California also dramatically rolling back. Indoor dining and bars across the state. Staff to asking retail work from home as the company forces more Stores Across the covid19. D shipping joining us to break it all down and talk about how this hit the market today, Bloomberg Markets reporter Abigail Doolittle. Talk to us about what drove the drove higher than sharply them back. Abigail a big aeration reversal having not so much to do with the virus. 500, the s p p 500, the highest level out of the air market. The bigger show was for the tech space. The nasdaq at one point up more than 2 , closing down more than 2 . Those indexes so tightly wound, record high after record high, including today. Overbought, overextended. There were also some headlines out around the u. S. And china that seemed to help the selling pressure continue. With that, we had bonds trade higher. If you take a look at it on the day, netflix a perfect example. Today, earlier today, netflix had been up about 4 , closing down 4 . Expectations to put a good quarter up. For interesting, investors and traders have been rushing into stocks, rushing out on these overextended and overbought conditions. So, lets talk a little bit about the broader scheme here and the impact that these rising cases across the country are impacting investors. Abigail it is really surprising to me because i would think that investors would be taking these rising case counts and hotspots more seriously. The four hotspots in the u. S. Is going, this chart in the wrong direction. Search onenue record the record surge on the day. Usually you want to see a chart move upwards from left to right, but not in this case. Over the past few months, the nasdaq putting in alltime highs. You would think there would be some fear that the economy would be impacted by this. California reversing being able to eat inside. Perhaps, more be, of a connection between this sur ge, this part of still the first wave, these states that were not hit as badly earlier. Relative to stocks on the year, there is this huge divergence that speaks to the possibility of more volatility ahead. 500 down00 up s p 2 . The russell, most closely linked to the u. S. , down 16 . When you have a divergence like that, typically there will be a convergence. The fact that smallcap was down, not such a great thing. The 2008l before volatility. Lets hope something along those lines does not happen again. Volatility here in the u. S. Could be a trigger. Emily Abigail Doolittle in new york, thanks so much. Meantime, one of the stocks that rose sharply, then pulled back sharply today was tesla shares rising into the double digits, then back into negative territory. Joining us, dan ives. There was a lot of optimism around tesla announcing battery day. What do you make of the sharp rise and then the sharp pullback . Just a little bit of a kneejerk reaction. Daynet, you look at battery combined with earnings and profitability, right now 2000 could be on the near term horizon for the stocks despite these covid storm clouds. So, talk to us then about battery day. How optimistic are you about this . What does this mean to the larger story of the company . Day will be battery a potential game changer for the story. I believe the million mile battery gets announced and i think it is important because this along with some other technology names, that is something that is going to enable tesla to continue to cut some prices on some of these cars. It, then you look at moat they have built from a battery perspective, combined with deliveries, and right now in the ev market, it is teslas world and everyone else is paying rent. You are seeing investors continue to push shares higher and i dont see that slowing down. Meantime, you have got earnings around the corner. How important will profitability be given that tesla is very close to joining the s p 500 and analysts have big expectations . Dan if you look at the 90,000 number for delivery, it looks like that will be profitability. I think you will also see, institutionally speaking, much more of a buy in from an investor perspective, which is key to the next leg higher in tesla. I think earnings in general, there continues to be a lot of volatility near term. I think investors are looking on the others, how quickly you can see a bounceback, back to a of 2022. Y emily what about the companys into india . Meaningful relative to all global demand. Right now, with tax credits in the rearview mirror, the u. S. , not as much of a Growth Market for tesla, which is why china is the linchpin. India,u look at europe, some other areas. These are going to be key to the next leg of this growth story. See investors starting to forest for the trees in terms of go. E the eb market could emily meantime, i want to talk about apple. Apple telling retail employees to work from home. This as customers are facing longer wait times and we know we are dependent on our devices right now. What do you make of this . Dan they are a barometer for overall retail, what we are seeing not just in the United States but across the world. The one thing from an investor perspective, retail is only representing 68 of sales. Iphoneal going into an 12, which we believe will be a super cycle. Cupertino cook and continue to lead by example, safety first. These are the smart and thessary moves, even though headline looks bad, from closing the stores, it does not significantly move the needle in terms of the actual growth story going forward. Emily meantime, you have tim cook preparing to testify before the antitrust subcommittee and a couple of weeks in d. C. Along with the ceos of facebook, google, and amazon. Apple and these other enormous tech companies. The i think july 27 is seminal day. Investors in the street need to understand, is this going to be political grandstanding or sharper teeth going into the antitrust issues. I think it is important. I do believe investors are starting to more