nvidia has plenty of cash on hand. they have that capacity as well be used,le stock to but let's not forget arm is an supplier of semiconductors. i have talked to our tech analysts. i am not sure why they would. it have really good ip? yes, it does. but their business model is very different from nvidia. if i am apple, and i am buying if i am apple and i am buying from arm but i am competing against nvidia, how does that work? so could it happen, sure.

is nvidia's speciality.s concerned nvidia would have control over key intellectual property that its competitors have to use. that is something that will require a huge amount of regulatory heavy thinking. even from that antitrust perspective, but with the u.s. even allow something like this on a coat merger cross specific way? nvidia is an american company. japaneseobviously a one. it depends what state in nvidia they end up getting. i think they would not end up with control of nvidia. it is a $270 billion stock arm valued around $40 billion. more than 32 billion they got four years ago. nowhere near the scale nvidia has managed to gain in that time. concerns about control i do not think will be there, but the market concentration is a bigger worry. guy: is there a better solution. if softbank wants to offload arm and crystallize the gains, is there a better way of doing it? alex: the thing i flagged in the column is something called cadence. they are similar to arm in the sense they designed unit componen

mark, one of the stocks you do own, family, is nvidia -- apparently, is nvidia. nvidia is looking to buy arms from softbank -- is that a good idea? mark: let me start rising i am not sure how it could be done. nvidia has plenty of cash on hand. they have that capacity as well be used,le stock to but let's not forget arm is an supplier of semiconductors. i have talked to our tech analysts. i am not sure why they would. it have really good ip? yes, it does. but their business model is very different from nvidia. if i am apple, and i am buying if i am apple and i am buying from arm but i am competing against nvidia, how does that work? so could it happen, sure. stranger things have happened. but we cannot see the really good business decision behind something like that. it mayway, i also think have antitrust issues as well, because i think samsung, qualcomm would all say that does not make much sense. alix: i think it also brings into the spotlight semis and other parts of tech that are not apple, facebook, google, and amazon -- there was a great piece in bloomberg

softbank semiconductor unit arm is said to be attracting takeover interest from the graphics chipmaker nvidia. they want to sell part or all of -- $32ke in arm which is billion in 2016. it made an approach in recent weeks. the sale of u.k. based arm could become the biggest ever deal in the semiconductor industry. up next, global coronavirus infections past the 15 million mark amid record spikes across the asia pacific and brazil. this is bloomberg. ♪ hike!

id softbank own nvidia why would they want to get back in? alex: softbank does not own all of arm, it is the vision fund which owns 25% of that stake. all of it is controlled by softbank entities. softbank faces pressure from investors, not the least of which is elliott. some investments are less than the enterprise value. that is something they are trying to correct. arm is something they acquired four years ago with the intention of holding onto it for a decade or more. on its books it is still valued at the $32 billion it paid. carrying out a transaction like this, particularly with stock as well as cash brings better visibility into the value of the investment and will help rerate the shares. if i am amd, if i am

we can look at intel and nvidia. the reason it's surpassing is because it's a better company.he edge the data center. he said let me tell you what i've got planned five years from now. when i talk to nvidia, it's like talking to hanna barbarra, it's like the jettisons. >> you've been saying that for years. >> i have. >> you don't name your dog after a company unless you're a believer. >> a lot of your critics on twitter will come after you for various things but on nvidia, you have been dead right for a long period of time. >> thank you. >> you're welcome, jim. >> just made my day. i'm glad i'm back. >> from 35, 40 feet away. >> that's all true zbl. >> i was going to say, jim, of the winners you stuck with, i'm thinking starbucks, costco, facebook, nvidia. >> don't forget shopify! >> i have losers, too. this is not one of those moments where i would not look as good, frankly, if it weren't for the pandemic these companies are pandemic stocks before this were great growth stocks now, with the exception of tesla, they're pandemic themed look at facebook that's where the ads are

the expectations are so high i think it's very bad set up into the print nvidia, paypal and zoom a 86% from the march lows. even into this pull back it's not really that compelling, at least to me. you know i've been in that seller selling of facebook and trimming of amazon. i'd be happy to buy them back. they're not down enough and are still very, very crowded what's important and exacerbating the rotation is this rotation that we're seeing on the macro inflation expectations are starting to inch up a bit. the dollar is weakening. that usually is good for cyclicals and value and risk on assets i thought it was interesting that the iwm was green it was green for most of the day and out performed relative to any other benchmark. we could struggle a bit. let's get through earnings sometimes you get chances. i think we want to wait until after earnings >> the pressure going into the pri print. thursday, alphabet and amazon and apple. how much is riding on those reports given the moves up in the stocks and now a struggle in some of those names. >> the q is at 255 still like 35 points above

