500 looking 5 points higher. joe, what a show what a night with the debates and what a show today. >> i like the, you know, the clowns are -- they're insulted because they called it a clown show, they don't think they deserve to be thrown under the bus. you know, it's october and that's a scary month sometimes. >> we have to run, joe i will have alex karp on later today from palantir. becky has the treasury secretary. make sure you join us tomorrow "squawk on the street" begins right now. ♪ good wednesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber. final day of september and the third quarter as futures swing into the green, we watched debate reaction, corporate layoffs, positive news on testing and vaccines, palantir and stimulus and that's going to lead our roadmap speaker pelosi set to talk with

mnuchin again today and we will hear from the treasury secretary in a few minutes at delivering alpha. >> plus palantir's public debut, backed by peter thiel, it will be a direct listing at the new york stock exchange, lots to discuss there. >> and covid optimism, regeneron saying it's treatment cocktail helps in the early stages of the virus and we will talk with the company's co-founder and chief science officer polarity on this hour jim, of course, you have to get the debate out of the way, everybody is talking about that and we're going to hear the argument that if you look at futures and even some of the prediction markets today, there's an argument that the debate really didn't change the broad contours of the race. >> before we got pmi, before we got this little squib from speaker pelosi, the futures were down very big. i was watching dom this morning, it looked like the market would be very ugly and i think that was because of arecognition that there was no way you could possibly have any sort of compromise on stimulus given how much a man who says i am the

party, vice president biden, could disagree i guess the word disagree could be used, he was pretty vehement with the president. david, when i listen to it my thinking was they are so far apart that there's no way that there could be a deal, but obviously hope continues to spring eternal >> well, i think we will have to see what secretary of the treasury mnuchin has to say about it because he does seem to be the other side of the conversation, at least he has been when it comes to speaker flossy unclear what chief of staff meadows is going to do here, he's been seen in some ways as an obstacle despite his optimism weeks ago that maybe something would get closer when you had that draft proposal out of that sort of bipartisan group of congress people, jim but to your point, given the rancor we saw last night it becomes hard to imagine compromise of any sort ever period regardless of who wins the election. >> i couldn't agree more

when i'm listening, i mean, what they're trying to do is destroy each other and it's not -- i mean, to me maybe there are other representatives of the various parties that could say, hey, listen, you know, that was just theater and we're reality, but, carl, i think the idea that that's theater and we're reality should be switched the president's reality and i'm afraid that secretary mnuchin's theater as when we hear becky interview him, i want to know the seriousness of this whole thing. there's so many small and medium-sized businesses that would switch their plans radically if they knew what was going to happen. they go into survival mode rather than a mode which just says, okay, it's business as usual. without any sort of stimulus, do you know what, it's october, you've got to pay your rent. if they're not going to give us money for rent, time to close. pretty simple. >> yeah, so are you -- so right now, jim, are you more worried about the ongoing pressure on small business like we've talked about all week, or the layoff

announcements that we're getting like disney, like shell, like dow today, marathon getting some under way as well. the s&p layoffs and airlines, too, as the c.a.r.e.s. act expires today. >> yeah, i'm very worried because i think that some of this is the fault of the government remember, mr. corbat wonderful was saying 60%, 65% of small business, larry kudlow agrees with a high number and the airline number business is incredibly big, also includes boeing these different ones in the chemicals, i think those are companies that are actually doing quite well so i don't really get why they needed to do the layoffs. but i just think that it has to do with business planning. it's almost as in no one -- i remember george mcgovern who ran for president at one point, he was a senator, said -- he owned an inn if he had owned an inn when he was a senator he would have realized and voted differently i don't think these people understand that you're just going to close there's no sense to be open if

there's no money coming to you so this is a make or break moment for everybody, including the airlines for a huge part of america. david, i think that they are out of touch in washington with what it means to have the cash flow of a diner >> well, who is out of touch let's be fair. the house passed a bill of over $3 trillion in may, jim. >> well, okay, out of touch meaning they can't reach a compromise. >> okay. >> not that somebody has the right number and somebody has the wrong, but there should be some way to get people to be targeted i mean, look, not everybody -- not everybody needs a bonus, right, just industries that are closing. carl, back to you. >> jim, we're going to head to delivering alpha, the treasury secretary with our becky quick >> -- writ large is what's going to happen in terms of another financial aid package? we have millions of americans who are out of work, businesses small and large that are in crisis at this point through no

fault of their own will we see another financial package to aid them before election day >> well, the president and i are working hard on a bipartisan proposal i spoke to speaker flossy several times over the weekend, we had a conversation for about an hour yesterday, going through different aspects of it, and i expect i will come back with her later this afternoon and we will deliver a response so i think we will have a very reasonable response, something that's very similar to what has been the bipartisan proposal that the problem solvers has worked on and i hope we can get something done because, as you said, there are clearly still businesses out there, small businesses, that are impacted. we need more money for kids going to school, we need liability protection for small businesses to open the economy and we're going to continue to work hard to try to get those results to the american people that are impacted. >> mr. corbat secretary, you're

usually pretty even keeled and you are probably the person most in the administration that has reached across the aisle to try to have these conversations although i have gotten the sense lately that you've been a little frustrated, too, i wonder in those conversations with speaker flossy is it more or less contention than the debate we saw last night >> the speaker and i have a relationship which it's all business, i think we're very effective in communicating with each other, in many cases we do have things that we agree on and we have things that there are differences and we're trying to see if both of us can manage a package that gets some of what everybody wants. >> do you think that's likely? because i have to say at this point on wall street most people have written off the idea that there will be any package that can be decided at least not before the election. >> well, i say we're going to give it one more serious try to get this done and i think we're hopeful that we can get something done i think there is a reasonable compromise here, it's something

that the president very much wants to get done and make sure that we help those parts of the economy that still need help so we're going to try to see if we can get something passed. >> even if you do reach an agreement with speaker pelosi, you still have the republicans in the senate who have been pushing back and the demands that they have put forth, the things that they would like to see is a much skinnier package than i think the administration and the white house has put forth. they're looking to spend less than $900 billion. how would you bring those senate republicans on board and have you spoken to any of them? >> mark meadows and i spoke to both kevin and mitch mcconnell yesterday, we went through with them what our thoughts are, you know, let's see if we can get a compromise agreement with the speaker, something that works, and then we will continue to work with both sides to work on all the exact language and the policies >> can you give us any idea of the scope of what is there in

the middle ground? i mean, i think i can gets at some of these things, what's targeted what seems to have bipartisan support? i would throw out things like extending unemployment to some extent and raising that number, maybe extending some money for small businesses, potentially the airlines, making sure that this is targeted information, but can you give us any scope about the things that you've been discussing that you think are likely and that there is common ground? >> well, first let me say all the issues that we worked with the senate on on the trillion dollar deal are in there in many cases we actually have an agreement between the republicans and the democrats on what we want to do, but in certain cases the issue is really about the sizeand scope of how much we want to do. so there are certain policies where we do have differences, but there is a lot of commonality, things like the ppp has enormous bipartisan support, money for schools has enormous bipartisan support, we have

additional direct payments, economic impact payments which has support on both sides, we have back to work credits, we have retention credits so i think there's many areas. you mentioned the airlines, we do support more money for the airlines that's something that's critical to keep our airline workers together >> the airlines have issued a deadline of tomorrow before they will lay off 30,000 or even more employees that come up do you think that there will be any sort of a carveout or that this legislation could get passed before tomorrow's deadline just for that industry in particular? >> i don't think there will be anything on a stand-alone basis. i would hope that by tomorrow we either have an understanding on an overall package that doesn't mean, obviously, there wouldn't be a lot more work to do, but i am hopeful that we can come to an overall understanding and if we do that hopefully the airlines will postpone their actions. i will say i'm very proud of the people at the treasury

