Transcripts For CNBC Closing Bell 20240712

Years. And lots to come on the show. Two big ceo interviews on the back of earnings in a few minutes well speck to the owner of Outback Steakhouse blooking brands and later the ceo of boston beer will join us that stock surging after the truly hard seltzer brand helped boost sales. Looking forward to both of those interviews were down. 6 lets get to the big stories were watching meg tirell has more on the signing. And mike san totoli is joining s meg, let aers start with youen that executive order news. Hi. Drug pricing hasnt been in the conversation as much this year as the drug industry has been racing to develop vaccines and drugs for covid19 but the president reportedly planning to sign an executive order with a few different aspects on drug price this is afternoon. One could be allowing importation of drugs from canada where theyre price moored cheaply. Another could focus on tying prices to basket of prices from other wealthy countries. And a third could focus on providing free insulin or free epi pens to some hospitals now not clear what exactly will be included, there is also some talk of whether there will be a revisiting of rules around rebating for drugs so were going to have to see how this shakes out exactly. But however it does, guys, folks arent really expecting a major impact on drug prices in the near term. Its not always clear that executive orders have real teeth to make changes here this is coming at an interesting time fwheer were in a pandemic and the government is awarding billions of dollars to the Largest Companies to support their work on developing covid19 vaccines and therapeutics you can see here they struck that 2 billion deal with pfizer if the vaccine is successful to acquire 100 million doses. The industry frustrated that drug pricing is once again coming up. Guys to your point about exactly what an executive order could achieve here i mean, if we want to go to the extreme outright price setting for drugs by the government, what would that take its not clear congress would go down that route. Right there is that whole debate over whether medicare should negotiate over drugs and that would require a lot more work throughout the government to accomplish so, you know, executive orders are really often seen as more of a statement than an actual making anything real happen. Meg, i also want to get your thoughts on moderna. Shares are falling a lot of talk about the loss of a patent ruling and whether that will effect the Vaccine Technology and Vaccine Development which were following so closely yeah. Its a really interesting case now moderna has come out with a statement saying that it does not expect any of these patent decisions and especially the one yesterday to impede their ability to get the vaccine to the market it was a company that owns the patents around the delivery of the r a medicines. They licensed the patent to another privately held company which would then make the decision about whether to try to sumo der sumo sue moderna for royalties which could delay the vaccine. Genoven has not commented on whether they plan on doing that but moderna says they dont expect this to impede their progress and, you know, since were on a friday, we still get drip, drip, drip news on the vaccines. The phase three studies are starting, right . What is the next deadline . What can we expect news . Monday. Phase one trials plan to get under way from moderna were expecting news from pfizer which is starting the phase three in the u. S. Next week. So well expect to hear how those start to go. And how quickly they can enroll. That will be a key question to how fast were going to get data on these meg tirrell, thank you. Lets go back to the broader markets. Tech is lagging once again mike santoli tracking the action with 55 minutes left to the trade. Wilf, the big names broke stride a couple weeks ago. Can this Leadership Group pull back from an overheated condition . Doing okay so far. Though it is right back in this range that we were talking about for weeks and weeks and weeks. That looks like a little bit of a maybe a little bit of a stretch to the upside that we peaked above it for a while. This also goes back to a point back in late february where the market really fell apart for the first time but really not falling apart in any broader way. Take a look groups will really tough intel results yesterday. And the reaction by wall street was pretty brutal. But it is not necessarily extending to overall semis it seems like a market share game this is the Philadelphia Semiconductor index. This is the ratio of those two things clearly the outperformance trend by the semis is very clear that is the market of a healthy underlying market. Just quickly, you know, draw basically a range of an uptrend. You see this pull back here in the semis. Its not doing much to change this channel that is showing outperformance here. I want to look at intel. Intel really is value tech, old tech, kind of i wouldnt say post growth, butdefinitely shows you how its been over the last 20 years. This is market cap of intel, cisco and nvidia both intel cisco following a very, very similar path. They were the glamour stocks in 2000 really came crashing down. They fought their way back now you see over here that is cisco and this is intel. 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. Its the area of the market that is sort of most rewards the companies with market share and product momentum so well see if intel can find some footing here after this big break today. Mike, interesting to obviously point out what weve 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 weve been talking about would have thought it would have been bigger. Its not really a one for one rotation its not really anything that looks pretty really decisive just yet in terms of a change of character of the market. Youre 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 materials, financials are up off the lows its not really, you know, a quick change and all of a sudden were handing the baton to have a Different Group of stocks. It is really trying to me tab lies the growth and see if the leaders can take up the slack. I dont think the macrobackdrop right now is really giving a lot of ammunition for those value groups, at least in the near term they also did well on monday, i guess, some of the tech players before they started pulling back again mike, thank you. Off the break, shares of blooming brands, the parent of Outback Steakhouse moving. Theyre down sharply year to date the whole restaurant secretary juror as well down year to date. Well speak with the companys ceo about their results coming up next. Youre watching closing bell on cnbc. Liberty mutual customizes your car insurance, so you only pay for what you need. I wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. 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 you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. 49 minutes left of trade o Outback Steakhouse blooming brands reporting however, they did miss on revenue. They saw the same store restaurant sales plunge by 39 during the quarter despite todays rally, the stock is still down 47 so far this year hit like so many other Restaurant Companies joining us now in a first on cnbc avenue is blooming brands ceo. Nice to see you. You told investors today they had 92 of your stores open at your restaurants open. Yes how would you characterize demand overall including states like florida and texas where i know you have a few hundred locations. Well, our demand is demand is very strong one of the things we tried to do is dining rooms reopened is create a clean and safe environment for our employees and for our customers. And sales over the quarter, you quote the entire quarter, sales continue to improve, the trends. And our outback restaurants, for instance, where were dine in has been open, last week was down 10 so weve made significant improvements and florida and texas, even though its been a pickup in cases, weve seen our sales trends stay the same so thats been very heartening you also said that in many of the places youve seen capacity reductions youre not allowed to open the full restaurant. But that had a minimal effect on sales. How do you explain that . Well, it has had an impact on sales. I mean, especially on the weekends the we do see capacity coming, you know, total, in total. But one thing that has been able to help us is we built a very strong carry out and Delivery Business during this time. I mean our delivery and carry out system, delivery sales peaked three times our goal. We want to keep a large share of that. Were intrigued to know the strength of the consumer at the moment what is the average ticket price of those naem have been coming to use your restaurants . Any insights on that higher, lower than norm signal. Its about the same as normal i think we have seen in our delivery and carryout business, its a little bit less we dont sell alcohol, you know, in delivery format but in our restaurants, the guest check stayed the same. So the consumer is very healthy throughout in fact, what were seeing is consumers picking more indull jenlt higher cut steaks when they order how did you manage not to have to lay anybody off or furlough anybody like we saw across the industry and how long can that last if youre seeing levels like this