your dumb bells, do strength trainings, pushups, or plank. when you do a peloton boot camp class, we offer it on the bike, the bike plus, you can get off of your bike and do strength training with one of the best instructors in the world we don't think we need to have a problem. if you do, i know you do, andrew, you do one of these 45 minute or 60 minute boot camp classes off the bike or tread, your entire upper body is feeling it

>> right >> right now you don't need to complement that with another weight training program. >> i know you're not going to tip your hand on this. in terms of a future product, is there a weight product or people talk about rowers. that would put you back in the cardiospace. you saw lululemon buying the mirror what did you make of that? >> i thought it was a good exit for that founding team i think brandon was smart selling the business for all cash we are doing so much content on every screen in your hand and your home. every screen that's in your house today can be a portal to taking one of our 10 or 12 verticals. we launched roku tv, apple tv, amazon fire tv, apple tv and you can get our content, our

strength training in your hand still tpd on mirror whether there's a product market fit for that product. >> pricing right now 24rs the financing option i think there was speculation that there might ultimately be a straight up subscription where you effectively rent the bike, rent the treadmill is that in the offing? >> five or ten years from now i would be surprised if it wasn't. i think there's a there there. it's not something we're going to see i love moving in that direction. it's all in the name of affordability for our members, current members and new members and making sure they feel incredible about their value one thing i will point out, andrew, that was my favorite metric is last q4 our

subscriptions were used 12 times on average this year they were used 25 times on average pay i using it 25 times a month, it's just a dollar per workout. >> john, would you be terribly upset if i don't want to use this bike, if it's not my thing, if i would like to get the treadmill? i mean, would that -- i don't want to -- i know the bike is your bread and butter and everything i don't want to get a treadmill and bike is that possible i don't want to upset you. can people do that is that okay >> you've been so good to me, joe, you could do no wrong

personally one thing i'll point out, if you did get the treadmill you wouldn't pay an additional $39 it scales in your home to your question, that wouldn't bother us at all what you would probably do is either trade in with your peloton bike, you get a $700 trade-in credit or you could sell your bike on craig's list or eventually it will be gone to a new subscriber we're fine with that either way, of course. >> john, we're going to have to run but i have a question on behalf of all peloton users who want to know, will you ever allow people to watch things other than peloton programming on the screen?

if i wanted to watch netflix or some other program as i'm running or biking, i'm getting a number of requests >> let's say you want to watch billions when you're peddling. >> sure. >> i don't hate that idea, andrew, to be honest we talk about it, never say never. >> never say never finally for joe on the tread if we're going to get him a tread. the old tread, i said it's criminally expensive, it is, i'm blessed to buy it. the new one, is it good? joe wants to get the woodway does it have the slats or no >> no. the original you have is the rolls royce of tread mills for sure it's incredible. to be honest, since you're asking, my wife likes the new tread better

more petite. she likes the running surface. same great software and same great content. depending on the type you want and the deck you want to run on, we have many choices. >> john, we appreciate you joining us and we look forward to following your progress maybe we'll see you on a run or a bike soon. >> i'd love that so fun to be on your show guys thanks >> you bet joe. >> that was fun. it's obvious, andrew, looking at either one of us that fitness is our life physical fitness. >> our life. >> it does pay off. >> if you could have seen me last night with a bag of chips, right? >> yeah, exactly yeah anyway, coming up, don't miss our exclusive interview with the head of instagram. that's coming up straight ahead. it's 5g ultra wideband, and it's already available in parts of select cities. like los angeles. and in new york city.

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good morning, stock futures are up as we get ready to close out. a short week tracking to be the worst since march. new york city business leaders sounding an alarm over what they see as a dangerous decline in the quality of life over the five boroughs. we're going to speak with one of those leaders calling on the city's mayor to fix things fast. good luck. and on the way, an exclusive interview with the head of instagram on competition with tiktok misinformation surrounding the november election and much more. the final hour of "squawk box" begins right now

good morning welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with joe kernen. becky is off today take a look at u.s. futures after what's been a wild ride on wall street. dow up 127 points. nasdaq looking to open up 115 points higher. s&p up 22 points treasury yields as we speak, looking at the 10-year note as we flip the board around a at .690. joe? here's some of the stories investors might be talking about today. we picked out a couple exercise equipment maker peloton scoring its first ever quarterly profit revenue nearly tripled in the fourth quarter as demand surged during the coronavirus pandemic

