Texas and louisiana preparing for laura to makela landfall asa possible cat 3 hurricane and facing new head winds of a pandemic and the end of an era. They start the end of a new slogan as Everybody Needs to keep their hands out of their mouth. This is Worldwide Exchange on cnbc good morning good afternoon good evening im Brian Sullivan thank you for joining us on a busy tuesday we have to start with the markets and your money despite whatever news there is out there, the money flowing into stocks just does not stop futures higher, maybe on possible headlines of u. S. china trade talk front all of this coming after yet another record setting rally s p 500 closing above 34 time higher and nasdaq hitting 37 records for 2020 the dow, now less than 1 away from break even on the year. Could get there today with the way the futures are looking. Speaking of the dow, there are big changes coming as announced late yesterday three stocks in. Three stocks out sales force will replace exxon mobil. Theyve been a tenant in one form or other. Exxon, once the worlds Biggest Company now out of the dow industrial index meantime, am again will replace pfizer and honeywell will replace. Sales force, am again and honeywell are in to the dow. Because of apples coming four for one stock split, salesforce will bring that back to 23 still less than it was the changes will go into effect before the market opens on monday, august 31. Real sign of the times there to the global markets. Kind of a mixed picture overnight. The nikkei rose 1. 4 europe, can you see mostly higher not big gains. The wall says green, sos that up the cac 40 are all higher. Back here at home, director fauci sounding the alarm over reports that proven covid19 key clinical trials. We are here with more on that on this busy tuesday. You are right, dr. Fauci said it is just is a bad idea to deliver the vaccine under special guidelines before it is proven safe, adding, quote, if you prematurely let a vaccine out, it would make it difficult, if not impossible for other vaccines to enroll people in their trials currently under way. Zoom fixes bug responsible for partal outage. Those impacted, Atlanta School district with 50,000 students and the Michigan State supreme court. It took about four hours to resolve that issue tiktok revealing monthly global active use numbers in the filing, the active users have grown nearly 800 since january 2018 when only 11 million americans wither using the platform for those people a little too sleepily, that number is about 80 million now quite the big growth there. 800 numbers anybody would envy well see how that plays out thank you, very much back to the markets and your money. That rally we laid out driving new highs, growth sensitive sectors, joining some big cap names finally leading the way all on cautious optimism more fed stimulus and unlikely hood of more lockdowns joining us, chief Investment Officer at ubs Global Wealth management mark, good morning much has been made about the feds impact however large it has been, you and your team at ubs think it can go even higher caller thank you, brian. I think thats right weve talked almost every month now since the crisis began it is true weve said, look, youve got to focus on the fed here. I think the question investors are asking is, okay, what has changed that you can still be optimistic since the feds largest action took place six months ago what we had focused on is look at the 10year yield despite the pact that the markets have been rallying since chairman powell spoke, the 10year remains very low and the markets continue to rally. We think that shows that the markets are starting to believe that the fed is going to hold states down even if inflation creeps up or asset prices move higher and that story isnt over yet. When do you think it will be over look, i thinks th thats a g question probably sometime when the inflation gets above the 2 target in a meaningful and sustained way. Based on what has happened since the financial crisis and the fact that we have not sustainably hit that 2 target, that could be some way off given that back drop, mark, given that the fed would be in play for a while, what do you see as the possibility down side risk to the market we laid out all these scenarios. They said a severely contested election might be his greatest down side risk, whats yours i think that that is certainly a down side risk the Politics Around not just the election but the need for passing the fiscal plan or the budget these are all things that can play into the near term picture. I think that to derail the larger story of what the fed is doing on the monetary side and directionally, the fact that whoever is elected that both sides have plans for infrastructure and other fiscal measures, you dont want to get too caught up around the election as you know, no matter what happens, there will be a president sworn in in january per the constitution where are you and your team finding value in this market 37th record high, 16th record high is there any part of the us equity market, mark, that still looks fairly or even under valued caller as you highlighted, some of the more cyclical things got a little boost yesterday as some of the news might be Getting Better i think, to the extent that trend about lower hospitalizations in the United States continued economic recovery, to the extent that that persists, we will look more towards the industrials, health care and Consumer Discretionary