Taking new steps to address income and equality and Environmental Issues and apples tarring 2 trillion stock getting a downgrade to fight through that record valuation. This is Worldwide Exchange here on cnbc good morning, good afternoon, good evening im Brian Sullivan you are watching cnbc. Futures are flat should pick up the next couple of hours well call it flat groundhog day for stocks on wednesday. Another day, another record. Six Straight Days of gains they went above 11,000 for the first time ever. Not to be outdone, your first session in a row this could be your rbi we have 17 s p 500 stocks up 50 this year. Lots have done that. This is up 50 on the year the single best performing stock is dexcom, a wearable device to track glucose. That stock has nearly doubled year to date lets get you trade to the top stories from the show that just ended moments ago. Amazing how quickly you do the turn around. Anything to make it on to wex. Looking at sterling. Rallied to a fivemonth high versus the dollar. The bank of england kept rates steady with the size of the Purchase Program unchanged painting a more pessimistic picture of recovery. Warning that they wont return to new levels. They expect the uk to double by 7. 5 by the end of 2020. Looking at what this has done to equity markets down 1. 3 when the pound moves higher and the ftse 100 tends to move lower we are seeing red across most markets as well. In the german market, essentially flat including adidas shares trading higher up 3. 2 the Sports Wear Company reporting an operating loss. Worse than analysts had expected they had expected a bounce back in the Third Quarter the ceo said we are now seeing a light at the end of the tunnel now to the latest of washingtons political wrangling as the white house threatens to go it alone. To Frank Holland the white house is threatening executive action as the push for the relief plan continues. They failed to reach a deal on the package following the meeting yesterday. President trump will address Unemployment Insurance and a more toon evictions and presidet trump looking at a new plan to give 25 billion for airlines. Republican support for the carriers as demand continues to be dramatically lower. The package already has support from the majority of the house reaching out to the u. S. Attempting to try to start a cold war between the two superpowers. The Trump Administration wants to remove untrusted chinese tech apps like tiktok and we chat from the u. S also mentioning apps from huawei should be banned back over to you to paraphrase like the late great prince, is the market partying like it is 1999 the gogo days of the 90s in big tech welcome to our guest cio at investment partners. Good to see you again. It might be similar but you think it might be a similar outcome . To some extend but not exactly the same the stocks in particular, it is not true of every single one those stocks like microsoft being a Strong Company you had a large number of companies with questionable business paths and models. More by a long shot. What you are seeing is the market getting very narrow down to some of these companies doing very well and quite a few large numbers when you look at the none market cap weighted not doing well and then seeing growth and value i think thats where you can say it looks similar in that respect. It is worth looking at again, valuation matters in the long run. I do think it is worth looking at it balance out. You might keep asking yourself why do i own these in the 90s, a lot of companies were fake and didnt really make money. I remember them well there are Real Companies now where are you seeing value one sector has not performed there has to be sectors where investors arent paying attention . You are right banks, it is ugly to think about them now and financials. It is not a great environment for them youll see loan losses they are very cheap and that will work out. I dont know how quickly that turns. I think some of the industrials adding leverage to the economic recovery along the way if you are thinking about a lower risk area. Utilities have traded poorly eventually and looking into some sort of yield. They look cheap relative to Interest Rates certainly not exposed hardly at all with regard to economic slowdown if you had to pinpoint what percent is government rauun and the stimulus, could you put out a number they did great things to pull us back and some of those programs did have a positive effect i dont want to give the impression that it is all some sort of sugar high that has to go away. The Financial Markets didnt lock up. We are still functioning we can debate how quickly the recovery is going back we lost momentum recently. At the end of the day, we are on the mend again the markets run ahead of reality at the moment. That doesnt mean, it has to fall on and to get there, reality will catch up at the time always a pleasure to have you on the program well see you soon when we come back, the stocks you need to watch including shares of roku they are down almost 5 . Up beat Quarterly Results and guidance a critical deadline to the job creator and Small Businesses are facing Parent Company of quicken loans said to make its ip on the lower price and big red flag still to come a busy hour when Worldwide Exchange returns. 