and the pilleloton ceo joined ui the last hour. >> we've been able to outpace it and field ops delivery growth. we've done a great job it's hard for sure >> first quarter and full year sales guidance also came in well above analyst estimates thanks to increased demand though, the company doesn't expect the u.s. delivery times to get back to normal for the next few months president trump says tiktok's owner won't get an extension on the deadline. trump spoke about the tech tussle yesterday with a briefing with reporters. >> tiktok is moving along. we'll see what happened. it will either be closed up or they'll sell it. we'll either close up tiktok in this country for security reasons or it will be sold.

>> deadline -- >> i'm not extending deadlines, no september 15th there will be no extension of the tiktok deadline. microsoft and oracle current currently seen as front-runners to acquire tiktok's u.s. assets. russian hackers who disrupted the 2016 election are once again targeting political parties. china and iran have tried to get into things. google says it will start screening what users see when the site predicts searches so called auto complete in an effort to make sure voters aren't misled. that would apply if one candidate claims an early victory in november's election

joe? new coronavirus aid for americans is in doubt after the senate failed to pass a skinny deal eamon javers joins us. >> reporter: good morning, joe the final vote was 52-47 they needed 60 votes they didn't get it republicans failed on the so-called skinny bill. 5$540 billion package $3 trillion is what the democrats were hoping for. they all voted against it. that means no relief on the horizon. immediately after the vote we saw both sides pointing fingers and here's the president saying it's nancy pelosi's fault. >> right now the democrats don't want to pass it, don't want to help the workers of our country. nancy pelosi and company thinks

that be wrong. we want to pass stimulus for people that need it. it wasn't their fault. it was china's fault we're prepared to do it. i have a feeling democrats won't do it. >> reporter: for her part she said it was the republican's fault. they held the vote on a bill that refuses to crush the virus. it contains poison pills the democrats cannot support at this point, washington is sort of shrugging here in its responsibility to get a stimulus package through. doesn't seem like there's much chance of that happening given the partisan nature of the debate ahead of the election

main focus is to keep the government from shutting down at the end of the month >> all of the executive orders, that's all used up what the president can do with the stroke of a pen, eamon? >> reporter: yeah. the white house has made some stories or in terms of a massive amount of spending that would get out to the country, that's not something the president can do by executive order. >> dem crafts loved it if they are able to, they might get rid of it. do you believe it? what do you think would really happen >> it's so hard to predict, right? the minorities always love the filibuster

it gives them out sized power. it prevents a lot from happening in the united states senate and congress generally you can see why a newly elected majority, if they're elected by a huge margin, could be thumping their chest and move to get rid of the filibuster and move a whole lot of stuff through early in the first term of a president. there are still some institutionalists in the senate. it makes them more powerful. we're not going to make that up no matter who's in power we'll see. very tempting for a new majority that's been elected to try to look at it. >> give us something to talk about, won't it. >> would. >> would be a different world. man, there would be a lot going on they would be passing stuff -- >> a lot of bills moving >> no, no, no. anyway, eamon, thank you we'll talk to you later. >> reporter: sure. >> andrew. coming up on the other side

of this break, we're going to talk apple, tesla, what these high flyers, whether they should be in your portfolio at this point. top research analyst is going to join us. first, an interview you do not want to miss the head of instagram, adam mosseri is going to join us. how it's changed so many questions for him. head to break, check out shares of oracle. that company beating estimates on the top and bottom lines. more people work remotely. it's in a race to buy tiktok which is competing with ins str agr inagm. when it comes to parenting, you're a pro.

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futures are in the green dow struggling to stay with the triple digit gain now just below 100 points same with the nasdaq, both solidly above the triple digit level earlier. backing off a little s&p indicated up about 19 points only a four-day week but felt like at least a normal week. well, not normal but a lot of action, andrew >> absolutely, joe meantime, instagram making some big changes during the pandemic. billion user service recently decided to take on tiktok. just this week instagram announcing it's now testing new versions of the home screen which is grabbing users to keep them engaged joining us is adam mosseri, the head of instagram. it's also adam's first interview

