fargo all before the opening bell it is wednesday, october 14, and "squawk box" begins right now. good morning, everybody. i'm becky quick look with joe kernen and andrew ross sorkin. and if you want to take a look at equity future, you will see green arrows it looks like the dow is indicated up about 90, s&p 500 by close to 10 and nasdaq up by 42, this is after a down day yesterday for the markets. but that is the first time in the last five sessions we've seen the markets drop and gains are outpacing the losses so an evening out. and take a look at the treasury market, you will see right now at least, it looks like the ten year is sitting right around

0.719% andrew >> and we have numbers to bring you this morning from united health group just out with its quarterly numbers. reporting quarterly earnings of $3.51 per share. it beat the consensus estimate of $3.09 revenue also above forecasts, saying that medical care trends that had been disrupted by the pandemic are moving closer to normal you are looking at that stock up just marginally this morning and we have three more financials, bank of america this hour, goldman sachs in the 7:00 hour and then wells fargo in the 8:00 hour. joe. thankthanks, andrew. another clinical trial halted over safety concerns, eli lilly late stage trial has been paused

by u.s. health regulation tors it used a health sample from one the first patients recovered from coronavirus i'll given you more details. because it leaves out something important. of the trials ongoing of the antibody, they decided to add remdesivir along with the antibody and that is when they had to halt the trial for some kind of safety issue but a lot of people talking about this is a different mechanism. this is similar to what president trump got. it wasn't a lilly antibody, it was a cocktail antibody from regeneron. but he also got remdesivir so it was the combination of remdesivir with the antibody where they saw some issues the anti-body tests are continuing i believe in the u.s. and haven't been halted. but astrazeneca and rejgeneron are also testing anti-body treatments and news of the pause of johnson

& johnson. and according to reuters, u.s. regulators who visited one of the company's manufacturing plants in november of 2019 found in their words serious quality problems, the report says that the issue could jeopardize request for emergency use authorization. that said, just important to note that this was a combo it was testing the antibody and adding remdesivir to see whether that actually would even shorten the hospital stay more than just the afternooni antibody or remdr alone. >> i was so confused by this because we spent a lot of time on the show yesterday talking to johnson & johnson about you how they had chosen to pause their own trials and how that was different from a hold. because a hold would be something that would be

determined by regulators and that would be the definition and then rely lilly came out later in the day and said that they were pausing it and it was because a regulator was asking them to pause it so all the time we spent yesterday kind of making that big distinction between a pause and a hold, by the afternoon, i was like what is the difference, we're still talking about a pause at this stage. >> and one is a vaccine, would be is a therapeutic. there weren't many people in this trial at this point, i think it was 300 and change, they hadn't gotten too far along with it. and it is sort of an add-on trial. i think if you saw a problem -- monday kn monoclonal antibodies, there was an immune response and there have been problems, you know, concerns about using antibodies

and whether your own body would have an issue with it. but i don't think that this -- i don't know i don't know if it is the combination of remdesivir with the antibody or whether it is the antibody or the remdesivir although remdesivir has gone through some pretty good testing, safety testing. so we just didn't know where is meg we need meg on this. >> we need her >> or gottlieb or -- >> exactly >> we got three hour, we'll find them >> me and len are friends now. he messages me about things, makes comments and stuff pretty funny >> he's great. >> yeah, he's great. in terms of the safety profile, there are more questions than answers from this. i don't even think that we mentioned that it was in conjunction with remdesivir. and that is an important point because i think that the other -- >> very important point. the idea has been all of these

ceos -- >> you're the only one with a delay now. what have you got, andrew, how did -- can't you tell her how to do this, what happened in did you -- did you turn a nobody >> depends on the level of your internet connection. i don't have comcast, i have verizon. >> oh, low blow in the morning >> i have internet -- >> how could you not it is the rolls-royce of connections. if i didn't live in a com cast area, i'd move you know, i don't care about -- people come in, how are the schools? no, no, no don't worry about the schools, do you have comcast. >> exactly

taxes are high, but cable is great, internet is great gla a . and walmart announcing their plans for black friday you won't see the door busters that you have seen they will limit customers to 20% in the stores. they will ask shoppers to stay to the right hand side of aisles to help avoid contact. shoppers will be required to wear facial coverings. and they will direct more people to shop online they will hold three different holiday sales events during november, each one begin on the website and then hit stores a few days later when we come back, apple rolling out its 5g iphones, but is it enough to spark an upgrade cycle? we'll break down the new features and later this hour, my interview with bill gates. he covered a range of topics from the pandemic to potential treatments and vaccine

development. and now here is a sneak peek >> we won't be totally back to normal until we basically eliminated this on a global basis because even countries that have competent responses like south korea, australia, theyti s sllee infections coming back from time to time ♪ you can go your own way

♪ go your own way your wireless. your rules. only xfinity mobile lets you choose shared data, unlimited or a mix of each. and switch anytime so you only pay for the data you need. switch and save up to $400 a year on your wireless bill. with the carrier rated #1 in customer satisfaction. call, click, or visit your local xfinity store today.

the long awaited 5g. phone is here. four new models range from $700 to more than $1,000. but the range of cameras and display sizes, the 12 pro includes a lidar scanner it says joining us now, todd hazelton, digital product editor what have you -- i don't know how to say this gently what have you played with in terms of the phones? >> good morning, joe >> what do you know about this >> so i know what apple told us yesterday. i should be playing with it soon, but i have used some of

those features on earlier products like the ipads. on the pro models, that allows you to scan a room if you wanted to place furniture with augmented reality and kind of see if it will fit before you buy it and i actually used it when i was designing a nursery for my baby during quarantine here. so it is kind of useful for that but mostly it should be used for taking better portrait photos. but i think the biggest topic was probably 5g. and whether or not people need to upgrade for that. and my point of view on it is not yet. and i think apple knows that too. it is saying that developers will build experiences, but right now, my big question is what can i do with it. i've talked with a lot of companies and aren't really gotten a straight answer all the time >> different camera sizes, different features

my usually canary in the coal mine on this is sorkin sorkin, 1100 pick, are y o00 bu that or are you not ready yet? >> for me this is a super cycle only because i'm behind. i'm a good year behind as you know, i'm usually right on the next phone, but i've waited so here i am and this phone unfortunately is getting a little slow on me processor-wise but i'm with toed todd, the 5g components, i'm notsure that that drives me i think a year from now that will be important. and i wanted to ask about the throttling that they will be doing between 5g and 4g. to try to save battery life, they will put you on 4g anyway so only serb momencertain moment they will try to find 5g if they

can. and i was going to can how you think that will work and in what applications they will try to seek the 5g and then when will they put you on the 4gchl anywa. >> face time will be clear video, usually you had to have wi-fi for that and this is one of the reasons why 5g is not bigger in the 4g, it is in the same area especially with t-mobile right here, i can have 4g on my iphone and 5g on some of the other phones i test. oftentimes the speed difference is negligible. so it will come down to when networks get their mid band spectrum, and then there is verse's millimeter wave where you are getting 1,000 megabytes

per second and the benefit then is that you can download movies really quickly, podcasts, music really quickly and your phone can automatically do that. turn on when to sees 5g. but one of the big things now, we're all at home during a pandemic, so these use case scenarios are kind of off to me. but , it will be important in a couple years. people own phones two or three phones, so there is a big group of people ready to upgrade and they will hold on to their phones long enough for 5g to really matter. so i think that is why there is a super cycle here and then a lot of great features like the cameras and stuff that people usually like. >> what is a suppuper cycle wor $3 trillion? >> i don't know. could be but i think more so is apples services business as we've seen, i'm mostly excited for their pro bundles or apple one bundles

where they include news plus and are arcade and all that. and fitness plus which seems like peloton where you can work out on your ipad and see all the stats in your apple watch. very good at locking you into their system >> and what did you make of the magnet system on the back, the charging on the back, is that going to be fast ultimately, just plugging the thing in, and did you buy -- i watched the whole thing yesterday. they said that we won't include the charger anymore, we won't include headphones because there are billions of them all around the world already and we're doing this for the environment i thought that was maybe true, bi-i also thought that you will save a small fortune and charge me more anyway >> yeah, the catch 22. apple has this promise to lower their carbon footprints, but on the other hand, like here, spend 20 bucks on a new charger instead of us putting it in the

box. but i do have a desk full of headphones, that is me, but a lot of people probably did we're a moving on to airpods anyway, so why put the wired buds in if people aren't using them back to the magnet, i thought that was kind of cool. right now wireless, you put it on the pad and sometimes it gets knocked around so this makes sure that it is locked on the charger and then gives you 15 watts of charging compared to 20 when it is plugged in and that speed is twice what it was last year. so figure you are charging half the phone in an hour, a little over an hour which is pretty good and that is on par with what you are seeing on android too. so brings apple up to speed with its competitors. >> so you don't plug it in >> yeah, wireless charging has been for a while, but your best

bet is to plug it in if you really need to charge quick before you get out of the house. >> when question get clowe get , will you read a christmas care for us with that sweater some did you smoke a -- >> i have a fire behind me >> could you smoke a pipe or would you start? >> i could start again i never smoked a pipe. >> i haven't seen anyone at home with a chair like that, a big comfortable soft -- and then you have the sorkin sweater of the month. just a good look overall >> thank you i'm working on it for you. >> it is like a tech -- you should be a tech guy, you should cover tech stuff i think >> lucky that is what i come >> andrew, you got more things, i'm telling you, mor streams that you can shake a

stick at >> we'll do a sweater of a month club beat put it in a box on for you. >> i love it i have a whole closet full of blue sweaters. >> todd, thank you give our best to conan, tell him he is still funny and we'll hopefully see you again soon coming up, facebook cracking down on anti-vaccine ads, detailings after the break and then tonight, shep smith is examining the effects of the pandemic on u.s. airlines and essential workers trying to keep america flying tonight at 8:00 p.m. (vo) i'm a verizon engineer and today, we're turning on 5g across the country. with the coverage of 5g nationwide.

and, in more and more cities, the unprecedented performance of ultra wideband. the fastest 5g in the world. it will change your phone and how businesses do everything. i'm proud, because we didn't build it the easy way, we built it right. this is the 5g america's been waiting for. only from verizon. omnipod delivers insulin through a discreet waterproof pod... to help simplify life. no more daily injections.

