Skip to main content

tv   Squawk Box  CNBC  September 28, 2020 6:00am-9:00am EDT

6:00 am
>> and house speaker nancy pelosi says a deal is still possible for another round of coronavirus relief we'll take you live to washington no way, the 28th it is. monday september 28th, 2020. squawk box begins right now. good morning, everybody. welcome to squawk box here on cnbc i'm becky quick with joe kernen. andrew is out today. the dow was lower by 2% last week amid growing concerns about the election, conflict with china, conflict in washington between the two parties but you can see this morning take a
6:01 am
look they're higher across the board. the nasdaq is up by 134. it's early in the morning but these are pretty significant green arrows at this point take a look at what's happening at the treasury market and you'll see that right now the ten year is yielding where it has been 0.996% joe. >> tik tok, the latest here. developing late yesterday, the u. s. judge blocked an order that would ban tiktok from being downloaded in the u.s. the ruling is the chinese owner byte dance has more time to get approval from u.s. and chinese authority which is unclear if that really happens for that deal with oracle and walmart the judge did not clock a much broader ban which is set to take effect on november 12th which the way things are going will be here like tomorrow i wanted 2020 to go quickly but
6:02 am
now i'm thinking it's just going too quickly. we wanted to go quickly. >> still 2020. you still did your best barbara walters with that. >> 2020. >> and hugh, hugh had a long illustrious life hugh is gone now but we remember still on, just different people. you can do 60 minutes. 48 hours and then the grandaddy of them all, dateline. there's times when i wish it was on every night but then when i watch it too much, i start worrying i worry about everyone was there's so many -- it's usually the husband though. >> things that could happen. >> yeah. >> but it's usually the husband. even if he's out of town he has something going on do you know what i mean? so i don't have to worry about myself, or do i?
6:03 am
that's the question. >> the u.s. government imposed restrictions to smic that's china's biggest chip manufacturer reports say the commerce department sent a letter to companies that said an export license will be required to sell certain equipment to smic. they said there's unacceptable risk that equipment may be diverted to military end use the move could set back china's goal of strengthening it's semi-conductor industry. they told cnbc that it has no relationship with chinese military and does not manufacture for any military end uses but this goes back to what we're hearing with tiktok. is there any deal that you think that could be one that would appease the united states government and the chinese one. >> what does this mean about decoupling or not decoupling
6:04 am
what are we going to be able to agree with the chinese on anything that's really important in terms of security or data or -- i mean, now it's personal data you heard kyle saying that we need to worry about our young people being brainwashed -- i mean, if you really do worry about the age old coomunist versus capitalist, cold war, whatever you want to call it, we're smack dab in the middle of that i don't know whether a different administration, if there was one, i don't know how that would effect it but it's an important trading partner and remember 2, 3, 4 years ago before we thought that there would ever be any sentiment we were just hurdling headlong toward a united trading world and now it's all -- there's people talking about two separate like entities two separate internets two separate economies. >> two separate internets. >> yeah.
6:05 am
>> i don't know. >> and trying to see where this all goes and that exchange of information, i mean, very interesting on what the judge has ruled on this. not ruling on the november 12th restrictions at this point but just the idea that saying you can't put this in effect now, china has figured out how to use our own system against us going through the courts by doing this you can't unilaterally, if you're in china use twitter or the other social networks that the u.s. has created so china has figured out how to put this back on us and we'll see how this plays out. >> and we still, you know, if human rights is really front and center, people like that don't want us to deal with china at all.
6:06 am
it's not pretty and we'll see what happens with hong kong, i don't know, becky. the world is -- i don't know, and then we got the pandemic so what can happen from here? world war iii? i don't know let's hope that 2021 -- 2021 goes back to like the 50s. you don't remember the 50s i don't either but there have been times in the past -- there have been times in the past where i don't know, is it the internet? the news cycle, i'm exhausted. i'm exhausted. this latest stuff. >> i can't believe it's just been two days since the president made his nomination for the supreme court. that seems like a week and a half ago. >> of course nothing going on this week. wait until tomorrow. what is that going to be like. >> the debate. >> and 70% of the people say the
6:07 am
debate isn't going to change their minds. but what are these two guys going to do to each other? i have no idea what's possible how many times will we hear the word tremendous. it's going to be wacky and wild. >> can you hear crickets chirping here? i don't know if you can hear it. they're in my basement they're driving me insane. >> i was going to tell audio that's rude to play crickets while we're talking. there's people at home that think that that's appropriate. oh, this is a commentary. how many crickets does it take it could be just one can't it? >> it's one. he's right over here i want to go over and say hey,
6:08 am
quite down he stops for about ten seconds. >> it's just their legs, right and is it -- >> yeah. >> is he looking for -- is he looking for another cricket? do you know? that's what it means. >> are you in the mashlrket should i tell him? >> no, but isn't it -- are they -- you know, are they saying come hither, do you know? >> it's a mating call. >> it is you know that? >> i believe that's what i've heard i don't know i should look it up on the internet but yes i think you're right. >> there's only one cricket you have a problem yes. that's the answer. let in more. >> i guess we got to go but it's a weird sound, is it not it's over here. >> i can't find him. you really can that's all i hear.
6:09 am
>> they put it through the -- is it happening right now. >> i'm glad they're filtering it out for you. i'll stop. it's happening right now you don't hear it. >> no. that's all you need. >> anyway, news breaking in the last hour, uber has won it's legal fight to continue operating in london. a judge overturning that ban on the ride hailing app by the city's transport regulator at issue is a glitch that allowed unauthorized drives to upload their photos to other driver accounts and fraudulently pick up passengers they usare the largest market fr uber thus far. >> tomorrow night is the first presidential debate. overseas, brexit negotiations begin tomorrow haven't done that yet?
6:10 am
on wednesday, we'll get the latest gdp data. that should be interesting that i guess is a big number jobless claims and personal data on friday. we get the september jobs report two other items of note for wednesday, first, our delivering alpha conference is back for a tenth year go to delivering alpha.com to see the line-up and to register and then second, wednesday marks the premiere of the news with sheppard smith it will provide deep non-partisan coverage to the most important stories 7:00 p.m. eastern. >> all right up next, we will take you live to washington for the latest on stimulus talks and the republicans plan to confirm president trump's pick for the supreme court. the futures this morning, as we mentioned, they're up pretty
6:11 am
significantly. dow futures now up by 347 points s&p futures up by 41 the nasdaq up by 170 squawk box will be right back.
6:12 am
6:13 am
6:14 am
. and more on the latest on the covid stimulus talks are you exhausted? are you going to sleep in december is that what you're going to do? >> maybe, maybe not. we could be having a presidential transition. >> it's 2020 it's not over until it's over. until the year is over i don't think. it can't get any crazier. >> everybody keeps saying that everybody keeps saying they want 2020 to be over with and everything be careful what you asked for. >> i said that september 28th, what happened? september 28th, the leaves are changing what happened?
6:15 am
i don't know >> it's still march. it's like march 51 right now >> anyway, this, you know, of course this had to happen. rbg. god bless her, but, you knew that -- but we weren't thinking about that necessarily and then here it is, front and center so here we go. >> yeah. so look, all the speculation joe was that it's going to be amy coney barrett and that's who she picked unveiled the selection for the supreme court. she linked herself with judge scalia of course a conservative icon. >> i clerked for justice scalia more than 20 years ago but the lessons i learned still resinate his judicial philosophy is mine too. a judge must apply the law as written. judges are not policy makers and they must be residenolute in seg
6:16 am
aside any policy views they might hold. >> senate republicans have said that they're going to start the confirmation hearing process on october 12th that gives a very, very tight window but they think they're confident that they'll be able to do this and have her approved for the bench before the election we'll see if that holds up and if there's any waivering republicans out there. right now it looks like they do have the votes and meanwhile, we saw the speaker of the house, nancy pelosi on television yesterday saying she is working with the treasury secretary on another covid stimulus bill. they're at $2.4 trillion on the democratic side. they may have a bill that they put on the house floor this week that would be the democratic priorities and vote on that but what she would prefer to do is have a negotiation and a deal with republicans and put something on the floor that could get democratic and republican votes maybe as early as this week we'll see if that holds together that's a relatively optimistic time frame, joe, given the
6:17 am
struggles that both sides have had in finding concessions to meet in the middle here. pelosi on cnn yesterday was debate wrg the middle is, right? and she is saying that she doesn't want to come down any further to meet the republicans at a smaller bill because of the scale of the problem so that's been the crux of the negotiation all along and we'll see if they can do anything about it all of that happening this week. also we have the debate. we have the presidential debate coming up this week. we have the jobs report coming up and the supreme court nomination fight is going to be a fascinating week in washington, joe. >> we don't do that stimulus too. we keep talking about the airline industry the furloughs are coming in. they're huge numbers we talk when we hear about pure capitalism and, you know, i lean that way but, you know, i don't think they screwed up.
