Transcripts For CNBC Squawk Box 20240712 : vimarsana.com

Good morning welcome to squawk box. Im becky quick with joe kernen and Andrew Ross Sorkin weve been on a bit of a winning streak up four days in a row. Yesterday the dow was up this morning, you are seeing a little pull back dow down s p down and nasdaq off by 172 yesterday, Goldman Sachs helped. Good news from moderna godm goldman came out with much better numbers than anticipated. Also looking at the trezy yield. The 10year is sitting about 0. 622 good morning. As joe mentioned earlier the twitter shares are lower after the company showed dozens of users were part of a twitter hack targeting some employees who had access to systems and tools. Among those hacked joe biden, jeff bezos, bill gates, elon musk all telling users to send massive amounts of bit koip to an address they are diagnosing the problem and will share everything once the picture becomes more clear if they got in through employees with tools and access to accounts that raises questions about security procedures at those companies. There were screenshots of what you would need from an employee of the company that somehow were out there before they were taken down a lot of people are saying, thank god it is just money and not something important. Important like political is twitter too important to politicians and policymakers and politicians and journalists . Yes we rely on it. If you were to see something tweeted from the president s account. Elon musk, it surprised me the idea of send me 1,000 in bitcoin and ill send you back 2,000 i just smoked a big one too send me and im ready. Weve seen him irwas hoping it would be the waffle house tweet that said, you know, joe, im going to do it whats crazy, its such a whacky idea sounds exactly like the nigerian stories that used to go around how are you savvy enough to own bitcoin but not savvy enough to know that is a scam. Apparently, people are really worried about the dm i dont dm everything i put on twitter, i put out publicly Anthony Weiner thought he was dming but he was sending weiner shots. You dont dm me i dont follow you some people use twitter like a direct messaging service like an i message or a whatsapp you are not dming pictures no. No picks what kind of picks . What are those called . The stock is down for good reason elon musk, it wouldnt surprise me. Either from the president s feed either people are mad that there is a higher level of security for some than joe biden. I can think of 100 people that i would think of as the highest level and joe biden would be one of them. Every blue check mark was shut down i didnt notice i have one. I did notice i have no wall street journal there are still things that are not coming out not up and running yet does this mean it is a bad thing because it can be used in scams like this or is it like wows that wow, thats a thing now. It is like look, thats what happens. Which is it . I think it is both. We kind of new anyway. If you are doing something you dont want to be tracked, you can use bitcoin. I got a message that was like, i can no longer manage this account there is a million here. If youll just take it over for me what did they raise . 118,000 in minutes. I saw like 8 million at some point. Really . I thought it was less than that it was conversation i heard earlier. They caught it quickly. Even after they caught it, the story had been reported. He never answered i said pretty please i did tweet that another developing story china becoming the first major economy to return to growth. Lets get to the gdp numbers there is something to like and something to be concerned about. Thats right. China avoiding a recession this is a major turn around from the first quarters record contraction. A lot of that is due to the easing of the stimulus looking at the june data a lot of consumers are still concerned about jobs and income. A lot of analysts believe those concerns will continue to weigh on the second half of the year there was a surge in searches for the term in chinese, quit the party. What party is that the communist party. Because of a New York Times report that said the Trump Administration is mulling a comprehensive travel ban on all chinese Party Communist members. Not a done deal. A blanket ban similar to the muslim ban a targeted approach of the 25 party elite and their families unclear whether President Trump would sign off any of this especially given his public praise for president xi jinping. The Chinese Foreign ministry has already responded to the u. S. Having a travel ban saying if the article was true then they would appear pathetic. This whole issue could backfire it is 92 million people. You throw in the families, it gets to like 270 million people. A lot of the members in the communist parties are really not very active. They join the party because they want to be part of their community or get a job it is almost like taking an axe to something that maybe needs a scalpel. Before we head to break, duly noted by our own cramer, w. H. O. Doesnt sleep. With the markets down, pointing out these numbers from taiwan semi quarterly profit of 81 . Second quarter revenue up 34 . The guidance raising the guidance as well one of the main chip makers for the company. Raising outlook for 2020 projecting more than 20 growth in sales 5g smartphone sales. Despite of the huawei news we expect Business Performance to be strong in spite the demand that is a big deal they are raising guidance for 2020. Are they raising it more than what they just beat by or something we should expect additional growth in the third and Fourth Quarter worth keeping an eye on apple shares as a result for sure. We are talking major numbers in terms of dollar sales. The biggest chip maker in the world. In spite of losing huawei as a customer after the United States slapped a ban on selling to that company. Well see whether that helps tech has gone so far when it pulls back, its like, what do you expect right when we come back, weve got more on the latest on the paepd from School Decisions to the controversial decision from georgias governor to avoid requiring skmas. Well be the first to bring an interview with j j cfo. Experience the adventure of a bigger world in a highly capable lexus suv. At the golden opportunity sales event. Get zero percent financing on all 2020 lexus models. Experience amazing at your lexus dealer. Cases in the United States now topping 3. 