it's game-changing. and the wireless controller helps deliver the right amount of insulin. plus, take your insulin anywhere with a small tubeless pod. get started with a free 30-day omnipod dash trial today. go to omnipod.com for risk information, instructions for use and free trial terms and conditions. consult your healthcare provider before starting on omnipod. simplify diabetes. simplify life. omnipod.

facebook said it would ban ads that discourage vaccinatiad s advantage sinizativaccinations an interesting step by facebook. i'm sure folks will be on both sides of that debate becky. >> and we have a big lineup still to come, i spoke with bill gates yesterday. and eli lilly news just coming out as we mentioned earlier, about how they have put a hold on part of what they are doing

in the antibody trials that they are running along we regeneron and the gates foundation has cut a partnership with eli lilly to try to make sure when they do get approval with antibody, it will be something shared with low and middle income countries as well. so we'll bring you that reaction everyone what th even what they are talking about big tech regulation. and later this morning, ron baron, jay which i clayton, glenn hutchens a hugelineup still to come hey, dad!

hey, son! no dad, it's a video call. you got to move the phone in front of you like... like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most plus $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today.

time for the executive edge. the world's top ranked golfer, dustin johnson, tested positive for the coronavirus and withdrawn from the tour event in

las vegas. he said that he was experiencing symptoms so he notified the tour so he could be tested. he won the fedexcup and tied for sixth in last month's u.s. open. he was one of the favorites. doesn't have his beard there we wish him well he missed the masters one other year when he actually had an injury, i think it was his back or something slipped in his stocking feet i've done this, you slip and just throw something out but that happened at the masters a couple years ago hope he gets to play this year he goes a totally different way at the masters just takes a line to the hole that some people can't even think about. >> when is the masters this year >> i think it is the week after the election i think. i think it is like november --

i'm not sure november 12th. >> so soon he could definitely still recover and come back. >> hopefully he'll be -- he is young, so i think he's pretty healthy. hopefully. how gun gentlemdo you know gene. coming up, who talked to bill gates? you know who becky talked about his found day's efforts to treat the coronavirus. hear the biggest challenges ahead. plus we'll get results from bank llfao.rica, goldman sachs and wes rg might even talk about net interest income again. as business moves forward, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers...

and deliver our products. but no matter how things change, one thing never will... you can rely on the people and the network of at&t... to help keep your business connected. this was the theater i came to quite often. the support we've had over the last few months has been amazing. it's not just a work environment. everyone here is family. if you are ready to open your heart and your home, check us out. we thought for sure that we were done. and this town said: not today. ♪

akeeping your oysters growing. while keeping your business growing has you swamped. (♪ ) you need to hire i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base so you can start hiring right away. claim your seventy-five-dollar credit when you post your first job at indeed.com/promo

the bill and melinda gates foundation has committed $350 million to coronavirus response. much of thisfocused on the rac for a vaccine or for therapeutics i spoke to bill gates on this work for the last seven months including the news about a pause in two promising clinical trials and what concerns him most right now. >> the bad news is that the fall

is going to be worse that is, the death rate will go up in most of the country. the good news is that these tools that can help in a pretty big way, the monoclonal antibodies and vaccines are get being closer so in the first half of next year, we should are volume of both of those assuming at least a few of these trials go well. >> eli lilly just announced a little while ago that they will be putting on hold their antibody trial that they are running right now because of safety concerns. it is being done at the advice of an independent body and i know that that is a company you've been working with at the gates foundation to get doses out to low and middle income countries >> yeah, eli lilly has been a fantastic partner. and so hopefully that trial hold -- which is not that

surprising, those happen all the time, but hopefully it doesn't turn into something that holds back a product which if it is safe has the chance to reduce the death rate quite substantially. >> how does the partnership with the gates foundation work with eli lilly? how much supply can you get out and this is i think something that is due by the spring of next year. >> yeah, so we last spring put forward several 100 million to fuji films to plea sevreserve t factories. we weren't sure which antibody would look most effective particularly in a low dose and as we worked with all the different anti-body companies, we ended up picking eli lilly as our partner and so that antibody has gone into the factory we

reserved and it will be until 345r7b8g before we have substantial volume and in the meantime eli lilly offered up 100,000 doses once they get approval that will go to the low and middle income countries. so we will learn as we do the delivery so we're excited about that, and we hope that the safety, efficacy, all these things get cleared because it could save hundreds of thousands of lives >> we have spoken with many experts including scott gottlieb that have pointed out that the what they can do with the anti-body dock cocktails that il have to be rationed and there are a lot of questions about how you hand out the doses that you do have. what are you thinking on that? >> the capacity will depend

somewhat on how big the dose is. eli is doing a trial of 0 ppts 7 grams which is less than a tenth of the eight grams that regeneron is using and we're looking at a one time shot basically if you catch somebody early where their oxygen is starting to go down, and they have tested positive, you give them the antibodies earlier and so the virus doesn't ever get to high, high levels, and in the early data, that looked very promising. >> right, but that comes back to the limitations. how do you decide who to give it to if you have limited supplies and it is most effective when you give it to people early? it is in the like you can find the sickest people and say you get it >> right, so this would be based on who is most likely to get

very sick or die and so you have co-morbidity and age be a primary criteria. and depending on volume available, the ones at the highest risk would get this early stage treatment. >> that brings up some of the issues with vaccines vaccines aren't being tested very much on older populations and they are not really being tested at all with children at this point and i wonder what the timeline is that you are thinking about right now before we can really get back to life as normal >> well, all of the phase three trials have a specific tracking of getting elderly people into the trial which has goon very well, and looking at the primary point of how you improve the health and what kind of andity bodies you have in those older people

they look very promising some vaccines do not work well in older people. some vaccines do work well and these constructs right now, the data on that is quite positive which is super important. the vaccine also has a chance of stopping you from transmitting to other people. so it is different than a therapeutic in that it can drop transmission as well and so every vaccine will have -- other than safety off off two criteria how much does it prevent sickness and how much does it prevent transmission >> so what do you think in terms of a time line, are we looking at life getting back to normal next spring, next summer, next fall what does your best data tell you? >> the rest of this year will not be normal. the sooner we deliver that somewhat bad news to people so that they can get ready for what will be a tough fall the better. as you go into next year, we

should start to see these tools be available in volume i think several of the vaccines are likely to get approved by the first quarter and there is manufacturing going on in parallel so they will get out there fairly quickly so things could be slightly better in the first half by summer, we ought to have dropped the number, both deaths and transmission a lot we won't be totally back to normal until we basically eliminated this on a global basis because even countries that have competent responses like south korea, australia, they still see, you know, infections coming back from time to time. and so they are having to maintain some unnatural measures and not have as many public gatherings as we had before the pandemic hit so really two milestones one is when we get a lot of americans vaccinated which can

be by next summer, and the second is when we really address globally the case transmission and bring it down to very small numbers. >> gates sounds more optimistic about where we've made progress in terms of the vaccines and therapeutics than the last time we spoke with him, but he is concerned with the fall and the same concerns that dr. fauci raised this week with shep smith. we'll talk more about that coming up in the next hour >> great conversation and looking forward to seeing the rest of it meantime, when we come back, bank of america set to report in the next few minutes we'll bring you the numbers and instant reaction right after this and later, a huge line up in starting with ron baron, he will be with us talking tesla and everything else

nice shot of times square. welcome back to "squawk box. we're awaiting bank of america's quarterly results. in the meantime, take a look at equity futures dow up about 3 points, nasdaq up about 7 1/2, s&p 500 off about 5 points and we want to get to mike santoli to get a sense of what

to look for in bank of america's report >> with all these banks, just how much the allowance for bad loans is going down quarter over quarter. and also there is some suspense about exactly how good a trading quarter it is, we don't off thinking about bank of america being a big presence there, but it is. and i think whatever management has to say about the tone of their consumer business and the pacing of, you know, september and maybe even october, debit and credit card spending, that is the thing i think that investors are fixated on and so more broadly the economy in the markets >> in terms of what you have seen so far out of citi and out of some of the other banks, and we'll get goldman later today, what you heard out of jpmorgan, do you think that you will hear something totally different? >> i don't know if there would be something totally different really from let's say jpmorgan

just given the mix of businesses it is mostly about these companies trying to control what they can control but the problem is they are all loaded up with massive amounts of deposits and not a lot of loan growth. that is the macro issue. some consumers are setting on savings and cash and there is not a lot of loan growth for them to earn off of so a tough period for them to have any leverage to an economic recovery at this stage >> how much money do you think over the past couple months has migrated out of the banks but actually stayed in that sector to some degree by moving in to finte fintech? i think about paypal running on the rails anyway, but didn't have the regulations that come with being a bank. >> and it does have the growth which the banks don't have what you used to want to own backs for in other cycles was

exposure to spending trends and how people are moving their money around and that stuff is available elsewhere, whether it is visa or master card. and that is happening in every sector older lower growth mature companies that don't really have the organic growth story, they are being neglected in favor of the new thing that is much more directly a pure play on how people are adapting right now. >> okay. mike, we appreciate your in-stits ahead insigh ahead of the numbers and we'll continue to watch for them and we'll continue to watch for bank of america. and we still have more financials that will be reporting this morning including wells fargo and goldman sachs, we'll bring you those numbers and reaction and don't mess our huge lineup this morning, interviews with ron baron, s.e.c. chair jay clai

go clayton, and glenn hutchens. you are watching "squawk box." 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. ♪