in terms of sales and below normal demand . Well, first of all, when this happened in march, we had two major priorities, one, serve great food and two, take care of our people we knew if we took care of our people, didnt let anybody go, we didnt furlough anybody, we would have a very engaged and committed workforce. Thats what happened then we knew we wouldnt have to go out and rehire everybody and train new people so when the dining rooms came back open, we could then immediately pivot and serve our great products so now almost all of our people are working back to their normal hours and were in great shape we can continue to do this dastvid, have you experience food inflation the last month or so is that a problem for your bottom line given, of course, struggling top line too . No, we have not our flow threws aoughs are realy terrific the last time we talked there was concern about the supply chain. That did not materialize and were finding that beef costs, seafood costs are coming down and something that we can take advantage of 60 of restaurant closures since march 1st are going to end up being permanent according to a new yelp report. What do you think your industry is going to look like when this is going to be over . I wouldnt wish ill will on any of the chains. Chains that have a good consumer proposition and scale and offer customers great food and Great Service and a terrific environment are going to come out of this stronger there is going to be real estate opportunities. There is going to be consumer and market share opportunities as we go forward so i think youre going to see a more consolidated industry but one that has companies do really well he would do contact tracing, we do the quarantining. We do everything we need to do and take care of our employees we have relatively few of the cases given that we have so many thousands of people. If enough staff needs to go into quarantine that, could hachppen but that is in a very few number of cases got it. David, thank you for joining us. Will stock is up 8 today. Bloomin brands. Off a better quarter weve got just about 43 minutes left of trade. Were seeing red across the screen but things have certainly improved s p 500 is down. 6 . Consumer discretionary the only Group Positive despite the tech selloff, amazon is higher along with the other consumer names like restaurants and retailers. The nasdaq down. 8 . All head ford a down week. Still ahead, we have another big ceo interview coming your way. Boston beer surging to day on the back of earnings and its hard eltzer. That was a big part of that. Outhl talk to the companys ceo abt e strength in that category and a lot more. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. Weve just been finding a way to keep on pushing. 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. Neiman marcus is bidding farewell to the glitzy hudson yards location theyll be closing down the 188,000 square foot store. The closure comes a year after that location opened its doors hard to believe that was just a year ago though also plan to shut the locations in ft. Lauderdale and bellevue washington. This comes after they filed for bankruptcy in may. Has covid19 continues to weigh heavily on the Retail Sector, we have seen other Companies Filing for bankruptcy in the retail space. J. Crew and Brooks Brothers and j. C. Penny the commercial real estate impact of these bankruptcies, this today was a reminder given how strong of an anchor, i mean do you remember how flashy that opening was at hudson yards when Neiman Marcus opened back in 2019 a whole lifetime ago this week the Parent Company of ann taylor, huge the bankruptcy announcement announced theyre closing 1600 stores no surprise the worst performing rooets of the year are names like Simon Property group, down 60 . Sl green, these are they have heavy exposure to retailers which are closing. W one site, hard to fill, again, certainly any time soon and hudson yards, of course, a Massive Development not just the Neiman Marcus part of it i remember going there around christmas time and thinking it felt empty in the runup to christmas for a new flashy Shopping Mall anyway and that was then. As you said, the potential commercial real estate impact we dont know it yet. The kind of bull cases there is a lot of foreign money particularly in private money, sovereign wealth funds and Family Offices waiting for an entry point into this sort of long term asset that can generate them cash and yield on any level of price pullback, 5 , 10 . So well see if that happens and if there is a fall but the fundamentals are not attractive for that part of the business and this is a great snapshot of that yeah. And if you think about it, who are they going to fill that space with if not the retailers and Department Stores that are suffering . Offices . I guess. Although, Office Spaces are also moving the other way so some big holes and prime real estate locations obviously its going to be a huge issue, not to mention the job losses involved with the retail closings i still think its sort of being overlooked by the broader Investment Community and by politicians just what a hit the entire Retail Sector is facing and saying right now yeah. I think its a massive outstanding risk certainly that is yet to be answered. The were down by the way 0. 7 on the s p 500 so weve been hovering around this level for most of the last hour or so you can see we are off the lows of the session which is more than 1 on the day the nasdaq is down 1 at the moment sticking with the consumer, American Express reporting mixed results earlier today. Kate rooney has the details for us kate hey, wilf, American Express was hit hard in the Second Quarter. Profits were down 585 last yea. They still came in above estimates. Spending on cards dropped 34 . The company did post a beat on 29 . Analyst had been expecting a loss some Silver Linings for the analyst call with the ceo this morning spending volumes recovered gradually in may and june rewards programs catering to the work from home climate are working. Customers are still willing to pay that 500 fee for their premium amex cards the ceo saying they have not seen more customer attrition theyre actually seeing more card engagement and n. Categories like streaming and wireless shares are down about 23 this year and looking like about a 1 drop heading into the close. Back to you. Kate, interesting this one. Both the theme of what the company does which obviously we have known throughout this year and with some of those themes you mentioned that came out in the earning this is morning, one could frame it the other way its a surprise its only do 20 to 25 year to date when the other financials are down quite a lot more amexs business mix is not the safe areas for 2020 at all its in much more the cyclical areas, much more the high end spend areas and credit card. Its no the quite the same as the banks credit card divisions. Theyre one of the areas to keep an eye on in terms of fears for the bank so far this year. Yes slightly surprising that fee revenue is holding up in the face of this customers are still willing to pay that 500 fee, 400 fee in the case of chase and the sapphire car the idea instead of travel rewards, people are using the points to spend on things like groceries. So that strategy has paid off for amex kate rooney, thanks so much amex down 1. 2 what do mcdonalds and the Worlds Largest hedge fund have in common . Theyre make changes to address the pandemic fallout lets have a check in on bonds muted action today still below 0. 6 on the ten year well be right back here on closing bell. Mcdonalds announced to protect the health and wellbeing of employees, its going to take extra time to reopen theyre going to require customers to wear face coverings in restaurants starting august 1 joining a quickly growing list of retailers including walmart, starbucks, target, that are all implementing the Safety Measures that go beyond the local guidelines staples, another major retailer also announcing mandatory facemasks today. Interesting question of whether that impacts actual sales of people feeling more comfortable, say, shopping in a place that mandates facemasks in a strict way. That is one of the questions when costco had blow out sales yes in the essential retail. They were early on requiring people to wear masks i think the biggest swing factor probably is this helps not need for states or cities or whatever to then have to shut down or reduce their reopenings, then thats probably the biggest swing factor and the kind of factor that the likes of Goldman Sachs pointed to in terms of the gdp impact there is always odd individual stories you see if people react terribly at the idea of being told to wear a mask. But i think those stories grab a lot of attention but theyre not the best case in most peoples view on this issue. I agree 31 minutes left. Time for a cnbc update with sue herrera. Hello, everybody. Heres whats happening at this hour White House Press secretary doubling down on the trump administrations drive to get kids back into classrooms this fall she says the cdc found the risk of spreading the virus is low. Even if there is transmission, later studies come out, lets say, we believe that students should be going back to school because the effect on a child we know scientifically theyre not affected in the same way an aadult. And the New