precautions, additional measures that have been taken much greater than simply masking. >> larry, thank you for being with us this morning and nec director and we got a ways to go in the trading session we'll see what happens with the piecemeal deal thank you, larry kudlow. that will do it for us andrew and becky, join us tomorrow "squawk on the street" is next good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures are up as the market tries to price in some piecemeal stimulus now the president has that series of late night tweets, the vp debate tonight, lots of fed speak headed our way with fed minutes at 2:00 eastern. road map begins with the stimulus whipsaw the president calls off negotiations until after the election then calls for new stand alone stimulus relief measures >> plus, big tech backlash,

house democrats accuse apple, google, facebook and amazon of abusing their market power and that congress needs to rein them in. >> eli lilly asking the fda to authorize emergency use for its experimental covid-19 antibody cocktail those shares are rallying ahead of the open. >> jim, markets trying to do a bit of a reset now as goldman weighs in this morning and says airline stimulus likely, further ppp probably not likely. what are we? >> well, i mean, i think that the market went down after what the president said the president was talking about market hitting new highs and the only person that was sending them down was him. i think he does react. i think it is probably, you're not going to get that, say, listen, the dow was down, there is really in other reason. he completely dismissed speaker pelosi i don't know what he did with what secretary mnuchin was speaking about, whether there were phone call going on and

they were irrelevant obviously he addressed the fact that the senate was interested in the supreme court, not in stimulus so i think it is minor stimulus, and you make an emergency preparation for the airlines, by the way, they do have. there is a bunch of pieces out today saying they have liquidity. the only thing i can think of is the only thing that changed is that the stock market went down. david, you know that the president watches the dow jones, he follows it very closely, and i know he didn't want to be the reason why the stock market went down he historically doesn't like to send the stock market down. >> no, he used it as a report card on his administration more than any other administration that we can remember as his focus on the dow and the nasdaq yesterday, we talked about the lack or the -- i question the likelihood of a potential deal and i do wonder --

>> you said there would be no deal >> i was somewhat cynical about it, yes. you claimed i was cynical. >> you weren't cynical, you were accurate. >> i come back to leader mcconnell, and his role here, and some reporting that he may have told the president that it wasn't going to happen in the senate, and i don't know what you make of it or what you heard, but that's where we kind of come back to. you got mnuchin out there trying to negotiate something with pelosi >> in good faith. >> yeah. you throw your hands up. >> look, i think that the tweet of the president when he was -- i'll call him rash, because when you see policy in twitter, it is very hardto discern the actual seriousness of it. but he did say that the senate wanted to take up the supreme court. that became the priority not the stimulus, which made me feel like once again, the v-shaped recovery is alive and well in the senate a v-shaped recovery in the big companies, no doubt about it we see the stock go up all the

time we don't trade the small companies. it is very clear to me that there is a timeline. and the timeline is the only explicable thing -- inexplicable without the dow. you cannot figure out what the president was doing because the president seemed to be undercutting his own people. >> yeah. i mean, i'm not sure how constructive it is to try to read the president's mind. i will read you one thing that art cashin writes this morning we think the president was beginning to realize that any stimulus package was coming very late in the election cycle, and could almost equally preserve and hold an economy together for a potentially incoming biden administration there is this crazy narrative that for some reason the president either doesn't want to help an incoming biden white house or -- even make it even worse than it ordinarily would have been. >> i don't believe the president even factors in the idea that biden would win. i think that's -- the president is a zealot about himself.

i think he didn't -- it wasn't that he wanted to help people if biden wins, i think he was trying to say, listen, we got a really strong economy. we don't need this what is the point? speaker pelosi wants something so big and not targeted. we have an economy that is about to roar. now, you can create a scenario, david, where you don't need a stimulus >> right >> and that is a scenario the president created. >> and it is one that we're going to most lukely likely be with i don't know about one off aid for the airlines or some sort of pp -- we don't know. or one time check, jim let's come back to the market itself at this point we have a little less than three months to go in the year we have an election 28 days, how

many, 28 what do we do here with the lack of a v recovery, and the economy overall. we have gotten back a lot. 80 plus percent in terms of production we are not all the way back. do you fade things do you go with what's working? how do you approach the rest of the year given no stimulus let's say no stimulus in the lame duck. >> who is helped by stimulus companies that are hanging on by their fingertips you look at lowe's, announced some terrific -- terrific -- >> $100 million they will give to the front line workers. >> lowe's is crushing it a note says home depot is killing it a note that says walmart is doing well i have a note that says costco is having the time of its life everybody who is small and medium sized business is a share donor to these companies because they're strapped and can't get the credit line, okay. the winners, it is very darwinian, okay? the winners are the companies that do not even have to think

about their balance sheet. and the losers are companies that are going hat and hand to the banks with the banks about to report next week. now, i don't mind. i don't mind i remember my father sold boxes and bags to people who used to compete against walmart. 85% of them went out of business because walmart came in, walmart was cheap. it is just -- we think that technology, david, is being shot through the roof because of this ten years of technology in six months, ten years of big box retailers that you knew are going to win ultimately are winning now. so it is the same thing. what we have been talking about for six months, all the trends in place had been accelerated. and so that's what you want to continue to follow because you're not going to necessarily be able to save those businesses that compete with the big guys who are already doing very well. >> right the american consumer, if you want to be cynical about it, the american consumer is fighting --

they don't -- if they want to bargain, you go to walmart, target, costco, amazon, if they want to pay more, they go to the local guy. you saw the fedex yesterday, united parcel, let's be really cynical, what happened is the -- the -- my fedex is up again. what happens is no stimulus is fabulous for a considerable part of the market. all the companies in tech that are stay at home, people will still stay at home, because we don't have -- we don't have a covid killer the smaller restaurants, come on, they can't exist >> look at mcdonald's today, jim. mingi bakery items to their mccafe. if they believe there is a big share shift at breakfast time, it is -- i guess it is a

positive suggestion for the reopening of the economy, it points to what you're saying, they think more mom and pops who serve breakfast are going down >> it is a diner killer. again, how do i feel so people don't think i -- i'm a tin man here i think this is atrocious. these are 14 million people who have jobs, who are trying to build the next mcdonald's, but they're out, and why are they out? they are not being tied over maybe there is no tie over to a vacci vaccine. i close my restaurant, i said, you know what, i'm going to mothball it until we get a vaccine. i'll pay all the rent, the electric bill, i'm paying the insurance. mothball because our mayor allows me to have -- allows me to have solid ten customers when i got four employees solid. and kill my margarita, my margarita stand outside, because of social distancing, so, hey, i got -- we had chipotle ten blocks from us i'm ordering from it

instead of my own place. why not? they're big. they're powerful they got that bowl that you can take the chicken off and there is very few calories all right. all right. >> i understand your frustration. and there is many business owners who share it, jim >> how long are they going to last >> they're not going to last that long. if we want to look for continued potential good news, it is in a vaccine. we're in october there is a belief by the end of october we may hear from pfizer. we may get some very positive news, we don't know, from their trials that's a possibility doesn't mean we're going to have the vaccine available immediately before election day or after election day, no. that's not what i'm saying we're going to get potentially some results from some of these trials pretty soon. >> but i'm looking at eli lilly. they have a very similar product. david ricks came on "mad money," they have a van that goes to nursing homes, okay.