can also benefit from that recovery i think getting back to the points around the election, one of the things should the current poles continue in the direction that the democrats may pick up influence out on the other side of the election, we are continuing to find investors around the world even ones who just focus purely on their portfolios. Looking at the green recovery, sustainable vesting. They are saying, where is the money moving forwards . Is it more sustainable use of energy and other things . That is something our clients are really focused on. Sign of the times with exxonmobil that has been one way or another inside the dow, well before your and my times a please to get you back on. I look forward to our talks, mark thank you. Now to the developing story along the gulf coast tropical depression marco making land fall last night the storm that wasdo downgraded from a Tropical Storm to depression now all eyes on laura which is expected to become a major depression bill, love you buddy love talking to you but i know when i see you, its because a big storm is on the way. How big could laura get . This is our 2020 nightmare. We have the potential of a major hurricane land fall in the midst of a pandemic. Now it looks like a reality. Just got the new information let me give you that and show you what has changed the storm went over cuba and it is now over the warm gulf and it is trying to reorganize. Well have about 48 hours to intensify. How strong can it get over 48 hours will depend on the destruction and devastation on the texas coastline and louisiana. Should become a hurricane later today, possibly this afternoon looking at the new forecast. Thursday, 1 00 a. M roughly about the window for land fall. A little under 48 hours from now. Bringing it to a category 3 hurricane. That would be a devastating blow for the upper texas coastline and louisiana. Beaumont, port arthur, lake charles. This is oil country. Theyve already evacuated platforms and theyll have to shut down refineries after that, the storm moves north as a rain event across little rock, and kentucky. The european computer model, typically, the most reliable, this one takes the storm almost over the top of galveston and houston and beaumont you can see how serious a situation. We have a rapidly strengthening hurricane approaching land we have Mass Evacuations continuing today and tomorrow. Amazing we still have our maps available. 40 of u. S. Oil refinery is somewhere in that colored model there in the eye of the cone the yellow, the green, about 2 Million Barrels of Oil Production are off line right now. All of the off shore rigs, of course, youve got to get the women and men off those rigs people are expected to drive so much less because of the storm talk to us about the storm surge. I got an email from a Big Oil Company and their projections. Talking i talking ike and rita, twin storms as well given the rain from marco already, we could see a tidal surge of 11 to 15 feet from laura. This is the current predictions. Here is the land fall in the beaumont, port arthur area to the right of that, 7 to 11 storm surges ike went over the peninsula was a little more to the left towards galveston. That was a storm surge around 10 to 15 feet those wiped out houses and homes and even things on pillars got destroyed. This is a devastating surge. This is so vulnerable. It is all swampy well have water up the i 10 in the midst of covid and Everything Else going on, i feel for the people in this region. They are so stuff they keep getting punched in the gut. We always appreciate your context. We do appreciate it. By the way, with the refinery side here. Not a lot of news about which ones are shutting down they intend to shut down briefly. They have this figured out ea bit. Where the next amazon popup store could be heading on fifth avenue and the deadline looming on the california ban and bringing back the pumpkin spiced latte yes, it is only august no, not even close to thanksgiving starbucks says, we all need something to look rwd. Foar that and more after this im hector. Im a delivery Operations Manager in san diego, california. We were one of the first stations to pilot a fleet of electric vehicles. Were striving to deliver a package with zero emissions into the air. I feel really proud of the impact that has on the environment. We have two daughters and i want to do everything i can to protect the environment so hopefully they can have a great future. Welcome to campt 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. Pink slips may be coming to one Major Airline and the latest with uber and lyft and amazon would like to sell you some luxury goods frank is back with the details uber and lyft have until 5 0 pm pacific that would force them to reclassify drivers in california as employees. If they agree, a temporary stay grand gra granted by a judge last week will remain in place amazon will open up shops on the site as fashion show season kicks off in September Delta airlines plans to furlough 1,900 pilots unless they can come to an agreement with the union. They are prohibited from cutting jobs through september brian, back to you thank you on deck, we are going to get a construction reality check with one of new yorks most influential big contractors. How they are fairing and what jobs, if any, are headed back to drinboard. Stick around welcome back new york city talk about Home Building, construction in new york remains stuck there is fear