see you soon >>> next, there are calls on the street out on visa and mastercard we'll discuss and debate those and as a reminder, if you are going somewhere, you're going to need or want the cnbc app. check it out the dow is up 300 points halftime is back right after is th experience the adventure of a bigger world in a highly capable lexus suv at the golden opportunity sales event. lease the 2020 nx 300 for $339 a month for 36 months. experience amazing at your lexus dealer. >>> welcome back let's get some of the headlines outside of world of money and business let's go to sue. >> good to see you thanks so much here is what's happening at this hour moderna says it expects to start phase three trials of its covid-19 vaccine on july 27th. the tests will be conducted at 87 locations across the country. >>> a small study shows immunity to the coronavirus may only last a few months it found only 1 in 6 people had significant amount of antibodies 675 da 65 days after first sign of symptoms the study has not been peer reviewed >>> florida officials reporting 132 new deaths the highest single d

you can finish. - [announcer] finish your degree at snhu.edu. >>> stocks of visa, mastercard and paypal paypal profits up 86% in the quarter while spending volumes at visa and mastercard both declined let's discuss this space if you look at the stock performance, it's clear where investors are placing their bets paypal up 75% this year. >> yeah, there's no question we also have to remember that when stocks even stocks of best companies can get way ahead of themselves sometimes let's face it, look what amazon has done over the past 20 years is changed the world it's had many, many declines after it got too far people got too far caught up it went back down 90% when the dot com bubble claollapsed i'm not trying to say paypal will see a huge decline. if you look at its weekly trend it's getting very overbasic. it's got above 80 now. it's gotten higher than that one other time in 2017 this is getting very frothy and the most recent move has been pa parabolic. i'm sure robinhood traders played a part in that. we have to constitute the difference between stocks and the companies. right now it

mastercard and visa charge 2.5% to 3.5% for payment processing.ntage with the that apple and google charge is that it is completely disconnected from their business. at epic, we know this. epic has processed more than a billion dollars worth of direct transactions between our players and companies on windows, mac, and android. we know the cost of operating the store. 5% 7% of revenue. apple and google have way higher economies of scale. you can break down the cost by component. it has nothing to do with these rents apple and google are charging. to pay always happy providers for a fair service they provide. we like to choose between providers. paypal, mastercard, visa, make them compete to offer the best rates or quality of service. apple and google are completely denying that. emily: so you use the word monopoly? tim: well, it is a duopoly. there are two companies. together, they own 100% of the smartphone market. or something like 99.9%. apple has the majority of revenue in many countries. in other countries, google has the majority of revenue.

that are called swipe fees every time someone swipes their card whatever that transaction is these mastercard these giant payment processors are taking 2 to 2.5 percent of whatever was purchased so that's a negative for those folks and there's also negatives for instance for people who are employees so say that you work at a at a hotel which right now is not getting much business anyways but if you do when you're a valet you're going to rely heavily on cash tip. well now people who are in a cashless society are to carry cash around with them so it's much harder for them to actually give tips to people who are reliant on that and lastly of course you have people who just don't necessarily have access to these banking systems yeah so they're at a loss as well on that note i mean going cashless outside of let's say bitcoin not only does that remove any true privacy we have for our personal transactions but it also disenfranchises a lot of poor people homeless people who don't have access to banking or electronic services right that's right i mean you have to remember that worldwide there's a ver

>> mastercard. >>> that does it for us. kelley, it's all yours. >>> plus an exercise in futili futility that's what las vegas sands' president says about running a big resort on the strip right now, but they're paying their workers through october. we'll speak with president rob goldstein about all of that. >>> the home trade is outperforming even with all the excitement priced in we have some huge movers from the sector today we do begin with the broader sell-off the sell-off, yes. >>> look at this it was in the red today, now a handy quarter percent gain for the nasdaq the s&p was down 54 points even -- so a bit of a mixed trade. kelly mentioned it, these four stocks the most important day for earnings season so far this quarter. all of these guys up on the trade so far today, a massive day for earnings records >>> the stock market isn't the only -- the yield on the ten-year is hitting a low, that means we're about to hit a record low rick has more on all of these big moves. >> yes, every part of the curve has gone hot lo