6:18 am
if they don't get anything it's going to be heartbreaking. we're talking about quite a few people that are going to be -- i don't know if it's permanent or not. >> what are the estimates? tens of thousands, right >> yeah. >> you're talking about an enormous number of people. >> think about it. >> you know, the -- you -- you put your money down. you're taking a chance if you lose, you lose. and you're talking about an industry that we take for granted. they fly to an island and they don't land and they fly back at home and get off and they say i feel like i was on a trip and i don't need to quarantine now i would not do that. i don't want to sit on a plane for four hours to land where i took off but people, it's an important industry aman. >> those are the people that go around saying life is not about
6:19 am
the destination. life is about the journey. >> that's literally the case sometimes. it's about the journey. >> the food and the peanuts. all right. thank you aman we'll sleep in january maybe. >> now for a closer look at the headlines that will impact brian, thanks for joining us you have been -- i guess you got your finger right on the pulse you're seeing the slightest changes in the way that the trends are going and the scotus process just added another layer of complexity of a already volatile situation what does it mean and what do you think gets an advantage from it net-net in the end, if anyone. >> it might be a wash, joe both bases are going to be
6:20 am
charged up probably pretty eq l equally. there's polling the last couple of days that voters would prefer the president to wait and the senate to wait but, you know, i don't see any indications that it's a high priority for them. i think at the end of the day, debates are going to matter hugely the state of the economy the status of the covid-pandemic i think they're all more important than the scotus nomination and confirmation process. it will be great for tv. it's great for the partisans involved but for voters looking to change their minds and are still weighing and there aren't a lot of them but that small cohort of voters, unless there's something in the hearings where one side overplays a hand, somebody trips up in a statement, i think at the end of the day, it's a wash. >> i remember the last one and already a couple of the stars of the last one and i use stars in a -- you know, whatever, but bloomenthal,
6:21 am
neither one of them is going to meet with amy coney barrett. i'm just wondering whether -- you know, she's a very impressive, obviously person, woman, and i wonder if you can get away with some of what we saw with kavanaugh or not? i think maybe that might be -- that might change the dynamic of what we see this time around don't you think? >> right that's what i was illuding to. can one side overplay it's hand. can they be so dismissive of a qualified candidate that it backfires on them? can democrats in asking questions come across as condescending to people of faith and how they act in the public square whether they can bring their faith into the public square and be faithful to the laws of the constitution and ask those questions in a respectful and meaningful way without looking down their noses at somehow -- we have seen some of the reporters out of reuters and
6:22 am
other outlets initially describing or characterizing judge coney barrett and it was probably fairly insulting to a large number of americans. >> you also talk about the senate they were not good biden had the biggest lead and look at a number of senate races. and when democrats have the
6:23 am
biggest leads in those races i'm not saying it's a guarantee that republicans are going to win but over the last couple of weeks as is a natural tendency in elections the base come home. >> hey, brian, before we go, here's the new york times. the story about the taxes which is, do you remember a couple of years ago we had a pretty good idea about some of this. the real estate losses i thought it was from the new york times we got some numbers. 750. that's the new york times right there with everything that's going on that's it go ahead >> trump opponents got what
6:24 am
they -- what they believed all the time trump supporters will dismiss it this is the trump we know swing voters, it's kind of the same this is the trump we know. did it put significantly more meat on the bones that it's going to change voters attitudes and opinions of the president? i doubt it it's an interesting article. you'll read it and you may find something new about how you can change tax law to your advantage? does it change him as a business man and a person i don't see it this is consistent with the opinion and it does not change things. >> i agree with you. i don't know that it changes anybody's opinion on this but the the reason that it layed it out is its their exclusive reporting. they're the ones with hundreds
6:25 am
of documents the journals just following what they have to. >> right but last time -- >> it was her last time too, this is more years it's obviously many more documents including a couple of years while he was president in 2016 and 2017. i don't know that it changes anybody's mind but the reason it's displayed so large across the time its their original investigative reporting. >> it's also a pretty big election coming up and, you know, if there's -- if somebody breaks the law and cheats on their taxes they need to be prosecuted and go to jail. that is absolutely the case. but, you know -- >> one of the things that it brings up is there is this question of $72 million that he took in a tax refund at some point that's still being audited by the irs. >> if that comes out and there was actually breaking the law then there's going to be serious consequences. >> he would have to pay fines, right. the article estimates it would
6:26 am
be $100 million or more because of the fines but yeah, we'll see what happens >> but brian, most wealthy people pay exactly what they know. >> it was a great advertisement for tax lawyers. >> they pay exactly what they owe. some of them, patriotic millionaires, they talk about wanting to pay more but none of them have ever used that little line down on the bottom on the irs form that says i want to pay more they're like oh, well, i'd like to, but they don't anyway thank you. >> thank you, joe. >> okay. >> all right when we come back this morning, the new york times as we just mentioned publishing a detailed review of years of president trump's tax returns. robert frank joins us with some context right after this right now, though, as we head to a break, here's a look at the biggest premarket gainers in the s&p 500 this morning and there's big gainers because the futures overall are up pretty sharply.
6:27 am
the dow, there's carnival. carnival, american airlines, some of the royal caribbean is also on the list there some of the stocks that you look at when you think that potentially we'll get back out there again. the futures for the dow up by 366 points s&p futures up by 44 the nasd up aqby 188 squawk box will be right back. that's what my dad does.
6:28 am
good job, michael! ok, lindsey now tell the class what your mommy does... my mom has super powers. it's like she can see the future. what?! it's like she time travels in a rocket ship.
6:29 am
that's cool! and then she comes back saying "try this" or "try that." she helps everyone. she helps them feel less worried. wow! mommy, so what is it that you do? i'm a financial advisor. she is! aig proudly supports all the professionals taking care of our financial futures. but a resilient business you cacan be ready for it.re. a digital foundation from vmware helps you redefine what's possible... now.
6:30 am
from the hospital shifting to remote patient care in just 48 hours... to the university moving hundreds of apps quickly to the cloud... or the city government going digital to keep critical services running. you are creating the future-- on the fly. and we are helping you do it. vmware. realize what's possible. vast write offs and audit battle and hundreds of millions in debt coming due robert frank joins us with more
6:31 am
on this story. good morning. >> good morning, becky well, this report saying the president paid $750 in federal income taxes in 2016 and 2017 and he paid nothing for 10 of the previous 15 years. that's according to that report in the new york times which says it obtained the president's tax returns. now let's go first through the income side. now, most of the income came from the apprentice. that's $427 million since 2005 along with 176 million from two office buildings that he co-owns with vornado and 20 million a year from the office and retail space at trump tower that's his large income. now he plowed a lot of that cash into buying golf courses and the washington hotel which according to this report have lost hundreds of millions of dollars now losing 162 million through 2018 and that washington hotel which we hear so much about
6:32 am
losing 56 million. those business losses along with depreciation and tax credits from the hotel allowed him to offset his taxes due so he paid nothing for four years before 2015 now he received, as becky mentioned earlier, a $73 million refund in 2010 which is now the subject of the irs audit now he is a lawyer for the trump organization and said most if not all the facts in the times story appear to be inaccurate and over the past decade the president has paid hundreds of millions in personal taxes and millions since 2015. becky. >> robert, i guess according to the times article you may be paying personal taxes but they might not be federal taxes it could be social security and taxes for employeeing people in your house or in other places. it's confusing and the times themselves, the reporter at the times admitted that this raises
6:33 am
a lot more questions even than some of the answers that you think you might be getting here. >> it does raise a lot of questions, but it answers a lot more and why i think this is important, joe is right. the healthy pay what they owe and there's a lot of private business owners that use business losses or tax losses to offset income. that is quite common and we also knew that truch had these large loss carry forwards in the mid 90s but what this shows and lays out for the first time is a very specific narrative about trump's income and business over the past 20 years. so he had this billion dollar loss in the mid 90s and carried that forward to 2005 that ran out just when this wind fall, probably the biggest cash wind fall of his recent business career of the apprentice started in 2005. so he paid income taxes for those two years which we also knew about but then paobama gave him a gif where he was allowed in 2008 and
6:34 am
2009 in a crisis to basically carry back losses from the financial crisis so that's where he got the refund from the taxes that he paid in 2005 and 2006. so this lays out not just his income and businesses but also, i think more importantly, how those businesses have performed recently and i was surprised even if you take out depreciation that all of these were losing a lot of money according to his tax forms, and i thought, okay, depreciation, that's one thing but even if you take that out, he is losing tens of millions of dollars and i think that's important. >> you think the numbers just in terms of how the businesses were doing, how were they performing before he was president and in the two years of documents that they saw as president.
6:35 am
it's a little unclear. it doesn't quite lay this out. it's ease is i to invest in the business and show a tax loss but the worth of that business is much greater than it was prior to him owning it we don't know the value of these businesses and whether that might have grown even as the income or losses grew. >> you can do a net-net assets and liabilities. who knows what you'd get to. >> that's right. >> the other thing is, i don't think being president has helped in terms of people staying at his properties half of the country wouldn't be caught dead probably in a trump property so i'm not sure that that was necessarily the greatest business move. anyway, thanks, robert coming up, what about the crickets, becky? >> they're still here and you can't hear them but everybody else at home can because i'm
6:36 am
getting lots of twitter messages about it. >> the only time i usually hear crickets is when you're not hrer and i talk about sports. then that's all i hear i talk to mack on break. that's usually when i hear crickets coming up, a u.s. judge blocked president trump's ban on tiktok downloads set to take effect last night we'll talk to the former u.s. chief technology officer, next check out shares of amazon announcing if prime day will take place on october th13 and 14th we're coming right back. as business moves forward, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers... and deliver our products.
6:37 am
but no matter how things change, one thing never will... you can rely on the people and the network of at&t... to help keep your business connected. "a good education takes you many different horizons" and that sticked to my mind. so, when $1 a day came out, i said, "why not"? why not just utilize that resource. and walmart made that path open for me.
6:38 am
without the $1 a day program, i definitely don't think i'd be in school right now. each week for me in school is just an accomplishment. i feel proud every step of the way.
6:39 am
inskrecreased the gain since show began the s&p indicated up 44. so strong, nasdaq this morning, 191 in the free market
6:40 am
>> thanks. the music label behind the k-pop boy band bts is going public in south korea. priced at the high end of the expected range it will be 820 dollars and make the market debut in october. it's expected to be strong with the fans reportedly looking to buy shares of that label that's one way to cash out. >> all right do you know any of those songs could you hum one? >> no. >> i have seen those guys, i think. >> i've seen them but i have no idea what they sing. >> me neither. there's a lot i need to -- you know what -- >> crickets are appropriate. >> health care stocks among the most vulnerable we election uncertainty. election uncertainty and scouts
6:41 am
and later senator ted cruz you can watch or listen to us live any time on the cnbc app. ♪
6:42 am
everyone wakes up every morning to a world that must keep turning. moving. going. the world can't stop, so neither can we. because the things we make, help make the world go round. we are builders, constantly creating things that make our world cleaner, healthier, and more connected. so that the small moments that help define who we are, and the big plans that make life wonderful can keep on rolling. because while gravity may keep our planet on its axis, it's what we build that keeps things moving forward. so with every turn, we'll keep building a world that works.
6:43 am
6:44 am
6:45 am
it's indicated up by 350 points already this morning. t nasdaq up by 185 and the s&p up by 143 points. continue to watch the space. we'll see where we go as we get closer to the opening bell in the meantime, a u.s. judge blocking president trump's ban on tiktok hours before it was supposed to take effect yesterday. thank you for being with us today. this story seems to be the one never ending in terms of what happens with tiktok and what the next step may be but what do you think about the judge going ahead and saying this ban can't be put in place, issuing that injunction. >> this was a reasonable move given that the original order felt a bit broad this is table stakes the main event is what's
6:46 am
happening with a program which has the authority to determine whether or not the transaction that bytedance acquired u.s. assets on several years ago and really all eyes are on them and the negotiations between oracle, walmart, bytedance and the u.s. government and that's what we're going to see resolution of this matter >> you served when you were in the white house under president obama, correct >> that's right. >> and how does that process work walk us through what would happen here. i know that they look at national security. how high is the bar and what are the odds how would you game it? >> right now the role is to protect financial security think of it like one more step of due diligence and a deal between two private companies.
