>> yes, and, tyler, apple down 22% from the recent high that is the name everybody is watching >> all right, everyone have great weekend kelly, you too and let's turn it over wilf and team >> welcome the "closing bell." it's been an action packed week on wall street from a blizzard of tiktok headlines to snowflake's blockbuster debut and amid all that, the major averages in jeopardy of notching up the third straight week of losses the let's look at what is driving the action today nasdaq lower once again. amazon, apple, alphabet add to their losses for the month tensions with china and the future of two of the country's biggest tech platforms remain front and center the commerce department announces a ban on business transactions with wechat and tiktok we await a decision on oracle's

proposal we could see volatility on the wu witching day options is tote expire 59 minutes left of the session we're down 1.2% on the s&p 500 >> coming up on today's show, we'll discuss the massive week for the ipo market including debuts of snowflake and unity software with stacey cunningham. and jeremy siegel will weigh in on another volatile week third day in a row down for the s&p 500. six week lows here what he makes of the selloff let's get straight to the big stories we're watching though in this final hour of trade mike santoli tracking the market action steve liesman with fresh comments and joining us to talk about the latest on tiktok and wechat and what means for tech, big technology mike, start us off here with a selloff in the broader market. >> we've been spending a lot of time at the lower end of this

recent range maybe a little too much time down there for the comfort of the bulls. this is a relatively routine pullback for now 3300 or. so we hit that a few times you go back a week we were just about right here. 3315 or something is where we finished off i keep pulling back to that august 11 number we're below that now we're breaking a couple of little trend lines like the 50-day average, the nasdaq looks a little worse that's where most of the excess was and the upside is unwound quicker. if this is just a normal correction, sometimes what you need for them to run the course is for people to fear it's more than a normal correction and get a little panicked about things that that is not evident right now. i think it's just big institutions feeling like they can take something off the table after a very good run and ahead of a very rough period other dynamic, of course, persistent is the reversion of growth into value. st so this is the russell 1,000 growth index divided by the

value index. a massively strong uptrend now this jagged period, you see the times where growth pulls back relative to value and then it's always reasserted itself. this looks a little more consequential. it's hard to say this is decisive one thing i'll say for the implications is if this becomes a trend and growth really does continue to give way for value, it's going to be a huge head wind for the s&p 500 the s&p 500 right now is a growth index it's a growth and defensive stock index. cyclicals and value stocks, it's a much smaller piece so it's kind of running uphill if that becomes the trend. that's only relevant for index investors. >> they just don't make up that much of the market, i guess is the truth of things. the. >> not at all. mike, any particular catalyst? right. technology, communications services, consumer discretionary. they're huge and moving together are there any catalysts right

now, if there is a focus on the surge in infections in europe for covid-19 or whether there is a trigger for the selling or is this more of a corrective process? >> i would say no defined trigger. i think part of the backdrop is a little bit of loss of conviction about the strength of the recovery from the consumer, the real time consumer numbers maybe that's a labor day holiday effect maybe it's not the but also, a little bit of do you haviveness about the fact that we're seeing the case loads go back up in europe do we have to be on alert for that around here i think it's part of the mix i am also a believer in the idea that when the market starts to move a certain way, the story lines pop-up after the fact. as opposed to the other way around >> mike, great stuff thank you for that >> s&p 500 down 1.1% minneapolis fed president making comments about the financial system in america. steve liesman has details. >> yeah, he is making striking

comments he is talking about the issue of too big to fail. he's been very, very strong about. he said he is calling for bank equity levels to be raised to 24% from the current level of 13%. he says he can't believe the banking system needs to be bailed out again just 12 years after the financial crisis here's a quote from the speech right now. he says what kind of absurd financial system do we have that requires the central bank to bail it out every decade he points out that the essential banks have -- sorry, that financial banks have benefited from the bailout that went to average americans by keeping default rates down he says it's absurd. again, using that word again we have financial firms to fund themselves overnight we can't keep doing that we're doing. he is urging the institutional investors to put reform at the top of the list. it's a good question because the fed has -- it seems to me been strong on the banks t the buybacks, cap dividends and

yesterday as you reported, they're now doing that second stress test or i guess a two part stress test relative to the pandemic on the other hand, he seems to be right the dped have to come in with trillions of dollars to backstop the financial system so i throw it to you does more need to be done? >> as to whether they've had a direct bailout this time, i don't think that's a fair characterization have they been a big beneficiary of central bank and fiscal policy bailouts that we've seen over the last three or four months, unquestionably they're the most cyclical of sectors if we seen markets go haywire, they would have suffered to go as far as to conclude they've been bailed out this time, you would need to have been certain that the banks were going to go bankrupt themselves without the action we've seen. i don't think you can prove that

counter as we stand. i don't know i guess if you want to suggest sectors have received unfair treatment, banks are -- or too much generous treatment, bank was tap this list in a way they did last time. >> i he agree. not this time around he is engaging in a bit of hyperbole. i think the broader question as to whether or not the financial system as a whole needs to be reformed, i think that is fair enough the idea that the fed had to backstop commercial paper, had to backstop the municipal bond market, all of the different aspects with trillions of dollar again does raise the question. hey, let's go back to the financial system and figure out a way when we have shock we don't have to a major infusion >> the thing i'll add is i'm not sure that now is the time to force the banks to hold a lot more capital either way. i'm sure as we get into next

year we're going to want to seat banks le banks lending safely he said if you were constrained by equity, why you are buying back so many shares? >> that's different argument i don't disagree with him on that will argument is legitimate but separate i would argue to forcing them to hold more capital or suggesting that they have been bailed out and therefore deserve to be, you know, punished for it this time around >> i keep the issue on the table. i think they do i aservice by bringing it up and bringing us to think about this issue of do we have the system that we want.

i think more needs to be done. >> banks are down 0.5% today the trump administration saying they'll ban down loads of wechat and tiktok starting sunday sarah has been digging in once again and has more fresh reporting for us >> just to highlight new information, what is being presented in this deal bitedance would be majority u.s. owned immediately. bitedance has 45% chinese ownership. 55% is u.s. and international venture capital firms. if this deal is approved and oracle and walmart do invest, i'm told china's ownership goes down to 36%.

