it is 5:00 a.m. and here is your top five at five. futures surging triple digits after stocks log their worst week since june. technology on the rebound as well despite some investors betting against specific stocks or the sector entirely we'll dig into the numbers move over microsoft as the saga takes a turn ahead of the deadline call it the soft bank stunner.

it's spinning off one of the most highly sought after assets. a possible move that could help the company steer clear of investor scrutiny and astrazeneca's trial is back on track. you're watching worldwide exchange right here on cnbc. good monday morning. here's how stock futures are looking on this monday morning you can see a solid amount of green on the screen. the s&p higher by 32 and the nasdaq by 127. the key index to be watching over the last several months now this after the s&p posted it's worst week since late june and

coming off the first two week losing streak since may but the focus remains on technology. closing down more than 4% since the worst performance since the weekending march 20th and the first two week losing streak since july the nasdaq is now down more than 10% from the most recent 52 week high it was also a record by the way. a number of key events in the week ahead for the markets and your money they include a very big day tomorrow and a few fomc -- a new fomc meeting kicks off and apple hosts it's latest product unveil event with new ipads and watches most likely and tomorrow is the president's set deadline for tiktok to make a deal. a number of data releases including retail sales and housing starts and the earnings continue to trickle in with lennar, fedex and adobe as well.

asia is coming off a mostly higher session the action getting started in europe as well and karen is standing by in london with the news karen. good morning despite the reversal that we saw in the u.s. tech stocks. european markets were still bouncing and that market was a stand out one in europe. we are seeing that in recent months and weeks it gained 2.8% ahead of that 2.5% so we clearly out performed but not quite keeping pace with the ftse this is unusual. the u.k. stock market has not

been the leading market in europe but last week we saw it climb back above 6,000 points. this morning it's very much on the flat line but it did coincide with news around brexit that perhaps negotiations are not going as well with the european partners ahead of key deadlines that perhaps the agreement could be overridden and that's one of the clear catalysts. >> back to you >> back here on the home front nearly a dozen u.s. states are seeing a new surge in coronavirus cases including alaska, delaware, maine, new hampshire, rhode island, and new jersey cases growing by 5% or more on a

weekly average this coming as the national institute of allergy and infectious diseases anthony fauci calls the recent trends disturbing bertha is here with that and more good morning. >> good morning, rising numbers are certainly raising the already high stakes for a vaccine. pfizer proposing expanding their phase 3 coronavirus vaccine trials to about 44,000 participants to help increase the diversity of the trial population and when asked if he expects to have a population ready by the end of the year he said quote it's a likely scenario and we're preparing for it we started already manufacturing and already manufactured

hundreds of thousands so just in case we have a good conclusive read out we will be ready. pfizer ceo will be on with meg today on squawk on the street. meantime, japanese investment giant softbank will sell it's chip unit to nvidia for $40 billion in cash and stock. softbank acquired them in 2016 for 31.4 billion in one of its largest acquisitions ever. it's best known as a designer of computer chip architecture used in android and apple phones. they're also planning to ship to a design the news comes as softbank is reportedly holding talks about taking itself rivate

a huge saga developing we'll see you later on back to the markets, futures are indicating a higher open as a series of deals are raising hopes that battered stocks may recover as the nasdaq comes off the worst week since march the major averages closing up modestly but ended the week sharply lower. the dow shedding 1.7%. the s&p off by 2.5% and the nasdaq dropping by 4% in a week. joining me now the chief strategy at principle global investors. i guess the simple question is were you surprised and how big of a deal is this

>> but let's not read too much into this. and so we should anticipate to have this kind of volatility moves or concerns for the foreseeable future. >> what's the most important volatility driver in your mind is it what's happening here with the u.s. markets and technology? is it the election in the u.s. coming up? what is the biggest blip on the radar? >> you listen to quite a few there are a lot of events on the horizon that could be a concern. for us in the immediate term, concerns around the u.s. election is probably going to be the one that creates the most

volatility >> it's actually been the fed so as long as that's in place we should see things smoothing back down again a couple of months after the election passes. >> the fed has been a factor in these discussions about the markets rallying for quite sometime now they're still there. they're still in place right now. why exactly given the fed and central bank intervention all around the world do we still see the markets as volatiles that we have seen over the past week in the u.s. >> that's a good point one of the things is with the tech rally that has been the key sector performing very well there's been a lot of skepticism about whether it can be maintained we should have anticipated some to be blown up from that market but i think that we should