♪ "hmm's and ahh's" heard in-call. ♪

numbers are out and stocks down 2% after declining nearly 3% yesterday revenue coming in at 20.5 billion. the forecast was 20.8 so a little behind. eps ahead. forecast was 49 cents per share. revenue year over year is down 11%. citi yesterday was down 7% jpmorgan was flat. i want to jump to net interest income in part for joe but also because it stands out to me. the forecast there was 10.5 billion. it's come in at 10.1 billion that is down high teens percentage year over year for net interest income. it is an interest rate sensitive bank for jpmorgan that number was down 9%. bank of america coming in about down 17 or 18% management have guided that they think this will be the worst quarter for net interest income and it will grow from here

provisions for bad loans, 1.4 billion. perhaps not quite as strong as it could have been, 2.1 billion for fixed income trading forecast was 2.2 that's only up 3% year over year equities 1.2 billion that's broadly in line with expectations there's a bit of noise in there. deferret tax asset up and higher legal expense but they kind of net each other off overall interest rate sensitivity, andrew, really coming through net interest income down year over year about 17% and the stocks down 1.4% today closed down 2.8% ahead of this. >> wilf, we appreciate you

running through all those numbers. we're going to be speaking with you, i know, throughout the program because we have goldman sachs and wells fargo in a minute we want to get some reaction to these results on bank of america and the rest of the sector right now. mike santoli, want to bring him into this conversation we were talking about whether we would be surprised in terms of where bank of america stands relative to the jpmorgan earnings that we just heard about yesterday and also citi. are you surprised on the net interest income issue and more broadly the revenue piece of it? >> i guess slight incremental surprise based on how slightly dramatic that squeeze is on net interest margins business mix you just never know exactly how it's going to fall they clearly are just -- they are not able to earn that much on existing loans and then, of course, there's a lot of variable rates out there that's kind of out of their control and then it didn't really make it up necessarily on the institutional side

trading was fine but up low single digit percentages there's one way to look at bank of america and almost nobody does as having an entire morgan stanley inside of it that's something that just because the old merrill lynch is obscured by everything else going on in the bank that business is operating fine. this he have tailwinds b of a is not having a vast amount of consumer and corporate loans. >> whiffle, before you g-- wilf go, what are they saying for the rest of the year >> 1.4 billion, the range was 1.3 to 3.6 last quarter was 5.1 not quite as big an improvement as jpmorgan. interestingly, looks like with their reserves they built a little bit extra in commercial but released a bit in the consumer they do have a very good pulse check on the consumer. if they've released a little bit

of their reserves from that subsector, that does suggest they think the strength of the consumer is pretty good. then that point of net interest, we need to hear more about that on the call. on the net interest income, i have a feeling they will talk more about thinking this is the bottom i think it's a bigger decline for the quarter than people were expecting. if they give guidance from here, it will improve again because the long end is getting lower, et cetera, et cetera that might give it a bit of a boost. down 2%. >> wilf, thank you for bringing us the numbers mike, thank you for helping us out. we'll be back to you we'll be hearing from goldman sachs plus we have billionaire ron baron joining us and sec claire man jay clayton and glen hutchins and anthony know tnoto and becky's interview with bill

gates. "squawk" returns after this. ♪ you can go your own way

it's time you make the rules. so join the 2 million people who have switched to xfinity mobile. you can choose from the latest phones or bring your own device and choose the amount of data that's right for you to save even more. and you'll get 5g at no extra cost. all on the most reliable network. so choose a data option that's right for you. get 5g included and save up to $400 dollars a year on the network rated #1 in customer satisfaction. it's your wireless. your rules. only with xfinity mobile.

good morning, welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. he can witt its this hour. a lot of earnings. could move numbers around this morning. the dow looking it could open off. nasdaq a little bit higher, about 13 points. s&p 500 off right now just about 5 points but so much going on in the headlines, joe >> including, andrew, eli lilly's late stage trial of its leading antibody treatment for

the coronavirus along with remdesivir has been paused by u.s. health regulators over potential safety issues. while no details are available yet regarding concerns, the news comes less than 24 hours after johnson & johnson announced it was halting the late stage vaccine trial after one participant reported what is called an adverse event. walmart plans to hold three separate savings events through the month of november rather than focusing on black friday, the day after thanksgiving the promotions will begin on walmart.com and continue in the retailer stores with the first such event scheduled for november 4th apple remains on watch following yesterday's introduction of the new iphone models. apple shares fell yesterday continuing a trend which has seen the stock fall on the vast majority of product introduction days that we've seen in th

past becky? >> thanks, joe joining us right now, legendary investor ron baron the chairman and ceo of baron capital. ron's long standing support for tesla is widely known. he bought it back at $40 a share when he couldn't persuade any other managers to invest today it is the top holding in the baron partners retail fund it makes up 45% of the fund's weight ron, good to have you with us. good to see you at a time that seems like a pretty critical one for the markets. how are you doing? >> great how are you doing? welcome to my house at sunrise. >> pretty good >> i was just walking out, i was telling my housekeeper i was a little nervous she said, you've been doing this for so long, so many years i'm alzner vows any time i get on this show today i was listening to you you have gates today, jay clayton today and you had lloyd

blankfein two days ago larry fink this is a serious program. what am i doing on this program. thanks for inviting me. >> you're in good company and here for good reason, ron. you've been navigating these markets and watching what happens for a long time. i know you have been a steady investor and one who says don't pay attention to the headlines, but the headlines these days are hard not to pay attention to do you still take that same investing strategy in place today given how fast the news cycle is, given how much of a whip saw you can see from time to time with some of the markets? how are you navigating that? >> we're doing the same thing we've always done being a long-term investor could i stop and go back about our firm we have 170 employees and we have a few more than we did this time last year and we're all working at a distance and we have been since march 13th my wife has a calendar on our refrigerator and she's just

crossing off the xs ever since then i'm hoping we get back to the city in january. we had a big interview in barons, a great interview a couple of weeks ago. he's my friend he was talking about how difficult it is when you are working at a distance and don't get to meet with people direct and don't get o interact with the people with whom you work, you are missing a lot. we have been positioned well what we're making money on now is the decisions and based on decisions we made five, six, seven years ago. so we're long-term investing we haven't done anything different. this year happens to be an exceptional year for us. this is probably the best year we've ever had when i was walking out i was trying to figure a sports analogy. when i was younger i could give you a sports analogy the only one i can remember now is sandy koufax and he was 71-3 for the dodgers. yogi berra was asking how he

perceived koufax he said, there must be a mistake in that record, 27-3 how could anyone win three games against him? this year we've had that kind of result when i looked in "the new york times" this past weekend, there was a -- when i talked about the stock market, you talked about how funds are doing, they give the top ten funds in the third quarter and baron partners fund was number one up 47.2% in the quarter and baron focus growth fund was number 2 up 43 or 44% in the quarter. and both of those funds are up 70 or 80% for the year and our fund to funds which is a fund investing only in baron mutual funds is up 32, 33 at the end of the quarter up 38, 39 right now. we've had a career year. >> how much of that is because of tesla if you watch the -- yeah, tesla is such a huge part of your funds at this point and that stock has had a pretty

phenomenal year. >> in those two stocks, in those two funds it's a very important part it represents, as you said, 35 or 40% of each of those funds and that stock is up ten times in the past two years or three years. we invested in it between 2014 and 2016, we invested $300 million, $320 million for 1.6 million shares at that time it's now 8 million shares five times split at $40 a share. the stock is now 400, 420, when we invested and i was on your program i was talking about how i believed we would make 20 times our money over 10 or 15 years and so far in the first four or five years that we've owned it the stock went up and down like a yo-yo. that would be expected because what they were doing is they were building facilities, hiring people, coming up with design. it's a reasonable thing to bet against them all these car companies, 50 of

them have failed and this guy somehow had made it through sheer will power and raised capital. now he has 50,000 employees and he has factories he's building three -- i want to get to tesla, too, and i want to answer your news question, but tesla's now building on three different continents, building in the united states, building in china, building in germany and you should expect more factories to be bulletin u wously over the next ten years. >> it's certainly gotten bigger. >> i'm sorry. >> it's certainly gotten bigger. you mentioned the volatility do you think the stock is past the volatility or do you worry that some of the robinhood investors and others who have been so attracted to what tesla has to offer, if there's any sort of shakeout, would that impact them? would volatility come back >> what we worry about are not stock prices when we're investing in business, we worry

about the business and the short term i can't have any clue about what's going to happen i do think that over it's now a $400 billion market cap. it was 40 billion when we started. i've said for a long time i thought it was going to be 1 to 2 trillion with what developments have taken place recently i think 2 trillion is the right number i think it's five times from here ten times in the past two or three years. for four years the stock didn't change and the business grew ten fold the business went from 2.8 to 30 billion ten times. the stock price didn't change. now the stock price caught up to where they were. now i think that their business can go from 30 or 35 billion in sales, grow 50% a year i think they're going to be doing 5, 6, 7, $800 million in sales in ten years on just cars. batteries is another unbelievable business, which i'm very excited about and i think that with that kind of results you're going to see five times appreciation. i was thinking three to five

times. we made ten times. three to five times to come in the next ten years two more doubles, maybe ten more doubles in three years is what the expectation is we're very excited about that. i want to get to battery day about what happened there and why it's so interesting. let me go back to news one of my friends, he owns cable television businesses, he did own cable television businesses, he sold them he was telling me -- he's been an investor with us for five, six, seven years he was telling me a couple weeks ago, he says, ron, the news is so awful i've made -- you tripled my money in the past five or six years. you know, i have a tax free account. shouldn't i sell everything and come back after the election shouldn't i do that? and so my first question was, so, jeffrey, what is it that you know about all of this news, about the election, about china,

about, you know, everything you read about in the paper every day, what different impact -- you know, understanding do you have of those news events than what everyone else has where's your advantage and then if you -- if what happens is that if you're right and the market does go down and it goes down sharply, then what's going to happen and you sell and if the market goes down sharply, what's going to happen is you're going to say to me i'm going to call you up, jeffrey, congratulations on getting it right you should buy back now. you're going to tell me, ron, it is so scary i can't possibly buy back that's on one side the other side is if the stock market happens to go up a lot in the meantime instead of going down as you expect, then what's going to happen is i'm going to say, you are missing it. you should be investing. i'm missing it, i'm not going to buy. if you sell you're not coming back when you do sell you'll take that money and have it in cash

