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 been an interesting week to

say the least after a bit of a rebound the other day when i was on with you, yesterday i was not here for what was a decline overall in all the markets. >> i think we are in a new era of volatility. every single time we get an up opening people say, okay, i guess that selloff is over and when we get the printed selloff people say this selloff is going to go on for ages. i urge people to step back and recognize we are in a period where there's a lot of vacuum, a lot of people trying to buy when it's going up, a lot of people trying to sell when it's going down and just interpret that as just being enthusiasm, greed and then fear and accept it that it's here to stay because it's really the undercurrent behind these moves. >> okay. and what does that mean in terms of this so-called playbook that you often offer people who listen to what you have to say >> sure. it means that if you think that it is going to bounce today because it was down hard yesterday, don't make the first

move wait to see whether the people who are smart enough to buy at the bottom yesterday flipped the stock, if they flipped the stock particularly on a friday you might get a better price i feel like the news itself and people care very positive, kroger was amazing, a good interview with peloton, oracle was really good, no one is talking about it, they should be, because it was an exceptional quarter. so you've got the backdrop of good earnings, backdrop of okay macro, but what i am most concerned about is just people -- i know i'm going to call them newbies not having any experience with the market going down and they are accelerants on the way down instead of picking at things that might be attractive so that does change the coloration of this market. david costa out with an incredible note about how if you think that you're diversified you're not because of this concentration. really thoughtful note, got it at about 10:00 last night and

second quarter of the game and it is very, very thoughtful. you know, he is a thoughtful analyst at goldman because we really are lacking in diversification. we've got two markets, we have tech and we have everything else and tech is too big versus everything else. >> it is shocking sometimes. and it's a point we've made many times over these last few months as well just in terms of the lack of diversification even in the s&p 500, jim and i know many of thepeople w have on air have also made the same point of so many of the stocks that have been down and down substantially and yet you look at the index because it is so heavily weighted towards five or six enormously capitalized names and it's moved a lot higher or a decent amount higher not like the nasdaq. >> we have a fulcrum moment, david. we have jamie dimon saying come back to work will it work i have encino, it makes banking software for the cloud and they're saying, do you know what, they may think that jamie dimon has the sway here, but jamie is giving you that

little -- could end up being big hole that if you are with your kids or if you are part of a protected class you don't have to come, but what i think is happening is, david, it's not going to go back that way. yes, they are training people who have to come in, but when you see the software that people have to work at home, when you see the productivity, when you see how little time is spent versus an hour and a half on the tube going to canary wharf, you know that as much as jamie might want people back, work at home is the driver of tech and it's not going away >> no it's not you're referring of course to the story in the journal and we can confirm that as well, but, you know, when you are on a trading floor, when you still gain a benefit from knowing what your colleagues know in a realtime way, by yelling at them, or being able to walk over them, there is a benefit to that, jim. by the way, theres a benefit to being in person with your colleagues generally, particularly if you are somebody who is younger, trying to get a

culture at a particular company or corporation and trying to get ahead. i mean, i think we haven't accounted for all those things, although as we've said many times there is going to be a percentage long after this that chooses to stay home and the bosses are not going to have a problem with that. >> you're right. look, i was a teacher at goldman, i would teach on friday night, i particularly liked to teach friday night 8:00 to 11:00 p.m. and then gave a quiz at the end of 11:00 and published the names of the people who finished bottom five on monday because that was the way i like to handle things, that was pre jimmy choo there is no way you can know anybody on your team unless you're there you can hide behind zoom you can be reading the sports pages. so i agree with you, it's important to come back, but, david, the subway, they just discovered the concept of the mask i think there are a lot of people who are readjusting their lives. do you think michael corbat resigned yesterday solely because it was the day to name

ms. fraser the ceo i think there's a lot of soul searching going on and we are not supposed to be soul searchers. he is 60 years old, mike i think people -- kelly cramer, the fabulous cfo at cisco, leaving. why? well, it's time. david, they're soul searching, people who we thought were soulless and they're not and that also means no one wants to die getting to work. look, i love the idea that we've suppressed numbers, but how many times do i have to hear cold and flu season i don't want to get in the subway cold and flu season to get back to work >> which may mean that we're not going to be at the new york stock exchange for some time unless we figure out a different way to get there. >> that's where i'm going. >> although we can, i think, imagine all being together fairly soon in the studio as you and i have been of course and will be more and more often in the days to come i mean, it is a slow but potentially steady return, though, in some way. you know, i will be curious to see what percentage of the

workforce does really return when asked to. how many people say, well, i just don't feel comfortable with that and how the companies respond over time or are we just really going to all have to wait until there truly is a vaccine >> i have an analog here look at peloton. the numbers from peloton are unbelievable the ceo was on earlier when you look at it he looks to measure it -- he's got some very good metrics he likes to measure it by the number -- the number of actual workouts, which is extraordinary. they do have the flywheel going, 76.8 million workouts, 332% year over year. why do i mention peloton because when people stay in their home, this is what they do. >> yes. >> and, david, the gyms and the restaurants, they just may be things of the past i mean, they don't work without a vaccine. >> it is a hard enough day as it is, jim, without having to listen to you tell me that restaurants may be a thing of

the past come on. >> i look at the p & l. >> come on they are not. >> i look at the p & l. >> i know. i know, but the day is going to come when this is over and people are going to want to eat out more than ever in fact, i'm eating out all the time outdoors. well, and hopefully there will be nice big heaters and maybe we can keep going. >> try to get heaters. >> don't say that. did you? >> yeah. my p & l is such that i've got to be stan druckenmiller or dave tepper honestly. >> of course i understand it's got to be incredibly frustrating to be the owner of one of these establishments and it is a life-threatening so to speak situation for your business including i would assume yours. >> yes i don't want to take people's temperature when they go in. i own a bar. you're not supposed to sit at the bar. well, okay, what do i do hi, i have -- i had 17 tables, now i've got three tables. but my costs are the exact same. i mean, what kind of business is

that >> yeah. >> and, look, i have the luxury of making it so it's a labor of love there are millions who don't have that and those are the people who want this bill passed or want something from washington. >> right. >> and, david, washington is a loss. >> we seem to get closer and closer to nothing. the skinny offering made by mcconnell didn't even get out of the senate. >> no. >> you know, it just -- here we are, it's weeks later. it's weeks now since we had mnuchin on and pelosi on that day, remember, jim obviously you remember, we were together on that day. >> sure. >> nowhere >> i don't know, the chief of staff seemed to, as he called himself -- what did he call him the skunk at the party he scuttled a deal, i think. who knows. who benefits from it i don't like politics. i do like the idea that unemployment keeps going down because that's the strength of what can happen. and i wait for, david, yesterday while you were away we had the convoluted story about astrazeneca which had been in

