like down -- is it out i don't know third straight day of downward movement in the dow. 320 is -- we'll see what happens to the rest of the session down 175 on the nasdaq and oil is down, so it is kind of across the board. guys, we'll see you tomorrow guys and gals. becky, i like the purple, purple is good. "squawk on the street" is next good thursday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber it is risk off this morning. stocks on track for the first three day-loss since mid-september as daily global covid cases hit a new record europe introduces new lockdowns. hospitalizations in this country near a two-month high. and stimulus hopes remain thin, jobless claims go the wrong direction up 53 k. road map begins with stimulus hopes fading as the treasury

secretary talks to cnbc moments ago. >> shares of morgan stanley are slightly lower, it would appear, ahead of the open. the bank topped revenue estimates by a billion on what was stronger than expected trading revenues and ev price war elon musk cutting the cost of tesla's model s for a second time in one week, carl >> meantime, guys, got to take stock of this sell-off here in the premarket, jim general take this morning is that the market is now catching up to what we know has been a problem in europe, and these lockdown restrictions in the uk and france are getting more serious. dollar strengthening, some believe, because the situation here is at least better than europe on a relative basis. >> i think we're importing their negative ty. i don't think it is going to last you can't make any moves to the positive until about 11:00 when you start seeing their markets peter out. it is one thing, it is very

frightening when you read what is going on there. it is obvious it is a second wave it seems more viral. i don't know whether that true or not but the number of cases are daunting i want to warn people if you follow what they're doing, and you sell our stocks because of what is happening right now in france, that's going to prove to be something you might regret. i was negative going into the bank period, because they never, ever do what people want they always seem to disappoint and, david, it has gotten to the point now where even the good ones, we're morgan stanley, goldman sachs, which beat by, i don't know, 80%, ignored and now today we're working about -- the madrid covid and paris covid doesn't make senses to me. i'm at odds with it. >> you're at odds with the fact that the market should be responding differently than the rise in cases? or in europe >> yes we are not europe.

>> right 55,000 a day, at least that was the number yesterday i haven't looked at what -- that was two days ago, yesterday's number i haven't looked at today's, jim, but we are not exactly doing well. >> unfortunately it is terribly consistent it is not -- people will talk to you about death rate, have interesting article these days as we start talking about covid long that there is something else besides the death rate we should worry about but what i'm saying is -- the fundamentals look at the goldman quarter. study morgan stanley. >> strong quarter at morgan stanley, we'll get to also 50% of return on tangible common equity. >> wells fargo and citi were not good. >> no, jpmorgan was fine all the banks go down. >> yes it doesn't matter. goldman sachs, you know, you speak to steve scherer, the cfo, it is a rather remarkable quarter. one thing people have to recognize is the amount of -- the amount of business that is being done with zoom is

incredible no face to face. just zoom to zoom. and it is working. it is not supposed to. the expense structure is better, simply because people don't go anywhere >> i do want to get to that bernstein call on zoom later, jim. they go to 611 on their target way below where it is now. but zoom minutes year on year, shouldn't be surprising, but it is still astounding, up 30x, that's a reflection of our daily lives, of course, what happened over the last eight months >> look, zoom is a remarkable company. there was competition. webex, cisco, competition. they didn't work because zoom is business to business, and business to consumer that's highly unusual. he is a 24/7 soul who is thinking every minute about how to make zoom into something even bigger how about this how about what he did with do

docusign you can watch zoom and sign a deal we'll start seeing things that make it so zoom can be worldwide. translation, like you have with google it is a remarkable product and it is working. now, is this -- is this fastly a company that underperformed after being hyped up $20 by, i don't know, forces that are unknown? no this is a company that is very hard to value. 50 times sales it is very hard to value because the sales are exponential. >> zoom is hard to value let's talk about fastly for a moment you've used it as a reflection of speculative excess to a certain extent and to the presence, of course, which we welcome, of the new traders in this market, individuals using the robin hood platform and others, by the way. >> it is a metaphor, darn it. >> yesterday they report, of course, that their number -- the revenue numbers are not going to

be where they were assumed to be because it would seem they don't name tiktok, but they make the assumption that it is, right >> well, tiktok is -- >> largest customer, fastly's platform -- usage of fastly's platform by the previous customers did not meet expectations >> right that was a preannouncement, a lot of people who are not in this business say what is the difference 74 million and now they're going to do 71 what is the difference when you're valued like that, you have to do 81 to please people as opposed to goldman sachs. >> always got to be -- does this -- does this reverberate in the broader market even though it is not that -- >> i think there are people who are reassessing right now what happened, how do these stocks get to these levels? and, david, you and i both have found it quizzical, the softbank calls, you mentioned them

multiple times. >> he calls it barely a dolphin, but yeah, the softbank whale in terms of buying. >> carl, there are some stocks, we'll go over them, i'm working on this fiber now. i don't want to play my hand yet this is the fiber, this is the free lance people who come in and help you with your website this thing is valued too high. i don't know how to value, i do not know how to value zoom and i do not know how to value snowflake other than the fact that, wow, are they good companies. what do you do there are times where microsoft in 1987, microsoft is, like, wow, i think this company is going to be really big intel, they dropped d-ram and switched to the 86 processor went to an astronomical pe, it was right, you have to grow into the pes. i think that eric will grow in the zoom pe.

i don't want to -- for my travel trust i wouldn't buy it. it is too high >> yeah. no, that's what makes some of these early cycle stories, jim, so difficult, is the multiple by very nature is elevated relative to history and it takes time for the business to fill that gap. i am curious, though, if you're convinced that what is happening in europe is not going to replicate itself here, why the fresh highs on zoom today? why fresh high on peloton for the second day in a row today? >> that is the second wave look, peloton, they need a new factory, they can't meet it. zoom recognition that we're not going back so whoever -- who doesn't have zoom there is a lot of people -- there is really two parts to this country the part of the country that needs the stimulus and the other part of the country who say i'm going to put zoom in my country house, not just in my house. there are people who are buying homes at a level that are extraordinary in this country. there is housing is doing well autos have turned around

so there is a lot of good but those people are doing it remotely and people are doing remotely -- i find -- david, how often when you -- an executive wants to talk with you, for our show, you try to get background, how often do they send you a link now versus picking up the phone? >> it happens. people want to -- it is funny, conversations that would have ordinarily taken place over the phone, so to speak, now people want to see you. i don't want to see anybody. i just do the audio anyway yeah. >> you do? >> i always do the zoom. i love it. >> you love it >> i think it is fantastic i zoom everybody >> i just listen i don't know the way things evolved, it use to be you pick a phone up and call somebody as a reporter and you got them or you didn't now everybody wants to make an appointment to talk. it is ridiculous they send you links. i'll send you a link, we can talk >> i had a work dinner last night, i had a good time