visa and mastercard banks don't collect those fees.he pain of this is going to get handed out differently. let's take one step further. what could fall in the place of the banks that is a benefit that isn't being talked about heavily outside of some stocks, the mortgage banking side. housing is scarce. housing is booming. context,a historical that could be a big driver in bank earnings. that may not be in the cities we see now. california is tough to develop. certain cities just have cheap dirt. these banks are going to look different. wells is going to shut locations. mortgage banking could be bigger. if you are a credit card company, the personal savings rates of american households now argue that you are not going to have that much trouble. 2008-2009, it was terrible savings rates. only time got us out of that problem. this is nowhere near the gravity of what we dealt with then. caroline: thanks so much for joining us. inhave some breaking news terms of earnings. coming out with its second-quarter adjusted loss per share, off two ce

>> mastercard. >>> that does it for us. kelley, it's all yours. >>> plus an exercise in futili futility that's what las vegas sands' president says about running a big resort on the strip right now, but they're paying their workers through october. we'll speak with president rob goldstein about all of that. >>> the home trade is

told that wework is on track for profits and positive cash flow in 2021 they have agreements with mastercardnd citigroup i they fell to $3 billion in march. it's not a full release from them but certainly the tone of it was positive, what we learned from the interview in the "financial times." you can see how,s during the pressure trend, if people were downsizing and getting rid of that full building, the sector of shared spaces could benefit >> yeah. look, on the one hand, this is a company that had very long leases they had taken at the peak of the market at very expensive rates, and they had a lot of their customers, their own clients, they presumably weren't paying it was a sign of just how much this is a much smaller company what is the growth plan? and that's beyond the occasional office that may be sort of expanding because they need more space. i just don't know what that proposition is right now >> they've certainly cut costs in the mean timt other crazy situation we have sheer skp chair man and reminded me there was that level of overlap in terms of the management. adam newman is t

i don't know if you're also wearing lululemon, but yours include mastercard and others, right? >> focus on companies that have very little competition, very visible earning streams, and take lam because there's the arms merchant to the semiconductor. take home depot. there's really no alternative in the home space and diy microsoft is earning the war on cash, and understand that war has been going on for a long time, along with visa. these guys have a lot of running room, and that's going back to my point that you really want to have those visible companies that have much bigger earnings expansion and advancement coming >> we appreciate you both, thank you. >>> speaking of apple, josh lip ton sheer with news for us josh, what's happening >> that's right, kelly on monday, remember, apple ceo tim cook along with other big techies from amazon, google, facebook as part of this anti-investigation you expect from cook, apple could have many questions about his app store, for example. does that store limit choice and competition? in a new study, a commission from the analysis group de

of the innovation you haven't talked about stocks on your airways this morning paypal or visa or mastercardajor, major themes with respect to the mobile society and not wanting to pay cash anymore. i think those are major, major themes and think about how microsoft has mass i havely restructured themselves in the last 20 years. it's going to continue to spur growth in that area. >> well t famed man is now, the m being microsoft. they're a long way from the music player pleasure to get you on buddy great discussion have a great day thank you very much. it's over. hard to believe. worldwide exchange by the way, i'm in on the noon show this week so tune into the halftime report or don't dow futures up 170 squawk box is next have a great day a unique tri-layer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. only from nature's bounty. save without even leaving your house. just keep your phone and switch to xfinity mobile. you can get it by ordering a free sim card online. once you activate, you only have to pay for the data

longer allowed to buy back stock, they can't close the gap and that sore thumb tells the story, mastercard. this is the ultimate non-bank financial which soared on a conviction from goldman sachs. foll to round things out, walmart and costco lit the sky up. look out, another lockdown might becoming because these are two chains regarded as essential service stores, and they thrived in march and april and then went down when we felt that the lockup was ending. or lockdown was beginning -- well no lockdown was great for these guys and then the unlock was great for everybody else walmart and costco working for the clamp downme that's terrible for our economy but not a big deal for other countries. that explains some of the winners. union pacific, caterpillar these benefit from a strong global economy, not domestic but global union pacific connects ports on the west coast with the rest of the company. caterpillar is a big china business, big oil and gas and works with crude above 40. free port is a compromiser the chinese consume half of the world's copper now remember when i said there is not