with their -- their cocktail it is working. and so what i think the bridge, which is why we need the stimulus, we have this bridge right now, you can see the president gets out of the hospital pretty quickly, the viral load goes down, allows the steroids to do their work, now we have lilly doing it we have a bridge to the vaccine. but it is a bridge -- but we're going to -- it is a bridge over the river kauai if they can't agree. >> yeah. one of the great pictures. but, gottlieb on "squawk" this morning did suggest that in terms of the bridge, we are going to start to see clearances for antibodies before we get clearances on vaccines that seems pretty obvious. >> oh, yeah. i really love -- when david brooks came on, he said it was going to happen. look, the more the merrier we got to get this, i wish the president said the following, that regeneron needs more people who are willing to be in the

trial. that's what regeneron needs. it is not that they don't have -- look, first 200,000 go to the government, free. but you need to have more arms that's what i put -- it is arms. you need more arms to inject >> you do. you do back to lilly, we should mention it, again, this is the competitor so to speak to the regeneron cocktail that the president took and it does seem to have similar impact the combination therapy significantly reduced viral load at day 11, meeting the primary end point of the study so far at least. earlier time points during the course of an infection as well day three, one higher viral loads typically seen it did what it is supposed to do reduced the viral load, reduced the likelihood of somebody having go to the hospital. and that is a good thing and that is something that may be available sooner than the vaccines >> yeah, look. we get v-shaped recovery if we just get -- you can argue we have a v-shaped recovery now. a lot of places in the country,

a lot of areas of the country doing well i think that's one of the reasons why is david keeps pointing out that there is a lot of senators who don't want stimulus there is lots of areas -- florida, by the way, florida is incredibly strong. you can say, wait a second, florida is wide open you can do anything in florida you can have a packed bar. maybe the president strips the mask off, he's got the viral load down from the regeneron, could do it with lilly florida is doing great you can easily craft a scenario which says we don't need stimulus then you go to a bunch of other states, and they desperately need stimulus. the last i looked we are one country undergod with liberty and justice for a heck of a lot of people. >> not everybody >> not everybody >> no. >> all right, cool we'll get to some of the upgrades of the morning. workday, couple of the airlines, enthusiasm is building behind some potential airline stand

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call, click, or visit your local xfinity store today. big tech facing further scrutiny on capitol hill democrats on the house antitrust subcommittee are out with a staff report that concludes that amazon, apple, facebook, and alphabet enjoy monopoly power that needs to be reined in by congress this after a 16-month investigation into competitive practices at these four companies.

recommendations by the democrats include reforming antitrust laws and instructing regulators to presume mergers by dominant platforms to be anti-competitive this adds to the ongoing investigations from both the department of justice and federal trade commission of those four companies as well, jim. none of which says anything is actually going to happen anytime soon >> well, the defense is already out, defense of apple this morning, i'm waiting for the defense. where is the defense of google come on, guys. >> they got a statement out. >> i'm saying the lap dog analysts. >> oh, i'm sorry >> i don't know. >> the lap dogs, i don'tknow - >> this doesn't seem to impact their stock prices or if it does, it is very brief. >> well, the reason why you should do the -- i'll make it -- these people are paid millions, i'll make them do their job for them so they don't worry, alphabet may be worth more broken up than not the sales are incredible we have a lot of stuff buried, the healthcare business would be

great. >> not to mention youtube. >> right youtube, undermanaged and -- kind of -- >> it is kind of undermanaged. >> come on so, alphabet, you know, i would say raising numbers and break up alphabet because of -- and let's move house the house antitrust commission could drive up alphabet 15%. one of these analysts has to break ranks and not be afraid of offending and just saying it a truth teller >> seems unlikely. >> how do you get an ounce of -- investment banking. >> there is a -- you do see it reflected in what may be their inability to do large deals. what google has gone through to get fitbit done or try get fitbit done has been difficult that's a tiny deal, at least dollar wise, that does point to the scrutiny these players are going to get if they were to try to do a large transaction. >> david, how much val withdrew

val withdrew value is created by the breakup of at&t. >> a lot. >> yeah. abbott abbvie, they did it on their own. brilliant. how about philip morris? they broke it up before congress had a shot at it. >> they did. not sure that -- >> you're killing people, it is hard to have -- >> standard oil. that one added a lot of value. >> huge. standard oil, thank you, teddy roosevelt for creating so much wealth we shouldn't be -- we shouldn't just say, the house is breaking up, we should say, hey, the house could create an interesting thing with youtube and you search and got the healthcare i don't know >> facebook, instagram. >> congress says an investment banker. >> absolutely. i think that, remember, peter navarro does this back and congress now is taking numbers up, do they even realize this stuff? do they have someone in there that says, wait a second, do some pe analysis

if you want to do a breakup, alphabet is ready. >> some of the parts analysis. >> sotp. >> these cases, if they were to undertake one, and we'll see, doj, we keep waiting, they're very close to making a move of some kind. these cases take years year and years and years they may be distract, but it doesn't mean they will end up with -- we don't know where it would end up. >> well, look, do you think the stocks are down today? no because people realize it could be great for alphabet. let's say the house is breathing down alphabet's neck here is some analyst will come up with the sum of the parts >> what is the apple focus, just on the -- the app store is get a great deal of fobbocus. >> logitech, you got to pay the toll to be in. but everybody knows, this is --

apple's case if you pay the toll, you do better with your -- with your website than you did if you don't >> steve ballmer knows his way around antitrust they were taking on the federal government he was a guest on "squawk box" earlier. here is what he had to say broadly speaking about the antitrust investigations. >> the thing that really needs to happen is they need to have a smart regulator to talk these things through with. i do not think that they can just sort of take eye unilateral action and expect it to satisfy whatever it is some regulator or congressman will decide they should have done so the key is to engage. you can change the law and it still might not be clear to the companies what they need to do to comply, because the law is not going to be written case by case by case i don't think the case of apple is the same as google is the same as -- same case as amazon and in a sense putting them all together makes good theater, but

it doesn't necessarily mean good policy in my opinion >> yeah. or potentially good law. market power, though, is the one thing that unifies them. they are incredibly powerful companies. >> but let's go back to facebook if you look at facebook, as a company that has too much power because it is so dominant, social media, how do we make twitter -- what do we say of pinterest, what does that mean about snap what are they looking at what documents are they looking at two years ago, the whole point of what has happened is there is some great stocks, shopify you know what, carl, shopify over facebook and you'll see how powerful the competitors are but no one wants to make that case because they'll say, listen, shopify is kicking our butt but look at that come on. >> that's amazing. >> i love ballmer. they need a technician that will tell them the truth.

>> we'll get to more on facebook, of course, as they take qanon content off the platform yesterday we'll talk more retail too as levis has surprising numbers to the upside "squawk on the street" is back after a break.

coming off the reversal to the downside to the dow yesterday, as the president broke off talks over stimulus, we're going to bounce a little bit this morning s&p looks to reclaim its 50-day moving average eng hetrt"ndheee a t opinbell are back after a break.

got a minute and a half before we get started with trading here on what jim and i like to call hump day. don't forget that. want to look at levis.

