Good morning im Frank Holland in for Brian Sullivan here is how your stocks are shaping up the dow is open, the s p up about three. Nasdaq implied open up about 35 points still on pace for the broader losing streak. Closing down more than 1 with amazon closing down two and a quarter percent. The russell 2000 up more than 3 since monday where its best Weekly Performance since august 8. Perhaps a rotation on the way. More on that coming up first, we have to check the stock of the week. Thats snowflake after the surge of trading on wednesday, the stock was down 26 yesterday and on track for more losses this morning that stock down about a percent and a half well continue to watch those shares checking action around the globe, matt taylor in singapore and karen tso in london. A fairly lack luster week in the markets. We did modest gains coming through. We did see weakness when it comes to australia or new zealand. It was a lateday rally ending up more than 2 . You were talking about the nasdaq session overnight for us yesterday. We were watching a number of big tech names to see weakness in japan, it was higher, we saw weakness in south korea. The markets in asia did very little we saw a flat performance in hong kong, japan and australia really helped by todays more than 2 pop. It was up 2. 4 watching those tiktok developments investors dont seem concerned the yuan up and Holding Steady now to europe in our london news room. Good morning. A very mixed picture on the maimer indices the ftse in the uk and the cac in france slightly weaker. The german stock market, the dax is up slightly things may close flat to weaker. European markets are buzzing with some banking consolidation. Finally some much needed change. The caixabank in spain has made an offer for bankia, 5. 1 billion that would affect spains biggest domestic banks they are talking cost and 770 Million Euros fully achieved by 2023 the rational right up front of the investor pack talking about the low profitability in the Banking Sector the shrinkage well see in the economies and the Tech Revolution and the need to invest in projects to bring them up to scratch. They are hoping the economies will give them a quarter of the domestic loans and the deposit market a mixed picture where they have gained on the back of the deal initially. Thank you. Turning now back to home President Trump laying down his time line for tiktok in the u. S. As the company puts more options on the table bertha is here with more good morning, frank it is quite a saga President Trump is expected to decide on tiktoks u. S. Fate in the next 24 to 36 hours according to sources in an effort to address ownership concerns, tiktoks parent bytedance intends to do an initial Public Offering in the u. S. With oracle and perhaps walmart owning less than 20 in the new company. Sources also tell cnbc the Treasury Department sent major revisions on the tiktok term sheet with bytedance fully agreeing to those provisions it is still unclear what changes were outlined. On the trail, President Trump announced 13 billion in new aid to farmers at a rally in wisconsin. A critical battleground where he is trailing in polls he did narrowly win in 2016. The president did not detail the new assistance and the agriculture Al Department would explain how that aid would be distributed. The last round of 19 million in april after authorization from congress in washington, averting a Government Shutdown as both sides remain at an impasse over a new round of Coronavirus Relief the house and treasury secretary agreed earlier to pass a shortterm spending bill to keep the government running when things expire on the 31st. The bill would keep the government funded until likely middecember these deadlines keep coming faster and faster. It will be quite a weekend to watch. You are absolutely right. Thank you. When we come back, a wild week for shares at dave and busters as it flirts with possible bankruptcy protection and facebook facing claims of allegedly using cameras against customers consent d stip the trip, how braces are turning virtual when we return only pay for what you need. Liberty. Liberty. Liberty. Liberty. At cdw we get youre always yeah. Im just not sure Office Drones were the way to do it. [ laughing ] drone voice lol. Our market share looks good, but. Drone voice where are the bagels . Well, cdw can help you modernize your company the right way, with a scalable infrastructure from hpe, making you more efficient and secure. Great. Oh. [ drones buzz angrily ] lets find a different room. For transformation that works, you need Hewlett Packard enterprise and it orchestration by cdw. People who get it. If i could, baby id how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with xfinity mobile. Welcome back lets get a check on stocks on the move with dave and busters it is actually rebounding on plunging numbers yesterday the language in an sec filing and report of 85 drop in Second Quarter revenue as many locations were closed. They have reached rent relief deals on several locations and shares up about 9. 