department who have been working very hard to close all the airline loans, we got that done, and there's a lot of support we've already delivered for that industry >> have you had any conversations with the ceos of those airlines asking them to make sure that they would hold off on laying off anyone if there looks like there is at least some understanding between the parties? >> i have spoken to all the airline ceos on a constant basis. i think they've done a good job reaching out to both republicans and democrats, and i will be calling them this afternoon and giving them an update on my conversations with the speaker >> based on what you've said, it sounds to me like the two big outlying issues that you would have between the left and the right is the democrats really want to make sure that states see some sort of aid that's begin to them to make sure there aren't traditional layoffs to happen to teachers and firemen along the way, and the right, the republicans in the senate, have said they would like to make sure that they see liability for businesses, make

sure that they are not liable for things that may open by reopening during covid times if they are following the rules, do you think those two issues would be something that would be combined here or would you take each of those out? >> no, we would have to have both of those in it's very important for us to make sure that we have reasonable liability protection, that's both for schools and for small businesses the speaker and i have had discussions on that. we also know that, you know, the issue of money for state and local government is something that there is a divide on, we're going to try to come up with a compromise on that i will just say in the regulations we've already done we've given the states flexibility to make sure that they could use the money they have to pay first responders, firemen, policemen, other people the president doesn't want to see these people laid off. these are critical emergency workers that are really working around the clock to support

ought of us right now. so we will be allocating some more money in a compromised package to pay for that. >> last week i spoke with brian moynihan, the ceo of bank of america, and he said that based on what they are seeing at the bank they believe that it will probably take about five quarters before you get back to the growth levels that we were seeing before the pandemic, gdp growth of 1% to 2% he did say if there was another aid package that was passed he thought that that could move things forward i guess i would ask you what's your expectation for the economy and what's your expectation if there's no more aid that's passed >> well, let me first say i think the economy is doing much better than anybody expected at this point, both the unemployment rate dropping back down to close to 8% is really extraordinary from what had been very high levels in closing the economy. so as we've reopened, i think you've seen a very good rebound. i think you're going to see a very good quarter. having said that, we still have

more work to do. until we get everybody back to work the president and my job is not done, that's something that we're very focused on and i would say that clearly this package will help the economic recovery and i would also say the progress that we're making on vaccines and testing also is going to help the economic recovery the 150 million abbott tests that we have that will be delivered between now and the end of the year and those are mostly going to go to schools, nursing homes and other types of institutions, very, very cost effective, $5 a test, you can do them very quickly, get the response very quickly. these types of advances in testing is really going to create a boost for the economy >> i guess i would ask your outlook for the economy, i mean, it's very hard to try to pin this down at this point because we don't know what happens with covid during the winter months we have had lots of doctors,

including dr. scott gottlieb who joined us today to say that he does think we will see a resurgence of coronavirus cases in the winter here i don't know what that means potentially for businesses having to shut down again. but i wonder your own forecast, how do you pressure this, how do you see out and what is built into your forecast in terms of what we see with coronavirus in the next few months? >> well, i've been listening to the medical professionals and, again, i take great comfort in the progress that's being made on vaccines. i think it's pretty clear we're going to have a vaccine. what the exact date is we'll see. it could be soon, it could be the end of the year, but i think the money that we've invested in vaccines, vaccine development manufacturing, is really going to pay off it was an extraordinary commitment that is really going to help. i would also say as you look at more and more testing you're going to see more cases. i had an experience with someone in the last two weeks who was

tested they never even had any symptoms so i think this is a very bizarre disease, in certain cases people get it with no symptoms, in certain cases it is difficult especially when people have medical conditions, but clearly the economy is tied to the medical advancement and i think that tradition -- i've said before, traditional economic models don't work but what i can tell you, more fiscal response will help the economy and i would also say the sooner we're able to get these advances of testing and vaccines into the economy the better off we'll be. >> all right you've been listening to secretary mnuchin being interviewed by our becky quick at our delivering alpha conference we will have coverage throughout the day. so many notables here, guys, the key was where do we stand in terms of potential negotiations between the administration, the senate and the house, and i guess, jim, you would call that something positive

you know, mnuchin does seem willing to try to get something done here and did give us sort of a timeline, saying he kind of hopes to get something done in the next day, at least make enough progress where they can say, okay, we are very close to a deal. >> i think it's about tone the civility with which the secretary speaks to me -- and becky's excellent question about the senate was not really answered -- but the civility, the tone, the lack of rancor really to me cuts to the idea that maybe there's mutual respect, which is needed at all times, and so, therefore, something can be hashed out. carl, i think that what's been missing the whole time is a definitive view from the senate, mitch mcconnell, that there are senators who think that we really need a stimulus i think there's a lot of people who listen to the secretary and they say, what the heck, the secretary just said business is great, why are we giving away

more money that is really at the crux now of what they need to do. >> there's definitely vote counting in there. jim, two things, this idea that he's going to give it one more serious try. how interesting is that. and then saying that he does not see stand-alone aid for airlines >> yeah, i was actually hoping that there would be a carveout for the airlines just because that's going to happen in 24 hours. the rest of it's going to happen when the people who seek your rent aren't paid and i think that that's really the next hurdle for most of small and immediate numb-sized business and that matters i thought that he said something very interesting that's been completely overlooked, he talked about how the president is releasing the abbott labs test, they're $5, 150 million, there will be another 50 million a month, i think they can do a billion. what that does is make it so that you can figure out very quickly, 15 minutes, with an app that you might be able to be cleared for the 24 hours, which is why i thought it was such a

shame that disney had to lay off so many people i know that was a state issue, carl, i know that that was about viral load in that area, but the idea that you could have a -- something on your cellphone that would give you 24-hour immunity is what you need and secretary mnuchin said that is correct the president said it, but there's been no -- there's been absolutely no communication that i can tell other than to nursing homes, but not to airlines, not to theme parks, of the valid nature of a 24-hour pass that you get for 5 bucks. instead of the 500 and whatever for united that's done on site. >> $143 for jetblue. but that takes a day or two. we had the ceo on yesterday, jim. that's still a lot of money, you know, when you think about it in terms of taking a trip, maybe it makes sense, but given where aircraft -- air travel is right now in terms of pricing, that's

a pretty big percentage probably of what you're paying. >> you should go to wall green, get the $5 abbott test and go. >> here we are seven months into this pandemic and we still don't really have easily accessible, cheap, reliable testing. >> the government has them, they have 150 million of them they've given some to nursing homes. 98% accuracy >> great >> i know. abbott labs. do you have the app? >> no, i don't have the app. >> you need the app. >> thankfully we get tested here once a week. >> anyway, carl, we do have regeneron to find out what it means to be tested once a week or tested every day or if you are the tennessee titans, wow. >> yep the nfl was a big story yesterday, jim we're going to cover more of the testing and vaccine news we have gotten over the past 24 hours. also a series of upgrades in retail, like starbucks, canada goose, lb, shopify and more. we're back in a minute this is decision tech.