5 million with 137,000 deaths yesterday, georgias governor voided 15 local government orders calling them illegally enforceable. Alabama announced a statewide mask mandate that takes affect today. And San Francisco joins los angeles and san diego saying they will only begin classes on line schools in are richmond, virginia will be full virtually until january. Several retailers requiring customers to wear a facial covering starting next week. Kroger said customers who cannot wear facial coverings are asking those people to use a different covering or pick up service. Later today, Rockefeller Foundation is said to announce a new testing and tracing action plan joining us with more is dr. Jonathan quick managing director of Pandemic Response no relation, dr. Quick, it is great to see you today good to see you and be here lets talk about this plan. You are calling for a National Plan what do you think has gone wrong to this point . We set out a first National Plan to in april when we plateaued at a million tests a week we said we could get to 3 million by the end of june we are up to 5 million tests a week the country has moved well but we need to get to 30 million tests a week and beyond. We need to set up large scale skreeng tests around prot calls for communities and schools and nursing homes. We havent had that number one, number two with he need that amount to test not doing enough we need to do in order to catch the epidemic early. The first sign of reoccurrence or surge has overloaded emergency rooms. It is about testing and contact tracing. When we know who is infected and who theyve been with, we can get to those people and have themself isolated. Many of the states in the south on fire. In new york, new jersey, they have bent the curve. There is no mystery what we need to do. This plan is about laying out what needs to be done and a cost to do it and raising the voice to say this is what we need to make the country safe i heard it speculated saying it is too late for Something Like this. If we wanted this in place, it should have been done already and we have kind of lost the battle on this front i dont agree with that the best time to plant a tree is 20 years ago, the second best time is now. Just letting this run wild you are going to get all ages affected we are going to see overrunning emergency rooms. When you have patients waiting as they have in arizona and texas in the emergency room for a day, day and a half, thats when fatalities rise its not a fiveday run in intensive care, its a 20day run. Youll have a quarter of survivors affected permanently that will create a huge burden weve seen what happens when a state really tightens down and enforces a proven mechanism. Distancing masks. They work and it is not too late the alternative is much worse. What do you think of georgias governor overruling where they had mandated mask wearing . When im in a difficult situation and im not sure what is the best thing to do and it is nothing new weve never faced before ill look around and see what works elsewhere and say, okay, i may not be convinced but if it worked there if it worked in new york, new jersey, other countries, im going to try it here for the well being and welfare for the people im responsible i think applying those Safety Measures are vital and it works. Thank you for your time today. Good talking with you again nice to see you. You too take care. Coming up, one of the hottest stocks of the year as modernas shares have soared. Check out shares of tesla. Down on news that the companys regulations down in california the second half of the quarter stay tuned to squawk box on cnbc this selenite grey is so pretty isnt it . Wow. Jim could you pop the hood for us . There she is. Turbocharged, right . Yes it is. Jim, could you uh kick the tires . Oh yes. Can you change the color inside the car . Oh sure. How about blue . Thats more cyan but. Jump in the back seat, jim. Act like my kids. How much longer . Exactly how they sound. Its got massaging seats too, right . Oh yeahhhhh. Oh yeahhhhh. Visit the mercedesbenz summer event or shop online at participating dealers. Get 0 apr financing up to 36 months on select new and certified preowned models. Moderna was a little known stock earlier this year. Then came the pandemic and became a wellknown leader in the race meg terrell joins us with more good morning. Moderna is among a number of companies, mostly younger or smaller companies, whose stock has gone up. Among that group of companies, moderna executives have sold the most stock year to date. Including about 12 million so far in july. In that amount, the ceo has sold almost 25 million year to date. Exercising options on about 40 million year to date most of these or all of these were under the free program 10 b 5 trading plans. Saying even though they are under these preprogramming plans, they look pretty bad. We talked before a different approach. They dont look concerning from an optics perspective it is completely understandable that people are waking up early in the morning, going to bed late at night trying to develop this wonderful vaccine that they be rewarded for all their work telling us, quote, executive sales at the company are almost exclusively made in the plans entered into in accordance with the Insider Trading policy and note that old gz would increase this year. Theyve not exercised this option and so the plan was traded at the end of 2018 and over his children which he has no Decision Making authority you remember when the Company Released the results they did an offering there is a whole group of people who think it was a second dairy offering where insiders were selling. It was a primary offering of new shares to raise money for capital purposes that needs to be clear i still hear it being called secondary offering