Transcripts For CNBC Squawk Box 20240712

This comes after modest advances you did see gains. The second out of the last three sessions as joe mentioned it has been a rough week we are on track now if we continue on this pace to have the first down month weve seen since march. Looking at all the gains theyve built up on all of this. You are looking at fairly solid gains. It is a matter of days before we get to the end of the quarter. Take a look at the treasury yields now, especially the 10year. 0. 661 hasnt budged. Weve been sitting at these levels for some time weve got developing news right now. President trump asking a u. S. Court to let a ban on the tencent app wechat proceed the judge is giving the president to 2 30 this afternoon to postpone a ban on tiktok downloads. It doesnt pause the ban but says they must defend the policy in a sunday court hearing. The policy is currently set for 11 59 p. M. This sunday so a lot going on with the kvdel saga it was 11 59 last week too. What happens if you cant download it . Did you wait up no. Becky, what were you saying if you cant download it if you downloaded it to your phone and lose it or break it, does that mean you cant redownload it to your new phone or get an update is. Correct no updates the second eventually, it would eventually go away if you had it, you could use it. To the extend you dont break your phone, lose your phone, need to update or doesnt freeze or need to overhaul. For the black market for teenagers who rely on these things like a phone that hasnt broken and has it on it, you could sell that for a lot more lip sncing and dancing. I dont have it i never used it. I do know some teenagers who will be willing to pay top dollar to get a phone back that had it they spend a lot of time on it kind of like betting for me when i cant do it it does make things a bit interesting. On a losing streak getting the teams right. Not the total numbers right. Maybe i should stop doing that yeah, hello had the dolphins they picked by six just pick the teams horrible. I had the right team in the nba and they were over i wanted them to be under. Frustrating. This is easy to understand i figured it out House Democrats are proposing a smaller stimulus package a trillion less than the last proposal but a trillion more than what republicans are ready to do. Even more than that more but roughly. Sources tell us the 2. 4 trillion package would ininclude enhanced unemployment, Small Business and airlines. The price tag is still a trillion more than the republicans would like to offer. I thought the skin ji bill was 700 or 800 billion. In congress, a lot of rounding going on. You are just talking a couple hundred billion. Why not round that around. Not like we really have to pay that or anything is it . The idea that it looks like they are getting closer together but not really we are still talking a massive difference mnuchin said yesterday they are ready to restart talks but didnt give a time table i dont see how this happens before the election, i just dont. Probably not. It is weird. You saw goldman sachs. They went from six to three based on not having more prospects for the stimulus i can tell you the election will be over. Theyd like more than 6 well get that flash number for Third Quarter which should be 20 plus, like two weeks before or a week and a half before the election youll hear how great that is. The biggest ever well talk to phil about that. His estimate is 23. 5 that will be in contrast to earnings which will be down still. In his view, 32 before, it was expected at 40 a lot of companies will end up beating where the estimates are with much lower numbers. Phil is coming up. We heard from brian yesterday who said you shoild have additional aid but it should be targeted the democrats in this latest thing still have payments going directly to people across the board. President trump said that is something hed be interested in. It makes a lot of sense and something you would probably hear from most republicans with a smaller package. The idea of sending a check to everybody, regardless whether youve been impacted, we are past the time doing Something Like that. You feed to get it to businesses and the people suffering the most right now yes agreed President Trump signed a series of executive orders aimed at protecting people with preexisting conditions and looking for a way to prevent surprised medical bills. The goal is to ensure americans are protected whether the care act is ruled unconstitutional. Set to take place in november. Working with congress to pass legislation against surprise medical bills. Health care stocks have been under pressure after the death of Justice Ginsburg an uncertainty how her replacement could rule on Health Care Issues meantime, palantir shares could debut at 10 a pierce. Anticipates Revenue Growth to roughly 1. 1 billion it has never made a profit this is going to be the story. You never know what the story of the week next week is but in ipo land, this is the story of the ipos even though it is not an ipo. Sort of. Exactly. You are splitting hairs at that point. Of the offerings that take place next week, this is it. Should be exciting. Palantir, so sexy to a lot of people coming up, a tough week for the dow. The first down month since march. Down 3 . Phil orlando will tell us what is working next. Well get ready for delivering alpha next week. Back for a 10th year with a special guest. Visit delivering alpha. Com i cant believe how quickly these things come. It seems like we just did last years. Learn more and register. Things have worsened a little for the dow nasdaq indicated down 27 s p down nine or so. For an idea of whats happening and working in the markets for what to do, we are joined by phil orlando and i dont know what it has to do about ties you dont even have one on last month, you saw things get overheated and watched things go from average weight to neutral you made a switch. You think things are working and you are sticking with it a tremendous run in large view by the Technology Stocks you look at those trading all 50, 60 times earnings. You have a lot of these other sectors, domestic large cap value. Small cap stocks, International Stocks where we are trading back in the teens we really thought the overall market had probably gone a little too far too fast. Largely driven by the tech stocks, the faang, et cetera dialing that back and reemphasizing the neutral and some of these areas were cheaper to spread the risk out better. You felt the catalyst to get the underperformers going. The role in the Third Quarter will be a lot better than the Second Quarter once investors got a sense of that, we felt wed be able to play a little catch up with those laggards the catch up to this, it is a deeper recession than we are seeing in a long time and probably the quickest rebound in the economy and the stock market that is totally justifies the move we have seen in stocks. Still going. I know you have a feeling about Third Quarter gdp. There is a lot about the Third Quarter. There is a lot of hammering the reality is that the equity market has been a forward looking discounting mechanism of what will happen six to nine months in the future no question you suffered a water fall decline in march and april from an economic standpoint across the board housing, auto, manufacturing as we look out to what those numbers look like as of next year and price that back in to where we are now, there is justification of the rally that market went a little too far. In our view, a Risk Management and appears to work. Something working was clearly over the second face of the market ready to kick in and clear out it might be true. Trying to make a bottom already. If we could know that, that would be a second wave fears, election and all that stuff. If we knew we were near the bottom, it could give some confidence exactly we think this is have goodiing o be very ugly, contested election that may not get settled until middecember the last time we saw that was in 2000 the s p 500 dropped 10 or 15 . Down 10. 5 here over three weeks or so. That market ripping the page pricing in uncertainty to the election phil, ive been looking at that shot. I get a little bit distracted. I was listening but trying to see all the stuff behind you you know what they do in a slasher film, they take a shot of you, we go away and come back and there is one missing and you know that person there lurking behind that countriy on the lef. Hes got that knife now. It didnt happen to you. I think im the only one awake in the house the likelihood of that is low. You dont have a dog. Remember that geigo commercial where they are like, lets hide behind these chain saws do you see them i didnt but it is so weird you bring this up. Yesterday, i noticed two of my knives were missing when i was doing dishes im looking around thinking what the heck am i standing in a horror movie somebody took them to open boxes. I hope. Thats true thats why the geiko commercial is so funny. Even the guy, the killer hears them and just shakes his head. Lets not take that cars that running out there. You cant do that when we come back, we are going to give you new data on where americas youngest consumers are spending money the biggest premarket movers in the s p 500. Bristolmyers getting a boost after reports of positive tria who is usaa made for . Its made for this guy on immune ootherapy we are right back. Shes serving now we made it for all branches and all ranks whether they served one tour or made a career of it. We also made usaa for military spouses and their kids usaa is easy to work with and can save you money on auto, home and renters insurance. Become a member today. Get an insurance quote at usaa. Com quote usaa. What youre made of were made for. Todays executive edge more than half young genzers are living with their parents. 18 to 24yearold have been hit hardest by job losses. Unemployment was at 14 in august one in three has filed for unemployment in the last 30 days according to Research Firm cgk no wonder the percentage of young adults has swung to the highest level since the Great Depression over 61 of agagen zers were bak at home. Cities hit hard. Zillow estimates the rental market had over a billion decline. Without rent to pay, spending has recovered faster than for their parents generations what they are spending on, entertainment. One in three has upgraded their streaming service. College students who arent at home, most are still gathering with friends, doing it at home what they are spending it most on is food and booze at home, andrew before you go what about when social distancing ends, we can all hope or when we go back to some version of normal, what do you think theyll be spending money on then . There is good news there for retailer the top priority is spending ongoing out they want to buy on clothes, entertainment out. Going out to bars and restaurants and to live events all the things we cant do now, they are inching to do those and saving a lot more. Saving and investing theyll have a lot of dry powder those ones still working thank you well see what ultimately happens. More coming up on squawk box this morning we turn back those manuals about how to distribute a vaccine and how front line workers shouldnt be among the if irs to receive it that is next a look at yesterdays s p 500 winners and losers that was wonderful, bravo, i loved it pretty good wasnt bad d. Parts werent reelgally goo i didnt really like it it was bad. Awful. Boo. As business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. Good morning welcome back weve been watching u. S. Equity futures this friday morning. It looks like things are taking a legal leg down down by 20 down 35 points a half hour ago s p down 15 and nasdaq off by 45 it has been a rough week already for the markets. Major averages were up two of the last three sessions. Red arrows turning steeper 6 30 on a friday morning. The latest news for the race for the Covid Vaccine and how to distribute one when approved with us now, form rp Health Advisor under president obama. Former advisor to the Biden Campaign on vaccine recommendations. Thank you for joining us great to see you great to be here. I thought it was a bit of a counter intuitive idea when i first read it. Thinking when and if we do, thinking that front line workers would be the first in fact to get access you say not so fast. Well, it is the conventional wisdom it is what the National Academy has suggested and what other groups are moving towards approving. The real question is when you distribute the vaccine, what will bring down the morbidity Problems Health care workers and responders are at that high a risk of getting the vaccine or transmitting this era of ppe. I know at my institution and ive at many other, transmission has gone to zero there may be other sites where there is transmission like Nursing