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let's get to the mad dash now. starbucks is the feature as we -- about seven minutes before we get started with trading here on this wednesday. >> do you know what, david, there is an upgrade by cowan and they are talking about a much bigger bull case, raising estimates above the consensus. i think the cowan analyst is really out there with this upgrade because that that analyst is saying is basically it's a risk/would reward, theye

going to have more stores, they're being able to negotiate really good leases, they are going to have curbside david, what this upgrade is is basically saying even though it's the quiet period and i don't really know the numbers because kevin johnson the ceo is not giving them out, they are doing their own work i could call freelancing, but i think that growth at scale agenda means to people it's time to buy starbucks, which has not been a great stock it's been okay >> no, it has not been great china obviously very important for the company and the reopening there certainly was helpful, but there are plenty of downtown areas in the city, not to mention plenty of hotels an things of that nature where there's a starbucks down stairs and traffic is not anywhere near it was. >> it's been bad but cowan is out there sayingwe are about t have that resurgence people are looking for the next nike, looking for the next costco, the next walmart

for instance, there is a note about lulu that's another one that people view as the next, the next, the next cowan puts the next as starbucks and, like i said, this has not -- none of these numbers are being confirmed by kevin johnson, the ceo, because it's the quiet period which means for people at home you don't get any information. so this is his own fieldwork very positive. >> sometimes that can actually be right. >> i like fieldwork. >> actually doing work and taking a stand. >> yes. >> when we come back, jim, we will talk about palantir's direct listing the company is going public today, it's been a private company for, what, 17 years. we will break it all down for ept l yo ke ialhere that's what my dad does.

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>> announcer: the opening bell is brought to you by nuveen. a leader in income, alternatives and responsible investing. opening bell on this final day of the third quarter in just a couple of minutes, jim the treasury secretary continues to make comments to our becky quick at delivering alpha saying two things, jim, one on tiktok, if there is no deal then they will shut it down. the technology will be sanitized by oracle, he says, and then asked if he was on board for a full second term, said, yes, he will serve if the president is

reelected. and wants him back. >> there you go. i think that obviously the president has -- he can be arbitrary, but i do think that that's helpful again -- all i care about is the stimulus and if he has the president's backing which is obviously from that statement then there's hope that there can be something, but, boy, are we desperate for it i still -- and i come back, carl, and i'm trying to figure out the situation with the airlines i mean, i think that's so front and center phil lebeau has done unbelievable work talking about how when you hurt the airlines you hurt roots to different congressional districts. i really want to know more about that because if they can't separate that from everything else and it's caught up, that's going to be the big layoffs. and you're going to see a spike in layoffs, not just the disney layoffs. so, look, i think everyone in the country wants some sort of deal except for people who genuinely believe that the economy is incredibly strong david, if you think that the economy is incredibly strong why

would you give away a trillion dollars? >> you wouldn't. and there are those who believe that the economy is strong enough to withstand this and don't want to spend more money obviously the budget deficit has been expanded greatly. not just over this last year which has been truly extraordinary but even prior to that, remember we were running a trillion dollar deficit in part because of the 2017 tax cuts. >> right i'm glad you brought that up because i think one of the things that came up last night, and i'm interviewing senator warren today, is that taxes will go up if vice president biden does win i don't think there's any dispute with that, especially for the wealthy, david be prepared. >> yeah, i got -- i've gotto get me a better accountant or buy some real estate apparently. >> real estate doesn't help. >> start depreciating, hire some consultants. >> david, you are on your own. >> i will be aup the 60% w-2 employee carl, nothing to complain about

here, extremely lucky and thankful every day >> we're definitely counting our blessings here, david. we saw the opening bell, asana ringing the bell, reference price 21 and reference price of palantir, jim, 725, that's going to be a big part of our discussion later on this morning. >> look, you could argue that's actually dramatically cheaper than what the "wall street journal" was talking david, i know you follow the secondary market september was $11, low $8, so, i mean, could you argue that this one is a relative bargain? reg testify bargain versus what it was >> which one are we talking about? sorry, jim. >> palantir. >> because we have two direct listings today. >> i know. >> carl just mentioned the other one. how extraordinary is that, by the way, on the same day we have only had two major directlistings up to this date spotify and slack, and here we

are, morgan stanley is not underwriting but is helping to guide both of these. they are going to be worth -- both worth watching. palantir of course we've been talking about for years and how it would go public and whether it would go public it is not as though it has been a new company in any way, it's been run by alex karp who will join us later on for yaen years, peter thiel one of its largest hair sholders. one of my questions is just how many shares are actually going to be for sale remember, again, this is selling shareholders, including mr. thiel, perhaps, or anybody else who decides that they want to try to sell some they have a large lock up or large percentage are locked up but i conneder how much supply there is going to be. >> they are locking all about 20%, david. >> correct. >> david, this is one of those deals that is very hard for us in the media to really discern what's going on because there's -- let's just say we

know that the last trade was at $9.17, okay? how is it possible that they're bringing this at 7.25 as the reference price? it's just a reference price. >> it's a reference price, we will see where it actually opens. it will be worth somewhere around $22 billion it's got some meaning but really it's what -- what the market will bear, right >> very true. >> but, again, you know, what i've heard, i've talked to a couple of significant shareholders. >> okay. >> it's not clear to me that they even are willing to part necessarily with what they could sell so i'm just curious to see how much is actually going to -- going to be out there to make the market today, jim. >> the last trade -- you average it out it's $9.17. >> if you believe in the long term -- if you believe in the long term ability of this company are you really going to be a seller here at that reference price. >> that's my point no, you wouldn't be. >> right. >> it makes no sense, it's not economic to do that, which is why -- theoretically if you get

it to reference price -- these things are still huge multiples to sales and the company is not making any money, but people like data mining stocks, they like a splunk which is a data mining stock but they don't get this kind of multiple to sales and a lot of them are closer to profitability. carl, i mean, this thing is just an enigma, it's a riddle, but i am sure that people will buy it just because, do you know what, data mining. data mining with the government, with defense. >> and moving on as well to commercial uses as you know, right. >> light. >> originally it was hunting for needles, not in one but in thousands of hay stacks for the government, they didn't have the software that palantir said to do their jobs in afghanistan, iraq, soldiers were mapping networks of insurgence and makers of roadside bombs by hand palantir came in and helped them identify patterns hidden deep within data sets and intelligence sources and things of that nature, but they also have gone on -- and this is the more important effort for them really -- to try to sell these

services on a commercial level, working with their data to try to find patterns to try to understand things. and to try to keep track of things as well and the prospectus they point out airbus a 350 has 5 million parts, built by hundreds of teams spread across four countries and more than eight factories and companies routinely struggle to manage let alone make sense of the data involved in large projects. >> look, i think these are unique skills but you're still paying 15 times for expected 2020 sales an you're paying 11 times for expected 2021 sales. david, we are all thrown off why? because warren buffett is paying 100 times sales for snowflake. value buyer. >> right. >> we are all thrown about what these times to sales numbers really are. >> yeah. >> have you been able to get a beat on that >> no. >> specific to what? berkshire in general and their ownership of snowflake or just the incredibly high multiples to

sales we're seeing in the marketplace? >> i've always felt that berkshire hathaway shunned ipos and wasn't interested in fanciful valuations, but they are the largest outside shareholder of snowflake >> there are others -- there do seem to be others asserting their prominence at berkshire beyond mr. buffett. >> that's why i bring it up. >> it's reflective of that. >> right. >> it's not his position. >> no, but it is a giant position in the most -- well, a giant position in the most skroefr valued stock this is twice zoom's valuation price to sales berkshire hathaway, they are shunning everything that we always heard the oracle of omaha talk about, but as david says it's -- it's an agglomeration of analysts apple is the best one they've