on cnbc. adam, great to see you i live with your product every day. my wife and kids say too much my kids are constantly trying to take it from me so they can get on it as well. we have so many questions for you, both as users and also given that your company is right in the mix of so much of the news right now so, welcome, and thank you for joining us and for waking up early. i think you're on the west coast right now. >> yes >> why don't we talk a little bit about some of the things that are in the news right now, just so we can understand how you're thinking about them then i want to jump into some of the product stuff that i think so many people are focused on right now. the big issue we were talking about in the last hour has been the potential for political meddling and the role that social media plays in that i was curious how you think about that issue on instagram. i haven't seen a lot of political advertising on instagram. feels very different where a lot

of the other political advertising may live on facebook and other places how does that work into your anything. >> we definitely think about it and worry about it a lot in general, instagram has less news than others like facebook and twitter but it doesn't mean we don't have the risk of people interfering in elections and misinformation we've seen that happening on instagram as well which is why we're focused on getting everything we can to protect interference with the upcoming election we know it's a big test for us, we have a lot of responsibility and we're trying to embrace that responsibility. >> how concerned are you, i know you put in a policy at the company broadly, so politicians cannot advertise new ads the week prior some critics out there say, you know what though, if you wanted to get them out, you'd put them in the feed effectively prior to that. >> well, i think the

announcements were not allowing much more. we've invested billions of dollars and had tens of thousands of people working on integrity broadly. we've done a lot to increase transparency, reduce misinformation, identify proactively foreign actors trying to medal in elections i think we've made a lot of progress of course we're concerned. it would be irresponsible not to be concerned >> adam, the other big i shall issue and we've been talking about it all morning is your big competitor tiktok and the future of that company and what happens to that company. you've introduced a new service called reelz as part of instagram. i'm curious, a, to see how much traffic you think has gotten -- what the success of reelz looks like now and how much have you

benefitted, to the degree you haven't or that's the transfer of power on it we're seeing momentum and growing particularly fast in countries like india broadly speaking, tiktok has done an amazing job just pushing the short ferm video ecosystem into existence they've been at it for almost a decade now all the credit goes to them. we've seen that short form grow not only on instagram but other platforms as well. we have to adapt to the big shifts one of the biggest risks is that the world changes around us. obviously we have competition. but when you're a platform like us, you become less relevant you asked about the potential ban in the u.s., any short form benefit would be in terms of stifling a competitor right now i think is greatly out weighed

by the risks of a fragmented benefit. if we moved to a place where countries start to silo the internet with them that's much more problematic than any short term benefit. >> i don't know if you're willing to take us inside some of the meetings you have, i imagine conversations that must be happening in your company if you were rooting for buyers, microsoft/walmart or oracle on the other side, which way do you lean. >> i can't -- i don't know honestly, i'm following this just as you are, just trying to figure out what's going on it's been moving so fast there's so little time and so much drama i don't even -- i don't have an idea. >> is there any part of you that says, you know what, this is actually part good for our

business to the point, a, the tiktok algorithm and how much gets shared with the buyer and their ability to be able to iterate quickly relative to what bytedance could do on its own. >> you bring up a really good point. tiktok as an seat is incredibly valuable they've done brilliant, compelling work over the last couple of years. any buyer has to decide how much of the outset value is the algorithms versus the user base. i think it would be pretty wild. i can't imagine running our business and not having control or understanding how ranking works in the decision if it benefits us, the precedent it sets is much, much worse for the

business in the long term. i'm not actually enjoying this at all although some assume this is good for us i think it's going to be bad for us over the next 5 to 10 years. >> adam, as a product guy, one of the questions i have is how many new features do you think you can build into the instagram service? you've just introduced reelz prior to that was stories and people thought that was a copy of snap and the core, the feed does it get too confused >> it's a big concern of ours. ours values are simplicity in craft. as the world changes, you introduce new features and we need to make sure it stays simple i think the question is how you

consolidate concepts how do you simplify while you still figure out ways of meeting new use cases. i think we've got work to do there. we've made progress to come in on camera which gets simpler and simpler over the last few years. a lot more work to do. something very top of mind >> adam, want to talk about advertising. that's obviously the core engine of growth and the economics of insta and largely facebook one of the great challenges that's now out there is the shift in what apple intending to do this. one aspect of that would make it much easier for apps like yours to be able to track them facebook has filed a complaint