5 ups plan to offer some buyouts to employees in nonmanageme nonmanagement roles today. It had about 87,000 management positions the end of last year facebook is being sued by users. The app appears to be accessing cameras when the app is not being used the suit filed by a user in new jersey claims the apps use is intentional and done on the purpose of gaining valuable user data back to the Broader Market on the week, small cap russell outperforming tech noining me now. Dan, good morning. Thank you for joining us small cap on track is this part of a broader rotation yes we are entering a period where the economy is looking like it will begin to reopen on a more persistent basis the russell 2000 benchmark is really starting to outperform relative to other equity asset classes. Since i was on with you last, the russell has moved up 2 . The movement to the weighted names is under way right now you see the russell as the reopening of the Economy Benchmark with materials and consumer names in there and having a bigger share. With work from home here to stay, even with a vaccine spending on phones and video games and e commerce expected to boom, wouldnt tech rebound with the small caps it is also a matter of valuation. That is much better between the russell. It talks so much about the cap weighted it has been more of a broadening out im starting to see. It coincides with the dollar beginning to weaken. Starting in july. That is where it is telling me Global Growth is accelerated as well. With china and the eurozone is improving as well. That will help industries and materials and also within the russell is a lot of good quality consumer names really Stock Selection is very important. If you look at any periods of time going back to the 1930s small cap tends to outperform. How big of a risk factor are those two things those are some what tail winds. Unemployed persons are going to get a 1,800 check in days as funds were diverted to help those people overall, just keeping dochbs going as some what of a stop gap while congress is trying to sort out a broader stimulus package if what happens if allocation definitely happens . That is definitely happening. That buys you time we need another stimulus bill. Well have to wrap up. Thank you for joining us back to the open u. S. Major making big changes for 2020 that didnt stop our own dom ch from getting access. Announcer todays big number, 22. 5 million the average options for stock according to global markets. Trading in the First Quarter was over a double what it was yea ar ago. Increased opportunity in apple and tesla. So youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. I keep working my way back to you, babe with a happiness that died i let it get away servicenow. The smarter way to workflow. To deliver your packages. And the peace of mind of knowing that important things like your prescriptions, and ballots, are on their way. Every day, all across america, well keep delivering for you. Welcome back to Worldwide Exchange. The pandemic has brought plenty of changes to health care. With telehealth and increasing the need to leading adoption of these services not just the doctor but extends to dentistry and orthodontists announcing a new partnership with 3m. Thank you for having me i dont want to oversimplify. You have a device that lets people take a video selfie of their mouth then sent to an orthodontist who can look at it and give care plans. That video will give an orthodontist the ability to do things they werent able to do before with what is going on in the pandemic where doctors and patients were not able to see. Patients were attempting to sends us things. Our device moves the lips and cheeks out of the way and uses your phone device to see all of the structures of the mouth. The reality is that we wanted to come to market with 3m to do so and bring it to patients as a Covid Initiative we have thousands of scopes on the way to doctors to get to patients hands at no cost during the pandemic. Beyond the pandemic, we are going to go to a subscriptionbased model but keeping the costs negligible looking at the video of your device a rubber cone you literally put into your mouth. I have to ask you, i know you are doing this in partnership with 3m. This grin scope, do you see people continuing to use a device like this even after the pandemic we know telemedicine and Health Monitoring will take off continuing but it seems like dentistry and orthodontist is something you want to go to the office for that is an interesting question consumers are looking for a more convenient and Cost Effective option in an effort to give consumers these lower cost options there are so many touch point businesses where they have to be involved bringing true telehealth to the consumer is the hybrid approach. Certain visits, you need to be in my chair so i can do something. Being in the community today, there is a High Percentage of visits we can treat remotely given the proper controls to do so given the in touch visits, now we are bringing the patients the convenience and the lower cost they are looking for in such a way that the local orthodontists in the care group. You are an orthodontist practicing your device connects to smartphones. How do you see smartphones impacting your practice Going Forward as we see apple and companies tip toeing into medical devices. Absolutely. Even though the scope itself we are trying to keep as simple as