York Times is reporting that fema has been sending faulty personal protective gear to nursing homes. Shipmentes reportedly included surgical masks with brittle elastic bands and gowns without openings for hands a New Hampshire Health Officials says manufacture the items they have received are just useless. Youre up to date. That is the news update this hour back to you. Sue, thank you. Bridge Water Associates is the latest companies to announce white collar job cuts. Leslie picker has the story for us thats right. A source close to the firm says bridgewater is laying off several dozen employees. The layoffs are affecting mainly back office roles, Client Services roles and the research group. In a statement to cnbc, bridgewater says team members will be working more from home so they dont need the same number of support people new technologies are changing the type of people they need and how they serve their clients and they also want to become more efficient while this will produce more than normal attrition in terms of people leaving the firm, it wont be greatly more than normal and we will continue to invest in higher and key areas. Now bridgewater has suffered losses in the flag ship Pure Alpha Fund down 14 in the year through june guys leslie, it is fascinating theyre spinning this as if it is a structural shift in the industry that may have implications for many other hedge funds or banks regardless of how theyre doing. You followed up brilliantly with that performance number. It makes it sound like it is probably influenced by that as well zblfr well, we havent really heard too much in the way of layoffs across the rest of the industry and its important to note, too, one difference with bridgewad wr is they have high so the fact they would take this extra step to actually conduct layoffs is significant for bridgewater in particular, especially amid the shrinking assets with loss this is year. And its also worth noting that that 14 that negative 14 for the year, it actually was a lot worse earlier in the year. So they have come back a bit but clearly still in the red for 2020 guys very interesting, leslie. Thank you. 27 minutes left of trading heres where we stand in the markets. Were lower. S p 500 down 1 . The dow is also down almost 1 intel the biggest drag [squeaky shopping cart] [sniffing] is the salmon wildcaught . She only eats wild caught. [cash register beeps] uh, i need a price check on honey. Dont get mad. Get e trade and get more than just trading. Investing. Banking. Guidance. Welcome back shares of apple pulling back investors looking ahead to next weeks Earnings Report theyre down about 0. 5 today. Joining us with what to expect, tom forte, Senior Research analyst at da davidson were looking forward to the earnings, apple, google, amazon on the same closing bell next week on thursday were looking forward to it. I mean, its interesting to me when we look at netflix, intel, microsoft, they all in fact beat their Earnings Report. Sure, it was lowered estimates they Beat Estimates and all traded lower off the back of that what does that suggest if any one of those three big tech names i just mentioned actually missed estimates how much potential is there for share prices to fall expectations are very high in tech and if amazon and april until particular were to come in lower than expected for the june quarter, then i think you might see some material pressure on the stock. It was down mid single digit during trading hours so the pullback has not been that severe. But most of the companies as you point out have reported better than expected june quarters and i suspect well get the same from amazon and apple next week. What is the key number to focus on when it comes to apple . Is it still the iphone and what do you expect it to be whether its a quarter or quarter or year on year decline in unit sales . Actually i would argue that in this quarter the story really is the rest of apples hardware portfolio. When you think about working remotely and learning remotely, this has reignited growth for tablets. This reignited growth for lap tops we thought 2020 was going to be 5 g and smart phones for apple i think that covid19 is reignited growth for the rest of the hardware portfolio so as it pertains to iphones in general, low single digit decline in units sold would be a favorable outcome. That brings us to amazon. So outperformed even the nasdaq since the last earnings. What kind of Great Expectations are priced in here as far as the boom to their business on the back of the pandemic and how customers lives have changed . I would argue the expectations should be tempered a little bit microsoft reported a 12 age point deceleration in the growth of their Cloud Computing business and i think what were finding and its reflected in a survey of cio survey of my colleague did is that cloud usage is higher during covid19 but cloud sales not necessarily. But to your point, amazons Retail Business is likely doing amazingly well you have seen very strong numbers across the board in ecommerce from wayfair and ebay and today from channel adviser the e commerce sales are likely very strong. Cloud computing maybe not so much what does that imply for lets say both amazon and apple since we mentioned them so far in terms of whether theyre buys on the recent mini pullbacks or stretched given the runs year to date excellent question. The way i think about it as follows. To some degree, tech in general is traitiding on macroeconomic trends i think following the legislation to see if they will extend the c. A. R. E. S. Act 600 a week in incremental benefits for unemployment it looks like they may extend it but at a lower rate. Theyre able to take advantage of the opportunities presented to them by covid19 in ecommerce or hardware, apple, laptops and tablets. The more the Companies Grow in our lives, the more vulnerable they seem to be with regulators there is noise yesterday around apple and the state of texas the tech hearing with the ceos on antitrust is what were hearing postponed from monday. How big of a risk is it going into an election i think its a tremendous risk an argument can be made that walls are closing in if you look at the president and the democrat nominee, both varying degrees have antibig tech aspirations ill be very interested in the hearing and what the four ceos have to say. There is a lot of Regulatory Risk right now the shares again are trading more on Macro Economic trends, on the boom to ecommerce caused by covid19 and apples hardware set in general. But i do think to your point there is very significant Regulatory Risk for big tech including amazon and apple theyre trading on different trends and not on that risk. I think that risk is important right now, i dont think in and of itself it would slow the stocks got it. Thank you good to talk to you ahead of next week helping us pregame for that epic show that we have next week we have a news alert on ratings for baseballs Opening Night julia has the details. Well, sar yashgs people are certainly excited for the surn of live supports espn is reporting the largest audience ever for an mlb Opening Night telecast a record four Million Viewers for last nights new york yankees versus the Washington Nationals game this up is 8 from the previous Opening Night record back in 2017 and its up 232 from last years Opening Night telecast. Does speak to huge demand for live sports. Of course, there is a lot of hope that the basketball will be able to return as well as football back to you. I mean four million i think it was fauci. I think that is the highest ever though. Im surprised. Well, heres the thing. Baseball has seen declining viewership you have to remember baseball is very fragmented. Its football which is really the big ratings, the big ratings driver and Opening Night is not going to have as many viewers as the world series so i think what this really speaks to here is we have seen last years Opening Night was much, much lower but people want to see live sports even im sure plenty of people who are not baseball fans tuned in for that game julia, thank you very much. Yeah, i think its even baseball is the headline yeah. Not so popular lately. Good we dont have mike in this conversation. Hed be offended that were not talking with more warmth towards his sport. How about that fauci opening pitch . That was fun to watch. What a weaker dollar means for your porol a ttfiondhey talk about the scandal. Well take you inside the market zone. Save hundreds on your wireless bill 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 you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Welcome back 15 minutes left in the trading day. Were in the market zone, commercial free action heading into the close mike santoli here to break down the crucial moments of the trading day. Today with we have steve weiss with us. All three mainlior indicjor ind. S p 500 and dow down 0. 7 . Down 0. 