pole position where in what i regarded as somewhat disgraceful disclosure at a jpmorgan conference that maybe it works, maybe it doesn't, maybe someone is sick, maybe not david, the vaccine i think when you find what happened, the recruitment i bet took a stunning decline when we heard about what was naturally going to be something that went wrong when you have hundreds of thousands of people trialing. >> yes, but you have to find out and we have to find out whether or not that patient in particular was positive with covid and whether perhaps what they had was caused by the virus not by the vaccine or whether it was related to the spike protein which would be included in many of the vaccines. there are a lot of questions there still, jim, and certainly gave some people pause i do want to come back to -- i do want to come back to earnings and to the stay at home economy. >> sure. >> you were talking about pell to be and then we kind of went off track for a moment or talked about some other things, but the

ceo was on "squawk box" earlier and talking specifically about the company's prospects post-covid and here is what he had to say >> we believe what's happening here is a secular move from working out at a different location into the home when you have a choice of working out at home with fantastic instructors, with a very supportive community, with the incredible gimified and network software and best hardware in the world why would you travel we think that post-covid this is still an incredible growth story. >> i assume zoom would tell you the same thing in a different realm but similar. >> yes zoom, by the way, integral to the exciting story last night and oracle that we will get to planet fitness down 22%. planet fitness is probably the one that will be the survivor, most of these companies are thinly capitalized, lots of mom and pop gyms stay at home kroger last night -- kroger this morning

reported a good quarter. it's not good enough because they only did same store sales of plus 14% when rodney mcmillen comes on later this morning i think people will be quite excited about the kroger story right now not running enough and there are people who say -- i'm sorry, he's coming on -- oh, sara has a close relationship with rodney, that's fantastic, sara eisen. >> yes. >> we had kroger that was good, oracle that was really good, chewy that may not be good enough, peloton that just -- i'm crazy about, even as my wife uses it as a clothes rack. then we have good stories. domino's, good chorts chipotle we are filled with positive research and positive earnings today on a slow friday that does color things quite a bit the skunk in the party to use meadows' term is nikola and we have to do more work on nikola because -- >> we can talk a bit about that

later. let's get to oracle, though, because i usually do have a good read on that, it's a company that you've followed pretty closely, jim and it was a seemingly strong quarter, safra catz on the call saying any number of things and larry ellison as well about their unique position in the cloud market, the only cloud vendor that competes in both the enterprise applications market saas and infrastructure as a market as well. >> they just make a lot of money. $4.2 billion operating number up 8%, margins 45% up 300 basis points means tremendous -- the oracle cloud. let's talk about that. obviously ellison is very proud about it but he's talking about going up and doing well against amazon, microsoft and google hardware was a positive this time, that was an acquisition. license is up 8 versus a consensus of an actual decline revenueacceleration to plus 2. people were thinking it might be down 4

this is the congratulations quarter that many people had been hoping that safra and larry would deliver. i urge people to listen to it. you need to know what ellison is like ellison is old school. frank slutman from snowflake old school i like the quarter and i think the stock can go higher. maybe there's room for everybody. i've been saying that oracle has been a donor, a share donor to salesforce and sap i don't feel like that after last night >> another interesting thing just to note as well with safra catz was talking about shareholder value in a broad sense and how much stock they bought back. they bought back 40% of the company in shares over the past ten years. spent $19.2 billion to buy 361 million shares over the last 12 months that's a heck of a capture right there. 40% over ten years i know some politicians may have a hard time with that.

you do wonder, jim, whether that -- i mean, i know they would say, listen, we have plenty of cash and we're using it to benefit shareholders is there other ways they could have put that to work to generate a higher growth rate or do you think their capital allocation has been superb. >> i don't think so at all i look at the mule soft acquisition, the tab low acquisition that salesforce did. people think they paid a lot but look at salesforce market cap. larry ellison is close with marc benioff and i just say, do you know what, you had to pay up in order to be able to grow salesforce is the modern day oracle, let's call it that, of course, because they're cloud native and salesforce is $225 billion started well after oracle and oracle with all -- for all that stock they bought it's $175 billion. david, i think that if you could grow to grow, that's the way to do it.

i know -- every acquisition that marc benioff made including some that he came on our show to talk about has been ridiculed, but look at that look at the run that stock has had. >> right. >> and those acquisitions have been integral to building a sweeter product that has made it so it's an unassailable choice with amazing numbers oracle has low single-digit growth numbers, mid single digit. we're talking about 20s for salesforce. >> i know. this is a market to your point that rewards growth more than anything else. >> indeed. >> great to shrink the numbers shares outstanding and get your eps up but may be better off generating a higher top line to your point as you well know, jim, it is a somber day, it's the 19th -- hard to imagine -- 19th anniversary of 9/11 today. and it's a day of remembrance, of course, ceremonies under way here in new york, at the pentagon, as well as in shanksville, pennsylvania, this morning. sden we return the nyc and

naaq will both observe a moment of silence. stay with us even shells represented value. then currency came along. they made it out of copper, gold, silver, wampum. soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. that's why it's time for digital currency and your investment in the grayscale funds. go digital. go grayscale. that selling carsarvana, 100% online wouldn't work. but we went to work. building an experience that lets you shop over 17,000 cars from home. creating a coast to coast network to deliver your car as soon as tomorrow. recruiting an army of customer advocates to make your experience incredible. and putting you in control of the whole thing with powerful technology. that's why we've become the nation's fastest growing retailer. because our customers love it. see for yourself, at carvana.com.

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sack nagy. conaghi. both the new york stock exchange and nasdaq about to have a moment of silence to honor the victims of the 9/11 attacks. this very moment, jim, a moment and day that we will never forget, those of us, of course, who were there so many different things, you can think about, sometimes, though, i always remember those

343 firefighters who were lost firefighters from all over new york city, everywhere. the furthest reaches of the city rushing to get into a building that was burning and unfortunately would fall to the ground, both of them, jim. amazing, it's been 19 years. the recovery of course is something you've reported on very, very closely let's now take a moment to remember [ moment of silence john j. corcoran iii

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final trading session of the week coming up and it looks like we are going to open at least with positive. you can see the s&p looking up almost 16 points we have jim's mad dash coming up right after this