it underscored how much more in demand nvidia chips have been. their graphic chips used in data centers and cloud-based services. and tech companies that are benefiting in that it has elevated demand for this technology. it is more reliant on pc. it is trying to introduce similar graphics but nvidia is not weathering that challenge. nvidia is now the third largest chipmaker, and is the largest in the u.s. taylor. taylor: fundamentals and big market caps, thank you. to stick with some of the market moves, and we will do ax. i'mh global curious of your thoughts. outperform,inue to given we are transitioning from a work from home to a back to work scenario? >> i think that is the key point. the work from home economy is kind of coming to an end. we are getting to this economy where it will be much more of a work solution. people will be asked to come havethe offices and we seen some office is and close again. but the computing technologies power to work from home will continue to be relied upon by countries to enable the whereoving environment peopl

i think it's getting pushed off to the way side by nvidia to be honest >> quick thought on apple.ment ago that apple may be the subject of an investigation, i believe, in texas of undetermined as yet scope. why is apple selling off today >> so obviously those headlines in the house panel that you have been covering in a great fashion, so all of large cap tech is under pressure i sold my apple and my microsoft last week not for this reason. i sold it because of that rotation out of growth and into value. i'm long tse wrk, and oln those are my value plays don't forget the one i hit out of the park in virgin galactic with you, my friend, on air a couple weeks ago >> it's up 60% in two weeks. 65% as of 11:00 a.m. today nice call, my friend we have to leave it there. steve grasso, thanks >> thanks for watching "power lunch," everybody. "closing bell" starts now. >> it does welcome to "closing bell." what started out as a quiet session turned into a full blown selloff. dow, s&p 500 down more than 1% nasdaq is down over 2% let's have a look at what is driving this selling action. unexpec

i bring this up because nvidia is now the biggest you have -- is now the biggest u.s. chipmaker.has soared past intel. there is no specific catalyst today but we know there has been growing demand for intel's graphics chips in data center and ai, whereas intel has been more reliant on pc as its main source of business. now with nvidia's recent advanced, it is the third biggest chipmaker and the world after tsmc of taiwan and samsung of korea. david: i did not know that about nvidia. that is fascinating. scarlet fu reporting on the market. coming up, we will talk to rufus yerxa about the usmca, trade with china, and a need for a new head of the wto, somewhere roof is used to work. can they get it done by august? that is coming up on "balance of power" on bloomberg television and radio. ♪ david: this is "balance of power" on bloomberg television and radio. i'm david westin. the president of mexico is arriving at the white house today is the usmca goes into effect. we welcome now rufus yerxa, president of the national foreign trade council. he served as the deputy director general o

. >> all right rather bullish call here from our investment economy >>> nvidia shares surging 150% in a year and one firm thinks the run is not done yet. raising the price target to a new street high. we'll debate it next >>> you can always watch or listen to us live on the go on bcppcn a halftime is back after this. the world health organization says it's open to emerging evidence about the airborne spread of the coronavirus. this after more than 200 scientists urge the global body to update its guidance on how the coronavirus is actually spread >>> new york has added three more states to its quarantine list raising the total to 19 travelers from delaware, kansas and oklahoma will now be required to self-isolate for 14 days when visiting new york. you are up to date that's the news update this hour dom, back to you >>> thank you very much for that several calls on wall street today to get through let's start with nvidia raised to a street high of $460 for target price that stock hitting a new record high as well stephanie, i turn to you you own it are you going to keep on owning it >

nvidia is the most expense sieve semiconductor stock out there and what is going on?ut down, it was up 67%. can't wait to ask gary kaltbaum, what is the message there. we'll be right back. charles: the markets certainly faring better today at this point than yesterday. the nasdaq hitting another record led by technology. the broad market, missing all week, even yesterday after the fed's second in command says they could do a lot more and will, and they also added there's no limit to how many bonds they could buy. the markets still faded into the close so could it be at this point, the fed will actually have to do more and say less to get this market into high gear? let's bring in gary kaltbaum, kaltbaum capital management president, fox business contributor. gary, i love talking to you about the fed but i do think it was interesting when clarida yesterday made those comments. normally that would have sent the market higher. i feel like ever since that last fomc meeting, wall street wants to see the fed take action, not talk about it anymore, although i'm not sure what

led the flip flop nasdaq ending lower after crossing up for the first time amazon, facebook, adobe, nvidia, et cetera. most are higher right now pre-markets. that reversal likely caused by news by california late in the day that it will roll back part of reopening imposing restrictions on restaurants, movie theaters and bars and students in los angeles and san diego county school districts are unlikely to return to physical classrooms to begin the year this is a big blow to working parents and america's single largest economy. all eyes are on california around the world, europe following our lead lower in early trade but things have stabilized a bit karen tso standing by with some of your top stories. >> good morning. we have lifted off some of the lows on the session. still a lot of red on the boards a lot of bounces with he saw yesterday from the back of the session. particularly on the french and german session the uk stock market down half a percent. news out today for the gdp numbers and a bounce of 1.8% in that month after a slump of 25%. it is like ease of lockdowns and projections