Homes or other personnel in the hospital. But i think we need to take a very careful look at who is at high risk of both having severe consequences and transmitting the virus. Weve learned a lot about how to transmit and that has changed practices. Id like to try to avoid politic sizing the vaccine it appears to be politicized in many ways. In terms of the credibility of whatever vaccine comes a member of the public or of your family, who would you be looking to to find out whether you would decide, you know what, ill take this im not going to be interpreting those results thats not my skill set. I am going to be relying on experts like everyone else in america. For me, the best experts to look at is the independent Advisory Committee at the fda that is going to oversee the vaccine approval made up of people that are not Government Employees by and large academics very, very respected people. Theyll look at the date you and make a recommendation. That is the group, the Advisory Committee overseeing the vaccine trials that i will put my stock in i think thats a very, very trustworthy group. I notice other groups have put together independent groups to also look at the data for various subcommittees. I think that will be my Gold Standard do you feel confident the fda is not being pressured by politics in this case . No. I dont think anyone can feel that we had thydroxychloroquine example. The con voeles enter plasma example. They have the job to keep americans safe there is a lot of political pressure and the agency is headed by a political appointee, we have to revev judgement on that what is your time line i had a fascinating conversation with a doctor saying even when a vaccine is available, that they would wear masks for some period of time. It isnt clear that just getting a vaccine unto itself would protect you. It depends on the effectiveness and whether it prevents transmission, not just reduces the intensity of the infection. That is an important question we wont know at the moment ive said sort of november 2021, is my touch stone. If you think of the vaccine at 75 effective. We need twothirds, roughly 220 Million People to get vaccinated just put out the time line of vaccine production, distribution and administration according to the offers of warp speed, well have roughly 300 million doses by the end of june 2021 thats a very optimistic view but lets say that works if you need two shots, thats 150 million americans. I think we are looking at the end of 2021 before we get up to the 220 million americans who need to be vaccinated. That means it is another 15 months from now at the earliest. In terms of some of the ethical implications, youve fought about the distribution of these, who do you think would be in charge . You need federal coordination there is no doubt about it the recent guidance again, when we look at the Trump Administration the main approach they had was to distribute responsibility to the states this is the case where theyve done the buying. The federal agency will be in the drivers seat ensuring each step of the way would be done right. Putting that in glasses and shipping that out. Tho easy are things only the federal government should do, not each individual state. We saw what chaos happened when each individual had to secure its own ppe or ventilators we need a coordinated response weve seen companies with a coordinated response do better given your involvement with obama care originally, trump signed that executive order protecting preexisting conditions as a way to try to prevent people from getting surprised many he had call bills. What did you think of that i dont want to be political here but it is a given the republicans have had 10 years and 6 months to pass a health care proform to offer a comprehensive bill to go against the Health Care Act and theyve failed over and over again this is a gimmick here to say, no, we are really serious. You might remember before the 2016 election, the president said we have this plan to keep drug prices down where has that gone . These gimmicks to try to address concerns the public has about their health care, their Election Year announcements without any real teeth you are suggesting this would not be effective im suggesting this is not an alternative to a comprehensive plan that actually addresses the publics concern we have a lot of concerns. One is the uninsured rate is actually going up. It was going up each year on president President Trump. People being laid off and losing their employ year sponsored insurance. That requires a serious exclusion. It doesnt require an executive order of one thing carved out that is popular in the polls thank you good to see you. Thank you for having me be well, we safe thank you comeling up, the biggest market catalyst and what to watch well talk to ftc commissioner on the push to diversity in company franchises you can watch or listen to the totally a political cnbc app any time well be right back. Good morning, mr. Sun. Good morning, blair. [ chuckles ] whoo. Im gonna grow big and strong. Yes, you are. Im gonna get this place all clean. Ill give you a hand. And im gonna put lisa on crutches wait, what . Said shes gonna need crutches. She fell pretty hard. You might want to clean that up, girl. Excuse us. When owning a Small Business gets real, progressive helps protect what you built with customizable coverage. And im gonna eh, eh, eh. Donny, no. Oh. And im gonna eh, eh, eh. When disaster strikes to one, we all get together and support each other. Thats the nature of humanity. No one thought that they were going to do this before it happened, and everyone just did it. I think thats the way that human nature should be looked at. But a resilient business you cacan be ready for it. Re. A Digital Foundation from vmware helps you redefine whats possible. Now. From the hospital shifting to remote patient care in just 48 hours. To the university moving hundreds of apps quickly to the cloud. Or the City Government Going Digital to keep Critical Services running. You are creating the future on the fly. And we are helping you do it. Vmware. Realize whats possible. Good morning welcome back we are watching what is happening with the markets it looks like u. S. Equities are under pressure this has picked up dow futures indicated down 127 points s p off by 14, nasdaq down by 41 these are red arrows extending a weak week for the markets. Lets tell you more about some stories now. Amazon announcing new products during a hard wear event a new ring Security Camera fixed on top of a flying drone meant to fly through your house when you are not there and record the footage. Users can determine the flight path it locks into a dock when charging starts with a price tag of 250. This is like the ultimate spy cam making sure you know what is happening through our house when you are not there. You could be checking in on kids and guests in your house could be creepy. Just because you are paranoid doesnt people arent out to get you. That seems overkill. Like an adt system i dont need to check. If you really took it to craziness, before you come home, every time, you go, okay, did you go down in the basement. Check the closet. Or a dog might work. Thats crazy phil orlando could have had that i could see a lot of use cases for this a lot. Security. If you have a second home or something. Other things. Nanniecam. We have an apartment in new york city and im not there right this minute. Id like to go look at the mail or see if the lock is broken i could see a lot of things. If you are traveling and you want to make sure something happened or didnt happen at home i dont think you are going to check the kids or others with that how are you going to check the mail the video we were looking at, they showed it scaring an intruder out the door. Did you see the end of that. Hes scared of the drone is gonna get me that would startle you if you if were an intruder. Whenever i see a drone, dont you wonder what drones are doing when you see them . Ive been out at a restaurant outside. I see a drone and it is hovering and im like, i hope thats not for me no reason to believe it was. They are unsettling. That is a weird thing. Flying around your house for 250 a year, i think it is creepy. Ill get it and test it out three new York City Transit workers are off the job after authorities find a secret man cave under Grand Central station. The space outfitted with refrigerator, futon, air mattress this was an interior room behind a locked door beneath track 114. They found personal property and receipts and a wireman, carpenter, foreman they are suspended without pay interesting story. It kicks off an entire plan to map out they dont even know where all the rooms are. They are starting a project where they map out and know where all the rooms are. Wouldnt it be nice to hang out and have your eastern man cave couch and remote control. I have thought about it. We dont need a lot. We really dont. Cable. Wifi. Men anyway, when we come back, President Trump is expected to unveil his choice for Ruth Bader Ginsburgs open seat more about how that could impact your in ve your in investments. Thats next. Announcer dont forget to subscribe to our podcast look for us on apple podcasts or your favorite podcast app. Subscribe today. But explore new terrain. Helping you fill portfolio gaps. Connect to client goals. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Our next guest says there is a catalyst rich environment through january 20th joining us is chris krueger. Chris, thats probably an understatement catalyst driven through january 20th there are so many things we know are on the horizon youve been ranked on Institutional Investors as their number two pick. I know youve been in that list for over a decade. In all the time that youve been watching this, how does this period in time kind of match up for investors . Great question. Great to be with you i mean, its sort of like repeal and replace plus the debt ceiling crisis all wrapped ashtd one period its unprecedented when you think of what was on the track for next week, the president ial debate, Airline Program expiring, final jobs report before the elections and now you layer in a Supreme Court fight and maybe, you know, a new push on phase 4 i think were up to an 11. We have watched the markets sell off some this month after reaching new highs would you tell investors to wait and see what happens through that time period do you think theres been enough of a pull back or do you just say, stay clear until you know whats happening there was a lot of investor anxiety around the elections and that was before the tragic passing of justice ginsberg. When you think about election night, november 3rd, i think, you know, unless its a biden blowout and florida is called for biden, which would basically eliminate any path to 270 votes for President Trump, youre probably not looking at election night, you could be looking at election week or election month. You have 11 weeks until the january 20th inauguration. The florida recount took over 30 days the only hard date you have is december 14th when the electors meet in the state capitals january 26th is when the congress meets to count the electoral votes and then obviously the election on january 20 between november 3rd and the 14th, theres not a lot of forcing catalyst on the election counts. What does that mean would you tell people to sell here would you tell them to buy here . Would you tell them to sit pat. It would given the election, the various comes comes, and that may not be until january. You know, i remember back in 2016 how quickly markets took off after the election where do you think the market is sitting at this point . Do you think its going to be a biden win . Do you think theres a chance for a trump win . Obviously bidens ahead in the polls. I wonder how the market is shaping up and if there surpri surprise. Given the amount of mail in ballots and the reality of voting in a pandemic having a lot ever conviction on the election is a challenge. When you think about Election Outcomes though, too, havent mentioned this yet, but the senate is really the ultimate arbiter for policy next year what i mean is that the margin of the senate. If it is a biden win, if he doesnt have the senate, you know, that is an outcome i think that a lot of investors in equities would cheer because you dont have those tax increases that have spooked a lot of advisers, if he wins can a democrat of 54 where this is eliminated a lot of them in 2008 and youll likely have did you runoffs. A lot of uncertainty on the Senate Margin which is ultimately i think what is going to determine policy next year. Thanks for joining us today good talking to you. Andrew coming up when we return, futures getting worse this morning as we speak. In the red dow off by 201, nasdaq off 60. S p 500 looking to open off 22 points plus, well talk to Gary Vaynerchuk about what his firm is doing tapped by bytedance as the official marketer. You dont want to miss that conversation a gndet his insights in whats going on in this crazy soap opera. Back in a moment with a lot more economics . Algorithms . Magic . Turns out, its you. Doing your thing. Dreaming dreams. Building new worlds. Its why we built our workspace technology. To help you do your best work and to see what you can become. Youre made for bigger things. The dow on track for the largest weekly loss in three months what you need to watch could the tiktok ban be delayed . We will speak to the u. S. Marketing partner, the ceo of vayner media details straight ahead as the second hour of squawk box begins right now. Good morning and welcome to squawk box right here on cnbc on this friday morning im Andrew Ross Sorkin along with becky quick and joe kernen. Take a look at u. S. Equity futures this hour. It does look like were going to open this final day of the week in the red dow off 206. Nasdaq down 52 points and the s p 500 looking to open down about 23 points. Joe . Thanks, andrew. The markets held on to slight gains yesterday but are negative for the week the best performing index this week, the nasdaq, gaining a whopping 0. 