yo beyond the u.s. ownership, a new division is formed inside of bitedance which is called tiktok global with headquarters in the u.s., u.s. management, u.s. board of directors including walmart's ceo but not oracle's ceo. and a pledge to add 25,000 jobs and pay new taxes in the u.s all that's been reported they can run in other national security allies. there is technology control, too. part of this deal. oracle would have the access to the source code and the cloud data and be able to step in, for instance, when bitedance pushes any updates on the products which could appease concerns about china pushing disinformation on u.s. consumers. that is what i'm told is being presented to the president it is being seen as a precedent

here for further concerns down the road about chinese control of technology in the u.s it's not unlike the forced technology transfers that china requires from american companies that do business there however that, is what is seen here necessary to do to prevent the national security concerns around taking u.s. data, for instance, from the chinese its not an outright sale trump said he wanted the it shifts the center of gravity of this company to the united states. >> that's a bug question sounds like another unkremental step it incremental step. over the reporting over the prior weeks it felt like treasury and he were in the same place, it seems like a bit of a gap there. >> ate pears for whatever reason the sale process didn't work,

too complicated, bitedance wasn't onboard, the chinese authorities weren't onboard, that sort of in in the past. the question is this going to be good enough to get u.s. majority ownership here and that new division bagsed in the u.s. that would have access to the technology let's talk more about it we bring in alex kanterwitz with us what are the implications here >> i would say that implications aren't as severe as some were worried about. many american businesses, apple, google, app stores with be veer veerly severely impacted the fact it only covers the u.s. is less of a blow, particularly to we chat because there is about 19 million down loads versus 1.2 billion down loads in

china. that means that big multinational businesses including apple and google, starbucks, mcdonald's, disney, they can continue to operate as s many of them operate these apps outside the united states what it means for small and medium sized american businesses though, that remains to be seen. that can be a bigger problem a lot of the small businesses that sell their products on places like etsy and amazon and other platforms, they rely on the supply chain links to china. many of them, many businesses, transactions, communication, logistics, a lot is done through wechat, guys >> how long would a ban have to be in place on tiktok for it to be lasting damage and see those shift across to another platform and which platform stands to benefit the most >> you see tons of influencer

going we don't know what is going to happen. we want to keep communicating to you. follow our accounts on instagram and youtube. we know awe ban itself doesn't necessarily mean that the idea of a ban, we don't need a ban to harm tiktok. just the idea of it can actually cause serious damage >> i was going to respond. for the competitors and instagram, there may be short term benefit they may get the tiktok users on the platform we heard from the cm this morning, he reiterated that a ban on tiktok is not good for anyone it's not good for instagram. it's no the good for facebook which has global operations. it leads to a bifurcated internet where you vlt chinese internet and western internet

and in the long term that's not good for any global business so i think that these effects are extremely short term even the companies that have benefits tell that you it's not good for everyone at large or the internet at large. >> i think it's a really good point. alex, it's what i was going to ask you. how much of a precedent is this going to set when it comes to u.s.-china trade tensions? if they go through with the ban, what happens to phase one trade deal or the relationship there between the u.s. and china what happens to future tech questions when it cops mes to ca ownership in the u.s. and vice versa? >> i agree thcht is not going to be good for facebook or instagram long term the influencers may go short term but, you know, you see the facebook executives coming out and saying this isn't good for the platform we already heard from facebook executives for a good part of the past year taking china and putting it as the bogeyman and

saying don't regulate facebook because of what might happen if china is the vision for the internet i wouldn't be surprised to see china retaliate on this. chun does not want to look weak. they have a tremendous amount of economic power they don't want to be pushed around by the trump administration or anyone else. we should expect a full force of that country to come down on the u.s. tech sector after this thing goes down. >> alex and de, thank you for joining us. >> thank you. >> after the break, fortunes will will speak with the ceo of plaid, they're buying them for $5 billion by the new patterns merging in the space of the pandemic's destruction you're watching "closing bell"

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. square is higher by 129%, paypal up by 61% and according to the latest survey from private companies, there may be even more room to run in the sector. 69% of americans saying fintech is a life line let's bring in zach perrett. he was buying the company for $5.3 billion thank you for joining us, zach good to see you. some fascinating take aways from your survey and no doubt lots of deep insights that you already have just from the company's engagement over the course of the year how big is the step up in use are engagement with the apps been and it just on fintech company's

apps or tradition banks seeing the same stepup in engagement? >> the past six months have been a sea change you have a huge shift in consumer behavior away from walk bank branches and talking to a banker, going all the banking in person now people are sheltered in place at home and not going out. they need a digital solution we have seen a huge uptick in the number of people using digital financial services applications to live their lives. and we work with square and chime among them we also have seen a huge uptick in the banks that we work with as well. so we were fortunate to get to partner with the likes of j.p. morgan and goldman sachs and meaningful increase in the amount of consumers using digital financial applications >> in your survey and other work, zach, do you feel people want to go back to the traditional banking practices whether that's going into a

branch or other areas in the long term? >> what we've seen is that consumers have fundamentally shifted the way they think about interacting with their finances. historically, many people thought they had to walk into a bank branch to do most things in their financial lives. actually, the results of the survey say 8 0e% 0% think they manage the money without a bank branch banks are core however, the way that they'll interact with the banks going forward, it will be more over the internet, more on their phone. people these days have a finance folder on the iphone or android that historically not everyone had interacted with but these days we're seeing almost every consumer in the u.s. using digital financial products >> i don't know if you saw the news today, zach, but chime managed to raise more money in another fund-raising round valued at $14.5 billion which was a company with a $1,359 billion valuation set in early 2019 so i know there say huge --

there's obviously momentum and the pandemic has sped up the acceleration to digital banking. is there a bit of fever here when it comes to some of the valuations >> well, i won't comment on the specific valuations. but what i will will say is that fintech itself, we're having a really incredible moment right now. when you look at the usage of the applications, it went up on the or tder of 70% and when you see growth like that and applications, of course, the valuations will follow but seeing things like chime being valued at more than $14 billion, robin hood at $10 billion, stripe, they're all customers, it's incredibly exciting for digital financial services >> zach, clearly most fintech companies don't have a bank chart or fdic ensured. do you think that will change going forward? as we stand today, if that doesn't change, do you think consumers will ever want to put

large amounts of deposits with fi fintech companies or do they trust the f dichdic insured ban? >> it's an interesting question to think about the current regulatory landscape we have seen a lot of movement out of the occ recently. talking about the fact that they might grant more fin tech charters to financial institutions and digitsal banks. there are a lot of finteches applying i suspect that we'll see many more move towards having their own charters over time however, day to day, the partnership between digital financial services applications and the banks themselves is very tight. a lot of the companies are partnering with large sponsor bank as loug them bank that's are allowing them to work together. however, going forward from a clearer regulatory standpoint, i suspect we'll see continued

evolution. >> thank you, zach we appreciate it we have 36 minutes left of trade. check out the markets. the dow, it's down more than 200 points 219. s&p 500 down 1%, 1.1%. so we're off session lows. session lows were down 400 technology another losing trade today. the small caps are faring better down .5% up next, gains and losses. some analysts predict a coming wave of stock sales if joe biden wins in november as investors position for possible capital gains tax hike we'll discuss the potential impact on the market next.