we asked about this they said the companies should be practicing good hygiene. I dont know whether they are wreaking of b. O. But isnt great hygiene. These planned sales. You may not be able to rig the way you plan the sales and you probably cant rig the way you release information but what if it coincides with the time you know you have the sale coming up the preliminary info on the eight patients that started out. The reason i understand the harvard guy, is this ever going to be worth 31 billion now. Is it going to be a platform 31 billion is alot. If you were a normal person, youd want to sell it is not like youd say, geese. Go ahead, andrew i was going to say, the only thing that makes you feel marginally better. You said it was 2018, which would mean, if it was not adjusted, they didnt know the paean was comin pandemic was coming, at least we hope not that does help the cause the question was, was anything about the plan adjusted throughout this period at all . Do we know yes some of the plans could have been adjusted. We know for the chief medical officer, he adjusted the plan midmarch they have to do these during blackout periods where they say the executives have no more information than the general public they dont allow for adjusting the plans. Some were adjusted as they were working on the vaccine we should make that clear i think stephons were not but i did see other officers and executives had potentially is it true his were not altered i believe his were altered in may. Ill double check that and come back to you. Some weird ownership. Some other company and in the administration had some influence here all kinds of conspiracy theories we love twitter. But it is vulnerable and everybody is looking for the next company they dont understand what these companies are doing. There are probably some exciting things in these results that do account for about the stock is there are some weirdthings i understand science as well. I think i understand it pretty well but i dont know reading on the twitter sphere, some weird relationships with with parent companies. Have you seen it i dont know if you are talking the flagship ventures, i havent heard anything it is good to get rich if youve found something amazing fs a real platform, the guys involved are entitled to benefit. Okay. Thanks, joe. Well get you ready for a very busy day of earnings the squawk planner and futures down off 170 points right now. We are back after this youre first. First to respond. First to put others lives before your own. And in an emergency, you need a network that puts you first. That connects you to technology to each other and to other agencies. Built with and for first responders. Firstnet. The only officially authorized Wireless Network for first responders. Because putting you first is our job. Apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com welcome back busy earnings day. Well hear from Johnson Johnson, bank of america, Morgan Stanley and Dominos Pizza. The first report from the faangs, netflix well get the weekly jobless claims as well and the june read of retail sales. Earnings and vaccine hopes continue to drive the Market Action our next guest says in july, weve seen equity rally. Gold has been rising a combination that seems looic a safety trade joining us now, chief Market Strategist under the headline numbers, you sound more concerned. I think it is right to be more concerned you want to see the he can with they market performing well and going up and the treasury market performing well. We seem to be in a pattern where yields continue to decline things like gold, which we typically never look at but it is moving up and yields moving lower. The equity market move up is kind of the outlier and what seems to be driving the out lying behavior of the two. Weve talked a lot about it over the past couple of days a bet that in the fall, well hear positive news not necessarily that the vaccine will be available in the fall. If you are not in the market when that moment happens that it is a lost moment well, i mean, so think of the other side of that bet i actually dont think it is binary bet in those terms. I think what we are seeing is something that has happened in it the past as well. The potential range of outcomes that could occur over the next six months in the economy. Difficult for anyone who is trading who is not an epidemiologist to understand the true way things clean they tend to go to a risk on time to a risk off time. Seeing a bit of tug of war between a simple risk on trade and risk off trade drew, how much when you think of the multitude of possible outcomes here, you talked about a sort of sixmonth time line. Dont you think most are looking at a 12many time line thinking that we are sitting here in july 2021, what does the world look like . Part of that is a better round of vaccine and better round of economy. While the third and Fourth Quarter may be particularly rougher than thus far. Depending on whether there is more stimulus. Thats another thing, how much is the bet on stimulus into the system i think some of the best is on stimulus into the system. If we look, we are seeing some positive movements in the ee con economy. They are not what people had hoped for. The idea of the v is gone. What weve lost, weve lost. Now it is time to climb our way out and just do it the next shock could be clrnt there is more stimulus and what does it look like . It is difficult to get your head around what things look like if you look at wall street estimates, they have a strong thir Andrew Ross Sorkin<\/a> weve been on a bit of a winning streak up four days in a row. Yesterday the dow was up this morning, you are seeing a little pull back dow down s p down and nasdaq off by 172 yesterday, Goldman Sachs<\/a> helped. Good news from moderna godm goldman came out with much better numbers than anticipated. Also looking at the trezy yield. The 10year is sitting about 0. 