4 . I dont know maybe thats better than being down 14 mike santoli joins us with more of this weeks choppy trading. Phil orlando, he says sentiment and other things kind of look like were searching for a bottom i dont know if its still feeling that way. A lot of things towards that point, fine, its over sold, people are fearful maybe not quite the fact pitch looking at the map here of year to date of the chart of the s p 500, one thing that comes out, how often weve been working and testing similar areas on this chart. I know youre talking more about that at the open, if we open right here, were again to the 23. 20 area we were there two months ago, we were there 3 and a half months ago. Thats how you started the year. Its how far you go back and that would create a proper reset. If you thought the market here and here was racing ahead, too far ahead of itself, needed to calm down, thats whats going on right here at minimum take a look at stocks versus bonds. One of the dynamics has been a rebalancing effect out of equities by Asset Allocation funds. Look at here, the outperformance versus the total bond market index which has done nothing in price terms. Right here you have a little bit less of a gap. 5 percentage outperformance quarter to date. A lot of this has worked its way through. That rebalancing out of equities might be through and maybe one component of the selling that might lift, guys were going to mike, thank you. Stay tuned. Maybe katie can help us, becky good time to have her on. Mike, stay here shes going to talk about some of the same themes you talked about here joining us is Katie Stockton i know youve been concerned about the way the Technology Stocks were showing leadership to the down side that seems to have abated a little bit what are you reading in the charts right now really, its as of this week that weve seen some relief for this large cap Technology Stocks i do think its promising. They did exhibit down side leadership in the early stages of the pull back which still does have a hold on the market in terms of short term down side momentum however, as mike mentioned, we have a very widespread short term over sold position now. Also weve seen for the first time during the pull back, extremes registered and sentiment. So that to me is getting us much closer to short term tradeable low. The tech stocks if they stabilize that should set a tone for the Broader Market youre not necessarily to the point where you would tell people to jump back in youre waiting for some other signals first . Thats right. Im looking for momentum to return waiting for the momentum gauges to flash by signals, if you will, and that to me is going to be the all clear signal for at least the intermediate turn up trend. We dont have that yet but what we have is support discovery were seeing in some cases at least successful tests of the monday low thats about 32. 30 for the s p 500. Were watching apple, microsoft, the likes to come in but as it stands, i think we can be reducing market hedges and cover some that have that position. Katie, is it somewhat positive with the benefit of behind site and if he were consolidating at what would consider positive levels based on everything weve been through. If were doing work sort of building a base or consolidating gains way above 3,000 on the s p, that sleems if that doesnt indeed happen. That would mean were not back at 25 or 2600. A skpleet slowdown in the global economy. Thats possible given something negative happening. That could put us back in the soup you dont see that happening. Not right now however, the win is that the market still is in a longterm up trend ahead of this pull back we saw widespread breakouts. They do tend to foster additional longterm momentum. Were not seeing any structural damage the pull back has only affected our short term gauges for the most part. Even the intermediate term gauges are still pointing higher we dont see any issues in terms of a prolonged corrective phase at this time listen, anything can happen. Were expecting it to be a little bit bumpier ride between now and year end, certainly than we saw from march through september. Were not looking for any major correction at this time. Mike, you look at not only some of the technical issues, some with the a washington strategist trying to deal with everything thats going to come between now, through the end of the election, through the debates in congress, whether we get Financial Aid or fiscal aid for coronavirus. How would you put that together . What would you be looking for . The market is ahead of that well be talking about it for weeks and several more weeks im not saying it all gets priced in because we dont know what were trying to price in. The general idea we might not have a dissolved conflict and a high conflict period of time, i think thats what the market is bracing for at the moment. I dont think its as easy saying, hey, get out of the market because it will be rough. The year 2000, no one thought we would have an election hung up for five weeks if you look back, there were a lot of other reasons why that was going down besides that brief period of uncertainty when we didnt know what was going to happen i wouldnt want to downplay that as a tremendous risk, psychological and otherwise, but i think the market is chewing through the implicationmplicati. Of all of the things that we talk about in 2000, things that affected the stock market, i dont remember that this year. Want to thank you both for being here its good to see you you, too. When we come back, coming up, kate rogers going to look at the diversity in the franchise industry whether it will speak to digital and gary vai ner chuck squawk box continues right after this my mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our financial futures. Find a stock basedtech. On your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Welcome back to squawk box. Nice shot of the capital franchising has a very diverse base of ownership. The most recent census data showing 30 of franchises are minority observwned and restaurs make up a lot of that. Whats the industry doing to fix that we are told restaurants are working to diversify franchisee chains mcdonalds says 30 of the u. S. Franchisees are from ethnically owned. Yum brands committed 100 million globally over the next 5 years, part of which will include creating pathways for employees who want to become entrepreneurs including franchisees. However, none breaks out ownership numbers. That coupled with a major franchisee lawsuit against mcdonalds alleging racial skrim nation means more focus is likely to come here we have rohit chopra. Thanks for having me. So first id just love to ask you, what steps, in your opinion, need to be taken here in order to increase equality of opportunity, particularly for minority groups to make up such a large portion of franchisees within the broader industry . One of the great ways that so many people can start a business without a lot of connections and capital is actually to get into franchising. So like you said, we do see a pretty disproportionate representation of minorities in franchising. Sat the same time theres very minority businesses that are trying to survive. They have been hit hard during the pandemic and many are concerned about the power that big franchisors have in order to dictate how they run their businesses so ultimately were going to need to look hard at that to make sure that everyone, no matter where they come from, how they started their business, or their race or ethnicity, can compete. You recently tweeted out that Small Businesses in america are facing extending shish whats the biggest threat now and what are regulators doing about it well, obviously Small Business credit is top of mind for so many Small Business owners i think theres lots of different threats. Many Small Businesses are trying to figure out how theyre going to compete with larger, private equity owners in this space. We see obviously many are facing challenges with some of these predatory Business Loans outside of ppp merchant cash advance programs that can set them up to fail. You recently called out both mcdonalds is facing a major franchisee lawsuit they deny the allegations. You talked about subway. Are there any companies that are doing a good job of extending opportunity, particularly to minority groups so they can grow their wealth in businesses i think, like you said, we dont actually have really good data on what owners are like in these companies. Its not just public companies, its private companies, too. Where i come from, we ultimately want to make sure theres a fair playing field, both for the franchisor and the franchisee. We dont want to see franchisors increase their ability to profit off of franchisee pain especially it has to be something that is symbiotic where both can grow and succeed together ultimately if franchisees are squeezed to the brink, we dont know enough, we want there to be more equity in Business Ownership in america we see franchisees and the franchise model as a vehicle for that, but its got to be fair and we have to make sure there are not any unfair practices. And to that point the ftc is currently reviewing the franchisee rule. Weve opened the room for comment. Im hoping we hear from a broad array who are interested in how we grow the economy for all and Small Businesses and franchises can thrive instead of the situation they face right now. Ultimately the core part of the franchise rule is really a disclosure for those who are seeking to open a franchise. Many of them feel it is complicated to navigate, but i think we need to look at the whole thing. Not just the disclosure, but also the underlying contract, agreement between franchisors and franchisees. We want to make sure its not too one sided and franchisors cant bully franchisees. So ultimately we have to look at the whole thing. I know state regulators are very interested we share the goal of making sure that these Small Businesses do well well, commissioner, we will leave it there thank you so much for joining us this morning thanks. Joe, back over to you all right, kate thanks coming up, the latest numbers on the governments mortgage Bailout Program coming up. Check outthe futures at this hour they were down more than 200 on the dow. The dow down 189 nasdaq not as bad really on a percentage basis, so well see squawk will be right back. Time now for todays aflac trivia question. This Insurance Company ceo started her career in the industry as a claims representative in 1988 who is she the answer when cnbcs squawk box continues aflac now tell me, what does aflac do . Aflac pays you money directly to help with unexpected medical bills. And is Aflac Health Insurance . No, but it can help with expenses Health Insurance doesnt cover thats right. Are there any questions . Coach yes . Can i get one of those cool blue blazers . You know i cant play favorites. Alright lets talk coverage. Its go time get help with expenses Health Insurance doesnt cover. Mmm hmm get to know us at aflac. Com im a sustainability science researcher at amazon. Climate change is the fight of our generation. The biggest obstacle right now is that were running out of time. Amazon now has a goal to be net zero carbon by 2040. We dont really know exactly how we are going to get there. Its going to be pretty hard. But one way or another were going to reduce our Carbon Footprint to net zero. I want my son to know that i tried my hardest to make things better for his generation. Now the answer to todays aflac trivia question. This Insurance Company ceo started her career in the industry as a claims representative in 1988 who is she the answer trisha griffith. Ceo of progressive insurance the latest weekly numbers on covid mortgage bailouts are out. Diana olick joins us good morning. Reporter good morning. More borrowers are now coming out of mortgage Bailout Programs the pace is improving. There are hurdles. 