tech and communications are the lowest of the sectors. >> dow still a tad bit higher for the week s&p 500 lower. a number of analysts are predicting a wave of post election selling as investors position for possible capital gains tax hike robert frank has been digging into that story. robert >> capital gains tax dozen lead to big stock sales but not all market declines. in 1986, the tax rate uncreased to 28% investors sold stocks and other assets leading to a 60% increase in capital gains realizations. again in, 2013, capital gains rate increased from 15% to 23.8%. and again investors sold leading to a 40% increase in realizations as far as markets, well, in 1986, markets went up during and

after that selloff now economists find that markets are driven by the macro than by individual tax decisions especially because right now, sara, he was often talk about, investors don't have many other places to put their cash outside of the market. back to you. >> so maybe a short term blip if at all because the institution compromise such a big chunk of it the trump administration talked about lowering capital gains we know larry kudlow, the top economic advisors, always talks about indexing capital gains s that realistic >> not given the house maybe they could do it through a executive order which is something they've been talking about for a while.

they undechl it index it to inf. i think at a time of rising inequality and given capital gains income goes to the top, that's going to be a tough sell internally even in the republican party this november or afterward >> i guess changing, you know, trying to sell your stocks before changing taxes is one thing. you're in charge of your own assets so what about some of the rumors or stories that companies would try and give their employees bonuses early so they're received before a potential income tax hike? is that something that's been done in the past and is that seen as acceptable or to be expected? >> we're seeing that already there are a number of things that people are doing in a potential change in the government one is they're gifting a lot two, they're accelerating bonuses. so if there is bonuses or pay that are expected early next

year, whether it's law firms or private companies, let's front load that income into 2020 rather than waiting until 2021 and risking a tax increase so that's a very good point. and we're already seeing that especially even with companies and sales contracts. the they're saying, look, if we have a sales contract, we can take that income in 2020 for orders that are going to be processed in 2021. they're doing that as well so i think that's -- we're going see a lot of that going into the end of the year. >> robert frank, thanks so much for that >> time for a cnbc updwate with sue her arera michael caputo, the top spokesman at the health and human services department on medical leave and departed science adviser browbeat and tried to silence career cdc officials because those officials weren't optimistic enough about the

administration's covid-19 response "the washington post" has a memo showing that earlier this year postal service officials were worried that president trump's demands that amazon pay higher shipping rates threaten to erase $1.3 billion in usps profits. >> in georgia, roads are being washed out from heavy rains. it is still the remnants of hurricane sally. and milwaukee bucks forward is the nba's most valuable player he is the third player ever to be mvp and win the defensive player of the year award in the same season. congratulations to him you're up to date. back to you. >> thank you so much still ahead, the cdc dropping the controversial guidance on testing. anyone within six feet of a person with coronavirus for at least 15 minutes should get a test we'll discuss that news and all of the week's covid-19 developments with dr. scott gottlieb

26 minutes left before the closing bell dow down 200 points. we're coming back from the earlier losses we have all sectors lower. things have improved a little bit. as far as where the pain is, utilities, energy, consumer discretionary. it's a mix

nothing is green right now as far as the s&p 500 sectors the small caps are faring a little better. boeing and apple weighing on the dow. after the break, we'll discuss the flurry of ipos this week and preview hotly anticipated debut with new york stock exchange president stacy cunningham that's coming up [squeaky shopping cart] [sniffing] is the salmon wild-caught? she only eats wild caught. [cash register beeps] uh, i need a price check on honey. don't get mad. get e*trade and get more than just trading. investing. banking. guidance.

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piers. the company going public today strong trading debut of it's not the first of the week today's move comes on the heels of snowflake's blockbuster debut earlier this week. for more on this red hot ipo market, let's bring in new york stock exchange president stacey cunningham it's great seeing you at the exchange such a huge week for ipos. what do you say skeptics or critics that wonder if this enthusiasm for new issues especially around anything software feel a little like 1999 bubble type enthusiasm and maenaa >> first off, i have to say it's great to see you i look forward to our next conversation being back here at the exchange we would love to welcome you back it has been a really exciting week just to put in context, september is on track to be the busiest month for ipos he is new york stock exchange on record. so there is certainly have been a number of deals coming and that's coming off august which was the busiest month since october 2013

and august tends to be a raeeal slow month for ipos. there were a lot of companies in the private market space that waited to go public and in the spring when the pandemic struck, the public markets were such a great source of capital for companies that could easily and efficiently raise money when they needed it a lot of the companies on the sidelines that needed cash were forced to raise it at higher prices and so now thaey're looking to have access to the public liquidity much more quickly. we started to hear right away from them in the spring. they want to get out >> still with the huge pops, it has sparked a debate about, you know, whether the process under prices, the ipo for the issuer what do you say to that? >> i think that companies have evolved and how they're coming public evolved they're staying private much longer the risk that gets rewarded really has change philadelphia

you think about how companies have changed so companies are starting to ask questions about alternative paths to the public markets. they're looking for alternatives like the direct listing and the spac i think each company is going to choose what is right for them. i expect that we'll seevarious ways to going public and our goal at the new york stock exchange is to give the companies chaig chauss and support them with whatever method is right for them we're seeing a lot of demand in direct listings. it is the next evolution of that model. >> stacey, good to see you we, of course, all criticized uber's ipo when the initial move was sharply down what is the ideal first day or first week share price response after an ipo >> i didn't krut sues either one of them. it's what the company slooking to achieve and whether or not the public debut met the goals

snowflake raised a lot of money and looking for the growth over the future when i see a 100% pop, it begs the question, are there better, more efficient ways to raise capital? that's why we're working so hard on getting the direct listing as an alternative to offer companies. much there's a lot of interest in that. i don't think there say perfect number companies have different expectations and they're going to look for models and a path to public that meets thur own particular needs. >> so what is the key unefficiency in the ipo process that you're looking to correct sth. >> well, for -- if you're looking at selling $3.3 billion in capital, for some companies, that's not ideal very often you see these ipos that pop and people say great successful deal, that's wonderful. so if you're looking for a

smaller pop of 20%, if that's the target a company wants to see, then they might want to consider a different alternative. in a direct listing, access is true democrat tiesed and all buyers and sellers can come together, that's where the market price is. >> stacy, i want to ask you about the other big story you're in the news for which is new jersey floating this idea of taxing all trades obviously, you and many others have big data centers in the state of new jersey. you signalled you would move those out. is it going to be that costly for you? and who bears the cost of this that goes through? >> that's a great question, sara it's not the exchange that ends up bearing the cost. so while in very sympathetic to the states looking to raise

money, the end investor pays that cost. a ten basis point transaction tax would require retirees to work an additional 2 1/2 years so it's the end investors that ends up paying that tax ape that's a concern they pay it fwis they pay it in the trade when they execute on the exchange that market makers are making those prices and the tracks gets priced in. there then they also pay when they trade the end investor that pays once we announce that we were willing to move hour exchanges if that's what our customers are asking us to do, and that's really how this works, right because it gets passed through, our customers started calling us right away they said will you move to a tax friendlier state if this happens? we're letting them know we have the ability to move. we can move. we'll test it with them this month. if they're asking us to do that, consider it. i've been on the phone with governors from across the country that have reached out to

encourage me to consider their states >> stacy cunningham, thanks for joining us >> next time, let's do it here >> i hope so great deal by the way, markets recovered. we were down nearly 2% on the s&p 500. now down just less than 1% the dow is down just power play. >> pete: 5%. after the break, wall street weighs in on beyond meet and deconstructing the trade on home depot and lowe's when i was in high school, this was the theater i came to quite often. the support we've had over the last few months has been amazing. it's not just a work environment. everyone here is family. if you are ready to open your heart and your home, check us out. we thought for sure that we were done. and this town said: not today. ♪