understand the potential risk. Of course, that would be google and amazon versus may be apple. I think it comes down to going into a president ial election. This could be a more pronounced risk. Right now, we think it is more fines, but it does feel like a brighter spot. Environment, the strong has gotten stronger, which is great for the stocks. Emily dan ives of wedbush securities, always great to have you on the show. Coming up, should more Companies Follow in wells fargos footsteps and band tictoc from employees phones . This is bloomberg. Emily wells fargo is the latest company to tell his employees to remove the tiktok app from work phones. White house advisor Peter Navarro says even if the company is sold to a u. S. Buyer, it wont matter. Here to discuss potential Cyber Threats from tiktok, the managing director of the cyber readiness institute, who was also a cybersecurity advisor to president obama. What do you make of amazon they called it an error last week, sending any mail to employees that they would be required to delete the tiktok app, then seeing later in the day that was incorrect. I think there is a lot to be singing about with this issue. What i am hearing from industry and the National Security circles in d. C. , the concern and fear over Chinese Companies like tiktok is very much out there. Madent expect that amazon an error but we dont know exactly what happens. With wells fargo following today, we can certainly assume that a lot of companies in the board rooms, there is a lot of discussion about what to do about this app, particularly as it can as it pertains to company security. Emily what are the risks as you see them . Kiersten there are really three issues here. The first is that tiktok is collecting private data, personally identifiable data. The second issue, while that is not too unusual, because we have seen it with facebook and other tech platforms. But the second issue is that tiktok is a chinese company, which means that at any point in time, the Chinese Government over ask that they turn information. We dont know what china would do with that data. What we know is that china is data and thelot of opportunity to collected from Chinese Companies like tiktok. If we were to find out that china had breached a company like 23 and me, and we combined the theft of data from a company like 23 and me with the personal identification information from a company like tiktok, that would be disturbing. As a nation, we want to be thinking proactively about how to secure the nation and its citizens. Emily does that mean you think that 23 and me should be telling the employees to delete the app from their phones . Kiersten i certainly think it is something that Large Companies should be looking at. This really is a supply Chain Security issue. We know that malicious actors dont come to Big Companies through the front door. They find weaker links. An Entertainment App that is downloaded on devices is certainly a vulnerable opportunity. A side door that could be exposed. Companies have to make a Risk Management decision about the riskreward, what they are willing to roll the dice on and what they are not willing to sacrifice. Emily india has banned a number of chinese apps on grounds of security concerns. Kiersten what is important to know is that Chinese Companies that enter the u. S. , in with a presumption of guilt. That is based on years of intellectual property theft that has been documented by the Chinese Government, by china in general. There is always a Risk Management decision, knowing that when these companies, in, certainly not all of them pose this risk, but we dont know how many do. And we have to do our homework and the Due Diligence of how we are protecting ourselves and security of our nation. Emily white house advisor Peter Navarro said that even if tiktok is sold to an american buyer, that would not help things. Because we would have to give china millions of dollars for the privilege of allowing to operate on u. S. Soil. Kiersten as long as it is a Chinese Owned Company that has its grounding in the Chinese Government, that beijing has the ability to access tiktok, we have to look at how we are treating it. It goes to where personal use interferes with public use. We dont have these lines that protect one sector from another sector. Era ofin an interdependency now. We dont have those foundries. It is a link to something bigger and better that you are part of. If you are an employee of a large company, it becomes an access point to you. We have seen lots of evidence in the past, using part of the supply chain that may not be linear of trying to get into a company. Emily you have a view on Cyber Threats across the board. Since so many of us are working from home, what are the biggest Cyber Threats that you see out there right now . The electionh security issue and where we are right now. We have spent the last few months as a nation going to an entirely remote workforce. We have gotten used to identifying ways to have secure remote workforces. I think one of the challenges that we will have is how we security hybrid workforce. What we know is that many u. S. Companies will bring about 20 of their workforce back to the office. That means you will have a hybrid environment of people working in a physical secure office, then working from home. A lot of companies had to put together makeshift policies to handle the immediate crisis. Hope we have to look at now is longerterm Strategic Policies for security that respect and acknowledge the environment of virtual workspaces as well as physical spaces. Thank you so much for joining us. Google helping to speed up indias Digital Economy with a 10 billion investment. This is bloomberg. Emily google has announced new 10 billion fund to invest in india. Garrett, obviously, we know that Sundar Pichai and the ceo of alphabet have close ties to india. But what do you make of this particular investment . Obviously, india