technology stock that doesn't get much -- doesn't get much attention and is operating in a duopoly with mastercardsipate the fact we are in an economic recession, i think the long-term picture for visa continuing to be a toll in just about everything we do regarding our spending whether it's with apple pay, online, or swiping the card in the grocery store is something that deserves attention. i mean, it's a stock that's been a little more challenged over the last couple of months relative to faang. but we like the longer term prospects. we also initiated a position for clients in wisdom tree's cloud technology etf there's a whole host of smaller and mid-cap companies in cybersecurity, you know, work from home, cloud, and some of the areas we think are durable names in technology. to look to to get a bit of diversification as well. >> now, jason, i cover the hedge fund world and one of the big concerns among hedge funds and people who watch that space right now is the tech trade is too overcrowded right now. that people have piled into faang. it's been working for awhile and people are kind of wait

it's at 70% for amazon one of the numbers in here that's pretty shocking, this is according to mastercard say consumer spending at amazon, kate, has been at 60% up year on year that's the kind of number a new company with, like, five people should have, not amazon. it's amazing >> i agree, kelly, and we are getting amazon packages at my apartment. like i said last week, it feels like almost every other day at this point i'm curious to see how much continues to change post-pandemic. we're leaning so much on amazon and e-commerce right now it feels like the safe thing to do you're not necessarily going out in stores and seeing other people in person once you get into the habit of just relying on this company more and more, i think this is likely here to stay. i mean, i'm willing to wait a little longer to get something else in just because of the convenience factor >> maybe we'll have pent-up demand for wandering on main street again, if there's a main street left. >>> let's talk about coffee wars starbuck's is getting a nice boost on the street, kate, analysts saying they're more suburbs f

credit risk why take a chance when you can bet on financial technology play i've been thinking about mastercard and visa and paypal that's why gold man gave up gains. it's the same action yesterday when j.p. morgan reported a fantastic quarter and took the big loan loss provision so they didn't get much credit and that's why citi and wells got hammered, too. they have the same credit risk problem. wells fargo is problematic stocks went up today, probably over sold. citi group is in good shape. they have a terrific business called treasury and trade solutions, tts that helps clients sustain operations, manage supply chains and of tim mince capital. it's so large and lucrative it could be worth many billions of dollars. i'm sure someone would compare it to the 200 hundred billion-dollar paypal and citi is $108 billion company. it would be worth more if they were liquidated. that's right, they closed the doors they would be worth more given goldman sachs may not report another quarter this good for ages, i don't know what could get people to buy the stock other than a covid-19 none issue. i love t

mastercard is done very well. square, paypal have done very well for the pandemic. that will continue. that trend will continue. even though these companies are expensive. you can take a position now, leg into it as things go along. charles: i got to agree, a lot of those names you mentioned i have had my subscribes in and out of them thinking we hit a top. i tried not to pay more than i did. you play the waiting game for a pullback and sometimes it never does. shah, in addition to the names, dani mentioned, we have amd. wyndham hotels, starbucks, any of these names intrigue you in buy and hold in earnings season? >> i don't know any of those names, charles. there is lot of stuff that intrigues my. i am looking at cyclicals. a lot of industrials are looking good. commodities, etf. i like the commodity sector starting to percolate here. i am just not talking about gold and silver. i like the ag side of commodities too. we're looking for stocks, looking for companies, looking for narratives that speak to where we are now in terms of the pandemic, in terms of coming ou

goldman sachs told their investors to by fintech, that process payment the like visa, mastercard andiserv. maybe we should look away from traditional banks, shah? >> i don't think so. i think banks are looking very good down here. jpmorgan chase numbers were very impressive today given the environment. wells fargo got hammered for the right reasons. if you look at jpmorgan chase with their fortress balance sheet, they provisioned an additional 8 1/2 billion dollars. i think their capital, their loan loss provisions for credit losses now amount to $10.47 billion. they have a lot of cushion in there. i think the stock has done very well. there is a lot of upside potential for jpmorgan. i also like wells fargo on a contrarian basis. i think the banks are starting to look very cheap down here. charles: i hope so, my friend. alicia you know you say the next 12 months could be seeing more consolidation choppy with upside bias. wish we had more time. both fantastic stuff as we make our way to what is becoming a more volatile market. >>> meanwhile joe biden revealing the second part of his e