nvidia in the selloff again today.lipton with the details josh >> so sarah, investors keep piling into nvidia the this year that stock has already soared more than 70% and remember that is coming off a blockbuster run in 2019. it soared 80%. i checked in with tech analyst and he says nvidia is benefiting here from two big broad trends one, the chips are used in data center investors are betting as more people work, learn, and play at home, that can result in greater demand for the cloud services that rely on its technology. two, the chips are used to improve video game performance in pcs and note books. that's a big deal. more people are now looking for in home entertainment due to the pandemic nvidia actually surpassed intel in market cap. patrick morehead says down the count intel out. he says intel has certainly bounced back plenty of times throughout the long history. guys, back to you. >> hot stock josh, thank you very much. stephanie, i know you're bullish. as a bull, you have to be relieved to see the action in

he says nvidia, nxp, and broadcom he says the took is cheap.here are risks that chip investors need to think about, too, though. rbc points out two for us. how will economic turbulence impact demands like smart phones and pcs and increasing tension with china is another question mark china is still a link they're going to take share from intel and he lies applied materials, too julia, back to you >> thanks, josh. a quick programming note as we go to break. this thursday cnbc in partnership with acorn is hosting a virtual live town hall session bringing together americans affected by the current crisis financial experts will answer their questions to help them reset and rebuild their financial futures. that is this thursday at 7:00 'lbeasrn wel right back, stay with us ereeligible for medicare. gimme one minute... and i'll tell you some important things to know about medicare. first, it doesn't pay for everything. say this pizza is your part b medical expenses. this much - about 80% - medicare will pay for. what's left is on you. that's where an

. >> what do you think, nvidia going to buy arn >> i don't know. i did make some calls on that. you do have bankers actively involved sof tank i thitbank is the inter of the story i don't know if we have it, but take a look at what's happened to that stock. so much for massa's son not being in a good position anymore. the vision fund is still troubled but they have been selling assets, we know $22 billion worth roughly almost of t-mobile and arn is another company that owe pension talley they are looking to monetize, jim. i don't know arm, a lot of its revenue is from selling ip to what would be competitors of nvidia. i'm not quite sure how that would work wherein individual i can't to actually own arm, whether they could step up and pay the price that massa and softbank and rajiv would want for the asset given they paid $32 billion for it let's wait and see over the next few weeks this will likely play out, but it was an interesting report you're referencing from bloomberg saying nvidia is the one most focused on buying arm potentially in the near term. >> and it's hurting nvid

why is arm so attractive that nvidia and others are looking at buying it? >> absolutely.ry valuable company. it is worth as much as $44 billion in a potential ipo, analysts have said, almost 40% more than what softbank paid for it in 2016. this company dominates the market for chips used in gaming and they are getting into new markets such as artificial intelligence and dock driving -- self driving cars. the key product this company also has is they line since -- -- license designs and they are the brains of a lot of the wells smartphones pay or your iphone included in that, shery. why is softbank selling the business? is it kind of the broader story of how badly they have suffered with the likes of weowrk late -- wework lately? nabila: softbank is under so much pressure from elliott, the most feared activist investor in the world. they need a bit of a win after that tobacco with -- tobacco with wework last year. masayoshi son really needs the win here. he has been in cell mode -- sell mode because of that. shery: what are some of the hurdles that the deal could face? nab

nvidia is in talks to buy arms from soft bank for more than $32000000000.00 if the deal goes through it would be one of the largest ever in the computer chip business the british chip designer arm power of nearly every major mobile posts are from companies like apple samsung and huawei champagne sales have lost their faith is producers say the coronavirus has cost them $2000000000.00 in sales this year restrictions across the world so the consolation of celebrations weddings and dining out all of bipolar to sales of the luxury behind. the european commission has allowed france's alstom to buy the train making division of the canadian company bombard jape the 6000000000 euro acquisition will make our system the world's 2nd largest train money 5 sure but the approval came with conditions attached. to t.g.v. cemented france's police as a pioneer of high speed rail travel. but since g.e.c. ulsterman failed the 1st t.g.v. almost 40 years ago other countries have aged ahead. trying to see or are seeing leads the rings with a turnover of nearly $21000000000.00. the relative newcomer is acti

it's said to attract nvidia interest we reached out to both companies.are declines comment at this time. it's a cpu franchise, the primary brain, and would get them back into the mobile business but no comment at this time, guys. >> josh, thank you time for today's power movers, starting with spotify. le deal secures the label join's massive catalog for screaming. , macy's and kohl's are tanks after ubs downgraded united airlines knee the lows of the session after reporting a 1.6 billion $loss for the second quarter. going forward it will require all passengers to ware face masks or risk receives, kelly, a flying ban. >> now to the bond market, where rick santelli is tracking the action >> two day of tens all those maturities today, when they're at their lowers interday yeels would be below the yam tike one of the reasons is big stimulus package on the budget. and you can see it's close to 1% as those yields move down. kelly, back to you. >>> meanwhile, retail investors are helping to send trading volumes to new records, all from the comfort of their sof