what you know 100% for certain is the value of your cash is going to fall every single year just like it has in every democracy for thousands of years. so you're turning an investment that you had in these great growth businesses and that you know are going to increase steadily over time or grow faster over time into something that you're 100% certain is going to decrease 3 or 4% a year every year in 17 years it will be worth half as much as now, 17 more years worth half as much as it is again i am 77. i don't know how many of these halves i have. >> you have a long time left to go we do not have a lot of time left on this interview, ron. i want to get to your thoughts on the idea that covid has brought a lot of that growth forward. i know you look at all of these technology companies i know you have things like hyatt and vail and how those stocks are affected by covid what do you mean when you say the growth has been brought forward? >> well, businesses that

invested in technology -- lloyd blankfein was on a couple of days ago what he was talking about how he worked at a public company, a private company and they were both named goldman sachs when it was private what they did is this business, you know, when you're working for a private company, they were making as much as they could all the time they didn't care about smoothing earnings when they were a public company in order to get a higher valuation you want your earnings to be relatively consistent. so he said what he -- said that's the difference in the businesses what we do is we invest in companies that are continuously investing in themselves, penalizing the current results and when they do that the stock prices reflect that element of penalizing earnings and as a result they're less expensive than they would be when companies ever announce that they're making these investments in businesses to grow bigger, then what happens is that the stock prices go down that's when we have a chance to buy more we are always buying but we're

buying more when stock prices go and we're always holding when covid comes along, there's nothing really that's changed other than those businesses that we're going to be investing so that over a long time they would get these results of these investments, then what happens is the results of those investments, everyone social distances. they work at home. they work from the cloud and so all of these businesses that we're relying upon a technology backbone, those businesses are benefitting from covid and growth -- we're speculative whether it's going to take place. it's going to take place right now. that's what i mean by moving forward. so, ron, though, hey, it's andrew real quick, are you concerned at all given the growth of those stocks that it's still going to take some time for effectively those company's earnings to grow into those prices? meaning to some degree do you have any concern that those stocks are over inflated or do you really believe that all of this is just accelerated and

that the valuations accurately reflect where they are today or, frankly, where they'll be, better yet, 12 months from now >> if you think something like tesla is going to go from 30 or 35 billion in sales to 6 or 700 billion in sales in ten years, to 20 times, and is that over priced right now how many businesses that you think are like that? and then when you think about their business, they have -- this battery day they described how the suppliers weren't keeping up with them nvidia wasn't coming -- developing the chips fast enough so therefore they had to develop their own chips. the reason nvidia wasn't doing that was because they were supplying other car companies who didn't need the chips as rapidly as tesla did volkswagen will be very successful most of the other guys are having difficulty. so what i think about the

opportunities that these businesses have are so enormous and for most businesses they're going to have to change models and people want to invest in growth they want to invest in businesses will dana talks about investing in companies that will triple in size in five years here's a company that they think is going to go 20 times in five years. what's the right multiple. you're not including what's going to happen when they go to autonomous riving, ride sharing, what's going to happen when they have a battery that's more powerful than others? they take out the stop signs on the highway, use different materials and, therefore, you get 500 miles for a charge and where are the batteries going to come from? the batteries are the critical point that's allowing -- stopping the company from growing even faster. getting enough batteries they make the money, investments in research for chips. they invest money for batteries because the battery companies

aren't investing fast enough by the way, when i go to restaurants, we sit on terraces. people comment to me and they say, oh, there's the tesla guy oh, there's the tesla guy, because of you the tesla guy. and what i want to be known as ultimately is not just the tesla guy but also the spacex guy and this is too early for me to really talk about t. it's a private company still, and a valuation on the company is now 43, 44 billion and we're an investor in that probably on 1% of the company and what i think in that one is while i'm thinking about tesla, we made ten times so far, 3 to 5 to come, we'll make 30 to 50 overall. in spacex i think that that has a chance to be just as large as tesla. we'll see. but in the next couple years i'm going to be talking to you a lot more about spacex than i'm going to be able to do right now. >> ron, i think andrew was also asking you about some of the other stocks you guys have 450 investments in

your portfolio that includes amazon, shopify, twilio, peloton, zoom. are you thinking the same with all of those companies or are there points where you worry that any of those stocks have gotten ahead of what you think the growth will be and how long it will take to catch up to the stock price? >> it's very hard to come up with the exact valuation of businesses all the time. markets are not efficient when companies are growing as fast as those businesses are we have 17 funds and of the 17 funds ten of them are five star by morningstar and four of them are morningstar and we've had this -- this is a record-breaking performance for us as far as all those companies that you mentioned, they're owned by some -- by a lot of our funds, not in the size that i own tesla, of course, but across the board we have investments.

ne they've changed and working and exercising at a distance zoom calls ronnie, what are you doing standing near your desk. the next combined, what are you doing? you have to take more time it changes your life it's changing the way you hear music and shopify is allowing small businesses to be their partner. amazon, aws is amazing they're going to separate those businesses and regulatory requirements they're expert investing 454.

they're opportunities. >> splitting off from regulators do you think that's the case and you're okay with that as an investor >> i just made that up this second >> i think that if it did, those businesses when they get broken apart actually tend to do that do i have time for this one. >> i wrote this in my quarterly level. in temple high holy days this year, 5781 it is, jewish new year, and i wrote a rabbi and

the elterrelly will work more safely children will play fully fed in the parks. the rabbi, making the point. zakaria, 25 years ago when jews were exiled. and he said, you know, thinking at the temple it's not governor cuomo. it's zakaria one thing, they longed to go back to jerusalem. long to go back to jerusalem they longed to go back as it was. as it was. he said, that's not the way people want it this guy is horrified, our rabbi -- i shouldn't call him this guy, our rabbi was horrified that children -- the reason he says the schools, everywhere else were closed,

they weren't closed in new york. why is that? and then his point was that there's 30 million children who are food deprived, don't have enough food and he says the only way they're getting food in new york city for those children, they were getting their food from schools and then he said and health care what kind of a health care system do we have here where it's so frail that we don't have -- it's a just in time health care system so when i listened to him describe the circumstance, he said this is what -- when i listen to biden, this isn't meant to be a political support of biden or anything, i'm not supporting anyone but he has build back better. this is the same thing this prophet zakaria was saying 2500 years ago. israel, the jews when they went back to jerusalem, they wanted something different than before. they didn't want corruption. they wanted to take care of the needy. the same thing happens here. when we go back to new york, we

don't want to go back to new york as it was, we want to go back with better education, better health care, better food security for people, better technology, better infrastructure so when i think about all of the needs we have in our countries and cities, jerry seinfeld says we're going back spike lee says we're going back. i say we're going back i'm so convinced of that we had the 48th and 49th floors of the general motors building and we took the 47th floor also which we haven't built back. but we're going back and when we go back new york will be better than it was. it will be better than it was. and the services that we need, that's where there's opportunities. there's opportunities everywhere >> opportunities everywhere. let's hope both you and zakaria are right. ron, thank you very much for joining us this morning. it's good to see you >> thanks for inviting me. >> been back since april good times

earnings from goldman sachs. the number and market reaction straight ahead the numbers will be out soon from goldman and we heard from bank of america already this morning b of a reporting 51 cents compared to expectations of 49 expectations here. "squawk box" coming right back from times square. time now for today's aflac trivia question. abba had 14 songs on the billboard top 40 but only this one made it to number 1. the answer when cnbc's "squawk x"onnues aflac! now tell me, what does aflac do? aflac pays you money directly to help with unexpected medical bills. and is aflac health insurance? no, but it can help with expenses health insurance doesn't cover! that's right. are there any questions? -coach! -yes? can i get one of those cool blue blazers? you know i can't play favorites. alright let's talk coverage. it's go time!

get help with expenses health insurance doesn't cover. mmm hmm! get to know us at aflac.com omnipod delivers insulin through a discreet waterproof pod... to help simplify life. no more daily injections. it's game-changing. take your insulin anywhere with a small tubeless pod. and the wireless controller helps deliver the right amount of insulin. get started with a free 30-day omnipod dash trial today. go to omnipod.com for risk information,

instructions for use and free trial terms and conditions. consult your healthcare provider before starting on omnipod. simplify diabetes. simplify life. omnipod.

now the answer to today's aflac trivia question. abba had 14 sochngs on the billboard top 40 but only this one made it to number 1. the answer "dancing queen. something about balloons something about -- i don't remember never mind anyway, goldman sachs, you saw the dow, right the dow jumping a little bit it was unchanged now it's up.

goldman sachs, these numbers, the 12i7estimate was 557 this is like the good old days if this is clean, revenue 10.78 billion. that is above an estimate of 9.46 billion and nice to be -- to work there because compensation and benefit expenses worth 3.12 billion. 3.12 billion operating expenses 5.15. asset management revenue 2.77 billion. consumer and wealth management revenue, 1.49. equities revenue 2.49. global revenue 4.55. provision for credit losses, 278 million and investment banking revenue 1.97 billion the stock off the high for the year, 250. so it's not there, obviously, and most of the bank stocks

still are down anywhere around 30%. disappointing, andrew, and becky. no net interest income did i see here wilf, i don't know, can we talk to wilf about it is that not a great business, net interest income? you just sit there twiddling your thumbs. the money just sits there making -- when it doesn't -- when it's not working, there is no yield curve, you wonder why bankers are cranky oh, yeah, we'll hold it. we'll hold it. sure, right? yeah and we'll give you a little bit, a couple of crumbs. >> right >> that's why. anyway, goldman, pretty good numbers. we're waiting on wells fargo >> what's that >> very good i think that may have been the one number -- >> the what? the 2.59. >> 2.5 billion, yes. >> right

okay andrew >> we'll talk a lot more about goldman's earnings along with the other earnings reports that we've been hearing about all morning. we'll get wells of course, wells fargo, that is, in the next hour meanwhile, while thousands of airline workers have been laid off, tonight in a new cnbc documentary about the air travel industry struggle with the pandemic, shepard smith talks to a pilot who's still waiting to hear here's a preview >> reporter: laura woods is a pilot for a major carrier. she and her husband max, who flies for another airline, live in denver with their daughter mollen they're expecting another baby in december. for laura and max, getting here has been a journey. >> flight school typically takes about a year or two. it usually takes a few years to get up to 1500 hours, which is required to go to a regional airline. >> reporter: is that expensive >> yes

flight school conditioning veany expensive. usually runs about $80,000. >> reporter: just when they should be reaping the fruits of all of that work, the pandemic has thrown their industry and their lives into turmoil >> you can hear a lot more of laura woods story tonight if you tune in to the special shepard smith reports, air travel in turmoil tonight at 8 p.m. eastern time on cnbc right after the news with shepard smith. becky? >> thanks. when we come back, sec chairman jay clayton will join us then bill gates on public health preparedness and the conspiracy theories and his support i spoke to him yesterday here's a preview. >> two people are most targeted and those are dr. fauci and myself. >> have you talked to dr. fauci about it >> yeah. he and i don't talk about conspiracy theories because, you

know, neither he or i, you know, have -- know how to stop that. >> much more of that interview when "squawk box" returns. check out the futures, dow up by 51 s&p relatively flat. nasdaq up by 51 as well. "squawk box" will be right back. ♪ ♪ ♪

carried stress for so long, suffered so much, ♪ but the tools to help us process our everyday, have not existed, until now? we made a space with our reality in mind. it's called shine. the daily self-care app created for all of us. meditate, connect and reflect for free at theshineapp.com.