against apple in the eu in the last 24 to 48 hours. what is the impact of that going to be? if you would, how are you going to persuade the users of iphones and other phones of the benefits of tracking if that's something you would try to do? >> absolutely, i actually would. i think there are two sides to this there are lots of sides to every complicated question two things i want to stress. one is our advertising business obviously requires us to understand data at some level. we want to show you adds you're interested in, atz that are good for advertisers. the vast majority is small to large businesses if it changes where they can't measure their return on business, it will be problematic for all of the big apps roughly

equally. it will be much, much more problematic for all of the small businesses, there are millions of them out there, that are relying on us to reach the customers, particularly during a pandemic when they're hurting. the flip side is data is important. privacy is important we want people to understand there's value to it. you open up instagram and go to explore, we'll show you things you're interested in i'm interested in snowboarding, you're interested in news. my experience is more around snowboarding, surfing, yours is more around news that's of value. for that to be personalized, compelling, for us not to show you things you're not interested in, we need to know what you're interested in. that's the value of data i use that personalization

so we believe there's a way to be really responsible and give people control over their data and transparency but without cutting off our understanding that we're operating blind >> adam, in terms of what seems to be a battle with apple, how much influence do you think you will have over them and what do you think the outcome looks like >> i don't think we have much influence over apple i mean, they own the majority of the market here in the u.s., the smart phones they can't mention this. influence and power over the last couple of months.

and policy influencers and -- >> adam, do you think apple has an unfair monopoly at the same time washington is looking at facebook. generally scrutiny is a good thing.

i'm not going to weigh in on what constitutes a monopoly for them but i do think it's good we're all being scrutinized. >> adam, we're going to continue this conversation. i'm going to tell everybody we're going to continue this on instagram live we're going to do this at 9 a.m. i'm very excited and looking forward to that. by the way, because there are a lot of folks out there people are sending me notes on twitter, sorry to have a competitor about this. >> i love twitter. >> everybody wants to know about your camera rig. what's the setup that you have you have the nice blurred effect in the background. only the boss of instagram would have that. >> you've got to get one of those hdmi to usb converters in order to plug in a real dslr i sit here all day long and i do enough things like this that i wanted to get a real camera

plugged into my laptop. >> you look good >> you can see it right now. 00 te'll see you on insta at 9:his morning. thanks so much squawk returns. >> appreciate it thank you.

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welcome back to "squawk box. rick santelli live here at hq cme in chicago. our read on august consumer price index hitting the wires up .4 of 1%. that's .1 hot based on expectations if we strip out the all important food and energy, it's still up .4 double the expectations on the long view, year over year, up 1.3 on headline if we look at core year over year up 1.7. let's dig in on these numbers. on the headline, follows .6. the low for this, the worst price level is minus .8. minus .8 was basically one of the worst numbers we've had since 1947

the third worst. year over year up 1.7. that's the hottest since march of this year when it was slightly over 2% do keep in mind that we want to pay very close attention to the disparities or the separation between near term and longer term whether it's ppi, cpi, or just in general, many economists, experts, my sources tell me how the mid to long range inflation outlook will turn out based on getting on the back side of covid and whether the supply and demand curves end up getting closer together or farther apart. interest rates for the week? for the week they're down and close to unchanged on the day. we'll continue to monitor how we go into the weekend after some of the volatility we've experienced in the equities sector andrew, back to you. >> rick, thank you for that. i'm going to toss it over to

joe. we're not in new york city right now, joe, but there's a big story taking place in the city with business and the mayor. >> i was going to ask rick about that, how's the quality of life in chicago right now as well i think a lot of cities, you know, are dealing -- right, rick there's 150 ceos asking de blasio to fix things in new york that's rich in and of itself let's get to the interview 160 ceos have signed a letter getting him to take action against crime and other quality of life issues in the five boroughs the group includes ceo from macy, master card, goldman sachs, citigroup, lyft and many more concerns about safety, cleanliness are hindering the city's economic viability. they reference homelessness and

the leaders banning together through the partnership for new york city which represents over 1.5 million workers. one of the signers to the letter, scott rekkler, chairman of rmr i didn't see crime mentioned anywhere i see all of these other sort of nebulous problems that the city is undergoing right now. i mean, this is -- i don't want to get political and tie it to the defund the police or anything like that, but what do you expect mayor de blasio to do in terms of trying to help you on this? he doesn't seem like he's on the same page from what we just read in the newspapers. i don't know if you can believe those. >> joe, let me start by saying it's hard to have this conversation without taking a moment to reflect on the fact today is the 19th anniversary of 9/11 and where we lost so many