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. Welcome to camp tonsafun on xfinity its summer camp, but in your living room. Learn how to draw with a minions expert. How to build an indoor Obstacle Course plus. Whatever shes doing. And me, jade cattapreta. The host of es the soup camp tonsafun. Its like summer camp, but minus the poison ivy. Unless you own poison ivy. In which case, why . Just say summer camp into your xfinity voice remote to join. Well cocome back. Streaming movies, live music and lots and lots of home motorcade masks. Starting with shares of roku as they say shares of advertising uncertainty. More users logged on to its platform expecting growth in the second half but not as forecasted and shares of etsy buying related items. Lots and lots such as face coverings. New and react vated buyers those are more who have not shopped on the marketplace a year or more live nation stunned. The image or imajority of concee keeping tickets instead of asking for a refund. Shares down about a quart and a half that last tid bit good news. On deck, making money by doing good why Impact Investing is booming. Our conversation ahead announcer todays big number, 51 . Thats how much sales of golf equipment grew in the u. S. During the month of june compared to last year. According to the npd group 20 million rounds of golf lost during the covid shutdown in april. A secure Mobility Solution using the hp elitebook powered by intel 8th generation core processors. The hp elitebook features groundbreaking builtin security, like sure view to thwart visual hacking and cdw configures them to your companys specs. For mobile security, you need hp and it orchestration by cdw. [intel jingle] good morning you see that shot of time square just iry normally, there would be work trucks and vans and cars you see a few. By the way, they are instituting check points now of cars coming from out of state. Theyll take your license plate and make sure if you are coming into the state that you obey the quarantine rules nuveen is making a big step of esg 150 million for new Impact Investment we sat down with the comanager of private Market Impact helping head the new fund and began asking what impact vesting actually means. Impact investing is the practice of intentionally making investment focused on solutions to two of the largest issues which are income and equality and Climate Change we humbly submit the diversified portfolio can make strong risk and returns and create Meaningful Solutions to some of these problems thats how we describe it as nuveen i guess the krcritics would a you are not going to make money doing social good, otherwise others would have done it in mass before. I would say Impact Investing is now 10 years old going from niche to mainstream with the growing acknowledgment that people and products are reaching growing themes we have to look at that as a possibility. Focusing on growth and making investments in companies that are doing things better, faster and with Affordable Housing in the u. S. The opportunity set look to understand another part of the market that is not getting capital. We are focused on companies treating that lowincome emerging customer. The paying customer that they are but really developing products to serve the needs of the customer we haveclose to 2 billion adults worldwide that dont have access to a bank account that is an immense Investment Opportunity to device the right product for the customer base. Im going to assume that mobil banking in developing markets would be an idea give our viewers another concrete example of an investment you have now. We hear the themes, it is what types of investments and returns can be expected . Ill give you an example of a company in india we vested in. A company that provides working Capital Loans for the indian farmer meeting them when they need it most without taking inventory, crop or climate risk largely, the Agriculture Sector is unbent. We look at a company like that an Expert Management Team has devised when and how to lend to that farmer. That company is growing north of 30 cumulative annual growth our Company Comes in to stale that growth and take that Business Model to other countries. We are putting at risk helping management think of the next 3 to 7 years and we are looking at strong private returns and currency value also the fact that the organic growth in these companies will be so strong that it will deliver those returns for our investors as well as deliver the strong impact that is innate to the business thank you talking about impact vesting fast growing and profitable in many cases they are still cleaning up and trying to find answers and survivors in beirut. Lets get to that with phillip mena in new york good morning. Global rescue mission is under way in beirut after that massive explosion that rocked the port area on tuesday. The death toll has risen to at least 135 people with 5,000 wounded. Hospitals are overwhelmed and victims still trapped. The blast sparked by a fire at a Storage Facility packed with more than 3,000 tons of material normally used in fertilizers the commission looking to dismantle the Police Department in the wake of George Floyds death. This move for a chance to vote in november. The nba board of governors and players have finalized plans to create the First Foundation to spur Economic Growth in the black community. The initial contribution will be 300 million the fund would be public and lead to racial equality and social injustice sounds like the story we just covered. Apple getting a rare down grade. Is that even allowed it inches closer to 2 trillion valuation. Will the new iphone put it over the