95,000 borrowers exited their mortgage forbearance programs in the past week. That brings the current total 3. 6 million homeowners thats 6. 8 of all active mortgages down from 7 the week before these plans allow borrowers to delay their monthly plan for up to three months and they can renew for up to a year those with fha and va loans are in the most trouble. 11 percent in forbearance. 5 of fannie and freddie loans, 7. 1 in bank and private the end of september though crucial to watch because just over 1 million borrower plans are set to expire from the latest threemonth term. Well see how many get extended. Of those in bailouts, 78 had their terms extended since march so still unable to get current on their payments. Back to you guys diana, just for clarity, when youre in one of these programs, does that mean youre not making any payments youre taking the payments that would be due and tacking them onto the end of the mortgage, the life of the mortgage it depends on the person. There are some people making some payments, some people making partial payments and some people making no payments at all. What happens is they can make up those payments either when they refinance the mortgage or when they sell the home for other programs that are not part of the government bailout, they can tack those onto the end of the loan. So were at six months right now. You can extend these being in these programs for up to a year. What happens six months from now when were at a year and a lot of those people will have been in the program for as long as they can be . Well, thats the big question do they extend it further . They cant have people not paying their mortgages forever, right . They either go into some kind of modification plan where they get a lower Interest Rate and maybe they can start making their payments again or at some point the house may have to be sold. Were hearing from investors that are getting ready to buy the homes. They are ready to buy up distressed homes and turn them into Single Family rentals because there is huge demand for housing right now. Diana, thank you. Okay when we come back, a lot more on squawk. The ceo of vayner media. Gary vaynerchuk is going to join us he signed a deal with bytedance to be tiktoks Marketing Partner in the u. S in the meantime, take a quick look at the futures this morning. The dow, nasdaq and s p 500 all looking to open lower. About 176 points off on the dow. S p 500 off 18 points. Back in a moment ts. Youre slouching again, ted. Expired, expired. Expired. Thanks, aunt bonnie. Its a lot of house. I hope you can keep it clean. At least geico makes bundling our home and Car Insurance easy. Which helps us save a lot of money oh, teddy. Did you get my friend request . Uh, ill have to check. doorbell ringing aunt jonis here for bundling made easy, go to geico. Com. Hello . Welcome back to squawk box. Another deadline approaching on that tiktok deal Julia Boorstin joins us now with more on that the never ending story, julia. Reporter it certainly seems never ending, andrew well, yesterday a federal judge told the Trump Administration that it has until 2 30 p. M. Eastern today to delay a ban on tiktokdown loads here in the u. S. That ban was set to go into effect sunday night. Now if the administration doesnt issue a delay or if china and the u. S. Dont sign off on the deal to sell stakes in the social Media Company to oracle and walmart, the wall street journal reports the judge will hold a hearing sunday morning to determine whether to grant tiktoks request and temporarily halt the ban on the app. This court order comes in response to tiktoks request for an injunction to stop the ban that was filed which sources close to the situation tells me the two sides are currently negotiating, particularly focused in on the National Security agreement that is essential to this deal and the expectation that im hearing from various sources is that the deadline will be delayed again if its not and if the app is, indeed, shut down, the company says it will have major impact on its operations. Interim tiktok head vanessa pappis said a ticktock ban, quote, irreversibly harms us by growing and developing content and retracting and retaining Business Partners and employees. A ban would cause the apps user base to stagnate and precipitously decline. So, andrew, the stakes are high. Back over to you when do you think well, in terms of just the various permutations with which this could go, what do you think were going to know monday or tuesday of next week what will we know the real question is what will we know sunday were likely to get a delay on the deadline, maybe not today before 2 30 but before sunday. It seems like tiktok will continue to operate until all of the details of this deal are ironed out remember, andrew, a lot centers on the fact that the president , the administration really wanted to seem like a u. S. Controlled deal and then you have bytedance on the other hand saying that bytedance will control 80 of the company and even though tiktok says it will be over 50 controlled here in the u. S so well see what happens. Julia, thank you. Theres so much to unpack here i know well talk, im sure, with you again we hope on monday when we find out what happens on the other side of this decision. In the meantime, i want to talk to our very special guest this morning, Gary Vaynerchuk founder and ceo of vayner media. Recently tapped by bytedance to be the u. S. Marketing partner of the company. Gary, great to see you so much to talk to you about even outside of tiktok on tiktok specifically, im curious if you can walk us through your thinking about getting on board with bytedance and with tiktok at a moment at which the president clearly and the administration clearly are claiming this company is a National Security threat well, the pitch started before all the brouhaha started and we were awarded the business story this time. Obviously like every other American Business in the world, well deal with whatever the rules are and so like you, your viewers and everybody else, were standing by. Right do you consider this company to be a National Security threat . Me personally, i dont, but maybe im not sitting on information that others are. But, no, i do not. In terms of the Competitive Landscape that tiktok now exists in and also the uncertainty around tiktok, youre seeing users who and influencers who have had a lot of success on tiktok either migrate some of their users or try to push people into instagram and other places what are you seeing in that regard and given that you now work for tiktok, what are you hoping to do to prevent that listen, you know, our small scope with tiktok at the vayner media level doesnt really impact what i am interested in in the scheme of business. What facebook, inc. , pinterest, all are platforms that all of our brands work on im not overly emotional i could care less if facebook, snap chak, linkedin, cnbc, the New York Times disappeared off the face of the earth. Im focusing on attention. Thats what our clients are focusing on. Where is the actual attention and how do we advertise on that platform as far as influencer in the world needs to divest and be on every single platform and create contextual content on each of the platforms. Whether its the government shutting it down or the consumers. If you put all of your eggs into my space, youre not doing so well today something ive been screaming about in my content for a decade if youre not creating across the board, youre losing its something brands are doing. Many are pot committed to a network on this when all of the attention is shifting to this. Gary, let me ask you a question then. Joe and i talked about it and becky and i occasionally talk about it as well, which is it feels like each of these platforms is for a different demographic and specifically tiktok is for a much younger demographic. I joke we should be doing lip sync battles and other things. I dont know if its on brand. You can send me the bill for this advice. What are businesses or brands or individuals who think that they, dare i say, feel a little bit older supposed to do on tiktok you know whats funny, if you look at whats happening on tiktok, were getting our advertisers trying to reach 35 to 45 going on the platform pretty aggressively because every platform gets much older to your point, dont deviate from what you know to your point, if you and i dance on that platform, i dont think were getting that many views. You need to stay in your pocket. You cant find a 24yearold on facebook today every one of them was on the platform eight years ago so it ebbs and flows and as tiktok gets older, an audience can emerge ive been putting out business content on the platform for day one. I think cnbc and i think your incredible show could dominate on tiktok if you put out information and just had the nuances of ticktock more than trying to become charlie camillio. Okay. You just won this beauty pageant. Were going to be hiring you to help with the Marketing Strategy for squawk. Interested. A personal question, a business question. I see you all over social media constantly i mean constantly. I always think to myself, how does he do it . And how many people does he have helping him . On the personal Gary Vaynerchuk accounts, how many people are on the team 15. I believe that 15 people 15 people i think over the next 15 years people will realize that a human that is using top of the funnel awareness to drive their Business Results are going to build out production capabilities for the attention grab this is something thats always been done. Right this is why ive been a fan of cnbc my whole life. I like business and Business People and types have come on, had shows, hosts, used that for other dynamics or to depth that. For me, it makes a lot of sense because it leads to all of my other business activities, whether its rese the restaurant app, or the empathy brand that i was on for that exit to be the sole business, very honestly, i dont need a 15 person team, i dont need a 1 person team if i didnt value awareness and branding so much. Right. Convert it into operational business gary, because you have so many people working on this team then, look, i do to the extent i tweet, i do it myself for the most part. Yeah. I mean, literally, if i press send, im the only one who can do that. How are things going out over your handle and youre like, i wish we didnt do that oh, no, 15 people creating content. I am the person pushing send i am the person replying thats why theres a team gary vee account. Production capabilities are on the back end but im the delivery mechanism no different than a writing team on late night. Its still going to be colbert or fallon delivering or executing. What that allows me to do my team sends me unlimited stuff. Im not posting that im writing the copy to context the video or picture okay. I want to pivot. Two other topics. Please. Three youre an investor in bitcoin. I want to talk to you about collectibles and sports cards because i know thats a big deal for you. Some people in the audience know im a big basketball card collector. I love it. I was i still value the collection what do you think is going on with crypto right now . To be frank, i hate to go on my own platform and this platform to pontificate. To your point, i invested years ago pretty passively to learn so im not up to date enough to really bring value on blockchain, i just really dont know, but i Pay Attention to the technology, the Underlying Technology because i think technology is what were dealing with for the next century. What about cards . Youre still a crazy card collector, right you know, i did as a kid. Its where i learned my supply and demand economics in the last three years the industry has exploded. For everyone whos watching do some homework on it. Vintage basketball cards is going through its andy warhol era. The supply and demand curves are clear and theres a lot of dynamics of kids watching. Sometimes people compare cards to crypto. Im like, no, no, this is very different. This is six time like any market to have an up tick this time around the modern business person is much more casual and culture oriented. The art collectors. I wanted to talk to you about the future of esports. Its not just the sporting thats going on, its concerts, its marge mellow and travis scott doing the concerts on these platforms. What does that look like in the future the vra world has a ton to go, that part. I think for the crowd thats watching right now, if youre a fortune 5000 ce oh cmo, if you continue to under estimate what the sponsor dollars mean and 30, 40yearold men all the way up to even 50, i think theres a lot of brands pouring money into the nhl, mlb which is completely lacking contemporary dna and are missing 25 on that dollar investment in esports. The esports investment is the real arbitrage. Gary, we have to run. I did get a question on twitter now. How much physical time in a given day do you think you spend on social media pressing send and actually engaging . Anywhere between 14 minutes because i have 15 hours of meetings i couldnt get out of to 3 to 4 hours if im traveling to my Singapore Office and the flight has wifi and i need that escapism dont forget, i use social to get consumer insights, which is what im completely built on and my companies are so im doing research while im engaging and putting out content. Thats an under stated aspect of being in the trenches of social. Do you understand what the humans in our world give a crap about. Gary vaynerchuk, always great to see you thank you for your perspective. Thank you take care. See ya. Thanks joe . Coming up, new jersey recently passing a millionaire tax . Robert frank joins us with that story. The first female story ever named to a major railroad. Katie farmer the incoming ceo of bnsf railroad. Well discuss the impact of the nations rail system and the path ahead squawk will be right back. T. Thats why we create moments to feel kohler clean, every day. [ engine rumbling ] [ beeping ] [ engine revs ] uh, you know theres a 30minute limit, right . Tell that to the rain. [ beeping ] for those who were born to ride, theres progressive. Welcome back democrats are preparing a smaller coronavirus package that will cut their proposal by 1 trillion the 2. 