6:47 am
if one of those companies happens to be foreign and they're making investments in the u.s. based company then there's an added level of due diligence. for the last decade or so, this has rarely been a mechanism to stall commerce but of late, it has been awakened on a number of issues related to china several years back health system, patients like me are a portal for consumers to share their health information with their peers and was acquired by a chinese based company. that deal was overturned and unwound. so it's got teeth and on this case there will be a healthy percentage of probability that there will be some resolution and negotiated settlement to
6:48 am
mitigate security risks. >> how would you vote on if you were on the board at this point? is this a national security threat to have information to have an app managing all of that, the algorithm based in china too? is that a national security threat >> there's two threats one this is that data held by the american people unknowingly might be into the hands of the chinese government to be used against us and then also the training of the algorithms based on data that might be misused, maybe in election interference or other matters of national security so i do believe that the threat is real and it will come down to mitigation. you know, i have said on this show before, if we had a national privacy policy that had clear rules of the road, what can an app do on my phone with my sensitive data. is it constrained or can it do whatever it wants with very, very broad language in the user agreements that none of us ever read
6:49 am
absent the national privacy policy we'll have one by one transactions and my hope is that within the national privacy policy we'd have clear rules of the road that apps do have access to our sensitive data but can only be used in context. that would be a broader solution to the clear challenge it's a mixture of security and privacy in my view. >> we'll have you talk to talk more about it. >> thank you for having me. >> thank you. >> when we come back, health care underperforming over the last six months. the election results could have a major impact on the sector we're talking to an analyst about how to position your portfolio ahead of all of that right after this and a programming note, get ready for delivering alpha coming up on wednesday you can go to delivering alpha.com to learn more and to
6:50 am
register big line-up of guests. squawk box will be right back. (♪ )
6:51 am
keeping your oysters growing while keeping your business growing has you swamped. (♪ ) you need to hire i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base so you can start hiring right away. claim your seventy-five-dollar credit when you post your first job at indeed.com/promo
6:52 am
6:53 am
the performance of many health care stocks hinges on the outcome of the election. also got the supreme court nomination also got possible second wave. joining us is the health care sector anna gupta. anna, i used to hate writing papers remember the outline i think the two macro things we put if we were writing a paper to try to gauge what's going to happen is you've got the judicial outcome, which hinges
6:54 am
on scotus and post rbg and now i guess it's acb and we have aoc everybody goes by initials now i don't know if i want to be jrk because it says jerk we have that and the election and then we have the pandemic and possible second wave we have to sift through all of that and decide what to do with health care and who the winners would be and who the losers would be let's start with amy coney barrett and scotus and what that could mean because there is a case coming up that "the journal" says is a crappy way to do something with obamacare. it's not going to win. it gives the democrats fodder to say you're going to take away pre-existing conditions and it has no chance of succeeding. do you agree with that that could be decided this year, right? that's probably not going to be the sounded death nell for obamacare? >> three things. there's a law of threes on all
6:55 am
of this. firstly, what will happen on november 3rd what's going to happen on the 10th of november she's getting confirmed it looks like by the end of october, and then what happens after the election from a legislative perspective. i would agree that i think it's the lower likelihood scenario that scotus actually overturns obamacare. i think more likely it will be kavanaugh probably and chief justice roberts maybe that will side with the liberal justices, however, it's a finite risk. i would dimension it in the 20% likelihood scenario, which is not zero, so you need to take that into account on your investment decisions they have historical precedence in 2020 of throwing curveballs nobody knows why i think there's judicial precedence kavanaugh wrote about non-sever
6:56 am
non-severability currently speaking as well, it's the subsidies that are driving the process on the aca >> good. all right. we'll take the 80% because nothing in life is certain all right. so -- now let's talk about the election itself depending on the senate, depending on who becomes president. what are your -- do you have often -- play offense picks? do you have defense picks? do you have things you should sell things you should buy? how should we position ourselves? >> okay. yeah so i would buy -- i would buy united and humana as my defensive plays in managed care. i would definitely play teledoc and any other digital health names. good rx has gone public on the pharmacy side as well and then finally on the offensive side i think where the risk is priced and there is meaningful exposure
6:57 am
but the risk is priced in, i would play santine. >> the second wave, is that -- are we better prepared now do you expect to see that or we don't know about that either >> that's the other risk so when i recommend united, humana, teledoc, they actually benefit from the pandemic to some degree. lower utilization. more adoption of technology so it's taken into account on that and ntine is more immune to the pandemic and all of that is factored into the picks. >> all right stay close to your phone because we want to talk probably again and again about these things, anna thank you. appreciate it. >> sounds good thanks, joe. >> see you later. when we come back, senator ted cruz joins us. we've got a lot to talk about with him including the supreme court nomination hearings,
6:58 am
stimulus talks and ocosehef ur t election just 36 days away we'll be right back. this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.
6:59 am
7:00 am
7:01 am
we are on washington watch we will speak with senator ted cruz about a possible stimulus package and the president's pick for the supreme court. plus, what will move markets this week? mohamed el erian joins us with his take as the futures point to a strong opening on wall street this morning. plus, tiktok, apple and other names moving this morning. henry blodgett, "insider, inc. ♪ ♪ ♪ good morning and welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick. andrew is off today. u.s. equity futures at this hour, solid. up 350 now on the dow.
7:02 am
175 or so on the nasdaq. s&p up 42 or so, i guess rock around the clock has something to do with tiktok, i guess. >> that's it i was trying to figure out what the connection was either that or they just think we're old. that's our era anyway, developing late yesterday, u.s. judge blocked an order from the trump administration that would have banned tiktok from being downloaded in u.s. app stores. that ruling gives tiktok's owner, bytedance, more time to get approval from u.s. and chinese authorities for a deal from oracle and walmart. the judge did not block a much broader ban set to take place on november 12th. we didn't see the judge's reasoning behind this. that's something two other judges have refused to do anything on. the first was in pennsylvania and the other is in california we'll wait to hear exactly the reasoning behind that. >> yeah. i thought about that, becky.
7:03 am
a lot of times, i see some of the decisions that come down, it depends on where the court is. it depends who nominated that judge. there is a lot of subjectivity. >> this judge was nominated by president trump. >> he was. always a lot of subjectivity in it depending on the district in where it is. that's part of the reason, you know, some people really want judges that say up front i'm not going to set law or policy, i'm going to interpret what the law already is i don't know i read about this judge. i don't know what the logic is i don't know what to do with tiktok i don't know what to do with china. do you what would you like -- i haven't downloaded it yet. >> if you think it's a real concern, national security concern, then something has to be done. >> right >> then some of the deals we had heard earlier wouldn't cut the
7:04 am
mustard when it comes to that. i think that's the big question. we just spoke with anish chopra who served in the white house as a technology advisor under president obama, he thinks there is a security risk if it's a security risk, i don't know how the judges can turn around and say he can't ban something that is a security risk you have to wait to hear the rationale behind it to hear what they have to say but this is -- there are all kinds of ripple effects that can go from here we worry if the countries will start putting bans on our companies from operating over seas, and that's a huge risk for the business community we know china does these things to u.s. companies. you're not allowed to do these things there it's such a mess and there are going to be so many implications that come out from this. >> right right. lip syncing. were you lip syncing
7:05 am
i don't get it there's a lot i don't understand. >> i don't lip sync, i sing. >> you have the cricket going. is the cricket gone yet? >> yeah. >> we had -- >> it's morning. stop >> we don't mess around anymore. we did have on your shot, a cricket up there on the left i guess we're not going to do it did you see, mac we had one ready to go we sometimes have a big foot behind diana olick we do it for ourselves though on the break. >> yeah. we entertain ourselves >> we entertain ourselves. >> there it is now we've got it have you got a monitor >> no. get out of here, cricket yeah, i see it this way i mean this way. >> that's right. back to serious news we do have a lot of news out of washington that could move the
7:06 am
markets this week. everything from the president's pick to the supreme court to a possible coronavirus relief bill from the democrats let's welcome senator ted cruz from texas he has a new book coming out and it's very timely, called "one vote away, how a single supreme court seat can change history. senator cruz, thank you for joining us today wow, talk about the timing on this this is all that is on anybody's mind right now and perhaps more than anything else coming down to what happens to obamacare this was a discussion that we were just having a little bit ago for the one vote having a huge impact over the course of history. how much is riding on this right now? >> well, good morning, becky thank you for having me on again. you're right, this vote is enormously consequential the book "one vote away," i wrote this this spring and summer during the covid lockdown and really focused on -- before i was in the senate i was a supreme court litigator.