>> i should say it has been eight years since i recited the pledge of allegiance, one nation indivisible, we used to be indivisible, now we're individual i could say gone ruby tuesday's. but it is chip bergh and levi strauss. what they have done is remarkable direct to consumer china is on fire china may have given us the virus, but they have gotten rid of it and they're buying levis left and right there they got a special deal with kohl's, special deal with dick's, low inventories, 50% growth in their e-commerce we'll have chip on tonight it is in keeping with matthew boss from jpmorgan who says that denim is red hot why is denim red hot casualization. >> yes, everybody is casual. >> yes >> i have some jeans on today, because i can come here. nyc can't wear them. >> you have jeans on

>> this isn't just a sport jacket jim, net revenues are still down 27%. but the market seems to like it. >> people thought the stock was -- the numbers were going to get crushed and didn't realize that chip bergh didn't stand still, he went into action chip is great when we hear him tonight, i think everyone will be impressed he takes by the way -- he's shareholder friendly and felt terrible about that happened will you look at that sea of green, sky of blue >> yellow submarine. >> yes carl, this is what happens if you invest by tweet. can we just caution investors, if you're just going to look at the president's tweets, you're going to end up on the wrong side of the trade. it is really incredible. you see his tweet, you sell? can we be -- can people be that ignora ignorant arbitrary and capricious on twitter. if he says sell on twitter, you

buy. >> the case is being written this morning, jim, about the market pricing in, stimulus, whenever, this week, next week, after november, whether it is in january, that it is coming, somehow, and the other notion is that, i mean, look, biden up 16 in the cnn poll and we're not putting credence behind polls, but as the polls widen, the likelihood the contested election come down and the market seems to like that idea. >> just the market, love that. the president, he'd love it. the president is counting once again on people not willing to say they're going to vote for trump on the polls but i think that what is going to happen is that the people who think that biden is going to win, they feel there is certainty. people who feel that trump is going to win they like the fact that trump is good for the stock market and so you have these two groups coalescing once again and if the president doesn't go on twitter, he could get a multiday rally.

david. multiday rally going look, the president -- i know he does not focus on 50-day and 200-day. he actually cares about the actual companies. >> right well, we have resumed our upper trend in the market, we should point out the s&p is up about 5.2% for the year. and that is certainly nowhere near the almost 26% gain for the nasdaq trends remain in place you discussed them earlier the acceleration of so many different things that were in place, but in terms of digitization and back to levis, what you were talking about, 52% jump in the e-commerce now, 27% down overall, but market and investors seem to like that growth there and what that mean for the future that's story that's reflected yet again today in the market despite what seems to be high likelihood of relief bill coming. >> stocks could go -- amazon, carl, still down, 52 points.

and amazon is my bellwether, they are -- that stock, like a lot of stocks, down 10%. and that is too much in the sense of how well they're doing, the fact that amazon prime day is coming up and i don't know if you looked at your -- what amazon says they know you want, i think they're very off this year the algorithms could be out of whack. we need to see that stock up 100 points >> next week will be -- >> it is huge. >> subprime. >> between prime day, the apple event coming up, gjim, the bank earnings, the second debate, the next week or two chock full of news from a business standpoint. >> netflix, speaking faang, we have really positive note out, netflix, just talking about how there is really not a lot out there. i suggest that people watch "the

boys" on amazon. pivotal, massive benefit from global covid-19, thesis unchanged, despite competition from a company we stopped talking about, disney. that stock goes step by step, inch by inch slowly disney falls. >> it does down 15% for the year. but its market value, close to that of netflix. $9 billion behind in terms of size you're right, we haven't talked as much about disney direct to consumer there, continues to be the focus. it is not as easy when the theme parks aren't being able to operate at capacity. and, by the way, they made a lot of money having people sit in movie theaters watching what they produced. a lot. >> right >> they don't make that anymore. >> you won't get covid -- i particularly am not challenged, carl a lot of people worried about getting co-rid from tvid from t at the movie theater. >> hadn't thought about the seatback theaters have never been incredibly clean the line that stood out to me

was that at&t management has a reasonable shot of screwing up hbo as a competitor. >> yes. >> listen, low expectations i guess are a welcome thing maybe for hbo max. that's what it comes down to that if they can do something, it will be somewhat unexpected and perhaps not reflected currently at least to those expectations for anything good coming out of hbo max in terms of growth there at at&t overall. will talk about at&t in a moment as well and something else but, you know, jim, netflix's power as a platform, you to marvel at. think about shows, i don't know if you watch schitt's creek, you can say that, right? the name of the show. >> emmy winning show. >> it is an emmy winning show. and then, carl, cobra cai, that's not a netflix show. the first one was pop, right a pop original, yeah, a lot of us are watching pop. next one is a youtube show

originally nobody got to know them until they were on netflix >> we regard -- look, i got the big screen the huge screen, right and the first thing, it sends know netflix netflix is everything. it turns out i also have amazon prime on there holy cow that's how i found "the boys." you're right, there is netflix is synonymous with -- >> with television. >> with television. >> yeah. >> with television >> yeah. >> in how many years, carl how many years did it take to up end what david built >> not long, jim relative to the history of viewed content, they point out that disney plus, this is pivotal, is a -- is compleme complementary to netflix every additional service that comes out feeds the overall process of cord cutting, which eventually in their words leads

to netflix. >> yeah. look, the market cap, anybody could -- i got a real question for you. why did i have to wait weeks to get directv for the football package if directv is not doing well why? >> i don't know the answer to that >> could it be because they're incompetent? >> maybe i don't know did you know i was about to do a story on directv maybe you did. >> no, i just had -- i had my bud buddy -- i look like a power plant. >> well, directv is something i want to talk about, guys, in the faber report we have been watching the potential sale of that unit of at&t remember they bought it for almost $50 billion, number of years back, of course, as jim was referencing, it had a very tough go of it, no secret there, no surprise. we have been talking about it for years in terms of -- in

terms of the lower and lower subscriber counts. i did want to update people. that process is under way, and it may surprise some people in terms of where we end up there those expecting some sort of sale of the entire company, i think, will be disappointed. that's not what i'm hearing at least at this point what at&t is undertaking and not what the private equity firms lining up as potential buyer for the unit are being told much more likely it appears when they do get to some sort of a deal, if they do, and, again, they expect to do so before, potentially well before the end of the year. they're only going to sell maybe as little as 30%, 25% to 30% of directv at this point. they are, i'm told, going to be transferring governance control to whatever the buying entity is if it is apollo that buys it, one of the private equity firms interested, they would have the

right to manage the asset, they would have the governance control and at&t may be able to take it off its books, so to speak, wouldn't be any more focus on it, but they would be economically an owner of a majority of it now, is it fair to expect down the road that they would sell, that any deal might have certain provisions that allowed the buyer to step up or -- use option -- an option some way to purchase the rest, yeah, of course that's also a possibility. another possibility is if you are a buyer of this asset, a large pe firm, you know the best way to add value is to go out and get charlie ergen to sell you his direct broadcast satellite business as he becomes a nationwide 5g player and then you can cut the heck out of costs. and then if you're at&t, maybe you want to sell into that if that were to happen. at&t is not interested in banging their head against the wall to get charlie ergen to do something. there is no conversations about