actually have a fundamental growth continuing. this is not the end of the run it just had a bit of a hiccup. >> so if it is, then, in fact. not the end of it, should investors be seeking opportunity buying dips in the same high flying momentum tech stocks or are there other places in the market that represent better opportunity rather than some of those richy valued technology shares >> you know, that's a really good question and it's something that our clienlts are asking us all the time at the moment i don't think this is the opportunity to buy technology. you're going to see them try to do better. as they return to normal behavior you should see some of the sectors that should be the

ones and we just have to be aware but it's important to maintain some kind of exposure to technology >> are the best opportunities that you're seeing inside of the u.s. or outside of the u.s >> it's probably the favorite region for us. we see that as recovery continues it should play well. they also have very big tech sector as well thank you. always great to get your thoughts when we come back on the show, microsoft rejected details behind tiktok's plan to reportedly sell some of its

assets to another major tech giant in the u.s one that happens to be lead by a president trump mega donor plus crisis in california as wildfires continue to spread north into oregon with millions of acres already destroyed we have a arrive report from the region coming up and later on, trouble in the gulf again as oil companies and the region at large brace for another tropical storm that could be -- could be a hurricane by week's end. a very busy hour still ahead when worldwide exchange returns after this bre ♪ ♪ i keep working my way back to you, babe ♪ ♪ with a burning love inside ♪ yeah i'm working my way back to you, babe ♪ ♪ and the happiness that died ♪ i let it get away servicenow. the smarter way to workflow.

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the chinese owner of the video shaping app rejects a rival offer from microsoft bertha has the latest on what we know and perhaps what we don't know >> dom, oracle is set to be announced as tiktok's trusted tech partner in the u.s. it's unclear which parts of

tiktok's technology will being taken over by oracle which hasn't commented and microsoft had been considered the front runner to buy tiktok's u.s. business until this weekend it was notified the offer had been rejected. walmart teamed up with microsoft on its bid in a statement last yesterday walmart said it's considering joining oracles group. however there are still several hurdles to clear they'll need approval from the committee on foreign investment in the u.s. which oversees foreign transactions for potential security issues.

you know, i have to think that this is the most important business story for anybody under 50. >> it's not just that, bertha. we're trying to figure out whether there could be precedent or any other kind of deal between the u.s. and china with regard to any business out there. but there's also reports out that the deal is a quote, unquote partnership. you mentioned that word a couple of times versus a sale of tiktok's u.s. business sources are telling reuters that

byte dance abandoned the process and decided to pursue this partnership. instead, in hopes of avoiding that u.s. ban while also appeasing the chinese government but it's not clear that either side is going to be happy with this. >> it just doesn't seem like the whole idea is that the u.s. owned those particular operations but i don't know at this point it seems odd thank you for the latest still on deck for the show, a live report from california as president trump prepares to tour the wildfire damage in that state and points north like in oregon plus back on track for oxford and astrazeneca after covid-19 vaccine trial pause. >> today's big number, 5

million. that's how many videos are posted to tiktok every hour according to the company the average american user spends 402 seconds on the app every time they open it.

historic wildfires are scorching millions of acres across california, oregon and washington state 35 people are dead and dozens

more are missing jennifer reports live from california about 90 miles north of sacramento. the state's capital. jennifer, what can you tell us >> dominic, the president will be 90 miles south from us in sacramento when he makes his visit this morning had he is expected to meet with local and federal fire and emergency officials and be briefed and also speak with some of the national guards members there. he's at the base for cal fire operations in sacramento and then he'll just be here for a couple of hours but on the way in and on the way out he'll be able to see fires burning all around evacuees in the fire ravaged western states have a harder time making it to safety the longer they wait. >> i was just paralyzed. i didn't realize it was happening. >> there were electrical wires

down there might be damaged structures out there and things that could be hazardous to the general public. >> fires in oregon already have consumed more than 800,000 acres and forced a half million people out of their homes one of them, 11-year-old dominic. >> well, i was feeling sad and scared at the moment because i knew that we were going to probably -- most likely lose our home and with little time to prepare to go they lost everything they owned as well. >> 600,000 acres burned in washington state and in the south 3.3 million acres and counting in california it's an area larger than the state of connecticut burned. behind the fire lines, crews are working with lists of missing people and looking for remains in burned out communities and along escape routes and sometimes finding the unexpected like this puppy in a burned out house whose name is now trooper.