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>> announcer: the opening bell is brought to you by nuveen. a leader in income, alternatives and responsible investing. welcome back domino's is on the menu for the mad dash jim? >> david, when you have a stock that's up 32% you better be real, real, let's say evidence if you are going to go from hold to buy right here. cohen has it cohen's piece has the now digital 75% of 2020 sales are digital. that means you can do it by your cell phone, you can do it by your apple watch here is what i think is important to put into context what i'm saying and what mnuchin should be listening to and what pelosi should be listening to. they expect share gains 51% of

the quick serve that is made up of regionals and independents. they do not have the ability to spend on technology. they are dinosaurs domino's is not. domino's will crush them in the same way that wing stop is crushing companies in the same way that brink are turning into wings is crushing companies. you can't compete with domino's pizza even if you get -- because it's 9:26 i have to do it, say a 9.2 from one bite which is another operation by the incredible david portnoy. >> yes. >> you can't because you can't compete with tech domino's is a tech amen that sells pizza and the pizza is much better. they have to get the wings better, rich allison promises because they are awful this is the problem with america right now when it comes to unemployment domino's, chipotle, big number bump they can spend on tech the most that restaurants can spend on tech is bring square in let's watch it because this is where unemployment hits -- the rubber hits the road in the fact

that domino's is going to take -- look at that a gigantic amount of share it's just happening now. >> what's going to be left on our city streets we won't have our local pizza place. >> no. >> we won't have any retailers i guess we will have amazon mini warehouses taking over the city blocks so they can deliver to us more quickly. >> chip omt lay. >> digital everything. >> yes, that's the reason why starbucks is going to do so well, they will take advantage of a lot of open spots and negotiate hard deals with the real estate investment trust that unfortunately own way too much real estate, you missed a lot going on there with simon properties and brookfield. david, here is what i think happens, you have to go back in time to when you and i were younger when there were a couple restaurants, i worked at the block and cleaver which we called the block and cleavage and it was a terrible restaurant, mr. fox was -- never really liked him, one time my father has a run in with mr. fox, it was terrible, i was a

dishwasher at 1:00 a.m. my father said he is not a dishwasher, he is a busboy these were the places that will survive, institutions, but do you know what, what happened yesterday, david, century 21. >> 21, yeah. >> where we first got our shirts, where we first got our belts. gone century 21, an institution and that's what america has to be thinking about. so what do we have to go -- it was years ago they took out mo ginsburg, but century 21, that's what you did when you started work. >> it was right near us at the exchange, i would still stop by there looking for some burring ans, they had good shoes of course. >> i had a fight over a shirt there. they gave me $25 gift card when they heard about it. but this is a very important thing because these are the companies that can't make it you can look at retail and say century 21 had a pretty good

franchise, but that's an independent company. >> anytime i was in there you would notice how many people were tourists and of course we know what's going on in cities like new york where there are no tourists right now. >> this is just a tough time we have a mayor, by the way, who is anti-business and anti-police, that's not exactly a good setup >> it's very difficult time for new york while we will come back, it's not going to be without a good deal of hardship between now and then. >> david, i have to comment -- i have to comment that oracle is really -- for the first time oracle is having a sustained move, it's going -- look at that, it's an all-time high. this is much more of a bellwether for tech than people realize. >> we looked at the realtime exchange there of course, saw that it was almost all green as we do get an open here to your point oracle up over 6% and when we talk through some of it earlier they were talking about the fact that a zoom even has become -- >> huge customer. >> becoming a much bigger

customer, yeah. >> no, it was a great call of course we have to -- mark did a great job, got a lot of customers, but larry ellison is so back and he's ferocious as always, competitive as always. i mentioned him, i mentioned slootman from snowflake. you have a couple belichicks and most of the people are like, hey, go along, get along, but his company is driving a lot of the tech move today and then we see the financials up, that will last, what, david, until 9:47? >> yes usually that is a short-lived move that you refer to in the financials by the way, i think your buddy slootman will be a billionaire, so is the cfo so the snowflake ipo. usually you don't get that duo, both becoming billionaires on day one. >> he took service now where it has to go. he is a remarkable man

they should google things he has written and understand that you make a bargain with him, you go to work for him and you become a multi-millionaire. i always love that he's a guy who has a cot in his room. i remember when he retired he came on my show announced his retirement and basically said i took it where it has to go, on to the next. he's great, of course, marc benioff big investor in the company. berkshire hathaway big investor. it's interesting it's going to be the next big thing we will be talking about if you go to try to understand it everything is very, very difficult to understand snowflake because it takes 45 minutes per thing that they have on their website and the chat bot is not that helpful, sorry, frank, unless you are a customer not palantir there's way so much discussion about palantir not nearly enough about snowflake. cloud-based company that once again, this is what everyone is going to the cloud and frank has figured it out again boy, i like him. >> at some point you're going to have to explain to me what

snowflake does, then we will reserve that for another time, i guess, jim, it may take a buy. >> david, biotech is rousing it's rousing from its slumber. look at that biotech, david, stands much more for antibody than cure, vaccine. we've stopped talking about biotech. >> we'll take it we should be still talking about antivira antivirals, should be talking about the antibodies particularly given the varying estimates of what we can get a safe and effective vaccine into as many hands or arms as possible. >> you want to get it last it is funny that it is so hard to -- to get everyone to enroll and right now len schleifer is doing his best to get everyone who is sick or knows someone who is sick in the regeneron trial and i think that is such an important thing, but it is mono

cloenl antibody. if you know somebody who has gotten it this is the one to go to it's lost in the shuffle, david. there's so many and they need a lot of arms. >> it shouldn't be again, i will come back to merck as well, ken frazier and what they're do there and pearl mudder with their anti-viral, expanding phase two, in phase three and rolling. these things are rolling ahead and they may end up being as important if not more than the vaccine. >> they will be much more important. >> if you have an oral anti-viral that's available, if you get sick, first of all, you will be sick so you will be inclined to take it as opposed to a vaccine that some people may have some resistance to, we hope not these are going to be very important and it does deserve us continuing to pay close attention, jim, and get updates. in fact, i'd like to get more of an update on the mark effort. >> i do think that the market will fade here again because the people who bought at the bell

are flipping and then you take a hard look at it. remember september with a very tough month. a lot of it is election oriented, you know, hate him or like him, trump is out there saying good things about the economy and the market and vice president biden really doesn't address it other than more taxes. we have an audience obviously that's very geared toward making money in the market so it could be that the vice president is an a nat ma, at the same time i think there are a lot of us that are concerned that somebody has to pay we just spent a lot of money. >> we've spent a lot of money and we have a widening -- continuing widening gap between the wealthy and not. the pandemic seems to have only exacerbated that unfortunately. >> i felt that last night, restoration hardware, rh, gary friedman with numbers that were extraordinary, stock it up 80% his stuff is not inexpensive, it's for second home and it's to turn someone who moves from the

urban to the suburb and who is typically very wealthy to be able to redo their place and i think that restoration hardware now rh is very much a tell of what is going on in this country which is a rich richer we are not -- i'm not lennon, although sometimes i do look like him, but it's important to note. >> you do, yeah. well, listen, your point is well taken and it's one we've been talking about and it's only gotten worse and it may be reflective of our politics these days which don't seem to be much about unity in any way jim, you mentioned the financials, they're starting to already turn around. it is interesting to look at a wells fargo, $98 billion market cap, i think they have 266,000 employees. paypal's market cap is what? oh, man, 200 something billion. >> yes. >> 23,000 employees. kind of speaks to what we're talking about doesn't it in terms of digital $223 billion is the market cap. >> it does seem that they have to build the culture up.

look, charlie scharf can be a miracle worker, the ceo of wells fargo, but miracles must occur ubs raises it to neutral, but, you know, david, it's not great. it's not great >> no. no jim, i want to go to the pentagon now, of course, as we pointed out as people know 19 years since the 9/11 attacks on our country including of course at 9:37 a.m. that morning when flight -- american airlines flight number 77 hit the pentagon >> present arms. [ playing taps ]