4 trillion package would include enhanced Unemployment Insurance, stimulus checks, Small Business loans and aid to airlines becky . Thanks, joe when we come back, after the passage of new jerseys millionaire tax, new york legislators are pushing hard to hike taxes on new yorks wealthy. Well talk about that after the break. Programming note, get ready for delivering alpha coming next week it is back for a tenth year with special guests including treasury secretary steven mnuchin. Morgan stanleys carla harris. Mary erdos, Chamath Palihapitiya and others you can visit to register. I felt like. I was just fighting an uphill battle in my career. So when i heard about the applied Digital Skills courses, im thinking i can become more marketable. You dont need to be a computer expert to be great at this. These are skills lots of people can learn. I feel hopeful about the future now. But a resilient business you cacan be ready for it. Re. A Digital Foundation from vmware helps you redefine whats possible. Now. From the hospital shifting to remote patient care in just 48 hours. To the university moving hundreds of apps quickly to the cloud. Or the City Government Going Digital to keep Critical Services running. You are creating the future on the fly. And we are helping you do it. Vmware. Realize whats possible. Xfinity is your home for the return of live sports. Futures still down not out there headed below more than 200 points and the nasdaq was quite a bit in terms of it being in the red earlier down about 17 right now. 17 or 18 the s p is down 13 new jersey recently, what . Oh, no recently passing a millionaires tax, becky and new york could be close behind robert frank has some data on whether new yorks high taxes are chasing the wealthy away theres a few things going on in new york city that makes it tough right now, i guess, robert this could even add to that. Yeah, absolutely, joe new jerseys tax hike on millionaires adding new fuel to the push in nine states now to raise taxes on the wealthy new jersey raised that top rate from 8. 97 to 10. 75 for those making a Million Dollars or more now taxpayers making over 5 million were already paying that rate, but the new threshold is estimated to raise 400 million this year. New York Lawmakers looking at a 15 billion short fall are pushing for new wealth taxes and rate hikes on high earners now one of those new york high earners, jamie dimon, saying hes okay paying more taxes but not a wealth tax im not against having higher taxes of the wealthy, but i think you should do that through your income as opposed to calculations to wealth which is extremely complicated, legalistic, bureaucratic, regulatory and people find a million ways around it Governor Cuomo opposing any tax hike saying the top earners would leave new york now the top 1 in new york pay 36 of the states taxes and in new york city they pay 46 of the taxes. Now the Citizens Budget Committee saying the population of millionaires looks out. The share of millionaires in new york has declined over that period guys, back to you. That simple, isnt it, robert if you can move somewhere, you might move we have people arguing that point though its like oh, no, no, no, no, people arent going to move based on that if they like it somewhere. Unless it was national if its national, youve got nowhere to go. Thanks, robert for more on states looking to raise taxes on the wealthy, lets bring in john hope bryant. Founder, chairman, ceo of operation hope john, do you think people move from one locale to another based on this . There is some evidence that they do and i think andrew cuomo has seen some of that happen in new york and a lot of times the weathers already nice down there. If theres much lower taxes in florida and you are able to do it, doesnt that cause a migration . First of all, good morning, joe. I think that if you want an example of folks fleeing because of not just taxes but i think the wrong environment, dont look no further than france where the word entrepreneur actually came from because they made the tax the wealthy the villain and supposedly, you know, had a right irresponsibly to take care of everybody else. Thats the wrong tone and the wrong message. If youre saying in new york and wetalk about the new jersey ta if you like, some of it is smart, we need a battle plan and we need all of us to lean in to the reinvention of our cities and our states, they can print money and they arent printing any. Its a temporary problem we need to reinvest in new york, reinvest in new jersey we need to not cut services to the poor, from the poor all the way up to landscaping outside of your town house and trash collection, which you want we need to promote things like apprenticeships, Small Business creation, things like that thats where your moneys going. Then i think people go, okay, im not hearing you pounding on me you have a shortterm problem. People are smart you need to help me gap it so we can invest and grow this not back but back better people stay. If you do that, they stay and double down. If they hear this is a pounding of the rich and the wealthy because, well, we hate you, people say like anybody else, you dont stay where youre not wanted so i think its a tone issue more than anything else. I think that the governor of new york is sending the right message on tone. I thought the new jersey tax in many ways, they got it at least half right. John, i think if we if taxpayers knew for sure that the money was going to go exactly where it was intended and if they if there wasnt a history of politicians just, you know, not following through on promises to do exactly what they said theyre going to do, then people wouldnt be so worried. We probably, you know, at some point need to worry about paying down some of the stuff weve already that never happens. We just find new ways to spend it if it was targeted to what you just described, i think people would feel a lot better. Is it possible to structure it that way can you be confident that murphy and the pauls yeah, politicians in new jersey will direct it where youre saying . Can we feel confident about that should i feel good i cant speak for those in new jersey it is one of the wealthiest states in america and theyve got a lot of gdp and theres no Research Force to suggest the wealthy are not moving out because they were taxing it at that 5 million higher clip so theyve done i think a decent job on tone there. What theyve done in the legislation smartly is said the deal were going to cut is if you are making 75,000 as an individual, 150,000 as a family, youre going to get 500, a cash rebate i believe it is if you have any kind of philanthropic or pay the try otic heart, youll see an 18,000, thats cheap philanthropy thats a real good deal. Thats going by those people who you pass by who getan extra 50 bucks to pay so youre seeing that in a targeted way my services at operation hope, were nongovernmental my supports gone up. The services have doubled. Me people needing our services have doubled. People are seeing a return on investment i think that my ideal politician has a republican head and a democratic heart and its a get it done party. It all needs to be much more business like, joe i think youll appreciate this folks need to be held accountable. Folks know theyre needed but dont know theyre wanted and you show theyre wanted also by being accountable to them for outcomes so i think that a new amar shall plan focus on Small Business creation, tax breaks for Small Business creation, tax breaks for the wealthy that offset tax increases if you do the following things, internships, apprenticeships, things that buck up the middle class and grow the economy or stabilize it i think people will rush to a place like that to double down, not rush for the gate. You think that would work in new york its a 15 billion problem what would you do if you could just control, you know, the Governors Office and the legislature . What would you do in new york city or new york. I would massively double down new yorks not a city, its a country. And youve got the smartest people on the planet yourself, becky, joe, others included, andrew, who understand markets, economies, investment and return you understand the cost, the tax and you understand an incentive. If you put incentives in place, again, i would do k through college on Financial Literacy. I do a Financial Literacy bond i say some of this money is going into a Financial Literacy bond i would do k through college education. Its clear that you make more money, create more revenue with the higher educated people are and less crimes and less problems i would do massive internships and a break for folks on Capital Gains and or their income tax if they personally invest through corporations through internships and apprentice ships at scale. I would do a range of i would do the state version of an earned income tax credit gets the average income tax up by giving folks a oneyear pop the 500 check sort of qualifies if we werent in the middle of covid. I would clarify, joe, this package is temporary this is temporary. We need a real plan in 2020 thats long term all right a lot of things weve just got to view as temporary, i think, john anyway, thank you. We appreciate it a lot of things for maybe cuomos watching maybe well see some of this put to action. We appreciate it thanks, john well see you soon andrew okay. Great conversation with john there. Coming up when we return, incoming bnsf railway incoming ceo katie farmer joins us straight ahead plus, were going to get you up to speed what to watch ahead of the open. Take a look at the biggest winners in the s p 500 this morning squawk returns right after this good morning stock futures making moves major averages on pace for their fourth straight weekly loss. That hasnt happened in more than a year. And a new twist in the tiktok saga u. S. Judge now says Trump Administration must delay a download ban or defend its case today. The pandemics impact on Critical Infrastructure and one of this countrys logistic call backbones. We have an interview with katie farm farmer the final hour of squawk box begins right now. Good morning and welcome to squawk box here on cnbc. That just sounds better than some of the other stuff in my ear. Mine. I was kind of letting that go for a while. Its a friday. Im joe kernen with becky quick and Andrew Ross Sorkin becky could points do some tiktok stuff because you were lip syncing. Thats your way of telling me lip sync, dont sing it. He told you dont dance, andrew, gary did he didnt really sugar coat that. Be yourself, man. But this is myself. Do not try on tiktok. Let some social media app grow to you do not try to go to the social media. He said that to you. Anyway, i was thinking, wow. I missed a lot of them people arent on facebook anymore. Thats true, because im not u. S. Equity futures at this hour are now down less than triple digits weve come down 200, down to maybe 92, 94 were going to talk to cramer later, i think you guys probably watch it hes like, this looks like its coming from europe, some of the weakness in our averages over there theyve got a different