it was good, it was social distanced. there was nobody around me i was ice cold it was everything i want that's what i want, carl no one near me. >> that's what we all want, jim. >> i know. >> i don't want that aerosol spray cough coming in my direction. nick saban when you read the nick saban, don't you say to yourself, mm, anybody. >> nick saban, the athletic director, greg burn, lsu florida has been delayed, schefter has a fresh tweet, the falcons according to adam closing their facility. >> no! no adam and i had -- we have gauge. >> dustin johnson, christiano ronaldo, it is impossible to trap. >> it is every day the nfl changes when it is going to have a game i'm surprised amazon said when they're going to have it they should say, listen, we're going to have an excess game

played on the tuesday. >> they can get the tuesday games. >> i can't believe schefter had that we were talking about -- well, see, we went back and forth today, but mostly about how christian kirk's a good matchup against the jaguars. >> all of this doesn't add up to necessarily another lockdown coming here in the united states, jim. that's not happening. >> no. it's not and that's what matters. i think, carl, people are missing that there will be no lockdown and anyone who -- >> this is -- >> they're not talking about a lockdown florida is -- look, i just got the right to be able to go it an eagles game yesterday. 7,000 people to have the right to cough on each other and, you know, that's what people are doing they're opening up >> yeah. tom lee has a piece out this morning, jim, talking about how hard it is to contain, he does say that he thinks 350 cases per million acts as a governor at that point, policymakers panic in his words, citizens

start masking up, and case loads per capita come down elasticity on this thing is not infinite among policymakers. >> no. look i mean, it gets science fiction like as it kind of gets out of control, and all you want to do is get it last you want regeneron, you want a couple -- you want to take two regeneron and go back. that's a reference to the president calling for the fabulous company like it is a pill regeneron has to give us more -- we have to get that johnson and johnson. that, to me, all that you mentioned versus if we hear that the j&j issue is solid, j&j is capable of doing a billion, okay they're capable of doing a billion vials. we have to get that j&j study on track. the eli lilly is capable of doing -- >> you're talking about two different things here, you're going to confuse people. one again is an antiviral you take if you got it, the other, the j&j is a vaccine you short-hand things and sometimes people need to -- j&j is the vaccine

and the manufacturing for the vaccine continues in the hope they will be approved smat point in the not too distant future and you'll have a available supply immediately to get out to people pfizer, moderna, j&j, there is others we could have a number of vaccines available but between now and then, jim, the question is as it gets colder and see case counts rising in europe and in the united states what is the response if any or people are going to continue to pull back from economic activity or are we done is everybody saying, i'm going to put my mask on but i'm going about my business. >> colleges and people are coming home. thanksgiving will be a bit of a frightening time when they come home but here is something interesting about the nfl. do you know that almost none of these cases, carl, are symptomatic. almost 100% asymptomatic which means that people feel bad for a couple of days, but they just don't -- they are having a hard time taking it seriously because they're not really sick. the rest of us get sick, those people are supermen.

but it is really hurting the nfl that these people do not show any signs of covid and that's what's going on. >> yeah. yeah guys, a lot to get to this morning. we'll get to morgan stanley as david mentions ual, mcmillan from walmart talking about black friday stimulus and tiktok even and we'll talk more about facebook and twitter as they apologize in some ways for their restrictions of content regarding that "new york post" story. what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley.

"new york times" with a story last night talking about the day that larry kudlow came on our air february 25 and said the covid pandemic was not contained airtight, but pretty close to airtight as the times now says that they were -- the administration was giving private briefings to some investors and people affiliated with the hoover institution that in fact it was not perhaps airtight all this leads back to an interview that jim had with david tepper from apalusa. >> we're trying to back engineer it ourselves now you got to try to figure it out. ruined the environment, the setup now. it is brand-new. >> that is important, you talked to joe, good time, it is a game changer. isn't it >> you have to be careful because there may be a game changer. you got to be cautious two weeks ago, before the virus,

it was one thing this is a different environment now. it is what it is >> jim, on twitter, you called the article strange. >> yes well, okay, because there is some implications in the article. one is that somehow tepper might be in the inner circle of the president. i don't think you can be that because on may 15th of 2018, he called the president the father of lies, and here is an interesting term, he called hum a demented narcissistic scumbag. that's usually not something that makes it so that you're close to the president it made it sound like he's getting the call the narcissistic -- i use that term once, i won't use it a second time, but i get in trouble sometimes when i use these terms, but i recognize that he gets a lot of emails, whatever, the reason he felt compelled to say what he said to me was i was on cnbc not long ago, with -- talking to joe and i was very bullish and sunsince i read this lancet article, feel compelled to tell the cnbc audience that i am not as bullish as i was when i was

talking to joe somehow this thing has become that there is just vast conspiracy of hedge fund managers who talked to larry and get the -- get the skinny and it is completely untrue it is -- david tepper, i don't know, did he get bad emails from hoover i don't know the idea hes with was going toe some sort of tie do you think the president likes those kinds of -- the president, when he gave -- tepper said the president gave not one dime to 9/11 or to superstorm sandy these don't endear him to the president. >> no, i don't believe mr. tepper is a supporter of the president and the idea somehow he would be alerted to information that was available to them. by the way, i mean, larry kudlow, you're going to listen to -- let's be honest, how many times does he come on our show and said something -- >> he was on yesterday. >> said something that the opposite of which is actually true i know he's an old friend. an old colleague i happen to be very fond of him.

>> people want me to trash him that's what they want. they want -- >> my point is that if you are a hedge fund manager or anybody, i'm not necessarily sure going to be listening to him and believe that whatever is being told to you is actually going to happen or be true. at that moment in time same way he was saying that it was all contained. and he said it again a week later when we challenged him on it. >> he works for a president who listens to his every word, they have dinner, a great deal together i have said over and over again, my partner for four years. it is called loyalty does that -- as long as you disclose it -- >> i would rather spend time talking about morgan stanley's earnings than about this story >> i think you eviscerated me. >> who me >> to me, to my mind, i mean, david tepper can take care of itself it is what kudlow said to our viewers who don't have that kind of intelligence that is troublesome, jim i know he's your friend.

futures are weak we'll take a break and be back in a minute. before we talk about tax-smart investing, what's new? -audrey's expecting... -twins! ♪ we'd be closer to the twins. change in plans. at fidelity, a change in plans is always part of the plan.