622 good morning. As joe mentioned earlier the twitter shares are lower after the company showed dozens of users were part of a twitter hack targeting some employees who had access to systems and tools. Among those hacked joe biden, jeff bezos, bill gates, elon musk all telling users to send massive amounts of bit koip to an address they are diagnosing the problem and will share everything once the picture becomes more clear if they got in through employees with tools and access to accounts that raises questions about security procedures at those companies. There were screenshots of what you would need from an employee of the company that somehow were out there before they were taken down a lot of people are saying, thank god it is just money and not something important. Important like political is twitter too important to politicians and policymakers and politicians and journalists . Yes we rely on it. If you were to see something tweeted from the president s account. Elon musk, it surprised me the idea of send me 1,000 in bitcoin and ill send you back 2,000 i just smoked a big one too send me and im ready. Weve seen him irwas hoping it would be the waffle house tweet that said, you know, joe, im going to do it whats crazy, its such a whacky idea sounds exactly like the nigerian stories that used to go around how are you savvy enough to own bitcoin but not savvy enough to know that is a scam. Apparently, people are really worried about the dm i dont dm everything i put on twitter, i put out publicly Anthony Weiner<\/a> thought he was dming but he was sending weiner shots. You dont dm me i dont follow you some people use twitter like a direct messaging service like an i message or a whatsapp you are not dming pictures no. No picks what kind of picks . What are those called . The stock is down for good reason elon musk, it wouldnt surprise me. Either from the president s feed either people are mad that there is a higher level of security for some than joe biden. I can think of 100 people that i would think of as the highest level and joe biden would be one of them. Every blue check mark was shut down i didnt notice i have one. I did notice i have no wall street journal there are still things that are not coming out not up and running yet does this mean it is a bad thing because it can be used in scams like this or is it like wows that wow, thats a thing now. It is like look, thats what happens. Which is it . I think it is both. We kind of new anyway. If you are doing something you dont want to be tracked, you can use bitcoin. I got a message that was like, i can no longer manage this account there is a million here. If youll just take it over for me what did they raise . 118,000 in minutes. I saw like 8 million at some point. Really . I thought it was less than that it was conversation i heard earlier. They caught it quickly. Even after they caught it, the story had been reported. He never answered i said pretty please i did tweet that another developing story china becoming the first major economy to return to growth. Lets get to the gdp numbers there is something to like and something to be concerned about. Thats right. China avoiding a recession this is a major turn around from the first quarters record contraction. A lot of that is due to the easing of the stimulus looking at the june data a lot of consumers are still concerned about jobs and income. A lot of analysts believe those concerns will continue to weigh on the second half of the year there was a surge in searches for the term in chinese, quit the party. What party is that the communist party. Because of a New York Times<\/a> report that said the Trump Administration<\/a> is mulling a comprehensive travel ban on all chinese Party Communist<\/a> members. Not a done deal. A blanket ban similar to the muslim ban a targeted approach of the 25 party elite and their families unclear whether President Trump<\/a> would sign off any of this especially given his public praise for president xi jinping. The Chinese Foreign<\/a> ministry has already responded to the u. S. Having a travel ban saying if the article was true then they would appear pathetic. This whole issue could backfire it is 92 million people. You throw in the families, it gets to like 270 million people. A lot of the members in the communist parties are really not very active. They join the party because they want to be part of their community or get a job it is almost like taking an axe to something that maybe needs a scalpel. Before we head to break, duly noted by our own cramer, w. H. O. Doesnt sleep. With the markets down, pointing out these numbers from taiwan semi quarterly profit of 81 . Second quarter revenue up 34 . The guidance raising the guidance as well one of the main chip makers for the company. Raising outlook for 2020 projecting more than 20 growth in sales 5g smartphone sales. Despite of the huawei news we expect Business Performance<\/a> to be strong in spite the demand that is a big deal they are raising guidance for 2020. Are they raising it more than what they just beat by or something we should expect additional growth in the third and Fourth Quarter<\/a> worth keeping an eye on apple shares as a result for sure. We are talking major numbers in terms of dollar sales. The biggest chip maker in the world. In spite of losing huawei as a customer after the United States<\/a> slapped a ban on selling to that company. Well see whether that helps tech has gone so far when it pulls back, its like, what do you expect right when we come back, weve got more on the latest on the paepd from School Decisions<\/a> to the controversial decision from georgias governor to avoid requiring skmas. Well be the first to bring an interview with j j cfo. Experience the adventure of a bigger world in a highly capable lexus suv. At the golden opportunity sales event. Get zero percent financing on all 2020 lexus models. Experience amazing at your lexus dealer. Cases in the United States<\/a> now topping 3. 