good morning it is 8:00 a.m. at apple headquarters in cupertino, california and it's 11:00 a.m. on wall street welcome to "squawkbox live." ♪ good monday morning. welcome to "squawk alley." markets started out with a nice start to the week. dow up about 105 lost some ground here as we continue to keep pace of q 3

earnings which will include some high-tech bellwether names later in the week. >> we have apple shares, they lost their opening pop despite top apple analysts saying first day iphone 12 preorders surpassed last year's numbers for the iphone 11. that bodes well for the mini and pro max, who iphone models that have not taken preorders and ship four weeks from today a couple more big q4 products, the x-box series x and the sony playstation 5 will hit shelves verizon and at&t this week more-likely with 5g comments texas instruments and intel all reporting. mike santoli joins us now with more >> we'll get more of a critical mass of earnings hitting the tape the question is is the street going to be more impressed this week than last week in the opening rounds we had an 81% beat rate by the

companies that reported last week yet the average stock move buzz down more than 1.5% in the one day after those results. it suggests perhaps that a lot of investors would think a big beat rate was in the bag for this quarter with those big bellwether tech stocks, there's an interesting dynamic. one, they're significantly below the highs from earlier this year but tech as a sector is a leadership group and has outperformed the overall market. and tech estimates have not gone up much but they have not gone down much. for apple, it's logical that you would want to look at the iphone demands. so these big tech stocks have been rewarded for their steadiness, not necessarily because they're accelerating out of this. even netflix since about april, the earnings forecast for this year has been static static is great because earnings

have been down in general 20% at the lows, but it's a question if they can get an extra kick from the results here anything they can say about the expectations for demand going into next year >> mike, one company i'm looking at closely is ibm. first up reporting after the bell today giveni giving up all of its gains from that spin-off news we'll see if there are plans to invest more capital back into the business, but, mike, how much should we or can we read into ibm's earnings as a potential precursor to cloud results this quarter >> i think that for the most part it's the financial engineering piece as is so often the case with ibm that is in the foreground one of the objectives it would seem of the spinoff is to have the higher growth remaining business get rewarded for things

like cap ex as opposed to gettig obscured to other businesses perhaps they want to transition the company into longer growth themes it's not so much a bellwether in the moment but whatever they can say about bigger tech spending trends among large companies after this shock this year is probably going to be relevant. ibm as a stock, it's a difficult time for years getting out of its own way, even when it's had decent quarters. we'll see if maybe the spinoff news can create something different here >> indeed. thank you. joining us now for more on this tech environment, lowe tony good morning i know you are bullish on apple, iphone, 5g, but i think there's some big questions out there about whether the networks are really ready, whether consumers will be disappointed seems to me in the next four weeks there's a big consumer

test in tech with these iphones and the early reviews and then major gaming consoles. we have not seen a refresh like this in about seven years. do you think the consumer can hold up? >> these are interesting questions. first and for most, we have some big macro events coming up as well with the election, hopefully getting a control on the pandemic as well as the stimulus package i think all of those will also help to influence consumer behavior with regard to apple and the iphone, we have seen reports showing that the 12 sales look good so far for the models on pre-release orders i think the most interesting thing is that we're at a situation where this is where the expectation would be for the so-called super cycle with regard to iphone and the refresh with strong consumer demand. but we don't really have a true killer app per se. i think we'll definitely see some new innovative features with the iphone with regard to

camera and clarity then also the ability to leverage the 5g networks but the question remains is are these things enough for the consumer i think historically we have seen these exciting applications that friends want to show off to their other friends. that kind of spurs consumer demand it's almost difficult to really show an advantage to a friend of the 5g network so we'll see personally i'm due for an upgrade. i'm planning on preordering the max when it becomes available. >> on the other hand, game consoles are a lot easier to show off but i wonder this week of earnings what is most important? we get a number of semiconductor names, tecxas instruments, lam research, will that give us much insight into the pipeline or is it really more about software