7:07 am
my job was representing the state of texas and representing private companies in company litigation before the supreme court and what the book does is each chapter focuses on a different fundamental constitutional liberty chapter on free speech, there's a chapter on religious liberty, chapter on the second amendment, there's a chapter on u.s. sovereignty. there's a chapter on elections and democracy and bush versus gore, i was part of the legal team litigating that which we may see reprized with this election if we have litigation challenging this election. in each of the chapters what i do is i tell war stories, i tell really the inside story of what's happening on the court, who the players are, what the issues are it's designed to be readable, to be understandable. you don't have to be a lawyer to really get why the issues of the court matter and how virtually
7:08 am
everyone of them they're one vote away. 5-4 decisions. one additional justice on one side or the other can flip the balance of the court so this vacancy right now is incredibly consequential and president trump's nomination of judge barrett is going to prove one of the most important things he has done in his entire tenure as president >> sen torks let me ask you. as a student of the court, this is a conversation we just had with a health care analyst what happens with obamacare? she seems to think that justice kavanaugh might very well side with roberts and go ahead and protect it, the obamacare -- might pro effect it from the cou - protect it from the court. kavanaugh has been a jurist looking at the law so far he seems to be looking at things from what the law may dictate. >> well, and that's what any
7:09 am
justice is supposed to do. we're not supposed to have justices who are pushing their own policy agenda. instead, a justice should follow the law. i don't know how the court will resolve this particular obamacare case the first obamacare case that came before the court chief justice roberts wrote an opinion that was just -- it was a term opinion. he essentially rewrote the statute and turned what had been a penalty under the statute into a tax and he did it for policy reasons. he did it to save the law because he wanted to keep the court out of politics. ironically, it ended up proving one of the most political decisions he's ever done i've known john roberts 25 years. he was a former clerk to chief justice rehnquist as was i in the book "one vote away" i talk about that obamacare decision this latest iteration is based on congress stepped in and
7:10 am
eliminated the individual mandate. i led the fight in the senate to do that, and we got it done. and the question is what are the reperfecusse -- repercussions f the rest of the statute? if you listen, all of the democrats have the same talking point, obamacare, obamacare, obamacare. that's all they want to talk about. number one, every republican agrees we're going to protect pre-existing conditions. what they're talking about is what they think politically resonates, but 100 out of 100 senators agree we're going to protect pre-existing conditions regardless of what happens with obamacare. if obamacare were repealed, which we've tried to do in the senate, premiums would go down and health care would be more affordable, but what it really reveals to me, becky, the democrats don't want to talk about the radical left wing positions of their justices
7:11 am
restricting free speech, taking away your rights for free speech they don't want to talk about their radical positions trying to limit religious liberty your right to live according to your faith and your conscience they don't want to talk about their effort to gut the second amendment and write it out of the bill of rights and the fact that every democrat has obamacare as their only talking point on this i think reveals that they recognize the american people want to see the bill of rights have real teeth and our rights be protected. >> senator cruz, let me ask you just about something that the business community certainly has focused on i understand why republicans would go ahead and push for this nomination, push it through. you can and you obviously want to do what you can when you are in power the democrats have threatened to come back with some pretty nuclear option type things, changing the number of justices on the court, getting rid of the filibuster i do have to say, there seems to
7:12 am
be such a lack of gentility with the senate there seems to be such a lack of ability to work across the aisle. i do think businesses are very concerned about what happens with these huge swings to one side or the other every two years, every four years, every six years, every eight years depending how an election goes when all the rules change and everything gets rewritten. is there anything that makes you think we are not in for even more violent swings depending which side wins? >> i think that's entirely possible if the democrats win in november, if joe biden wins and the democrats take the majority in the senate, they will end the filibust filibuster they were going to do that long before the supreme court vacancy. they'll do that because they want to ram through some policies that from the business community will be enormously damaging they want to repeal the tax cut from three years ago that helped produce an incredible economic boom, but they want to raise taxes on taxpayers across the country and do it while we're
7:13 am
coming out of essentially a depression they're looking to impose massive new regulations. the green new deal is going to cost $93 trillion which to put it in context is more money than the federal government has spent in the entire history of the united states of america going back to george washington. energy, oil and gas, the proposals they're putting forth are to eliminate fracking domestically, to destroy the u.s. oil and gas industry and energy production. all of those would be incredibly consequential. i do think there's a real risk they would pack the court. they were threatening to do that before the ginsburg vai can say. if they do that, here are the repercussions. if you look at the law and say the court is going to follow the law, your clients can understand how to behave if they know what the law is if the democrats pack the court with judges that are just going
7:14 am
to do whatever they happen to think is fair and good policy, that becomes very hard to predict. i'll tell you, when i represented clients in the ninth circuit, which is the most liberal federal court of appeals in the country, it was very frustrating to clients because when you're in the 9th circuit, you didn't know what the hell they were going to do. it depended on what judges you got. it was all over the map. the justice community prefers judges and justices who will follow the law so you have predictability. >> yeah. i think both sides are guilty of kind of pushing things too far let me ask you about tiktok. we've had some conversations about this this morning. again, this is a judge in washington, dc, who issued an injunction saying the administration cannot ban tiktok at this point? is it a national security risk and if so, what do you think happens next >> well, i think tiktok is unquestionably a national security risk. tiktok is controlled by the
7:15 am
chinese government it is one of the many tools they use for espionage. the spy wear that is in tiktok is troubling in terms of the ability of them to monitor what you have on your phone, to monitor your contacts, emails, texts, phone calls it's deep, deep, deep espionage that a lot of folks, especially kids, especially pre-teens an teenagers are willingly letting the chinese communist government on to their devices and have that kind of surveillance. as regards this particular court decision, i haven't read the decision of the district judge so i am not sure -- >> yeah, i don't think he's released it. >> -- what the legal reasoning is, but i think as a policy matter it is a serious national security threat and the president is right to be leaning in to protect the national security interests. >> let me ask you about stimulus i know you have some very set
7:16 am
ideas. we've discussed this with you in the past about what you think it would need to rise to in order for you to vote to a stimulus. the democrats are going to come up with a new package and i'm sure you will disagree with it i'm sure it's not going to fit your bill exactly. we have secretary mnuchin speaking with them on discovering alpha on wednesday do you think it will be more difficult to convince the democrats or you and some of the other republicans? >> i don't think the democrats are moving in my opinion, nancy pelosi and chuck schumer have made a political determination that it is in their best interests to maximize economic pain, to have as many people unemployed and hurting as possible, and i think the reason is they believe that if millions of people are sitting at home and they're broke and unemployed and pissed off, that that benefits joe biden and so i don't think -- i
7:17 am
mean, we've gone several months where pelosi and schumer have hadzero interest in negotiatin anything, not even willing to come to the table. i think they've decided nothing will pass until election day one thing that hits very close to home in my home state of texas is aviation and airlines we've got airlines looking at tens of thousands of furloughs coming online october 1st. a whole lot of experienced professionals losing their jobs. that doesn't need to happen. i've spoken with the ceos of most of the airlines, but i've told all of them, listen, pelosi and schumer want this to happen because furloughs a month before election day they think will result in people being angry a the president and voting against the president. so i think pelosi will make some noise but i don't believe any deal will be cut to be clear, becky, i think we should be passing something right now. we should be focused on economic recovery, on getting businesses
7:18 am
open again i introduced regulation, the recovery act, creating liability protection for the millions of small businesses right now opening their doors, we want them to thrive and prosper and succeed. that's what we ought to be focusing on instead of cynically leaving people who are hurting economically to continue hurting. >> senator cruz, want to thank you for your time today. it's good to see you. >> good to see you >> all right coming up, sports betting. sports betting yeah leading the big returns for investors. really oh, maybe in the stocks. anyway, many see it continuing into 2021 as states revenue shortfalls and look for channels to make up for losses. largely a ripple effect. we'll discuss that sector before the break. before we go, let's check the quets. "sawk box" coming right back "squawk box" will be right back.
7:19 am
i felt like i was just fighting an uphill battle in my career. as a little kid i knew that i wanted to work with computers. ♪ so when i heard about the applied digital skills courses, that definitely appealed to me. you're learning how to create spreadsheets, documents, forms and surveys. i'm thinking i can become more marketable. i got to about the third course and i'm like, you know, i probably could do this for a living. you don't need to be a computer expert to be great at this. these are skills lots and lots of people can learn. ♪ i feel hopeful about the future now. it's empowering to have that knowledge that nobody can take away from you. ♪
7:20 am
7:21 am
gaming outperforming the
7:22 am
s&p. caesar's saying it's in potential talks for a u.k. based takeover of william hill last week they said caesar's and apollo management had made offers joining us, chad banion at mcfary his picks for the weekend were the steelers over the texans, although you won that. the 49ers over the giants which i had the 49ers but i had the under because i didn't know that the 49ers were the greatest offensive team in the history of the world when they put in even a second string quarterback. how did you like the arm tackles from the giants? they were like, oh, gee, i missed, sorry. gosh, go ahead the end zone is over here. that was disgusting. >> i'm with you. going to be a long season for the giants fans. >> god almighty. >> and then the bengals. i digress. i put $5 on and it makes every
7:23 am
game more interesting. it's a real trend. we're seeing it with consolidation. i'm thinking some media companies should get into this business, not just casinos and gambling don't you think we're going to be doing this real time and the engagements benefits media companies? >> yeah. i think that's where the market is heading there's been a number of media tieups if you look at the u.k., that's essentially where the money has been won sky betting and sky sports really started this trend so then in the united states there were tie-ups with nbc, cbs, with espn and with foxbet what you're going to see over the next couple of years is really programming tie-ins where you can click through to your bet and they'll be talking about why the spread is where it is. that's certainly something we're going to see right now it's draft kings and fan duel leading the pack, but i think the product's going to
7:24 am
change significantly over the next couple of years. >> i think so, too it's going to be, as i say, engagement while the games are happening as well. >> yes. >> what's left who's left how many dance partners are around when do the states -- it's still very rare. new jersey, if i leave new jersey and try and do anything, it's impossible. when does that actually move forward where it's going 50 states, don't you think? i don't know, who wouldn't eventually do it >> we're with you. so right now 23 states have legalized online sports betting. only 6 have legalized online gaming, betting on slots, black jack, bakarat. we predict by 2025 roughly 75% of states will legalize online sports betting and then the igaming wave will come after that so the market last year combined online sports betting and igames
7:25 am
was a billion in terms of revenue. 2025 is 18 billion and we get to over 30 billion in 2030. obviously with the state deficits we think that's going to push forward a lot of states that have been hesitant. new jersey, pennsylvania, greatest cases for good tax revenues and job ops. >> so caesar's at this point with william hill, how long does draft kings stay how long do draft kings, fan duel, they stay -- i mean, sooner or later you would think there's going to be tieups across the board, even new companies. i think that digital companies are figuring out even more interesting ways to take advantage of this trend. >> sure. the ways to connect to the consumer, you have the omni channel approach that's what mgm, penn national, caesar's are doing where you can bring the player back to one of
7:26 am
the casinos that they own in a bricks and mortar fashion. then you have the media tie-ups with foxbet, cbs, william hill, espn structured a deal with caesar's and with draft kings and you have nbc with points bet and then the final way is really just kind of a marketing blitz, and that's what fan duel and draft kings have done. now what they're doing that we think is also smart is they're sponsoring teams so the giants are now sponsored by draft kings so when you watch a game or eventually go to a game, you will see their advertisements all around the stadium it is an arms race right now 9 early winner are the daily companies, draft kings and fan duel who spent 500 million in ad revenue over the last five years. we're going to see market share really start to fragment going forward, bar stool just launched their app last week
7:27 am
they went from nowhere to about a 10% market company in pennsylvania you have caesar's, william hill, cbs that will be very successful we're forecasting 11% market share for that company. >> so the pandemic helped or hurt i can't figure it out. people were so excited the pac-12 finally decides i mean, there's like -- i can hear fireworks going off, excitement in a lot of those fan base of those schools. i don't know whether -- i'm not sure it hurt, did it it hurt near term but it may have helped long term. >> well, we think it definitely helped as you've noted, it certainly helped the stocks. you know, when we look at a company like draft kings, we compare their growth, which will be 30 to 50%, to some of the big u.s. consumer internet companies and the sas companies. when we look to value these companies we're no longer looking at cash flow mp now we're looking at sales as you
7:28 am
would a software company it helped from that perspective. the only area it hurt is obviously las vegas. you have the drive in business from california. they're capped at 50% occupancy. it will take a long time for conventions and sporting events and concerts to come back to las vegas. caesar's has 55% exposure to las vegas. we think what they're doing today is smart to tap into the online gaming growth. >> thanks, chad. it reminds me when you're pulling out of a rent a car place, you can't back up because of those spikes. my money comes in there's no mechanism for it to come back. have you noticed that? it just goes in, to draft king it goes in, more has to go in, a little more. i'm willingly doing it i'm paying for entertainment we have to go. >> thanks, joe. >> that's what i'm dealing with. it's okay. it's not that much it's not that much it's fun thanks we'll see you later. i think that's the business
7:29 am
model, becky they're there -- >> yeah. >> -- to earn profits that come in and they do >> nobody ever accused you of being a quick study. >> no, that's right. i never heard that. >> i'm losing money. let me give them more. >> look at the skyline of vegas. they have an ieiffel tower. >> somebody paid for all of that yeah when we come back, how the owners of small businesses are managing through the pandemic. sharon epperson will join us with some exclusive, interesting data on this front. then mohamed el erian joins us to set up the market week ahead. looking good so far. green arrows across the board with the dow implied to open up by 333 points. "squawk box" will be right back. that's what my dad does. good job, michael! ok, lindsey now tell the class what your mommy does... my mom has super powers. it's like she can see the future. what?! it's like she time travels in a rocket ship. that's cool!