9 five or ten minutes ago. A little bit off the lows of this hour. And the lows of the day which were marked ten minutes or so ago. Quite a lot of selling today quite broad. Tech focused and tech lead weak as a whole. Were only down. 5 . Really the net damage is not that significant right now were at a 5 pullback the nasdaq 100 really does reflect the very strongest leadership of that mega cap growth segment so down 5 from a high s p 500 is down about 2 back into, you know, this trading range since early june the market is having a little trouble figuring out an answer to the loss of leadership in some of the big growth stocks. But as you say, its not been something that has been a run for the hills youre not a buyer of this value rotation, are you . There is not value there. Clearly the banks are solid businesses, extremely well managed. Each ceo has been more tested in terms of Financial Markets i just dont see the upside to the names. I continue to see tech theyre a little tired this is almost like a rookie in a first nba basketball game that expends all the Energy Leading up to the opening tipoff when the game happens, there is nothing left f phenomenal stocks today. Tech is still the place to be. Growth is still the place to be. Particularly with more covid19 cases coming up, more states roj rolling back the openings. Nothing goes up in a Straight Line i dont see a ton of down side here were just in the Earnings Period now were getting to the heart of the tech and some industrials. I think youll see it continue to perform better than those reduced expectations so im not doing much much at all. I did shave a little position earlier in the week. But still, still pretty fully loaded here. A huge story for the markets this week. The weak dollar it is down again. The weakest level since january, 1. 6 move lower on the week. That is a huge move in currency terms. As if the whole panic over the pandemic never happened. Its a huge help for stocks. How big . Well, we have a fresh knew look at how impactful the dollar is for companies during earnings. It was so painful last quarterer in q1 north american firms reported a 10. 77 billion hit to their results because of the strong dollar thats according to a firm that tracks Currency Exposure most is due to weakness in currencies like the argentine peso and mexican peso. Supply chains shifted when china was shut down over covid19. It shows you how brutal the strong dollar can be it just eats away at their earnings on average, a four cent hit per share. Thats why this weak dollar which were seeing now will be huge help to companies that do businesses do business abroad, any of them. And should reverse that hit we saw earlier in the year. Benefiting companies from auto to pharma to cone assumer, anyone that sells abroad it also impacts these companies with a lag so you can expect that tail end to show up in the coming quarters in the form of, mike santoli, better earnings. Thats why everyone is paying attention to the weak dollar no the to mention the fact that its helping gold rally and trying to figure out exactly why that is happening. Whether its the expectation of more fed easing or lack of confidence in the u. S. Virus strategy relative to the rest of the world. Either way you slice it, its good news for corporate america. Right absolutely turns into a bit of a tail wind for corporate earnings at a time when big declines are expected there is high Liquidity Risk seeking environment fosters that that being said, i did see some work today saying that trade sentiment is very low. People are very, very pessimistic. This bearish move made them lean in that direction to a point you might expect it to get some support here i think it will be interesting to see how stocks and certainly multinational stocks would deal with a rally in the dollar right here also, real matters a lot what currencies are rallying against the dollar and the strong yen in the last few days, this isnt always the most positive thing no. And the weaker chinese currency is what is happening that is a red light for stocks we have a news alert on boeing phil lebeau has that for us. Take a look at shares of boeing reuters reporting in the last half hour and we confirmed through sources that boeing plans to delay the development and really the building of the first triple 7 x and the deliveries lets be clear boeing is not scrapping the program. But because of weak demand for long haul jets, there is a belief at boeing, lets slow down the plan to rollout this plane. It was just in january they had the flight of the 777 x. There is demand out there for this type of a wide body, long haul jet but not in this market theres not a lot of demand. And thats why boeing has made this decision. We reached out to the company. We do not have an official confirmation we talked with sources and, guys this is not a surprise that boeing would make this decision given the fact that international travel, transatlantic and trans pacific, travel around the world, it is dead in the water right now and nobody is expecting to come back any time soon. Most of the major orders for the 777 x, emirates, nipan theyre hurting as much as the airlines here in the United States so if youre customers are not going to be in the market for new long haul planes any time soon. The smart thing to do, the prudent thing to do if youre boeing is to slow down the ramp up of the plan production of the 777 x. Yeah. Makes sense. Boeing shares near the lows of the day. Were drifting lower in the last few hours. It is a reminder as phil said that the customers, the airlines, are hurting and theyre more in for a period of weak demand. Do you touch any of these airlines, boeing, any of them . Well, i own some American Airline puts heres the way to look at it boeing, i wouldnt touch at all. I dont like the management. They came in clearly old management problems also when the max gets approved great. Great news the it will fly from the Assembly Line to the storage shed nobody will be buying them we saw americans say theyre not buying any planes that they cant fully finance. So that cuts it back in terms of the airlines themselves, the only difference between the Lottery Ticket that youre buying with a one and five million chance to win and being an equity shareholder in the airlines is at least with a Lottery Ticket you stand the chance of making some money no matter how remote that is. The that doesnt refer to the debt of these airlines or the cruise lines theyre not analyzable here at all, period. I dont know if that told you what i felt. But thats my view i think we managed to draw a conclusion from that, steve. Thank you. Lets move on to Goldman Sachs they and the government of malaysia announced an agreement to resolve all criminal and regulatory proceedings in malaysia involving the firm relating to the 1mdb scandal the settlement is 2. 5 billion in cash up front and 1 1. 4 billion of assets the 2. 5 billion cash payment will come out of litigation reserves which increased last weeks results by 945 million estimated to be around 3 billion as things stand. We now await settlement in the u. S. A source suggested not set wlg malaysia is a major roadblock for settle men the in the u. S. The path is clearer now. Nothing expected its unclear at this stage what all this will mean for their capital ratios which have been in the spotlight anyway since the stress test result last month. The stock was up a little bit at the open today the rest of the market during the session. Regardless of the size of the settlement, the market wants the issue closed and this is a significant step on that front and alsoi think the key thing here is, steve therefore creating the positive is built that could happen before the action with settling with malaysia is positive for the stock. But year not all there yet the cost as you point out in settlement is immaterial at this point. The companies dont typically reserve for the full amount because theyve got litigation to worry about they dont want to tip their hand so just get this out of way. Im not a fan of the financials as sara pointed out. If you go back to the campaign where hillary was running, she put out one tweet and that one tweet is about drug pricing. Even though she didnt win and the election was months off, they kept pressure and the secretary of treasury, thats a disaster im staying away from the stock. I dont see where they have the earnings power lets hit shares of lavo nga falling today. Will we have the details on the name we dont talk about that often. Yeah, livo in gos flagship diabetes apps help people bring numbers down. But the stock since the pandemic has been going nothing but up. 400 over the last four months its Digital Health services for employers saw membership double in the First Quarter and big reversal there after tumbling following the ipo a year ago when it was spending a lot to boost growth this month livonga raised the Second Quarter outlook as they have fueled things like the Mental Health app. Theyre noting costs again theyre hiring aggressively amid all that growth. Yeah. They have a lot of interesting insight into diabetes. Thank you. Just over two minutes left of the trading day. Mike santoli, what you are seeing in the market internals sfwh it its soft 21 negative declining volume outpacing advancing volume so roughly matching what were seeing in the headline indefrics the for the week as a whole, heres the nasdaq 100 etf against the pure value etf a subset of the s p 500 that is screened for rock bottom value so you see its outperformed by about 2. 