these days no matter what the chip folks are doing >> again, i go back to the comment around these killer apps it is really more in my opinion about the software on the consumer side and the business side i think the good news is that this technology on the hardware side has become so pervasive and so good we almost don't even think about it like the complexity has been taken away because of the great user experience which allows everyone to focus on what it is we're actually using the technology for >> you mentioned the pandemic, trying to get a handle on it broadcom over the weekend and over the past couple of weeks saying the fall and winter look troublesome, if the current trends extend. what do you think that means -- we have netflix this week, in terms of the streaming

environment, is it possible for people to watch any more than they already are or subscribe more than they already are because they already have been home for several months to some degree >> you know, it's interesting. obviously the new subscriber growth is what really drives the share price. i do believe we have more head room with regard to netflix. everyone will be at home it will be colder. screens will be more prevalent than they are now. i see head room in terms of netflix growing their subscriber base many analysts think that maybe netflix was being conservative with regard to their projections for subscriber growth and a lot of the analysts are increasing estimates for new subscribers. i think personally i'll be

watching a lot of netflix for a lot of my favorite shows and that will translate over to other consumers as well. >> certainly many of us. there's a "journal" piece talking about how tech accounts for 40% of the s&p, and that's actually a greater proportion than what we saw during the dotcom bubble peak i wonder if this concerns you particularly because your top pick s are in tech are stocks too dependent on the sector what happens if we see a pullback >> i think without question as marc andreessen said, software is eating the world. we're seeing the incorporation of technology not only in more of our consumer lives but in more of our business lives as well i think obviously the unfortunate side of the pandemic with regard to human life, a positive has been that it has accelerated a lot of the tailwinds that were already existing for things like being able to do remote work

we've seen billions of dollars poured into infrastructure so that companies can actually have their employees operate extremely effectively in a remote setting we've seen things like netflix which we talked about. we've seen things like inst instacart. all these things are already accelerated by the tailwinds i think long-term i'm bullish on technology just given where i see the usage going and the ability to really just fundamentally change peoples lives. technology is so integrated into our lives these days my home, everything is a smart home you know, i can't imagine what i would do if i didn't have the ability to control things with my iphone or my computer or if i forget to turn my alarm on, to do that remotely i just think even the fact that we're able to have this broadcast, you know, over zoom, we actually are seeing no

slowdown in technology whatsoever i think even just looking at, again, going back to the pandemic, we have seen some behavioral changes i actually suspect that we're going to see some new technologies emerge as a result of some of these behaviors that are going to persist >> yeah. we'll see if the companies reflect similar confidence in their guidance as they report this week. lo toney, thank you. >> thank you up next, following last week's social media backlash surrounding misinformation, are mark zuckerberg and facebook really ready for the election just two weeks from tomorrow "squawk alley" returns in two minutes.

when i was in high school, 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. ♪

gone is the hooded nerdy kid shepherding his company on to the main stage a new "wall street journal" article titled how mark zuckerberg learned politics appear today joining us is the author of that article. your reporting painted an image of zuckerberg who took 2016 as a wake-up call and leaned into policy in a big way, cultivated personal relationships with policymakers, publishers, civil

rights activists have we ever seen this level, this kind of engagement in terms of political and social reach out from a tech ceo before >> i think you see this a lot with tim cook at apple you see it certainly a little bit with jack dorsey at twitter. it's definitely new for facebook it's new for mark, at least in the last several years a lot of these tech ceos belong to the camp of politics is something that happens on the other side of the coast. 2016 was a massive wake-up call and they realized they couldn't leave it to the policy teams there anymore. >> i guess it still remains to be seen, but in your research and reporting, do you think that zuckerberg and facebook are ready for the election, in a better position this time around while the issues are different than they were in 2016 >> they certainly have done more they've hired thousands of

people to vet content and to ensure that misinformation doesn't pget on the platform. they hired fact checkers and a lot of people to make sure they stamp out the same kinds of threats we saw in 2016 there are still a lot of challenges, new challenges like you brought up so domestic disinformation is a big problem. these are not russians spreading misinformation about the election but americans spreading misinformation about the election that's a challenge they're still adapting to. then there's, you know, they have competing goals they want to make sure they stamp out disinformation but also want to make sure that they're being fair and neutral and non-partisan as possible these two goals periodically clash. >> deepa, you mentioned this shift happened after the 2016 election, but from my standpoint there were at least two shifts