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tech is down 9% for september. mike, i would just note in today's sell yacht, you have this dynamic where stocks are all down but treasury yields are up the dollar is weaker that tells through is no massive rush for safety. there is no panic move >> that's right. also, even the volatility index has not really perked up it's down right now on the day if you look across all your gauges to decide in fact if there was something more going on than just a kind of reduction of exposure to the most crowded areas of the equity market and maybe just in general, it seems like hedge funds pull in their bets a little bit. i you this that tells you we're still in this corrective adjustment process mostly involving stocks. the issue is there's not a lot of -- i don't think there is a lot of fear generated.

softening up the floor of the trading range potentially. so there is no signal that also says well now we're going to reverse and start to buy all the things we sold for three weeks we're still in a funny spot. i agree with you that it's not really indicating any kund ind f bigger stress. >> even if you're constructive on stocks long term, do you fear a bit of short term seasonal weakness >> yes, thank you. >> absolutely. >> we have been rooting for this correction you with not go up without any breather i you this we're starting to see some of the stocks that we're interested in. we see very constructive fundamentals for long term equity growth and near term edge it with growth still 4-1 dollars going into fixes income over etfs and dividend increases are

signalling to us that managements are optimistic about future earnings power. >> especially when there is so much fear over cutting dividends and buybacks during the height of the crisis. you said there is time for the favorites. >> we have been adding to industrials pretty seriously over the last three to four months we're also overweight technology but not in the growth at any price cohort rather, we're looking for names that have found names in software and chips that are also growing their dividends like texas instruments. so there's a real secular change going on

you should just be deliberate as you add to your holdings wall street is waiting to find out if the tiktok-oracle deal will get approval from the white house. we have a look at what it could look like if they get the green light. julia? >> well, the deal gets the green light, tiktok says that this tiktok global company would have unprecedented levels of additional transparency and accountability including thurd party audits and u.s. government oversight of u.s. data securities sources tell me that the board would be approved by the u.s. government and would include a director with high level u.s. security cleernz that is all part of the defense saying it disagrees with decision from the commerce department saying it will continue to challenge what they think is an unjust executive order in court so there is a lot that can happen ahead of the deadline

>> is there a way to work around u.s.-china tensions or are they much more elevated than any time in the past couple years and the market seems to shrug it off >> i you this one reason year shrugging it off for the stocks adjacent to tiktok and the potential acquirers is it does seem like a one off kind of initiative on part of the administration to target this particular company along with we chat i don't think it is being taken as some kind of broadside, you know, in this trade war. it's more about a crusade dealing with a company at this point. also, who is going to really extrapolate what is going on right now? too far into the future when we have no idea what the political makeup of the country is going to look like in a few months >> julia, if you're still there, obviously this is all going to depend on what president trump

decides. you are hearing the questions surround the financial ownership? this is going to be a u.s. majority owned company or the national security side of things which there are also answers to and proposing here that obviously oracle is going to manage the source code and prevent any dangerous updates. >> certainly look, sara, there are answers to both of those issues as you reported, this is definitely a deal that is being presented to say they're going to have majority u.s. based ownership. there is a piece of of this new company. you add the percentage ownership of oracle as well as walmart so there is no question this is a u.s. owned company and there

is a range of security measures in place so talking to sources today and over the course of the week, they really believed these various entities both oracle as well as tiktok and bite dance, my sources say they really believe what they're presenting to the government toshgts commerce department, the presentation of this was a very good offer that both had the majority ownership as well as the security issues in place so i think that they're within a hope and expectation that it would be approved. qu the question is what else the president may want to demand before he signs off on the deal. mike, this makes you wonder for the home improvement stocks and also the housing stocks in general have been just so red hot and how much is left -- how much juice is left in that one. >> yeah, it's a question that is

hovering over that whole sector as well as some other of these kind of stay at home plays the but home depot and lowe's, they really did have just massive run about performance against all thur retailers, home depot looked pricey. it is incredibly well run. it's an interesting call at this point. >> nancy, do you own both of them >> we do we own boenl lowe's and home depot and two of our large cap equity strategies. i thought it was a smart downgrade in that the anl ust had argued that he still bullish long term.

he is concerned near term. we would disagree with this premise. we think housing continues to be strong in the coming years it's got, you know, the tail winds of lower interest rates, dem graphics, demand and deurbanization and lock of supply, frankly, all at its back there is demand, surely there will be -- the future purchase power of millennials will drive some of this and then we have storm season which i hate to suggest is a good thing for the stocks, but itis we still own both. >> s&p 500 is down with 3:30

left >> while they're bullish on beyond meat's stock, the surge is not supported by fundamentals given the growing threat of impossible food. beyond meat's shares up 19% in the past month mike, a volatile stock always. 5% in that perspective given that little runup that we just mentioned. >> for sure. it really is -- the stock is a v vessel for broad hopes about the cat gorey. it's the only pure play in terms of alternative protein on the market therefore, gets inflated with people's excitement about the whole business and, you know, you can't really look too much at the revenue and earnings estimates it's trading, you know, over ten times 2022 revenues and, yes, it will be profitable at that point but not terribly so. so really it's about just the pausing of adoption of the whole category this call about the market share issues could be significant.

just because impossible has had a great run in terms of competitive offerings. >> ken goldman has had a number gf calls on the stock as well. so people pay attention. mike, we're just a little over two minutes left to go before the close. what you are seeing in the market internals we're selling off. not as bad as it looked earlier. >> there is certainly some wear and tear under the surface it's not, again, not as extreme as you might think given what the undechls were doing. that is lop sueded to the down side usually when you see a real purge day, it's more like 80% or 90% negative volume. not seeing that right now. small versus large it has been a distinct and russell 2000 small caps up 2.5% small beat large for now going on two months. kind of sud lyn so

the volatility index, giving up ground ahead of a weekend very much in the range last time the s&p 500 a week ago or so was at these saum leveme , we were at 29 or so. we don't have unkremental pow scare quite as much as the pressure one did >> we have a minute left of the session weefrment do session. we're down 1.1% on the s&p 500 and 1% on the dow. health care financials are slightly lower materials, technology, utilities and real estate all down close to 2%. crude oil is down a little bit had a very strong week up 9.5% for the week as a whole. gold up is and only a little bit for the week the dollar is flat today s&p 500 for the week is lower. the dow is just in the green for the week the nasdaq is clearly in the red for the week and the russell for the week is up 2.6%.