her holiday was booked using her mastercard. what are her options and rights?aying why take out travel insurance customer you can predict what will happen in the future. unfortunately, iguess can predict what will happen in the future. unfortunately, i guess you didn't take out travel insurance in time. while it's really important to pay with a credit card or if you don't have a credit card, a debit card, to give you extra protection, that protection only comes in if you have a dispute with the company that you are dealing with. there is no legal dispute here because if they have a holiday is going ahead but you are just choosing not to travel, thatis you are just choosing not to travel, that is called disinclination to travel. if you had travel insurance, you could get a note from your doctor to say you are shielding and your travel insurance would then cover it but because you don't have travel insurance, it is nowjust disinclination to travel. so your only real option at this stage is to try to convince the travel agent to let you move the trip to a future d

something we haven't talked about are the payment processors, visa and mastercard.re economy. they get a share of every transaction that occurs. they are a little beaten down right now because people feel consumer spending is a little off but nobody has found a way to do business without them. even when apple and goldman sachs got together, they couldn't issue a credit card without mastercard's help. i believe they are going to do very well with good times and bad. they don't have credit losses. the banks bear that. the issuers on the cards. i think these companies are very strong. when you shop on e-commerce which is growing the most rapidly, you need to use a credit card. you can't use cash when you are on amazon. stuart: exactly. good point, gerald storch. good point. put your long distance glasses on for me, will you, and tell me what the whole retail picture looks like one year from now. >> we are consolidating ten years of retail evolution into a year or two. you are seeing massive bankruptcies of mall-based apparel retailers and department stores. that's only

they're not going to -- they just don't have the role in this, it would appear, to compete with visa, mastercard, paypal, square, you name it. they just don't want to do that. they want to make money by, you know, lending money and borrowing money. that business is going away. it's gone away in europe and gone away in japan if we're not going to remake themselves, then they need to cut expenses and consolidate that's the only way you'll hold on to the values and have a chance of making money in is space. >> we've had a lot of fed speak today and steve liesman has the latest highlights for us. >>well, thanks fed officials reeing risks to the u.s. economy remain to the downside they're signaling low rates ahead. there are differences on the outlook. fed saying a, quote, "thick fog of uncertainty surrounds the u.s. and the economy." she worries a second wave of the virus could reignite financial market volatility. saying in a speech that the u.s. would likely -- the fed would like the policy but stabilization to accommodation those new policies could include stronger forward guidance, quantitative

allowed to do everything we want in their country they can come and do what we can when they say mastercard and visa, the world is your oyster, then i'm fine with it but they don't, they don't play fair. these companies as we know tend to in the end be controlled by the chinese communist party which the last time i looked is not the pajama party. >> which plays in, carl, to exactly why the u.s. government is so focused on tiktok. we will see where that ends up come back around to where you started us. >> savior for facebook we are not the biggest i thought that mark did a good job. these people -- >> in his testimony. >> it's tim, it's -- only -- is there any one of these guys -- yeah, google no wonder google is not even up. know don't have a share. ruth. >> you mentioned -- you talked about expenses over at cat and google, jim, i mean, in any other ordinary quarter we probably would have zeroed in more on expenses up 7 instead of 12 last quarter or capx down 12. disciplined in terms of spending at google has been a ster for the ages. >> yes they still, i think-- they don't -- they can't co

comes the bubble stocks are going to get hurt instead, focus on real leaders in software, payments, mastercardcrosoft, for example. >> finally, ingrid, we're going to get fed balance sheet today it's down four weeks in a row. and there's this running theory that the commentary this week has been on the dollar side. many believe they're that foaming the runway for additional support once they see what happens when the programs run out at month end does that make sense to you? >> i think the fed, the central banks, the government will do everything they can to throw money at the problem to get us through this challenge it creates lots of opportunities for businesses that have good secular growth and strong balancesheets, and we're optimistic that we can find companies. one thing that is going to be front and center is our sustainability issues. electrify kags, fuel efficiencies these are all good as tom was mentioning, finding secular growth it doesn't just reside in technology it's across sectors. we have a ton of companies in our portfolio going after that opportunity. texas instruments and ev