yes, we are standing look at that i mean, we're far apart. >> you couldn't spit and hit me. >> i know. if i do this, do you start -- >> get the heck away from me >> i thought we might wear masks, but it kind of reminds me of back at the exchange. it is your mad dash. you want to talk a little walgreens. >> one of my thesis is the quarters have been pretty good take a way wells fargo and citi, we had good quarters j&j was a good quarter united health was good walgreens was good walgreens. it is almost inconceivable because the death star just goes

after walgreens, death star being amazon they made the number 4.7% comps, they beat the revenues. >> they had a top line that went up 2.3%, yeah. >> growth in the health and wellness category. david, walgreens has a pulse a good example of what i'm -- dow stock, by the way, i don't know how it snuck into the dow that's crazy. >> i don't know how long that will keep up the performance has been horrible some talk some time back about could he take it private >> there is one of those dog things, we're like dog -- like electricity. david, look at that. that's one of the worst charts in the book. and i think that this -- this company's stock is going to go higher. >> can they maintain it has been a long, hard road for them >> that's a really hard question >> they have gone a very different strategy than has cvs, now a health insurer, in addition to -- >> amazon prime day yesterday, right? so i ordered these unbelievably

cool toothbrushes. >> okay. >> i would have gone to walgreens for them, but, no, they come to my house, i don't have to touch anybody, the keypad we know from a study, the keypad is the dirtiest thing you can touch. i don't want the keypad. everyone is faced with that. >> you think it goes higher, today and maybe for a while? >> yeah, it has a good dividend, they're not incompetent. >> that's a real -- >> buy walgreens, they're not as incompetent as they used to be there is a recommendation. >> this is actually not a bad shot it is kind of weird, but it is not bad. >> it is great >> yeah. >> as long as you stay away from me, i'm happy with it. when i said you eviscerated me, i was joking around. it is hard for me to criticize larry kudlow, but he's been wrong. he's too optimistic and he's been too optimistic at times, but remember that sometimes the way leaders are. and he reflects the leader that is president trump >> got an opening bell a few minutes away stay with us "squawk on the street. i didn't choose this job because it was easy.

but i can't say i expected this. to fight these fires, we need funding - plain and simple. for this crisis, and for the next one. prop 15 closes tax loopholes so rich corporations pay their fair share of taxes. so firefighters like me, have what we need to do the job, and to do it right. the big corporations want to keep their tax loopholes. it's what they do. well, i do what i do. if you'ld like to help, join me and vote yes on prop 15.

and sweetie can coloryou just be... gentle with the pens. okey. okey. i know. gentle..gentle new projects means new project managers. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database so you can start hiring right away. claim your seventy five dollar credit, when you post your first job at indeed.com/home.

futures are weak, but plenty

of other elements to watch as we take stock of some of the risk regarding covid in europe and some argue in the united states. it is not just futures ten-year to 70 basis points. german bunds, lowest yield since march. and high yield as closing in on the 200 day once again so a lot of elements of risk >> jim you got your -- are you listening? what >> is that what happens when you move around? >> i think he -- nobody turned on his -- nobody turns on his ifb, carl, i was preparing for a faber report as we get ready for an opening bell as you point out. now i think -- we're getting him -- we're getting jim set up. >> i'm open and ready for business >> all right carl, we're going to send it back to you now while we get ourselves technically straightened out here and we'll be ready to roll. >> all right you guys do that we'll get ready for the opening bell in 20 seconds here.

as we said, watching elements of covid, morgan stanley very nice beat on some interesting comments from gorman on the call, which we'll get to in a moment investment bank up 11, wealth management up 8. alcoa another big story. jim, assuming you can hear me at this point, doug mcmillan on with becky this morning talking about tiktok, stimulus, black friday, and the degree to which some towns are beginning to do some bulk purchasing once again. at least those seeing some elevated covid cases as breadth is weak here. >> we're still getting jim ready to go. walmart was interesting. keeping an eye on that stock as well funny, you know, didn't say much about tiktok did he? it is a name we spoke about so often, to so many days there and nothing. he talked about it in broader terms in terms of the benefit of the platform but didn't have much to offer there beyond that.

but coming back to sort of the idea, jim, of stimulus, and where he stands on that. >> it is so over right? >> what do you mean? >> stimulus. >> yeah, it does seem -- >> even at 300 billion, that will go pretty far, we know what part of the economy is really hurting. we can target, this is no longer one of these where we just have to give it to everybody. just give the $300 billion, already allocated to the people who need it. it is really -- it is stupid at this point and it is painful. it is really painful carl, i've got to tell you, those are people who in -- are just going to have tougher and tougher times because we're still not traveling to any -- we talked about unitedment and we're absolutely not going out to dinner when it comes to cold weather soon it is going to be too cold and the indoors, there is just not enough tables. this is something that is going to really have a big fold off in employment in four weeks let's get ready for it

>> right jim, two things on your point. "the new york times" has a story about the number of people in poverty in this country, grew by 8 million since may as a result of the c.a.r.e.s. act essentially expiring and i don't know if you noticed, we never mentioned this, last week goldman had research on the average temperature at which demand for outdoor dining collapses and goldman's view is that it is somewhere in the high 40s, which i think is essentially when you start to see your breath. but without gas heaters, those who can't get those, this was an issue at your business, that's going to be very difficult >> oh, yeah. we just felt, forget it. we felt forget it. can't do it. and what is going to happen is that all those areas that everybody set up that look so great, look like vienna, no, they're going to be gone the heaters don't have enough capacity, and we just feel like, you know what, department of transportation is against you. the health department is going to be against you. it is just a fool's errand

and the only restaurants that are going to have the room are the chains they can afford to be able to have very few people and get to when the vaccines happens. this money, david, this money should be given with one contingency. until we have a vaccine, you're protected. that's what it should be done. if i were down there, i would knock these heads until we all agree that as long as there is no vaccine, they're protected. the moment they get vaccine, they're on their own. >> right >> what do you think >> sure, though, again, back to -- when you get approval of the vaccine doesn't mean that that vaccine is going to suddenly be administered to 7 billion people on the planet. >> well, i know, but first has to be united states, not being a jingoistic guy >> no. >> when we discuss it i discuss it very big chain yesterday, about when they're going to stop, and it is going to be three weeks. you can't -- you can't serve and

expect no one is going to show. >> you can't and 45 degrees is pretty cold. >> see your breath. >> sit outside and eat. >> nobody wants to do that. >> if we're going to try that this weekend, i'll tell you how it goes. but we are going to have a giant fire next to us. >> restaurant? >> no, backyard. >> giant fire at a restaurant -- >> that doesn't work >> we bought the fire pit. it is terrific we have marshmallows. >> two problems at once. guys, we didn't get to morgan stanley, let's do it now jim, we mentioned it briefly at the open of the show, return on common equity 15%. net revenue up 16% we talked about as well this company, this morgan stanley, change in complexion of its business it has been for quite some time, of course, since they bought what they didn't already own of the smith barney brokerage but it is changed more dramatically with the closing of the transactional trade whose business by the way has gone up