about the health of the industry. The leading Company Responsible for big projects like microsoft fifth avenue and the new store in the city. Talking about better circumstances and talking about how good Residential Construction is doing. How is commercial construction doing . Thats a very good question thanks for having me back this morning. Since we last talked at the beginning, every project we had prepandemic, preshut down in march has resumed the scarey thing is that weve seen a massive drop off in the range of 75 to 80 . New opportunities out there, seeing how this plays out. How do you see this playing out and the talk of manhattans longterm future we look at our bag log of work and what we have been bringing in. You mentioned the facebook headquarters and bnp power new headquarters and a few data centers they are all existing clients. Weve probably handed out of this 800 million worth of work, which is on par with what we do. Thats a false sense of security we are watching closely. There is no new business this business has been worked on for two years. All it does is push out a big effect of this slow down weve seen it down a little on last year. What is really scarey is that 2032 is looking fairly bleak whatever it does to my organization, think about the man power in the streets that wont be working you say there is no new business we are entering almost month six of the pandemic induced lockdowns in new york city is there any indication business is starting to come back are people having the dialogues or is it pretty much nobody wants to commit to huge capital . I think thats it clients that had taken out a new loose, they have to move forward. All the projects are under construction what option do you have . To put a project on hold or redesign now would be a very expensive prospect it is a catch 22 nobody has the answers at the moment or knows if there is going to be a cure or you know, it has come a long way when we last talked, it was new. I dont think the impact was real now we are seeing the real impact of this three months after opening. Thats a lot of jobs in construction across new york youve seen construction in new york city just boom in the last number of years. So what are you doing . What does the industry do when it is looking so bleak a few years out . You know, brian, in the past, we did things like look at other locations. We have offices in chicago and l. A. We diversified and looked at different kinds of client based. Now, every single industry probably except one. We are seeing some positives in our Critical Systems work. The only thing well do is look at opportunities around the world in europe and in data centers around there it is something weve looked to do for years because of wear and tear on staff. Now it is something weve looked at very, very seriously riding this recession or depression out for . Do you think there could be a depression it looks like that maybe a commercial construction depression in new york city . How about that it has to look that way, brian. If we are looking at the backlog and how long it takes for jobs to mobilize and planning sometimes that takes two and three years. We have no activity now for a three to six month period and now another 6 to 12 months the Ripple Effect of that could be two or three or four years on the work it has to be wow we have just started to see the longer term Ripple Effects here. We appreciate you coming on. We know it is tough times. We are glad you have work and cash flow coming in now. Keep in touch. Best to you and your envietire team thank you, brian. Outside of that, apples incredible run continues outside of the stock split the stat on how much apple has gained in just a little over two weeks. You wont believe it or maybe you wl. Are back after this i keep working my way back to you, babe with a burning love inside yeah im working my way back to you, babe and the happiness that died i let it get away servicenow. The smarter way to workflow. 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. The rally rolls on stocks look to add another record setting session another alltime high. U. S. And china promising progress over the phase one trade deal the two sides coming together overnight amid continued tension. Big tech, big success, potentially creating a boom in some real estate market. If you thinking about buying a home out west, you got to hear it stay tuned here on cnbc. Welcome and good morning thanks for joining us on this tuesday morning. The big stock looks to roll on nasdaq and s p futures are solidly in the green not as much as yesterday but higher nonetheless getting the 16th record close of the year the nasdaq says i can top that, 37 highs there the old dow, now less than 1 away from break even on the year a little slower to catch up. Bigger, Slower Growth companies. We could hit that break even part today speaking of the dow, big changes coming late yesterday, s p 500 dow kicking three stocks out and bringing three new names in. First move since 2013. Biggest of that move, exxon mobil is out it has been in the dow average in one form or another since 1928 pfizer and raytheon are also out as of march 31 replacing them, salesforce. Com, am again and honeywell the big headline is exxon after 9 92 years out of the dow. A sign of the times. Apple stock split which took place last night means big tech will be more impactful on the dow. Big tech weighting goes 27 to 23 . These changes will go into effect before