that but it doesn't mean that a buyer of this asset, let's call it 30% with governance rights wouldn't have the desire to try to get mr. ergen to come in, to sell, and then at&t might actually either exercise its ability to sell the remainder or something along those lines. we'll keep an eye on that. by the way, i'm told there may be a couple of other assets included there we'll see u-verse assets as well, not sure and you're not going to see a huge check written to at&t given where the value of this thing is at this point, seen below $20 billion, not to mention they're only going to be selling a minority stake they will transfer some debt, could be as much as levered at 2 1/2 times current ebitda as well that's an update, jim, on directv. i have nothing to help you in terms of your actual -- >> help me here, at&t, they got a 7.2% yield, extraordinarily high, given where bonds are. what happens there they just -- >> that continues. the fact is, listen, right, this

is cash flow producing assets, a lot less cash. you are going to be able to offload debt with this, you are going to get some sort of monetization for selling part of it and it will disappear in terms of at least investor conversation it already has to a certain extent so much of the focus is on the success of, well, the wireless business, the competition they're meeting in the marketplace with t-mobile. and with verizon and hbo max and the success of that service in the future carl >> all right, guys by the way, kudlow said on "squawk" the president had gone to the oval yesterday, white house now clarifying and says that is incorrect. he did not go to the oval, despite what larry kudlow told us earlier trying to reclaim 3400, to bob pisan pisani. >> the issue, carl, very simple, are the talks dead or are they not dead we don't really know, but the

market is acting like they're not dead for the moment. and that's because you look at all of the stocks, the travel stocks, look at the usual names, airlines who look at the cruise lines who look at live nation, look at hotels like marriott, they're all trying up about 2% or so this morning at the open if you look at the individual sectors and the s&p, the reopening sectors, the cyclical sectors, the banks, materials, industrials tend to be leading at the open. tech also is up nicely but lagging a little bit at the open, some of the other cyclical sectors and the more defensive sectors like staples or healthcare are lagging a little bit. there would be some indication that the market feels that we're not necessarily dead on the stimulus what are traders talking about the stimulus, one trader called it the a la carte stimulus now, airlines from column a, stimulus checks from column b, take your

choice, let's do it a la carte, is that going to work at all second, stimulus in general, we have been noting in the last few days there two different stimuluses they're talking about. stimulus between pelosi and mnuchin and the stimulus post elections which may or may not happen if the democrats sweep and what the implications for that are a lot of people feel it would help cyclicals, we're getting a mini rally in some cyclicals/le have value names whether that works or not. that's the meme right now. and finally, carl mentioned this earlier, in the last week or so, there has been less anxiety about a contested election, and the vix futures seem to indicate that, if you look at the vix futures for october, november, december, and january, what you see is they were higher and more elevated a month ago now they are flatter and just slightly lower than they were a

month ago. that would indicate some less anxiety about a contested election, it has coincided this move down with biden moving up in the polls and, of course, whether or not that would be good or bad for stocks long-term is a hotly contested question, what matters is the markets seem to believe that some kind of phi nafinalit very important in addition to whoever might win or lose. speaking of bills out there, jill moglia, we had the schwab ameritrade deal close yesterday. he is the chairman of ameritrade he'll talk to us about new deals coming out, his spack and coronavirus and sports, he's a big sports guy 11:15 eastern time here on cnbc. back to you. >> all right, thank you very much, bob pisani sports, we have some reports of additional players on the patriots and titans with illness. we'll watch that let's get to santelli.

good morning, rick >> good morning, carl. yesterday everybody was talking about the rates and it dissipated when the president's tweet hit the markets regarding stimulus and the dealing being off the table. maybe that isn't true as we learned today. nonetheless, it really took a toll, whether on equities or on treasury yields. they came back and that really is important look at a chart starting on friday of ten-year note yields, low to high was up 12 basis points and we're retaking the ground from yesterday's high yields, both on tens and 30s if you open the chart up, to august, you can see the lows there, at 50 basis points, lowest close ever for 10s. the point is we now almost have a 30 basis point cushion it is the biggest cushion and it does take away a little nervousness where many traders become trigger happy as you get close to all time lows, they don't want to be stuck on the wrong side of the trade. that is dissipating a bit.

and we all spend a lot of time looking at 10s to 2s, yield curves, three months to 10s, to see if the economy was turning or not, or in a recessionary mode but the point is that steepening curves also tell us that long dated treasury yields may continue to go higher. so if you look at 30s minus 10s, this is near the widest it has been in over four years. if you look at 30s minus 5s, the widest it has been in nearly four years these auger for higher and firm long end rates, we have to keep an eye on whether the fed will pull the plug on real market pricing or not and about 25 minutes ago, the brexit talks, if there is no deal by the 15th, maybe all bets are off. you can see how it reacted, this is the currency market that's the pound versus the dollar the pound took a drop. it also took a drop against the euro and yen and all major currencies

carl, jim, david, back to you. >> rick, thank you very much bouncing back here, 300 plus points on the dow. the s&p back above 3401. all sectors green. vix is negative by a point back to 29 don't go anywhere. with this seal, this restaurant is committing to higher levels of cleanliness. ♪ ♪ ♪ ♪ the expertise that helps keep hospitals clean, is helping keep businesses clean too. look for the ecolab science certified seal.

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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 we can come to an overall understanding and if we do that hopefully the airlines will postpone their actions. >> that's the treasury secretary with becky quick last wednesday saying that there wouldn't see -- didn't see a need for stand alone needs and now the airline calling for that immediately and it is a reason why the xla almost up 3%. >> there's positive notes about

the airlines the only negative note was a downgrade of southwest and yet we heard gary kelly yesterday say good things. they're not in trouble, frankly. some of the other companies united are recommended because they can weather the storm it is much more about the layoffs than the viability to get the layoffs off the table, it is equating to areas of the country that will not be served and we know that congress is very worried ahead of election day that the planes to these small towns will be shut down and, david, there's nothing worse than in the face of the voter that you just lost the only way that you can get to -- from dayton to new york. my daughter flew new york to dayton more expensive than milan. >> these days things are extraordinarily cheap but you're right and gets the attention of

the elected representatives. they pay close attention to that and one thing the airlines have in terms of negotiating leverage here what chance do you think is that they'll get a one off aid package before the end of the year >> i think there's a lot of bad blood between the white house and speaker pelosi or there's bad blood on the white house side. >> we know that. what does that moon for the airlines getting some money? >> there can be some emergency thing they do. watch them come up with a rabbit out of the hat for the airlines. borrowing tax receipts you can do that stuff, david be creative. >> i'll try. >> try to save hbo max over there. >> i have no problem with it. >> at&t is desperate how's ge doing >> not that well. >> oh. >> we didn't get to ge this hour, guys after the wells notice

yesterday. we have 3403 taking us back to levels about lunchtime yesterday. we are back in a minute. before we talk about tax-smart investing, what's new? -audrey's expecting... -twins! ♪ we'd be closer to the twins. change in plans. at fidelity, a change in plans is always part of the plan.