5 million with 137,000 deaths yesterday, georgias governor voided 15 local government orders calling them illegally enforceable. Alabama announced a statewide mask mandate that takes affect today. And San Francisco<\/a> joins los angeles and san diego saying they will only begin classes on line schools in are richmond, virginia will be full virtually until january. Several retailers requiring customers to wear a facial covering starting next week. Kroger said customers who cannot wear facial coverings are asking those people to use a different covering or pick up service. Later today, Rockefeller Foundation<\/a> is said to announce a new testing and tracing action plan joining us with more is dr. Jonathan quick managing director of Pandemic Response<\/a> no relation, dr. Quick, it is great to see you today good to see you and be here lets talk about this plan. You are calling for a National Plan<\/a> what do you think has gone wrong to this point . We set out a first National Plan<\/a> to in april when we plateaued at a million tests a week we said we could get to 3 million by the end of june we are up to 5 million tests a week the country has moved well but we need to get to 30 million tests a week and beyond. We need to set up large scale skreeng tests around prot calls for communities and schools and nursing homes. We havent had that number one, number two with he need that amount to test not doing enough we need to do in order to catch the epidemic early. The first sign of reoccurrence or surge has overloaded emergency rooms. It is about testing and contact tracing. When we know who is infected and who theyve been with, we can get to those people and have themself isolated. Many of the states in the south on fire. In new york, new jersey, they have bent the curve. There is no mystery what we need to do. This plan is about laying out what needs to be done and a cost to do it and raising the voice to say this is what we need to make the country safe i heard it speculated saying it is too late for Something Like<\/a> this. If we wanted this in place, it should have been done already and we have kind of lost the battle on this front i dont agree with that the best time to plant a tree is 20 years ago, the second best time is now. Just letting this run wild you are going to get all ages affected we are going to see overrunning emergency rooms. When you have patients waiting as they have in arizona and texas in the emergency room for a day, day and a half, thats when fatalities rise its not a fiveday run in intensive care, its a 20day run. Youll have a quarter of survivors affected permanently that will create a huge burden weve seen what happens when a state really tightens down and enforces a proven mechanism. Distancing masks. They work and it is not too late the alternative is much worse. What do you think of georgias governor overruling where they had mandated mask wearing . When im in a difficult situation and im not sure what is the best thing to do and it is nothing new weve never faced before ill look around and see what works elsewhere and say, okay, i may not be convinced but if it worked there if it worked in new york, new jersey, other countries, im going to try it here for the well being and welfare for the people im responsible i think applying those Safety Measures<\/a> are vital and it works. Thank you for your time today. Good talking with you again nice to see you. You too take care. Coming up, one of the hottest stocks of the year as modernas shares have soared. Check out shares of tesla. Down on news that the companys regulations down in california the second half of the quarter stay tuned to squawk box on cnbc this selenite grey is so pretty isnt it . Wow. Jim could you pop the hood for us . There she is. Turbocharged, right . Yes it is. Jim, could you uh kick the tires . Oh yes. Can you change the color inside the car . Oh sure. How about blue . Thats more cyan but. Jump in the back seat, jim. Act like my kids. How much longer . Exactly how they sound. Its got massaging seats too, right . Oh yeahhhhh. Oh yeahhhhh. Visit the mercedesbenz summer event or shop online at participating dealers. Get 0 apr financing up to 36 months on select new and certified preowned models. Moderna was a little known stock earlier this year. Then came the pandemic and became a wellknown leader in the race meg terrell joins us with more good morning. Moderna is among a number of companies, mostly younger or smaller companies, whose stock has gone up. Among that group of companies, moderna executives have sold the most stock year to date. Including about 12 million so far in july. In that amount, the ceo has sold almost 25 million year to date. Exercising options on about 40 million year to date most of these or all of these were under the free program 10 b 5 trading plans. Saying even though they are under these preprogramming plans, they look pretty bad. We talked before a different approach. They dont look concerning from an optics perspective it is completely understandable that people are waking up early in the morning, going to bed late at night trying to develop this wonderful vaccine that they be rewarded for all their work telling us, quote, executive sales at the company are almost exclusively made in the plans entered into in accordance with the Insider Trading<\/a> policy and note that old gz would increase this year. Theyve not exercised this option and so the plan was traded at the end of 2018 and over his children which he has no Decision Making<\/a> authority you remember when the Company Released<\/a> the results they did an offering there is a whole group of people who think it was a second dairy offering where insiders were selling. It was a primary offering of new shares to raise money for capital purposes that needs to be clear i still hear it being called secondary offering we asked about this they said the companies should be practicing good hygiene. I dont know whether they are wreaking of b. O. But isnt great hygiene. These planned sales. You may not be able to rig the way you plan the sales and you probably cant rig the way you release information but what if it coincides with the time you know you have the sale coming up the preliminary info on the eight patients that started out. The reason i understand the harvard guy, is this ever going to be worth 31 billion now. Is it going to be a platform 31 billion is alot. If you were a normal person, youd want