significantly since the pandemic, given the addition of so many new accounts there and then the announcement last week that they're also going to be buy eaten vance it is a very different picture that said, they still are trading stocks and giving advice and in the capital markets, and had quite a strong quarter sales in trading. >> yes, they did some people feel those assets leave the building at the end of the day. it has been very sticky for morgan stanley gorman has done a great job. he's taking the e-trade people, and he's exposing them to all sorts of good research, to be able to understand better what they do. how to be able to execute trades he's got a lot of people, silicon valley, 401(k)s, he's been after that. he's trying to make this into a company that is -- has black rock-like pe and nobody cares one day they will care >> it is -- on the call today, jim, a couple of things, he said

we're overcapitalized, bottom line wealth management is the strongest he's seen in the 14 year he's been there and when he was asked about the shares down premarket, he set the market can be really stupid. >> wow >> yeah. we talk a lot about that when i speak to mr. gorman, about whether the market is right or whether the market is wrong and the market is wrong about morgan stanley. >> it may be >> it is wrong about goldman sachs. >> relative to its peers, it has done quite well. goldman sachs, which we always put up as key competitor, even though frankly now, one is $20 billion larger in terms of market cap, they closed e-trade deal ahead of market cap goldman is down 8%, 9% for the year you get to the big banks and there has been no letup, guys, after this week of earnings. bank of america little sign of life it has been pretty bad and, by the way, i look at wells fargo for a while, inhabiting $100 billion club in terms of market value. now below that, back to 94

billion, stock down 57% for the year listen to cf closing bell, what did you think? >> downbeat. downbeat the market is not stupid didn't say that. >> no. >> look, here's the problem for wells. you listen to the quarter. you listen to shrewsbury, you decide what to do and they fire at the end of the day another 100 -- you see that? that outrageous thing? why wasn't that on the conference call? let's go fire -- what is going on there >> you have very -- you have a very high opinion of charlie scharf. >> i do, but, geez, what kind of company did he have? abused the usa.s. aid. what is the culture there? and how long has it really been like this? this was the best bank in america. i thought.

i was wrong. >> yeah. well, it is down across the board, banking, except for morgan stanley, up ever so slightly. >> it is a wealth adviser. it is not a bank. >> that's what gorman wants many he to say. >> we should not include -- >> if gorman was on the air where he should be, because he's not overexposed, if this is a great opportunity, he could have said we're no longer a bank. >> who do we compare it to ubs? black rock i don't know >> black rock. i like the black rock. now he doesn't run these index funds, but i like the black rock, black rock has a 20 multiple let's put them between black rock and bank of america >> okay. >> how about that? >> sounds good to me. >> like that >> sure. >> stock womill be much higher >> scharf is not that nice larry kudlow is nice

i'm work on a nice per share index. i was nasty when i was at a hedge fund. >> yeah you were nice to me, though. >> i always liked you. >> yeah, you were okay. >> my dad liked you. >> never got too mad at me. >> no. >> guys, i want to talkative tiy >> going to talk peloton >> no, tiffany they gave us results why? they wanted a front run unvh, their would be buyer tiffany's results were for really where we stand right now for this period, right global net sales for two-month period, they did decline year over year. but operating earnings, tiffany tells us, up 25% year over year. 25% is what they say again, they're still seeing sales declines here in the u.s., let's keep that in mind. they also will tell us about e-commerce, it is growing quite

quickly but it is growing in part as a percentage of sales because the overall sales number is not as high as it had been. wouldn't be as high in number. e-commerce is becoming a more important component of their overall business the main reason they're telling us this is because they wanted to make it clear in their opinion there is no way that there has been a material adverse effect on their business, which is one of the key arguments being made by uvmh as they sue each other in delaware court their claim is simply, hey, you know what, all your claims don't matter you say there was no carve out for a pandemic, you got letter from a french foreign ministry that will prevent you from closing the deal until after january 6th and say there is material adverse effect. here is their counterclaim filed yesterday, ignoring the actual words in the merger agreement, the argument is based on the

absence of an explicit exclusion for pandemics in the agreement's definition of material adverse effect lvmh has heavy reliance on express carveout for pandemics, an argument they say is devoid of support in case law, underscores how weak their claim is but the court need not even reach the very exclusion from the deaf nigfinition for the si reason tiffany has not suffered an mae they followed up with this release, the numbers, which says, we are doing better than we did a year ago in terms of our profit. >> look at the china numbers are incredible china is fantastic they're starting to do ing tingi ecom i'm impressed. >> and the question is now bernardo knows to be deposed on november 20th, the question becomes does this present an opportunity for the two sides to finally get something done

does he really want to be deposed, does he want to be put on the stand in delaware as would be the case in early january. november 24th they can walk away, but they strill have to go to court a lot of arbs in the stock believing you will get a deal at a far higher price, perhaps at the 135 number originally agreed to because they don't believe that the case merits much in terms of lvmh saying there wasn't a carveout for the pandemic, we can't do it because of -- that said, we don't know what could come from macron. maybe he'll continue to help his friend bernard arnault. >> he this focus on covid. do you know the lag trade that imagine you boss came up with? >> no. >> l brands, american eagle outfitters, gap. all doing better than expected they're all in the mall. what is the case against tiffany

if it is in the mall some we hated the mall for a while. mall is making a comeback. >> a comeback. >> yes, it is. >> navistar, we have been covering them, trade in the unit of volkswagen wanted to buy that company, back and forth for quite some time, large shareholders on the form of carl icahn, trade around 16%. they all own the same. yesterday they hit the market with saying 43, take it or leave it, you have until 6:00 friday to decide. 6:00 p.m. friday you see what happened to that stock. crushed yesterday, down again today. there is talk about whether they're butting heads and one would take the deal and the other wouldn't i'm hearing they may not as far apart as far as being on the same page. with these personalities, do you hope to get to the finish line i'm not sure if navistar has put anything out in terms of a response i was told they might. i haven't checked. i forgot to do that. this guy, rachesky through the years, he's e