here's a look at the s&p

not much is red this morning as the airlines and retail, financials all help lead the s&p to abouta 43-point gain. 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. my mom, siblings and i faced more than our fair share of adversity. but i believed in a future beyond what others saw. when it came time for college, the kpmg future leaders program was there to help. it was more than a scholarship. it was four years of support, mentorship and training. now, with a degree in animal science, i'm my family's first college graduate

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let's get to jim and "stop trading. >> who said the mall is dead they have this division which has got apparel, active wear, sounds like a cheap lulu for teens, 20s they're on fire and this is a stock if you believe the mall's not dead or want to seen vengs it is them i bought flip flops there. probably the oldest person, didn't stop. the place was stocked and just -- the flip flops, they're amazing! not that you go anywhere but -- it's good. watch that stock. >> good story. not as good as the kohl's shopping story. >> i stopped shopping at kohl's. kohl's cash. rather have the american currency i like the franklins american eagle, it's real. it's spectacular >> i got that reference.

>> some other night on - >> it's real, spectacular. >> i miss that show. >> it is on a lot of things. >> the scientists today, carl, they have got -- they pioneered colo recollect r colo rectaer people laughed at him. and then chip! celebrating the fact that jeans are back ala what david wears underneath. me i got the same suits as always i go to bed in the suit and change the suit. i'm not a jeans guy. >> see you at 6:00 "mad money" 6:00 p.m. eastern time jim, thanks. welcome to "squawk on the street." the dow is the first major average to reclaim yesterday's losses s&p right at 3400 which is an important technical level to

some melissa? >> we start with the economic relief reversal. president trump changing his mind on stimulus >> plus a bailout for the airlines those stocks are rallying after the president called on congress to pass targeted aid >> tacking on big tech what the latest attack of house democrats means for apple, amazon and others. let's start with the latest on stimulus. ylan moy has the latest. >> reporter: white house chief of staff meadows called this morning for targeted relief after the president shut down the talks over comprehensive deal yesterday >> we're still willing to be engaged but i'm not optimist ek for a comprehensive deal i'm optimistic there's ten things to do on a piecemeal basis if the speaker is willing to put it before her members. >> reporter: the president highlighted three of those issues in a series of tweets

last night, $25 billion in aid to the airlines, $135 billion to small businesses through the payroll protection program and $1,200 in stimulus checks to all americans. on aid to the airlines, there actually is bipartisan support for this issue democrats brought a stand alone bill up in the house already but it was a last-minute political maneuver and republicans blocked it on the ppp program, the $135 billion is left over in the program, treasury needs congress to extend the dead lieuwline tol out the cash to the small businesses and democrats are on board the stimulus checks and senate republicans have been weary of tacking that extra step if this sounds familiar it is because we have been through the territory before republicans and even some democrats calling for weeks if not months for congress to take

up individual items or perhaps a smaller deal in each case house speaker nancy pelosi has resisted the call so, guys, it is really unclear where lawmakers can go from here if they go anywhere at all. >> as mixed messages have been from trump himself on stimulus, the messages from the white house and top aides mixed. we have larry kudlow this morning saying that piecemeal passing things would be low probability and mark meadows came on fox i believe saying that's what they were aiming for. >> reporter: right so there is a difference probably between what the president wants and what is likely to actually pass in congress so right now what we're hearing is the president walking away from the deal but still having items he wants to see get done and it is items that all are pointing to are bipartisan many are bipartisan so there is room for compromise and that is

exactly what mnuchin and pelosi has been talking about trying to find the areas in which they agree and trying to find common ground on the places where they don't agree. that is what negotiating is all about. we see both sides retreating to their corners. >> we have news this morning of another call between speaker pelosi and secretary mnuchin, 9:33 this morning a conversation about a standalone airline bill although the speaker reminded him what you said is republicans blocked the bill on friday my question to you is about ppp is there an understanding if there's an extension it will be used >> reporter: unclear at this point. we know if you don't extend the deadline the money will sit there and go unused so if there is a second wave as there are so

many concerns about, if there are businesses that need additional help you want to unlock the gates so that that money can go out to the places that need it right now they're being ham strung by the initial expectation of lawmakers and many in the public that the pandemic would not perhaps last as long as it has and that the effects would not be as dramatic as they have so right now we need to see some action in order for money to get out to the door to people's pockets and into small businesses and i think there's frustration that washington is not macking that happen. >> david mentions this tweet from pelosi's deputy chief of staff in it saying that the speaker reminded mnuchin about the defaz owe bill that republicans blocked on friday and asked him to review it to have an informed conversation but i guess how likely is it something like that could be revived quickly? >> reporter: really unclear,

carl i'll go back to what happened on friday when that bill was brought up you know, pelosi brought this up at the last minute, not something planned for lawmakers to vote on and brought it up at the end of the house session just as lawmakers had finished the business for the day and were leaving, this was brought up as a request for a unanimous con isn't and republicans blocked that movement and there was concern amongst some in the gop that this was really just a way for pelosi to save face and say she brought the bill up and blame republicans for not moving it to the senate so while there are pieces of legislation that can be voted on the reality now is that lawmakers are home, they oar in the districts, cam pan g panning. is she willing to call somebodies back to vote for one piece of legislation that provides aid to businesses but not to unemployed workers or to schools or to kids that has been part of the crux

out problem. how do you weigh the conflicting needs of the american people who gets priority? that's why the negotiations dragged out. >> thank you we have markets rallying across the board for all three major averages start with our next guest jeff solomon. >> great to see you. >> there's an undying belief in the market it seems of a stimulus that's passed no matter what the conflicting messages are coming out of the white house and right now the s&p 500 we are about 10 points off from where we were yesterday at the open does it matter what form, what shape the stimulus is or just stimulus passes, markets get a green light? >> yeah. well, there's stimulus whether it happens before the election or not doesn't -- almost doesn't matter because i think the markets are much more long range in the thinking we see daily volatility but the

base case is there's stimulus regardless of who is elected or the way that the senate goes there's stimulus because at the end of the day this is a problem of bridging us from where we are today with the virus to where we will be once there's effective they a therapeutics and vaccines. once we go back to normal we have to make sure that people continue to have cash and spend in order to keep things afloat so that's really at the center of it why we believe there will be stimulus. >> do the markets have a green light to rally to year end i'm asking you with the notion if you look at the volatility curve, it's flattened quite a bit into the future but before a premium higher in november and december which seemed to imply that markets were pricing in contested election now with biden having a decisive lead in the polls that seems to have gone away so is the market consensus flipped to biden

presidency is a good thing >> i think that markets just are flipping to the idea that any certainty around the outcome of the election is a good thing i think blue wave is not a bad thing and a narrative that maybe it is bad because of taxes but i would say in a blue wave there's so much stimulus, any increase in taxes to pay for that is washed away by the amount of stimulus that happens and the markets gets that and end of the day probably prices that in. we've been pretty convinced it is range bound could be up or down 5% from here again assuming we don't have a surprises that happen. it is par for the course in 2020, you know, if you look at outcomes, left tale and right tale events it is hard to be predictive and the markets hangs in there and range bound between now and the election bashing an unforeseen event that