it is crushing the returns of the broader market amazon, nvidia, netflix all hitting record highs todaye gains we're laying out which tech names are best positioned now and post pandemic. he joins us now. mark, welcome. >> hello. >> what is the main difference twenty name you like now and the names that you think will work post pandemic? >> i like netflix and amazon, so does everybody else. what i looking for are names that fundamentally that have not recovered. those are travel names they haven't so booking.com is one of our three top picks. and then the ride sharing names haven't recovered either they're still showing 75% year over year declines unless they are structurally flawed and we just are not going to uber like we have in the past, i think we will, if that happens, there is a recovery there. there is removal of overhangs. i think can you see a material rerating in uber like we've seen in some of the other stocks like spotify and then the one we also like in terms of the top three picks is facebook. i think people underappreciate how much of a v shape recovery opportunity there

when you get swoons, that's when you buy nvidia and nvidia my dog is 13, yes, he has some sickness. okay i want people to know, umm -- e we go to eric in michigan. >> caller: hey i wanted to ask you wholesale companies. ticker. >> i, you know, herman miller is better of the two. okay herman miller is better. i like -- honestly, that's the way i would go if you want that. steel case they just don't have -- i'm going to use a technical term i learned at goldman sachs. mojo martin in new jersey martin >> caller: hello, mr. cramer. >> hey, martin >> caller: hey first, let me say i've been following you with regularity since the days of -- when you had a partner. >> oh! larry kudlow absolutely >> caller: yeah. i knew him met him a couple of times. one of my clients was trying to hire him. >> okay. >> caller: you've done a wonderful job. >> thank you >> caller: i have one preliminary question before we get -- how come you went to harvard instead of columbia. >> i don't know i turned down columbia i don't know my parents thought it was too wild a place for me. i never went to harvard befor

charles: nvidia certainly taken a whole lot of their shine. like you mixed fundamentals and technicals. jack, david, thank you very much. jack, tell your dog, i say thank you, we always appreciate your input as well. >> the dog was -- charles: folks, while big banks are catering to those large companies and shutting out small businesses and entrepreneurs, later in the hour you will meet the tiny bank that stepped up in a huge way, saving perhaps 600,000 jobs in the process. she calls herself the battle tested maga candidate. colorado primary winner lauren bobar will join us. she will discuss not only her congressional campaign, but whether or not she thinks president trump should now expand his base if he will win in november. we'll be right back. ♪ experience the joy of a bigger world in a highly-connected lexus vehicle at the golden opportunity sales event. lease the 2020 es 350 for $359 a month for 36 months. experience amazing at your lexus dealer. ♪. charles: republican colorado pry larry winner lauren bobert might have been consider adlo

a semiconductor unit is attracting takeover interest from nvidia.s been options to sell part or all of its stake in arm. nvidia is said to have made an approach in recent weeks. couldle of u.k. based arm become the biggest ever deal in the semiconductor industry. the former head of the collapsed german payments platform wire card has been rearrested on claims that he and other executives hid losses as far back as 2015. executors say he and two colleagues conspired to obtain the equivalent of $3.7 billion in fraudulent loans. they allegedly inflated the books to make wire card look more attractive to investors. coming up in the next hour of daybreak asia, the former u.s. ambassador to china weighs in on what beijing is calling an unprecedented escalation in tensions with the united states. he tells us where the diplomatic ties will go from here. south korea is expected to have slipped into recession in the second quarter. we have those growth numbers in just a couple of minutes. we are breaking them down with angela. what's more to come. this is bloo

. >> reporter: hoping to get a laptop computer from the unified school district for his daughter, nvidia. she is about to enter the third grade at fairview elementary school and has a learning disability. >> my concern is that she might not be well-equipped, like the other kids. and i would like her to engage, like the other kids, and be able to do it as a class, as a unit. >> he says he was unable to get a temporary computer for the district from last spring, because his physical disability made it too hard for him to stand in line. but when he received word, thursday, they do have a laptop for his daughter. >> until you actually see when manifested, i will just cross my fingers. >> with oakland's school year starting with distance learning in 11 days, on august 10th, the district announced that 25,000 new laptops on order were delayed because of the pandemic and want be programmed and ready for students until september. >> oakland is one of the earliest starting districts for a district our size, and we are not prepared, so that makes it worse. >> reporter: jeff garcia teaches fourth g

t nvidia hitting record high today. that price target about 15% above where it closed today.o, you've been in this. where are you now? >> i'm not in it now but it deserves the premium it will continue to get the premium. it's up 69% year to date came out with another gpu chip that all the majors, microsoft, amazon, alibaba, they're all using it for them, you have gaming as you mentioned, but you also have ai, you also have drifrle lesdriver and the connected home you'll continue to get that multiple and premium advantage with nvidia. i started looking at it again today. >> tim >> this is my theme for the show, but what is that multiple? 65 times forward, it's really tough. it puts a huge burden on gamingware i agree with the fundamental prospects steve laid out i think it puts a major burden when you look at the cycle for gaming, it certainly puts them in a pretty good zone. the five-year outlook is as good as it's looked for the entire sector for a long time i don't want to chase nvidia here this valuation is tough to support. >>> coming up, cold investments, hot profits. th