welcome back to "squawk box" this morning we are now just three weeks out from the election, and a lot of factors weighing on investors from the coronavirus vaccine to a stimulus stalemate which can lead to a lot of volatility on the markets. joining us on the phone is sec chairman jay clayton mr. chairman, we appreciate you joining us this morning. want to talk to you about the prospect for volatility and the study you just conducted i know you're doing a roundtable on it as well, looking at the credit markets and the credit markets' connection to the equity markets what did you think was the biggest finding from that? the reason i ask is ahead of

this election going into it, if we do get into a really volatile situation, what preparation plans is the sec taking in advance in the same way some of the big ways and weeks of unclear answers. we talked about these subjects look, you bring up a really good point. it's so important to confidence. how they performed in march and april when we had times of uncertainty and stress

it brings confidence back to them that understanding of the size, scope, and interconnected nature if we have any additional periods of uncertainty going forward. we have a great lineup we have mark carney, lori logan from the fed, glen hutchins, gary cohn all going to talk about that interconnectedness. when you have times of uncertainty. >> is there advance planning before an election is that something regulators like you do? especially when there's such anxiety that we won't get an answer in any immediate way? >> andrew, i don't think anybody is thinking about a particular event but there is advanced

planning both on the funding side, which is much more, you know, the purview of my friends over at the federal reserve and the treasury, and then on the operations side. we're always mindful that the pipes here continue to work and whether that's a cyber issue, information issue, those types of things. we get together and talk about those both what i say operational issues and funding issues markets need funding to work and we think about anything that's going to dry up the type of liquidity you need for markets to work or affect the operations and whether it's an election, you know, an unexpected pandemic or something else, that's part of our job >> mr. chairman, i wanted to run through a couple of headlines for you. story in the wall street journal today, you talk about a new role in china for ipos. i'm curious if you've been

thinking about it, effectively in china they're now forcing the banks, underwriters that take companies public to effectively eat their own cooking. they're forced to buy into these offerings. it's created quite a windfall for them given the success of it it's an interesting idea do you think it should come to america. >> well, andrew, the point you make is are the people who are selling the stock, do they have incentives aligned with investors? and we do it a different way it's a time tested way in america. underwriters in sec registered ipos, they stand up for disclosure if the disclosure is materially false or misleading, they're on the hook and that aligns their interests with the purchasers. you require people to take an economic stake, you align the incentives i'm not criticizing this, but if

you're going to be a buyer, you may want to actually get that stock a little cheaper than you otherwise would. there are different ways our way of requiring responsibility on underwriters is a time tested way and i think quite effective. >> mr. chairman, i wanted to drill down on an issue we talked about several times which is spacs. you suggested you'll look closely at spacs we interviewed larry fink. when things are as red hot as we think we have unfortunate accidents. spacs could replace private equity platforms how concerned are you? when you said you're going to look into it and focus in on it, what does that mean? >> andrew, i think we talked about it before but let me say it again and be a little more granular there are two transactions there's the initial distribution

of the spac shares and there's the time of the de-spacing transaction. at that time we really want people to understand the incentives of the sponsors, the incentives of the company being purchased. why are people doing this transaction? who's getting what from whom are people making a premium? it's fine to make a premium. we don't mind that, but we want investors to understand that there's another difference in an ipo you have a road show you have many buyers, potential buyers kicking the tires on the company over time. there's less of that in a spac transaction. people should understand that, that you don't have that institutional investor base kicking the tires around the transaction to the same extent that you would in a traditional ipo. people should understand that. i'm not saying there are fundamentally problems here.

like i said, i like competition, i like direct listings, this type of thing, we need to make sure investors are getting the same good disclosure >> jay, one final question for you. you referenced recently saying that you might allow what's called a tokenized etf, this gets into the world of bitcoin and crypto give us an update on what you meant by that and what may be in the offing here. >> well, what we were saying is that the distributed ledger technology, similar technologies, whatever you want to call it, it can bring efficiencies to all sorts of things, including the way etfs operate. i wasn't say we have an etf of a token or security. if a token is a security, it can go in. we want to make sure we are facilitating use of this technology we've been working with the sec on stable coins, and we're open

to using them but if it's a security, have you to follow our rules. >> mr. clayton, we are running out of time. we saw a report in the dallas morning news that suggested the nasdaq may move some of their business to texas, governor abbott is trying to bring some of that business to texas. as a long-time new yorker do you have any issue with that >> i'm not going to answer it as a long-time new yorker because i wear my heart on my sleeve if things are moving around, we want to make sure the systems continue to work to the extent people are talking about movement, our biggest issue is making sure when you move, everything keeps working >> okay. mr. chairman, we appreciate you joining us and look forward to talking again very, very soon. >> thanks, andrew. a lot more coming up on "squawk" this morning. north island chairman glenn

hutchins he will be participating in that virtual event hosted by the sec later today. he's going to join us first though in a moment where in texas, andrew big place. i've got some relatives down there, you know? you don't know which place >> austin maybe. >> austin or dallas? i don't know. >> we'll see coming up, more. my father always reminded me, "a good education takes you many different horizons" and that sticked to my mind. so, when $1 a day came out, i said, "why not"? why not just utilize that resource.

and walmart made that path open for me. without the $1 a day program, i definitely don't think i'd be in school right now. each week for me in school is just an accomplishment. i feel proud every step of the way.

coming up, bill gates sounds off on the conspiracy theory surrounding his support for vaccine development. also his take on how the united states is handling the pandemic. and then later apple unveiling four new iphone 12 models with 5g and we'll take a look at the atesfeur and what you're getting for your money. we'll be right back. this is decision tech.

find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. apps except work.rywhere... why is that? is it because people love filling out forms? maybe they like checking with their supervisor to see how much vacation time they have. or sending corporate their expense reports. i'll let you in on a little secret. they don't. by empowering employees to manage their own tasks, paycom frees you to focus on the business of business. to learn more, visit paycom.com

bill and melinda gates foundation conspiracy theories. and about the responsibilities for it and the pandemic compared to other countries and for our response in most respects. it's not good and we would have expected it to be good i'm going to have the stage and safe practices in a strong way >> do you think we're better prepared if we were looking at a very difficult fall and winter >> no.

the willingness to admit we've done certain things wrong, there's still an opportunity for that most results come back way later than they should most other countries don't do it that way that's still kind of mind blowing to me. we need to be willing to say, okay, what's working, what's not working and prioritize which activities are valuable like school versus others that cause even more infection like certain public gatherings that are not it's sort of every state for themselves without having a strong voice that they've been trained to provide

>> what do you think needs to be done about that? how does it get fixed? i ask because you're somebody who's always been pretty apolitical you are more outspoken why is that? what are you seeing? >> the area, the gates foundation is very expert in is infectious disease including respiratory diseases that's why speaking out about the preparedness that was importa important, we felt that was speaking up. i can talk through more countries about what the quality of the response has been whether they're bad governments in other respects or not. expertise of seeing what have they done with testing, mask wearing, contact tracing, it's

quite surprising some have done very well and some have done poorly. that's a technical thing, not a political thing. most take advantage of the scientists and listen to them, they don't undermine them and attack them. >> have you been shocked by the push back by americans >> that speaks to what are the leaders saying we have to admit the scientific community thought it was about coughing we didn't know that a simple mask and once we got into april we developed that evidence and very clear message starting in may. so i am surprised since that

time given that we tell people to wear clothes. i don't think of it as some ultra important freedom thing that, you know, there's another part of your body, at least for the duration of the pandemic we're asking you to cover up most of the time and so mask compliance in the united states is quite poor and yet the costs of the mask and the productivity loss from the mask, it's quite an intervention and really other than our social behavior, the primary tool we have until these therapeutics or vaccines get out there in big numbers. >> do you hear people -- i mean, i've been shocked that the blowback i've seen directed at you over vaccines for the stuff, but for the masks too, how frustrating is that to you >> well, the whole media space

where people are dealing with the bad news of the pandemic has spun off a lot of conspiracy theories and the, you know, two people who are most targeted in those are dr. fauci and myself in terms of do we have some malign reason to think vaccines are important in general that's unfortunate, particularly if it undermines the mask wearing or if it undermines as the vaccine gets approved. are we able to have people protect themselves, their loved ones, the community by participating in something that's been proven to be safe. >> have you talked to dr. fauci about it >> yeah, he and i -- well, he and i don't talk about conspiracy theories because, you know, neither he or i, you know, have -- have -- you know, know how to stop that he and i talked about the

antibody studies, the scientific team at the foundation gets on the phone with him on a regular basis because he's seen company innovations that we're not, we're seeing things he's not because we have a global view. very rich dialogue with the private companies on a regular basis. so, you know, we're saying, okay, let's -- how do we get antibodies going faster? what are we thinking about the different vaccines so it's a helpful collaboration, which we've always had you know, he's an infectious disease expert those used to be very obscure. people didn't talk about that on the tv tony and i, we love talking about that. >> we do have more to come from our conversation with bill gates. that's coming up in the next hour, including, andrew, his thoughts of regulating big tech. that's something he knows well because he lived through it as the head of microsoft. andrew >> thanks, becky great discussion look forward to hearing his comments on that as well we should mention, wells fargo's

earnings just crossing the wires. quarterly earnings of 42 cents falling three cents short of estimates but revenue was short of forecasts reaction to those numbers when we return. looking at that stock off the 1.5% off the news. "squawk" returns right after this 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.