>> ladies and gentlemen, this concludes today's observance thank you for joining us this morning. always a difficult day, of course you know, we recognize some of these transitions can be somewhat jarring as well as we

watch the pentagon there and remember those at the building and of course on that flight jim, we are going to get back now to talking stocks. you know, a few things we've been following here as well, of course, over the last few days, the fight over tiffany which has gotten very ugly very quickly, although it was brewing under the surface for quite some time. not that much new. we saw the news yesterday, lvmh also going to file a lawsuit in delaware tiffany is seeking an expedited ruling so they can get moving on a trial very quickly but so much of it will come down to that letter from the french government and whether or not it's an actual order is it a real order or is it simply a request you know, it has to be an actual order if it's going to be anything it must be final, binding, nonappealable order. and then they're out they're out of the merger agreement. barring that, it could be very interesting to see if this thing actually does get to a trial and whether bernard arnault would actually take the stand and what discovery will find. but certainly no shortage of

drama there, jim, as i know you've been focused on the underlying business and have questions about the sustainability. >> gary friedman the ceo was talking about lvmh and how brilliant they are and arnault and how brilliant he is and how much money you should be making if you are in luxe i ri which does call into question is tiffany too regional, too new york how have they not exploited their brand? why aren't they making more money? that's what i thought lvmh would be able to do. if we just focus on tiffany for a moment we have to ask what are they doing wrong because, boy, the one area that has really held up is luxury spending they should be making more money, david they are just not. >> it is coming back and they will be profitable in the current quarter, i think they've said that of course and they are going to show decent year over year i think, jim, to their defense. that said, they are in malls, as you pointed out, no at good place to be. not a good place to be.

>> and yet they still -- >> lvmh -- they have a great brand and, man, are they ticked off about paying the dividend, but they are allowed to pay the dividend, that was in the merger, they are allowed to do that but, man -- >> tiffany -- how about simon properties >> yeah, what about it >> taubman. >> yeah. we're in michigan there in court, yeah, i think we will be there in november i believe it is sometimes i forget the dates we'll see. not a strong lawsuit not a strong lawsuit at all. people make fun of that complaint all the time, but you never know when you get to court. the worst thing that can happen is they actually have to buy taubman. >> it's funny, i get -- royal caribbean, you get norweigian, you get carnival and you get simon. this is a package of robin hood traders. simon properties trades very, very early every single morning

and it's almost as if the younger investors have said this is -- this is the bell cow for this market which is simon properties i think it's so funny because mr. simon is not of the robin hood ilk >> no. he is not. he is not. he's an ornery fellow sometimes. >> ornery. ornery >> ornery, yeah. what were you going to go with >> i memean. >> maybe that, too i've sat next to him, perfectly pleasant >> how are you doing he goes $33 billion. i said i'm saying hi he says that's how much we've given. that's how much -- you -- i said, well, i just wanted to meet you he goes, $33 billion put my hand out, you know. that was, by the way, pre-pandemic i used to do this thing, david, it's wild, i would take my hand and i would reach out and someone would shake it and give me every single illness they have we've learned better

>> don't even talk about it. yes, we have yes, we have jim, on m&a i did want to hit navistar they wanted to buy what they didn't already own 16%. they did make -- this has been reported but i can confirm a $43 offer. i'm told by people close to navistar it's not going to do it but it's a starting point and it's a live matter and maybe they get there over the next month or so is the hope. those who are holding out for 50, i don't know, but, again, they are at least they're confirming 43 and saying it's a starting point >> there's a phenomenal bull market in things like struck engines. people don't talk about it because it's so boring look at cummings, look at this cummings stock, it's up 16%, won't be z scaler but it's a real company, 19 times earnings, what a fantastic company

caterpillar no one knows why it's going up. wait a second. we just had positive rail traffic. intermodal is so strong, david, intermodal -- by the way, fedex just went up 60 points, united parcel going up 40 points, does anybody care there is a bull market in trucks and transport and a lot of it is because of dot-com. >> there is some underlying strength i had david berman on talking about 9.2%, 9.6% year over year sales growth and the detailed numbers he goes through. the bigger are only -- the biggest are getting even bigger and the department stores, mall-based as we know not doing well, but the numbers, jim, are going up and rather -- rather dramatically. >> look, i think that people who think the whole thing is a bubble, i urge them to look at a stock like deere i mean, deere has great orders, okay, so it sells at 22 times earnings, maybe that's expensive, $213, stock up 13%,

what's the matter with owning deere? does everything have to be crowd strike does everything have to be ring central? david, you can make money and not be in ring central >> okay. if you say so, i believe you jim, really quickly, i did want to follow up on a story that i gave some time to last week, remember, altese u.s.a. and rodgers communications make an unslis dated bid for a family called cogeco. altice owning subs in the u.s. they said our shares are not for sale and let me be clear our refusal is not a negotiating position it is definitive so what are they going to do i just wanted to come back to this very briefly because it was something we asked the ceo of altice u.s.a. about. unclear. rodgers is a large owner here, this he do seem very frustrated

and i continue to hear it's not over, but i'm not quite sure what the next move may be. i just wanted to mention that, jim, because we didn't really do a follow on, what was this rare strange unsolicited offer for a company that was family controlled with the votes and the family said, not interested. go away. >> this is part of the stay at home -- one of the things that hasunnerved me and i don't wan to be like the late don eye mass but i had someone wait a full day to get the dish, full day, they gave me three different time slots and they ever showed and they confessed to me that i can't get the dish until october. last day of september or october. this is what people want because they want football and i have not seen the numbers yet, david, from last night, but you stay at home, you want the dish. dish is so poorly run, directv i mean, they are -- i'm sure they will reach out to me today. don't bother call my mother.

>> we will see what happens in terms of directv and whether or not it has a different owner or is not owned by at&t any longer. even perhaps we get an announcement by the end of the year altice europe patrick drahe making a bid to acquire what he doesn't already own. wants to make it private frustrated with altice europe. he controls that, also altice u.s.a. but they're separate companies. let's get to rick santelli now, check in on the fixed income markets rick, which you haven't had a chance to talk about this morning. >> hi, david yes, good morning. well, we had that cpi and it definitely was hotter than expected as a matter of fact, if you look at some of the components within, for example, core cpi up 1.7% year over year, these are big numbers. if you just look at the various aspects that propelled core numbers up both headline and year over year, one of the biggies was used cars and trucks up the most in more than 50

years. and if you called it and you had the right position looking for yields to move higher you didn't make any money let's look at an intraday of ten year notes, the minute the data came out the yields basically nose divided my question is much of that were traders positioning for some hotter than expected cpi data. there has been a spat of higher inflation data and a lot of stories written about how we may see some higher inflation data down the road, but it has not been a profitable trade. as a matter of fact, let's look at a longer term ten-year note chart. let's start out in august and notice that the yield, all time low yield in early august was 50 basis points, let's zoom it out a little bit more to june and see what the recent high has been on a closing basis it was 90 basis points, the midpoint there is 70. this is the point. 70 basis points has been a stopper. every time we get a little bit above it yields seem to always break back down to the down side, prices rally and that is something we want to pay close attention to finally, the dollar index. here is one week of the dollar,

on the week it's actually up a half a cent. it's holding from some trade under 92 which was a rarity. still down on the day. in the grand scheme of things it's still down about 9% from its highs in early march david, jim, back to you, and have a safe and good weekend >> thank you, rick santelli. with the bond report of course markets are up and, by the way, we're 49 minutes into this show and we haven't mentioned apple or tesla both of them are higher after rough weeks. we're back right after this. as business moves forward, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers...

and deliver our products. but no matter how things change, one thing never will... you can rely on the people and the network of at&t... to help keep your business connected.