is a huge market for google. It is one of the most important internet markets in the world. It is not somewhere that google can afford to ignore. Invested already billions of dollars over the years. That 10 billion number sounds about right. They that they are want to be public about it and want to keep the big Internet Infrastructure Company in india. One of the things they said they would be spending money on is opening up access to their product to many different languages. There are many languages in india and the internet is not accessible to everyone who lives in india, even those who may have access to smartphones. Those are the kind of things that they are trying to ramp up with the money. You had a piece out today theow google is changing up way they drive traffic to websites and various search upgrades that makes it harder for sites to gain traffic. Gerrit if people remember maybe 15 years ago when they first started using google, it was very simple, they were just a couple of ads at the top, then a couple of blue links that took you directly to the websites that google thought matched your search in the best way. Over the years, we have noticed that instead of just giving you a link, they may try to answer your question directly. A historical fact, they will just pull that information from wikipedia. Over the years, this has started to damage a lot of companies that have made content as their lifeblood. Justa lot of people are staying on google instead of actually going out to the web. So this is a dynamic that has slowly been happening, like a frog being boiled without really knowing it. Now it is having a serious effect on certain websites. Emily interesting. We will have to see if this is something that comes up in the antitrust hearings later this month. Thank you for joining us for that update. Coming up, disney opened the gates to the Magic Kingdom over the weekend in florida. Why now . I will speak with the head of disney parks, coming up next. This is bloomberg. Emily welcome back to bloomberg technology. Im emily chang. President trump is taking full advantage of facebooks granular knowledge of its users interests to rally his voter base through marco targeting. He is doing that much more often than Vice President joe biden. I want to bring in kurt wagner who covers the company for us. Is this like part two of the 2016 story . Kurt it certainly feels that way. Was trumpew for 2016 really use facebooks targeting tool a lot more than hillary clinton. He ran a lot more ads. He was more specific in who he was trying to reach and what he was trying to get from them, usually an n. L. Or phone number so he could followup with campaign requests and donation requests. The same thing here. 489,000t trump has sent different facebook ads compared to joe bidens 23,000. You look at the vast number to give a sense of how specific he is being. A lot of these ads are not seen by many people. He is trying to micro target and get people the exact messaging he thinks will be most relevant to them. Emily this in the middle of a facebook ad boycott that trump and biden have not been supporting. Why isnt biden doing it . Kurt its a good question. It was a question after 2016. There was a lot of attention paid to the democratic Digital Campaign at first. There was a lot of discussion of what could have been done better or should have been done better. My guess is we have seen the spending from joe biden really increase in the last couple months. Basically, ever since he became the official democratic nominee. So, in theory, maybe he didnt have as much money. Maybe before the pandemic, he was trying to spend more on other platforms because he was again going against so many other candidates at the time. Now that we have seen rallies be put on hold and in person events be put on hold, we have seen his spending start to increase. I imagine for the rest of the summer and into the campaign, facebook will be one of the top, if not the top place for him to start spending money. We might see this become a little more of their strategy moving forward but it is a good question. Emily meantime, you are reporting facebook is now considering a possible ban on political ads leading up to the election. Where are they on that . And talk to us about the upsides and downsides of such a thing. Kurt this was a story reran we ran friday. There were discussions about banning political ads in the days leading up to the election. Mostly the pros, or the reasons for possibly doing this would be to cut down on the spread of misinformation or misleading content as the election approaches. Because facebooks policies that it will not backcheck campaigns or candidates themselves, in theory, they would open themselves up in the days leading up to the election of potentially being paid to spread lies on behalf of the candidate. That would be the real reason to do that. The real downside is this could really hinder those who are trying to get out the vote campaigns. Those who are trying to encourage people to go to the polls, who might be trying to share relevant information about how to do a mailin ballot. Those of the types of things that will get caught in this net as well. If you cannot do the political ads, you cannot do get out the vote campaigns, there are a lot of people who think this could have some negative consequences as well. Emily and we know facebook has made trying to sign up new voters one of its priorities this season. Thank you so much for that update. Over the weekend, disney reopened the Magic Kingdom in florida. This as cases of covid19 surge across the state. I will speak to disneys head of parks, josh damaro, next. Emily disney began reopening its theme parks in florida over the weekend. This after a near fourmonth shutdown. The move drawing criticism as cases of covid19 surge across the state. I spoke with josh damaro, the chair of disney parks, experiences and products about why and why no