nature's bounty is here for you. ready to take your immune support to the next level? the number one herbal supplement brand has everything you need to help keep your immune system strong. immune support comes naturally with nature's bounty.

adapting. innovating. lsetting the course. but new ways of working demand a new type of network. one that's more than just fast. you need flexibility- to work from anywhere. and manage from everywhere. advanced technology. with serious security. and reliable coverage, nationwide. forward-thinking enterprises, deserve forward-thinking solutions. and that's what we deliver. so bounce forward, with comcast business.

good morning results from wall street's biggest banks coming in fast we've already heard from bank of america and goldman sachs. we just got wells fargo. bill gates on the record, on beating the coronavirus and also how much eventually treatments are going to cost. more of that special interview is on the way. and as stocks stage an impressive comeback from this year's lows, we've seen another phenomenon the rise of the retail industry. an expert on just that, sofi ceo anthony noto the final hour of "squawk box" begins right now.

good morning and welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin the u.s. equity futures up 36 points right now goldman sachs, the dow component had pretty good numbers. last i looked that stock was up about 7. so not everything in the dow is up obviously today but just goldman would normally be worth more than 29 points but there are some other things going on the dow we just had wells fargo which i think becky's going to talk about and we can talk about net interest income again. we've got that going for us. >> yes. >> someone said that yesterday, that wilf got to come on and talk about it. i think i said what everybody's saying, goose bumps basically is what happened. .717 you saw that, andrew you were included on that email. anyway, wells fargo's out.

becky, take it away. >> those numbers coming in, joe. let's just talk about this earnings came in at 42 cents a share. that was three cents below what the street was expecting revenue was below the wall street forecast. they benefitted from higher equity markets and that was offset by higher expenses and lower net interest income. looks like the net interest income, the margin was 2.13% the return on assets, 0.42%. i know wilf has been digging through those numbers, too >> and we're going to get to him right now. let's get over, wilf he's been looking through the third big bank reporting this morning. wilf >> just to add to what you were already saying on the wells fargo point is to compare the credit loss decline compared to some of the other banks. that theme across all of the commercial banks, which is encouraging. wells fargo q2 for credit loss was 9.5 billion down to 0.8

billion. that compares in scale of reduction from jpmorgan which went from 10.5 to 0.6. all of them, stils, wells fargo seeing that which is encouraging. pressure for wells fargo but not to the same extent like bank of america on net interest income there we go, joe, for you. and i guess coming into this quarter one of the questions we had was will there be a continuation like there was in q1 and q2 of the place to be was in investment banking and perhaps not to the extent that it looks like here because goldman sachs, very strong numbers as you mentioned in the face of the likes of bank of america. slightly disappointing 10.8 billion revenue eps, 968, well ahead of the 550 estimates. high teens roe hasn't been the case for goldman for quite some time i will say investment banking and trading, similar theme which

is lower quarter over quarter, higher year over year, and their beat, not to look down on it, came in the asset management division where they've got 2.8 billion. forecast was for 1.8 billion very strong numbers for goldman. you're seeing bank of america down 2%. sort of summarizes a theme you've been carrying out obviously that bodes well for morgan stanley who report tomorrow. >> operationally how much improvement or not do you think we've seen now at wells fargo? if you were to grade -- he's no longer the new ceo i guess he's been there for a year. >> not much so far and you continue to see the lower estimates over the last couple of quarters across a number of measures so i think need to start to see that to turn the corner relatively soon i think he became ceo about 12 months ago

john sh rrewsbury the outgoing e will join us on "closing bell" later on today >> wilf, i was hesitant to talk to you nbc sports released the premier league 1ked dschedule i've got legitimate reason to talk about soccer. >> awesome. >> big presence in soccer. i only see you every three months when the net interest income stuff comes out i wanted actually to ask you about the article that was on the front page of the wall street journal yesterday you know billy bean, legend out in oakland. >> "money ball". >> he's going up to that sports outfit up in boston that owns the celtics and i think the red sox, at least john henry -- >> liverpool. >> yeah, liverpool are you a liverpool fan? i mean, is this big news you're not >> i'm not a liverpool fan they've been awesome

arsenal are recovering. >> ass what? >> you're saying that, what? arsenal. anyway, billy bean is going to bring possibly -- i hear he's a "squawk box" fan believe it or not. he is going to bring to soccer and to that league, what is it, the football clubs in london >> i don't think liverpool need his help as much as arsenal do liverpool are champions. there we go, i'm sure he can make them better he's a bit of a legend great movie. >> i wanted to talk to you about that yesterday i was hesitant today because we have a lot of important things to talk about but then i realized we do have a big presence i'm not sure i'm going to get yelled at. it's on peacock, too. >> it's on peacock there are three or four pretty awesome games including manchester city versus arsenal ever ton versus liverpool.

>> thanks for playing along, wilf this is the way knowing some of our assets and knowing how we can rub their back, maybe they'll mention "squawk." >> i don't know how often rebecca and the team mention "squawk" and the "closing bell." >> are you on "closing bell" now? is that where i can find you >> shrewsbury. >> thanks, guys. >> see you later. >> thanks, wilf. >> great project he's doing, too, withhis dad's tapes and i saw a piece of that last night on shep smith. jack-of-all-trades. less than three weeks from the 2020 election and democratic and republican efforts to pass another coronavirus relief bill, they're still stuck. there is a new development that chamber will take up aid legislation starting next mon y monday mcconnell called the new plan targeted relief for american

workers. it is quite possible democrats will deem it inadequate. our next guest says this is exacerbating the country's uncertainty. joining us is glenn hutchins glenn, it is pretty frustrating watching this play out there is a great need in america right now. what do you think of what you're seeing in congress >> look, i wish they would prioritize stimulus over these supreme court hearings myself. becky, i'd like to -- the reason for this is i'd like to underscore something bill gates said on your show here, which is how bad the american response has been to the crisis he went through the details, i don't need to reiterate them for him, but the outcomes -- both health outcomes and economic outcomes are much worse than they needed to be and much worse than our economic peers. there's a study up on the

brookings website that says if the united states had the health care economic outcomes, the average would have had a little more than 100,000 less deaths and 8.6 million more people employed so as a consequence of the poor management of the crisis which bill gates outlined i think very astutely and in depth, we have an economy that is -- continues the shoft wear shuffle and with the fall resurgence of the vi s virus, situation is going to get worse. even that was pretty bad because a number of the people are being permanently laid off the economy is very weak especially for vulnerable populations in communities of color. the consequence of that is we really, really need significant stimulus my view is on the order of

about $2 trillion and some of the economic studies that have come out now, very preliminarily, another one up on the brookings website that demonstrates that unemployment insurance is the most powerful tool we have now so i would have a very large bill with a very substantial focus on unemployment insurance and get that going very, very quickly. >> it sounds like president trump wants a big bill and wants it quickly, too. why doesn't nancy pelosi take him up on that and leave it to the senate to take care of it. >> i'm not expert in that. i'm not sure what president trump wants. he's been back and forth but i do think it is time to get the type of negotiations that work between the treasury secretary and pelosi in the past should work now they're prioritizing we're in the middle of the political season, things are hot and heavy.

we can't do anything about that. i wish they would get back to paying attention of the economy and the american people particularly those who are most vulnerable. >> glenn, the economic impact, what you foresee happening, most people we talk to say it is needed, stimulus, and the longer you wait the more heavy the damage that will be done the harder it is to undo that. do you have anything at the brookings institute where you are measuring out how much worse it is on a weekly basis? >> there are two or three things one, there is some amount that is pure dead weight loss the longer you wait to stimulate the economy to get back to the growth trend we had prior to the pandemic, the more lost economic output that just goes away and that's what's known as dead weight loss. that's what we're dealing with right now. big point number one getting back to the growth trend

that we had prior to the pandemic, it's a new study i referenced that shows that that requires about 2 trillion in stimulus pretty quickly. the second is that the longer people are left unemployed, the more detached they become from their jobs, the harder it comes for them to find new jobs and those new jobs require information from employers most people think as long-term consequences third, the longer these small businesses slip in the american economy and stay closed, the more of them are permanently closed the yelp data we cited a couple of times on your show is not very encouraging it's really time to get the paddles out, get them charged and get the heartbeat going. the longer we wait, the harder it gets. >> there were a couple of times on previous appearances you

advocated very strongly for a national lockdown. >> joe, i do not at vdvocate fo strong lockdown. i said a national plan. >> you didn't want a lockdown? >> i said national plan very similar to what we had in new england and the northeast states which forced the economy to lock down and certain parts not based upon science >> when i heard it i actually said, there's no way we're going back to a national lockdown. >> i remember that exchange. i remember that exchange which i wanted to clarify. i said national plan, not national lockdown. >> there is something called video. >> yeah, let's go look at it. >> okay. the other thing now in terms of deaths per hundred thousand the u.s. has performed poorly. in terms of case fatalities, we're better than just about anyone else. 2.7 deaths per case and that is

better than france, italy, the u.k., switzerland and some of those are multiple so the spread obviously occurred here in terms of dealing with the virus and the health care delivery that we gave people that had it, it's some of the best care, whether it's from remdesivir, ramping up some of the other -- whether it's serum with antibodies, whatever it is, whether it's having enough ventilators. however you want to look at it, in terms of that number, 2.7 is 1/3 of some of the countries that you're talking about that dealt with it much better. >> so i keep coming back i understand what you're saying. >> it's on hopkins it's on the hopkins website and anybody that wakts nts to look i can go to johns hopkins and it's

death rates and ranked. >> i'm going to defer on the science of this to bill gates who knows a lot more about this than i do. i keep coming back to the fact that over 200,000 americans have died and that that's 2.5 times the number of soldiers cumulatively that died in korea and vietnam in the united states personally i think we've paid insufficient attention to those deaths that's the main number i keep coming back to but i think you're absolutely right, joe, that one of the things that's been great, when he thought about this, the regeneron tool has been used increasing understanding of therapies like steroids that we've learned from the gruesome experience we've had and vaccines i've said from the beginning of