the market opens on monday, august 31 as of monday, the dow will have a new look speaking of apple, we have to look at that stocks incredible run hitting another record high yesterday. This could be the rbi but i think we have a better one in just 16 trading days, apple has gained market cap. Yesterday, that number stood below 360 billion making the market cap gain just this month, the 10th biggest publicly traded company in america by it self. Even more eye opening than that, that market cap gain in august was more than apple was worth as an entire company the day tim cook became ceo. In just 16 trading days, apple gained more value than the Previous Year since 2011 now time for the morning rbi or the rbe, random but expensive. If you think real estate is es spencive in seattle or san jose. Just wait. Not only is housing red hot but so are the stocks in the businesses in those cities those two markets, Silicon Valley and seattle are the best stock markets by far equal weighted baskets of the 12 Biggest Companies by Market Company in 40 metro areas. Look at these returns. So far this year, Silicon Valley stocks up an average of 26 , led by nvidia, apple, netflix and adobe. Seattle, average stock up 24 in 2020 amazon is on the list. So are zillow, tmobile and microsoft. Those gains are very good news for the employees of those companies. Probably really good news for Area Real Estate agents and could be bad news for anybody else trying to buy a home in those markets. Seattle, Silicon Valley taking off. Random but interesting to the markets, indicating even more today. On this, the u. S. And china potentially putting some differences aside to move that phase one trade deal forward we are learning that trade negotiations from u. S. And china did hold talks overnight about implementing the phase one trade agreement. We are hearing that discussion between lighthizer and mnuchin a statement from the white house says the two sides addressed matters including greater protection of Property Rights and agriculture access apple set to begin opening some Retail Stores in this country. The company will open a small number of stores in the coming week apple initially closed all stores in march and began reopening some in may to only open 120 of them asana has filed paperwork for a direct listing with plans to join the New York Stock Exchange one of the Fastest GrowingCloud Software companies, snowflake. Allowing companies to store and manage information on the cloud rather than data bases now to the Republican National convention. Party members offered a sweeping defense of the Trump Administration including its handling of the corona outbreak. Eamon with highlights from night one. A fired up and energetic beginning. Full of add oration and praise r President Trump and some barbs thrown the way of joe biden and some leaders potential options for 2024 one of those is nikki haley. Joe biden and the socialist left would be a disaster but President Trump is giving us a new economy. Before the chinese gave us the pandemic, President Trump brought our economy back he brought it back before and he will bring it back again brian, what youve got now are two parties setting the stakes about as high as they can be we heard the democrats say the president is a threat to democracy and the constitution last night we heard from the republicans that joe biden are a threat to western civilization itself both sides practicing the politics of catastrophe. It is an easy time to do that what can we expect today later in the week, well hear from President Trump him selself that will be the speech that frames up the republicans. Well hear more from the trump family members not a lot of policy here this is a more emotional and personal appear in an emotional year long day for you, we appreciate it. Lets take into all of this and the record breaking market, cnbc contributor, jeff, i know youve got a hit list of things to run through what do you make of these dow changes . Exxon out after 92 years salesforce, honeywell and am again are in 1928, hard to get your arms around that. When you see salesforce coming after exxon mobil, getting your arms around the fact that it is a Cloud SoftwareCompany Apple with the exposure. Big shakeup United Health group, unh this accurate reputation of the u. S. Economy i dont know the market, when we talk about the alltime highs, the market is in overdrive. We are 58 higher. Almost kissed 34. 50 overnight. In this action, this is momentum we are seeing a lot of folks chasing momentum here. Have we seen nothing yet . Is this the high or do you think there are more to come is. Theres more to come. I dont get political but here we are 10 weeks away from the election as long as the optimum for the market, well see that elevated. This is not a political statement. This is trading. Right now, it seems the stock market are being intacted due to policies staying in tact we had a guest on stay ig out of politics but planning on what is coming and planning for a contested election is there is there a way to put on some protection is there a way to maybe hedge yourself against the turmoil absolutely. If you have the opportunity to trade options, we have a lot of risk reversals buying the outside but financing that purchase by selling the call nonetheless, it could be easily obtained despite the fact, we have a political election, the overarching theme is the fed i know we are not going to be in jackson hole this week but the