occurs. >> jeff, we have heard a lot of research desks changing the q4 forecasts on the premise of no further fiscal stimulus but what's happening at the banks as they try to figure out whether or not loss provisions are a story again after they were in q 2 and qis 1? >> i think the big banks have to think about loss provisions and trading is really strong capital markets financing business is really strong and an opportunity there for them to take a portion of the profits they have and reserve against losses in the loan books that's what i expect to see. it's been pretty bananas in terms of amount of companies that raised money across the sector the fed has been a real friend of the banks here for the last seven months i would say. whether they're hosing down the runway or providing monetary stimulus package it caused companies to go out and do

financing and that's great for the banks in terms of operating businesses and i could expect to see a loss in loan loss reserves but it's been that strong they'll continue to make money. >> rarely a day goes by we don't see another spac raising funds or announcing a deal i wonder what your view of that, whether it is it can continue and does it compete with cowan in a way and given the underwriting you do and looking to take companies public >> they have grown the metric we look at, might have been $15 billion walking around looking to get deals, today there's probably like 60 or 65 billion in trust looking to do probably somewhere in the

$200 billion of deals. it is still really small i can't stress that enough it makes for great fan fare. it feels new but at the end of the day it's small and so, for us it's been a great business our view is it's very effective way for companies to access the capital markets. if they want to go the traditional ipo route, that's great. it's been a great business for us at cowen. i don't view it as a competition to what we do. it is complimentary. and it is really a great opportunity for us to demonstrate that we can give companies access to capital on a multitude of ways. it is a great business for us. >> jeff, always great to get your perspective thank you. let's get to aman javiers with the latest on the covid outbrack at the white house. >> reporter: the white house is

saying that they beefed up the security procedures around covid now that the president and the first lady are sequestering themselves they have hospital grade disinfection going on, increased the filtration systems in terms of the air flow at the white house, reduced the level of staffing at the residence and also they say mandated that any white house staffer who comes in contact with the first family is wearing full personal protective equipment and the mitigation efforts to take. one thing not clear is where the president has been was he in the residence? was he in the west wing? where the oval office and the political staffers work. larry kudlow came on our air saying that the president had gone to the oval office. shortly after that the white house put out a statement saying that was incorrect that the president did not go to the oval office yesterday, that there was a desire by the president to go there and had put up plans to do it but he didn't actually leave

the residence and go to the west wing and to the oval office and confusion as to the president's physical whereabouts during the course of the morning this morning but the white house telling us that he never did go to the oval office look at the continued spread of covid throughout the president's close inner circle stephen miller, one of the latest big name white house figures to test positive for the coronavirus. so this virus now ravaging its way through the white house staff. and as in terms of the contact tracing of all of this, no focus on the supreme court nomination event for amy coney barrett last week on saturday as perhaps the nexus for this infection white house chief of staff meadows told reporters today that he didn't necessarily believe that that event was in fact the spreading event here's what he said. >> some of the infection here

within the white house did not come from that event because of the number of people we have we know exactly or we believe we know exactly where that infection came from and so to do it from a causal standpoint and suggest that was a cause would not be accurate. >> reporter: so, carl, meadows saying the white house knows where the ennext came from but not saying it and disputing the fact spread at the amy coney barrett ceremony at the white house on the rose garden and the associated indoor receptions that happened along with that saying at least some of the virus at the white house came from some other vector and we will have to press the white house for more detail on how the white house became infected. back over to you. >> yeah, right as scott gottlieb said maybe they don't want to know because they don't want it to be the story for the next three weeks eamon, thank you.

markets here, dow did reclaim the losses yesterday just shy of that up 341. airlines a standout as we are on watch for adnehelis of airline specific aid we are back in a minute. 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.

jpmorgan with airline calls. they cut southwest citing a more conservative demand outlook. of course as investors wait for a potential standalone airline

stimulus package from congress joining us is senior airlines analyst jamie baker. you mentioned the more conservative outlook and say they may have to reserve the cash burn targets. what is the upside for the name that is you do like? >> sure. our call today was very much a bit of a mixed bag we do think that managements may have potentially to walk back the fourth quarter forecasts and took the 2021 demand forecast what we believe to be for least now the worst on the street so that is very much a negative aspect to our call what we're really focused on now is 2022 and it is our view that vaccinations will be increasingly and broadly available in the second half of next year. and if we're accurate on that that sets the industry up for pretty healthy recovery in 2022.

we think the industry can maybe get back to about 80%, 85% of 2019's input in 2022 and if we are accurate that's what drives our four overweight rated names right now and we believe potentially each has excess of 40% potential upside plus. >> when you upgrade ual but you cut love, does that mean you're counting -- it is going to be a business travel dynamic that returns? >> no, no. it's really a valuation call, carl our southwest downgrade by no means a dog whistle for short sellers. we have a price target on southwest above the current price target it is just not sufficiently above where prices currently are to warrant an overweight rating but we are still convinced that zoom, for example, will significantly retard the

eventual recovery in corporate demand but yeah. no underlying thesis we think the u.s. consumer comes back before the u.s. business traveler. >> i think i ask every airline analyst the same question but do you see bankruptcies as an inevitably for the airlines that you cover? is that a possibility still even if there's no stimulus >> no, no. that's correct so we didn't incorporate any incremental psp assumptions into our modeling today should it occur obviously it will furtherer industry the liquidity runway if it doesn't occur based on the demand forecasts we still view that liquidity runway as sufficient for the industry to get well into 2021 and most likely beyond so we're not making a direct call on psp.

liquidity right now looks adequate even though we have really a grim forecast for next year. >> so i guess, jamie, you don't think the airlines need more money. >> we were huge proponents of the first round of psp the industry needed it because markets were not available at that time. i do think the industry put itself into a somewhat tricky negotiating position, several airlines left close to $8 billion of loans on the table with treasury but are saying we didn't want to take loans but we'll take free money. the calculus of $25 billion to potentially save 35,000 jobs, not particularly attractive calculus just divide one number into the other. we are not taking a view one way or the other it certainly would be been official to have it and it's

difficult to put a number on the jobs it would save. >> right when do you see the industry returning to i guess what we could call full employment if ever to the levels that previously had prior to the pandemic >> well, you know, possibly 2022 on air travel substitutes, i agree with scott kirby at united whatever business you are in when you learn that you have lost a deal to a competitor that's gotten out there to wine and dine a client and you're sitting at homeworking on the man bun that's the last time you are using zoom and i'll admit this but i went down to spend a day with delta air line management because that's what analysts do. we spend time, make relationships with managements did that fact get under the skin of my competitors?