then there's been a difference over the past two years in how zuckerberg seems to have operated politically versus 2016 to 2018. sheryl sandberg was out front in that first period when the cambridge analytica heat was on. she took a beating in the public eye during that period it seems to me over the past couple of years in a way she's retreated from that more direct engagement position and zuckerberg has come more forward. is that what you found as well >> i think you've seen mark take control around the cambridge analytica crisis that felt like an existential crisis for facebook. it felt like they were suddenly experiencing a lot of different regulatory -- government scrutiny from around the world and both sides of the atlantic, and mark felt like he had to step in. if you remember around this time, that was his first congressional testimony. he was asked to testify for the senate and the house

that was new for him he's done it several times since then you have a much larger engagement after 2018 that starts in the 2016 period with mark trying to understand exactly what the impact of his platform has been on politics. then snowballing into what we see today. >> should investors take away from this the idea that founder ceos like zuckerberg who like to focus on product and saw these policy and regulatory things as ancillary have perhaps shifted their view and now view these political issues and headwinds as core to product decisions and things they themselves need to take hands-on approach to? >> absolutely. the government scrutiny is not going anywhere they have to continue to think about what the policy implications are of everything that they build. they have to think about the social implications of everything that they build the days of let's build it, put

it out in the world, tweak it along the way, those days are largely over they have to put more thought into the products they build before they launch, which is a shift for these companies and a big part of why they have been so successful. they've been able to move so quickly and now the additional scrutiny has slowed them down. >> back to jon's point and what you reported as sheryl sandberg taking a step back while zuckerberg takes a more active step forward who else is zuckerberg leaning on i know he brought in the former deputy british pm. but we've talked a lot on the program about how these policies feel inconsistent and transparency particularly when it comes to fact checks is not all that clear so who is he leaning on did you find in your reporting internally >> so one person he's leaning on internally is joel kaplan, the head of global policy. a former bush aid and a

republican i think joel's guidance has been important for mark as the trump administration has worn on i think they -- i think there are other people internally on the same policy team that mark is talking to. certainly he's relying on peter thiel. my colleagues and i reported back in december that peter thiel was a big driver or supporter of the policy to not fact check political ads that took got flack for a year ago. he's relying on these voices that understand the right internally as you remember sheryl sandberg, huge democratic donor supported hillary clinton. so i think he's shifting more to the people inside his company that understand conservatives and the right. so there's a little bit of shifting back and forth depending on who is in power >> all right thank you so much for your

insights great article. >> thanks. keep your eyes on draftkings today, now down 30% from the october highs when it was above 64 some wall street firms growing skeptical over the valuation of betting stocks like dkng and penn national. for more on th gato to cnbc pro. more "squawk alley" after the break. i had saved up some money and then found the home of my dreams. but my home of my dreams needed some work sofi was the first lender that even offered a personal loan. i didn't even know that was an option. the personal loan let us renovate our single family house into a multi-unit home. and i get to live in this beautiful house with this beautiful kitchen and it's all thanks to sofi.

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let's turn back to apple and other products a top analyst reports strong preorders for the iphone 12. the stock currently trading about flat the iphone kicks off this huge compressed launch season for tech products, unusual in 2020 we have this first wave of iphone 12s that ships friday, then orders for the 12 mini and 12 max those ship about a week affleck

sh after election day when we get the x-box x from microsoft and the playstation 5 from sony and singles day all compressed in that period of time. >> yeah. even though the overall retail season, jon, people talk about it being extended starting earlier and going all the way into the holidays. we've had this discussion so many times about the degree to which the consumer in aggregate has gone into this pandemic with more money, better fico scores we found out today more discretionary income more savings, and more time at home you put all that together, that spells an environment where you might actually spend more on a gaming system or a phone >> that's right. we've seen the carriers actually discounting the 5g iphone 12 with an aggression that we have not seen in the past which suggests, hey, they want to get this into peoples hands, make the decision easier for them on