doesn't lia guy that doesn't like to sell on navistar look at five year lions gate and five years l'oreal there were potential deals out there he could have hit the bid on, chose not to, and, man, he just doesn't like to sell and anybody aligned with him is probably unhappy with that decision >> navistar is -- business is turning. >> it makes sense for them for vp, b vw, but many wanted 43 we'll find out tomorrow. >> carl, back over to you. >> all right, guys, as you are talking, the biden campaign says two people who recently traveled with senator harris have tested positive for covid they say harris was not in close contact, but she is canceling her travel through sunday, the 18th we'll keep our eye on that in the meantime, all savings

accounter sectors red. to bob pisani. hey, bob >> tough morning, 10 to 1 declining to advancing stock at the open nothing really working now, we're off the lows, look at sectors, you say nothing is working, you get semiconductors not moving with the cyclicals, like energy and industrials, banks still not doing anything even though the bank earnings have been great except for wells fargo, consumer staples, defensive sectors like healthcare not doing much. the reopening stocks all down. everything is down so the reopening stuff, travel stocks like the airlines are weak, the energy stocks are weak materials and steal stocks like nucor. nothing is really working today here normally you flee the megacap, that's the knee jerk reaction when you don't get great news on the vaccine or reopening story these stocks held up tremendously in the last month and really in the last year. so nothing is working today

here so, remember, let's remind ourselves what moves the market. so stimulus, let's call it dimming hopes, that's kind, frankly. but the reopening fresh restrictions in europe, and in the united states. vaccine treatment news mixed recently earnings improving, but the bottom line is we're off to a good start on earnings 41 companies reporting, 8% of the s&p 500 overall now, 85% above expectations, 29% the average, that's the huge number. great start to earnings season here is the conundrum, even though third quarter and the fourth quarter numbers are looking good, large earnings beats may be priced in we had a huge run-up first half of october, on all of this news. we have been reporting this here the guidance we're expecting, we're hoping to come from companies, i don't think it is going to come. i think the corporations are restrained by the reopening story, the vaccine story and stimulus story a collar around the market now on that guidance that you need

from the companies i want to note something, very famed value investor ted aronsohn, very well known as an investor in value is closing his shop $10 billion, it was $30 billion, you know, david, this may be one of the bell ringing moments, he was very respected in the markets, and i don't know if it highlights the bottom of the trade, guys, but important here, and value has been underperforming growth for years and years. back to you. >> all right, bob, we'll see you in a little while. yields are a story both here and in europe. rick santelli has more on that on another day of fed speak. hey, rick. >> absolutely. carl you raise a great point we can all say that the correlations might not be one to one, but they are there. no matter what sovereign you look at, italy, bunds, treasuries, they continue to move lower, all we're debating is the speed at which it is occurring. here is a week to date of 10s, acknowledging we're closed on

monday you can see that the drip continues for lower yields but when you look toward europe, the drip is much more aggressive as you see a three-day chart of the bunds there, they're at minus 62, that's a 7-month low, should they close there. the distance between our yields and their yields is now at a three-month wide, right around 133 basis points if you open the chart up for bunds to early march, you can see that seven-month dropoff there. it may continue as covid hot spots multiply in europe look at a one-week of the euro currency and then open it month date, we're at the lowest level of the month for the currency and, of course, this is propelling the dollar index to higher levels. carl, jim, david, back to you. >> all right, rick, thank you very much. so we got some broad-based selling across the board s&p is back to about a one-week low as all sectors are red and the vix back above 28. take a break here and be back in

a minute ah! come on! let's hide in the attic. no. in the basement. why can't we just get in the running car? are you crazy? let's hide behind the chainsaws. smart. yeah. ok. if you're in a horror movie, you make poor decisions. it's what you do. this was a good idea. shhhh. i'm being quiet. you're breathing on me! if you want to save fifteen percent or more on car insurance, you switch to geico. it's what you do. let's go to the cemetery!

not everyone is in the same camp there are people still being at home more, spending money on their home and doing things to redecorate and other people are struggling paycheck to paycheck if they have a paycheck and others are unemployed. we are seeing that pressure as well it is really a spectrum. this moment of time has more of a separation in it in terms of how people are feeling and behaving than we normally see. >> that vision of the consumer getting something together regarding the sim lus is key >> some people are doing so well they are not spending much defaults are better. their balance sheets are good. they have jobs this is great because they are

not spending a lot other people are just hanging on by their fingers people don't realize that they work in stores and restaurants and it is so not their fault we are supposed to be a compassionate country. it is ridiculous that we have leaders that will not provide 300 to those this is like bob krach et. there will not be a turkey on thanksgiving for those people. it is outrageous >> everybody knows what you mean we are in a difficult period we did get a searwoosh lower. back after a break before we talk about tax-smart investing, what's new?

-well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust. ♪ we'd be closer to the twins. change in plans. okay. mom, are you painting again? you could sell these. lemme guess, change in plans? at fidelity, a change in plans is always part of the plan.

making a list followed by chevron travelers. back to being down more than 50% for the year to date more "sqwawk on the street" continues in a minute.

controversial. sorrento love him trade aggressively let's watch him when we are 10 to 1 our late friend always said you must buy

>> that has generally been a pretty good rule in the meantime, good morning to you. welcome to "sqwawk on the street." we did see a lower move. down a touch here at 175 we look at covid-19 risk around the world. the stimulus hopes remain dim. jobless claims and that lack of optimism >> social media censorship why facebook and twitter are receiving backlash over an article. and keeping hospital beds a the a critical level ahead of covid-19's potential second wave >> we'll go to the markets to kick off the hour and talk about

whether this is an air pocket or something bigger right now, a little bit of a pull back moment the centers remain the moment. they went up at the line it did seem to be running a little hot really showing echos in the market when you talk about cloud software and tech that did get a little overdone. talking about the same familiar retail callout in tech that has been very, very pronounced in the last couple of weeks at a time when we can argue four weeks ago, people were overplaying the election as a potential source of volatility or challenge for this market is it was heads i win, tales you lose all that is being reset. s&p 500 is only 3% off its

highs. i think it is still off the high of its pattern of resetting for maybe what happens in the fourth quarter whether before or after the election, which should be somewhere of an upside bias. >> right at the same time, mike, 60% will be tested in some way. how much risk is ahead of that >> i think there will be a contesting result i don't know whether that will be for the regular market depending on how those go, you could have the market doing its thing and looking at the evidence

what really matters is tell me where the market trades to the day before the election. then it is about are we in pay back mode or beating our ways down sentiment was really negative. the market was stuck and really heavy for a few weeks. it was leaning towards a clinton win, it was not confident about that the setup to the election matters too. >> talking about the election and the covid-19 spikes. the action overnight really proved that we are still beholden to what happens overseas when you recognize all of these economies outside the u.s. are