to sell it is not like youd say, geese. Go ahead, andrew i was going to say, the only thing that makes you feel marginally better. You said it was 2018, which would mean, if it was not adjusted, they didnt know the paean was comin pandemic was coming, at least we hope not that does help the cause the question was, was anything about the plan adjusted throughout this period at all . Do we know yes some of the plans could have been adjusted. We know for the chief medical officer, he adjusted the plan midmarch they have to do these during blackout periods where they say the executives have no more information than the general public they dont allow for adjusting the plans. Some were adjusted as they were working on the vaccine we should make that clear i think stephons were not but i did see other officers and executives had potentially is it true his were not altered i believe his were altered in may. Ill double check that and come back to you. Some weird ownership. Some other company and in the administration had some influence here all kinds of conspiracy theories we love twitter. But it is vulnerable and everybody is looking for the next company they dont understand what these companies are doing. There are probably some exciting things in these results that do account for about the stock is there are some weirdthings i understand science as well. I think i understand it pretty well but i dont know reading on the twitter sphere, some weird relationships with with parent companies. Have you seen it i dont know if you are talking the flagship ventures, i havent heard anything it is good to get rich if youve found something amazing fs a real platform, the guys involved are entitled to benefit. Okay. Thanks, joe. Well get you ready for a very busy day of earnings the squawk planner and futures down off 170 points right now. We are back after this youre first. First to respond. First to put others lives before your own. And in an emergency, you need a network that puts you first. That connects you to technology to each other and to other agencies. Built with and for first responders. Firstnet. The only officially authorized Wireless Network<\/a> for first responders. Because putting you first is our job. Apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time<\/a> they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com welcome back busy earnings day. Well hear from Johnson Johnson<\/a>, bank of america, Morgan Stanley<\/a> and Dominos Pizza<\/a>. The first report from the faangs, netflix well get the weekly jobless claims as well and the june read of retail sales. Earnings and vaccine hopes continue to drive the Market Action<\/a> our next guest says in july, weve seen equity rally. Gold has been rising a combination that seems looic a safety trade joining us now, chief Market Strategist<\/a> under the headline numbers, you sound more concerned. I think it is right to be more concerned you want to see the he can with they market performing well and going up and the treasury market performing well. We seem to be in a pattern where yields continue to decline things like gold, which we typically never look at but it is moving up and yields moving lower. The equity market move up is kind of the outlier and what seems to be driving the out lying behavior of the two. Weve talked a lot about it over the past couple of days a bet that in the fall, well hear positive news not necessarily that the vaccine will be available in the fall. If you are not in the market when that moment happens that it is a lost moment well, i mean, so think of the other side of that bet i actually dont think it is binary bet in those terms. I think what we are seeing is something that has happened in it the past as well. The potential range of outcomes that could occur over the next six months in the economy. Difficult for anyone who is trading who is not an epidemiologist to understand the true way things clean they tend to go to a risk on time to a risk off time. Seeing a bit of tug of war between a simple risk on trade and risk off trade drew, how much when you think of the multitude of possible outcomes here, you talked about a sort of sixmonth time line. Dont you think most are looking at a 12many time line thinking that we are sitting here in july 2021, what does the world look like . Part of that is a better round of vaccine and better round of economy. While the third and Fourth Quarter<\/a> may be particularly rougher than thus far. Depending on whether there is more stimulus. Thats another thing, how much is the bet on stimulus into the system i think some of the best is on stimulus into the system. If we look, we are seeing some positive movements in the ee con economy. They are not what people had hoped for. The idea of the v is gone. What weve lost, weve lost. Now it is time to climb our way out and just do it the next shock could be clrnt there is more stimulus and what does it look like . It is difficult to get your head around what things look like if you look at wall street estimates, they have a strong thir Third Quarter<\/a>. Im not sures that how people should be thinking assuming you are right. What do you do about it . What stocks do you rotate into or out of . What is the out come i dont think sitting in cash is the worst idea and being able to take advantage of opportunities. When we are talking about that kind of thing, the ability to put cash to work when it doesnt seem to be pricing correctly is a benefit. That is something not everyone can do we manage an investment portfolio. You need to think about what makes sense in the current environment. Do you look for yield or duration do you want to be in the advantage of being in real estate and agriculture some of those are less acceptable for us, it is a better experience for others that can take a time out, this may not be the worst time to take a timeout hoping see you in person one of these days now back to joe. We are going to talk eventually to the cfo of Johnson Johnson<\/a>. The base looks pretty good, 1. 67 versus expectations of 1. 