top or has the stock topped lha me b wel veorin ait derek, seems like your team is operating just fine remotely. Yeah, everything is running smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. Welcome to camp tonsafun on xfinity its summer camp, but in your living room. Learn how to draw with a minions expert. How to build an indoor Obstacle Course plus. Whatever shes doing. And me, jade cattapreta. The host of es the soup camp tonsafun. Its like summer camp, but minus the poison ivy. Unless you own poison ivy. In which case, why . Just say summer camp into your xfinity voice remote to join. Nasdaq 11,000 . How much higher can stock keep going. Washington, no stimulus package yet still waiting for more help. On track for this quarters best investment class think again. The answer coming up your morning rbi on thursday, august 6 this is Worldwide Exchange. Welcome back good thursday morning, im Brian Sullivan futures not giving us a whole lot of help. Another record day yesterday was the six straight day of gains going a love 11,000 well see if we can close that level today. The dow up four sessions in a row. Your stat of the morning could have been the rbi. Could have been better for you 17 s p 500 stocks up more than 50 this year. Not 50 off the march lows that is like half the s p. Just up by themselves. 50 this year in the middle of a pandemic and lockdowns the single best performing is dexcom up double the company from san diego there in the s p 500 the bank of England Holding Interest Rates steady. That was expected. Also maintaining the exiting level of asset purchases stocks are trading douchb a bit. They were higher, the ftse and germany as well. Shang high up, hong kong down. Lets go more local and to washington where Congress Continues to work on another coronavirus aid package. If a deal is not reached by the end of the week, white house says President Trump might take executive action on his own. In the meantime, paycheck protection program, ppp is said to expire on saturday for businesses that have not yet applied for a loan more on all sides to this Small Business, kate good morning. The ppp is set to expire on saturday, august 8 for businesses who have not yet applied. They can still send applications there is still 128 billion left in untapped funds. So far, more than 5 billion in loans have been made lawmakers are considering extending ppp and enacting other guidelines to support Small Businesses in the latest proposal including 100 billion for longterm, lowcost loans for seasonal businesses and those with less than 500 employees and macing revenue losses. 190 billion for seconddraw ppp loans. And simplified repayments and those arent without controversy. The proposed revenue test, Small Businesses will need to prove their revenues have dropped by at least 50 120 trade groups asking lawmakers to lower the threshold on the back of the fed that shows an impact on minorityowned businesses as a result of the pandemic a lot going on there, kate. What sticks out the most to you about some of the proposals. I think the thing that has people up in arms the most is that revenue saying 50 of a drop is too high if a business even loses 20 , that is enough to close its doors. Everyone wants something in this but i would say thats top of mind right now im going to put you on the spot here. I apologize, you are our Small Business and sort of restaurant guru new jersey, you still cant dine indoors. Theyve been trying to do the Outdoor Dining and then it was 90 degrees and humid and then you had tornadoes touching down wiping out these outdoor facilities any indication when we can go sit in side and have a safe socially distanced meal . Anything, please you know new jersey has taken a cautious approach. What you brought up, the industry at large is one of the reasons why the National Restaurant industry wants a 120 billion industry specific fund for reasons like this. This was even before the tornado was coming it will be a while before we can go sit inside and before consumers will feel comfortable to go do Something Like that some of these places have built these elaborate Outdoor Dining things like a wedding and a lot of them just got blown away these restaurants, between people leaving new york or new jersey, the weather. They cant get a break many head winds, yep. Probably the hardest business to run anyway and now dealing with all of that safety first, i understand that. Amazing, there are states can you go inside and have a meal. Thank you so much. Important story there. We can get to ask some of the folks involved in these negotiations, Senate Majority speaker and House Speaker will speak in the 9 00 a. M. Hour. To Small Business to americas most valuable company, apple. Closing in on a stunning 2 trillion it got a rare down grade yesterday. Bank of america shifting from buy to neutral hire costs to produce 5g phones and potential antitrust regulations. Welcome. Do you believe the valuation is finally topping out on maybe its stock price as well . I do think it is expensive but with everything the fed is doing, they are doing everything to prop up apple and the rest of the s p 500 and nasdaq as long as they are using money, it is hard to bet against the market and the biggest component of the market. Try to connect the dots our viewers may not understand the connection it is not like the fed is buying apple stock directly more like the fed is buying up the debt is that the dots and how you would connect them