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tiktok is moving along and it will ooet ber soeither be clr sold, and -- no, i am not extending the deadlines. there is no extension of the tiktok deadline. >> tiktok, man, and it is coming close, jim, as the deadline. the degree of difficulty, and you know in the olympics and the gymnastics and the degree of difficulty and the score is based on that and, man, the degree of difficulty to get this deal done between the chinese and the export, and the ai and

the taking the code in and taking a snapshot of it and a year of updates and not clear you can get and what is the value -- it is not an easy thing. not an easy thing at all. >> and everybody is trying to get the undercurrent of all of the oracle call is whether they will be involved. it is a little bit of a farce. microsoft has the ability with the code writers, but this fire sale of the asset, because it is spiked is causing the rumblings, and walmart wants it, david. >> but jim, if this thing is going away on the 15th, theya t are going to be a lot of teenaged girls and they are going to be upset. i don't know what platform they are going to go. >> oh, no, they may have to read books. this is a crisis, david.

it is terrible, and tolstoy, and who is going to help them? hemingway. >> does tolstoy have a website >> spotify. >> got it. quick commercial break, and stay with us, because we have to go, says the producers, but we are coming right back. when it comes to parenting, you're a pro. you know your kid doesn't step around puddles. and you know cheap leaky diapers are an amateur move. you need luvs pro-level protection. luvs. parent like a pro.

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time for "stop trading" and ring central. >> yes, this is of course, work at home and the whole deal, but, david, last night, and i know you like to look at this, but they raised $600 offering a convertible note due 2026, and david, if you want to know the bubble, it is that kind of offering, and i will concede and accept that is a bubblilicious offer. >> you had a low conversion rate >> well, it is 52% conversion premium. david, who buys that other than somebody who wants to be short ring central and have protection i mean, oh, my, can you borrow money cheaply if you have the mojo and that is a technical

temperature, mojo. >> mojo. understood. what do you have on the mojo "mad money" tonight? >> we are going deep into the two-sided argument of the short seller who admits he is short, and hindenberg, and it did not work out. >> good point. >> and we will take the other side, too, and a discuss how much fun he is, and maybe we will end up with allen hurst, i don't know. >> well, that is really interesting and controversial. jim, have a great weekend. >> you, too, buddy. i hope your son got off well. >> so far, so good. thank you. all right. jim. jim cramer, and good friday morning to all of you and welcome to another hour of "squawk on the street. and kyle and morgan are both off this morning.

and remembrance ceremonies are under way in new york, and at the pentagon and shanksville, pennsylvania, and it is the anniversary of the 9/11 attacks. the president and the first lady are at the flight 93 memorial in pennsylvania we will bring you that moment of silence as well as we have already done the other ones this morning when that begins. but let's start with the markets. we have the dow, and the s&p and the nasdaq all on pace for second straight negative week, and joining us now is the chief economist and global head of economists at morgan stanley, and also, the head of capital economics atciti private bank,

and so kristen, what do you see? >> well, there is going to be a little pull back, but nothing more than that. >> so does that mean that there is nothing more for the investor to do than to not react to it? >> ell, we have been telling the investors that in june and july, we have broken it down into the covid defensive stocks, and those that have received a tail wind from the pandemic and the work at home and stay at home, and the other covid are the industries that are the most impacted. we have been doing the hedging on the covid defensive stocks given the massie momentve surgee have seen, and not to totally take off the chips, but to lock

in the gains, and then to rotate into some of the areas of covid cyclicals to see an attractive entry point looking out 12 months. >> so, jutan, and to kristen's point, most of the pullback is not in economically cyclical move and in the bond markets to indicate a macro stress environment, but you are looking for the strong global recovery and the v-shaped and what is confidence that it is in fact under way. >> well, you know, looking at the data and the margin of the status that things are going on much faster than we have studied earlier, so we were expecting the global economy to come out precovid levels by the fourth quarter this year, and with the recent upgrade, we think it is going to be possible to achieve it in the early fourth quarter of the year. and for the u.s., we thought

that it would be fourth quarter of next year, but even now, we are looking at the second quarter of next year. and look, i think that the most important change that we are observing is that we are able to take the economic activities to a much higher level and even with the wires with us, and what is interesting is that for the u.s. consumer in the month of august, that we had all of these employment schemes ending, and then a decent recovery in the spending. and the chief economist is expecting a month over month increase in retail sale, and this is telling us that things are on top. >> and so, you know, some would say that the easy part of the recovery has already happened. so as we need to see the services come back, the tougher road is ahead, and there is risk

ahead, and so is that recovery continuation without a stimulus, and that certain, and what should the investors do given the risk events for the rest of the year >> well, we believe that yes, there are risks, and we have to watch out for the covid infections in the winter, but, look, as of now, what is interesting is that the covid sensitive services are also improving at the margin. yes, international travel and tourism is the one that is going to be the last to come out after the vaccine is available. but indoor dining for example looking at the open table data, it was down 60% on the year over year basis, and the sit-down diner situation, and that is a 35% decline just in the last six weeks. so you have seen a significant improvement in the segment while the virus is helping us to learn

how to get by, and we are seeing the self-sustaining recovery now, and we are seeing that it is showing up in the jobs data for leisure activity, and we are seeing a wage growth, and so, one important number that i would like to highlight on that front on the point of some kind of self-sustaining recovery is that if we are looking at the personal income for the consumers in month of august, it will be a little bit of precovid levels, and so, that is the most important driver to the extent of which the consumers have that about the covid levels without the support of unemployment benefits, and that is what is giving the consumer in a better position now than what it was before. >> kristen, do you agree with

jutan's optimistic view that this recovery could be self-sustaining even if we don't see any more stimulus for a while? >> there is one look of volatility going into the end of the year, and this is elections, and it is not the election result, but it is whether there are delayed results or a contested election so you can break it down into the short term, and the longer term. and the shorter term, we aare keeping a look at the volatility, and making sure that the portfolio is going to withstand the volatility, and looking at the u.s. consumer, and the fact that the u.s. consumer was strong coming into the crisis, and so when we are looking at the fact that we do see the improvements in the data, and the fact that there are opportunities to build the position within the covid cyclicals, those are the areas that we want to be positioned to add the diversification to the portfolios, and one more thing that is important is that when you are looking at the