got. >> yeah. >> by the way, tim cook with his first package of rsus i think in about nine years, jim, that's an interesting piece of news out of apple. as for the broader market, nice bounce, all sectors green, vix is down a point, the dow almost all components are green, led by boeing and dow jim, a lot of travel names doing well i wonder if you think this is responding to the news we've gotten out of regeneron whom we will speak to in a moment, moderna, quest. >> yes. >> bdx and some others. >> we're getting a bridge. regeneron is a bridge to a vaccine. the abbott testing, which i continue to believe is undervalued in this market because it's only $5, is going to give you a chance to show that you don't have covid, you can test every single day, i mean, obviously you don't have covid today, you get covid tomorrow what did we learn from the tennessee titans, every one of those guys was tested right before the game and then they tested after the game and it was no go. the one that i was hoping david would shoot down and he hasn't

is the duke energy alleged deal which, david, i am told is not a real deal. >> you're told it's not real i have no reporting on it for you yet. i found out about it like a lot of people did, by reading the "wall street journal." >> but, david -- >> there was an approach made -- >> the journal says that next tara will come back but i haven't seen duke's share price. >> it would be hostile they don't do hostile deals. >> it does point to potential consolidation of that industry they have been an aggressive acquirer real quickly i wanted to mention alibaba. a $777 billion market cap company, one of china's largest, of course, it's up nicely this morning, bob, over 3%. they had a three-day-long investor meeting and on day three they talked a lot about cloud and their cfo guided ali cloud to turn profitable within fiscal year '21 and that seems to be making people happy

because that effort has been under way for quite some time and there are others as well there are in more nascent stages of development at the company in terms of new business lines so there is obviously some happiness amongst the investor base that they are going to turn profitable there carl, back to you. >> meanwhile, guys, mnuchin tells becky that we should know whether or not there's an understanding with the democrats by thursday. so being a little more specific on timing there. let's get to bob pisani, see what else is moving. hey, bob. >> boy, what an overnight, carl, just a lot of market moving events happening i just want to show you the futures because the futures moved in a 60-point range overnight. they were near their peak right after the debate ends and moved right down as soon as the debate ended, i'm talking 10:36 eastern time we went straight down obviously some questions about the election, the outcome, uncertainty. let's take a look at the buckets that moved the markets, we have had these four or five buckets that moved the markets here,

uncertainty around the election is very high, even around the outconnell, that was pretty clear. treatment and vaccine, the progress you heard about moderna and regeneron and maybe a 15-minute test over in europe, that made some news, certainly good news. stimulus, we don't know. pelosi and mnuchin are still trying for a deal, that's not dead at all, let's say that's still a positive potentially the reopening is very mixed here, we have had layoff announcements from shell and dow, disney, marathon petroleum, that could be a big issue in the next few weeks, but we also had great economic data this morning, chicago pmi much better than expected, adp better than expected so these are awful lot of cross-currents for the markets to digest right now. a lot of issues around out there. the sectors today we opened with energy and banks generally weaker, what else is new, now they have moved into positive territory, tech was doing a little bit better and now it's underperforming a little if you look at the quarter on top of everything else, folks, that we have to deal with, it's

the end of the quarter market gyrations here and we can see we're pretty flat in materials and industrials, tech down 6%, banks and energy continuing to underperform so a tough month, first down month since march overall. the guys we are talking about the direct listings today with palantir, data mining company, of course, reference price 7.25. don't hold your breath when this is going to open, folks, it could be all the way until noon eastern time they're going to take a while and that's because it's tough getting the right price foser these right now, asana, same thing here, $21 reference price there and, again, unlikely that would open before about noon maybe 11:30 or so. direct listings are still relatively new remember, we don't have many of them that are out there. we have spotify and slack here in terms of pros, why a direct listing? you avoid the bank fees, that's important and generally there is no lockup period allow there is with palantir. the cons, there's issue on price

discovery. there's no institutional input into that overall other than what your adviser is telling you. and you don't have a lot of immediate long-term investors like you do with an ipo. so this is still relatively new, i would not call it untested, it's been tested, but it's still relatively new, we will keep an eye on that. again, folks, just don't hold your breath for the next couple hours. guys, back to you. >> all right, bob, we will see you in a bit bob pisani bob mentions the data we got today include chicago pmi which came out a little early, let's get to santelli. >> yes, carl, all the data points were really fascinating today, let's start with the early ones of course we've talked about adp, better than expected and we also understand there is a disappointment because we haven't recouped all the jobs, but that isn't necessarily at a function of the economy, it's a function of economies allowed to open or not and trying to control a disease that many are trying to work along with

before, of course, we hopefully find a vaccine if you look at these 749,000, it definitely is a nice number we'd like it over a million, we'd like it over two if you look at chicago released early, it was also a good number, but we forgot something. we haven't talked about gdp. i like the personal consumption expenditure, with he all know it's a favorite, especially the core of the fed, and if you open this chart up and that number started in 1959, it's never been negative except for this quarter. i find that very fascinating and it was revised quarter on quarter from minus 1% to minus .8 the biggest lowest number i found actually was up .2 now, you see that on the chart, let's go and look at chicago it happened to have been the best number since december of 2018, at 62.4, and well above the three and six-month moving averages as far as what occurred in our markets, the mnuchin talk definitely moved markets, but if

you look at bunds on top of tens, they look exactly identical. that shouldn't be shocking, we're all trading basically stimulus anywhere around the globe, it's all if you thinkable, just like the credit crisis if you look at what's going on with the dollar index it basically lost a penny from high to low, 94.80 to 93.80 but it is stabilizing. carl, back to you. >> rick santelli when we come back as we said regeneron rising on news about its antibody cocktail study. we will talk to the company's chief scientific officer in a moment one reason that the markets are hanging on to close to 3350. we are back in a moment.

(music) anncr: give customers access to precisely what they want, when they need it the most. with adyen, the payments platform that delivers convenience for all. adyen. business. not boundaries. nextera. joe early data from regeneron showing positive results from the antiviral cocktail to treat the coronavirus. joining us now is a person who i know as probably someone who has brought more medicines, more drugs to the market that have

been approved, a member of the u.s. national academy of sciences and someone i have had a close relationship for a very long time dr. george yancopoulos of regeneron doctor, always good to see you, sir. >> jim, it's always great being on we will never forget that you spotted us many years ago when we were a $5 stock and you thought our special technologies could make us a powerhouse and i hope you appreciate we've been working really hard to prove you right with our new medicines to fight blindness, asthma, atop pick dermatitis, heart disease, cancer and now with our efforts against covid-19. >> let's talk about that when i distill things i think that this could be the hope for it is to get non-hospitalized patients to recover faster is that too broad a shorthand? >> no, i think it's -- that's the crux of it just to step back a second, as we all know there's been

enormous interest with this pandemic about whether the immune system and the antibodies it makes can help people when they get infected or not our study made several important advances so the first thing we did was we provided very convincing evidence that, yes, people's immune systems most of the time can do a great job fighting the virus by making antibodies against the virus, but then we showed that for each person it's a race between the virus and their immune system. most people win this race by rapidly making their own antibodies, however, some people make antibodies more slowly and this delayed response could put them at risk of losing this race to the virus and the consequences of losing the race are getting sicker and for longer and maybe needing hospitalization, maybe worse. >> all right. >> so the really important thing we showed with our cocktail is that we can use this antibody cocktail to substitute for a person's immune system, in essence we can turn losers into