7:30 am
and then she comes back saying "try this" or "try that." she helps everyone. she helps them feel less worried. wow! mommy, so what is it that you do? i'm a financial advisor. she is! aig proudly supports all the professionals taking care of our financial futures. ♪ ♪ "hmm's and ahh's" heard in-call. ♪
7:31 am
7:32 am
the pandemic has created many unknowns including who would run your business if you became sick with the coronavirus and how can you sell your company if you need to in the
7:33 am
middle of a pandemic sharon epperson joins us with more on how small businesses are managing through some tough issues during a crisis hi, sharon >> hi, joe yeah, very tough times for many small businesses new data from wilmington trust exclusive to cnbc finds nearly of 60% of small businesses have maintained that going forward. for some entrepreneurs, that may mean working remotely or better communication with their employees and for others it could be creating a plan for what would happen if another unexpected event impacts their business adrian fudge's small business serves food to those in need. >> we provide meals for senior citizensnd disabled vets throughout new jersey. >> but losing a loved one made her think more about her future and the future of her business >> with the passing of my father, things have been brought
7:34 am
home very quickly and i realize not only do i need to put things in place for myself, i need to put things in place for my employees because life is short. >> she says working with a nonprofit organization that connect entrepreneurs with financial advisers has helped. you're putting your livelihood and often for people their largest or second largest asset at risk by not thinking about all of the what ifs. >> reporter: many small business owners never plan for who could own or manage their business if they're unable to do so. and a recent survey found only half of those that do have those plans in place are highly confident that their business will be able to survive. >> is your plan documented somewhere? have you expressed your plan to other people, specifically those that are named in the plan have you taken the time to prepare snem and have you revisited your plan to make sure
7:35 am
it still meets your current circumstances? >> reporter: adrian fudge says she'll have her sister run the catering company if she can't do so and she plans to bring her small team up to speed soon on that plan as they continue to drive the business forward, joe. >> sharon, minority women-owned businesses particularly hard hit during all of this how have they dealt or how would you deal with succession planning >> what's interesting in this new data from wilmington trust's business outlook, they're saying minority business owners are more positive about finding some aspect of the pandemic that they have managed through that they're going to continue going forward. they're more likely to say that than non-minority business owners what's interesting though when it comes to women business owners is what aspect of that getting ready for what could happen if they are doing right now. women business owners say they're not as confident as men in terms of having an ownership
7:36 am
transition plan but they're actually more confident than men in having a management transition plan. the issue is you need to have both aspects of that if you are planning for something that happens to your business the reason why it's so important, bill johnson and marguerite weiss said it's important to have all of those aspects to grow, scale, exit your business, get greater access to capital from investors and perhaps be able to get a profit when you sell that business >> hard to do, sharon. >> it is hard. it is hard. >> that's like life insurance. i don't want any life insurance. >> no one wants to think about it right. >> no, i don't. >> seven, eight months ago no one wanted to think about this, right? >> i know. >> we need to plan ahead personally and for our business, absolutely. >> you're right. >> it's useful and we need to emphasize that thanks, joe. >> thanks, sharon. by the way, cnbc and acorn are teaming up with the kauffman
7:37 am
foundation on september 30th yeah for more info and to register go to town hall.cnbc.com. "squawk box" is coming right back ♪ everyone wakes up every morning to a world that must keep turning. moving. going. the world can't stop, so neither can we. because the things we make, help make the world go round.
7:38 am
we are builders, constantly creating things that make our world cleaner, healthier, and more connected. so that the small moments that help define who we are, and the big plans that make life wonderful can keep on rolling. because while gravity may keep our planet on its axis, it's what we build that keeps things moving forward. so with every turn, we'll keep building a world that works.
7:39 am
7:40 am
> welcome back, everybody. watching the market, the futures are indicated sharply higher the dow futures are up by 355. s&p up by over 42. nasdaq indicated up by about 190. joining us to talk about this is allianz chief economic advisor mohamed el erian good morning good to see you. >> good to see you >> i don't know why the futures are up so sharply this morning i'm not sure why the market was down last week it's hard to kind of pin this on anything and say here's the reason and this is why i can definitely get behind this do you have any answers to this? >> so i agree with you, but think of a very simple tug of war. on the one hand we have lost the
7:41 am
drivers of improving fundamentals, the economic recovery is not as strong and policy it's clear we're not going to get a fiscal policy response and the fed has lost control of its narrative. on the other hand, there is a very deep mentality because there is no alternative to stocks as it goes and because you don't want to miss out yet again. this combination of buy the dip, and fomo, is competing with weaker fundamentals and weaker policy support the big hope, becky, we can keep it range bound especially on the way down hoping that the policy response will improve in the weeks and months forward >> both of those are very sound ideas. the idea that the fundamentals have weakened, we have a lot of rough patches ahead potentially but then this fear of missing out and the idea there's nowhere
7:42 am
to go. which is the right side? what should investors be listening to a little more loudly these days? >> i've got a "financial times" article coming out on this the analytical side said ultimately fundamentals matter the behavioral side said this market has been conditioned so strongly to buy the dip that it's hard to resist those technicals i think it really depends on your balance between being a tactical investor or strategic investor if you're tactical, this is wonderful for you. if you are strategic, you have to take a view for a long time i have found that fundamentals matter the most >> that could explain the difference between what you hear from a lot of people who have been doing this a long time, watch the markets, get very concerned about this and some of the people who have made the best names for themselves have been very concerned but they've been wrong for a while here. >> oh, absolutely.
7:43 am
i've been wrong. in july i stepped back from the marketplace just too worried about the fundamentals we're learning, it's really hard to solve for an economic recovery that needs to be strong and can be strong, public health and individual freedom if you're china and you can assume away individual freedom, it's easier to solve we've seen china bounce back if you are europe, the u.s., it's harder. i am in the u.k. and i can tell you that the u.k. is starting to worry about a double dip recession. we're just out of a recession. this is really hard right now to navigate through the three competing claims >> yeah. i guess on the other side of things, momentum is great and it works really well until it doesn't. it can go away for no clear reason and sentiment can change in a heartbeat >> yeah. you know, the image to have
7:44 am
there is you're building a sand hill on the beach, and you build it, then you start adding sand at one point it is a few particles that change the shape completely and you can never tell when it is. that's what makes it so hard and i really sympathize with how hard this situation is the most important issue for investors is to avoid non-recoverable mistakes most mistakes are recoverable. it is non-recoverable mistakes that are problematic that's about default, capital impairment make sure there's a balance sheet behind whatever you invest in that's the one mistake that time will not heal. >> mohamed, the one thing i would say is if there's a covid vaccination that comes quickly and is approved and gets out there, i think people's sentiment would swing so far towards the positive and so quickly as you think about all of the businesses that have struggled maybe finding their
7:45 am
audience again >> oh, absolutely. if we get this vaccine, then there will be a complete change, but most of the medical professionals say realistically by the time it is confirmed, it is distributed and you get herd immunity, you're looking at nine months so there is that uncertainty element in it, and are you willing to bridge for that long? because you don't know how much damage may be created. but i agree with you if we can just solve the vaccine, we take the public health issue away from it. solving for economic vibrancy, we know how to do this and we do it really well >> yeah. mohamed, thank you great to see you we will talk to you soon >> thank you, becky. >> joe >> thanks, beck. coming up, we're going to talk tech, stocks with henry blodge
7:46 am
blodgett and a programming note, get ready for delivering alpha on wednesday. back for a tenth year. go to deliveringalpha.com to learn more and register. 'lbeig bk. on tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.
7:47 am
i can't wiat to share at&t's big 5g news... (shouting through the glass) at&t has nationwide 5g? yup! and that's faster? faster, yea! but is it reliable? ah huh and secure! you should consider making a big deal about it! bigger? i said bigger! oh, big-bigger deal bigger than what i'm doing? it's not complicated. a 5g network needs a 5g device.
7:48 am
now everyone including existing customers can get a free samsung galaxy note20 after trade-in.
7:49 am
...i was just fighting an uphill battle in my career.
7:50 am
so when i heard about the applied digital skills courses, i'm thinking i can become more marketable. you don't need to be a computer expert to be great at this. these are skills lots of people can learn. i feel hopeful about the future now. ♪
7:51 am
joining us now with the -- it says the latest headlines in the tech world we can do that, henry. we just need to know how to think about these headlines, i think. henry blodgett co-founder of insider, inc
7:52 am
i was thinking about this whole tiktok thing, henry. we seem far apart. where china is and what they're willing to do and what the trump administration is willing to accept, we just seem really far apart. i don't know how it works itself out. you know what controls everything, the big green controls the end this tiktok is valuable and it's not going away both sides will be able to declare victory somehow, don't you think, when it's all said an done >> yes that's been the objective from the beginning. big, splashy announcement. tough on china work through it. declare victory, go home i think you're right unplugging tiktok for the united states, huge implications here and huge implications here for u.s. businesses in china i don't think anybody really wants that.