we had jokes saying they were in the same business. The fed and apple both make a lot of cash. Pending Interest Rates near zero percent forcing risk appetites to want to buy stock to have earnings and a yield when you offer zero percent in fixed income, you want to buy anything there are so much algorithms out there that base their formula on Interest Rates they are so low, it sends all the stocks flying. It is expensive, no doubt. You have to look at the forest through the trees. We are living in a very special time where the fed is helping all multiples rise a lot what is amazing is that we are here for the core segment. We are talking about a handful of unelected officials all good people, running a budget that is roughly double that of the u. S. Budget. Think about that five people running the 7 trillion Balance Sheet what about apples core business im a trained fundamental analyst focused on earnings and valuation. Ive been doing it for decades right now, fundamentals are a little out the window. A Company Might be down a percent and then back up in the next week or two thats the environment im happy to talk about apples fundamentals they had a blowout Earnings Call the numbers werent amazing because they are deep in pandemic and global recession and depression weve never had downed jobless claims up this much and down this much. It is nuts for what they said on the call is blowout these are huge words they expect the holiday to be strong i got to image inn thine the school will be huge. Most will go nearly all virtual. For folks that can afford it will be upgrading ipads. Weve been warned that too much screens are bad and now theyll be watching screens all day long hopefully some of this stimulus plans will go to communities that cant afford it they might get stuff bought so that they can learn remotely on the same level apple is a dominator in the education space. Largely, this pandemic and the lockdowns could be a positive for them in that right you you are bringing up great points we are siege it already. Those companies on the pc side have talked about really strong growth i think some of that is pulled forward. Kills will be out of school and be having more screen time better to have screen time than coronavirus. They are shopping now. I think back to School Shopping has already started. Some of the bullishness tim cook said on the call it is we didnt even get into all the services and apps people are buying interesting there. The core business coming and the fed. The tail wind behind apples sailboat thank you coming up, the Parent Company of quicken loans is going public today its ipo is priced below expectations telling us more about the industry, the economy and broader markets. As we head to break, other top stories, cleveland fed president calling on congress for Pandemic Recovery help. She says the central bank is ready to do more if needed facebook and twitter punishing President Trump campaign over a video where he says the children are almost definitely immune from the coronavirus facebook removed a video interview on the president s account and twitter blocked the Reelection Campaign account until it removed the link to the video. And ben main is stepping down from the job where he had been working on the Worlds Largest pension fund well be back right after this the covid19 pandemic is creating Food Insecurity on a scale not seen in decades. An estimated 54 million americans will struggle with hunger. With 200 food banks and 60,000 meal programs, feeding america is the largest hungerrelief organization in the country. Join Morgan Stanley in supporting feeding america and your local Community Food bank. Welcome back to Worldwide Exchange. Here is Frank Holland. Starting with toyota posting a small quarterly profit despite seeing car sales cut in half it notes the pandemic continues to make the Business Outlook uncertain. Shares of Western Digital down sharply the memory chip company disappointed investors different story for zynga after posting a 47 jump looking for things to do things like empire dragon. I hear it is popular never heard of it you and i may have to play remotely and be a lot of fun one thing we are watching is new stocks the parent of quicken loans. Leslie joining us now with more on rocket companies. Hey, brian. There was weaker than expected demand for this deal Rocket Company is the parent of rocket mortgage. Was expected to be the largest ipo of the year. It fell short. The detroit based company priced below the range, offering fewer shares that was less than the Warner Brothers ipo this year. Investo investors balked at the valued valued as a Mortgage Company rather than a technology company. Is the largest lender in america. Reporting record original nation volumes in march, april, may and june and historically low rates. Things are uncertain especially with no Pandemic Relief Fund this was described as a showme story waiting to see how it plays out before jumping in. Well see what happens when the stock starts trading in about five hours time. Man, this show is early, or late to be fair, the market opens and then the ipos open well see how it goes it could go wildly spectacular it sounds like investors would have preferred to have seen this a few months ago when the Mortgage Market was taking off and not when many think it is topping out. That could be true. Quicken has been a huge beneficiary of this. They dont have an updated financial on what is going on in july, for example. Part