of our neighbors and friends and family on that fateful day we made a commitment that day that we were never going to forget, we won't forget, we're reopening the 9/11 memorial museum for the families and broader community starting this week end let's not forget what we did on the days following 9/11. they're extremely relevant to how we navigate through this unprecedented crisis, right? at that time we had extraordinary leadership that led us the way to rebuild our city we are going to be to a point where we're going to flee the city of fear, we were going to come back and build a better, brighter city. we're devoid of that leadership today. at that time we had leaders reopening the new york stock exchange starting professional sporting events. people bravely came back to the city and they could have said, i'm afraid of going into skyscrapers, taking airplanes, going to events. but we came back we knew it was critical for us to rebuild the city.

if you're mayor de blasio and city hall, really coming out of this pandemic where we worked so hard to flatten the curve, they should have been figuring out how to roll the welcome mat out for people in new york they should have been thinking of how to keep the streets clean and i would take the subway and show people it's safe to take public transit and reopen the city it only happens when leaders demonstrate a sense of confidence we've had the inverse of that in this circumstance right now. we don't have a plan to build a better, brighter future like we did post 9/11. it's easterly scary. >> putting it together, i remember well. we'll honor the moment of silence which is coming up for september 11th

i see very little similarities as you say to current leadership and what happened back then. address this, scott. there's big revenue shortfalls obviously from covid they're going to raise -- probably you're going to hear about taxes being raised more people are going to leave i don't think people want to be in the position of trying to fix new york city at this point. what is the answer to addressing the concerns raised in this letter >> so, you know, yes, we do have financial challenges in this city every major city in the state has fiscal challenges. the answer can't be simply that we're waiting for the federal government to give us funding. it's not just about money, it's about management just put this in perspective the year before this mayor took office the budget was $68 billion. the budget last year was $88 billion. so we had a $20 billion increase in budget to run this city we think our streets are

cleaner? do we think we're safer? do we have a higher quality of life i don't know where the $20 billion went i know we have a crisis and it will require help from the federal government that's not the only solution if our city was being managed better and things weren't wasteful, people like me who had the benefits of the city have no problem paying more taxes to have a more vibrant, more equal city for everyone. the concern right now is we don't have leadership that's managing the city effectively. we need tofocus on not just th money but how we actually manage that money to bring our city back better, stronger, more equal for everyone >> scott, just curious about some of the conversations you had with ceos about signing this letter obviously there's a lot of ceos who decided not to sign the letter there are prominent ceos not on the list can you speak to those conversations? because i have heard some feedback from people who didn't

want to sign, in part because they were worried about employees pushing back ceos who have been supportive of things like black lives matter and other protest measures and the view that signing a letter like this would send the wrong message. >> andrew, that's a good point i think the -- part of this challenge here, right, is we not only need leadership from city hall, we need it from the business community these are complicated times. it can't be about politics versus the people and the issues or political slogans it's got to be about the issue we address we have to come together same with business leaders we also need to do our job of coming back to the city and responsibly opening our businesses where our employees feel safe coming back to

workplaces, supporting local restaurants, dry cleaners. this is an ecosystem for everyone person working in a building, there are five service jobs we have 60,000 people working in our buildings. yesterday we had 5,000 people. this ecosystem is not going to function unless we all don't come back. it's going to take some moments where we're going to have to step out and do some bold things, just like we did after 9/11 people were afraid after 9/11. we all invested a significant amount to put in new security measures and communicated more effectively than we have today and they came back that's the same as today we need to recommit to our city and come back as business leaders and we need the same leadership from city hall. >> you believe that mayor de blasio is going to be helpful?