49. Up in premarket trading looking at sales that is also above looking at the company increasing its full year sales and guidance see the full year adjusted operating at 7 85 to 8 05. So above their own guidance. Johnson and johnson cfo will join us in a few mientnutes. Thank you. When we come back, we are still watching for Second Quarter<\/a> results from bank of america well hope to haveho tse numbers and instant analysis as soon as they cross stick around well be right back. Hey, our workers comp insurance is expiring. Should i just renew it . Yeah, sure. Hey there, Small Business<\/a> owner. Pie insurance here with some sweet advice to stop you from overpaying on workers comp. Try pie instead and save up to 30 . Thirty percent . Really . Sure get a quote in 3 minutes at easyaspie. Com. That is easy. So, need another reminder . No, im good. Reminder for what . Oh. Ho ho, yeah need workers comp insurance . Get a quote in 3 minutes at easyaspie. Com. Welcome back as promised, bank of america results just hitting the wires revenue 22 dout 22. 5 slightly better than expected. Come in at 5. 1 billion for this quarter. Last quarter, it was 4. 7. An increase but not much people were thinking it would be higher like 5. 3 billion they have less credit card exposure on the trading revenue, another big focus this quarter, they have strong numbers year over year but not as strong as the likes of goldman sack yesterday. Jpmorgan up 100 plus percent Investment Banking<\/a> 2. 2 billion, up 41 year over year. All of those beats relative to estimates but not the sail to beats from other banks the Net Interest Income<\/a> that came in 11 billion. The forecast was 11. 2 the forecast is on the Net Interest Margin<\/a> given. The direction rates and interest margin 1. 87 the forecast was 2. 04 a little pressure there, which is something will likely run into next year as well huge deep inflows. Deeps up 228 billion not much they can do with that money at the moment. That drags down that Net Interest Margin<\/a>. Stocks down half a percent in the premarket very good thanks well look deeper into Johnson Johnsons<\/a> sus. Relt the companys results just hit the wires. Thats coming up next. How does the world reopen for business . To return to the workplace, safely, companies will need the right tools. Thats why salesforce created work. Com its an allnew suite of apps, expertise, and services. To manage this crisis today, and thrive tomorrow. Everything Companies Need<\/a> to return to the workplace. Lets reopen. Safely. Welcome back to squawk box. J j earnings meg tirrell has a special guest. Good morning, joe were bringing in another joe, joseph wolk from Johnson Johnson<\/a>. Joe, good to see you this morning. I think weve got to start with the fact that youre raising your guidance for the year tell us about why j j is in a position to do this. Good morning, meg nice to be here today. The Second Quarter<\/a>, we had a Strong Performance<\/a> again from the pharmaceutical unit. We did see a little slowdown from the position to administer drugs. The portfolio remains well consumer, same expectations we had in the beginning of the year tylenol, listster listerine is doing well. We had fears in late march, early april that that business could be down 40 to 60 in the Second Quarter<\/a> it came in closer to 30 to 35 thats really the reason for what i would say is guarded optimism great special circumstance when a 33 decline actually beats expectations in a medical device unit. Thats for sure i want to ask you about your modeling for the pandemic. You were citing a potential peak in the United States<\/a> in april. We did see a peak in april and now we have way surpassed that here in july what does your modeling of the pandemic look like now were going in and looking at individual hospital accounts, getting a lot of intelligence, both quantitative and qualitative with respect to discussions that alex and other medical device leaders have had with hospitals their preparedness to handle the pandemic, any spikes that may occur and in many cases they did not see impact we have good intelligence there. Were looking at it on an accountbyaccount basis not just in the u. S. And across the globe. Are you even trying to model anymore using these models last time you cited guidance from experts like dr. Fauci. At this point the models are pretty much broken based on where they were a few months ago. How are you looking at it . Were looking at the same type of intel using epidemiology to determine how its going to impact the business and where to plan for vaccine studies as well. I want to ask you about those vaccine studies. Whats the current status when you plan to get into humans . Weve made a lot of progress since weve announced our lead candidate on march 30 of the very shortly in the next few weeks well have results from our free Clinical Data<\/a> that will be published in a prestigious scientific journal we have enough confidence that we will be entering phase one human trials next week it will be more than 1,000 person study it will include ages 18 to 55 but also 65 and older. Were going to try to target that most vulnerable population. It will be far reaching in terms of the demographic makeup and we are very optimistic that that will yield good results with respect to safety. Were in discussions with the nih to move up phase 3 portion to late september. So that will measure clearly the effectiveness of the vaccine things continue to do progress very nicely dr. Paul stoeffel and others have exceeded every time line we set out. Joe, if you are able to move up the phase 3, what would that mean if you lift the phase 3 to september, what would that mean to production . Are you producing this year . Still next year . Good morning, becky this is still going to depend on making sure we prove this out scientifically we want to make sure its effective and safe and tolerable. Because were using a platform whereweve implemented vaccine for approval that we received last week for ebola, hiv, zika, we have very good confidence it will be safe and tolerable the science still has to play out. I think you could get a readout for that data at the end of this