7:53 am
>> do we take solace or feel cheap? when it comes down to brass takes, we don't want to shut it down we'll work with the chinese even though they're communists on figuring it out. is that good >> i think a lot of people are actually applauding this administration's stance on china in general which is which is, come on, look forward to a more equitable arrangement. becky and senator cruz were talking about this in the interview earlier, it's just the rapid changes of policy and the impulsive new edicts are so hard to react to as businesses. i think what would be very helpful for the business community is a longer term policy where we really sort of set so set out what we're trying to do with china what's tough is the swift, immediate changes that we're
7:54 am
seeing >> if we based our decisions on what's right in the world, we would probably not deal with china and a lot of other countries in terms of human rights so we kind of have to comeau price our own morals, don't we, to do it but we will because we need trade. we live in the real world, henry. that's the deal. >> we live in a globalized world and i know there is a movement, certainly the administration talks about making it america first, going back, you're going back hundreds of years at that point and so i don't feel it is reasonably imaginable to decouple from china which is what the administration is talking about. getting to something that is set, that companies can adapt to, that they can get confidence will be in place for a long time is good. it's going to involve compromise as it already has and it will
7:55 am
going forward. >> do you think that we needed to worry about our youth being influenced by what happens with the ccp and how they infiltrate our youth's minds through tiktok people believe that. china does do some stuff that, you know, we would -- if we knew the details of a lot of what goes on, we'd realize the communist party is alive and well and the one that we think about from years ago >> well, i think a lot of parents were worried about other influences when tiktok first hit the scene. that was a distant concern relative to the actual content i think senator cruz this morning with becky made some very strong allegations about what ccp and china are doing or at least can do with tiktok. they could monitor your e-mail, they could monitor your phone calls, everything you're doing i would like to see some evidence of that unfortunately, the administration has made so many
7:56 am
statements that have not been credible that it's hard to say that's going on. at the same point, you step back and the u.s. has a pretty amazing surveillance network itself all around the world. then you have to say, what's okay for the u.s. to do, what's okay for china to do it's certainly reasonable and certainly some of the actions that have been taken with the semiconductor companies and others would suggest that there are serious issues there again, it's tough to have faith in it. >> okay. palantir is coming we have 45 seconds, henry. a reflection of how great we are at developing new tech companies or is there some froth in the tech arena right now >> well, we are still great at developing these enormous tech companies, which is wonderful and i hope that whatever we do with policy going forward we continue to enable that and encourage that, but i think it's interesting that palantir is doing a direct listing
7:57 am
i think that makes sense companies continue to leave so much money on the table in the ipos because of the pops big company. exciting a lot of investors are excited to have access to another company that is growing and seemingly has a good future. the range of equities that public market investors can invest in has shrunk so much that it's exciting to see a big, new company. >> henry, thanks got out just in time now i've got to go. coming up, senator chris coons will join us with the latest from washington and another round of stimulus maybe.
7:58 am
7:59 am
8:00 am
futures pointing to a nice gain nice higher open as the bulls try to break a four-week losing streak up 360 points. you can see on the dow, uber winning a big court battle and the shares are rising on the news plus, 2020 has been the year of the spac citigroup's global co-head of m&a is looking at the long term implications as the final hour of "squawk box" begins right now.
8:01 am
what are we saying here? wasteland. >> i think it's a reference to tiktok. >> good morning. welcome to "squawk box" here on cnbc they said that about us when we were teenagers, becky, right we turned out okay i'm joe kernen along with becky quick. andrew is off today. u.s. equity futures indicated up 358 points, 356 points on the dow. nasdaq indicated up 190, 200 points right now the s&p up 43 and change treasuries are below .7 on the ten-year but not at .666 at least they weren't .671 could be by the next time we look at it. >> very close. got to watch the ticks meantime, here are some of the stories investors will be
8:02 am
talking about today. a judge has blocked the order from the trump administration that would have banned tiktok from being downloaded from u.s. app stores this gives bytedance more time to get approval from the u.s. and chinese authorities from a deal with oracle and walmart. shares of smic fell in asia trading overnight. the drop followed reports that the u.s. is imposing restrictions to get an export license to sell certain equipment to the company and uber shares getting a boost this morning after the company won the legal fight to continue operating in london. a judge overturned the band on the ride hailing app london is uber's largest market in europe. joe? >> all right now to washington. in a flood of big headlines coming out of the nation's capital, eamon javers is out with a different shot. out and about. that's good. >> light out now, joe. >> not a green screen? >> no, this is actual green street right here. yeah, look, there's a lot of
8:03 am
news going on in washington. let's start with the supreme court nomination over the weekend. the president, all the speculation was it was going to be amy coney barrett and that's who the president did select in her remarks as the president unveiled the nominee her views are close to antonin scalia she made this promise. >> if confirmed, i would not assume that role for the sake of those in my own circle and certainly not for my own sake. i would assume this role to serve you. i would discharge the judicial oath which requires me to administer justice without respect to persons do equal right to the poor and rich and faithfully and impartially discharge my duties under the united states constitution >> reporter: now, joe,
8:04 am
republicans say they want to move ahead with this starting hearings as early as october 12th potentially wrapping all of this up before the election even takes place to the frustration of some democrats who at this point don't seem to have the votes to be able to block barrett from the supreme court but, of course, anything can happen once we get into these hearings so we'll wait and see how that unfolds meanwhile, that sets up the tension for an absolutely dramatic week this week. we're going to see that first presidential debate between biden and trump tomorrow night we also have a deadline for a continuing resolution and speaker of the house nancy pelosi said yesterday that democrats are working with secretary mnuchin, the treasury secretary, to try to come together with a covid stimulus bill before the end of the week. she said the democrats have their own bill at about $2.4 trillion they might put that on the floor this week for a vote she'd rather strike a deal with republicans and something that would get not just democratic votes but actual republican votes to pass this thing she'd rather have that negotiation and a deal this week
8:05 am
than a democratic only bill. we'll see where that one lands as well. the negotiations so far just haven't been able to move the needle they're trillions of dollars apart in terms of the overall number in spending so it doesn't seem like there's an obvious way to get to a solution here. the speaker of the house was making some optimistic noises on television yesterday >> yeah. body language and ulterior motives and everything that goes on in washington, eamon, i'm not sure how to gauge things there are many who say -- i think senator cruz just said it, they don't want to do a deal on that side because it would help trump. there's a lot of republicans that don't want to do more because i think it's -- >> what's been so stunning about this, joe -- >> where's the aggressive middle that wants to come together and do this? it's like mnuchin is the only guy really >> reporter: look, what's been so stunning about this to me is it would seem politically if you
8:06 am
just boiled down the raw political incentives here, it's in the president's interest to get a massive stimulus bill and take credit for it say look what i did and keep a lot of americans from losing their jobs, from those furloughs becoming permanent, all of that economic and family pain that you could stave that off before the election as a president running for re-election you would think that is right he has been reluctant to go too high in terms of the number. >> schumer and pelosi will stay at 2.4 trillion knowing they will deprive trump of being able to have that press conference you talked about. >> reporter: right the political question that's fascinating, will be debated for years, joe, why isn't the president out there twisting senate republican arms.
8:07 am
they have controls the republican base. a lot of them are running for re-election. they need the republican voters. if the president was out messaging this and privately twisting arms, he could get it done he hasn't done that. >> eamon, thanks leave your ifp in, eamon i don't know what you have to do, but senator coons is coming up meanwhile, let's see what senator ted cruz told us about. >> i think we should be passing something right now. we should be focused on economic recovery on getting businesses open again. i introduced legislation, the recovery act, cutting taxes, cutting regulations, cutting liability protection for the millions of small businesses right now opening their doors.
8:08 am
we want them to thrive and prosper and succeed. that's what we ought to be focusing on instead of cynically leaving people who are hurting >> joining us, senator chris coons. >> still showing up every day. how do you do it >> i'm in wilmington, delaware this morning, but i am showing up for work every day that we're in session. >> still your job. >> i hear from delawareians say they are eager for us to do a bipartisan deal.
8:09 am
>> since they passed four months ago, mcconnell has been out of the negotiations and as long as it was secretary mnuchin, i thought they could reach a deal fairly quickly mark meadows, president trump's chief of staff, has been in these negotiations for months saying no, no, no, no, no. there are three key elements that democrats are looking for speaker pelosi has come down $1 trillion from the bill passed by the house. mcconnell put a bill on the floor a few weeks ago that was a few hundred billion. we have an imminent collapse coming in terms of the rental markets so i support money for renters and landlords.
8:10 am
there have been a million and a half people laid off laying off police officers, firefighters, nurses from public employment in the middle of this is a terrible idea the airline industry needs an extension of their particular provisions there's a lot of different things we could and should do together i taken couragement from the c.a.r.e.s. act six months. small businesses.
8:11 am
>> why do you think mark meadows who was the president, chief of staff, what do you attribute the intransigence to is it -- i mean, 2.4 trillion is a long way from where the republicans want to go and we can always blame both sides with the finger pointing, but do you think pelosi would ever go to a trillion and a half? would she go below 2.4 maybe there's somewhere to meet there. >> in the '08, '09 and the financial crisis turned into several years of people losing their homes, losing their businesses the impact in terms of people's
8:12 am
desperation. bankruptcy and relocation within our country. all of us who come to washington do so because we want to make a difference and making a difference is the art of compromise frankly, my hope is that we can do this now because the cost to the american people is just going to get greater the longer we put it off. yes, it's a huge amount of spending, but it's only because of that cares act that we passed six months ago that we are not in the second great depression this is why we have a federal government in some ways is to respond to natural disasters and in this case human dissast joer. the flawed and failed. it's now produced a recession. we have to come together to strengthen it through the pandemic and strengthen the economy together >> yeah, the entire globe is dealing with it, senator, in a slowdown globally obviously.
8:13 am
let me just switch gears quickly. i don't know how i'd characterize the kavanaugh hearings you were there maybe in hindsight you think differently about what went on back then you -- i remember you were -- would you meet with her >> the pandemic.