this that the american innovation and the american science will lead us out of this, and that's what's happening and i feel very good about that i just wanted to advocate the use of that time exactly how bill gates put it in the management of the crisis before now and from now until we get through it >> glen, i want to just ask you given that joe was talking about the death rate how you think about the death rate versus the economic damage that has been inflicted upon this country because of the continuation of this pandemic relative to other countries. so you look in asia, dr. scott gottleib has talked about this at great length, the number of people getting this disease in those countries that it's allowed their country to open up

in ways ours has not you talk about the number of people that died, which is terrible unto itself, the most in the world, and the economic damage as a function of this. >> i think there's a couple of points there, andrew one is the plan that i advocated for i think, which versions of which have been applied in places like canada and germany i think it's probably not constructive compared to south korea, japan and have done so vastly much as we have if you compare it to germany and canada, you can see plans put into place based upon science to open or reopen as bill gates put it, high functioning, parts of their economy. they had masks, testing, socially the consequence of which is two things one, they had more economic activity during the crisis as a

result of which they had less loss of economic activity. less made up for and more stimulus worst economic outcomes and more use of the fiscal balance sheet to address the issues, but also that's only about half of the loss the other half of the loss is not unlike veterans who come back from wars with long-term disabilities that result in their contributions less full some in the journal of the american medical association will come to long-term respiratory death, it overall reduces their contributions to the economy, which is a personal substantial loss and economic loss to the country. >> glenn, thank you for joining us today

it's good talking to you we will talk to you again soon. >> by the way, i'm getting a new iphone >> i need one. mine's cracked >> i can't wait for 5g >> we're going to have you back. we'll talk more about that next time thank you. >> next time. coming up, a lot more from becky's special interview with bill ghats on winning the fight against coronavirus. what he learned about government regulation running microsoft as we head to break, here's a preview. >> i was naive at microsoft and didn't realize that our success would lead to government attention saying, hey, i never go to washington, d.c. ♪

♪ ♪ ♪ ♪

coming up on the other side of this break, we're going to ask sofi's anthony noto for his comments on e sethri of the investor class stay tuned, you're watching "squawk" on cnbc

as business moves forward, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers... and deliver our products. but no matter how things change, one thing never will... you can rely on the people and the network of at&t... to help keep your business connected.

to a world that must keep turning. the world can't stop, so neither can we. because the things we make, help make the world go round. they make it cleaner, healthier, and more connected. it's what we build that keeps things moving forward.

so with every turn, we'll keep building a world that works. every decade there's a new generation of technology that provides a step change in what we can do with our iphones the next generation is here. today is the beginning of a new era for iphone >> cool. black background and black outfit that was apple ceo tim cook at yesterday's virtual event revealing the iphone 12. all four of the company's new models support faster 5g networks is that enough to entice consumers to shell out $1,000 or

more for some models joining us is tim lah senior research analyst at barclays we've asked that question three or four times this morning, tim, about whether that's enough. i think we've got a firm maybe maybe for some, maybe not for others where are you? should i run out and get one now if i can scrape up 1100 bucks? >> well, we've been a little bit -- thanks for having me. we've been a little bit more skeptical on the iphone side the last few years it's been a time since they've had a real hit the 10 was supposed to be a super cycle as well. we didn't really see it. we've seen a lot of changes as far as customers willingness to pay since the iphone 10. there's been a lot more mixing down of course, now the new feature here is 5g and it's really -- you know, when we have a new technology, we struggle with is it worth the cost? what's it going to do with my battery? what's the coverage look like?

we think the key benefit for them, you've heard this, the install base is very old so we are due for an upgrade cycle it's been several years since we've had one. >> just getting me out of breath fairly priced here were the ecosystem and the services that you think of with apple, is that enough to you is port where it is right now is it sort of a medium warm super cycle, whatever you want to call it >> yeah. we do struggle a little bit with valuation. our target is showing some down side technically it would seem a little bit of a disconnect between what's gone on with actual fundamentals and the valuation. i know everyone is very positive on services and wearables and these new iphones but in reality the last three years 80% has gone on tax rate and buy back

and fundamental strength at the company. this is a new strength and we'll see how it plays out there is an opportunity to up sell a lot we're still 20% below iphone of five years ago it's been a long time coming there's definitely scope for the upgrades here. we think it's still given how much the valuation has moved and the fundamentals really haven't, we struggle a little bit with the stock price here. >> investors are weighing -- with the fee today, it's up 26 cents at 121 and change so they're -- i don't know, definitively up 26 cents tim, thank you. >> thanks. ic> coming up, breaking producer pre. we'll try to fix that if it's broken stay tuned "squawk box" will be right back.

taking california for a ride. companies like uber, lyft, doordash. breaking state employment laws for years. now these multi-billion-dollar companies wrote deceptive prop 22 to buy themselves a new law. to deny drivers the rights they deserve. no sick leave. no workers' comp. no unemployment benefits. vote no on the deceptive uber, lyft, doordash prop 22. one ride california doesn't want to take.

doordash prop 22. when was the last time your property tawhat?l went down? never. are you kidding me? for years, the residential burden has gone up. while the corporate burden has gone down. prop 15 reverses that. it closes corporate loopholes and invests in schools, small business, and firefighters. and when the big corporations pay more, your tax bill goes down. that's right. a savings of a hundred twenty-one dollars a year for the average home. give homeowners a break. vote yes on 15. live breaking news the expectations the numbers year over year

double expectations. ex food and energy up 1.2. that's noteworthy because that is now the highest year over year rate going back to february pre-covid when it was also 1.2 if we take year over year ex-food and energy and trade, that's up .7 hotter than expected top to bottom the producer prices unlike cpi are definitely on the warmer side a little further up in terms of the supply chain and the tunnel of our products coming through, but there's still something to consider, especially at a time when there are so many question marks as to how the economies of u.s. and others will gear up once we completely get on the other side of covid. how much demand will fuel price increases. many believe china is going to reach pre-gdp levels and a lot

is on the fourth quarter it may be in the mid 30s the fourth quarter if we get that closer to 7, 8, 9, 10%. we can get on the pre-covid side of this or awfully close interest rates here continue to drift lower but over seas, minus 58 for ten year. that is the biggest negative yield they've had since the end of april on a closing basis. becky, back to you >> rick, thank you good to see you. when we return, hear what bill gates has to say about big tech regulation and what he thinks some of those ceos should do right now tonight shepard smith talks about the pandemic and the effects on the air lines and the people trying to keep america flying shepard smith reports, air travel in turmoil premiers here at 8 p.m. eastern. stay tuned, "squawk box" will be right back

all morning we've been bringing you our conversation with bill gates on the response to the coronavirus and outlooks for reatments. i asked him about the potential cost of those treatments when they become available. although the pricing issues around medicines are very complex, in the case of the pandemic and for many other diseases the one positive thing is this innovation, including running very complex, expensive trials and so i personally have been quite impressed that the

pharmaceutical companies are doing very novel things, you know, putting their best people on this work and they're being willing to have manufacture other company's products the vaccines, we have deals with companies in india that will make the vaccines coming from these companies. likewise, the antibodies, almost all of the antibodies have not only their own company's factories but other company's factories that are pitching in to get that volume up very quickly. and so thank goodness for the pharmaceutical industry and the depth of knowledge, which historically has been supported by, you know, government funding research and in this case a lot of the money for the vaccine work comes from the u.s. government that's the one category that the u.s. has done the best job at, a very important job, is that over 10 billion funding

>> at the gates foundation you pledge $350 million to go towards the coronavirus attack plan and relief plan whampt have you learned from all of those investments? what's been the most interesting, surprising thing you've taken out of it so far? >> on the therapeutic sidether have been a lot of dead ends we funded you a case study that proved out dexamethasone which is quite valuable. we're working with gilead on remdesivir to change the form mu lai -- formulation so it's cheaper to make. you can make it at larger scale. we've funded a lot of things to look at libraries of drugs and the libraries weren't big enough we're funding a lot of vaccine work, including second generation vaccines that could be even more effective, could be single dose. you know, so we want to make sure we've got an entire portfolio, but these second source agreements are very novel and show, you know, the

flexibility that the pharma companies are bringing to this the fact we can get on the phone with the top people on every subject and get them collaborating, it's been wonderful to see >> you know, just looking through the changes that covid has kind of pushed on places everywhere, including at microsoft, so many workers who are working at home and some who are choosing to move microsoft and other companies. i've been trying to figure that out. it seems like a fair trade i wonder the longer we get into this if you think the more those jobs will be outsourced if it doesn't matter where you work? >> guaranteed learning over time, you don't want to outsores those jobs

how many companies say you can only come to the company half the time, 20% of the time and maybe sharing out their office space with other companies a lot of things will change after the end of the pandemic to see how many behaviors are broadly changed. less business travel, employees not in the office during that full work week i think it will be fairly radical but i don't know for sure >> i'm sure you've been following the news on washington targeting the big tech companies and looking to potentially break them up, definitely regulate them more. i wonder if that gives you flashbacks of your own time running microsoft. what advice would you give these

ceos who were dealing with this right now? >> well, i think whenever you get to be a super valuable company, you know, affecting the way people communicate and even, you know, political discourse being mediated through your system and, you know, higher percentage of commerce through your system, you're going to expect a lot of government attention. i was naive at microsoft and didn't realize that our success would lead to government attention and so i made some mistakes just saying, hey, i never go to washington, d.c. and now i don't think, you know, that -- at least these companies have lots of sophisticated advisers and they've tried to engage in various ways but there's going to be -- the rules will change somewhat it is kind of poignant that the companies have done well at a time when, you know, things are very tough

so that's an element of the increased attention. >> you think additional regulation could be good or let's say for america, for consumers overall or you think it runs the risk of cutting down on innovation? >> it'll really depend on what they come up with. you know, we have to get to particulars. you know, is there some rule about acquisition? is there some rule about splitting parts of the companies either to create open availability of those resources? we're in unchartered territory here the railroad industry, they've created special policies that they thought were effective for competition. this is a new industry with different issues and so to get it right will take a lot of

thinking but i'd say the chances of them doing something is pretty high. you always have europe as well as the united states often europe being even more regulatory >> and finally just as an investor, i wonder what you think about the markets right now. where tech stocks are, where interest rates are as a curious thinker, what catches your thoughts. >> well, the macro economic situation is kind of mind blowing and unprecedented. the chip, the treasury inflationary protection sells to maybe 1% so the market's telling us that returns going forward are going to be very low, real returns, which is what really matters. so, you know, the relative value of stocks versus bonds if you can pick the right things is

pretty strong today, but even there you have to think pretty carefully because of the way that the future earnings have been priced is very, very high warren buffet and i talk pretty regularly because it's such an unusual situation. >> you can hear the full conversation of our conversation with bill gates on squawk pod. that's available today wherever you listen to podcasts andrew, his thoughts on big tech regulation, a little different than what we heard from ballmer who was with us just a week or so ago when he talked about the whole idea of he would not bet on breakups coming bill didn't say he thought breakups were coming but he thought the chances were very high that something happens. >> something happened to microsoft but it wasn't a breakup. so we'll see >> yeah.