possible the magic is really in the software enabling us in the devices to be able to capture now the video beyond this to give them more information than they would get visually by looking at the patient in the chair where all of this was going. This does work beyond other dontics. Imagine a time where you have a device once a month that properties you to take a quick 40 second scan we are able to capture things that are going on in your mouth. Right there able to make an appointment with the dentist before the small thing becomes a bigger problem probably the best interaction ive ever had with a dentist thank you, very much. Lets get a check of other headlines with philip mena with the latest good to see you good morning on the west coast, the battle against those Deadly Wildfires conditions progress has been made a fire burning for weeks in los angeles has caused more set backs for firefighters exploding in size and triggering new evacuation alerts. Smoeg levels are off the charts. Theyve exceeded the air quality index. A federal judge has blocked controversial changes to the Postal Service that slowed down mail delivery nationwide siding with 14 states in the socalled leave behind policy. That trucks will leave on time they called it a motivated attack on the usps ahead of the election the board called that motion completely without merit a dad in ohio has found a creative way to keep trick or treaters safe making a candy chute. He said he had wanted to make it easier for people in wheelchairs and those pushing strollers. One of the best thing is that, you cant fit an apple or fruit down there it is really creepy it is packaged or nothing. Thats why they created trick or treat. When we come back, why investors may be watching apple again after the product unveil it is not just snowflake a Software Startup that would llep this ipo russia live and we xfinity is your home for the return of live sports. Futures are flat closing on another wild week. Goldman sachs the latest firm to find employees testing positive as folks return to the office. U. S. Open and names on the leaderboard. You are watching Worldwide Exchange on cnbc. Welcome back on this friday morning here is how your stock futures are looking at the 5 00 hour the dow off its first down day implied to open up higher. The s p 500 and the nasdaq looking to open higher as well looking to pop about 58 points at the open. Both are looking to snap a twoweek losing streak the broader s p and nasdaq looking stronger today coming off kind of a rough session up more than 3 . Down about half a percent. Looking at snowflake, stock down now more than half a percent well continue to monitor those shares to other corporate headlines, bertha is back with this good morning good morning. Tencent drewing scrutiny from the u. S. Firms are reportedly being asked to turnover u. S. Gaming information. They have a 40 stake in fortnite game maker epic Goldman Sachs has reported two workers tested positive. They work on different floors and believe the exposure happened outside its office. Days after jp morgan confirmed a worker both firms preparing to bring more people back to the office video game developer unity to begin trading after pricing its ipo at 50 a share above the expected range value of the company at 13. 7 billion. Unity wraps up one of the busiest weeks for ipos this year and in a long time highlighted by the snowflake wednesday debut. Does mean we dont need people in a physical place to make things happen. Absolutely. The cloud is making things happen back to the markets with a selloff. Looking at the nasdaq futures. Up about half a perfect after yesterdays 1 selloff next guest says 10,900 is the important level to watch the director of services and contributor. Thank you for joining us thank you for having me you see the support level closed just above that yesterday. What happens if it falls below that i think thats where it could get a little ugly. It just represents the sentiment saying is what jay powell said enough to keep this game going where the dollar is weak and stocks are strong the decision will be if it breaks below there. You look and the level of the dollar is 9,200. Yesterday, the dollar spiked too. He was playing dovish. There are only certain amount of ways you can play in if it falls below that mark, what does that say about the broader economy . Youve mentioned that the russell has done okay too. Id like to say the rotation trade going on too the nasdaq is falling, the russell is falling amazon and others leading. Selling can bee get selling and then there is a little bit of a panic. Right now, it is okay. People can convince themselves this is the opposite of the work from home trade. Are you convinced that is happening . I am so far we talk about this the fundamental story is the same thing the fed is ultradovish the government is willing to throw money at this problem too. The rest of the World Central Bank is dovish the stock market is the best place to be on the globe youd have to trim the hedges a little bit you have to have that. Until that level breaks, im going to close my eyes and remain bullish it is not just the nasdaq falling, it is the dollar. What does that mean for the overall market but especially for