fed. It will be here in unlimited capacity now the s p 500 as well as the nasdaq 100 has become a safe haven. Global assets continue thats the bottom line our guests said the fed impact hadnt been felt you. Ubs thinks the market could go higher to continue coming in here by the way, yesterday, financials and energy led the market i cant remember the last time ive said that in years. Do you think theyll continue to do well . Is there other value there we talked about buying iez. When you see oil year to date, seeing financials at the moment. Good stuff there with a little bit of Election Protection as well whatever side of the market you are on, you are talking the markets. We appreciate it coming up, we are keeping a close eye on oil infrastructure. Texas Railroad Commissioner will tas us to talk the impact ifex wasnt dealing with enough already we are back after this announcer todays big number, 105 thats how much the price of lumber has jumped so far on 2020 on pace for its best year ever a surge of Home Building fuelled by the lowest Mortgage Rates on record has driven demand thats a heck of a stat. Lets hope money does grow on trees. If you are going to do a woodbased project speaking of your money, look at that markets could rise today dow futures are up 132 big changes coming for the dow and big storm coming to texas. More next. Welcome back we continue to follow a developing story on the gulf coast. Hau laura is expected to become a hurricane. 82 of off shore oil and gas in the gulf has been shut in due to the storms that means 1. 5 Million Barrels a day being taken off line joining us now, the commissioner of the Texas Railroad. When i asked you to come on, we didnt even know about these cuts ill ask you what you are hearing about oil and Gas Infrastructure and soon to be hurricane laura on its way caller there are a lot of shutdowns happening today. We are forecasting a category 3 right now. These models arent perfect but have gotten a lot more accurate. Long term, i dont think there will be an impact. Even though they are going to shut down temporarily as people are coming back after the hurricane comes through. Im optimistic of a major impact in the gulf. I was on the grouchnd for a week after hurricane harvey. Theyve kind of figured out a lot of safety and natural drainage was far more dramatic than i thought refineries are close slipped with me. What are you hearing they still running or shutting down they are still running and taking precautions you are right to think about the longterm issues of the oil prices and market. Sometimes these come in and park off the coast. Not really the winds, its the flooding sometimes refineries continue to operate. The problem is we cant get employees to the refineries. They are making preparations in beaumont, louisiana running with minimal staff and isolated units. The biggest thing to watch is what will the refinery be. As you know, refineries are a challenge. Margins have been slim and this additional challenge on our refining infrastructure is a thing to watch i remember being on interstate 45 in galveston where boats were going down the interstate exxonmobil out of the dow the first time and rig counts in texas. Lows despite a gain last week. What is the longterm future of oil and gas in texas the last three months have been some of the most stable prices weve seen in a long time hovering around 40 a barrel given the times we are in, that is interesting i will say what we are looking at is that well continue to be price challenged refining margins are slim. However, the thing a lot of people are missing, when you look down the road, especially gasoline globally is forecasted to go up, not only from where we are today but historic levels. There is not going to be enough oil and gas in the world to fuel demand so much capital in the market, im very bullish on oil when you talk two or three years down the road next year, you could see the high to next year. Because production keeps coming off line . Exactly it takes a lot of money to continue to produce new barrels of oil we are talking rig counts being so low when demand gets back to 100 a barrel and the world is producing only 95 Million Barrels at that point, youll see price hikes. Ryan sitton from Texas Railroad commission. We are glad you joind us here. Best to you and yours. Everybody stay safe. Well chat with you soon a lot going on im going to see you today on half time report im in for scott market up 137. Squawk a tndhe gang picking up coverage you say that customers make their own rules. Lets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g, everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad. Your wireless. Your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch and save up to 400 a year on your wireless bill. Plus, get 400 off when you buy the new Samsung Galaxy note20 ultra 5g. Good morning blue chip shakeup salesforce, am again, honeywell. Well tell you which stocks are getting the boot meantime, stocks set to jump and set to close above 3,400 for the first time earnings from best buy and more housing data plus, it is the republicans turn to drum up excitement well bring you highlights from last night tuesday, august 25, 2020 squawk box begins right now. Good morning, everybody. Im becky quick along with Andrew Ross Sorkin congratulations. You have once made it to the camera before joe has. This is true. The benefits of not having to commute. We should explain. Joe had some car troubl