i don't want tom friedman on that panel, whoever decides. that was classic yesterday, wasn't it? >> yeah. he has it out for facebook, that's for sure. >> whoa. he does. now, okay. so the entire interview is on the "squawk pod. audio only >> that's right. listen while you're driving, while you're walking down the street >> all right i knew that. the top take away from a big summer and beginning of fall for the retail investment class. sofi ceo anthony noto going to join us. we're going to ask the former twitter cfo about regulatory, what we were just asking, what's going to happen on election

night. watching analysts. you've got both. of 5g nationwide. and, in more and more cities, the unprecedented performance of ultra wideband. the fastest 5g in the world. it will change your phone and how businesses do everything. i'm proud, because we didn't build it the easy way, we built it right. this is the 5g america's been waiting for. only from verizon.

shift to cnbc headquarters where jim cramer joins us now.

i think goldman still is doing well from when you were there, jim. i think some of the residual -- you left an imprint. some of the systems you put in place -- >> i'd like to think i played a major role if you ask david favor he would say the imprint of my time at goldman sachs really determined his path with the idea that what you do is you don't take any real risk, just bring in assets. when someone wants to buy stock, you make sure you find the other side and that's why that stock is up. but the rest of the group is down so it gets pulled down by the etfs i didn't have etfs when i strengthened the business there. >> overalthough do you think that solomon has it positioned well >> yeah. i mean, look, they're making it versus last quarter, but last quarter had vicious volatility but i think you're seeing them take a lot of share and when they take share i think it sticks with it, particularly

it's zoom share, which is incredible you can take share during a time when you have people there but they did it. they did it in a way that i think is going to be sticky and if the rest of the banks weren't down so much, i think it would have a run it's very hard not to be pulled down by the cohort. >> i still have an over arching question just about how the rebound in our economy really is, and it's bifurcated obviously and there's weak spots and people that still need help and then there's some strong consumer spending we're seeing in certain areas and there's this gdp number that's going to be a pretty big number do you think versus the rest of the world that our economy has under performed in terms of reopening or rebounding? >> no. just china, singapore, malaysia, south korea have done better it's a four-lane highway we have three lanes in the fast lane and everything is working we've got another lane, the theater lane, restaurant lane,

travel lane, that's got some potholes, real rumble there. you can't get through it you can't switch over to the other lanes. we've got to protect that fourth lane nobody knows what to do with the fourth lane so instead it's just laying you see it in pmorgan's numbers. they're very proud that numbers. they're proud that there are th lanes that are good and one lane that isn't we got to fix the last lane. it is about the last lane. the last lane is about humanity. we can let them go. >> is it cold and calculating and not relevant we use stock prices as -- it is a leading economic indicator and at some point in history, it has been a barometer of economic health does the action of the fed and all the stimulus, does it negate the stock market barometer saying that the economy snapped back better than most people thought? can we just not use new highs to

say we did okay in terms of reopening? >> i think that, yeah, look, here is the truth. i think our scientists are good. yes, j&j held down by one person eli lilly held down by manufacturing area regeneron, not held down pfizer, david said pfizer pretty soon we know glaxosmithkline is doing great things we're looking for a bridge to the vaccine in those -- for that one group of people -- let's conclude amc broadway, theater, maybe some of the stadiums, i think the key test will be the super bowl will be a covid free zone that's what i think is going to happen i'm not kidding. people don't believe me. i think it will be a co-frvid fe zone a handheld pcr test will tell you if you get in, you go to the event and you scream your head off and no covid that's what i'm shooting for

i'm shooting for super bowl to be good and then in march everybody gets in. >> all right >> that's why the market is -- we got to protect those people secretary mnuchin has to put forward a small and medium sized business package that cannot be rejected. >> eagles and bengals in the super bowl >> well, we tied >> all right, thank you -- >> thank you >> can you believe that? i had money on that too. >> thanks. thank you. >> i'll tell you, by the way, the way they're going to -- i want to add one thing to jim's thought on the super bowl and how they do it, i don't know if they'll do it at the super bowl this way, they're now -- people are doing events, i just got invited to something like this, they test you every day for three days prior to doing something. that is the way you can really make sure it doesn't happen. >> no, tennessee titans, got to test the morning of. got to -- >> and the morning of.

the point is you do just the morning of, though -- >> that's a great idea. >> -- you can miss people. >> is that an invite i would feel bad i didn't get in. >> no, i promise because i'm not going to it. meantime -- >> is that the goldman sachs reunion? >> i'm with you, jim >> all right.promise bank of america, goldman sachs, wells fargo all reporting this morning. q3 was a busy one for wall street's biggest banks and for retail investors that's something that black rock touched on when he joined us yesterday. >> across the board the average investor is putting more and more money to work which is a good outcome. i do believe that pandemic actually has created that fear of the future and a response is now -- say higher savings rate in america, higher investment

rate for the long-term >> joining us now is one of those experts on retail investors, anthony nota, an announcement i want to get to. before we get started, what is going on with the retail investor right now and is this -- is this -- is this what we have been waiting for all along? we have been saying where is the retail investor? now they're here, we should be excited or worry that it is a frenzy >> you know, andrew, i think the phenomenon is broader than just retail investing it is digital and financial services overall there are a few studies that have come out about at home, it causes more and more people to do on tier diheir digital devics we see a meaningful tell in acceleration within investing we have seen a significant increase

in the number of new accounts. we have growth of about 250% since the beginning of the year. we also have seen new products like our tjf which we announced two weeks ago really gain momentum that's why we're excited today to offer another new feature in the differentiation, social following features within sofi invest which gives you the ability to follow other members portfolios, watch lists, see what they're buying or selling, ask questions and also see how you're stacking up in our leaderboard. there is a more and more thirst and desire for information access to investing, but it is really behind the secretarier that we'sector we're seeing the financial services done digitally versus physically. we have seen similar events take place years ago in other areas of the internet. >> almost a game fiction that seems to be taking place what surprises me to some degree about what you're offering is that for so long investors,

especially big institutional investors, and frankly even individuals have wanted to keep their information private because part of this is you're outwitting the other person, wouldn't want them to know people tried to avoid being in some of the filings and other types of things. how do you think this is going to play, is this a generational issue? >> i think it follows the theme of social sharing. so sofi, many people don't realize this, is a shortened version of our name. the watch lists as well as the ability to follow people on the watch lists and that they're investing in, it is about giving them more information to make a decision about investing, and also giving them access to new ideas and other people in our broad portfolio of members and 7 0% of our members are already talking to their friends and family and colleagues about where they're investing, what they're doing. we're just using the technology capabilities of a mobile phone and broad-based distribution to

bring that information together in a more eferbt ficient way to better knowledge when making decisions. success in investing comes down to taking a long-term approach, being diversified, dollar cost averaging, not about timing markets or game fiction. we're proud to say less than 1% of our accounts have more than one trade a day. >> and just so i understand in terms of the release of this information, you're not going to get the actual share numbers or dollar volume, but you will see they bought something or sold something. do you have any concerns about people's ability to try to manipulate things? >> listen, it is very important that we provide products that are appropriate for each individual member and we comply with all the regulatory rules and we'll do that. simply said, it is the ability to follow, andrew if andrew allows me to see his watch list. and i'll see what you hold but also see when you're buying and selling stocks and because it is an aggregation of so many members, we have more than 1.5 million members now, you can have other opinions and

it is just not one investor and what they're doing, you can see what is happening broadly across that particular stock from the people that you're following it is more than one data point and that ability to see a broad perspective of what is happening in that individual stock based on your entire community of people you're following is really important >> what are you seeing in terms of the stock holdings of your particular clients and customers? are they the story stocks. we're looking on the screen at tesla, apple, zoom, peloton, snowflake, or is it a different type of investment, are they mutual funds and the like? >> our target customer is a younger customer, millennials and gen z. we see a lot of interesting technology stocks an consumer oriented stocks. i will tell you i learned a lot about the different investment behaviors of individuals on our platform from being able to use

the social feature of following other portfolios i found stocks in some of the people that are ranked at the top of the leaderboard i had no perspective on or wasn't aware of their category so this will diversify what is being invested in because it is giving people greater awareness of selection but the things that are most popular in the platform from a holding standpoint tend to be things that millennial and gen z are interested in and following. >> what do we got to do to make sure investors are educated about how the market works >> because we have a relationship model where we're trying to provide members with relationship across their entire professional lives, there for every major financial decision they make, funding college or buying a home with a mortgage or doing direct deposit through sofi money, we priovide a depth of information within the product but do live streaming events for members on topics like 401(k)s, buying a home,

investing in cryptocurrency. we are not just providing products but also providing live content and last, you get a free certified financial planner if you're a member. you can talk to someone live from your phone. >> anthony, thank you. it is great to see you hope to see you again soon 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 futures are steady off the first loss in five for stocks trying to avoid the first back-to-back loss in three weeks. bank earnings, goldman, wells, b of a.verging story about resilience in the face of the pandemic. >> i'll send it back to you, carl wait, i got it