the dow and russell performance for the week highlighting the rotation that is going on out of tech, out of growth into value as the bell goes, the s&p 500 down 1.1% on the session 0.6% for the week. the dow is down 0.8% for the day. >> september continues to prove to be a bumpy month. it has been historically welcome back, everyone, to "closing bell. i'm sara eisen with wilfred frost. mike santoli, take a look at how we finish up the day on wall street we finish lower. dow closed down 245 points boeing, apple and home depot were the biggest losers. but there was some gainers j & j, unh, merck. the s&p 500 lost 1.1% or so. all sectors in the red you saw pretty big weakness in utilities.

energy, discretionary. airlines got hit hard. worst performing industry groups in the s&p 500 nasdaq was down is.1%. they continue to stumble they're still up by far the most for the year the nasdaq is up 20% so far this year for this week, closed down .5% in total the dow just closing about flat. the russell 2000, the big winner on the week. oracle's deal with tiktok is nothing but a glorified posting deal and does nothing to address national security concerns joining us is nancy tangler. also joining us, steve sosnik from interactive brokers and jeremy siegel, professor of financial. welcome to all of you.

mike, on another down day on wall street, nothing extreme in terms of the selling still bumpy and volatile and makes you wonder if it's time to unload or take profits on the big tech names that led the year >> i think the fact that was nothing extreme as you say, sarah, the crux of the question here this correction so far in the last few weeks is orderly, very steady it's gone from the high momentum stocks to some of the low neglected stocks it is secular growth to cyclical all the things that people are wishing for and playing for a while have been essentially on display. do they need to feel more comfort about what is going on and you get a decent rebound opportunity? that is somewhat, you know, philosophical question sometimes the practical question when it comes to just tactically is the market oversold

maybe we can resume an uptrend. >> what is your take on that professor snt size of the pullback and persistence of it, three weeks in a row declines. >> i think it's healthy. >> we don't have a correction in the s&p 500. s&p 500 and value stocks are just down 1% or 2% i you this it's basically healthy. september is a tough month and nasdaq, listen, the whole market, one of the greatest ral luz in the entire history a breather or a correction is certainly nothing unexpected, i think. >> it was more orderly, sar

yashgs th a than i expected. we didn't see a ramp one way or the other the way the futures and futures options expired. going into the close today, there wasn't anything that i would call out of the ordinary it was huge open interest. so much of that was in call options that are now way out of the money. that it was a relatively orderly expiration considering -- considering the magnitude of the quarterly exploration. >> what does that mean for the month ahead, week ahead if those call options are expired whether in the money or out of the money? the fact they expired and just so many of them over the course of the last couple months. >> the week after a september expiration has a net negative bias i mean not a dramatically so under 1%, i think, is the average over recent years.

the market could start trading in a back and forth way. not that it hasn't been. i will pounpoint out this absol massive volume of call options so far out of the money that, means the lop suedsided public n was obliterated. you had all the premium bought by the public that just went away so you wonder if it's going to change forward going behavior at all in the short term. >> nancy, you said you were taking the opportunity to buy some of the names that you like. the are they value or are they technology growth? >> it doesn't. we're value managers i guess maybe more growth at a reasonable price so i remember the last time that value outperformed for more than three week that is 2017

we have been adding to both. we have added to some of the tech that we added to some old economy names as well. really just spread out our exposure, you know, overweights with health care, consumer discretionary and industrials and technology we like names that grow did you have dendz we' did you ha dividends. >> professor, if the nasdaq and tech names got overbought, to what extent were the cyclicals underbought and have they closed that gap yet or are they still attractively valued for the long term >> they closed about this much we had extreme between the growth stocks and the value stocks raemy last reach in 1999. before that, probably the nifty 50 craze of 1975 it's a 20, 25 huff year peri-yed

i think there will be a search for yield. the raut is goite is going to b roechlt i would migrate to the stocks where else am i going to get yield? and i think those two argue for finally growth outperforming in 2021 >> so which type of value outperforming? what kind of stocks are you talking about? banks which haven't really fully joined the value rally like an industrial group or materials group chchlt on group. which ones are you uing? >> you don't particularly recommend sectors. i think the financials are hurt, first of all, what is commercial property could be permanently impaired probably will be in value. and so much banks are loans against the small businesses of course which don't have stocks tha

they're reflected in the banks. one could think of those in the entertainment, in the airline industry, some of those that might do better going forward. but i think actually those that have yield and are not have threatened yield are going to be ones that people are looking at in the next 12 to 18 months as interest rates stay at zero and we know treasury bond rates also at .5% not anything you can get your income out that you'll need i think there will be a migration into those sectors we have the election coming up we should mention that i think that is going to keep uncertainty on the table for the next few months until that clears up. >> you've been keeping an eye on the key support levels, the 20-day, 50-day moving averages how close have we got to those have we broke below? how significant is ut if it if ? >> we said below some of key

levels they had been riding the 30-day moving average until last week and now we're sort of broken down through 30 and 50 we have seen the ten day cross these are not good technical signs. they've been riding. 50-day moving average and seems to be falling under that so from a tech nick ail point of view, things seem to be rolling over a bit although what i would say here is the broad -- the bigger moving averages have not rolled over yet so the trend isn't dead. but the trend is under some siege here and that's i you this the worry that some investors might be having and as my former professor just noted, there's a lot of uncertainty going into the election period. i think that is starting to be seen in a lot of the technicals. >> wait, professor, i didn't realize that connection. was steve a good student >> honestily, i taught 10,000 students i don't remember you, steve, i'm sorry. >> a long time ago

>> but i'm thrilled to hear that you were in the class, yeah. >> that's amazing. that's an amazing connection i love that. steve, you were talking the technicals a lot of people were looking at apple will and tesla as the keys to the market. tesla closed up 4.4% today so which kind of names do you watch as a tell on what the mood is and where the sentiment is on a given day in this market >> tesla, i think, i referred to it publicly as a faith based stock. tesla is the bellwether for speculation. and so what tesla today tells you is the market may be undergoing some rotation but the speculative juices are still strong in tesla. what i do tend to look at right now are what i would call the six stocks, the nasdaq mega caps they make up 50% of ndx and about a quarter of spx the markets -- if the stocks get moving in one direction or

another, the broader indices have no choice but to follow its just math. so what i'm seeing is amazon pulling back, those are not good signs. even if we do start to roll into value, you know, that's when you get the opposite divergence. >> we'll leave it there. >> sara, one quick thing some of the outperformers on the nasdaq were things like, you know, peloton. we had zoom, nugs to tesla, we saw some of -- and shopify the stock not in the s&p 500 and yes, are also kind of stay at home plays they had to bounce today maybe they're a lull free of some of the kind of index things gone on related to, you know, the general liquidation and related to the expiration. >> there was a little bit of -- i mean everything went down. there was a little bit of a sell

the reopening trades, airlines got hit today. cruise lines got hit today it came from europe. so maybe it was the flip side of that. >> all right mike, stay there nancy tangler, thank you always great to see you. steve, thank you as well and professor jaur my siegel >> let's get to bob pisani for a wild week on wall street >> a very interesting week rather orderly so while the mega cap stocks got hit, a lot of other stuff held up really very, very well including parts of the reopening trade. so look at mega cap. they were down today and down on the week again, we've been saying this is

very orderly meantime, if you look at the momentum names, other momentum names that are not mega cap that are out there, they had a great week tesla is back. we had very good week in semiconductors micron is up they're moving on the path of profitability there. that is certainly a good news here and some of the reopening names had a pretty good week s that's a little good sign. as far as the stock of the week, snowflake, 120 price opened at 2:45 closed at 240. that is a real victory i would have anticipated much more slowing and better price. of that's good news for owners of snowflake after the thing went public. back to you and have a good weekend. >> yeah. it is a wow stock.