5 but thats just a small kind of margin of the underperformance its shown for a while right now. And then take a look at the volatility index were seeing a little bit of a nudge to the upside. This is never quite actually down a little bit going into the weekend. But still above 25 that is above the lows for the week and still kind of Holding Steady in the mid 20s area. Residual tension about what late summer might bring for the markets. We have a minute left of the session. In terms of week as a whole performance, two things that stand out for me, gold prices up 5 silver up 16 . Oil is up today. 1 for the week. The dollar is down 0. 3 . Down 1. 6 on the week. Back to equities with under a minute left of the session the s p 500 down 0. 64 were down just over 0. 9 . So were off the lows. Nasdaq is the lagger down 0. 9 as we approach the close one sector just holding on to gains, consumer discretionary. Amazon bounces back following a couple of soft sessions to round out the week, the s p 500 is down 0. 6 . Only 0. 3 losses on the s p 500 for the week as a whole kma comparing to 1. 3 for the nasdaq for the week still, first week for the s p 500 in the last four welcome back, everyone, to closing bell. The if youre just joining us, im sara eisen with wilfred frost and mike santoli down across the board. Nothing too severe s p 500 down. 6 so were down for the first week in the last four down less than. 5 though for the week as far as the nasdaq it did close lower on the day and on the week. It was the second negative day in a row and the second negative week in a row. It puts the nasdaq about 4. 5 from its record high where we were a few weeks ago technology has taken a backseat and just shifting rotations within the overall market. Well talk about it. Rut he wi russell 2000 down 2 . So overall, kind of a soft day of trading triggered in part by tensions between the u. S. And china and a big fall for intel which certainly weighed on the dow after earnings boston beer, onest best performers on wall street today after spiking sales of spiked seltzer. Up 25 more than that on the session. Were going as the companys ceo about the blowout quarter and the outlook for consumers drinking more at home with bars and Indoor Dining closed in many states in this country talking joining us to talk about the market first, we have Stephen Weiss and mark smith joins the conversation first though you to, mike, on the selling we saw today what drove it . What does it say to put a first down week in the last four for stocks up . Yeah. Obviously, the on going profit taking a big tag you go back a couple weeks, even beyond that. Bulls and bears alike would have said wow this nasdaq is running hot. Should really pull back. Everyone is crowded into the same kind of big tech platform names. But the question had been how the overall market would contend with that kind of action the answer so far is the market is Holding Together okay its definitely blunted the upside it restrained this rally it brought the s p 500 back into what had been a kind of a trading range since early june so far, not a lot of anything that really is undermind the longer term uptrend for now. Even though the economic backdrop looks like its got some softer footing at this in this week and next as we wait for the fiscal negotiations to play out so all in all, i dont think there is a lot of net change in the trend. Do you want to see if the big cap growth selling gets a little disorderly and looks like more than a pullback. I dont think it has so far. One thing we can say is we have two straight down days in the nasdaq longest streak without that happening since 1979. We can quit talking about it. Do you think china is a significant factor for selling for the big cap tech stocks this week actually, its my number one risk in the market if you look at what happened when whatway first hit, that is going to keep the pressure on the tech stocks i believe way, whether we do business with them or not doesnt matter you have taiwan semiwhich has a lot of exposure over there so the supply chain remains there as well as a number of Chinese Company that aren huawei they need our technology more than we need theirs. I think it will be okay. It doesnt mean that share o shareholders look at it that way for now. We have breaking news on Prescription Drug prices coming out of the white house meg tirrell is following it. The president laying out four different orders that he plans to implement on drug prices. The first one deals with epi pens and insulin, insuring that discounts paid by drug makers gets passed on to patients the second is around what is known as a rebate rule this is actually something the drug industry wanted to ensure that the rebates, the discounts they pay back to the pharmacy benefits managers, the middle men that President Trump is just talking about, that those get passed along directly on the drugs that theyre applied to. So that was something that drug industry wanted. But that a pharmacy benefits managers did not want. So you did see a little bit of an impact to stocks like cvs, United Health and cigna which owns express scripts this something the industry really opposed finally, also talking about tying the prices of certain drugs and medicare to a basket of prices internationally. Now the president was just talking about a meeting with drug industry executives and potentially trying to talk with them about ways to lower drug prices so that he wouldnt implement that last plan so sort of waiting to hear more from him as he is still discussing this right now, guys. But the executive orders, he announcing just now. Back to you. What is the biggest deal as far as the impact, meg is it the allowing importation of foreigndrugs . This International Pricing inzechl, the fourth one, wouldnt take effect for a month and, you know, that is something pretty interesting as well drugs with a lot of exposure to Medicare Part b like the big drug, that is potentially impacted the most. But again, not a lot of clarity about how these things get implemented. Meg tirrell, thank you. Health care, the worst performing sector anyway today are we getting a glimpse of the election run in now . This sector is going to uniquely position always to be hit by both Political Parties yeah. I think it will matter a lot what parts of health care you talk about certainly it could blunt sentiment a little bit but big pharma, obviously, and also the pharmacy benefit managers obviously within things like cvs and i wonder if that is considered to be stripping out profit streams a lot depends on how much investors evaluate this for actually actual implementation and whether its going to hit the Business Models i think it is also, guys, an odd time to go after Drug Companies. Consumers always, you know, want to pay less for the health care. This is a time where we need Drug Companies more than ever. These are the Game Changing innovations we need from the pharmaceutical companies i mean, you think its going to get a political benefit by far it is who is going to be in the white house in 2021 thats going to impact everything this quarters earnings. Next quarters earnings. The so were telling our clients if you think that you have a horse in this rashce you better and youre picking the cheer leader in chief over the democratic nominee, that has tax ramifications. We have to be actively picking stocks that are going to do well in either environment. And tax things like that while Many Companies stopped giving guidance due to the uncertainty around the economy, we took a look at the Biggest Companies and how the ceos were characterizing the current outlook. Its a very Strong Quarter for us across the board and extremely challenging times. Its encouraging to see the support and almost 80 of all these customers that has kept america connected which is why not disconnect them due to financial problems in these times. We foupd the right time, the right time to tell the story that people want to travel it will be safe to travel. Its going to take some time i think Going Forward there is still a lot of uncertainty as to exact nature of the recovery and the direction. But we feel pretty good about saying that q2 is the bottom. I think the undercurrent, people want some additional comfort in their food and i think burritos provide that comfort. Theyre not convincing outlook from the ceos there. You said you like tech rule that one out. If you have to pick another more cyclical sector which would you pick the financials right now look really good. Especially ones that have investment banks with Interest Rates around zero, really hard to make money at a bank if you dont have an Investment Banking component. Financials are telling our clients there is huge opportunity in the u. S. And were asking them to start dribbling in right now and into the future. When i got out of that, steve weiss, it depends on what industry or what company youre with whether youre seeing demand and whether you have an optimistic outlook. I mean burritos and cell phones, i guess theyre in demand right now. While airplane travel and hotels not so much. What are you cleaning from the Earnings Call . It is very stock specific the only places where i actually take an industry view are in biotech. So it depends where you play there are other Tech Companies like we saw where you dont want to go near it just yet so very stock specific when you have to say, hey, you want to buy a bank, but no offense, mark, but, you know, the Interest Rates are near zero so you have to make sure they have an investment bank. Largest part of the business isnt going to make you any money with a yield curve go where you can