winners by giving them their own immune response in a vile. >> how is this different from -- i had david riks on recently from lily, how is this different from what eli lilly is doing >> well, in many ways the approach is the same and i think that our i think our approach is optimistic but i think our results from what's been described publicly are so far more convincing we're able to make this realization that it's the people who are losing the race, the people who are not mounting their own immune response. that's where this therapy is most effective that's a really big advance. >> if that's the case, any chance for emergency use what's the path for emergency use, doctor? from listening to you even though i think it's just 275 patients, the fda should take note and try to get more people in a study that could be a breakthrough and give you advice about what could

vaccine could look like. >> i think it's promising for vaccines vaccines are trying to induce the type of antibodies we're giving to patients even though it's only 275 patients, the reason the vaccine has to be bigger is there's more safety concerns with vaccines than this therapy. this therapy theoretically is much safer and does not need as large studies as the vaccines. we think the data we've generated is pretty compelling and, of course, it's up to regulators and others to decide whether an emergency use authorization is warranted here. i think the data is really compelling here that we can really be making a difference for these patients >> like many people, i'll test today, wednesday at 2:00 if it shows something terrible tomorrow, should i try to get the doctor to give me regeneron, the formulation or is that too flip

>> right now it's not necessarily available. but if you're asking for my opinion and based on the data, if it was me, and i know as much about this as anybody else, i would definitely want to get access to this antibody cocktail if i was recently diagnosed and had high viral hitters >> we don't have anything like that right now congratulations to you doctor and your team at regeneron they've done a fantastic job i know this is not your first pandemic, and i think that makes you very different from a lot of the other people we deal with. thank you, sir >> we appreciate you >> carl, back to you all right, jim, we are keeping an eye on palantir the s&p gets a bounce back to 3355 don't go anywhere.

let's get to jim and stop trading. >> you might notice boing eing

up the head of the faa flies in the max. we talk about that tonight i think you have to understand that this is something that's long awaited, and i think will be viewed as being the last step before validation. not vindication, but validation that the 737 max works very good news for boeing. >> yeah. making another run at the 50-day it's been suppressant since july >> i think you buy it. this is it you're at the -- you're at the tail end of this mess, and i think that's the case. there's going to be demand, because i believe that the travel numbers are at, in a gear and have to get better there's just too much demand that's been pent up. people just waiting to hear the planes are safe and we can go somewhere. and i think other than disney, people want to travel. >> yeah. it would be nice, jim. what's on mad money tonight? >> so we have marc benioff with

a surprise announcement for us and the hottest company other than zoom is dock yusign. it's a way to circumvent red tape it's been a fabulous stock we'll find out more. >> all right that's going to be one to watch tonight. we'll see you at 6:00 p.m. eastern time we're watching headlines from delivering alpha dow is up 250 on good data as we close out q 3.

good wednesday morning welcome to another hour of "squawk on the street. david faber is going to join us later this hour. a nice bounce for equities we're going to start with pending homes. >> another record set in the housing market pending home sales jumped 8.8% inning a month to month to the highest level since the realtors began tracking this in twun. up 24.2% year over year. the street was only expecting a 3.2 % monthly gain

this is well above expectations. the realtor's chief economist is pointing to rock bottom mortgage rates, rates below 3%. they spiked toward the end of the month but came down giving home buyers much-needed purchasing power sales were strong across the nation strongest in the west up 13% month to month but up over 8% in the south and midwest, and up 4.3% in the northeast. this is particularly surprising given how little supply there was of homes for sale in august. we saw more homes come on to the market, but by the end of the month the realtors reported supply was down to a three-month supply, down 19 % year over year, and that is, of course, why we're seeing prices heat up so much. well over 11% year over year for home prices nationally and much more in some local markets record sales pace being driven by low mortgage rates and this pandemic-induced stay at home culture we have now. the question is can it continue

to the fall with so little supply we saw new home sales bump up over 43 % annually in august it's all about the psupply to keep the sales at the record pace >> in contrast to the decline in mortgage applications. thank you for the report on housing. now highlights from yesterday's presidential debate. it was at times chaotic and hard to watch >> i don't know if you can say these are highlights, but this was an ugly and angry debate it reflects an ugly and angry moment in politics as they hurled insults at each other the president had to be reprimanded by chris wallace to agree to follow the rules he agreed to before it began. this was a rough and tumble night. there were a couple moments among limited discussion of substance where they talked about the economy and each one said the other one would make

things worse, starting with joe biden. here's what he said. >> under this president we've been weaker, poorer, and more violent. when i was vice president, we inherited a recession. i was asked to fix it. i did. we left him a booming economy, and he caused the recession. >> now, for his part president trump said that joe biden would make the economy worse if he's elected. here's what he said. >> when the stock market goes up, that means jobs. it also means 401 ks if you got in, if you became president with your ideas, you want to terminate my taxes, i'll tell you what, you'll lose half the companies that have poured in here will leave and they'll leave for other places and you'll have a depression the likes of which you've never seen >> another ominous sign.

a lot of discussion about uncertainty about what might happen with the supreme court. chris wallace urging supporters to be calm in the wake of a long count election where the count goes past election day days, weeks or months. and all that tees up an election season where there's probably more uncertainty than at any year in any of our lifetimes back over to you >> yeah. a lot of people having to go back a long way and think about whether or not they're seeing things like we saw last night and this season. thank you. joining us this morning. jarod bernstein, a former chief economist to vice president biden. it's always good to see you. good morning >> thank you good morning >> i don't want to spendtoo much time on the color of the debate that's getting hashed around a lot this morning, but that sound bite we heard, when the stock market goes up, that means jobs. how valid do you think that still is >> i don't think it's particularly valid it's one of those claims of correlations that don't have a

lot to do with each other. a lot of times if the business cycle is positive, it means corporate profitability and added jobs but the link is between how well american corporations are doing and how well the american middle class is doing has been significantly broken in recent decades, and it is one of the reasons why biden's agenda, the building back better agenda should be seen as a reconnection agenda to reconnect the growing economy to the economic prosperity to the middle class something missing and something i think the guide star for trump is very misguided from the perspective of people who have been falling behind for too long >> if it's not quiequity prices, the housing market we just got pending homes. another record low supply double digit price increases why is that not a bigger selling point for the president? maybe it will be in the next debate >> it's a great question this gets into the k-shoiped

recovery that you heard chris wallace -- you might have heard him ask about if trump wasn't yelling at the moment. the idea is you have a narrow sliver of folks at the top, many of whom disproportionately hold equities who are doing well in the economy. and in the bottom half it's not like that. so we have a phenomenon of rising stock prices at the same time of rising hunger and evictio evictions. again, it's exemplary of the inequality problem the biden administration plans to help for more affordable child and health care and better jobs in manufacturing and trying to derig the tax code and some of the racial bias in the economy >> so the debate last night,

jarod, now we have the treasury secretary talking to becky at delivering alpha getting more granular about when we think we may know if there's a compromise with the speaker. here's what he said a few moments ago. >> i think we're very effective in communicating with each other. in many cases we have things we agree on and we have things that are differences. and we're trying to see if both of us can manage a package that gets some of what everybody wants. >> now they're talking about a so-called escalator cause that would allow more money if the virus persists and get you close canner to pelosi's target if this lasts longer than originally thought are the negotiations getting more interesting? >> yes and i would say the probability of getting a relief package this week has gone from very low to a bit less low

last i heard there's still something like 70 0 billion apart. i'm concerned there are some members up there who are much more focussed i think mitch mcconnell is probably in this place, much more focussed on the supreme court than getting help to families who are struggling again, remember that k-shaped notion this idea that even while the stock market is doing well, we still have tens of millions of people unemployed, rising hunger, rising evictions really difficulty with earnings for people in the bottom half. this is as essential as ever, as urgent as ever, but some of the urgency has clearly been lost up on the hill. >> jarod, i want to get to how vice president biden's tax proposals might feed into this and whether they address the k-shaped recovery, specifically corporate tax rate, increases proposed as well as upper income tax increases.