going to start slowing down as well how much do you think will start? how much is yet to be priced in? >> i don't think it is priced in unless we get a true rerun of what happened in the spring. the thing to track here is bond yields globally. they've been on the down swing the dollar is bouncing right now. all that tells you the market is starting to notice the risk of something like that coming around maybe that does mean we go back into that super low yield. let's walt for the fed action or stimulus you don't have the sense out there that we are in the hunker down mood for months. every time we start thinking of this, we get some upside and

back thinking. that familiar cade ans nce of worrying more and interrupting that process >> all of that will come down to muscle memory. looki looking at these comments. demand not recovering. still anemic when we saw the u.s. go as low as zero. so it will have a barbell of emotions >> it is early to see that take for that run recently with things like copper prices and industrial metals because china seems like he's back in the gain for the market and whatever you have to endure, we believe in the four to six-month window we believe we'll likely be emerging

from these issues. the market will say fine and we assume it will get better and the pentup stimulus and the fed backing us up. >> thanks, mike. as you say, there will be a tore rant over time regarding senator harris and some of her staff. not staff but people helping her travel testing positive as part of that. >> the virus is party agnostic campaigning in the age of covid is providing many october surprises. this memo said this morning that late last night, two staffer a nonstaff flight crewmember and one of the top communication aids to senator kamala harris both tested positive last night. these two individuals were not

in direct contact with harris over the last 48 hours as divined by the cdc but out of an abundance of caution, kamala harris and her husband will be canceling travel it will significantly recalibrate the messaging on the coronavirus. they had been attacking the trump campaign about being wreckless and citing the outbreak we've seen at multiple levels there the debate last week asked for plexiglass we are trying to protect the campaign against interpretations but this virus is everywhere in this country you can could trantract it in m ways the second way it will impact the campaign is that they will

not have as many audiences with people in key swing states in the next several days in the critical sprint before the election, the travel is set to include north carolina, ohio and iowa these campaigns will tell you every single voter you can get an audience at this date in the game, they'll see if they can get people out in the trail to fill these events and rewrack from here. >> we are used to that last couple of weeks of a big push, the question will be how are both camps going to spend their resources. especially with the numbers out of the biden campaign.

in june, they had raised $0.2 billion >> that's right, $300 million raised $432 million in cash on hand which is an enormous amount of money to spend in this condensed period at the same time. we are seeing reports saying they need to reallocate in every one of these swing states. we'll see how those impact theothe outcome of the race and the few weeks. we'll talk with someone who knows about the campaign and can talk about the stimulus ahead of the campaign some of that optimism will weigh

through the chief economist joining us now the first to give you a comment to give you cash on hand how far can that go in less than three weeks. >> when i think of millions and trillions. i don't think they'll have any trouble making their closing argument here which is a really straight forward argument. you can begin asking the old reagan question, are you better off than you were four years ago. not if you are one of the tens of millions unemployed or the families facing hunger and eviction or the farmers and manufacturers or school age kids who have been hurt by the

president's epic fail on both trade and covid-19 there is an equally pressing question not are you better off than four years ago but can we survive four more years of trump yan cha yos and not to mention the white supremacist and purr vaers so there is a lot to be said in the next coming weeks. >> so many public workers that have pensions exposed to the stock market certainly, they've seen gains. the white house as we heard this morning is trying to get a stimulus deal. they are going up hill for this. they put $1.8 trillion on the

table. vice president biden, would he tell pelosi to take the deal >> taking a look i think the way to look at this from my perspective is that these folks are closing in on a reasonable number in terms of the bottom line but what really matters a lot and hear biden would definitely have something to say about it is what is inside the bill, what is inside the bill not only was he very focused on getting the highest of course the kinds of health ministers and the idea that they are fighting back is other worldly to me. also enhanced unemployment

benefits state and local is something they are down playing. i'm not going to second guess those. what they would argument is a little of the bottom line. >> unclear who the winner of this is going to be? we would like it to end. i am curious, if your candidate, vice president biden is elected, and we don't see a deal between now and election day, what's the biden plan going to be what is the number going to be if he were to take control of the government >> that's a great question i think it is something i can it is something i can speak to hear part one, virus control. somehow that falls out of this argument we don't have control of this

virus. you were talking about europe. it is a problem over there as well part one and biden talks about this every chance he gets reversing the epic fail on it is what it is good luck governors and mayors, we'll see you later. biden has a science and epidemiology plan which is providing guidance down to those layers the state and local piece of support. republicans, even though they are getting pressure, they've been receipt sent to get on board. now state and local, they have to balance their budget every year they are in great danger of not only getting control of the virus but sustaining the down side of this weak recovery at this point so yes, we'll have to have the fiscal package out the door quickly.

i'll remind you in 2009, obama-biden got the recovery act out in four weeks. that's a record we'll try to beat >> it was far lower than they had wanted going in, given the senate >> you know, it was a differentout output gap. we called that the great depression you are right. it will have to be call i operated to a different moment that's why that work will start if america is lucky enough for a biden presidency to come to fruition >> the president is on fox this morning. he said he would be willing to increase his covid package above $1.8 trillion. i'm not sure if at this point,

his problem is the gop leader, caucus or the senate >> the way to think about is is two fold pelosi is fighting hard for high multiplier, high health relief components we spoke about it. it is crucial. but the politics are key here. i think there is basically three groups democrats who really want the bill and fiscal package. i put pelosi in that camp. republicans who want a deal and then this other significant group is republicans who don't want a deal. i'm afraid mitch mcconnell leads that group that is something that could be a very big potential road block if we get paste the stage we are at right now >> that has been the advantage it hasn't been a new dynamic at this particular moment and

something both sides have had to grapple with and we'll see what happens in the next few weeks unlikely scenario they reach an agreement. we'll talk to you soon economic advisor to former vice president joe biden. >> when we come back, vaccine candidates which stocks belong and which don't. the dow on pacfoe r the first three-day loss since the middle of september i have an idea for a trade. oh yeah, you going to place it? not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila!