top of those factors carl was mentioning >> and china is such an important piece in this story. we had gdp numbers out over the weekend. recovering to pre-pandemic levels key for the iphone story as well, huawei's smartphones have been very, very popular in china, but since it was put on the u.s. export blacklist taking a hit because they can't get those android updates or the google apps. it will be interesting to see what the response is over there to the ifshgs phoiphone 12, esps we approach singles day on november 11th look at alibaba shares, hitting a fresh 52-week high in today's session. and financial tech giant, ant group, winning approval from chinese regulators for the hong kong leg of its blockbuster ipo. the company, of course, owned 33% by alibaba and controlled by billionaire jack ma. the fintech giant is targeting

the end of the first week of november for its dual hong kong/shanghai listing. that's right after the election. it is later than hoped for as for valuation, investors are indicating a valuation of 2$250 billion or above which would make it larger than all but one of our big five banks in terms of market cap. "squawk alley" will be right back s 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.

welcome back i'm sue herera here is your cnbc news update. the supreme court will review a trump administration policy than mexico for court hearings. the high court will look at whether the trump administration had legal authority to use pentagon money to build portions of the wall on the border with mexico. in ohio investigators are looking into why a woman crashed her vehicle into the house a 17-year-old boy in the house was taken to the hospital. in india, heavy air pollution continues to shroud new delhi. it's the worst october smog in two years as farmers burn crop stubble in surrounding states. but the smog and rising covid-19 cases is not stopping india's schools from reopening

several states are resuming classes today after six months of lockdowns that's the news update at this hour carl, back to you. >> thank you very much you might remember the president back in 2018 struck a deal with foxconn that promised to turn wisconsin into a manufacturing powerhouse the verge is out with a piece this morning that looks at the culmination of a four-month investigation into the company which the president had once called the eighth wonder of the world. joining us no discuss the piece is the author. this looks like quite a reporting effort thousands of documents, multiple interviews, and the piece argues that the illusion was maintained by a sizable portion of the wisconsin gop. >> that is correct it's funny you mentioned that reporting, it's thousands of documents, months of work all to say an obvious thing, which is that there is no lcd factor in

wisconsin. there was never a plan for one foxconn, trump, wisconsin gop struck that deal without a firm plan to actually build a factory. now three years later the building that is supposedly the factory has been permitted to be used as storage. >> to what degree did the pandemic alter the promise of the factory? if covid had never come along, would we be talking about something much different what intentions do you think foxconn originally had for this? >> i think if covid had not come along we would have seen a ribbon cutting ceremony for the president on the campaign trail. i don't think we would have seen an lcd factory there were never plans filed for such a factory what foxconn i think was looking for in 2017 was in the middle of a trade war that he called foxconn's biggest challenge to his shareholders, he got to make

this deal with trump he got to have a groundbreaking ceremony, in exchange he got unfettered access to the trump white house during the middle of the trade war that affected imports from china that seems like the heart of the deal in the meantime, the people of wisconsin had been expecting 13,000 jobs, businesses and suppliers across wisconsin across the area have been trying to do business with foxconn only to find there's nothing there and no business to be done reporting a story like this, our senior reporter, who has been on this case for basically two years, nota lot of people wanted to talk and then suddenly a lot of people wanted to talk because the facade, the runaround had gotten to be too much that all broke at once over the past four months >> you guys have been following this story for longer than four months, right now with this coming out, a couple weeks before the election, there's

quite a political backdrop wisconsin is a battleground state. it's leaning blue over the past few weeks, but could go either way. to what degree do the politics of economic development, you think, play into the way this story continues? >> i think those politics are front and center fundamentally that factory is a monument to political aspirations. trump and the wisconsin gop promised to bring back manufacturing to southeast wisconsin, to that area. they promised 13,000 jobs. they did so with the largest tax subsidy package in american history. the cost of the subsidy is somewhere between 200,000 and over $1 million per job, which is incredible. that is an attempt to bring back manufacturing to that area now we've come to the point where it's been clear kind of from the start that manufacturing lcds in wisconsin at those labor rates without key suppliers like corning in the area was never viable.