now, have we learned anything about how -- is it about revenue or bringing down the upper leg of the k in some way not so much that there's a fragile recovery we can't raise taxes but presumably we're not going to have a trillion dollars worth funded -- that would make it smaller >> i like the way you teed it up that's the right way to think about this here's one of the most important fiscal points that you just raised going in to this pandemic and recession. and i would argue the epic failure of the trump administration has lengthened and deepened it, but when the economy is closing up on full employment, revenues should be going up instead, they were falling we've never gone into an economy -- into a recession after an expansion this long

with such a diminishing revenue picture. and that is because the trump tax cuts broke the link between a growing economy and revenue flow to the treasury that link has to be repaired, and it has done so highly progressively in the biden tax plan which country raise any taxes on people below 400,000. we can't talk about the tax measures without knowing what they pay more. millions of jobs in clean emergency, access to higher education, manufacturing jobs. you heard biden try to talk about this last night. a clean emergency agenda that's not only good jobs in renewable production, but also in electric cars including half a million recharging stations, and public transit, clean public transit to cities with residents at least over 100,000 this is a progressive, clean energy agenda, and because trump

doesn't want to talk about that, you didn't hear it last night. and in fact, i would challenge anyone to tell me one policy idea that donald trump brought to the table last night regarding his second term. i did not hear one all i heard was a bunch of noise trying to shout down a biden agenda which i think is going to make a huge difference in this economy if he gets a chance to implement it >> sticking to taxes, there's new data from the tax policy center which found the prieevios hikes in capital gains taxes led to selling in the stock market how close is joe biden to his $4 trillion tax plan? >> it's very important for vice president biden to pay for his building better agenda health care, child care, that's not the kind of thing you want to put on the deficit.

we want those programs to be sustainable and lasting. he's highly committed to those in the progressive manner i described. now, i looked carefully, and forget me, lots of other economists who don't work for a campaign have looked very carefully at the relationship between increases in taxes on capital gains and investments. the one thing you find is there are people, i'm sure donald trump is one of them, who will try to time the realizations to preempt an increase in the capital gains race that's timing. that has nothing to do with invest there is virtually no lasting investment evidence that raising the capital gains tax rate would have on corporate and business investme investment, because it's driven by all the other things i've been talking about a reliable, nonchaotic president who doesn't do what trump did and by a deep investment agenda in american's clean energy, in

manufacturing, in getting kids, especially community of color access to education. that's at the end of the day what drives our investment agenda, and in fact, a good example of that is that the trump tax cuts did virtually nothing for business investment. and so it's kind of the other side of the same coin. >> yeah. well, i'm not to say investors are happy about it or would be, but your point is a good one and there are other things to consider over the long term. >> thank you exactly. >> quite a night last night, and we'll get more debates in the weeks to come. talk to you later. >> thank you my pleasure. all right. a pair of market debuts still ahead. p palantir going public. we'll talk about it with stacey cunningham and later, velody velodyne lidar (♪ )

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we are awaiting palantir's first trade. a direct listing on the new york stock exchange ticker pltr. leslie joins us to talk about this direct listing. it's been a long road. >> a very long road. it's one of the most anticipated listings and one of the most controversial and could be among the largest companies to debut this year. palantir is going public today they were founded 17 years ago

today they have 125 customers large companies and government agencies around the world. these customers pay to use the software platforms that palantir built. palantir expects revenue about $1 billion this year that shows accelerating growth, but the company remains unprofitable it also debuts with reputational risk this week amnesty international published a report questioning their potential human rights violations of asylum seekers through the work with i.c.e. palantir did not respond to our multiple requests for comment on this report. like much of palantir's ethos, it's going public unconventionally, pursuing a direct listings. unlike a traditional ipo, palantir is not issuing stock to raise capital. they're allowing existing shares to be traded on the exchange

it did not set a price by which to allocate shares the banking advisers and market maker revealed 725 to be the so-called reference price. this is essentially a guide post for investors to begin making a park for palantir stock. it's based on where it traded in the private secretary market >> thank you let's gel into this process. joining us now is the nyse president. >> great to be here. >> the companies have not raised fresh capital. there are buyers and sellers what are the market makers doing right now? how does it differ at this stage from what an opening of an ipo would be >> what's interesting is what the market makers are doing right now is the same thing we do every day when we open stocks we look at the buyers and sellers and find a market price

to open where supply meets demand they're beginning that process, and that's how it will unfold over the next couple hours that's not different from how we open stocks and it's not different from how we open ipos when they've had an offering the night before it's still driven by market forces it's really the same process at this point and stage the major difference is there wasn't an allocation like an ipo the night before where some shares are sold, some new shares are sold palantir and also assana is doing a direct listing this morning we have two ipos, and two spaces >> i was going to say now you have a menu of vehicles that companies can consider if they want to become publicly traded what are the considerations? at this point just mechanical, you probably have to have a decent size with a brand name or

at least established business out there. but also it would seem to me that if you're a potential buyer in this company, unlike an ipo with the urgency to put more orders in because you might not get an allocation, it seems to reward patience. you want to see how much is drawn out and how it trades. >> you're right. there are new paths to public now. and a company can choose what's right for them based on their goals. and each one of the paths as their own set of benefits that come with them so with a spac, for example, it's all about control the company negotiates with one counterparty they have visibility and control over the terms of the agreement that they're setting when they do their business combination. with an ipo, they have the support of the traditional infrastructure, and they have a little bit more control over their shareholders and who is getting an allocation as their first entrance to the public market with a direct listing it's more about reducing the cost of capital and having the market set their terms, and not seeing

a quick pop the next day so companies are looking at each of those things in these examples, there is no capital raised we are working on introducing that so you can raise capital in direct listing i think that's where you'll see the market go. each one of these paths to public will evolve a little bit. we're seeing palantir introduce lockups on top of a correct listing. traditionally that didn't exist. i think you'll see the ipo lockup scenarios start to evolve it won't be exactly each one of the three paths to public won't be the same. we're starting to see evolution in all of them >> what steps are you taking to get more companies to list at the new york stock exchange? if you look at traditional ipos beating the new york stock exchange with 112 listings versus another with 27 when it comes to spaces, the exchange leading with 61 versus 54 for the nasdaq. what steps are you taking to maintain your lead in spacs and

gain more traction with ipos >> the new york stock exchange is number one for global proceeds raised. we innovate with companies on their new paths to public. we're focussed not just on ipos but also spacs and direct listings our companies have come to us and said hey, this is how i'd like to tweak the status quo, and we've been working with them on new paths to public that's why we continue to be the global leader in ipo raising and spaks is one avenue of that. the more complex a transaction, our market model with people involved that allows for oversight and control of that entrance to the public markets which such a critical time for a company is really what differentiates us for the more complex situations that's why companies continue to choose the nyc and the larger companies choose the nyc because of complexity of the transactions >> how has the economic backdrop catered to more companies trying