maybe a couple throw pillows would help. get a strategy gut check from our trade desk. ♪

is. election is less than three weeks away taking a look at the impact of different sectors. today, the focus is on biotech clients are probably asking as well biden or trump who will be better or worse for the various sectors. what's your answer >> i don't know if it is going to make a big difference if you look at what trup p has already talked about with the drug industry, he certainly hasn't been friendly with his commentary and said some pretty big things not your typical republican president. if i look at what biden has said on the drug industry, i don't think it is any worse than what trump has said i have to imagine with both candidates, there are other

items on the top of the agenda that super secoop -- super seed pricing. >> have the companies had a more positive tone as a result of their efforts to combat the virus in an effort to take place? does that help the industry? >> i think it is helped a little bit and curved favor with the public and understanding of how farra companies do and the role that they play i don't know how far that will go in terms of future negotiations on drug pricing in the near term, the heightened awareness of the vaccine across the finish line is understood by

the public >> bringing in damien conover. same question i started with with tim a biden or trump presidency, either one make a big difference in terms of the sector that you cover? >> i think we'll see likely reform within drug prices in the u.s. and the magnitude of that reform will depend on this election however, what is being implied by the current stock prices seem that too much concern is being placed on the election what we think will likely happen is that we'll see some modest reform in medicare type b. seniors tend to pay a lot for expensive drugs because there on the hook for high-cost drugs but

with part b resign that will remove that hook whoever gets into the office whether a complete sweep by the democrats or a split group, we think it is looicily to see that sort of change that is modest and something we think the drug companies can adapt to i think we'll see stock prices increase >> damien, you reference the potential magnitude of any drug pricing reform my sense in talking to people on capitol hill, despite the bipartisan support is that democrats would want to pursue something even more comprehensive if they did end upsweeping the presidency. if that would happen, how stringent would this be and how soon do you think it would actually be able to take effect? >> great question. i think what we'll likely see is

some sort of compromise. if we look towards the past, from that last time, we'll see the unlikely change. that really only had modest impact on drug pricing reform in the the united states. even though we've seen a lot of posturing by democrats to bring major reform that is something we'll likely see that is more modest and will help seniors and something we'll say deliver this to a group of folks who do pay a lot out of pockets for drugs. things for health care reform always seem to take longer than anticipated. however, if we see a sweep for the democrats in the next election cycle, it will happen more quickly than normal democrats will feel an urgency to get something done over the following two years. >> guys we'll leave it there

appreciate your taking some is time thanks to tim and damien >> thank you now for our etf spotlight taking a look at the financial spider etf ticker xlf off its lows of the morning. morgan stanley, one of its top 10 holdings holding third quarter results that beat expectations from wall street. we've seen many major banks despite the fact that the pandemic has sllti taken hold of this economy "sqwawk on the street" is back in two minutes ♪ ♪ ♪ ♪

♪ (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.

with two new haunted houses, the screams are just getting started. wear your favorite costumes and the fun never ends. come get your halloween on, happening now at universal orlando resort. last night jack dorsey of twitter saying our communication around the actions of the new york post article was not great. we'll talk more about that in two minutes when we return we'd be closer to the twins. change in plans. at fidelity, a change in plans is always part of the plan.

here is your cnbc news update at this hour. british authorities are expanding pandemic restrictions. residents of london and seven other areas will be barred from meeting with anyone outside their households uk administer saying the coronavirus is spreading exponential. frns's prime minister said 46% of hospital bed in paris are occupied by covid patients and added that more icu beds is not feasible in thailands, hundreds protesting now under two state of emergency. one for the demonstration. the other for the pandemic

in california, another wild fire one utility cut power to more than 50,000 customers to prevent sparking and new blazes. carl, back to you. california is under red flag warning all the way through tomorrow we'll keep an eye on it. >> a state i know you know well. facebook and twitter facing a backlash after the distribution of the story of hunter biden yesterday. saying the company's communication blocking the ability to share the story is, quote, unacceptable although the story did violate the company's rules. now a fellow at harvard's den ty school and steve guards with us as well. thank you for your time today. good to see you. >> jack and twitter safety tried to frame this around pdfs with

information that violated their safety rules what do you make of it >> i think the underlying theme here is the national politics and the election that is something we can't forget these companies have been very spenci responsive to republicans and democrats over the past one year to 18 months both twitter and facebook have been in this case, the cited reason that the information was hacked may not necessarily be the real reason twitter is acting against the resharing of it. >> what do you think the real reason is? >> i think that real reason could certainly be that is hacked material. twieter might know that but it doesn't have a way of really

knowing that it might be the fact that this narrative is aligned with the russian misinformation campaign we've seen over recent months and which many members of the gop have been spreading as well, including people like rudy giuliani and other close associates with president trump. i think it could very well be that there is pressure on twitter for not just democrats but the public to do something about this to make sure we don't see another situation like 2016 where we saw this leak that had no serious rea lagss against the campaign and nevertheless helped trump to victory, you could say. >> the long-time editor, reporter as well particularly as somebody who has

looked through a lot of reporting and made a decision as to his integrity how do you expect twitter and facebook to do that? do they have the ability to do these kind of jobs >> they don't. every time they try through a series of inconsistent actions and policies, they look that much worse i have a theory here my opinion is that there is a high likelihood that this story is a hoax, maybe even perpetrated by the russians again. it doesn't matter what i think what matters is that people ought to be able to read it and decide and they can decide by reading the new york post and compare to what a lot of other media institutions say that's the way it is supposed to work what twitter and facebook have decided is that they've admitted that they are going to be

editors too. they don't have anyone qualified to be editors. so they know nothing about what they are doing instead, they've pumped up a story because their inconsistent actions open them to an attack what should have been done, i wish that they would do is what microsoft does is use the service like news guard, which tells people something about the reliability of something they are about to read. the nutrition label in the new york post would tell people they tend to favor president trump and have posted things in the past that would start this debate that would be joined by other news organizations, which i would hope are out there trying to report on the bone tieds of what really looks looic a phoney story

>> a lot of people get their news directly from facebook and twitter and nowhere else >> that's why there should be labels and icons like we provide to microsoft that tell people whether and how much they can trust what they are getting on facebook or twitter. >> twitter says they've had the policy in place since 2018 i'm wondering how many instances -- >> what policy is that >> i'll throw this to you. how many times are aware of the company applying this and what the methodology itself is. how clear is it? >> i don't know of any instances where twitter has used the same mechanism to suggest that there

is content that has been tapped. but, i think it takes an instant like this for them to actually activate it. >> how is it that they might have made this assertion i think the process would be since twitter doesn't have access to the actual information or sourcing that the new york post has suggested it has used, they have to rely on third party experts. to that end, what will they have done is work with journalists and third party experts to drum up support for making this kind of assertion before coming out with it in such force or at least ideally, that's what they would have done.