and today could be crucial we had a break for cooler, breezy weather and expecting the return of the critical fire conditions later on today. the images we have seen have been stunning with regard to the development of this fire across california, oregon and washington state what exactly are we expecting when president trump visits later on today what will he be looking at and what are the concerns he would need to address with the fire personnel and the residents in that area? >> the concern is for those people to just get out they had so many evacuation warnings over the years and fire tends to burn in a certain way that people are used to but the fire weather this season has been very unpredictable and in

odd places with those lightning strikes that we have seen in the last few weeks so that's the major concern with the shifting winds. when the president flies in, i think he'll get a good grasp of how broad an area these fires are consuming. and when he lands he'll speak with the national guard members that did daring rescues of hikers stranded and trapped and surrounded by flames with no other way out except for via chopper. >> all right jennifer is live in california stay safe out there. thank you for the update well, straight ahead on the show, big tech trying to bounce back from a dismal week but some investors remain bearish on the sector and a few names in particular the stocks to watch when worldwide exchange returns after this break so you're a small business,

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welcome back to the show here's how stock futures are looking as we are halfway through the 5:00 a.m. eastern time hour. as you can see, we have been losing some momentum but the dow is still implied higher by 250 points the s&p higher and the all important nasdaq higher by an implied 131 points so something to watch there the key sectors and indices moving in the premarket. this all comes after last week's market lead sell off by technology the nasdaq 100 falling more than 4.5% last week alone some of the worst performers in the sectors with some of the highest short interests. wall street favorite, tesla. at the top of the list it fell nearly 8% last week and is down more than 25% this month it's short interest is about 7.3% of its total share float.

lululemon also being hit hard. down nearly 16% so far in september. it's short interest coming in at just under 3%. semi-conductor company, it's stock also down about 16% while it's short interest stands at just over 2% and fellow semi-conductor maker advanced microdevices falling 14% this month. it has short interest of just under 4% during the period some of the stocks to watch, they could be volatile with the short interest at play now to the latest for a race in the covid-19 vaccine as one company resumes it's trials. bertha has more on that and your other mornings top stories good morning. >> good morning. astrazeneca restarted in conjunction with oxford university in the u.k. the company says it got confirmation from health officials there that it was safe to do so after halting the trials last week over safety

concerns astrazeneca did not reveal too much information or details about the pause only indicating that a potentially unexplained illness was under investigation. gilead sciences has reached a $21 billion deal to buy bio tech firm immunomedics. under the agreement they'll acquire the company for $88 per share in cash. the deal will give gilead access to immunotreatment for breast cancer shares have nearly doubled this year to market value of about $10 billion before the deal was announced and residents along the northern gulf coast are bracing for another major storm. tropical storm sally is expected to make landfall later tonight and into tomorrow morning, potentially as a category 2 hurricane. the storm is expected to produce a deadly storm surge and heavy rain in parts of louisiana,

mississippi, and folks there definitely bracing it's been a tough, tough sarbonseason for them already traders are expecting a roller coaster ride for stocks as we head toward that november date but what better place to track that than with the volatility index if you look at those futures which track stock market volatility for 20 we can see a spike here just around october the top line is what you're looking at so we're seeing elevated levels of stock market volatility expected as we head toward the election subsequent futures ticking down in the months that follow the election now we see that trend is similar to past elections as well. we see a slight bump up expected

but not to the degree we have seen in this current election cycle. taking a look at the state of the race and fund-raising we see joe biden with a distinctive advantage over president trump campaign statements show the biden campaign and dnc raised more than $364 million last month compared to the president and the republican national committees haul of $210 million as you can see behind me here. roughly doubled to $65 million now for more on the state of the race in 2020 and the market impacts, i'm joined by the head of us. government affairs. andy, the numbers behind me tell a very interesting story with regard to momentum but can we trust that momentum heading into the actual election itself

well, it's still early but the macro fundamentals have stayed the same since biden won the democratic nominationment e he seems to be doing better among key groups than hillary clinton was in 2016. among women, clinton won by 11 to 12 points however biden has consistently pulled about 20 points ahead of trump and among suburban voters trump beat clinton by 13 points but the latest polling shows trump only leading by one point. so the current state of the race is a lot of the fund-raising to talk about. >> what exactly do both need to do and how do they play the narrative as they get americans

to try to vote for them in november. >> that's a great point. there's going to be a lot of noise between now and the election but the same set of issues that determine every election will determine this election and those issues are physical security, who can help me stay safe and healthy and financial security who can help me provide for my family and right now covid 19 literally trumps the economy as the most important issue and that's because as you remember from your psychology course in college, people want to know am