also, we are bullish on micron micron hasn't moved as much as nvidia because many think there is somelicality in the stock. we also like microchip, which is a play off of broad-based recovery in the sector >> so if your life depended on it, could you design a micro circuit? >> no. i just analyze the companies i don't deal with them. >> we would be in the stone age if it was dependent on -- and i remember some ee, some electrical engineering who understands that that's why people don't want to do that. it's hard, hard work. >> difficult profession. >> a lot of math >> complex math. thank you. >> thanks, raj andrew, can you imagine? we don't want to be building bridges, ither we don't want to be mechanical engineers, civil engineers no type of engineers except a train engineer. >> you don't want me doing anything in this space probably don't want me doing anything at all, but when we come back, a lot more on "squawk. stories from two corners of the economy being rattled by the coronavirus. we're going to tell you about them first, why recent moves from the trump administration are causi

also been a blockbuster day for alibaba, nvidia, tesla.ll-time high at 244. netflix closing in on 500 bucks. alibaba just turning slightly negative. it's been on a strong roll. tesla at the bottom, up another 16 bucks at $1386. let's bring in susan. there's no other word for it. it's on a tear. susan: vertical. i call it vertical. that's pretty much if you look at the stock chart how it's gone this year, tripling so far in 2020. morgan stanley this morning raising its price target, slapping a $2,070 prediction for the stock as its bold case. they say tesla is ready to impress everybody with the second quarter profit and then some, according to them. barclays says even though they think tesla is overvalued this morning, there's nothing from keeping the stock moving higher from here, believe it or not. now, the numbers really back up the bullishness. for instance, we saw deliveries in the second quarter better than forecast, 91,000. those are three months, by the way, when fremont, its only u.s. car production facility, was closed for half t

qualcomm, nvidia, even huawei.ot to allow leakage of ip between clients. that has been a very important thing because tsmc has access to the secret sauce of so many customers. they have spent so much time, money, and energy focused on that one thing, how to make the chip, not how to design it. that is how they are where they are today, not being cingulate focused on one thing. -- singularly focused on one thing. >> thank you for your thoughts. coming up, beijing language and culture university -- the head of international and regional studies joins us. strategist gives his insights into the debut today. our markets coverage continues as we look ahead to the start of trading. hong kong, shanghai, and shenzhen. standby for "bloomberg markets: china open. this is bloomberg. ♪ it is 9:00 a.m. in beijing and shanghai. i am tom mackenzie. david: i am david ingles. we are counting down to the start of trade. top stories this monday, geopolitics in the spotlight as u.s.-china tensions continue to simmer amid constant closu

how we think innovation deserves a strategic allocation in portfolios >> you look at companies like nvidia and tesla, everybody knows those. you've got companies like invite and teledyne who are they and what do you like about them? >> yes a lot of them are centered around the gemomic space and centered around the coronavirus right now. dna sequences is helping us. envite is one in the diagnostic space that cat pulses into the liquid biopsy space in the detection of cancer. square is one we own for the cash app up ending banks taking the digital wallet experience and moving away from traditional banking and towards your mobil phone for banking needs. >> any planned changes how do you restructure and try to capture some of these companies trying to get attention. >> absolutely. we cut across sectors. we are always looking for opportunities. we are very active traders we have a very long time horizon. in the higher volatility markets. there are opportunities where companies may miss earnings for a penny or two for short-term returns. they are investing in r&d to take advantage of opportuniti

argued that it is not a zero-sum game in terms of data center revenue growth, that you can have the nvidia intel coexist and expand sales. point, a great year on year revenue segment for the cloud, 47%. overall, the platform was up 36%. so data center was up much stronger than what people at anticipated. number two, pc is doing not too badly either. pc volumes are up 2%. desktops were up 3%. so, this is a good report. this is a better than expected report. that,he bears would argue look, i told you that these guys can't execute and here is evidence of further delay. unfortunately, there is where it in that argument. caroline: right to have you with us. a quick note on some other breaking numbers. sales, second-quarter net , $732 million, big beat for the second quarter in terms of a revenue number. we were just talking about tech. i have just been speaking with two key is this leaders in the technology space. arianna huffington, cofounder of the news organization that bears her name. we had a lengthy discussion about change and social justice, and a time forgiving. take a listen. than i ha