opportunities to put the capital to work, and just remember, if it has not sold off, then there is not an opportunity to bounce back and recovery, and we tend to have a very home bias when we are thinking about building the exposure, and allocating the portfolios, and so we are encouraging the clients to look at global diversification as a way to benefit from the subsequent recovery. >> kristen, to tie it up, how are you looking at the longer term expected returns for the investors, because we have factors that are looking a like they are in the beginning of the recovery cycle, the valuationings may not match that. >> yes, in terms of the overall positioning, what we are doing is to pulling some of the exposure out of the covid defenses, and allocating to the cyclicals, and allocating on the international basis. and for example, we are putting the capital to work in latin america, and the region that we like the best there is brazil. the reason why is that when you are looking will at the numbers

and the potential for your point, they sold off 50% in terms of equities and fx and the exposure to commoditiessh and only recovered a little bit from those depths, so brazil is a region up 30%, but they have the ninth largest economy in the world. it actually has the government doing similar stimulus and monetary policy in terms of the rate cuts and the stimulus similar to the gdp, and that is where we see the potential of the strong returns going out 12 months. >> great conversation for both of you. thank you very much this morning. >> thank you. >> thank you. a foreclosure crisis may be in the future, and we heard some optimism, but clearly some ways to go for the homeowners. >> yes, after improving substantially last week, the number of borrowers in covid

mortgage programs dropped this week signaling that we have a long way to go to help recover from the pandemic ills. 7.3 million borrowers are in forbearance, and that is about 7% of all mortgages according to black knight. these plans are going to allow borrowers to delay payments for three months to a year. more than three forbearance borrows are going to be coming out to start -- >> diana, sorry, sorry to interrupt. we will get back to you in a moment. we want to take the view toers a moment of silence in pennsylvania to honor the victims of the plane that crashed there on the way to d.c. >> to honor the families of flight 93. please join on stage today, his wife nancy and his cousin

lorraine grace who was a senior flight attendance on flight 93. those who are closest to ed know of the personal passion for sharing the history of the american civil war as both an author and -- >> diana, sorry about that interruption, because we have a number of moments of silence on this solemn day, and now you can fill us in on the report. >> yeah, of course. we were talking about the number of borrowers in the mortgage bailout and forbearance programs, and the vast majorities are in renewals and they have extended the plans by another three months, because they are not able to make the mortgage payments. 48,000 borrowers started the first forbearance this month. that is the lowest, but it is showing that people needed help for the first time on the loans. so with the forecast for foreclosures, they are

deteriorating, and the number of seriously delinquent mortgages have more than doubled from may to june, and hitting the highest level since june. and core logic is saying that serious delinquencies could double again in 2022 which could hurt home prices and equity, and the home filings are historically low, but they have jumped 11% from july to august as several moratoria continues, you can expect to see more. >> and as the peloton is reporting more numbers, it is not as up as it was indicated in the prior session and opening of the trading. we will ok alot the stock in depth next. stay with us. that does the same.

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peloton shares are higher after reporting a beat on the top and the bottom line as david mentioned before the break. far from that indicated range, the shares were up as much as 12% pretrade. the sales jumped 172% from the same time last year. the ceo john foley spoke about the company's growth earlier on "squawk box. >> we believe what is happening here is a secular move from working out at a different

location into the home. when you have a choice of working out at home with fantastic instructors and supportive community, and a incredible gameified and best instructors, and this is still post covid, an incredible growth story. >> and joining us is james blair and jonathan, let me start with you. what are you making of the early moves and the stock was up 12%, and this is not one of the quarter that it is not good enough, because some of the results of the other stay at home name, and peloton blew the highest expectations out of the water here, and is this more indications that the valuation of the stay at home stocks are too frothy >> well, it is a good question, deird deirdre, and thank you for

having me. it is a stock that has tripled year to date, and really as you are highlighting and the blowout quarter, and the combination of the results, and power based and reporting twice with the probability, and what is expected by the street. plus, at the very bullish outwork of more than doubling the revenue growth expect fod or the year ahead, and planning to expand the profitability further, and the standing engagement, and signs they can be addressable market, and we will give you more on that, and also what supports the investment thesis here. >> bernie, you have heard from ceo john foley, and he says that the software and the hardware is enabling them to succeed in the post covid world, and do you agree with that and does that coexist with the brick and

mortar gyms? >> yes, and we wholeheartedly agree that the way that people are working out is changing, and it is a high quality user experience that is cheaper, and also more convenient, and also as the gyms reopen, peloton is going to be able to drive engagement and users. and so, in addition to what we are looking at, too, because of the focus on the affordability, peloton and other home fitness is going to be used as a complement to the gym rather than a turnkey solution like it is right now. >> bernie, what do you they market valuation is in terms of the valuation down there. and i know that you have a 30-30 market for the peloton, and is that what you are looking at right now? >> well, the big thing that the market is looking at is the

makeshift revenue going on, and so we are going from the private to mostly subscription over time. the subscription is recurring and higher margin, to inflate the margin, and so we are looking at the company in some businesses that is the revenue on one side, and 25 times on the subscription side and looking at the sideco coms. we will get an update on to ipo, and so the 11 million estimate is going to be increasingly conservative this time next week. >> and jonathan, how much of the market is left to peloton, and the question is how much of a head start that the company has, and whether or not it has a defensible franchise here in the whole category

it is a great point, mike, and looking at the concept of at home fitness, it is not new. peloton is bringing the whole platform together, and that is why you will see the perform of word of mouth, and it is very high, and so they are doing something right, and the user-installed base, and inflection growth of top and bottom line, and so today, they are clearly the leader it is hard to catch up, and we will see several winners in the vertical market overtime, and we will be confident that peloton is that leader. >> bernie, dig into competition, because john foley this morning, he seemed to throw some shade on another connected fitness app or the hardware mirror which is of course acquired by lululemon,

and he said tbd if there is a market for them, so who are the winners in the space, and is it big tech such as apple to jump into the ring at some point? >> well, the comments were interesting from john this morning to say it is smart by them to take cash and get out of the market. other competitors are apple, and that is a big one. we have been hearing of them since we launched earlier in the year. we are expecting them to get the apple fitness app with the next ios update in october, and what that is going to include, and maybe some outdoor running or the yogaer to boot camp or something like that, but the key is that it is not going to be free. articles are mentioning that it is a part of the paid bundle service, and not going to but a

brief competition. and also, they have given up thousands, and thousands of hours of the library that gives a advantage that is real, and they have created a fly wheel which is driving the word of mouth which is positive. >> right. and the great instructors, too, and it is a fly wheel. jonathan, one of the metrics they found interesting is that users are working out 25 times a month on average, and what is that telling you about the addressable market. i cannot imagine that planet fitness subscribers are working out that much? is there a place for this to coexist after the covid crisis >> well, i can say that they are looking forward to have user