i don't know i hope that it did we absolutely believe that the willingness to travel and conduct business in personthe way it's been done for millennium will return but it will be slow. >> i like that idea that willingness to get on the plane turns into leverage in the american sort of darwinian economy that we have i wonder, what kind of furloughs or layoffs will be realistic over the next 30 days? at a place like southwest, that would be a historic move. >> yeah, it would be and it's hard to assess that number what gives us confidence is that there are negotiated solutions delta despite being a largely nonunion franchise found a way to avoid furloughs for nonpilots

and is negotiating a potential solution that would stave off any pilot furloughs. united reached a deal to save close to about 2, 800 jobs so when there's this evidence of shared sacrifice and negotiated solutions i understand labor's trepidation in this regard employees without question were burned in the aftermath of the prior crisis, the september 11th crisis pensions obliterated wages consistently reduced what we are looking at right now are just temporary capitulations or sacrifices on the part of airline employees. so we don't have a firm number as to how many jobs can or can't be saved but we definitely are encouraged by some of the negotiated solutions that we see. we don't think the airline workforce is going to come out

of this downturn with precise tently lower wage scales temporarily, yes >> just going back to the $25 billion to save "x" number of jobs right now as a two parties are negotiating this piece of the stimulus it sounds like you're saying it's not worth it, it is not worth it to -- i don't want to be so callous to say these jobs are not worth saving. but $25 billion, maybe that's not money well spent, that is the message i got from you based on what you just said. >> that's accurate if you have a forecast that the industry is going to have to shed another 35,000 jobs in 2 months and another 35,000 after that, we don't know if that's the final number i'm pointing out the awkwardness of that calculus coupled with

the fact that several airlines walked away from possible loans so collectively i think that puts washington or rather puts the airline industry in an awkward position with lawmakers. we getting whipsawed on this as you saw yesterday and today. >> yeah. it's a hard industry to cover, jamie, because they're private -- i mean, public businesses but we treat them like utilities cities demand service, nonstop service, jet service and so, you can look at it from different aungles. it is a great note and a hard sector to cover. thank you for the time. >> i appreciate. thank you. time for etf spotlight taking a look at the health care ticker it is currently trading higher by 1.4%. the group getting a boost

submitting a request to the fda for emergency use of the experimental covid-19 antibody treatment giving the stock a pop of 2.4%. still up double digits for the year ea are going to take a quick brk right here so stay with us here on "squawk on the street. ♪ ♪ ♪ ♪

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welcome back, everybody. i'm sue herera two women won the nobel prize for chemistry, for creating the crisper gene editing tool which led to advances in cancer therapy. they are only the sixth and seventh women to win a nobel prize for chemistry. california's top public health official says he's seen no link of the reopening of k-12 schools and increase coronavirus

cases though it can take time for trends to emerge. in salt lake city, plexiglass barriers are installed on both sides of the vice presidential debate stage the debate is set to start tonight at 9:00 p.m. eastern time. and in italy, the government has imposed a nationwide mandate on requiring masks worn outdoors this even thoughen next rates in italy are far below those here in the u.s you are up to date david, i'll sen it back to you. >> thank you. house representatives proposing a rule julia? >> david, house lawmakers saying that the tech giants have monopoly power recommending they separate and banning the tech giants from entering lines of businesses adjacent. with facebook the report says that that company acquired

companies it considered threats to maintain and expand the dominance saying, quote, in the ab soens of competition facebook's quality has deteriorated over time resulting in worse privacy protections for users and dramatic rise in misinformation on the platform and recommendation of the report of facebook can mean forcing it the separate off what's app and instagram. facebook responding saying, quote, acquisitions are part of every industry and just one way we innovate new technologies to deliver more value to people instagram and what's app have reached new rights because of success. regulators reviewed each deal and rightly did not see any reason to stop them at the time. splitting up facebook would strike a blow to the companies efforts to integrate the back end of all of the applications to enable messaging, ad targeting and for small

businesses to sell products across the platforms jeffreys with a buy rating, saying a breakup is good for shareholders facebook is being investigated by the federal trade commission which it aims to wrap up by year end and the ftc is reportedly preparing a potential lawsuit. back the you. >> thank you. let's take a check on shares of clorox. they have a new item for schools for symptoms data in classrooms and educators will get realtime updates. we are back in two minutes

we are about an hour into trading. let's get a check on today's trading. we are up on all the major averages in part fueled by president trump's apparent stimulus reversal tweeting

support late last night for standalone aid for looikes of airlines joining us to discuss austan goolsbee and jim petakoukis. jim, put on the political pundit hat and try to make sense of the last 24 hours in terms of what the president did, what we are hearing from pelosi and where it gets us. >> i think the president believes that he is engaging in premier art of a deal art making, walking away from the table in a dramatic flourish and force pelosi to come back to the table and he's talked about that's the way to get hard concessions from an opponent i'm not sure that's the right situation because i think in nancy pelosi you have someone

that doesn't feel greatly compelled to get a deal. trump is down by a lot why should mashe make a deal? i don't get on policy basis why nancy pelosi doesn't make a deal $1.7 trillion, that seems pretty good there is an a ton of aid in the mnuchin plan for state and local governments. that seems like a deal she should take but perhaps she doesn't want the $1,200 checks going to americans with donald trump's name on them. >> i'll -- jimmy askedthe question but why not take something that's least halfway there with the prospect of shoring it up next year, particularly if you have biden in the white house >> look. i wasn't in the room where they were doing the negotiations. my understanding is that secretary mnuchin and speaker pelosi were in the midst of

negotiating what could be a compromise deal when the president weighs in with a statement saying we're going to be done with this and i think the one thing to add that made i thought the statement a little more sinister sounding was the president saying you can have your money when i'm re-elected i think it was more than partly a veiled threat that he's saying he has a long history of trying to get revenge on the people that he perceived as his enemies and i think this was a statement that if people are not going to vote for me then i'm going to let the thing burn itself to the ground and so i think nancy pelosi and steven mnuchin might have been able to reach a deal and did seem to me that if you look at the particulars they were getting close there was certainly common ground to be had and i don't

understand why the president would just go blow it up like that. >> jimmy, help me understand, if there's no deal before the election under any election scenario, blue wave, donald trump wins, you name it, is it likely to have a stimulus passed after the election until year end? i ask tongue in cheek because temporary furloughs are becoming permanent layoffs as we speak. americans don't have money to pay for food, rent ads the we speak. the urgency is now, not in january or february when a new congress is sworn in. >> i think certainly in a sane world that would for sure happen and would be doing it right now and maybethat could happen i'm not sure as i've been looking at wall street this morning, i'm not sure they have an expectation to come together and you will get this big deal in any kind of lame duck period. what might force that, of

course, are markets. if markets really start tanking. in the past we have seen how that can force congress to act more bad economic numbers could force congress to act. there's an inability already to get a deal when there's obvious need for a deal to happen and there's pretty good deals right there waiting to be grabbed if one doesn't happen now that it will happen 90 days from now. >> jimmy mentions obvious need where do you see it? of course the key area of differentiation certainly has been aid to states and municipalities and overall who needs the aid the most >> look. everybody needs the aid. are you kidding? we haven't got control of the spread of the virus and so we are having to burn money so we don't freeze until we get the furnace back on and not a cheap thing to do. it will work as long as you keep