at least generate return. So thats why i like biotech conditions and speaking of biotech, i want to hit one of your new positions. You bought moderna today the stock went down and questions about a patent ruling and whether that would aaffect the Vaccine Technology. I have been in moderna [ no audio ] ive been involved in biotech for a long time. That is part of the land xap i feel good about it Going Forward. Thank you for joining us coming up, soaring seltzer sales. That stock losing up 25 more than that today. The boom ihan rd seltzer demand. That is it more than a fad this selenite grey is so pretty isnt it . Wow. Jim could you pop the hood for us . There she is. Turbocharged, right . Yes it is. Jim, could you uh kick the tires . Oh yes. Can you change the color inside the car . Oh sure. How about blue . Thats more cyan but. Jump in the back seat, jim. Act like my kids. How much longer . Exactly how they sound. Its got massaging seats too, right . Oh yeahhhhh. Oh yeahhhhh. Visit the mercedesbenz summer event or shop online at participating dealers. Get 0 apr financing up to 36 months on select new and certified preowned models. This piece is talking yeah . So what do you see . I see an unbelievable opportunity. I see bestinclass platforms and education. I see awardwinning service, and a trade desk full of experts, available to answer your toughest questions. And i see it with zero commissions on online trades. I like what youre seeing. Its beautiful, isnt it . Yeah. Td ameritrade now offers zero commissions on online trades. They beat more than doubling consensus estimates. There was a surge in demand for hard seltzer joining us in favorite on cnn interview cnbc interview, the boston beer ceo. A huge jump in the share price what do you put it down to people are really starting to drink more at home during the lockdown the best word is grateful given we look back in march we would have had no idea we would be here in july. What is happening certainly during the lockdown, people are buying alcohol 30 more alcohol based on our numbers. Theyre picking up in grocery stores, Package Stores and theyre drinking 37 more alcohol. So its going home and being consumed there is really key consumer drendz th trends that have been around for a while. Meaning, for example, a move towards health and wellness. People are eating and drinking smarter. Theyre looking for a lot of variety in terms of flavors, foremats and how they experience their beers and looking willing to premiumize. People are not millennials say 21 to 35yearolds are not drinking as much as the people that came before them but their e. Theyre drinking better and that obviously, dave, is more at home sales h what about restaurants and bars what themes are you seeing there . You know, what happened basically not unfortunately, seems to be two steps forward, one step back at best. Less than zero in april and may. Started to come back in june arguably maybe, say, 30 to 40 of what the business was before. I think fortunately for us, are heavily weighted outside of restaurants and bars n the brands that are growing, like truly which is hard seltzer and a product called twisted tea were weighted toward the off premise, grocery stores, et cetera the most unfortunate thing is what is happening to jobs in that channel that is a reference and bars where we got started were doing everything question to help our customers there. But for now, its just until the companies that the country is fully opened, its going to be very a very, very slow decline back out of it what is the risk of supply chain disruption, whether it is sourcing cans or other covid19 related issues with getting the stuff on to the shelves or out to consumers its been a risk from the beginning. We do everything with he can to make sure that the folks that work in our breweries are coworkers in pennsylvania, ohio, delaware had, all the safety gear they could have, screening, temperature checks, maskses, changing shifts social distancing, paying for childcare. Whatever we can do to make the people we can control their lives at work, making them as safe as we could and making them as comfortable as they can be to come back in we rely on other suppliers that have their own businesses and what weve done is take those best practice thats we created early on because we were pretty aggressive about this and share them very freely with our suppliers. So they can implement them in their workplace right now, the balance of the summer is going to be really tight for everybody. And thats in the alcohol business and in, you know, the pepsis of the world are going to have the same challenges dave, your stock is not just today, but year to date. Despite all the challenges does that make sense to you, 127 gain year to date . Im not going to question that because its in our favor we dont look at the short term, we really dont. We care about creating long term value. Were founder company. Our chairman jim cook started this company in 1984 it is always the philosophy. That really helped us through this time. Were continuing to do that. Were in a category where there is not a lot of growth were talking low Single Digits maybe and growing 40 . I think were being rewarded for growth were being rewarded for growth. I think for keeping the business operating as best we can its all the Young Robin Hood traders drinking hard seltzer, dave what about beer . You mention the category has no growth when and how do you envision the core brands, sam adams, angry orchard, getting back to growth again. What is the pandemic effect there . Its kind of the pandemic effect is interesting. It really supported core brands. Consumers, theyre shopping less frequently but when they go into a grocery store, theyre buying a lot more and theyre going in and theyre getting out as quickly as they k i think all of us can identify with that. People are looking for brands they know and recognize. And so, for example, samuel adams boston lagger which is a main stay for a number of years, afr angry orchard, another main stay theyve been declining over the last 13 plus weeks were trying to make this a habit now for people and were investing more behind the brands were spending money in advertising to reinforce that experience longer term, like for beer, you know, were trying a lot of Different Things from innovation to rebranding, new ad campaigns. Were making progress. There is this shift that hasnt happened since lite beer was launched in the mid 70s and called haseltzer. Hard seltzer changed everything. The best we can do if thats what they prefer, we have throb with a great brand for them to buy. Dave, thank you for joining us thank you appreciate it off the back of that big news. Up next, mike is taking a look at two measures of Investor Sentiment to end the week. Moderna shares had quadrupled this year. But now patent dispute is putting the vaccine trial at risk were going to ask dr. Scott gottlieb how that gets resolved. A rare down week for tesla stock. Ltender, you can always watch orisn live on the go on the cnbc app well be right back. In a highly capable lexus suv. At the golden opportunity sales event. Get zero percent financing on all 2020 lexus models. Experience amazing at your lexus dealer. On all 2020 lexus models. Lookentertainmentour experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Stocks finished down. Yesterday was four months since the s p 500 hit that low back in march. For most of that time, as market rallied, youve been able to sashgs you know wh say, you know what stocks are too negative. This is bank of americas bullbear indicator. Its not just about how people feel, its how theyre positioned it has risen up out of what they call extreme bear territory. When this is in extreme bear territory, people are positioned negatively and do better by buying stocks and other risky assets now its more in the middle zone where there is not as much of an ench by these standards, you were getting too happy in the market. You dont have to be an extreme bull to be risky neutral but supportive of the market above 3250 is more of a sell zone for the s p 500 heres a look at something that looks more outright bullish. This is basically an organization of the Investment Managers its as high as its been in years. This is thursday it was reported the tactical money seems very much positioned behind risky assets like stocks p so that would basically give you pause to say the market is poised for immediate upside at least, sarah mike, thanks. Up next, signs that growth of a coronavirus cases in the u. S. Has leveled off but there are still hot spots with troubling surges in the data well talk about all of it with former fda commissioner Scott Gottlieb and then delivery by drone or robot was already in test phases but the pandemic certainly accelerated that technology. A story on where robots will be popping up in the fall thats coming up later on closing bell. Introducing stocks by the slice from fidelity. Now you can trade stocks and etfs for any amount you choose instead of buying by the share. All with no commissions. Stocks by the slice from fidelity. Get your slice today. 