you too, bob thank you very much. small caps closed up 2.6% for the week best week since august 7th which is the day of our birth but also the week where small caps gained 6% will squeal a former hacker why the nsa -- for the nsa why he thinks the oracle's proposed deal right now to buy tiktok doesn't do enough to alleviate cutyndncerns around national seri a data privacy. we've earned. the unmistakable lexus is. get zero percent financing on the 2020 is 300. experience amazing at your lexus dealer.

welcome back the commerce department announcing they'll ban tiktok and wechat from u.s. app stores on sunday. citing national security and data privacy concerns. last hour president trump spoke about this at a press briefing >> we have great options and maybe we can keep a lot of people happy we have the security we need we have to have the total security from china. it's an amazing company and very, very popular i'd be very happy doing that it could go very, very fast. >> let's bring in david kennedy, founder and ceo of cybersecurity firm trusted security and former hacker for the nsa and marine corps. thank you for joining us, david. interested to describe yourself as a former hacker, no less.

you would have expected the description. my first and key question is were national security concerns legitimate in the first place? as it relates to tiktok and why? >> we've seen chun have a track record with huawei and we talk about a number of data breaches. they've been the culprit for international since the beginning of technology. and so you look at the technological footprint that china has within the united states, there is definitely a large area of concern. the issue is that for tiktok specifically, there hasn't been anything released from the intelligence community or any evidence that really showed the direct risk to u.s. consumers or users of that product that would be, you know, potentially larming or harmful it's just depends on, you know, us taking the word for the u.s. government on it is harmful and

china is trying to spy on us we haven't seen any evidence of that as of yet. >> what would stop them from already gathering all the facial recognition data, whatever might be at risk of the 100 million plus u.s. users that they already have on file and even if you did get a full sale, surely they could exploit the data they already collected. >> that's right. i think that's a lot of the concern. they're using this information around facial recognition technology, pairing that with your phone so that they have your actual phone data, ie, your phone number, your potentially locations, things of that effect as well as the code that actually goes on to your device itself if they can triangulate it and focus on key targets or people in positions, you know, can they send corrode kode direct sfli t lot of concern about what china's capabilities are not necessarily that they've done it before the but you're right the fact that if this becomes a u.s.-based company, u.s.-based

servers, things of that effect, they already have a lot of that data the i you this that's a lot of the large concern now is a lot of the influence from the types of companies when it comes from a chinese technology companies here in the united states, the potential, you know, strong hold they have on harvesting that data and using that data for militia purposes >> still, wouldn't it be better to stop it whul itile it's goin and prevent it from happening in the future i was surprised to see that you were krut call critical of the l it may not be an all out sale, does it go pretty far in bringing the management of the data and even the security and the source code into u.s. hands. >> the reason why there is some criticism in this specific case is that while the dealen with oracle and tiktok is a hosted provider, whereas oracle maintain the servers, architect and web sites, things of that effect it's very similar to what the eu

has done around what is called gdpr or protection around person identifiable information like your social security number. the issue resides into it's chun he's based company the developers are out of china. the source code that gets developed and published through the update prose pro scesses is difficult. they still have to get everything directly from china from a technological perspective. that's the concern from the trump administration is that this isn't a clear separation and it didn't put enough emphasis on the actual information and source code development being here within the united states. >> david -- i'm sorry. >> i just have a quick follow up i don't understand the tech nothing as well as you do. so why can't, say, if that source code, if they do push an update from china, why can't oracle now with that visibility be able to stop that update or at least censor that update to

make sure that it's okay before it goes to u.s. consumers? >> you absolutely hit the exact part that needs to happen during this overall process it's very similar to the app store, for example, the android play store where there is a new application, they source code analysis, check those out. as part of this deal, that needs to be part of that to ensure any new source code being published from tiktok would go through a rigorous screening and source code analysis process each time that is pushed through that is doable and possible. wasn't necessarily part of the discussions of what was going to happen here. i hope that is something they do agree upon that would add a lot of security control around what is actually being used in u.s. data. >> i think that's up for discussion i think that's what they're talking about. >> it's not as of right now. primarily architecture driven of how they're going to store the data and where the data resides, not necessarily app updates being pushed and what runs the back end infrastructure and

algorithms around tiktok itself. >> david, thank you so much for joining us. >> thank you appreciate it. next, mike santoli will have a look at the impact of the recent surge in options trading has had a on the market. can you always watch or listen to us live on the go on the cnbc app. we'll be right back here on longell. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

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welcome back let's get to mike who is looking at options trading >> this surge has been a real dominant feature of the markets this year. chart from barclay's illustrates just how powerful it is with regard to options on individual stocks that's what this blue line is. this is the dollar amount. it is being spent on average on single stock options you see it surge past what is spent on etf options and index options. all are in uptrends over ten years. people use more derivatives over time this spurt in single stock options and majority of them by some measures are only a couple weeks until expiration this basically suggests that the activity of market makers trying

to hedge away the exposure to the options trades, it's close to 40% of underlying stock volumes. so the volume we look at on the xhaufr exchanges, that's how much is coming from the echo of the options activity the options market is the single largest customer, source of flow to the stock exchanges this shows you there is a little bit of tail wagging the dog activity happening now because of the public interest >> so, mike, when that kind of rolls over, is that bullish or bearish for stocks >> yeah. they can kuind of justify this. >> they can say it's snig an absolute sense if it rolls over and it's because the overall market has kind of had a very deep correction or had some kind of a panic event, well then clearly it was going to be a negative. if it's just because it ebs and flows and declines, it's not a bad thing. i view it much more as it's a different type of energy and

rhythm and pacing in the markets right now because of this. as opposed to it being a little more of an orderly machines talking to machines type of environment that we had for many years running. >> all right, mike, thank you. coronavirus hospitalizations have been spiking in some european countries next, we'll ask dr. scott gottlieb whether it's a warning sign for the u.s. and whether he thinks the white house's time line for the vaccine is too optimistic we'll be right back. that's what my dad does. good job, michael! ok, lindsey now tell the class what your mommy does...