providing the money. and the unemployed need the money. small business needs the money there are a bunch of particular industries which i personally am not a fan for money designated for the airlines opposed to more general rules but across retirees, people out of work, across people with kids, small business, state and local, there are a bunch of people that need the money and the economy is going to stall out if we just ram the truck into this speed bump i just -- this is the economic equivalent of catching covid and then insisting on going to work and not wearing a mask this is bonkersville. >> what he's saying and this is always underappreciated of lots of senate republicans who in their heart genuinely do not believe what he just said. they believe stimulus is

actually anti-growth anti-job that's been a problem to get the votes in the senate. they think this won't help the economy and without a fully engaged president pushing hard and telling mcconnell push this thing and if you lose some republicans that's okay. do it with the democrats nothing will happen. >> give me a response to that. jimmy raises a good point. seems like mcconnell may have told the president i won't have the votes for you any way and they demonize blue states in particular, corrupt cities, aid to underfunded pensions part of the mix here in terms of why they don't want to allocate more state aid. >> maybe the only thing to say, look, jimmy and i are old friends. i don't need to respond. we are not debating on that. >> yeah. >> i guess my statement would be this isn't even really about stimulus look, we can have a philosophical debate whether you think that at times of crisis

the federal government can jump start the economy. i think the evidence shows it can help do so but this is people are literally going to be evicted from their homes unable to put food on the table, unable to find jobs, there are massively more people looking for work than jobs available and you have got to stave off the wolves until we get control of the spread of this virus this is the most basic thing there is. >> real quick, let me just -- i don't know to what extent if any you have communication with the economic team in the biden camp, but if we don't getting in between now not just election day but if in fact biden were to win between now and january 20th, what kind of plan would biden put on the table if he became president in terms of aid/stimulus >> i don't speak for the biden campaign my opinion is that if they don't

get control of the virus, number one, and two, they let us hit this speed bump and we see millions of businesses go under, and millions of people get evicted from their homes, they will need to have ready to go on day one a major effort for rescue and relief. they will have to. it will be obvious i think there are going to be a lot of republican senators much less democratic senators who start hearing it from the constituencies and the dynamic that i don't understand is if you are the one to put your foot down and say i won't negotiate anymore, nobody gets anything unless i win you on it anything that goes wrong in the economy you on it and that is not going to be a comfortable place to be. >> guys, we'll leave it there for now but to be continued. thank you both. >> thanks. in the meantime, take a look at the top stocks on the nasdaq 100 with sirius xm reportedly

close to signing a new deal with howard stern to pay him about $120 million a year. also in there, netflix on this pivotal price target increase and upgrade of workday 'rba ia mewee ckn mont

welcome back to "squawk on the street." stocks are near the highs of the session with just about every sector in this s&p 500 in positive territory materials, industrials leading the way and the top performing sectors and among the best this week within that material sector we see continued strength in some of the construction names. mining stocks holding up well here more "squawk on the street" coming up after this break

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casual dining chain ruby tuesday filing for chapter 11 bankruptcy protection, attempting to cut its debt and recover from a drop in customer visits due to the pandemic the company's ceo saying today's actions will allow us an opportunity to reposition the company for long-term stability as we recover from the

unprecedented impact of covid-19 the ceo also added this announcement does not mean good-bye ruby tuesday. nice touch there carl >> yeah. meantime, let's bring in stanford university professor of management, dave dobson. he's an investor and adviser to over 30 small and medium size businesses around the country. it's great to have you back. thanks for the time. dave, can you hear me? i'm not sure we have him, guys you want to come back and check? in the meantime, melissa, it's a big part of the conversation i was just reading a note a couple of moments ago and art's essential piece is that the street needs to be prepared for a lot more tweets that the president feels that twitter is going to be his way to reach the electorate over the next three weeks going into the election, that he feels he can't trust the press, and the thoughts over at

ubs are that these tweets could be market moving and we have to assume we're going to come with more frequency and perhaps with more impact as it pertains to the economy, but specifically the stocks. >> we've seen the pace of tweets since he left the hospital and we saw the evidence of the market moving effective his tweets just yesterday. so this is something we are watching closely, his twitter feed meantime, we're going to take a quick break. "squawk on the street" is back after this before we talk about tax-smart investing, what's new?

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stanford university manager talking about the impact of potential stimulus dave, can you hear me? >> yes, sir. >> it's good to have you back. you make the great point that politicians historically love to spend money going into the final weeks and months of an election. i wonder, we've been asking everybody this, but what do you think the calculus is from the white house going into november 3rd? >> it's weird, isn't it? because we knew in april, you and i were talking on this show about how the bridge that we built wasn't going to get us to the other side so we knew we were going to have to spend more money, and yet we've squandered five months

during an election process and it's very hard to understand why the politicians would be doing this, who is getting the angle here but meanwhile, we've got an emergency on our hands because there is a huge sector of the economy that is going into q4, the retail sector, and this mak break for them if they don't get through the q4, the 850,000 covid related bankruptcies we saw in the summer are going to look like nothing. and the issue is that these retailers cannot wait until november to decide how much inventory to order they need to be doing this right now. while the politicians are posturing, we wake up in the morning and powell tell us we have an emergency on our hands, at lunch trump says let's wait until after the election and at dinner time we've got a new bill on the table we cannot be doing this anymore. once the retail sector goes down, the suppliers to retailers are going to get hit, then the real estate industry gets hit and then it hits the banking industry then you've got a systemic failure in the economy >> right, that's what powell

obviously has been saying he's been trying to avoid how do you separate, especially when it comes to state and local aid, legitimate rescue packages for small and medium size businesses, from, in the president's words, money that would go to management, in his words again, democrat-run cities and states where there has been mismanagement? and why would you want to reward that kind of negative behavior >> sure, let's talk about that so 17% of the economy are these municipalities but guess what they buy football uniforms from small businesses so what's going to happen is they're going to let last year's football uniforms work for this year they buy fire trucks, they have sewor projects that employ people this is not about punishing red or blue states the federal government can print money out of the problem this is about a huge sector of the economy. for the last ten years the sector has grown at about 5% a year you can say whether that's a good thing or not, but it has

been a huge part of the fueling of our economy right now and we're talking about bankrupting municipalities and who is that going to hit it's going to hit the guy who was going to sell football uniforms to the high school next year, a small business person. >> david, we always describe you as an adviser to over 30 small and medium sized businesses. i hear what you're saying, but just give me briefly what is it like for the businesses you advise how bad is it? >> well, back in april they were relieved to get the ppp loan and as rushed as that was, it worked but they were wanting visibility what's happening is those employers are on hold, those companies are on hold. they're not hiring people, they're not expanding, they're not buying inventory they're waiting. and that's the problem it's exactly when we need the economy to be active, the economy is on hold waiting for washington, d.c. to stop fiddling while main street is burning. >> david, always appreciate it we had to keep it a bit short given our technical complications earlier. thank you for joining us. >> all right

bye-bye. >> in the mean tooitime, good morning. it's 11:00 a.m. on wall street and "squawk alley" is live ♪ ♪ good wednesday morning i'm caro quintanilla with jon jon, who is back and deirdre joins us as well stocks are in the green as the session remains volatile, and of course the story and the