i think what steven is suggesting here is absolutely right. there is not really any process. these companies need to do much better, make it transparent how they are going to undertake all these decisions now and into the future and rely on publicly trusted third parties to be the servants of making sure our media and information system is safe and fair. >> you could go on these platforms and policies that involve the information. encouraging harm on others, targeting harassment would you argue there is a beginning consistent policy regarding restriction or is it open season at this point? >> let's look at what happened

it seems obvious to me both twitter and facebook decided a month or two ago as a lot of people did, there is going to be some kind of october surprise from one candidate or the other. it could be a fraud. we have to be ready for it we have to be ready to pull the trigger quickly. not consult a lot of journalists or think about it for a day or two because this stuff is so viral. we have to pull the trigger quickly. that's what they did here. >> it may be true this is a hoax but they don't have the wherewithal to decide that it has blown up in their face. they don't have a process. they shouldn't take it on themselves to claim they have a process when they don't have a process. they should be making sure stories that debunk this story

bets play. i don't know what it means when facebook says we've suppressed it so that it is not shared by many people. what does that mean? >> do you have an answer for that knowing how things work in their shop >> they do often take certain pieces of content whether it is hateful, violent or spread by the ira, the kremlin and disinformation troop they do take those kinds of defending content and demote it. they don't necessarily take it off line they do take all ira stuff off line if they can attribute it. they don't take it off line but they tax them in terms of vie ralt sa that they are demoted in our news feeds

we'd have to scroll through thousands of pieces of content to ever see them that's what andy stone, the spokesman for facebook suggested he said, which is exactly what steven noted >> to his point, we have no idea how facebook's arhythm works that's not good when the dominant social media platform we all use to consume news is not being transparent about the ways in which it channels that news to the voting population. >> by the way, let me add that the result of what they've done is anything but demoting the

story. everybody is talking about it because of what they did and the attention they call to it. this is a total fiasco no matter how you look at it >> we haven't talked deep fakes and other restrictions it is good to see you guys thank you for the help take a look at shares of fastly getting crushed after issuing a current quarter revenue cutting itsout look after a cut in business from its largest customer that stock down 24% just today more ahead

what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley. into strategies keeping your oysters growing while keeping your business growing has you swamped. (♪ )

you need to hire i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base so you can start hiring right away. claim your seventy-five-dollar credit when you post your first job at indeed.com/promo counterfeit ppe becoming a

problem for companies like 3 m >> the proliferation is prompting 3 m to take serious action so far they've filed 20 lawsuits just as covid cases are back on the rise in certain states intensifying the gear seen in keeping front line workers safe. footage of a recent raid in vietnam. piles of boxes full of fake masks. for the average consumer it can be difficult to identify they can appear damaged, faded or have broken straps. >> often these counterfeit production facilities are not exact exactly garage operations, they are sophisticated and cross border activity.

so part of the challenge is tracing it back to their source. so far, many fake respirators have gone up but the fraudulent activity is not just confined. >> we are not just seeing fraudulent masks we are seeing test kits, potential coors, anything that could be used. gowns. everything out there that could be profited from, we are seeing all of that. it is a huge, huge market. >> in addition to fielting fraud, 3 m continues to ramp up production of respirator now at about 95 million a month. >> seven months into this and still dealing with many of the same issues. thank you.

as we head into the winter, doctors say they still don't have enough ppe. we have that story >> it is a really desperate situation as far as ppe goes >> the shortage of personal protective equipment of the masks, gloves and things to keep doctors safe a group of doctors banded together to help >> we planned to be around until someone else stepped in. seven months later the group called get us ppe is still meeting. critical need still rising most needed, n 95 surgical masks, disinfek tant wipes >> at this hospital in california started making their own wipes as a work around the

need for supplies is huge. using 2,000 masks and 1,000 gloves they've been working to replenish stockpile. the national stockpile and femae more than 125 million m-95 masks and millions of gloves and gowns zblcht sending people to work every day and asking them to do their jobs without the tools they need is not the american way. we should have done better >> and, guys, for larger hospital systems, we're hearing the supply chain situation is getting a little bit better. although, they are still having to reuse m-95 masks, for example, which are designed to be one time use. and there is also spot shortages of things like gloves. but really for the little guys, they're having real trouble. david? >> wow

disturbing thank you, meg take a look at the banks morgan stanley reported this morning. of course, we talk about it as a bank it's as much a wealth asset manager as anything else we still have it as an investment bank. they did report numbers. j.p. morgan chase is up. a little sign of life. we're back rig aerhi htft ts. sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... boss: doug? sorry about that. umm...what...its...um... boss: you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around.

don't get mad. get e*trade and start trading today.

shares of shift technologies are down in the nasdaq debut the competitor to the likes of carvana are listing via a reverse merge we are a special purpose acquisition corporation insurance acquisition. joining us now is shift's co-ceo and co-founder i always start these oby asking why a spac >> they allow you to move things along quickly. and they're great for companies like us in terms of how much cap you can raise. and in this market condition, timing is really critical. it allows you to time things

>> why was tommiiming critical >> after lockdown, we had a hard time finding companies some of the best companies had trouble raising private capital. the public markets were performing well. from that point of view getting out there quickly was an important factor and, you know, obviously this is a capital intensive business but if you build it right, you can create a operation as we saw with carvana and carmax. the technology leverage is huge. getting out into the market quickly is really important. and the spac allowed us to do that >> timing is also seemingly in your favor at least when it comes to the used car market which may never have been hotter how is that going to impact your business or ability to do business >> yeah. this year has been pretty unusual. who would have thought we would have 60 to 90 days of lockdowns and then coming out of those, you have incredible demand for cars and prices would be at record highs

it's really unusual summer i think everyone is talking about how gross profit for dealerships have been very high in the summer and demand for vehicles is really strong. we had an awesome opportunity to service a lot of customers growth has been really fantastic. and, frankly, our acquisition channel has been going really well and demand on purchasing cars has been also really strong. lots of people come to shift.com to buy cars. i think we're now getting back to normal. usually the fall in the used car market is very seasonal and prices go down and that's definitely starting to happen. i think a lot of people were a little exuberant in terms of of what the expectation would be. but it's not going to. >> george, finally, you know, it seems to be a competitive market many people know car max and carvana. i never heard of shift technologies what do you do better than they do and how much are you going to spend on marketing to get your naum o name out there >> shift has two things that our

peers don't do we sell a much broad set of unven torru inventory. we're one of the few places can you buy a car that is six to 10 years old. and secondly, we're bringing the test drive to your home. you can come to our site, find the car, test drive and it shows up at your house which is one way people love shift. it is a competitive market for sure but for carvana and shift, we're less than 1% of the market in terms of total sales e- commerce adoption is tiny in these cars or automotive in general. there is a huge opportunity for all three of us to grow. literally shift can grow 30 x and carvana 40 x >> we'll be watching congratulations on getting public thanks to george harrison. "squawk alley" starts on the other side of this break

good morning it is 8:00 a.m. at twitter headquarters in san francisco, california it's 11:00 a.m. on wall street and "squawk alley" is live ♪ here i come again