engagement to work out more than 25 or closing in on 25 a month which is double than what it was last year, and two things. each cohort who buys a peloton is working out more, and that is speaking to the vessel and more popular. and also, peloton said that 2 1/2 people are using subscription, so the more people in the household that are engaged, the better the proposition is, and the stickier it is, and from the financial perspective, and the more valuable that subscriber becomes. positive trend, and i know that john foley likes that as the leading indicator for the business and it is very difficult to argue with that and the trend has been favorable. >> jonathan, i did not mean to say that they are taking customers away from planet fitness, but my point is that at the elevated valuations, does

peloton need to go more mass market, and instead of pricing the treadmill and the bike lower? >> well, there is a good position for it, and you have seen it in the market this year, and the model is with the scale to lower the price and bring in the accessibility. if you are looking at the gym number market, the number of members who paid $25 to $49 a month is roughly the same size as the number of members who pay more than $50 a month for the gym membership, and bringing that down, they are open up a large market, and still aiming higher than the value price of planet fitness and that is clearly the direction they are moving. >> jonathan and bernie, thank you for joining us, and peloton shares are up about 4.5%. yes, the etf perspective is

the skyy, and it is up more than 25% year to date, and clearly up more than half a percent, and 10% below the recent highs, and down with the tech group. this is getting a boost from one of the largest moldings, and oracle, and focusing on the cloud-based products and services as people are working remotely. oracle is up double digits and down single digits for the year. we will take a quick break. ♪ ♪ ♪ ♪ makes it beautiful. state-of-the-art technology makes it brilliant. the visionary lexus nx. lease the 2020 nx 300 for $339 a month for 36 months.

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welcome back, everybody. i'm sue herera, and here is the cnbc newshour. at least 70 people are missing in the complex fire, and the winds have eased to help slow the blaze and helping the firefighters to make some progress against it. and now, more than half ha million people have been ordered to evacuate which is more than 10% of the state's entire population. portugal is joining other nations to tighten health restrictions to battle covid outbreaks. switzerland and austria are announcing other restrictions. and this could have been a tragedy for a family if it weren't for an 18-year-old who came to their rescue. this 18-year-old fought off smoke and flames to help a

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the country's largest supermarket chain kroger is out with earnings. sara eisen is here to break them down. >> good morning, mike. and eating at home is very much a thing across the country, and that is message from kroger, the largest supermarket chain in the u.s. rodmy mcmullen the ceo is just now speaking on the conference call to investors and talking about the change of the habits of the consumer. he says that he believes more meals will be continued to eaten at home for the foreseeable future, and this is a direct quote. he says that they are seeing a lot of first-time customers ordering online and a majority are telling kroger they will continue to do so even as the economy is opening up. as far as in the store, they are seeing fewer people inside of

the store, but bigger basket sizes, and in other words, people are stocking up more. so that is still propelling kroger, and explains why sales came in better than analysts explained. and this is sales excluding fuel for stores opened for at least 15 months were up 14.6%, and that is better than expected and digital is the driver. that is on par for the numbers that we have been seeing from the competitors like target or alberson's which posted larger digital growth. but for kroger, the highlight is the outlook. they expect the second half of the year to continue to look strong, and stronger than wall street is expecting with the comp store sales expecting to increase 13%. as far as covid costs, that is another discussion on the call, to cost them $15 million in the quarter, and lot of talk about the associate appreciation and

how they had to spend on the cleaning and the safety to keep the associates in the store, and the digital investments which is another major talking point. they say they can reach 98% of customers online. there is a scrutiny on the strategy, and compared to amazon and walmart who are hefley spending and the digital, but the message today is that they, too, have been and kroger has more than 2,000 locations for the pickup and delivery within the store, and thati, they hav been work on this for years. >> and so, with the food pricing and the inflation, and we have the cpi numbers today, and how is that bearing on kroger's results? >> well, it is helpful that the food prices are elevated. so they were not as elevated for food at home this august as they

have been in prior months ark and part of it is the moderation in the prices and the things like meat and poultry, and in covid-19 and the pandemic, a huge squeeze of supply on the meat because of the workers getting the covid and the plants having to shutdown. that is easing through the system, and they are opening, and the meat is getting back on track. so restaurant prices away from food is starting to tick up as the demand is coming back, but they are moderating and it is going to speak to the fact that it is not a persistent trend to have higher food price, and it is helping kroger's food margins, and the other groceries as the wholesale inflation prices for food is lower than the consumer level of food. what is most notable about the inflation numbers is that it is speaking to where the demand is. used cars is up with more than 5% rise there, and the overall

number is higher than expected and the little bit higher is that we will watch with the capacity constraints has moderated for the last month. the biggest question is what happens when the stimulus effect has worn off, because it is working through the system. >> sarah, are the changes sustainable or as the peloton ceo is arguing they are with their business model, but in the case of kroger, is it in terms the of here to stay as far as people ordering from home for delivery >> yes, they are here to stay, because it is the first-time customers and what we have heard an neck tot dote -- anecdotally that they are hearing from the customers, and they do plan to continue to do so. as far as eating at home, there

are capacity restraints with restaurants, and still issues with the pandemic very much with us, and that is keeping the people cooking at home, and buying more groceries, and eating more home and changing the habits, like breakfast, which is a huge one that i have heard from all of the companies consumed at home like coffee, oatmeals, and cereals, and a lot of the trends will stay with us, and the pandemic is with us, the consumers may change their habits, but the more permanent that the changes will become. so the message of kroger like peloton, this is a real permanent change that they are repairing for, and that gave them the confidence to raise the outlook. >> we will talk to it laterb and get with an interview with the ceo? >> yes, exclusively rodney mullen, ceo, 3:00 p.m. "closing bell." see you then. >> yes, you will.

and now, since going public in july, the largest producer of pasteurized eggs in the united states is seeing revenue growth of 85%, and this is the consumers continuing to cook at home, and joining us is the vital farms ceo russell vie yz,, and thank you for joining us. you put out a guy dance for the macro factors and the stay at home trends, and how confident are you that the stay at home trends will continue into the next year? >> well, thank you for having me. i appreciate the opportunity. we continue to see the tail winds of the products that we offer through quarter two that ended in june. i don't have a crystal ball of what is going to happen next year, but with recertainly

enjoying the higher demand and the increased trial and we will do our best to retain the new customers and the consumers who are joining us. >> you did indicate on the call that the potential headwind may be higher on the employment or the headwind, and so you are not that comfortable with the guidance with the uncertainty, and how concerned are you about the weakening economics and the inability perhaps of the people to step up to pay here for this produc product? >> the uncertainty in the economy, and the k-shaped recovery, and the different levels of the economy is distressing for all of us. that said, i think that people at many income levels and many parts tof country are increasingly looking for food from brands they trust and from the robust supply chains that