it sounds like your letter should have asked for a resignation, not a fix scott, do you think you can help the crime in new york with fewer police, more police? it's not spelled out in the letter, but what's the answer to that how are you going to do that fewer police or more police? >> i'll speak from a personal standpoint i can't speak for 150 people that signed the letter i think there's no doubt that the handling of the police issue by this administration and by city hall has been terrible, right? instead the real issue is if you bring people back to new york, you need to make sure our streets are safe if you want people to go out and protest peacefully, you need to make sure they're not infiltrated and create crime you need to create a sense of confidence and comfort by defunding the police by $1

million sends a message. >> good luck thank you. we'll be watching. see what happens incredible a letter like that, you have to worry about whether you even join up with something that seems so simple to ask for anyway, we appreciate it. >> joe, andrew, come back to work. >> i want to i want to. >> we all want to. >> we all want to. meantime, we have breaking news we want to get to right this moment. dom chu has that >> nikola shares are down. some of the allegations are made about short selling from hindenburg they want to be clear, this is not a research report. they say it is not accurate. this is a hit job for short sale driven by profrlt for greed. we have nothing to hide said

nikola we will refute this. they intend to bring the actions together with evidence and documentation. we respect the rights of investors. they're putting out this formidable statement the stocks took a huge hit we'll keep an eye on this, guys. i'll send it back over to you. dom, thanks that we have a top tesla and apple analyst. we'll remember and honor 9/11. back in a moment knowing we're prepared for tomorrow. wow dad, do you think you overdid it maybe? i don't think so... what do you think, peanut? nope! honey, do you think we overdid it? overdid what? see? we don't think so, son. technically, grandparents can't overdo it. it's impossible. well planned, well invested, well protected. voya. be confident to and through retirement.

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welcome back all morning long we've been remembering the attacks of september 11th and this morning, as there is, it's been -- when we started this, probably the next year. it's been 19 years there will be a moment of silence. it will be observed right at

8:46 a.m. eastern time and if you recall, that was when american airlines flight 11 struck the north tower of the world trade center it's something that is inde indellibly etched in all of our minds. it's going to start right now. let's honor that

♪ ♪ ♪ ♪ ♪

let's get to cnbc headquarters, jim cramer joins us now it's always a day of solemn remembrance, jim, that it's been 19 years now and really you would have to say a defining moment for the next 20 years that we're still -- it's still a defining moment, but it almost feels like there is a new kind

of defining moment maybe for the next 20 years with the pandemic, although we will never forget the last one i don't want to be, i guess, sad or negative about it, but the feeling of camaraderie and actually being in things together back then was very strong and we were all americans and i wish we could conjure up some of the same type of spirit now maybe. i think it might be helpful. do you agree >> i've always felt that it should be mandatory for, let's say, fifth grade -- pick a grade -- for people to go to what you were talking about earlier in the show, to the museum there's one room where you see the minute before and then the minute after and you realize that the change was dramatic we don't have that here with the pandemic, it's kind of a drawn out thing. there's another room which you and i both know, joe, which is known as the jumper room which

can't show anyone from fifth grade, sixth grade, they would never get over it. if people would go it is the kind of inn docket nation that we need. it's right there, it's done incredibly well. it's everybody's mission to go and every school's mission to go and they should just come here so that everyone in this country has seen it. >> good point, jim i mean, the -- so many people -- it's something that he have this' only read about. >> right. >> for us it seems like it just happened and it's so fresh in our minds to us and living through it, but you figure 19 years if someone is 20, 21 years old it's just something that's in a book. >> exactly. >> it should always be something that, you know, it makes you definitely more in tune with just being -- just being a human, i think, and just humanity and an american, i guess. >> it's a must see we've done t we've created a

remembrance that puts everything in context i think that if you are 20, you're 15, i mean, you must go i am not kidding i think that the president would be well-served by saying, okay, here is what we're going to do we are going to make it so that everybody in this country visits this museum. we can't do that with pearl harbor, it's in hawaii, but this is something every time i go there and i did a special about it not that long ago, it just puts it -- it's so well done that if you don't know the defining moment you will after you go through it. >> jim, we will be watching at 9:00 i know you and david and carl all, you know, and mark haines, we remember everything it was so vivid and it was right during the show when everything was -- i think it was 8:50 was the first time anyway, jim, thanks. >> thank you. >> we will see you at the top of the hour all right. now to this morning's symptom

movers, dom chu joins us, hey, dom. >> good morning, joe we will start off this check of morning movers with shares of chewy, this is the online pet food and supplies retailer down about 1.5%, roughly 75,000 shares of premarket volume after it reported a smaller than expected loss on better than expected sales chewy one of those beneficiaries of the covid pandemic lockdowns, more people opting to buy online and have things shipped to their homes rather than go to physical stores the company has said it added more customers in the first half of this year than it did in all of 2019. remember, that stock has more than doubled on a year to date basis so giving back some today. next up you have shares of domino's pizza up over a percent on relatively thin premarket trading. cohen has upgrade td the stock to outperform, it was a prior market perform, slightly raised the target price to 450 bucks. the macro tail winds from that pandemic, food delivery and