sitc maybe this isnt committed selling. Treasury yields. Treasury yields are where theyve been in a nutshell. Not that youd look. Story were watching. New tiktok downloads or else tell him why the ban should proceed. The judge has given the administration until 2 30 eastern time today to make a choice if enacted on sunday, it would prevent apple and the Google Stores app from preventing new tiktok downloads the Justice Department has asked the government to have an appeal the judge issued a preliminary injunction against the Administration Last weekend. Guys, real quick, one unique element about this whole debate about app stores, whether apple controls things too much or google controls things too much. One of the things youre already starting to see is the potential for tiktok to be downloaded through a what almost is called like a side car or a side app store in android you cant do this on an apple phone and then theres going to be new questions about what kind of security gets involved with that so lots of questions about whats going to happen here, becky. Andrew, thanks. Bnsf, the freight giant owned by Berkshire Hathaway has named a new ceo. Effective january 1st, she will become the first chief executive of a Major Railway company at the time when the industry is facing a lot of unpredictability because of the pandemic. Joining us is katie farmer, the incoming president and ceo of bnsf katie, i know youve been with the railroad for 28 years now, i think, and have worked just about everywhere there everywhere from marketing, finance, to operations and i just lost my ifp so im going to ask you this first question and im going to dial back in while im doing that i just wonder. I think you started out as an intern there, is that correct . I did i did. 20 years old i started out as an intern for bsnf or the former burlington northern. And as you i guess you were a pretty good intern, katie. Go on. And then how do you you know, every intern dreams, i think, of ending up in the top spot, but how much of the operations in the rail have you had, you know, a position with . I would imagine that most things that you need to be concerned with now youve had a capacity at the company in those areas. Yes ive been fortunate to work for the company for almost three decades and bnsf believes in development. We believe in offering people the opportunity to reach their full potential and as a part of that ive been fortunate enough to have roles both on a commercial side in our finance department as well as my previous role was chief operating officer and so ive been fortunate to see all of the parts of the railroad and get to work with the great men and women of this incredible company. Hey, katie. I know you worked for several years with carl ice whos in the job right now in terms of cost cutting. Whats your theory in terms of how youll be changing the railroad or what youll keep in place. Sure. Let me start by saying that carl ice has done an incredible job positioning us for the future and for bnsf to be successful well into the future in addition to that, i have been fortunate enough to be part of his Leadership Team for over a decade i would anticipate that we would continue to focus on our Business Model, to continue to guide this company through the different various economic cycles well continue to focus on good cost control and efficiency and most importantly, providing the kind of service that customers have come to expect from bnsf. Katie, warren buffet has been fascinated with railroads since he was a kid, but he looks at them as a great indicator of whats happening with the economy. Hes always kind of looked at the rail car loadings to try to get a sense of how things are going in this country. What do you see . Where do we stand from what youre seeing at the railroad . We, like warren, look at our rail car loadings every week to give you just a barometer of where we see rail car loadings, what that means to our railroad, we basically say that if were handling about 200,000 units a week, that that indicates were a busy railroad. To give you some perspective, back in 2018 we handled over 200,000 units a week 41 times that year. If you fast forward to 2020 this year and the impact of a pandemic, we havent hit 200,000 units on our railroad yet. In the depth of the pandemic our rail loadings were actually down to about 150,000 units a week. Now we have seen that continue to come back, and we anticipate this week well handle somewhere in the neighborhood of mid 195, 196,000 range. So we have seen the economy start to pick up relative to rail loadings. There have been some industry reports that suggest its really difficult to get a booking on a railroad if youre trying to move things from, lets say, the west coast ports anywhere in the midwest or vice versa. Theres a real shortage because of a crush of new volume coming into those ports well, we definitely have seen our Consumer Products business increase fairly rapidly over the last several weeks, and Consumer Products for us is a combination of our domestic intermodal, our International Intermodal and automotive intermodal is the business where we work with our steam ship lines, our trucking partners to bring either a 53 foot container or 40 foot container to us on the rail to load and it primarily is Consumer Products in those containers or trailers that go ton retailers. We have seen a significant increase in volt umass in the last couple of weeks and i think theres a couple of factors that are driving that. We continue to see the inventories that need to be replenished across the supply chain. Were working to fill Distribution Centers that have been depleted through the pandemic we have seen a tightening in over the Road Trucking capacity. In addition to that, something we were seeing prior to the pandemic but we have seen accelerated is the move from bricks and mortar retailing to Online Retailing we have seen a pretty significant increase in fact, if you look across our hubs and our terminals, we typically in a year where were preparing for the Holiday Season see what we call peak volumes. Those peak volumes happen typically in september, october time frame we have started to see peak level volumes across the system relative to domestic intermodal that are happening in the august and now september time frame which we think is a great thing because bnsf, as you know, becky, is the largest intermodal railroad in the world. We have the fastest network. We think this is a great opportunity that works well for one of our Core Competencies some of the reports ive read suggest that bnsf is chasing that additional volume coming in from the west coast and trying to do the best it can to capture that additional volume while the u. P. , union pacific, is not doing as much. Is that an accurate representation, do you think well, becky, i never like to comment on other railroads operating philosophies i can tell you how we look at it at bnsf. We have a bias for growth at bnsf we believe that, you know, we are very closely tied to the industrial and the consumer economies and because of that we continue to see peaks and valleys from year to year in our volumes. So we have to be focused on growth we have to be nimble enough that we can capture those Growth Opportunities is having a competitive cost structure and were extremely focused on that and when you have Growth Opportunities and a good cost structure, that allows you to get value and you should be able to earn an adequate return that allows us to continue to invest in our network and have the capacity that we can say yes then to Growth Opportunities so thats the model we use thats the model weve used in the past that will be the model we continue to use moving forward some people point out though that container traffic isnt really high margin business. Youre able to go after it, make these changes in a quick way and still make a profit on all of this yes, maam, and we continue thats why its critical for us to be able to have a good cost structure and to be able to remain competitive with overtheRoad Trucking. Katie, when you look across the peak amounts that youre getting in now, do you anticipate thats going to continue through the end of the year because thats when you get into your normal crunch time we had a story where we looked at whether or not people would be able to get their things on time if you want to get things in time for the holidays, you should orderly is that something you would advise people . We definitely anticipate that our consumer business, we will see peek volumes through the balance of the year. As we help the supply chain to restock the dcs and restock inventory, so i cant speak to whether or not people should orderly or not we certainly will do our best at bnsf to deliver the kind of service to support the major retail e retailers. Just to be clear on that, in our industrial segment and product business, thats a Market Basket of all of the industrial commodities. We are really starting to see more gradual improvement in those volumes so anything related to the energy sector, for us thats sand thats used in fracking, thats Petroleum Products that has not rebounded in the way the consumer business has. There are bright spots in the industrial segment we are seeing anything related to construction or housing so for us thats lumber shipments. Those are rebounding nicely. And then if you look at our Agricultural Commodities business, that is a business that really was least impacted by the pandemic. You know, people need to continue to eat, even through a pandemic so our agricultural business has remained strong through all of this we expect to see that as well. We saw as the country went into lockdown and shutdown, electricity demand was lower Natural Gas Prices we had a relatively mild winter. In addition to the structural decline we had seen in advance of the pandemic, our coal business has certainly been impacted i just want to be clear while were seeing good growth in the consumer business, when we talk about peak volumes, the rest of the railroad is kind of a mixed bag for us its certainly unclear as to what well see going into the future those are good points you said in 2018 you were seeing more than now. Is there a year you could point back to . Yeah. You know, probably the 2006 maybe time frame, 2005 again, were really closely tied to the industrial and consumer markets. The railroad, our loadings are a lead indicator for what youre going to see in the economy. Katie, want to thank you so much for your time today congratulations on the new post. Thank you, becky. Appreciate it. Thank you coming up, the federal government failed in its efforts to target stimulus to those that truly were in need that, thats not a fact, thats the view though of a former top Economic Advisor to President Trump. Were going to hear what he means and how he thinks it should have been more targeted in a few minutes as we head to break, check out the shares of vail resorts they missed on Fourth Quarter revenue expectations and a wider than expected loss it expects the number of season passes for the year to be roughly the same as a year ago no small fete. Stay tuned youre watching squawk box on cnbc dad, its a video call. Hold the phone in front of you. Hows that . Get. Get mom. Power e trade gives you an awardwinning app with 24 7 support when you need it the most. Dont get mad. Get e trade and start trading today. With 24 7 support when you need it the most. 