perhaps, guys, what might matter most is that it has fallen blow nvidia they have been neck and neck going back and forth and that is probably the one that hurts. >> that is interesting i would say in a way less interesting than amd which is really head to head against intel right now in the argument about what happens with consumer pcs. potentially what happens in professional pcs in the data center as much as intel is down amd now up close to 12% this morning on the prospect that it has running room to make it's case this morning it is a challenging argument >> yes intel's loss could be amd's gain in this case we have a big show ahead of us let's get to our next guest, a high profile engineer. he resigned from his vice president role in may because of a vain of toxicimity now he is calling for a break up, thank you for being with us, tim. >> delighted to be here, good morning. >> now we certainly heard the case from outsiders, lawmakers, and particular you're saying aws should be spun off what does amazon look like without aws. >> i also think we should break up google, microsoft,

it has been the year of nvidia. to these areas we talk a lot about, whether it is the rise of server operations around the world or gaming, just some of the hotspots. amd had a halo effect to the upside on the intel news. intel receiving several downgrades. pandemic withthe further wall street consequences. bridgewater is planning more job cuts because of the pandemic. new technology changing how people work at home. fall into $138 billion at the end of april. bridgewater did call it the worst possible moment for the coronavirus to strike. worstcertainly the possible moment for its employees. the ceo of exxon capital management spoke to erik schatzker today about making money in the current market environment. have a listen. >> the reason still holds. company that is going to have advertising exposure will hurt if the economy does not do well. the question is how much? aboutinvestor who cares spreadsheets rather than soundbites, it is something we can allocate towards. sure you are doing things -- amazon, is it a gr

that is a contrast to a company like nvidia, which makes chips for gaming and the cloud.nalog chips are fairly cheap to make. as a result, they have some pretty fat profit margins come around 65%. they are cheap to make, and they have a long shelf life as well. they don't need to be updated on an annual basis. fascinating deal and they are two of the largest players already. what is the likelihood for any kind of a bidding more? >> this is one of the biggest deals out there. whoever comes in would have to be a pretty big player themselves. identified possible bidders, texas instruments, microelectronics, infineon on technology of germany, these companies could potentially outbid analog, but they say it not likely. texas instruments coming in is unlikely, but that would run into antitrust concerns. and it is not just u.s. regulators who would be scratching their heads at this. regulators in other countries would need to approve as well, dia'shey did improve nvi purchase earlier, so the thinking is this probably would get the go-ahead. when you look at what maxim relies on,

nvidia actually has surpassed intel. basically neck and neck market cap wise with them fwnz very tough to make a value play inside of tech. it's the area of the market that is sort of most rewards the companies with market share and product momentum so we'll see if intel can find some footing here after this big break today. >> mike, interesting to obviously point out what we've been talking about this tech pullback this week that said, if you look at the shares value versus the shares growth for the week as a whole there is only a .7% share price differential for the week as a whole. you kind of almost all the themes we've been talking about would have thought it would have been bigger. >> it's not really a one for one rotation it's not really anything that looks pretty -- really decisive just yet in terms of a change of character of the market. you're right, wilf what you have seen is value. it stopped going down relentlessly relative to the overall market there is some traction there in things like industrials and mat

paid to buy the value play in big tech sectors and that's been played out by intel and places like nvidia i think right now just placing it on the valuation right now, it shows nobody is really on board for the longer term process. maybe that's the opportunity for the regular ceo. >> you get a report like this one and it changes the world it changes everything you think you know about it. >> that's right, especially for a company where -- i think people thought they had effects on what they might hear, but a six-month delay in a fast-moving competitive market share game like this is something that really did come as and of a shock, and that's why you see this sort of give-up trade >> quick response, deidre? >> that's going to be the delay for chips, but perhaps intel doesn't tell us about future earnings because this is a very intel-specific problem some of the bright spots actually reflected quite well on the tech landscape as a whole, so i wouldn't read too much into this as far as the big earnings we have on deck in the weeks ahead. >> maybe uit's a reminder we shouldn't do way with qu

to break, a check on a few stocks trading at all time highs alphabet, dominos, adobe, tesla, and nvidia to name a few other words it's all about online ads, beer, pizza, electric cars and cleaning a sign of the times if trehe ever was one we're back right after this. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. simon pagenaud takes the lead at the indy 500! coming to the green flag, racing at daytona. they're off... in the kentucky derby. rory mcllroy is a two time champion at east lake. touchdown! only mahomes. the big events are back and xfinity is your home for the return of live sports. >>> welcome back retail continues to keep a very close eye on the pandemic and the surge of certain areas of the united states as they look to reopen and in some cases reshutdown courtney reagan is back with a retail update

kind of get a two way play dr horton, i like it a lot it's one of the best home builders out there nvidia, i like it is trading at 50 times forward. they're in all the right spots thank you. >>> straight ahead, the hunt, not for red october, but for yield. we'll get some dividend plays from our traders, next let's get a check on the s&p sectors as we head to break where the dow is up 300 points a lot of green on the screen every single sector is up but one. not energy energy actually leading the way. have an opec technical committee meeting tomorrow they could reduce production cuts by two million barrels a day. energyut o performing today. we're back right after this. hatt no matter what challenges life throws at you, we're always here to help with fast response and great service and it doesn't stop there we're also here to help look ahead that's why we're helping members catch up by spreading any missed usaa insurance payments over the next twelve months so you can keep more cash in your pockets for when it matters most and that's just one of the many ways we're here to help the militar