those sectors outside of tech you take the dollar and you see it is the opposite trade everything traded in the last six months is predicated on val or weakness. Yesterday, it looked like the dollar is going to break from the upside there is a lot that isnt really keen on that when that reverse and the dollar got weaker thats what the stock market seems to want more, right now, the dollar is complying. We heard fed chair powell very dovish, is that already priced in. Yes for sure we know they are all in. It is the right thing to do to be all in. When he talks inflation, he sounds so frustrated. The worry is that they stick around longer than they should we havent talked about that but it is possible it is about 5 30 on the east coast. If you want to close your eyes now, go for it thank you a new hot commodity in town, toys not really new but a new part of our world and part of the work from home life is keeping your kids engaged. One manufacturer is doing well with that. Opening a plant and hiring 250 employees to keep up with the spike theyve seen joining me now with a Worldwide Exchange exclusive is step two ceo. I dont have kids but my friends with kids say your products are a staple. How big is demand. We know it is going to ramp up for the holiday . Do you expect to see demand stay ramped up past that point . We saw demand in the spring when people realized they needed to keep their kids occupied and engaged in uj tethered play. Our products have increased in demand can you give us a number . A lot of people have been stuck not stuck but at home with their kids. Sure. Within step 2 discovery. We are the largest children large format toy maker, play set and perg law and pavilion maker. We hit on two key places play sets and large format toys. That demand has gone up as parents seek to keep their kids entertained in their backyard. Weve enjoyed 26 growth so far this year as a result of hitting on two strong sicylanders. Weve seen your toys are analog not tech toys. You have a deal with hot wheels and they require a lot of imagination. How do you see tech impacting the demand i think weve seen some permanent shifts here as a result of covid. Clearly parents are looking for more toys and activities to get kids out of the house using imagination. We like to say imagine what they will imagine these have really brought families together. During the pandemic, families are looking for a creation of an oasis, safe, untethered play if one of those hot wheels tracks lands here at cnbc, im not going to fight it. Thank you coming up, stocks to watch as we head to break, other top stories. The fed laying out other hypothetical perceptions this will be the biggest stress test of the year theyll continue to back dividend payments. Terms were not disclosed this is the latest move to raise cash increasing a tentative move the airline plans to reduce the amount of furloughs to just more ayan 1,700 st tuned to Worldwide Exchange here on cnbc the samsung is available today. The original fold phone was delayed after reviewers pointed out issues with that foldable display. Turning now to sports news like a lot of other things things are different on the course dom is excited hes with us to talk about it. The first of six major championships. Covid has seen major changes recently, i had the chance to sit down with mike davis and the president of the Nbc Sports Group about this iconic tournament and the challenges of playing during this pandemic and why they felt it was important to play the tournament this year especially in new york it is so important for the state of new york to crown a u. S. Open champion and we want to do it in really what was the epicenter, the hotbed here it is a good sign for new york, for west chester county. For us, we hope we do our part in inspiring golf but people thinking about some of the things not so pleasant we are all dealing with on a daytoday basis. Telling me the Golf Participation rate is seeing incredibly up tick one of the more socially distanced sports out there translating to tv as well. People cant seem to get enough live sports and golf is benefitting. People are just consuming sports at an alltime high we feel we have an obligation to bring these assuming they continue to be played into peoples homes around the country to help them get through this crying time sports is a comfortable escape thing for people we have Dustin Johnson coming off his fedex win. Rory mcilroy back after having his first child. More money bet on tiger woods to win the tournament than has been bet on any golfer at william hill sports book and Phil Mickleson has attracted the single biggest bet i will be watching on multiple screens this weekend i know you will i have to ask you, is the u. S. Open the most difficult test in golf the more difficult scoring than in any other events in the golfing world because the winning score was plus seven a former usga head who passed away had a famous line talking about that 74 winged foot u. S. Open saying the intent was not to humiliate but to identify them so that gives you some context there. Sort of like if it doesnt kill you, it will make you stronger how does Video Service peacock see coverage there will be exclusive contents and a dedicated channel on