8:14 am
the relief is passed i think it's important for the american people to hear questions of judge barrett, about her publicly stated views. i'll remind you, joe, 100 million americans have pre-existing conditions. 7 million more with this pandemic and. there's no replacement plan to me to strip away health care and health protections from a majority of americans in the middle of a pandemic >> you heard what senator cruz said the republicans want to keep pre-existing i'm always nice to you i hear -- >> how >> you have a really nice --
8:15 am
>> you have a son named mike, handsome young red head. i understand he's a good guy i'm not sure you want to go. that last kavanaugh thing, senator. >> i think the kavanaugh confirmation hearings and process were sharply divisive for the country. during the first round of those hearings, i really focused on
8:16 am
judge, now justice kavanaugh's views of executive power he's a brilliant jury list i've known him since we were there. he has views well outside the mainstream on the power of the president to reach down and control executive branch agencies that are currently independent. that was my main focus the judiciary committee as we consider someone very little time to look at the record and background. >> we hear different stuff from the other side
8:17 am
i understand what both sides said need to get their points across. we appreciate their time >> great thank you. steve mnuchin is among our special guests thanks, joe. joining us on california zero emissions car push that stock is dropping as the company put the covid vaccine trial on hold while he answers questions from the fda dropping is putting it mildly. that stock is down by 32% this morning. stay tuned you're watching "squawk box" here on cnbc
8:18 am
♪ ♪ ♪ ♪
8:19 am
8:20 am
welcome back, everybody. the governor of california recently signed into law what some may call the most aggressive clean air policy in the nation the executive order bans the sale of all new gas powered cars and trucks by the year 2035.
8:21 am
joining us right now with reaction is joe pitrowski. he is senior advisor for yes way. it's the fastest growing convenience store provider he was the ceo of cumberland farms and gulf oil your concerns on this are immediate. obviously given your back drop with running convenience stores and growing convenience stores, what will this new law mean for those convenience stores in california >> well, thank you, becky. i mean, immediately it's going to destroy all of the convenience stores in california ironically, it will improve the position of convenience stores in oregon, nevada, arizona on the border, but there are 100 to 150,000 people employed in the california convenience store industry today, and those businesses will in effect be ruined, which is extremely
8:22 am
disturbing really this action was way too radical, typical of most politicians using the petroleum industry as the boogie man when in fact california's problems are four fold. one, they have an electricity problem. switching a considerable amount of the 16 million cars in california to electricity will double the amount of electricity needed in the state of california with already the highest rates in continental united states at 18 cents a kilowatt, which is twice the national average require more power lines, which have been extremely destructive and probably a major cause of the wildfires in california. and they're all going to be overhead so that's a real problem. california's other problems are
8:23 am
water and deforestation. i mean, listen, part of our problem in c o2 is we now have grown the population in the united states to 330 million people and 7.5 billion worldwide so growth alone causes an increase in greenhouse gases, and especially in california, which has had a lot of deforestation, because they have the most valuable agricultural land in the united states as well as our urban migration -- our migration westward since 1945 it's just devastated the amount of acres, and ironically to put it also in perspective, 6 million acres that were burnt out west put more c o2 into the atmosphere by a sector of six
8:24 am
times than all of the cars in california >> what would you do to try and address it. >> there's a program to plant trees. they're not only attractive but carbon sent. it's the most inexpensive way to remove carbon from the atmosphere i would get rid of my bias on evs. we measure pollution by tailpipe emissions, not total emissions
8:25 am
remember, 53% of california's power comes from natural gas and that will be more on the dabble canyon commission in 2025 and pao verde sometime in the late decade, maybe 2028, 2030 depending on what pg&e wants to do. >> thank you, becky. >> thanks, joe joe, over to you >> okay. thanks coming up this mniorng, stocks
8:26 am
to watch "squawk box" coming right back aflac! now tell me, what does aflac do? aflac pays you money directly to help with unexpected medical bills. and is aflac health insurance? no, but it can help with expenses health insurance doesn't cover! that's right. are there any questions? -coach! -yes? can i get one of those cool blue blazers? you know i can't play favorites. alright let's talk coverage. it's go time! get help with expenses health insurance doesn't cover. mmm hmm! get to know us at aflac.com but we are hoping things will pick up by q3. yeah...uh... boss: doug? sorry about that. umm...what...its...um... boss: you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.
8:27 am
everyone wakes up every morning to a world that must keep turning. moving. going. the world can't stop, so neither can we. because the things we make, help make the world go round. we are builders, constantly creating things that make our world cleaner, healthier, and more connected. so that the small moments that help define who we are, and the big plans that make life wonderful can keep on rolling. because while gravity may keep our planet on its axis, it's what we build that keeps things moving forward. so with every turn, we'll keep building a world that works. still to come. global co-head of m&a.
8:28 am
still to come. tic. no. in the basement. why can't we just get in the running car?
8:29 am
are you crazy? let's hide behind the chainsaws. smart. yeah. ok. if you're in a horror movie, you make poor decisions. it's what you do. this was a good idea. shhhh. i'm being quiet. you're breathing on me! if you want to save fifteen percent or more on car insurance, you switch to geico. it's what you do. let's go to the cemetery! for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing
8:30 am
or to give the gift of stock ownership. schwab. own your tomorrow.
8:31 am
8:32 am
welcome back to "squawk box. let's get you caught up on some stories investors will be talking about today. there is some deal news out there. devon energy is buying wpx energy in an all stock deal. it is a combined company for $12 billion. both stocks are up by 12% this morning. caesar's says that it is in advanced talks with william hill on a $3.7 billion takeover offer. that deal would give the casino operator full control of the u.s. sports betting and online gaming joint venture william hill town by 12% this morning. caesar's shares up by 2 3/4 percent. there was a competing bit by apollo amazon is announcing prime day will take place on october 13th and 14th this year the annual event has been postponed as the company dealt with high volume strain on the warehouses and logistics networks during the height of
8:33 am
the pandemic joe? >> yeah. just looking at that devon/wpx deal both of those stocks just crushed. i guess we're talking enterprise value because that's not -- it's a merger it's kind of an acquisition by devon. devon is worth three and change and wpx is worth two and change. 12, there must be a lot of debt in there sounds bigger but it's both stocks have been hit so hard with the pandemic that it's almost like they need to get together shale has been decimated m&a has been down but they've seen an up tick in the rise in spacs. joining us for a look at m&a, mark schaeffer citigroup co-head of mergers and acquisitions can you just give us a quick rundown on what you think has
8:34 am
caused this really i mean it's a real influx of something that we've always been around but what caused it to become so popular, mark, in your view and what do m&a guys think i bet you don't like it that much >> $83 billion worth of these spacing transactions are m&a in effect you have highly volatile markets in a spac transaction, you have to put transactions out. shareholders do have some serious projections around it. we have a shareholder vote, we have redemption rights in effect it's the combination of that and, you know, a more prominent group of sponsors, more institutional equity, broader range of institutional equity even in the larger transactions where pipe deals come in to help
8:35 am
supplement it, in some respects it's sort of matured in a way. i think, you know, it doesn't hurt the m&a market because they have to buy companies. >> right do you get the feeling -- what do you think the -- why do you think it gets a -- sort of a negative wrap or negative connotation at this point? >> you know, look, i mean, you know, you hear things about the size of the promotes, you hear things -- that sort of stuff but i think, look, a lot of that -- i'm a big believer, you have sophisticated investor base. it's about disclosure. this is not sort of an unsophisticated investor coming into these things. as long as disclosure is appropriate, we know jay clayton at the sec is paying attention to, i think it's -- you've got sophisticated market of buyers and sellers. so i think it's okay it doesn't really trouble me in
8:36 am
some of the disclosure we've seen as i say, with the protections to investors, as i mentioned, redemption rights in the shareholder piece, i think it's at the back end. they don't like the deal, they can get out or vote it down. >> the amount of fed action, zero interest rates and global milieu that we find our self in, we've seen a lot of dislocations from previous markets. >> it's done a lot to, as it were, prop up the markets. we do correlate to the stock market or the public markets m&a volumes will lag typically about six months so, yes, joe, there's a real risk of that, i think
8:37 am
i don't know -- i think that's generally true for the uptick in m&a and spac and ipo i don't view them as spac product differentiated in any way. the shocking thing to us is given, as you mentioned at the top of the show, the recovery in volumes, you know, we're running last four months on a monthly run rate basis in m&a at 40% higher monthly run rate pre-covid. there's something going on here, particularly if you look at how the real economy is doing. on the other hand, in spite of china trade, in spite of an election, it's as busy as i've seen it in quite some time. >> that's not liquidity, that is based -- you think now the fundamentals are catching up with that? >> look, i'm not -- i'm not a macro economist. i'm not smart enough to make that judgment but, you know, i can only tell you that a lot of the deals are strategic.
8:38 am
we had clients that in may and april were essentially fixing balance sheets, pulling down liquidity but at some point it's going on for a while hopefully we don't get a major second wave. it will go on for a while. the balance sheets, i can't wait forever. if something becomes actionable, it's been on my priority list, i'm going to trans acts. >> right >> you think that it's onward and upward from here even at these valuations that's another thing i don't really understand. who's the strategic buyers here? >> here's what's interesting if you look at the data, valuations, this is on a multiple ebitda basis they're down kshlg bring so in europe a little less so in the u.s. premiums are down as well so when we talk about, you know, the question -- the real question in my mind is sustainability and can it sustain if we go into another lockdown or if there's a second
8:39 am
wave of this because when i think about the other side of the ledger, bankruptcies are way up we know what's happening on main street and that is troublesome. so i would say it's that much wider. that needs to be factored in >> i don't know, joe i don't know where it goes if it continues like this, if not, we could end up with a significant downturn >> what do you think jay creighton looks at what would be something that would cause concern going forward? >> you know, i did see that the sec is taking a look at disclosure i think that's totally appropriate. you want to make sure that the facts are reasonably laid out and that there's nothing in the prospectus documents that are not completely transparent and
8:40 am
clear. i think most of us, you know, that are in this business, you know, applaud that we want to see transparency. as i said before, it's about putting together, you know, sophisticated buyers and sellers and as a result the documentation is appropriate >> mark, thank you >> thanks a lot, joe >> i'm glad. so spacs are good for you. you're at home but you're in a great mood. >> better than i have been since may, i can tell you. >> appreciate it thanks see you again soon all right. becky? >> thanks, joe. still to come this morning, details on a new diversity in the workplace report, plus shares of virgin galactic ju jumping this morning as they initiate that with auy b rating. the analysts will join us when "squawk box" returns stock slices.