i think -- the way i've thinking about it -- go ahead >> so i wonder if you have found -- i think you have in this piece -- real costs to moves like this, because often we hear, well, you know, it's a tax credit, a subsidy, it only really cost taxpayers if there are jobs created f there , if te issues that come out of this, but there were issues of eminent domain, houses knocked down to make room for the facilities which it sounds like foxconn may never get to use >> yes people were moved out of their houses the village of mt. pleasant declared it an area blighted, so they tore down the houses. much of the land has not been used they leased back to one of the local farmers so he could get use out of it. foxconn has employed hundreds of people now in wisconsin who didn't have anything to do you know, josh's reporting

revealed that people were coming to work every day, sitting down and watching netflix all day, watching youtube all day one person told josh that he watched the entire "game of thrones" run in trepration fpre the final season during his time at foxconn when those people were there long enough to qualify for the tax subsidy payments to foxconn, they were laid off that churn in that marketplace is not healthy, it's not good. it speaks to how this was a project about optics as opposed to a project about jobs. >> those are some fascinating tidbits from the reporting beyond manufacturing, i still remember as well shortly after the election when we saw alibaba's jack ma, softbank's masayoshi son stand next to the president promising investment and jobs, a lot of which has come up short, at least it seems now. do you think that there are other cases like this perhaps

empty promises or unravelled plans that could come out in the years to come? >> i do. the way i've been thinking about this story in particular is that the foxconn factory is the physical manifestation of a lot of the trump era policymaking. so there's a health care plan that will come out in two weeks. i'm on she shthis show to talk how tiktok will get banned tomorrow and it doesn't get banned there's an lcd factory in wisconsin that is not an lcd factory. at this point it's wise to evaluate a lot of the promises with the assumption that there's nothing there. we've seen the pattern over and over and over again. now it is basically wreaked havoc in wisconsin >> so you think there are implications beyond foxconn here, do you think municipalities or states think differently about incentivizing manufacturing projects and do voters in various states

that might be receptive to that suddenly think differently too >> yeah. i think these gigantic tax subsidy deals have been under a lot of scrutiny over time. i think the foxconn project given the size, the scale of the subsidy, the infrastructure development around the area, it has attracted a renewed amount of interest on whether subsidies are ever worth it. i heard from academics who say these are never worth it and we should stop having states race to the bottom or the top depending on how you count in offering tax subsidies to encourage businesses to set up shop that conversation, i think, as long as there's no lcd factory in wisconsin, this empty building will be a symbol that continues to heat up the conversation about whether subsidies are acceptable at all. >> we had a big discussion about it surrounding amazon hq to the

long ago this is another chapter in that. nilay, thanks for highlighting it good to see you. >> good to see you thanks for having me on. as we head to break, a check on the markets you can see major averages all in the red to different degrees. the nasdaq near break even jane wells is live from hawaii with a look at something that is still ahead in the show. jane >> jon, yeah hawaii has reopened without quarantine as the state faces a 2$2.3 billion deficit as touris has collapsed. if you plan on coming here, there's a few things you need to do ahead of time we'll explain that next.

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enrollment ends december 7th. call unitedhealthcare or go online today. [sfx: mnemonic] seven months hawaii is reopening to tourists but is it too late for the state economy to recover? jane wells is there live with the latest you made it, no shortage of hoops to jump through, but you are there. i can tell from your backdrop it's still dark. >> it is it could take years for hawaii to recover they brought in more workers to the airport in what started out as a bumpy beginning but that's started to smooth out that's because basically they got more people than they expected arriving in hawaii on thursday after it reopened without the need to quarantine for two weeks as long as you had a negative covid test within 72 hours of arrival.