to find efficient ways to raise more capital >> i think there are a few contributing factors to why this year has been a strong year for companies going public september is the strongest year on record for the new york stock exchange in raising ipos we've welcomed more companies, more proceeds to the nyc this month than we have in any month prior, and a lot of that is the trend has been for companies to stay private longer. and when they stay private, there was access to capital in the private market public capital wasn't the main driver for going public. what we saw in 2020 was the pandemic really was -- the public markets was there during the pandemic for companies that needed to raise money quickly in the spring, and we saw many industries take advantage of that airlines, hospitality, retail. we've raised almost 130 billion, over $130 billion on the nyc in ipos and followones. many of the companies in the private markets are saying i want access to the public

markets because they've seen the value of access to capital when you need it most it's certainly been on display in this challenging year companies are moving and the pendulum is swinging from staying private to going public and certainly that's the trend that's been defining 2020 for capital markets. >> all right stacey, before we go, any realtime glimpse at when either of the direct listings might open >> direct listings take more time to open and our universe of twos to date, they've seen they take more time i think we probably have at least an hour or two >> all right we'll be watching. thank you. >> great thanks, guys >> looking at chip stocks ticker smh, recouping earlier losses and up 20% for the year. outperforming. up now 20% year to date. a different story for one of the group's biggest holdings, micron down sharply this morning despite better than expected quarterly results. current quarter guidance came in

below consensus due to the u.s. government's ban on shipments to china's huawei don't miss an exclusive the next hour quk t see wl "sawonhetrt"ilbe right back stay with us ♪ ♪ ♪ ♪

layoffs at disney are some of the deepest we've seen since co-vid began >> that's right. the layoffs are across hourly salaried and executive roles the company saying that more than two-thirds of those affected are part-time workers disney's parks experiences and products chairman saying, quote, in light of the prolonged impact of covid-19 on our business, including limited capacity due to physical distancing requiremented and the contin continued -- and the unwillingness to lift

restrictions in california, we're reducing our work force. putting the layoffs in context disney is eliminating 12.5% of the 223,000 work base and it caused a quarter of the u.s. parks employee base f. disney world had 77,000 employees disneyland about 32,000 employees. while disney world is open with capacity constraints, there's no indication of when disneyland hear in california will open due to the positivity rate in orange county, california now, rosenblatt telling us we assumed it would take a couple years for disney to get back to prior levels of profitability at the parks with revenue coming back now it looks like it could be a combination of revenue coming back and cost cutting. now, disney's shares are down about 14% year to date on concerns about this exposure to co-vid as well as exposure at the other divisions including at

the theatrical movie-going business >> shares down fractionally on a day when the dow and s&p are up 1% now time for a news update with sue. >> good morning. here's what's happening at this hour storms knocking out power for more than 100,000 customers across massachusetts, connecticut and rhode island heavy winds causing several accidents on the roads including one involving several tractor-trailers ford is recalling more than 700,000 vehicles to fix backup cameras that can suddenly go dark i covers most 2020 models including the explore, mustang and ranger >> at least six wineries have been destroyed by the glass fire in california. one winery estimates a loss at 30,000 cases of wine

serena williams pulled out of the competition it's more than likely she will not play another tournament this year you're up to date. that's the news update this hour mike, back to kwlu >> thank you very much as we head to a break, look at the biggest gainers on the s&p for the quarter. with fourth quarter kicking off tomorrow l brands beating up fedex, and ups on the list. cyclical stocks implying an economy trying to make a comeback we'll be right back. stay with us

a healthy bounce this morning. dow up 357 s&p back to 3370 nearly all the dow components are green and the ones leading are boeing, amx and dow. i wonder is this the vaccine news at play, some of the good data like chicago pmi and adp or the commentary from mnuchin that

continues to suggest there's at least some runway to get a compromise at least before thursday >> yeah. i think all those things you mentioned feed into the direction of a little bit of a brisker prospect of economic growth that's the way the market is behaving with the move in industrials. i think the chicago pmi to the up side as well as the idea that stimulus is going to be drawn forward. if bond market is responding for the bond market. treasury yields with up. it seems as if that's the notion last night the s&p futures, it seems as if people felt like maybe the range has been established for now. >> and look agent the chinese juan, best quarter since the global financial crisis and gold on track for one of the best quarters in years. that seems to be tied to the dollar >> yeah. the dollar backed up a little bit after the bounce it fits together the chinese currency tells you it's a global revival of a manufacturing economy that the

markets have been perceiving >> let's move to velodyne lidar going public through a spac under ticker vldr. a reverse merger where shareholders own a majority of the company. the ceo joining us welcome to the show. 45,000 units sold. ford, gm and google are customers. talk to us about where you want to take the business from here >> thank you for having me on the show we're at the cusp -- for years the lidar was in the r&d labs with customers and now we're seeing so many different applications coming online for use. so many industrial applications. it's an exciting time for the business, and as the leader in this space, we expect we will

really capture this incredible growth that we've seen in the industry ahead of us >> i have to ask as you know, elon musk, the biggest name in the electric vehicle space has been critical of your business and lidar technology, focallingt a fool's errand. >> i usually cannot go about five minutes before someone asks me this question, and there's two ways of responding one is market validation and the other is technology. from a market perspective, we've been working with major auto and tech companies for many years at this point and every single one of them, we've had deep conversation around the usage of lidar and all the conversations are coming to fruition in the form of commercial opportunities for the business so really the market is already spoken and tesla is really an outlier in this opinion. from a technology perspective,

if you're going to put human's lives at the hands of technology, it needs to work better than a human. that's what lidar is providing precise measurements of the world >> you may be the biggest player in the sensor market, but you're facing big competition, especially in china with two major players creating the same technology that's faster, more powerful, and cheaper. your thoughts there. >> we've done a good job of findi finding ip and protecting our leverage we have really been able to capitalize on that and leverage that to really not really provide the best highest performance product but be able to provide the at industry

leading prices we announced an isp, lidar, competitive in terms of pricing, allowing us to capture the mass market opportunity, and we are ahead of the game and are ready to do that compared to any of the others in the space. >> it's kind of obligatory to get a question when you go public as to why you went public this way as opposed to one of the other modes we've been talking about. you see the stock backing off a little bit from the open what was the calculus on your part >> we looked at all the different approaches to be able to go public and we looked at that across the board. spacs are popular. from our perspective, it came down to the fact we're in an industry at a massive inflection point with a huge growth trajectory ahead of us the spac process allowed us to

be able to have deep and repeated conversations with public investors explaining the nuances of the story and the massive potential for the technology in so many different applications a ten-day with meetings with investors. this is a much more -- process for us and it worked. >> your path to profitability, what does it look like i know it's 2024 last time we talked but can you get there faster >> yeah. i think there's two parts of the story. one is the tremendous revenue growth that we are seeing on the backs of the tremendous commercial attraction. the second thing is really the work the company has done over the past four or five years preparing for the moment with technology investments and manufacturing partnerships that allow us to deliver this technology at scale. all of that really gives us a

robust 60% growth that we expect to see and we'll talk about in our filings. and on the backs of that, the paths to profitability, we expect to be 2022 could be our first year of profitability, and then further grow beyond that. the up side potential for the technology, as we sit here the technology is being used not just in automotive, but in some incredible applications that touch people's lives we believe there's lots of legs to this and we will have a very sound financial story as we proceed forward. >> we appreciate you joining us and giving light to part of the electric car market we don't talk about that often. >> thank you very much for your time >> speaking of public debuts, do not miss palantir's alex karp coming up following the company's first trade as the company makes the first debut. stocks up 40onheow0 t d