in the move in part due to semistocks holding up amid the sell off shares of nvidia hitting a record high. the traders will tell you which meth a sopg right after this when the world gets complicated, a lot goes through your mind. how long will this last? am i prepared for this? are we prepared for this? with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations, with access to tax-smart investment strategies designed to help you keep more of what you've earned so you'll know you're doing what you can for your family and your future. that's the clarity you get with fidelity wealth management. for your family and your future. ♪ ♪ now is the time to support the places you love. spend 10 dollars or more at a participating small business and get 5 dollars back, up to 10 times with american express. enroll now at shopsmall.com. >>> welcome back chip stocks, one of the few bright spots is this a sign of strength a positive for the broader market. what do you make of this recent price action and this broadening trade within techn

amd at a new high, teradyne and nvidia on the up side. great report from best buy no reclosing concerns there. they have very good comments lowe's, o'reilly, home depot doing very good right now. jamf holdings, $26 today look at that up 20% here they do apple managed software we'll talk about how strong the ipo market has been. guys, back to you. >> you've been hitting on that, bob, and it is surprising. we'll see you soon bob pisani with the latest for us >>> now the u.s. ordering china to shut down the houston consulate over accusations of spying and property theft. they vow to retaliate. eunice yoon is live for us hi, eunice >> the u.s. has ordered beijing to close its consulate in houston. the state department has said that the reason is meant to protect american intellectual property and private information, though it didn't give any specifics the chinese foreign ministry, though, has described this as a political provocation and vowed countermeasures for what it described as an unprecedented escalation chinese staff have until frida

blew it away i'm not buying nvidia. that's ridiculous. i'm not buying names like tesla. >> when you hear the top six stocks, need to represent 49% of the index, that's courtesy from jonathan who will join us in a few minutes. does that make you nervous or just how it is the game is being played in those stocks, just play the game don't worry about it >> i'll even one up you a little bit since i know kramer was talk about blackjack in vegas those six companies combined are north of $6 trillion in our market cap and are as the six of them make up more than the next 24 companies in the s&p 500 combined am i nervous no you're seeing the same dominance in the media space which no one is talking about those big companies are performing they have tons of cash on the balance sheet they are thinking about growth you're not seeing insiders selling at the top here. you're seeing them continue to reinvest you're seeing companies flourish in the tech space which is why on the fundamental side you don't want to trim them unless you have to. a lot of ou

nvidia hitting a fresh record high today tyler. >>> thanks, kel.ig issue many parents face right now and over the coming weeks especially working parents is whether schools will open in the fall and if so, under what circumstances. ylan is taking a look at what might happen to the covid class of 19. >> it's clear that classrooms will look pretty different this fall think about socially distant desks and teachers wearing masks and lots of sanitizer everywhere all of that comes with a cost. the average school district with 3700 students is projected to spend $1.8 million on just the public health measures alone multiply that by 17,000 school districts across the country and the price tag could be as high as $30 billion to keep our classrooms safe. that's not the only cost the school systems are facing. they are looking at investing in technology in order to help kids learn online they need extra academic support because some students might have fallen behind and there's the budget cuts that are in jurisdictions now being strapped for cash education o

nvidia joins us from the moscow liberal foundation. it is a pleasure to welcome you back. hope all of you enjoy today's discussion. i'm going to turn you over to ambassador john hersey. >> thank you. we will start right here. i will ask you the first question. what is putting up to with his constitution -- what is putin up to with his constitutional reforms? >> thank you, first of all. it is such a great opportunity to be part of this panel. i have to admit i am almost afraid to be blinded at the moment. withtime, i would agree damon. russia is at a critical juncture. the constitutional changes in the vote last week, they were a watershed. why? rightcause putin gets the .o extend his rule 2036 putin could have done it without any kind of vote. even without constitutional amendments. this is a watershed moment for russia because the changes of the constitution. together with other events this year. 2020. final act in putin's building of his own castle, of his own system. it has been his special project and legacy. i am personally living within this construction. it has new

>> staying long nvidia it just crossed intel's market cap for the first time ever.ate this morning. i'm staying with the name as i have been for a long time. >> pete? what are you going for >> i'm going to give you gld i think we've seen so much option paper in there that tells me it's going higher i think it's going higher. >> jenny >> united rentals. even if reopening slows, construction does not. it has a 10% free cash flow yield. >> margaret? >> qualcomm a great way to gain exposure to the upgrade cycle which will continue regardless of what happens with the economy and the virus. >> thank you all for joining "halftime" today let's get over to kelly evans and "the exchange. >> thank you, will hi, everybody, on this friday here's what's ahead of us. the opening and closing of america. disney is set to open its doors in orlando even though the state is one of the hottest hot spots. >>> plus shares of tesla have now more than tripled this year and there's fresh talk of adding it to the s&p 500. top signs of a top or will it have staying power we'll debate that. >>>