consumption trend as well as menu and technology innovation, so those shares ones to watch as well with he will end on shares of kroger which are higher by just around 2% or so at this stage. maybe a half a percent, giving some back now. this is america's biggest supermarket chain reported better than expected profits and revenues and offered a full-year profit forecast better than consensus estimates. kroger was helped by consumer friends during that pandemic as well by the way, digital sales grew by 127%. cnbc will be speaking with ceo rodney mcmullin exclusively later on today during the closing bell, that's a must much interview for everyone out there. i will send things back over to you. >> okay. thanks, dom. appreciate it. want to talk about one of the hottest stock this summer and that has been tesla. a report saying the client-based mass production of the model 3s for export to asia and europe will probably begin in the fourth quarter and could ship before the end of the year joining us right now is bernstein's tony saganacki one

of the most respected analysts in this space. what do you think of the valuation of tesla at this point, tony? how do you begin to model it out? >> it's a fantastic valuation and we along with many investors i think really struggle with that valuation to us is implies that tesla will become the largest car maker in the world and have by far the highest margins as a mass market car maker going forward. it's valuation is higher than the combined valuation, enterprise value of bw and toyota and those companies collectively make 20 million cars, tesla makes 500,000 cars it's an extraordinary valuation, clearly investors have a lot of belief that there's option value in tesla beyond the core car business but that it will be a formidable player going forward. >> toni, do you recommend the

stock given what you just said >> we do not, actually we lowered our rating a few weeks ago to underperform. we're pretty big believers in electric vehicle adoption, but we really got to the point where we just struggle to even in our most aggressive scenarios justify a price target close to tesla's prevailing price. >> here is the thing, and this is true also for apple, i'd ask what becomes the tipping point to the extent that you think this stock is going to go much, much lower, what's the trigger >> look, anytime stocks have tremendous runs like this there is increasing expectations and any shortfall relative to those expectations can have an outsized impact on valuation we saw that to some degree earlier this week when tesla was not included in the s&p 500 and

the stock, you know, declined 21% on tuesday so, you know, heaven forbid that deliveries are not strong or as strong as people thought or margins are a little lower, again, the more elevated the valuation the steeper the run up has been, the bigger the down side risk obviously it. >> toni, the thing i can't figure out about tesla is it seems like so many of the investors -- and you mentioned it, too -- aren't just betting on it as a car company people have said, look, you have to have a ten year if not longer time horizon and this is not just a bet on cars, it's a bet on so much else. you have so many retail inve investors in from robin hood and other places who he think may be making that bet, i don't know if they realize they're making that bet and therefore -- and then you have the ron barons of the world who have come on this program and he has been right or at least has appeared to be right thus far

>> look, there are a couple different phenomena happening. i think you alluded to the fact that, you know, we are seeing very high valuations across the technology space these are the highest valuations we've seen since the technology bubble in 2000 and the subsequent bursting of the bubble so we've had tech outperform for eight straight years, it's outperformed by over 30% this year we do have very high valuations and tesla is, you know, among the poster children for what has happened in the marketplace. you know, when stocks go up 25% because of a stock split, you know, and you're seeing, you know, several hundred thousand retail investors own a stock at one brokerage firm alone like robin hood, those are things that we saw in 1999 and those are worrisome things now, we will not know the answer to this tesla question until ten

years hence from now, but we do know to get to that kind of valuation you need to have extraordinary levels of profitability in a very large business. >> right toni, thank you for joining us we appreciate it very, very much joe, i will see you on monday. of course, we remember those that were lost on 9/11 this morning. make sure you join us on monday. "squawk on the street" begins right now. ♪ and a good morning to all of you and welcome to "squawk on the street." i'm david faber along with jim cramer carl has the morning off today let's give you a look at futures as we get ready to wrap up the trading week you can see we are headed for what appears to be a slightly if not substantially higher open. we will be keeping a close eye, though, given the volatility of late in the session and even prior to the session, jim. it's bee