on the big island it was especially bumpy because this island is making passengers take a rapid antigen test and you can't leave the airport until results come back in people were waiting as long as four hours to come back, but when we got here it was less than an hour when you come here, you have to fill out an account with the state of hawaii, a qr code, there's a lot of hoops to jump through. >> i would say just pay attention to the rules and regulations that the state is requiring. there's a lot of people on our flight that didn't take their test, didn't have the results back yet >> if you're not really digital literal or if you're digital illiterate, it's confusing >> the hawaiian economy has been devastat devastated in january, the state received almost 23,000 arrivals daily, that fell 93%. on thursday, over 10,000 people

arrived. the government points out the need for change. >> beyond travel and tourism, as a long-term solution we must make systemic improvements that result in a more diversified and resilient economy for hawaii residents. >> you can still come to hawaii. hawaii is wide open. you can do it without taking tests, registering with the state, but only if you plan to quarantine for 14 days in your room with daily check-ins. you can't even rent a car. believe me, they are hard core about people who violate these rules and they're fining them thousands of dollars fortunately i have this, i can say hello, i'm negative. i got my qr code it's worth it. >> jane, maybe it's early for this, this is something that you might be able to look into while you're there, but in silicon valley, northern california, there are a couple of particularly popular vacation spots, one is tahoe. the other is going over to

hawaii i wonder as they're talking about diversifying the state economy, more tech companies are talking about letting people work remotely, i wonder if they might be able to lure some tech workers to live in hawaii permanently. >> well, as you know, larry ellison and mark zuckerberg already have residencies here. >> yeah. ellison has a whole island >> yeah, he does please don't leave california, we need your tax dollars, but i guess because your businesses are still in california we can still take your tax dollars. i think hawaii has been trying to talk about diversifying for a long time. there's all kinds of sort of tech things with green energy and that sort of thing what you mentioned is interesting. by the way, facebook wanting to lower the incomes of people who move out of state to work, that probably wouldn't work here. they plight have might have to incomes if they wanted to move here and work remotely >> jane, great report. i'll let you get settled i know the time difference is

always a challenge when you go west jane wells in hawaii, thanks we'll take a break with peloton getting a boost from the at-home fitness craze will other companies follow suit stock is up today t f e buofth record high last week. "squawk alley" is back in a moment when i was in high school, 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. ♪ we're committed to making acollege more accessibley,day. by making it more affordable, that's why we're keeping our tuition the same through the year 2021. - i knew snhu was the place for me when i saw how affordable it was. i ran to my husband with my computer

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during the pandemic we have seen an increased use of at-homeworkout streaming services our next guest developed a dance fitness digital platform that is

up 6x in members in the past year joining us is evan zoe, the ceo of steezy studio can you give us an idea of how many paid subscribers you have i never heard of the studio. i don't know if you started off small or what. >> thanks for having us on we are early in the life cycle, we don't share those numbers publicly, but we have subscribers in over 100 countries around the world, which is really exciting to just see this global appeal of dance that our app has >> so, is this zoomba for the zoom era because you're talking about dance and making it not intimidating there's a subscription edge behind it. how much of this is relying on peoples increased use of streaming? how much of this is leaning on social to do the marketing for you? >> yeah. i guess i can give you a quick background of what steezy studio

is steezy is an app that gives you access to over 200 dance studios. our mission is to make learning any style of dance easy and fun for anyone in the world. so we do have a category of dance fitness that is similar to zoomba, but we also teach you dance skills and styles like hip-hop, popping, house and other styles >> what will you do when things open back up very often dance is a social thing. people like to dance with other people, especially if they're getting better at it is there a plan or necessity in your business model to make real-world connections back when that's a thing we can do >> yeah, absolutely. we've known that there's a lot of advance tajs to learning at-home and doing at-home fitness since we launched our first class five years ago people told us they use steezy

for all different types of reasons. for some people that's the only option for them where they live, some people have steezy have it as a hybrid model with the classes they take in person. the pandemic accelerated the trend of at-home learning but i think it's a trend that will be here to stay >> it makes sense to me. my daughter was into hip-hop dancing. >> nice. >> can't do lessons anymore and misses her group pricing-wise, how is it structured and how sticky can you make it to keep it from something that blows up big and then fades as we get closer to a vaccine. >> pricing-wise, it's similar to a dance class. for us, our model is super affordable, $20 a month or 1$100 a year that's a handful of dance classes in person. for a lot of people these in-person classes are really