of this is the ipo fatigue. These bigger deals, older companies. They are just not doing well lately part of it has to do with the fact in the new shut down environment, they are being pitched over zoom over inperson road shows uncertain what the future holds. Little known secret, i have been to rockets headquarters in detroit. It looks like a tech Company Super sleek. Part of dan gilberts rebuilding in downtown detroit. A cool building. Technology stuff like bean bags. So it is like the google of michigan im going to use that but i will give you full credit. The google of michigan well watch on how that trades today. Thank you. Dont miss Rocket Companys Ceo Jay Farner you know him from the commercials. You can talk to them about their Headquarters Well reveal what is on track to be this quarters best investment it is not stocks or a stock. An asset class what is that l is your rbi that shalbe unveiled next. It is time for your morning rbi. You know stocks have been read hot. Many things have been rising recently primarily millions on stimulus and work on a vaccine. Do you know what the best asset has been this month and this quarter . The nasdaq . Gold no bitcoin. Up more than 6 this month nearly triple the nasdaq doubling golds gains. Bitcoin getting back on investors radar in a big way nearing 12,000 random but profitable for some, i guess. Back now to the broader markets and what has been an unstoppable stock. Continuing to amaze. Yesterday, the nasdaq peeking its head above 10,000. Lets get to shawn amazing. I read that in the same sentence stocks are making records but cash levels are making records how can both things be true . I guess you could ask the same question why nasdaq and gold had the same performance over the last 12 months. Some is defensive positioning. Some think of that as representative of a lot of different companies. When you have the crowded position, technology is driving things that is a defensive position stocks going up. Defenses, and cash also up thats what you are seeing everybody talks about all this cash at the sidelines i dont consider the bank a sideline it is a safe place the bulls will say if that, even trillions put into use personal wedge will still see value in this market sure. You are seeing a buy fiforcated market you are seeing the covid cyclicals not doing that well. They havent recovered that much we think technology is fine to hold on to if we can make sense. In some ways, it makes the case for technology we likecyclical names. We like industrials. Those are areas where we are looking at whats wrong with financials . They are not performing at all they are turning into the oil and gas of investing and i dont mean that in a good way. Sure. I would say it is tied to the treasury yield and if you have a low yield, it is hard to make money. Any sign of that turning around at some point, will the financials year to date be a good value for your clients money . I think so. We tend to look at things in a 12 to 18month standpoint. When you start to see the economy recover, you should see a rise as well the fed is pushing down treasury yields that will be a period you are kind of battling it out and kind of where they are. True where they do start to rise it may not be until later part of this year early 2021 when we have vaccines and the recovery looks more firm i know you do some great surveys and what people think about things the economy, better or worse hard to picture it worse, i guess. What are your clients saying if you ask our client the simple question of where is the economy going to be in 12 to 18 months, it is in better shape. Learning to live with the virus or more effective treatments that is a real key message we saw the u. S. Gdp decline. We need an annual 50 of where we were. We are seeing that with the payroll as well. It is going to take time to heal adp did miss the initial report by a little over 3 million it will take a while and well need more stimulus it is not it looks like they are going to get something done a great point about adp and payroll numbers. Great to get your views. Have a great day see you soon thank you very much good to see you as well. Even though i cant see you, i do appreciate you tuning in. Dow futures are up 25. Will today be the day the nasdaq closes above 11,000 for the first time ever. Stay tuned to find out well see you tomorrow hey, kids welcome to camp tonsafun on xfinity its summer camp, but in your living room. Learn how to draw with a minions expert. How to build an indoor Obstacle Course plus. Whatever shes doing. And me, jade cattapreta. The host of es the soup camp tonsafun. Its like summer camp, but minus the poison ivy. Unless you own poison ivy. In which case, why . Just say summer camp into your xfinity voice remote to join. Good morning markets making more records. Nearing the february high and the nasdaq looking to reach 11,000 for the first time. And facebook banning a video posted by the Trump Campaign president Bernie Sanders wants to tax the money billionaires made during the pandemic what he is proposing is announced. You a it is thursday, august 6, 2020 squawk box begins now. Good morning welcome to squawk box on cnbc. Im becky quick with Andrew Ross Sorkin with scott wopner joe is off it is good to be back in the city at the nasdaq my first sojourn to return we had an incident i was up in connecticut. We lost power and internet trees downed on both streets
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