xfinity mobile. >>> keep your eye on chips today and specifically nvidia topping 40 0 up 71% for thepsing the market cap of intel. back in a minute experience the joy of a bigger world in a highly-connected lexus vehicle at the golden opportunity sales event. lease the 2020 es 350 for $359 a month for 36 months. experience amazing at your lexus dealer. >>> it's been a volatile few months for airlines as that industry tries to get back on track during the pandemic. weighing in on the path forward is former spirit airline ceo ben baldanza good to see you, ben a senior executive told "the wall street journal" it feels like march all over again. how do you see it? >> it's good to be with you. thank you. yeah, the economy just keeps changing, doesn't it airline bookings are still on an upward slope in that more people are getting comfortable about flying and airlines are adding more capacity back, but it's clearly slowed over the last week or so as more news of states, you know, seeing more virus events and things like that happening airline demand is so dependent on states opening. i mea

remember too that intel has been battli battling nvidia. >> bonawyn, this is an intel specific problem, it seems we knew that there were some questions about intel's competitiveness. apple moving to its own chip sort of underscored that notion going into this already. with the delay of the seven n o nanometer there are some real questions about the future. >> absolutely. when you think about technology stocks, you're going to point to the gross margins. a lot of these businesses are relatively capital light intel has had several challenges i know that amd was also up. the short story of it is that i'm hesitant to put too much krcredence into what's going onn the short-term the apple news is not positive but that might expand their pricing power and revert some of the margin impression that we've seen theearnings just came out. i'd really like to dive in a bit more before i can give you an answer there upon first glance, i tend to think this might be more of a short-term shock than a long-term trend. >> here's what i say it's clearly, i don't think you can extrapolate what's going on wi

your salesforce, all your software companies are doing well and your semiconductor companies like nvidia elsewhere, if you look at the banks, they just keep sinking day after day. you got all sorts of problems like loan growth and loan delinquencies out there. just a few trading days we're dealing with, 78% decline. industrials, there's a bit of a split here, because you have the packaging companies like fedex and ups doing well because they're delivering packages for consumers. deliveries are not doing well, you see the airlines not doing well and cyclicals like textron and lockheed you can't have a market with just five stocks and a dozen other semiconductor stocks and software stocks pushing the market up day after day. at some point you've got to get some of those laggards start showing some life. don't have that today, though. back to you. >> don't know when that will be, bob pisani >>> as more states pause or roll back their plans, casinos have not fared very well with stocks down 20% united and american airlines down big, while k.b. holmes and toll brothers are struggling to find

we know these names are leading in these sectors amd has been a monster nvidia and some of these names some of the names have lagged. micron lagged. scott, i think there is more upside than what we have been seeing that's why part of the reason behind it. also saw options that led pe back in the trade. you can still sell opgs against the positions and take in very big premiums relative to normal. i'm going to continue to do that in specific names. >> you bought some calls in gold related items. >> gld has been buying they go way back they have been buying slv and gld. i don't know how many times i came on with you over the last six months and said they are buying gld again they have been right i don't know how far it will go. gld continues to perform slv continue to perform. i did buy paypal i'm looking to get out of some of that. i was in it for a long time. i got out about 30 or $40 ago. discipline tells me i need to take those off very quickly. >> we see so many dift areas in the marketplace when we're scanning for this unusual option activity a lot of the time some of these names i

nvidia economic engine -- the economic engine of the country where the health care system collapsed,h bodies piling up on the streets. the epicenter right now is in the capital where cases have increased in the past week. from the very beginning, the mayor posted a very strict lockdown in the city to prevent the spread of covid-19. but in the past month, they have started to open up the city, mostly because of the economic consequence that this has in the country. in that month, the amount of infections in the country have increased about 70%. we just talked to the mayor. he told us the city's health care system is about to collapse. we were just talking to a doctor in that city who told us people are dying while they are waiting to be accepted inside a hospital. so, certainly, there's lots of fear about what's coming next in the city. the virus is spreading fast. the government is trying to control it. there was lots of pressure to open up the economy because of the economic situation in the country, but opening up has its consequences. dareen: over in brazil, the country is approac

amazon is up, nvidia is up, netflix has turned around. for me, these are the kind of days that give me an opportunity to your point maybe to find out which names are more vulnerable than others and scott, i know that you have not necessarily been as big on tech recently, but this move here, what can we attribute it to or could it be a deal oral of the above? >> it's probably charles i'd add over evaluation to those names. they just got too far too fast. it felt like 1999 on some of these days when tech would just rocket towards the moon and they just come down. i think people profit take and i think investors also reasonably look ahead to a couple big earnings weeks coming up in tech land and figure hey some of the easy money has been made and i agree with them and you're right charles. we still own tech because we got into these names that is much much lower and we still like them but gosh in a market like these my friend you've got to find value and that's where it's best expressed in your portfolio and that's why some of the travel sto