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Whew call unitedhealthcare today and ask for your free decision guide. Welcome back moments ago, President Trump signed four executive orders targeting pharmaceutical companies on drug pricing including one requiring Drug Companies to pass along discounts to patients and another allowing the legal import of drugs from canada and other countries where prices are lower. Joining us now is dr. Scott gottlieb, the former fda commissioner, cnbc contributor he sits on the boards of pfizer and ilumina. First react to this news a lot of the orders have bandied about for a while. Anything that would surprise pharmaceutical companies nothing surprising. These executive orders have been in the works for very long period of time they were drafted literally more than a year ago. I think the significance of these is that they set up the next political debate. Theyre unlikely to have Immediate Impact theyre executed by the regulatory agencies. This is going to be tied up in court. This sets up the next political cycle when the Congress Comes bag to dealing with drug pricing legislation. Yeah. Which might be an odd place to be in the middle of a pandemic when we need the companies, dr. Gottlieb just for an update on the virus trends, a lot of charts were making the rounds on wall street trading desk and in Research Notes this morning showing hospitalizations, one chart showing that they peaked and theyre starting to come down have you seen that in the data or is it too hard to figure out now that different states report the kind of numbers differently . Yeah. I think what youre seeing in the data is that cases may be peaking in the hot spot states so texas, florida, arizona, Southern California is different. They still seem to be growing the number of cases. But in the other states which are the epicenters of the spread right now in the United States, youre seeing trends that cases may be peaking out i think hospitalizations can continue to rise for a period of time because this is a delay in time to hospitalizations and also deaths are going to continue to rise for a period of time as well but there are some indications that the epidemic in the states is starting to slow. These models follow google mobility trends data pretty well and so when you see people starting to mask up and withdraw, starting to do less, go out less, thats a good indication that youre going to peak out in the epidemic thats what the models are showing right now. We talked about a couple weeks ago being, you know, two to three weeks away from a peak thats where we are now. Its likely to be an extended plateau, however were not going to come down the epidemic curves sharply. Well plateau at this number of cases for a period of time right now. Dr. Gottlieb, the debate about whether kids should go back to school or not rages on i wonder whether you think it is fair to differentiate between crucial and less crucial activities for example, not allowing indoor gatherings for dining but maybe its a risk worth taking for schooling if schooling is that much more important . Well, look, i think its important we differentiate activities as a community. If we want to open our schools and preor the yo we prioritize that, with very to think about whether we want bars to open. We also have to prioritize what we do in school. Extra curricular activities should be put on hold while we try to reopen the schools and prioritize inclass learning. On a community level, the first thing you need to do is get the spread under control it will be hard for communities to open schools for in class learning against the back droch of really epidemic uncontrol spread so you need to have the spread under some measure of control before you can safely contemplate opening the schools. A lot of parts of the country, the epidemic is under control in the northeast. I think those states are going to have the opportunity to try to open the schools in the fall for a period of time i wonder if you recommend to these Decision Makers the governors and other local authorities on opening schools whether it matters by age range. What does the data show about school for teenagers, for instance, versus younger kids in terms of how likely they are to contract and to trans mitt this disease. Looks like kids across the age speck truck are less likely to contract the disease. But there was a big study a week ago that showed kid between 10 and 19 were just as likely to trans mi transmit the disease when they became symptomatic but for those who did, they were just as likely to transmit it if not more likely than an adult. What we also dont know is what the consequences are a lot of people say that there is no significant evidence that kids are having major consequences from covid19 the actual instances of hospitalizations and deaths thankfully is low. But the reality is that most kids probably havent been infected with covid19 there is comparisons in the cdc document that came out last night to flu and noting that rather grimly noting that the number of flu deaths far outweigh the number of covid19 deaths in the pediatric population the reality is flu infected 11. 8 million kids last year. We have not infected anywhere near that number of kids with covid19 we dont want to find out what it might look like if we d we want to prevent outbreaks in the school setting. Clearly tensions with china he is ka late. To what extent do medical supplies in the u. S. Rehigh on supplies Perfect China still a lot we have not been able to change the Global Supply chain. This is going to take some time to do. This china just started to flow back into india a lot of the active pharmaceutical ingredients that go into drug manufacturing. The reports out of india that india is now getting the full supply of active pharmaceutical ingredient after they shut dont flows to try to husband the resources as they dealt with their own Public Health crisis in that country. So there is an indication that the Global Supply chain at least as it relates to china sending supplies around the world is getting back to some semblance of normal. Were still very dependent on china for a whole host of medical supplies dr. Gottlieb, what is the prognosis for what the curbs look like . I wond feer if the mask mandate will show a leveling offer and decline of the curves. If you look at everywhere thats been successful around the world and in this country like new york, it was nearly total shutdown that crushed the curve. So what then do we expect in places like florida, arizona and texas which are not shutting down look, i think what we can expect really is a continued burn i dont know that were going to get the infection levels lower than where they are now. Even if texas or florida get it under a better must sure of control and you start to see cases go down, were seeing other states heat up, ohio has a big outbreak right now georgia, missouri, kentucky, illinois, cases are starting to trend back up. And so i think what were likely to see is a rotating series of region hall outbreaks around the country really through the fall and winter and thats the challenge we havesome so much infecti so this kun friday right now, its hard to crush the virus. States that implement stringent measures about what they allow, Indoor Dining, states that have better adherence to universal precautions like mask wearing, i think they have a better shot of keeping the epidemic under control. But there is going to be reintroductions into states like connecticut right now, the state that im in. The infection rate is very low inevitable the virus is going to come back. By taking the measures, you can keep it at bay thats what were hoping for. Dr. Gottlieb, thank you for joining us thanks a lot. Still tom kosh come, the reo school in the fall well speak with the ceo of education john mcgrawhill about the challenges ahead and the competition in Education Technology were back in a couple minutes time for a cnbc update hello, everybody. Heres whats happening at this hour nonessential travelers to the Nations Capital will now need to quarantine for 14 days if they are coming from one of the countrys coronavirus hot spots. That order excludes maryland and virginia no exclusion though for georgia. That state confirming more than 4800 new cases today that is a one day record georgia also reporting 82 new deaths in chicago, a controversial statue of Christopher Columbus was removed early today. Just the pedestal remains. Last week protesters clashed with police while trying to topple that monument and the Toronto Blue Jays found a new home just across the border in buffalo, new york. Theyll be playing their home games at the stadium of the triplea buffalo bisons. The first game will either be next friday against the phillies or august 11th against the miami marlins. The canadian government wouldnt let them play in toronto because of the coronavirus you are up to date ill send it back to you sara sue, thank you. Sue her air yachlt up next, well ask the ceo of Education Company mcgrawhill how they will be impacted if schools are unable to reopen in full this fall [indistinct radio chatter] mom come on, hurry up all systems go . Mission Control 5 4 3 2. And liftoff. vo audi etron. The next frontier of electric. Get audi at your door Remote Services through participating dealers. Some feel opening schools will only be safe if there is a vaccine. So how are Education Companies adjusting . Joining us is mcgrawhill ceo. I think of you as an old School Textbook company you have a huge Digital Business what you are seeing as far as demand for both as educators are trying