cost prohibitive or, again, they don't have good options around them and they want to learn from these dance influencers that they see on youtube and tiktok and all these different platforms. you just can't really get that at local studios sometimes >> what keeps users with steezy if peloton or apple or another connected fitness app looks to offer dancing classes? you got lululemon just infusing a bunch of capital they seem perfect for this kind of thing >> absolutely. for us, you know, all these other platforms, they're really focused on fitness, while we really think of yourselves as a dance company. we're really just focused on the skill and art of dance itself and that's, you know, we even think of ourselves sometimes as an anti-fitness app. our goal is to make our dancing so fun that you want to keep doing them over and over and get

invested into building your dance skills again, we have users in over 100 countries around the world that really speak to how global of a phenomenon dance is. that's a lot easier to accomplish when you're not selling a piece of hardware. >> so, are you working with any influencers? is that an important piece of this if it's for fun instead of fitness and you're going on the backs of the tiktok and instagram popularity >> yeah. we work with some amazing influencers, we partner with a lot of them to create beautiful content that they're excited and proud to share with different social channels. so they have danced with artists like justin bieber, justin timberlake, even massive k-pop icons like bts and danced on shows like "world of dance." "so you think you can dance" all of that. so we work with great instructors and pair that with unique technology that makes

learning dance easier. >> looking forward to dance being a thing that we can do in more venues again. evan, thanks for being with us >> thank you, guys jon, as we learned, you can't go wrong with some bts dance moves. fedex approaching a new all-time high. u.p.s. holding on to gains as the "wall street journal" reports that the two carriers have told some of their largest shippers that most of their holiday capacity is already booked this could be a huge holiday season for e-commerce. more "squawk alley" after this break.

i'm not one who believes that human interaction and the importance of human interaction in business is going away. so we're at an uncertain time with respect to the virus and the pandemic i think that forces us all to adapt and adjust but at a time when we get to the other side of it and people are safe, i'm a big believer that that human contact and the need to move around and be with people will be no different than it was before. that doesn't mean we can't leverage technology for certain kinds of interactions.

but ultimately showing up, being present, interacting directly with people makes an enormous difference >> that's david salomon talking to milkin talking in the last hour talking about the return to office dynamic and sounding like netflix hr than dropbox. >> for sure. i think it comes down to whether it's in business or just in life there's some types of relationships you can't consummate over zoom it tends to be the more important ones my sense from talking to ceos is that there are some types of meetings, some types of gatherings and customer relationships that will require that face-to-face interaction. it might take us a while to figure out which ones. >> absolutely. i think companies are figuring that out in different ways you mentioned dropbox. we were told last week they're not getting rid of that

in-person collaborative idea but they're doing it dispersed potentially subleasing some of their huge amount os of san francisco landscape. so there's some level of human interaction, but what does that look like and do you need that same commercial real estate footprint that we've had >> it's true a lot of that is tied up in what it means to be in financial these days between trading and investment banking, so much of it is driven by personal relationships. jon, as we get set for tonight and ibm, we'll keep an eye on what to look for in the morning we'll get travelers, pge and lockheed. >> i think because of the structural changes being made, ginni rometty didn't get in on the calls, but it will be important to hear from management exactly how they plan to manage this restructure and what more changes might be

coming >> yeah. guys, fed vice chair clarida on the tape, we're not going to get back to where we want until we put the pandemic and the virus behind us. some headlines that probably seem somewhat intuitive. then, of course, pelosi and the treasury secretary are scheduled to speak at 3:00 this afternoon even though the treasury secretary is traveling in the mideast. a lot to watch let's get to headquarters and "the half. welcome to "the halftime repor report". the march to new highs and why major market watcher says a big correction is coming and soon. we debate that with our investment committee today joining me are joe, john, jenny harrington from gillman hill asset management and rob seechens let's begin with stocks. less than 3% from a new milestone, yet morgan stanley's top strategist