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 to squawk box, everybody. Futures this morning right now were down down triple digits for the dow decline of 103 points in the future s p futures off by 8 nasdaq still in positive territory. Off by 21 points andrew thanks, becky lets bring you some other news. British betting firm william hill is now the target of two separate takeover proposals. William hill said he got cash buyouts from Apollo Management as well as from Caesars Entertainment. Discussions are ongoing. The size of those bids not disclosed. So an interesting one to watch in the betting space, joe. Thats well known sports book and everything else, andrew. And a day doesnt go by when we dont realize how valuable these things might become, i think, and how popular it is becoming i always talk about my own personal experience. I just have one comment to make, i dont know whether you guys realize this, but the Business Model of like a draft kings or something, im not even sure they have a system where money comes back out from draft kings. I dont know if anyone has ever actually done that im not kidding. You go in, you bet, you have fun, you lose, then you send more money in and then you have fun and you bet and its like an expense. Its like youre paying for entertainment and you never expect, ever, to ever anything ever come back to you im realizing that i dont know if anyone has this experience its a hell of a Business Model. Then they give you bonuses they give you a free bet you think, oh, my god, you cant run a business like this they give it to you. Wow, this is great you bet, you lose that they didnt give me anything they dont give you anything so im going to try that ill let you know if i im going to try to send money from where it is back to like a bank account and i think the things just going to say, no one has ever tried this. I dont even know if theyre set up electronically. Not even a real casino where theyll comp you on drinks or a room or something. No. You get nothing out of it. Im fully i seem to be okay with this, which i really dont understand i think it might be better to go down smaller on individual bets, like into the pennies on certain nfl games. Have you tried this, sorkin . You like basketball. Was that a money making venture. Yes you did both. Both both the love of basketball and an entrepreneurial effort that maybe now has had good results back then i think my father would tell you it had mixed results at best. Yes do you think its cute that i realized that the house usually wins dont they have beautiful buildings in las vegas they have amazing structures out there. Apparently theyve gotten the money from somewhere to do that than the stocks. Okay andrew were going to weve got a lot coming up on the show as we get ready to close out the Third Quarter. Whats working in the Financial Sector heres a hint. Its not what youre thinking when you think of financials think about that as we head to a break, delivering alpha is back for the tenth year tenth anniversary on september 30th with a huge lineup. You can visit delivering alpha. Com to register. So many great folks joining us next year. You do not want to miss it stay tuned, youre watching squawk right here on cnbc. Everyone wakes up every morning to a world that must keep turning. The world cant stop, so neither can we. Because the things we make, help make the world go round. They make it cleaner, healthier, and more connected. Its what we build that keeps things moving forward. So with every turn, well keep building a world that works. The 1 pediatrician recommended brand, pampers, helps keep babys skin dry and healthy. So every touch is as comforting as the first. Pampers. The 1 pediatrician recommended brand. Time now, time now, yes, its time now for sectornomics was that you that was not me we do it once a month. Its kind of like you can set your clock for it. People wait for it. Its kind of fun for me because it gives me a chance to focus in on one sector every month. This time were doing financials because, joe, financials are the second worst performing sector in the s p 500 so far in 2020 and its second only to energy thats how bad its gotten for many of the big banks and Financial Services companies in america. Out of the 66 index members in the s p 500 financials, only 12 of them, a dozen of them are actually positive so far in 2020 and none of them are banks we picked a handful of these names that you might have known of and heard of. Msci, index and analytics is up 34 this year. Insurance company, like progressive, up 27 . S p global index and data up 27 . Market access up 20 as well if you take a look at these guys, the worst performing stocks are actually the banks. These stocks dont represent much of the Overall Index but they are the best performers nowhere near the size, of course, of the jpmorgans, bank of americas and citis of the world. Something to Pay Attention to. Back over to you. Dom, thanks all right. Quick out, beck. Yup when we come back. We havbrkie eang data on durable goods orders well be back after this break welcome back to squawk box. Rick santelli live here at cme hq awaiting august preliminary data on durable good orders some of the data is trickling out. Durable good orders expected to be up 1. 5 on the incomplete puzzle well get more as we get the final numbers. Up. 4 that is 1 3 of what we are expecting. Its still up. 4 capital goods orders, nondefense exaircraft a proxy for Capital Spending that one actually surged a bit up 1. 8 this is expected to be up 1 up 4. 3 was the june read that was a good read going back for several years. This is a good number and if we swap out orders for shipments, its up 1. 5. Wow. Okay now the revisions are coming in and these are actually fairly interesting. On the capital goods order proxy, nondefense, exair, that move from 1. 9 all the way up to 2. 5 shipments from 2. 4 to 2. 8. These numbers are pretty good except for the headline number which follows a slightly revised number to up to. 4 that is something to pay close attention to, especially considering that outside the service sector, joe, were expecting manufacturing and some of these durable good orders and factory orders to hold up a bit better this is a bit of a disappointment back to you. Rick, seeing mixed moves. Joining us to talk more about the latest Economic Data and how the government might better target stimulus to those american folks, tomas phillips, former acting cea chair in the Trump Administration hes now at the university of chicago. Can i call you sfloif what should i call you . Tom works really good. Okay, tom youre still worried that some of the Unemployment Insurance that weve done actually hurts the labor supply because its easier not to work than works. Is that still an issue that needs to be that we need to be very aware of just for the overall economy . Yeah. I think in terms of the stimulus thats on the table, i think two lessons we learned from c. A. R. E. S. Are not really addressed, i guess, by the Big Government coalition on pelosi and actually mnuchin it looks like so the incentives theres two components of what we learned. One is obviously the incentive issue. I think its under appreciated theres still even with the 300, theres a majority of workers facing more than 100 implicit tax rate on work. Imagine me going on zip recruiter posting a job saying i want you to work for me but i want you to pay working for me very few people will sign off on this i think the economists are very, very concerned about those kind of dampening incentives on the labor supply side. The second lesson that comes out of c. A. R. E. S. Was the liquidity was not targeting enough theres obviously a lot of people that need help and covid dont have a market for what theyre doing in certain groups and industries if you want but, you know, if you look at personal disposable income, im sure you looked at this program. It was four times the growth of a boom, of a good boom we had 45 annual growth in personal disposable income which is private income plus Government Income and in a boom we have, were lucky to have about 10 analyzed growth in a quarter. Thats telling you that its not targeted enough and that you could have helped a lot more people with better targeting i mean, becker freedman youre not convinced that issuing government bonds, i. E. , borrowing money and then giving it to others as far as stimulus doesnt really help with total Economic Activity and jobs to increase now that sounds cold and obviously people are in need, but you go on to point out the most important thing we could do is get a vaccine, and i dont know if people some of your comments are interesting its 15 billion a day its costing us as the virus spreads in health and Economic Activity. In one day if we got a vaccine that would pay for all of operation warp speed, the whole 10 billion. Yeah. If it was ready in january of 2021 versus june of 2021, that comes to 1. 8 trillion what weve got to do is handle this virus through the vaccine. Yeah. Thats the best Government Investment ive ever heard of, when you get a return on 10 billion roughly, you generate 1. 8 trillion so if you think of the deal, thats a pretty good deal. I think whats important now with the rollout is that mortality is so concentrated in the nonproductive part of the population, i. E. , the individuals, when you have 85 of the mortality is about getting the high risk people vaccinated it doesnt matter if the vaccination level is low once you take care of the high risk levels, you have broken the chain of the young people going into the market and old people getting it when they come home so i always advocated a twofold strategy i advocated this in march this year to the president with sort of a low mortality, high Growth Strategy where you take care, you isolate or invest in taking care of the high risk individuals. At the same time you let the low risk individuals or the young drive the economy. Thats what the vaccine rollout needs to do. One way of doing that is basically making medicare a requirement for participating in medicare you get your shot as an old individual, assuming obviously that theres no severe side effects. We can sort of induce people, i think we should do that. Make it an eligibility requirement for high risk individuals. So, tomas, your best case scenario, i dont know if it was arbitrary that you picked june to january of 2021, its still only september so there are still parts of the economy that could use some help. I dont know if you want to borrow you made the point about stimulus not necessarily offsetting the borrowing costs but do you have a targeted stimulus plan that would still make sense that you woul suggest to mnuchin and pelosi . I mean, youve got to separate between stimulus and liquidi liquidity. C. A. R. E. S. Was very beneficial when we say you cant engage in the economy to still have you bridge over to when you can actually come back no one is arguing that we shouldnt help people with liquidi liquidity. The question is when you reshuffle money from treasury buyers over to, you know, recipients youre reshuffling youre reshuffling from investment goods being demanded if you didnt buy treasuries to consumption goods beating the band when you send it to recipients aggregate is investment and consumption goods. Its no Clear Pathway by you by which you can basically reshuffle money and increase it. Many times you decrease it because youre distorting a bunch of investment activity into treasury. Thats not the only metric, decreasing or increasing aggregate demand or activity there are there are times where you know its going to be an expense that you dont recoup how would you target the stimulus just for those that have been relatively just for a bridge for people in dire straits. Thats not liquidity, thats keeping you afloat there are certainly people hurting, dont get me wrong. There are a lot of people hurting out there. The fact that we made that disposable income and it went up four times is telling you that it wasnt targeted enough. What needs to be targeted are obviously targeted better are industries where we have this either group consumption or Group Production i call it entertainment, restaurants, all of those industries are unique in that the consumers get together and the ones that are most hit by covid should be targeted better. Theres no room for having a booming home industry or booming car industry helped with no liquidity now. Tomas, appreciate it. Austan goolsbee is at a university of chicago. Im assuming its different. What if you run into him on campus do you just like make sure that you are not in the same do you know him yeah, of course i know. We came to university of chicago obviously at the same time hes a great guy we have obviously intellectual disagreements but everything is fine. Maybe a few maybe a few. Anyway, he loves it. He loves it when i you know what, Nothing Better than having your name said when you havent even done anything he loves it when i do that for him. You dont need to be separate. Yeah, he is a great guy. Im shu you are, too, tomas. Very different opinion same university of chicago good good for the university of chicago because not all i dont think you see in that on all campuses anyway, thank you. We appreciate it some interesting notions there andrew great thanks, joe. Great conversation just then meantime when we come back, september has been a very tough month. Tech seeing some of the worst action does that mean its the perfect time to buy . Question of the morning and we are going to talk about it. First as we head to break, check out the price of silver. High flyer just a couple of months ago dropped more than 1. 5 Percentage Points today this would be its worst week in nine years stay tuned youre watching squawk on cnbc stock slices. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. Welcome back to squawk box, everybody. Weve been watching the futures this morning still a mixed bag. Dow futures down by 100 points s p off by 8 nasdaq hanging in in positive territory up by 14 points. Joe . A few stocks to watch this morning, beck. Costco shares trading lower despite the company reporting Fourth Quarter earnings and revenue that beat expectations samestore sales rose by 11. 4 better than the 7. 