to figure out how to open this fall . Hi, sara. Well, were proud to be 130 years old plus you would know us as a textbook company. We had a lot of success with developing gra developing great content over the decades. Now what were really now is a digital company. We deliver the vast majority of our wonderful content online through two major platforms. Sips the beginni since the beginning of the virus, 89 of our revenue is from mcgrawhill connect so what were finding is the anxiety that this is creating across all levels of education, not just Higher Education, also throughout k12, is requiring an amount of structure now. All of our customers are saying us to we need to have content companies, technology kmcompani that we can rely on that have the material that allows us to deliver all of the Course Materials in away they can access them from anywhere, at any time that can be assessed by their instructor so we make sure we keep all of our students on track. Are those Digital Tools as effectsive, simon, as learning tools . Can they really replace going into classroom zshgs that really work two good questions there, sara the first answer, can digital materials and delivery, can that help and work with education provision and outcome . The answer is absolutely yes weve done a bunch of studies where were seeing in some cases a two grade increase in performance if students go through the material effectively in a structured manner and then work through the assessment questions. The second part of your question is critical which is you must have great teachers. You must have really strong focused, organized structured teachers that engage and innovate the students to learn you need both. You need great material delivered flex by because that will help the outcome and performance, but you also need great teaching to inspire students thats never going to change if weere talking about university education, do you think this next year will have an impact on the costs for students if we do have a year where students stay at home and therefore, just creates a bit of a rethink of how expensive Higher Education is . I think it will, wilf thats a good question i think inevitably there will be students choosing, whether or not to attend college, Higher Education space this year. We at mcgrawhill, we believe that probably around 92 of the normal influx, if you like, of students will indeed attend. Therefore, roughly a 7 or 8 decline this year. There are various studies that show some high eastern lower i think many of the group that go will choose to go to a difference institution for the first year. It will be a blend and students will select where is the most convenient place for them to go given they already part in class and part at home where are they best able to get their materials . And what we found is that students and instructors really want to use the same material very, very easily and switch between both either in a physical classroom setting or in a Digital Online remote setting as were talking right now simon allen, thank you for joining us pleasure. Thank you. Up next, mgm is rolling the dice on the reopening of Atlantic Citys casino this weekend. Can the casino keep customers safe. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Hey, our workers comp insurance is expiring. Should i just renew it . Yeah, sure. Hey there, Small Business owner. Pie insurance here with some sweet advice to stop you from overpaying on workers comp. Try pie instead and save up to 30 . Thirty percent . Really . Sure get a quote in 3 minutes at easyaspie. Com. That is easy. So, need another reminder . No, im good. Reminder for what . Oh. Ho ho, yeah need workers comp insurance . Get a quote in 3 minutes at easyaspie. Com. Save hundreds on your wireless bill 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 you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Welcome back las vegass mgm is hoping to help turn around the fortunes as it gets set to open a property in Atlantic City this weekend. How the company is planning to keep staff and customers safe. Theyre coming back after four months away as with other casinos, it is a whole masks on every, plexiglass everywhere oh yes, and a new boss she started her job may 29th and shes coming back to work in a pandemic she said 94 of her employees responded, yes, ill come back new Jersey Governor Phil Murphy decided right before casinos reopened to delay Indoor Dining. That created a huge headache for the Atlantic City resort to figure out how you feed hotel guests and casino guests highend food trucks, outdoor cafe, restaurant at the pool she says she really wanted these experiences to match the brand expectations i asked her what advice she would give i would tell everybody to stop and take a deep breath and just think about this and think about not necessarily the business side of this, because were all human beings first and think about how you would want to be treated. Businesses are in business to make a profit, but right now we have to put humanity first the ongoing challenge for all atlantic casinos is that Building Occupancy is capped at 25 . So every customer that comes through those doors is extremely important, guys. It does seem like theres been so many hurdles to get over for these casinos and the ability to then be profitable in that environment clearly pretty hard on top of that theyre increasingly facing threats of Online Gambling and casinos which does become more appealing. And i would think for a company, say, Las Vegas Sands which has fought its ceo has fought tooth and nail against Online Gambling. It might be more of a problem. For mgm, they got in early, they were prepared to roll out sports betting. They think theyre going to take advantage of going in hand in hand with their Online Gaming platform, Online Sports betting and then reopening the sports book and trying to merge the two of them together i think youre seeing that with a lot of these other Companies Caesars is doing much the same and trying to maximize the opportunity there. Thank you up next, well take a look at the monster week ahead for earnings that kicks off on monday plus, find out whether robots could be the key to keeping students safe at universities when theyre finally able to return to class. 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. Some universities are hoping the rise of robot delivery could help keep students safe on campus when they return. Safely feeding and housing fulltime College Students here in the u. S. Has become a major concern, especially with the fall semester about to start and no end to the pandemic in sight. One option, a robot that delivers food and books on and off campus at George Mason University students on and off campus will be encouraged to use this service. Its the best mechanism weve had to avoid the transmission of covid virus. There is very few touch points where its human to human when youre using the actual robot for delivery. According to starship, each campus will have 30 or more robots to deliver. Post mates is doing autonomous delivery of a variety of things in the l. A. Area with its server bot. Also this week amazon announcing its scout robot is delivering packages in atlanta and tennessee. Some big name players getting into this space. The idea of using robots to deliver books in the age of kindle, ipad, laptop, it seems like you missed the point there a little bit. The University President s we spoke with said the real idea is to keep people from going off campus at george mason they delivered right around 30,000 meals. They expect that to increase this year. Another thing it might be used for are samples for science projects and paraphernalia from the bookstore. Continuing the school theme there which is very good, weve got a busy, crazy wild week of earnings coming up heres the calendar which shows some of the headliners 3m, pfizer, facebook, boeing, apple, amazon, alphabet, many more also wednesdays is also fed day, so fed meeting not expecting big change also on thursday its not those crazy earnings, were also going to get the gdp number, which could be epically awful, which is expected but will also be a major headline. Going to catch a lot of eyeballs minus 30 , some are saying or more it will be pretty much a mark of what weve been dealing with for a few months now in the earnings season it sometimes goes in these phases you have an official run where like this week theres a sell the news response. Then people start to expect a little bit less. Their stocks are already 5, 8, 10 below recent highs you dont know if theyre going in with that same sense that people are leaning toward a very positive number. Well see. Its all relative as you were obviously saying anyway, mike. For the week as a whole, ending down but only a third of a percent to the s p 500, 1 3 of a for the nasdaq gold was up 5 , silver up 16 . Its been a fascinating week thanks for watching. Im melissa lee. Tonight on fast after big techs big selloff this week the chart master looking at a few stocks that are flashing real warning signs. What they are and why you might want to get out. Plus, Home Building stocks have been on a tear since march lows. Theres one name in the space thats poised for even bigger wins well tell you what it is. Friday night at 5 00 means only one thing, happy hour. Well crack open a cold one with a stock thats got a nic