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shipping companies are preparing for a mass distribution of vaccine by investing in specialized storage. we look at freezer farms these are very, very, very cold freezer farms. >> that's right. the competition for cold storage is certainly heating up. you have heard of server farms before these are the new freezer farms. we got a first look at the facility that ups is building in

louisville, kentucky, to store a potential coronavirus vaccine. the ones in trial need to be kept anywhere from 2 to 4 degrees celsius to minus 80. fedex also added ten cold storage facilities to the network over the past three years. over the summer, dhl built a new 20,000 square foot freezer farm in indianapolis. >> we moved the meningitis vaccine. we moved the ebola vaccine so moving vaccines is not something that is new to us. of course, you know, a vaccine on the scale and size of this one that, you know, the whole world needs in one time will be a v big feat for anybody >> dhl said that moving a billion doses of the vaccine, guys, would require as many as 8,000 planes and a whole lot of dry ice. back to you. >> is this the norm for the annual flu season vaccine, for example? or is it just more the fact that we're trying to stockpile ahead

hf hu of huge demand and longer storage period means we need to go to freezer farms? they don't need to go into the freezer farms with the flu >> well, i think that the current range for the supply chain is about negative 20 to 2 to 4 degrees tecelsius. negative 20 is a deep freeze anything below that requires more specialized equipment and the fact that all of this could be sitting at once for mass distribution, that is part of what is creating this logistical headache. >> thank you let's talk more about vaccines, president trump speaking earlier today about progress on that front and outlining when americans can expect to have one available listen >> we'll have manufactured at least 100 million vaccine doses before the end of the year and likely much more than that

hundreds of millions of doses will be available every month and we expect to have enough vaccines for every american by april. >> joining us now is dr. scott gottlieb, former fda commissioner always good to have you on a friday afternoon, dr. gottlieb >> thank you >> april, april for all americans? is that realistic in your view having been inside the fda and knowing what kind process and procedure this has to go through? >> well, i think that's a difference between when we might have the available supply in terms of the manufacturing of the vak xheen is going to ramp sharp live as we get into 2021 and when the vaccine may be licensed for general use i think in terms of when the vaccine may be licensed for general use for general population, that's potentially an event that could take place in the first half of 2021,

probably towards the later end of that range. potentially in the first quarter. i think that's exceedingly opt mus tick optimistic. i you this we could have a general vaccine license towards the back end of the first half of 2021. so the second quarter at some point. you want at least six months follow up data on most patients in the clinical trial and probably longer than that before you license it for general population you could see an emergency use authorization. i you this will you see that if the vaccine demonstrates to be safe and effective in the on going clinical trials for special populations, population that's are higher us are being of the consequences of covid-19 or higher risk of contracting covid-19, for example, health care workers that you could see potentially in 2020. i think what the fda is likely to do is expand that emergency use authorization for other groups of people who are similarly high risk for contracting covid-19 or having a bad outcome. but in terms of a general broad availability, i don't think that's going to come until the back end of the first half of

2021 >> also want to ask you about the cdc's u-turn again now recommending in their guidance that asymptomatic people get tested when they pulled that in august there was an outcrew fry from at of doctors that asymptomatic people have to be tested from day one. the cdc has come out with mixed messages from day one where they only allowed people from chunin to get tested. all the sick people were not getting tested because they didn't have the right guidance what is going on insued the cdc? and how much of the credibility is in question >> i think the initial guidance when they were restricting test from people coming from china or in close contact with someone who is known to have the infection, and that was the guidance maintained in february and through parts of march

i think that really was an attempt to try to ration testing. it wasn't an available supply of testing. now that we have access to tests, it's more accessible in the commercial marketplace we should use widespread testing. we should be tracking down people that are exposed to infection are principles of trying to control epidemic spread in that environment the guidance that they issued today is the right guidance. i think they landed in the right place. this is what doctors by and large are doing and what states and cities are recommending. >> dr. gottlieb, are you worried about the pickup in cases in europe is there anything the u.s. can learn from the causes and the factors around those pickup in cases? >> yeah, i'm very worried about it there is a real risk in an upsurge in cases this typically would circulate in the fall and winter as a coronavirus. the other known coronavirus is the seven known strains of coronavirus circulate in the

winter there was relaxation in the tactics that they were employing to control the epidemic. populations around the world are somewhat exhausted about what i we've been going through and people have backed off a lull bit i think we just need to be vigilant we need to tun to wear masks and continue to use testing and tracing as tools to control spread you don't think that we have to reach back to the kinds of shutdown that's we had in april and may. we shouldn't have to do that we should have better tactics for trying to control spread and targeting interventions better in areas that are having epidemics rather than sort of wud spread shutdowns but, you know, we have one more cycle i think to get through with this virus before we can get into 2021. hopefully see it dissipate somewhat on us own and then get a vaccine entering into the fall of 2021 when this wants to become epidemic again. >> at this point, as we await the vaccine, we were supposed to have the antibody treatments as

the bridge to the vaccine. it seems like the vaccine is moving even faster than that what happened to those lily had news on it and mixed and a lot of hope for the antibody cocktail. what happened to that bridge >> well, the trials have enrolled a lull more slow will you than people anticipated because there are so many clinical trials going on competing for patients there is a lot of patients enrolling -- a lot of trials enrolling patients and never going to really yield an important result we should have focused recruitment on the trials that are with the most important therapeutics lily had data last week that looked encouraging and they hopefully will have data soon. i think lily's data came out this week. i think one of the antibodies should be successful. >> why don't you think public thichl forever taking a vaccine when it's available has slipped over last couple of months and how concerning is the?

>> look, it's very concerning. i'm hopeful after we get past the political season and the vaccine is not talked about in a plul context as it is right nour by everyone across the spectrum that we focus on the public health and data. that is reassuring to people i have confidence this vaccine will will go through a very careful process by the fda, data safety monitoring boards and the external visors, by the companies themselves that have to commercialize the vaccines and have to make the decision to submit the data including pfizer, the company i'm on the board of i'm confident that the process has integrity. when people focus on that process, people will be reassured. >> it's go to hear what also stands out as you know is the historic speed at which the vaccines are being developed. what have you learned either through the involvement with pfizer or following the others that might be applicable post pandemic, for instance, vaccinations against the flu or some of the gi bug that's go on

cruise lines anything from the platform that you have been working on at pfizer or just the amazing speed at which this has all been able to come through? >> well, look, generally speaking, these are platforms that have been used before or were being developed for flu vaccine, the case of pfizer and moderna they were already in development. so trying to redirect them towards another virus while complex a lot of work had done already. the trials are outcomes trials we license in 2009 the vaccine based on data alone. he can didn't require a demonstration of that vaccine prevented the flu in that case we just required a demonstration that vaccine generated antibodies that could target the flu. in this case, we're doing trials we enrolled 30,000 patients. others are enrolling 30,000. j & j committed to a 60,000