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emergency the worst performer over the last month, quarter and year slivers of hope. find out where on trading nation more "squawk on the street" coming up.

up 1%. nasdaq is outperforming up 1.1 pretty good chicago pmi numbers. up side surprise on adp and private sector payroll market bounced off the recent lows overnight last week's high for reference around 3425. that's a level folks are looking for to see if the bulls can prove it now over to erik >> good morning. the major archverages are near e high for the session consumer discretionary is an

outperformer deled by gains in pressure throughout the pandemic, including cruise lines. norwegian up 7%. mgm and wynn in positive territory. las vegas sands lags a bit by comparison but it's holding onto gains. "squawk on the street" is back in a moment. turn on my tv and boom,

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gm is not expected to finalize that $2 billion deal with nikola which was scheduled to close today we have the latest fresh off the call with the nikola chairman and ceo. >> these are the first comments on the record from the chairman of nikola as well as the ceo of nikola as you mentioned, the deal with gm is not going to be closed today. that was the target date, september 30th they're in discussions and they still may finalize a deal with general motors i asked given everything that's happened involving nikola and the allegations that this was a house of lies, whether or not he believes that nikola did enough due diligence and represented

with the company is about to general motors he said yeah, we did here's what he had to say. >> the company's been public for four months. so we're comfortable with the diligence we did >> so as you take a look at shares of general motors, keep in mind that it is scheduled to take an 11% stake in nikola. that was the expectation when this deal was arranged starting on september 8th if it was to close by today. i've been told by people don't be surprised if general motors takes a bigger stake in nikola given the fact that as you take a look at shares of nikola, the valuation is lower now than what it was just a few weeks ago. i think it's down anywhere between 50% and 60% depending on how you measure it there is a change in the valuation of nikola, but they say we are making progress on the fuel cell semi truck being built in europe. the first five prototypes are expected to be coming in the next few weeks

girsky said i have driven in the fuel cell semi it's a real vehicle. i know there's a video of it rolling down the hill, he said, but the vehicle that i was in is a real vehicle we have a company that according to mark russell, the ceo of nikola, he says look, the valuation, it's still an extremely valuable company, butl company. one last note, carl, the pick jum truck, nikola put out a strategy statement today, no mention of the badger electric pickup truck is that still the plan to have general motors built this? all they said is it's part of the discussions. interesting to see if general motors ultimately says, that's fine get rid of that. we're still interested in the battery electric vehicle technology for the semi truck. the talks continue >> that's fascinating, phil. the notion that they would double down. you're right about the price action on the stock. went from 93 in june to less than 20 now. and it's funny, even though we

get -- watching this particular transaction try to close, signs of overall industry demand for the new technologies, whether it's california's new law or walmart tripling their order for the tesla semiin canada, those continue to come out everyday. >> correct nobody disputes that the commercial vehicle industry, whether you're talking about class 7 and 8 semi trucks or talking about the consumer vehicles that you and i would go out to a dealership and buy, it's moving towards electric and ultimately some day hydrogen the question becomes how quickly does it get there, carl. it's certainly not going to happen in the next couple years. the question is how much growth is there that's at the heart of the questions surrounding nikola's valuation. as you mentioned the stock is up more than 5% today as they continue their discussions with general motors. >> phil, it's a fascinating thought experiment if the revelations had come without this gm deal having been reached because you could argue it would have been more devastating as a

stand alone company where as with the participation of gm, as a manufacturer and trying to legitimize some of the technology, you know, what might have seemed like it was a dead end actually could have a future simply because gm is there to do what it wants to do and has the incentives to get those ev credits with this deal. >> gm holds all the cards right now, mike. we talked about this you and others talked about this as well. gm holds all the cards right now. gm saw no value at all in nikola, they would walk away from there this is not a matter, hey, you want to put the deal together? mary barra is meticulous and wants her team to be meticulous. they still see value here otherwise you would see them walking away from this deal. >> phil, we'll check in with you again. the gates foundation teaming up with some of the biggest drug companies to expand global access for global 19 therapeutics and vaccines.

good morning, meg. >> the gates foundation calling this unprecedented partnership with 16 of the world's largest drug companies and diagnostics companies essentially focussing on ensuring access and lower income countries to drugs, diagnostics. making sure they can be accessed there and delivered in different settings making sure as well to keep safety and commitments to the highest scientific and ethical standards as the first priority above speed or politics. and also ensuring that there can be equitable distribution globally now the gates foundation ceo telling me this is so important because the pandemic doesn't end until it's eradicated everywhere, saying, quote, it's a simple epidemiological fact that the only long-term solution is to make sure the entire world gets vaccinated. that's the way we create immunity that's the way we get back to normal

guys, in addition to this pledge, there are other initiatives one called covacs and another called sepi. a commitment from more than 150 countries around the world for equitable access to vaccines with a goal to have 2 billion doses by the end of next year. notable countries that have not entered into this facility, the united states and china. guys >> fascinating insight, meg. thank you. a check of the markets with dow 400 points following the comments from steven mnuchin on stimulus talks saying they are seriously considering a stimulus bill dow currently up 1.4%, s&p 500 up 1%. some of the biggest gainers on the s&p 500 are the cruise lines led by norwegian, carnival and royal caribbean. i'm learning from my sources that a meeting at the white house is being organized between the cruise line ceos and clia the cruise lobbying association and adam goldstein

as we await to hear from the cdc whether that no-sail order to october 31st it would be earlier than what the market was anticipating but no final word as of yet. >> i wonder when those -- when the disney layoffs crossed the tape yesterday, the media -- knee jerk thinking was this would not be good for the related travel related names, some of the plans that the likes of mgm are rolling out in the way of rapid testing at american airlines, it's put head of steam behind some of these cruise line operators. i saw for a while this morning marriott was one of the top performing names on the nasdaq 100. >> yes marriott, one of the hotels that has also raised a lot of debt in the market so despite 74% of hotel owners saying if this stimulus bill is not passed that they will unfortunately have to close and let go of their employees, these

travel and hospitality names have done an incredible job in raising the debt they need, the liquidity they need in order to cover themselves over the next couple of months it's the same story for the cruise lines >> seema, the cruise lines, if they have this somewhat earlier date to get back to sailing, do they have a backlog of orders for this at this point or is it just the market signal saying it's back to business eventually >> there's been this reoccurring theme and narrative, as we discussed last week with the ceos, 2020 bookings look strong and even for the end of this year where there are some sailings in the calendar, there is that pent-up demand that the ceos continue to discuss while many people will say that a cruise may not be for them, and especially after what we saw take place during march at the height of the pandemic, there is an unusually loyal customer base when it comes to the cruise lines. as to what happens, when the cdc lifts their no-sail order and that demand leads to people getting on a ship, we shall see

but that seems to be what the market is expecting. >> all right we'll watch that fascinating dynamic this morning as the dow is up almost 400 points as we close out the month of september and the third quarter. coming up in the next hour, palantir's alex carp, "squawk aly"ilstt t oer side of this break ♪ ♪ "hmm's and ahh's" heard in-call. ♪ "hmm's and ahh's" heard in-call. keeping your oysters growing while keeping your business growing has you swamped.

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it is 9:00 a.m. at palantir headquarters in colorado and it's 11:00 a.m. on wall street "squawk alley" is live ♪ ♪ good wednesday morning welcome to "squawk alley" i'm carl quintanilla with jon fortt and deirdre bosa

a ton of