i safe and can i put food on the table. >> with all of that context in mind my final question to you has to deal with whether or not the markets in the economy are perceived to be fairing better in a second trump administration or a new biden administration. what exactly can you glean from that looking into 2021 >> so i think typically most analysts when they look at this will say okay we're going to be better in a trump administration second term because he's republican he's basically going to lower taxes. he's going to have a lot of

deregulation irgelts thank you very much. great to get your thoughts. >> thank you. >> among this morning's top stories as well we have softbank selling to nvidia in a $40 billion deal a move that could bring them one step closer to possibly delisting itself from the public markets. joining us now to talk about it, the wall street journal's, one of the first reporters to break that story on armed holdings, good morning to you. why the sale and why now >> it's monumental and what it comes down to is when they bought this four years ago and took it private they overhyped it and it was a classic overhype underdelivered it didn't live up to the high

expectations that they hoped in terms of growth in the company's internet of things

i think we just froze her for a little bit i'm sorry. your feed froze for a second there. you were saying? >> yes, i was saying that you're right. that's the right way to look at it roughly and i think that there's a lot of people doing a quick calculation on the numbers and wondering if over that four year run which is such a great run for investors whether that was the best use of $32 billion on softbank's part. >> now let's talk a little bit about the future for armed holdings it's the key stuff, right?

>> exactly you hit the nail on the ead. already the most valuable i guess you could put it semi-conductor company in america. thank you very much. we appreciate it >> thank you >> and a programming note, don't miss nvidia ceo live on squawk on the street, 9:40 a.m. eastern time a big interview there for a big deal in the semi-conductor business well, coming up on the show t future of the work place, the ceo of one company ahead of the work from home curve joins us to break down the success they have rlidexan ibantinued lock downs wodwe chges ck in a moment

welcome back to worldwide exchange check out what's happening and also boeing shares all up 1 to 2% in the premarket trade right now. let's flip to what's happening with the nasdaq 100. the most important the biggest of the nasdaq stocks in the composite index those gainers include nvidia

we saw that about the move for armed holdings and softbank. they're all up roughly 2 to 5% in the premarket session so some of the drivers we could be seeing in today's trade. well, remote work, once an uncommon job has become the new norm for millions of americans but one company was ahead of the curve. gitlab boasts 1,300 employees across 68 countries without a single corporate office to be found. now it's sharing the secrets behind it's remote working success with the likes of twitter, t-mobile, santafi, you name them. thank you for joining us i'm looking at all of these companies that have benefitted so much from work at home, stay at home. what is the new normal or paradigm for working in the coming years or does this all flee away as soon as the covid-19 vaccine comes into

play >> i think there's going to be different classes of companies you're going to have the companies that are going to be remote they figure they can be more productive without an office there's going to be companies that try hybrid. some are going to make it. some aren't going to make that happen and there's going to be a ton of companies that go back to an all office based culture. >> so let's talk about what types of practices are the ones that will have -- i guess, the companies working from home more efficiently than others. what type of things need to happen for a company to either be constructive and productive in a hybrid or work from home environment or ones that actually need to be in the office to be productive. >> it's much more than start using zoom there's a lot of intentional things that you can do and at gitlab we have over 5,000 pages of how we work and, for example,

it's super important to organize informal communication the office and water cooler talk just happens if you're all remote, you have to organize things like that with special events. we have a ton of tips out there. people search for gitlab remote they'll find a ton of tips. >> okay. so as you talk about the types of things we can do are certain companies out there and certain industries doing it better than others the quick thought is technology is the obvious winner here those companies tend to do better but it's different when you're talking about say a kp b company that does collaborative work or coding as opposed to somebody that has to actually make computer chips. how do industries vary >> it varies greatly and it's up to the leadership to lead by example. we're going to be hybrid but we're going to make sure that when the people in the office have a meeting with people from outside of the office, they're all going to go to a separate

booth. they're all going to dial in by themselves everyone is on an equal playing field and that's going to become more and more important as companies try to be hybrid. >> one last thing before we let you go, what exactly is your company going to look like in the next 12 to 24 months >> yeah. so git lab is a complete platform that helps people collaborate on software developers, security people, operations people so that's what we're doing. we're at 130 million ar now. and we hope to continue that growth. >> all right thank you very much for those work from home thoughts this morning. we appreciate it >> thank you. >> on deck for the show, stocks looking for a fresh start following last week's selling. there is opportunity for new investors out there.