8 consensus estimate Digital Sales at the Warehouse Club grew an impressive 91 over last year. Astrazeneca has received partial immunity from the eu regarding any potential liability relating to the candidate. They were asking a lower price for the treatment. The company would only pay legal costs under a certain threshold. Andrew a lot more coming up, joe jim cramers first take on the trading day coming up ahead given how mixed its already been as were closing out whats been such a wild week for the markets. Plus, why tech has such a rough month and whether september is the time to buy. Answer after this. You cant predict the future. But a resilient business can be ready for it. A Digital Foundation from vmware helps you redefine whats possible. Now. From the hospital shifting to remote patient care in just 48 hours. To the university moving hundreds of apps quickly to the cloud. Or the City Government Going Digital to keep Critical Services running. You are creating the future on the fly. And we are helping you do it. Vmware. Realize whats possible. The 1 pediatrician recommended brand, pampers, helps keep babys skin dry and healthy. So every touch is as comforting as the first. Pampers. The 1 pediatrician recommended brand. Lets get to cnbc headquarters jim cramer joins us right now. Jim, we were just talking about costco those numbers were great stock down 7 bucks today i cant figure out why i know you were on the Conference Call last night did you hear anything . No. That was great they are spending 280 million on covid. I think some of the analysts think that should be lower theyre doing bonuses for employees. They want that lower thats not costcos style. Costco treats its employees great and, therefore, they stay with costco. Theyre doing what costco does theres people who say whats this going to be like after the pandemic is over i think theyre going to retain people can costco go down 10 points it has a bunch of times. Every month they tell us, what a buy. It was just a good quarter its going down. The same institutions banging down all morning what a call, what a quarter and stock threatened this is the great retailer of our time how are you feeling on this friday i know that were looking at a rougher week for the markets overall even though weve been up two out of the last three sessions youre looking at a rougher month. What would you tell people as were getting towards both the end of september and the end of the quarter . I think september historically has been such a bad month. In the last ten days of september have been the last worst ten days every year. So, i mean, its natural, empirical. I call out this morning whats going on in europe, people dont realize. Its a complete fiasco you have the cac down, germany down, spain down well, yeah, those countries blew it they just blew it. They opened up they encouraged people to open and look what happens. I know that were im calling for stimulus because i i dont want the pressure to open up here because what it does is cause another resurgence europe is terrible uk is terrible were better and i hate were exporting their decline. It usually runs out between 10 30 and 11 00. Thats why you are advocating for stimulus, but obviously were not going to get that anytime soon from washington. No, its terrible because theres some yelp numbers that rbc has listed today and the number of restaurants that are closing, the number of anything about hospitality is just failing through no fault of their own, becky. They are not running railroads where the business is good right yeah hey, jim, thank you. Its good to see you. Good to see. You we will check in with you in just a few more minutes to see more have a great weekend. You, too. Andrew . Thanks, beck kree. So questions of the morning is the recent selloff in tech stocks affecting other areas of the market to help answer that as well as talk about whether the recent pull back presents maybe a Good Opportunity to buy some of the biggest tech names were joined by jay muster great to see you, gene. Andrew. Is this really a buying opportunity . I know tech is your thing, but tell us. It is and what were really seeing neck, not all tech is created equal. To answer your question, this is not a blanket buying opportunity, you really need to pick the pockets if we can about faang this fraction of faang we have talked b the haves and the have nots, on the have side we have apple and i know this is an overcovered name but i think that theres massive upside to this stock specifically if you just look out two years which i think is a safe bet with apple because its earnings stability and put a 35 multiple on it you get a 200 stock. I think that the specific piece thats misrepresented in this is what theyre going to be doing not only around wearables, but augmented reality and ai this is part of this key about trying to really excavate the opportunity in tech right now is to look at companies that are fundamentally changing the world and apple is one of those, still i think a relatively inexpensive stock. Then you have google and amazon, i think those are also ones that are in the buy category here we see that line and on the bottom end of that line on the bottom fold is facebook and netflix, these are stories that we would be less optimistic about because theyre simply not changing the world, but i would also put another factor into this conversation about where to put your money specifically in tech and what weve seen more recently is there is a lot of performance coming from some of these late Stage Private Companies that have recently become public, we think about jfrog, we think about Companies Like snowflake, palantir next week, were investors in unity thats another one that that piece is going to be that is the golden opportunity here ultimately for investors as you think about your tech portfolio is really how does the average investor ultimately get a piece of that latestage piece, those latestage companies that ultimately will become the next faang. Because whats worked in the past wont work in the future. So, gene, the flip side of this is do you think that there is real regulatory pressure that could create a challenge to an apple given what were hearing the simple answer is that this is going to be there will be some form of pressure on apple shares re lated to the multiple because of this all the Big Tech Companies will be part that have conversation tim cook recently has said they have less risk because their goal is to make the worlds bess products and by definition when you have the best products its difficult to have high market share which puts you at risk for regulation, but i do think that the Company Still needs to navigate, i think, some of its policies related to navigate some of the conversation around regulation and so they will be a part of that if you just put it all together i think the simplest path forward is that the companies that are going to really be the center focus of this is going to be Companies Like facebook and google yes, apple is going to be part of the conversation, but at the end of the day i do agree with tim cook and their view that lower market share ultimately creates makes it more difficult to build a case of regulation and, again, i would just anchor, yes, we have a lot around regulation here and a lot of that conversation is going to continue in the months and years ahead, but most importantly which companies are going to become more fundamentalto our lives and i think apple is squarely at the foundation of those companies. Okay. So if i gave you 10,000 bucks right now you could only put it in one place what would you do one question, whats my time horizon . I will give you a year . Three years three. I will give you three. 10,000, three years, i would do apple i think that you would do apple. Apple i think i think investors are underappreciating the amount of earnings that this company can generate over the next three years and ultimately i think that it is also another factor in there, too, i think it is has a safety factor to it but also has upside relative to the multiple if im right that they do capitalize on this wearables, on augmented reality, on artificial intelligence, all of that, i think that this with a threeyear window this stock still has measurable upside. Of all the companies, you could have chosen amazon, you could have chosen netflix, you could choose anything in the world, apple is where you put the money . Exactly its got the two factors that are most important, its got stability today and separately it has massive untapped markets we talked about. One thing we havent talked about is the 5g a threeyear upgrade cycle around 5g. That first year is going to be a disappointment, i want to emphasize that to investors that its going to take some time for g 5 to get going for apple, but thats why that threeyear investment horizon is really important because that will capture what i think is going to be accelerating iphone growth in the mid teens that will be sustained for three years. When you put it all together its going to surprise people. Okay. Gene munster, always good to see you. Thank you. Thank you talk to you soon. Joe, 10,000 bucks, are you going to put it on apple or bitcoin . Im going to put it on probably some some ncaa games tomorrow, i think, and i may do it youre going to lose. Yes, i am. Just handing the money to draftkings you might as well invest in draftkin draftkings. I looked at a couple of them and i really have a good feel for a couple of them tomorrow, i think theyre shoe ins and the reason i brought this up is because of what they want me to talk about here and that is a big market mover this morning, british betting firm william hill, a target of two separate takeover proposals, william hill said it got cash bids from apollo as well as Caesars Entertainment and discussions with both potential buyers are ongoing. The size of those bids were not disclosed, but, i mean, its just really were right at the beginning of this and if you leave new jersey, you cant i dont know, theres a couple other states, but i just dont know what its going to look like in a little while and it can be a really cheap form of entertainment if you do just put a couple dollars down on these things. Its one of the classic covid stay at home sort of plays, right . Maybe thats true, too. You cant go anywhere else so the money you might have been spending on other things get funneled into this. I love baseball, i love the reds and everything, but its been years and now in the morning i look on mlb to see if theres a 1 00 game and i look forward to, oh, look, the pirates are going to play or whatever its just really its enriching, i think maybe its a covid thing maybe its a covid thing because, you know, you are at home youre not going anywhere, right . Exactly but its fun. On that note, watch the cruise lines today because thats got the opposite impact from everything when people arent going on cruises, but barclays is actually upgrading the cruise stocks, carnival, norweigian and Royal Caribbean, it has all of them at overweight from equal weight. The analyst there says although the call may be early the risk reward profile is attractive and is anticipating that cdc may make positive comments about a return to cruising when it addresses the issue in just a few days all of those stocks up norweigian up by 4 , same for carnival and Royal Caribbean up by 3. 4 . Lets also get a final check on the markets this morning again, its friday yay. But it has been a little bit of a rough week for the markets and youre seeing more of that at least with the dow and the s p futures this morning the dow is down by about 71 points, s p futures are down by 5, the nasdaq is up by 32. As we spoke earlier this morning, with Katie Stockton, she pointed out that the tech names, the Big Tech Companies are no longer leading the way down so thats been good news anyway, everybody, have a great weekend. We will see you back here on monday joe, andrew, you guys have a great weekend, i will see you back here and right now we will turn it over to squawk on the street. Tuesday is the debate good morning, and welcome to squawk on the street, im david faber along with jim cramer carl has the morning off lets give you a look at futures as we get ready to wrap up the trading week when we begin a half hour from now as it turns 9 00 that does take us to our roadmap. It begins with, well, what youre seeing, another fall in futures, the s p is on track for what would be its worst month since 2011 with stocks set to post what would be the fourth straight week of declines. And as often is the case at this time, there is some vaccine news, at least one candidate saying they will have a billion doses ready by early next year and later, a 22 billion public debut, what are we going to make of palantirs latest valuation as it gets ready for that direct