8:41 am
for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more.
8:42 am
at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow.
8:43 am
welcome back to "squawk box. this morning up 370 now on the dow jones. s&p up over 46 nasdaq now up more than 200. the s&p leaders that we're seeing this morning, we take a look mack gets out of the way devon energy, national oil well, american airlines. healthpeak properties and marathon petroleum gaining almost 4%. becky? >> thanks, joe. a new report this morning on
8:44 am
diversity in the workplace seema mody is here. >> good morning. a new survey from pwc shows while a majority of board directors believe doing more to promote diversity, only 39% think tieing executive pay to diversity goals should be embraced as boards become more diverse, male executives have not become convinced. they believe their belief has waned. what's stopping companies from adding more women and minority candidates from the board, 47% of male respondents said lack of qualified candidates chipotle's chief isn't buying that argument. >> what i don't buy is they need specific experience in these industries i think knowledge and experience is transferable. so if a board and/or a company can commit to ensuring that at minimum, and much like we did
8:45 am
when we were building out our organization, at minimum you'll have one female and one person of color on your final slate of candidates, i think that will really work. >> reporter: chipotle has increased leadership at the senior level by 15% in the last 2 1/2 years, becky. >> seema, a couple of questions out of that. what the pwc survey said is almost 50% of the male executives said the same thing charlie sharp is in so much trouble for saying, they don't think there's qualified candidates out there. >> reporter: such a great question marissa said one of the initiatives that ceo brian nichol introduced earlier this year was having a meeting with his direct reports including marissa every monday morning in that monday morning they welcome employees to come in and
8:46 am
share diversity whether good or bad. these types of programs allow the ceo and board to think of diversity and inclusion on a regular basis versus issuing a press statement, hiring someone of a minority or a woman to their board and saying, all right, we're done. making sure it's something they constantly think about to your other point of male candidates not seeing the benefits of diversity, it's a great point that a lot of people say whether there is a quality pool of quality candidates available, that has met a lot of sharp criticism. it's certainly something that needs to be addressed over time. >> seema, thank you. good to see you. shares of virgin galactic up sharply. bank of america with the buy rating and a 35% price target. the company's divergence is unparalleled this gives it a market leading position joining us the analyst behind the note, ron ep stein
8:47 am
a research analyst at bank of america, b of a securities must be hard to be an analyst for basically a market that is expected to come about but there are no guarantees. there will be leisure travel to space in your view, next year, ron? >> i think so. the commercial space right now is one of the most exciting areas in the aerospace defense universe we've really hit a turning point. space was the purview of government contractors, defense contractors and the government but with spacex, virgin galactic and other companies leading the charge with virgin galactic, yeah, sure they're going to launch the commercial business, officially open it up for commercial service early next year with their first customer will be sir richard branson. we're expecting that either in q1, q2 of next year and then away we go if you look at the backlog, they
8:48 am
have over 600 reservations where folks have paid deposits, meaningful deposits, 80 to $100 million of deposits. beyond that with smaller deposits, they have 8,000 reservations so now when you think about space tourism, you've got to think about it from the perspective of climbing everest and other things like that it's experiential, so on and so forth. yeah, we do believe it's there the technology has got skren tea point where you can see that happen you're seeing it across the board. virgin's particularly interesting because it's one of the only -- it is the only publicly traded way to play the commercial space trend for public equity investors. maybe others will come along down the road but it's the way to do it now i think in the backdrop of an aviation environment where the air lines are cutting numbers, we've talked about boeing and others, this is one area that's a potential bright spot.
8:49 am
is it early? yeah is it technology here? yeah i think on a go forward basis, you know, looking into next year and beyond, it's an exciting place to be. >> why is it so great that it's vertical integration is almost complete and unparalleled? why does that derisk the business i don't have to depend on -- >> sure. when you think about what they do, you know, they build the spacecraft they build the engines they do thesystems on it when you think about everything from an operating perspective, a safety perspective, a cost perspective across the board in a market that's as bespoke as commercial space and space tourism, they're really leading the charge i think it's just one of the things we look at in terms of, you know, will they really be able to do this? yeah have they done it? yeah it's an important factor. >> they've done it twice, right? and, i mean, it's not -- you do
8:50 am
acknowledge it's high risk, right? an accident could set you back a ways in a lot of different ways, god forbid. >> to be clear, space travel isn't without risk the way they would like to do it, they'd like to do it and do it in a way that is safe as possible virgin galactic the way they want to do it, their system and their set up, i think is probably as safe as you can do it but, again, joe, i think you have to think about it if you want this life experience and you're willing to, you know, take some risk and i would say probably smaller risk in terms of a major event i mean, there could be some small events people climb everest all the time >> yeah, i know. i'm thinking, i'm thinking imax for me, space flight, imax, you know, the big screen and maybe
8:51 am
have the chair shake a little or something. that's me. i'm wrong, i'm a coward. i'm a coward >> it is what it is. but you just want to do a different experience >> i'm setting a target on imax with a double because that's where i'm going to go travel to space. thank you, ron >> take care have a good day. >> i'm kidding but you know what i mean, this is a whole new, a whole new vista for even think about space tourism. >> it's super, super exciting place to be. >> it is, you're right going to imax. i am thank you. coming up, stock ideas and names you might want to buy amid recent volatility and a big event coming up this week and delivering alpha back for its tenth year steven mnuchin and many more visit delivering alpha and learn more
8:52 am
♪ everyone wakes up every morning to a world that must keep turning. moving. going. the world can't stop, so neither can we. because the things we make, help make the world go round.
8:53 am
we are builders, constantly creating things that make our world cleaner, healthier, and more connected. so that the small moments that help define who we are, and the big plans that make life wonderful can keep on rolling. because while gravity may keep our planet on its axis, it's what we build that keeps things moving forward. so with every turn, we'll keep building a world that works. ms. williams: we've been working hard... ms. robinson: ...to make learning fun again. ms. duncan: and making sure our students can succeed. ms. zamora: we're with you every step of the way.
8:54 am
ms. robinson: i know it's a challenging time. ms. zamora: no one wants to be back in the classroom more than teachers. ms. williams: we have missed you so much. mr. hardesty: but we all have to be safe. ms. robinson: because we're all in this together. narrator: making our school buildings safer. ms. robinson: working together, we can make it a great year. narrator: because the california teachers association knows quality public schools make a better california for all of us. welcome back, everybody.
8:55 am
it has been a bumpy september for markets. with the major indexes all in the red for the month. the nasdaq hit the hardest down more than 7%. joining us and some names you might want to buy. jj chief market strategist and stephanie link portfolio manager at hightower also a cnbc contributor. with elco welcome to both of you jj, maybe put this in perspective stocks down and looking at pretty big gainers including the nasdaq up by 8.5%. how do you measure this? what do aiothiyou think of the volatility and what comes next >> natural we have a sell-off and maybe more than what the people thought over the last few weeks. volatility overall i don't think would be any surprise to see as we look at the vix curve out in time and to the election and through the election because we have the mail-in which, you
8:56 am
know, we may not know a winner right away i would expect volatility to continue on that front the one interesting thing i'll say on the technology front if i'm looking at what our clients are buying, last week, actually, apple, facebook, amazon. the tech stocks over all they came back into favor a little bit with some of the names our clients got. >> jj, are your clients kind of leading the way on this? it seems to me they're not chasing trends at this point, they're kind of creating them. >> i would say, you know, the retail investor if you look back in march, they were the first ones to get on board in many cases perhaps the professional investor. they were short of a believer, if you will, right away. and with that, they've had good success. and on the other hand, some of the things they sold, which i think is interesting, peleton, they sold zoom last week maybe a shift away from the stay at home to some of the names that have gotten beaten up over the last three to four weeks >> stephanie, watching this on a
8:57 am
day-by-day basis the names are in favor and the tech names in favor, out of favor. what is the smart move on this >> well, yeah, no, it's been, but what i would suggest is look at themes. the economy. there are pockets of the economy that are doing well and pockets that aren't doing well i'm looking for themes of where the pockets are doing well and that is in housing we just did a million start in new home sales last week that's up 43% year over year manufacturing is also doing quite well in terms of isms and new orders the copper prices are at 36-month high. that's manufacturing and growth is certainly recovering. and auto we're going to do a 15.7 million. that's up from 7.7 million in april. these areas are where i want to be focused on. best in class growth and margins and free cash growth conversion and they have the strongest
8:58 am
growth over production in the group of 6% to 8%. my housing play is stanley black and decker a stay at home and reopen stock, becky. 78% of their total revenue are tools and storage. on the reopen side, 30% of their total revenues is infrastructure they have product innovation and digital capabilities and a billion dollar cost cutting plan to protect margin. lastly, fis provide electronic banking solutions and services and i like it because 75% of their revenues are recurring 75% of their revenues are in the united states and they just bought world pay last year they have cost and revenue synergy upside that protects them as we see the recovery taking hold. >> all good suggestions. jj, when you look at your clients and how much they have in their balances, how active they are at trading, how much cash they have on reserves
8:59 am
how would you say they stand right now based historically >> i would say overall, becky, they have been a little bit more certainly engaged over the last few months than we've seen in quite a while. i think the interesting time we're about to see is over the next month to be honest with you as the quarter ends this week. how do people sort of gun back up if you will, for the election are people more cash or continue to stay with their investments as they are? we haven't seen any evidence of that waning yet but as the election starts to become more serious for people after the quarter ends, that it will be interesting to see if we see a change in behavior often you see people back a little bit, but not completely going out or anything like that. but i wouldn't surprise me to see people pull back slightly and go a little bit more towards cash as we headed right into the election >> jj, stephanie, great to see both of you guys this morning. thank you. >> thanks, beck. >> thank you
9:00 am
okay, beck we have some green arrows. we'll see whether it lasts it doesn't necessarily mean it will last and few things going on this week let's see, we have a debate. we have delivering alpha and chef smith and a job's report. and we got, i don't know, crickets "squawk on the street. see you later, beck. see you tomorrow "squawk on the street" coming up next good monday morning, welcome to "squawk on the street" i'm carl quintanilla coming up the best day for stocks on friday in a couple weeks as we remain on stimulus watch. as joe said, busy week ahead with the debate, jobless friday and tiktok news, as well futures indicating a jump at the open at the stocks look for a second straight day in the green. is the september swoon over?

107 Views

info Stream Only

Uploaded by TV Archive on