live the values and focus on things like animal welfare and impact on the environment. and so we are confident that the growth that we have seen is the reflection of the people choosing the brands that we have, and will continue to choose our product regardless of the environment. >> this is sarah, russell, and kroger is confident in terms of the groceries are here to stay, and the journal with the piece of the whole foods with john mckee, and many will not go back to shopping in person, and so i am wondering if you have a digital strategy or considering something like direct to consumers such as meal kits or franchises or what are you considering there? >> well, there is a number to unpack there. and many of the retail customers have meaningful online presence, and what they are experiencing

as kroger reported for the increased demand of the online shopping is flowing through from the consumers of the products, and reversing that trend as well, and we are focused on meeting that consumer where they are. there is a lot to do with the confidence to attract the brand and expand the market share. where we are going to increase online, we will continue to allocate resources, and we are aware to make sure that the consumer is ready to hear from us. in terms of the -- sorry >> no, go ahead. that is my question. go ahead. >> in terms of the direct to consumer, i hesitate to say that we are actively working on the direct to consumer model. frankly, the retail partnerships seem to be working well, and we are enjoying great transparent relationships with the retailers and they have been ter refk to

wo -- terrific to work with, and at this point, it is effective and maybe something that we look at. >> but as you said, you want to meet the consumers where they are, and we have seen the resurgence in the things like the meal kits, so is it something that you would look at in the future and are you thinking of a digital strategy already? >> well, we are and have been for years the exclusive egg of blue apron, and so we have a presence in meal kits, and we love that partnership, a tand are great to work with, and as they are seeing the upstick of t -- the uptick of demand, we are enjoying that growth as well. >> russell, it is something that esg investors would enjoy as well given your focus of common investors, and do you have a

focus of the folks that are a shareholder base, and then stick with you as shareholders >> well, you will see that at the ipo, and maybe you are updated quarterly, when you are reporting the holding. i cannot say that i have a current pulse of that, but many investors have that as a focus and really hungry, no pun intended for the opportunity to invest in companies that are really delivering on those kinds of the commitments to the stakeholders. >> russell, thank you for joining us, and congrats on that first quarter as public holding company. >> thank you, and take care. >> you, too, and the shares of nicola is down with the shares and they are refuting the allegations from an extensive report of a short seller who is going by the name of hindenberg, and it is interesting reading to

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and leslie picker is looking at the implications around it. >> this is a move that is a long time coming, and wall street was looking at only men at the top, and this exchange in april in washington. >> i know it is difficult to go on the record sometimes, but the record has to be made. all white men and none of you, not one appears to believe that your successor will be a female or a person of color. >> he asked the ceos to raise their hands if they plan to appoint a female or minority successor and not one hand was raised but citigroup can raise their ceremonial hand by naming jane fraser as a ceo of a major global bank and is it a coincidence that citi is the first?

well, the board may be a clue, because it is comprised of 47% of women, and that is well above of the rest of the firms with their boards made up of women, but do diverse boards begat c-suites well, they do. and they say that the inverse is true that women in leadership positions have double the number of board seats held by women. globally the correlation is not as clear. several reports have found that regions for quotas of insuring women on boards mainly in scandinavia had no more representation in the classes than areas without quotas than say north america, but if board diversity is a ind kay icator o

c-suite diversity, well it is still only 5% in north america. >> well, leslie, it is going to be interesting to see when we have a woman leading the company. thank you for that. and now, stocks under pressure despite a larger than loss beat, and customers in the first half of 2020, and the shares are down nearly 6%, but remember, it is a on a tear this year up more than 90%. stay with us, and we are back in a moment introducing stocks by the slice from fidelity. now you can trade stocks and etfs for any amount you choose instead of buying by the share. all with no commissions. stocks by the slice from fidelity. get your slice today. makes it beautiful. state-of-the-art technology makes it brilliant. the visionary lexus nx. lease the 2020 nx 300 for $339 a month for 36 months.

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carol tomay cleating her

first 100 days >> shares improving nearly 50% her better not bigger fill loss fee will keep them profitable. this will have to do with the first 100 days on the job. she also talked about her strategy of bigger netter, not . she brought greater operational efficiencies, driving better understanding of the value that we create for customers. tome says her top three priorities are customer and staff safety, adjusting the network to deal with the increased volume

she added more on capital allocation she said we inattetend to have a laser focus on reversing the downward trend the first use of capital will be investments and business as well as operating efficiencies in our company. the second use of capital will be to pay our dividend the third will be to increase the balance sheet. in august we saw allocations, she spent millions on freezer farms to prepare for the possible distribution of the vaccine. >> frank, thank you, quite a consequence sco consequential time taking over a delivery company we got no free pass.

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adyen. business. not boundaries. >> just last week gyms reopened with increased cleaning protocols. fitness chances are still banned joining us now to judiscuss this is harvey. you can open gyms, doesn't mean everyone will show up, what has your experience been so far in terms of willingness to come back to the gym. how close are you to the lower capacity restrictions? >> we're off to a great start. we have passed all of our

virtual inspections the first time around, no issues at all, and a lot of that is because of our higher standards both extremely positive. we worked over the last five months in the covid closure period to develop a comprehensive program to take our high standards that are widely recognized to creating another level and creating a safe environment for our employees. about 95% of them have come back across the country it shows the commitment that our employees have it excites and inspires our members every day. 90% said they're very satisfied with their standards recently positive feed back across the board new york can be a tough market is with tougher standards from our community, and they're

positive that most of which meet, and exceed in new york state. >> the big question is just exactly how many people were working at clubs will return we have been talking about the in-home sentence movement. they're ensuring that it will be trend. >> we were thinking about this precovid, and we see the physical and the digital come together we have had great success over the years. not playing for the moment, but playing for the future and we want today provide a digital compliment to our physical offering. what we have seen so far is since opening new york our membership sales are 150% of

where they were in a couple of basis for the first ten days of september. there is some people that also want a digital climate overtime we think that is the future of what the consumers want and we're going to be very well positioned to do that we do that with our equinox programming which is a streaming platform, pure yoga, and the feed back there will be very strong as well as the reception to our at-home sales as well >> i don't know where they're going, but i think they have to be squeezed given the coapacity restraints

is st your strategy to ride this out throughout a nonprofitable period, or can you still make money and hopefully everyone gets back to normal. >> no secret here, this has been a long haul, six months of zero revenue. we're at one of the hard eest h categories so when you have zero revenue and when you have 20,000 employees you're taking care of, the mask speaks for etc. with that said, the revenue is coming pack and we have done a great job of controlling our expensioe expens expenses we will be winners on the other side, so handling government

regulation and it varies by local ordinance, and we can manage the relationship, and it will yield to a profitable process, but this is a long term play and we're very bullish on where this is going to go. you mentioned peloton, they also demonstrate the demand for fitness accelerates. unfortunately there will be some that won't survive physically. but ultimately the physical and digital coming together on the other side will be very profitable >> congratulations, and good luck with the reopening efforts. thank you, it is good morning, it is 8:00 a.m. at oracle, 11:00 a.m. on wall street and "squawk alley" is live ♪