trial. while the development process went quickly, in terms of getting the construct, getting the vaccine construct based on platforms that existed, the actual development in terms of generating data, we're going through a very deliberate process with that. >> dr. scott gottlieb, always so valuable to hear from you. thank you very much. >> thanks awe lot. >> we appreciate it. wake up call coming up, we're going to discuss a new book claiming the pandemic revealed weaknesses in the western world. will we'll talk about the lol ications for the gba economy and geoplucks, that's next

welcome back covid-19 is the largest mass deaths 66,000 deaths have been recorded so far this year more than double last year's total and 23,000 are confirmed or likely covid-19 cases the u.s. is set to pass 200,000 death this is weekend. a man was killed by fleece a nearby neighborhood where he was said to be firing his weapon erratically hitting several homes ena police car video from scientists on a greenpeace research ship inside the arctic circle shows how the solid ice cover there has been shrinking as sea temperatures rise and 237 rare books worth $3.2 million including first editions you about galileo and isaac newton were hidden under a

house in rural romania they were stolen in london in 2017 allegedly by a romanian organized crime group. but they have found them once again. you're up today. back to you. have a wonderful weekend >> you too, sue. thank you very much. up next, a wakeup call, how the coronavirus pandemic shed new light on weaknesses in the errln wod. what that might mean for the gleebl econo global economy ahead i'm a verizon engineer. and i'm part of the team building... ...a powerful 5g experience for america. it's 5g ultra wideband, and it's already available in parts of select cities. like los angeles. and in new york city. and it's rolling out in cities around the country. with massive capacity. it's like an eight-lane highway compared to a two-lane dirt road. 25x faster than today's 4g networks. in fact, it's the fastest 5g in the world. from the network more people rely on. this is 5g built right. only on verizon.

had the tiktok we chat drama continues to unfold. the commerce department will ban u.s. transactions with tiktok starting on sunday this comes as the u.s. tries to exert control over the hands that hold u.s. citizens data joining us is thepolitical editor at the columnist and author of seven books.

the latest is "the wakeup call." adrian, very good afternoon to you. thanks so much for joining us. maybe we'll get specifically to the tiktok drama in a moment but the main idea in your book is that the pandemic itself has highlighted a trend more clearly that was already happening in your mind which is that we might be drawing near to the end of leadership by the western side catching up. >> absolutely. what the pandemic really was was an examination which the whole world took at the same time. and the winners and losers in this examination were rather surprising we found western kun countries doing worse and countries in east asia doing better than xbekted, notably china china unleashed this virus on the world. but it got it under control and now we see very substantial, very significant differences in death rates between east asia and the west

i think we were talking at your news item earlier and talking about new york i think new york had 20,000 people that died of covid-19 seoul, a bigger city than new york, had about 50 people die of covid-19 so now china has beijing at least is back to normal. they're wearing facemasks. everything else is normal. london is now closed down and entirely closed down and westminster and the central of london is a ghost counsel. that is because, you know, eastern governments have done a better job of bringing this thing under control than western governments particularly the united states and the united states government and the british government. >> is this a democracy verse you autocracy factor >> i don't think so, really. if you look at the countries that have done well, they include some autocracies like

london but south korea is a country which has a very vibrant culture. you know, you have very big ruckus nightclubs. you have, you know, a culture of individualism there. i don't think that is the thing. i think the thuing that differentiates countries that succeeded and those that failed is government capacity, state capacity they really invested in and value the ability of the governments to deliver public services have done better. those that neglected that thing have done worse. i'm afraid the united states and great britain seem to be very high on the list of countries which have rather dysfunctional governments at the moment. >> but i would argue, adrian, as far as the outcome of this, it's going to be the ingenuity of american pharmaceutical companies that is really going to help us lead the way out. if you look at the major producers of the vaccine -- and

western as well. a lot of partnerships between the u.s. and europe, the vaccines, the treatments, some of the technological advances on testing. it appears that we're the best at that. and that's what the world is going to need ultimately and we can assert it appears that we're the best at that that's what the world is going to need ultimately and we can assert our leadership that way in the united states. >> i'd add britain and oxford to that. >> for sure. >> i think it may well be the case but when it comes to innovation, when it comes to getting the vaccine, it's a great pity that we've had to get through so much misery and unnecessary deaths in order to assert our ability to be innovative. you could be innovative and have governments arguing this should

be a wakeup call the weaknesses of the west's governments have revealed things that are more generally important for the quality of our lives. let's fix dysfunctional government not just so we don't have another pandemic, but also so we have a better, flexible and more focused government for all sorts of reasons. >> what do you make of the way the u.s. government is trying to handle tiktok and wechat >> i think i rather sympathize with the united states on that since china has become a member of the wto, it has stolen. it has broken the rules. i think pushing back against china is absolutely right.

the general strategy to be suspicious and to play hardball against people who have systemically raided and stolen and are continuing to raid and steal is absolutely the right thing to do. >> thanks so much for joining us >> thank you for inviting me. >> still to come, tesla, nike, we're going to break down key things investors need to watch infinite "what ifs?" and contingency plans. creating funds that help target gaps in client portfolios. tap untapped potential. and strengthen confidence in you. flexshares. powered by over a century of investment expertise before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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wednesday the subcommittee on coronavirus held by james clyburn will hold a hearing on the response to the coronavirus pandemic we're also going to hear from general mills and then on thursday darden restaurants and costco will both report earnings tuesday is going to be a big day, between tesla battery day and nike, which really brushed off an earnings disappointment last quarter and has had a pretty steady climb off march lows it is considered a winner prepandemic and now post pandemic as well they've got a good lead on many markets, including china. >> this market has really gravitated toward a pretty select handful of brands that are considered to be very long-lived premium brands and franchises nike is public schoabsolutely om have you noticed what lulu shares have done recently?

way off their highs. interest backdrop. >> in terms of the overall market levels, russell 2000 up 2.6%, nasdaq 100 down 1.5%. >> it seems like the story line out of a come up pakocomeuppanc. i think the question is, is it just kind of a stutter step in the longer term trend? is it the market repositioning for a stronger recovery? or is it a little bit more of taking some money off the table in the winners and adding a little bit to the losers that's the question going into next week. >> i think the case loads in europe are going to be important. that got on the market's radar these are countries that had mask mandates and were social

distancing dr. gottlieb told us maybe they were being a little lax with t but it does make you wonder whether we're in for a second wave come fall and what can be done from a public policy perspective to prevent it until we get better treatments and vaccines. >> no doubt. you've had the end of summer and travel quickly in europe turn more into fall weather that could be a factor we'll learn more about that and hopefully learn the lessons on this side of the pond on all that thanks for watching. i'm m i'm brian sullivan in for melissa lee. happy friday this is "fast money. steve grasso, bonawyn eison, jeff mills signed, sealed, delivered and a big bold call on fedex one mega bank says t