peacock there are times yesterday and today where you can see the live coverage as well for golf, it has been fantastic. For viewers and fans and anybody who watched the amateur championship, they know you can put on a great streaming product and it adds the whole idea to having a tv there and streaming available. It is a lot of ways to watch sports sports is so key right now so good to see sports back i totally agree with you news and sports, just watch it live. I agree. Starting today at 4 30 pm eastern, dom and i will be watching well talk individual transportation stocks and what theyll tell us about the broader economy next watch us live tonhe cnbc app. Well be back in a moment. Welcome back one off mentioned sector, transports this week leading the gains is fedex. After a stellar earnings week. The stock closed at roughly a sevenyear low more than doubled its value from more than 90 to todays 245. Fedex accounting for more than 20 of its gains since march 16. Joining me now, top ranked analyst is there more room for fedex and transports to run from here we think there is you look at the growth, you are seeing a height increase in demand not only that for the first time, we are seeing airfreight carriers focus on pricing. That will lead to bottom line growth that is not only left in fedex but in transports as well. Given the level of inventories our survey is showing really alltime low levels creating core demand for transport seen right now. So transport is seen in business and would also rival others doing holiday surcharges how do you see this playing and also the performance of these companies . Weve been waiting for the companies to raise pricing given the level of demand theyve got for their product. This is the first time ups has put on surcharges, weve seen fedex add them on. Both carriers add in covid19 surcharges to add in the huge cost you are seeing starting from june 1. That really started the change in the shift of pricing demand that goes back a year agowhen fedex let amazon walk away because they were focused on pricing as opposed to volume we are seeing that affect the consumer confidence. Great comment about fedex basically divorcing amazon a lot of people thought that was a mistake. However, volume has really spiked a lot to say about that lower margin b to c. Are you surprised to see the Market Expansion i think thats the surprise to the street and why youve seen stocks the way they have. Weve seen more pressure not only now with density helping them out with the volume you are having the fact that theyve been able to improve margins through the pandemic despite the huge growth of b to c has been a huge boom that they have turned the corner with the investment of automation that roll out that has turned to tail winds over the next couple of years the boost in e commerce is great. Fedex expands beyond that. Trucking and trail what do you see this doing for rail and showing signs of life in the last few weeks, especially when it comes to container shipping you nailed it there the growth of interpreter modal. We are seeing such an incredible demand for the product so whether it spills out from airfreight and trucks, we are seeing a huge price increase bleeding into intermodal with the rail weve seen that go down 26 . That Growth Continues to improve each week. Certainly that has led that charge we are turning significantly positive because of that replenishment. That will happen once core underlying demand comes back and if we start to see a vaccine move whether in a couple of months ahead of the election and the new year if that starts to compound on the peak season. So intermodal is spilling over from the trucking market because of the replenishment will boost instead of hurting the underlying rail. Almost a given transfers will do well the rest of the year because of holiday and e commerce for 2020, what do you see in the forecast excuse, 2021 a core underlying question. Do we now comp against that huge b to c growth since covid. Weve pulled forward three years in growth because we are getting people used to ordering to the home we feel theyll hit that package target their chief marketing officer said they are going to use volumes now not turn negative against these. I go the to cut you off there. I could cover this all day that does fitor us here on Worldwide Exchange. Squawk box is coming up next i keep working my way back to you, babe with a happiness that died i let it get away servicenow. The smarter way to workflow. Xfinity is your home for the return of live sports. Good morning stocks relatively calm after a wild session on wall street. Well dig into the tech slide and this weeks ipo straight ahead. And tiktok, well learn more about the companys plan for survival as we wait on President Trumps deal and the stimulus stand still that wont include another round of Coronavirus Relief. It is friday, september 18, 2020 squawk box begins now. Good morning just the two of us im Andrew Ross Sorkin along with joe kernen, becky is off. Nice to see you, my friend still working on it me and you right it is us that guy over there this is the bluest shirt. I got to get some darker shirts. You know what this is blue. Thats
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