as a reminder, you can always watch or listen us to live on the cnbc app nyc, manhattan and times square. cnbc is back in just a moment. ♪

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sharp moves here because of the covid pandemic and then they got investors worried that this might have an kpsexacerbation t it we are watching certain sectors to see how they pan out. those sectors have been key to the move and are not necessarily all technology first of all, the only s&p 500 sector last week that was in the positive territory was

materials. up about 1%. meanwhile, technology down 3%. we know the tech sell off there has been a huge story and energy is still down about 6% as well over the last week only materials that is viewed as cyclical was higher on the week. now with regard to drilling down in the specific parts of technology that are going to be key to watch, these three sectors or industries have been perhaps bell weathers over the course of the last several months semi-conductor stocks, technology software related issues and then cloud computing. you can see there on a year to date basis massive moves higher for all of them yet more outsized declines in recent tech lead sell off resumes so we're watching to see if semi-conductors, software and cloud computing end up being the key sectors that tell us where the rest of technology will lead well, the pandemic has put the spotlight back on esg or environmental, social and corporate governance issues.

investments that emphasize the factors surged in popularity as people look to boost returns and urge companies to become better corporate citizens joining me now is valley grant the senior portfolio manager and co-manager and she is also a member of the group of 100 women in finance that perioperates in which women hold 30% of investment team and executive leadership roles by the year 2040 so great to have you let's talk about whether or not esg has legs i remember 10 or 20 years ago we were talking at esg but it never got a huge head of steam what is different today? >> a surge in interest in esg or responsible investing really predated the covid-19 crisis so prior to 2020, the focus was all on climate change and now

between the global pandemic and the calls for racial equity in the united states and globally, we have really seen a surge in interest in social issues so the s in esg if you will and it's really the combination of the factors that has grichb investor interest in this very exciting field. >> how exactly, valerie, do you invest we heard broadstrokes about the criteria, environmental, social, governance and everything else how exactly as a portfolio manager do you buy or sell stocks based on it >> so we take two different approaches first of all, we look at the overall portfolio and at least for the portfolio that i manage we seek to stand for a couple of key issues one is environmental stewardship and the second is corporate ethical conduct and then we really look at corporate governance and we seek to

measure those dimensions at the portfolio level. it's not just a question of qualitative analysis but we actually apply numbers to each of the objectives and then for each of the holdings in the portfolio they're generally very stock specific, environmental, social and governance issues and we seek to measure and evaluate those as well. broadly you have objectives for the overall portfolio and then also targets for the stock as well. >> let's talk about where the rubber meets the road. all the criteria, all the considerations, they lead to you buying a stock what are your holdings that hold the most weight? what are the ones that you have in the portfolio that go in there in larger part because of the moves that they're taking on esg related factors? >> well, our holdings vary as you can imagine, our holdings vary from time to time and we're significantly underweight energy right now we don't have energy

holdings and that's related to esg issues as well as fundamentals we do have significant exposure to technology and many of the technology companies are quite forward thinking not just in their business practices but also capital management strategies as well. so one example is google they're very dependent on talent and they have very rigorous processes for ensuring pay equity across their entire enterprise i was quite surprised to see the level of disclosure that they provide on the global work force and also the fact that they have a process for ensuring that they pay he quequitably across all dimensions in the company. that's an example of a stock as

well as on some of the characteristics. >> valerie so given all of that, technology has been an outperformer can you take us through what you feel will be the implications for you in your portfolios as we head into a lot of catalysts, fed related events, the election cycle coming up, the technology lead sell off that we have seen. what exactly does that give you and are you worried? >> i'm not worried i am focused however, really on the second half. and i think this will be a true test as to how consumers are responding to the pandemic and how companies are responding what we have seen is the increased penetration of e-commerce which is to the benefit of some companies much more so than others and also that will have a cascading effect in terms of payment processing and that's really

what i'm focused on looking into the second half. >> all right thank you for your thoughts and good luck to you. >> thank you. >> that does it for us on worldwide exchange squawk box picks up market vegeomg next. futures point to a sharply higher open. we'll see you tomorrow give you my world ♪ ♪ how can i, when you won't take it from me ♪

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good morning, welcome to squawk box right here. becky is off today take a look at u.s. equity futures at this hour on this monday morning after what was, as joe mentioned a wild week last week. we're looking to open higher this morning a little bit of a bounce back. dow could open 160 points right now. nasdaq up 103 points and the s&p 500 looking to open about 26 points