year i think the responsible answer is probably the beginning of next year. In terms of manufacturing capabilities, we have two bioreactors in netherlands we have added to that and signed some definitive agreements with contract manufacturers in the u. S. Well be able to supply at a run rate of probably better than a billion vaccines by the end of next year but well have hundreds of millions as we continue to make strides in being ready for that manufacturing production joe, we appreciate it thank you so much. Thank you, meg. Thanks, meg. Thanks for bringing us that important interview. Coming up when we return, more earnings on the way. Well hear from Morgan Stanley<\/a> Dominos Pizza<\/a> mbs lix well be getting the nueron this afternoon. Squawk returns after this. Our Retirement Plan<\/a> with voya gives us confidence. We can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Todays market tests, Morgan Stanley<\/a>, Johnson Johnson<\/a> and weekly data often unemployment filings as well. Major breach more than a dozen high profile accounts hacked in a bitcoin scam shares of the social media platform are trading down on the news the second hour of squawk box continues right now. Good morning im Andrew Ross Sorkin<\/a> and along with becky quick and joe kernen. Were looking at a sea of red. The nasdaq is down on a point basis. At one point we thought the numbers were wrong theyre right. We should also tell you, i dont know if its keying off of some of the things in china, some of the tech stocks there. Nasdaq off over 1 now dow off about half a percent s p 500 off about half a percent as well. Joe . Okay. Yeah the nasdaq sort of led that decline the other day. Remember, we were up about 500 midday closed down and never took a leadership position back it had been up for a month, seeing crazy gains making something to scratch our heads about. Technology and the five stocks to lead the way. Becky . Yeah, go ahead. This time its actually some of the chinese stocks i think that are dragging down the nasdaq j. D. Com, baidu, netees. Its setting new highs. If it really decides to pull back, 1 1 2 1. 4 is not what we call a huge decline the nasdaqs perfectly capable of really showing us something 1. 4 making headlines this morning, bank of america posting better than expected earnings and revenues set aside 4 billion for potential loan losses tied to the pandemic shares at this point down 2 shares of tesla trading lower this morning on news that the companys registrations in california nearly half down 270 . Chinas economy is stronger than expected there you can see china stock markets are taking it on the chin a little bit this morning on that news the big corporate story of the morning, unprecedented twitter hack targeting a number of high profile individuals and wellknown corporations as well. The accounts of politicians, business leaders, celebrities including joe biden, bezos, bill gates among those hijacked to spread a cryptocurrency scam soon after twitter tweeted that it was aware of the security incident inpacting accounts. The stocks are coming under pressure this morning. Want to get over to eamon javers who talked about if these hacks had been used in other ways beyond bitcoin, e amon. Reporter it underscores how important twitter is if these hackers wanted something other than bitcoin, if they wanted a massive political fallout, massive fallout by coordinating the accounts of all of these powerful people in american life, you could make it seem like something was happening in society thats not actually happening that could be manipulative of the economy, manipulative of the world. Twitter said this was a coordinated social engineering attack it successfully targeted some of our employees with access to internal systems they say theyre looking into what other malicious activity they may have conducted or information they may have accessed we dont know all of what happened yesterday just yet, but the question is what is a coordinated social engineering attack thats where i think there are lessons here for other American Companies<\/a> throughout the economy, not just in the tech space. Social engineering is using your network of friends and associates against you that is, you can send an email to somebody that looks to be as if it was from one of their friends or colleagues. You could send a slack message, twitter dm, all of those can be used to look like theyre coming from someone you know and trust. Presumably they were tricked if none of the insiders were in on it, tricked from turning over some of the Security Keys<\/a> perhaps with an email that made it look like it came from their boss i think, andrew, in the work from home era when were all on the home systems, home wifi, kids running around, distracted, there are a lot of vulnerabilities for this kind of social engineering attack. You dont have that inner office communication. You dont bump into the hallway and say, hey, i got that email about the security codes, ill send them to you right away. That kind of conversation would reveal that thing was a fraud. Were not getting that in our daily lives and i think a lot of american Companies Need<\/a> to take a look at it eamon, i always think of you as our Cyber Security<\/a> guru and expert my question to you is this. I was under the impression that employees out of google, g mail account, employees had a twitter or facebook couldnt ever access peoples accounts. Though didn they didnt have passion words am i wrong when that yeah. We dont know the technical aspects of what happened here. So whatever happens its clear that whatever happened in such a way that twitter couldnt make it all of that stuff is out there do you believe inside companies that employees technically can access accounts, email accounts, social media accounts, banking accounts and other things on their own. You know, i dont know. The data certainly exists inside those companies. The question is who has access to it, what do they need to do in order to get access to it it may be that the keys to the car, as an analogy, were left on the table and somebody picked up the car keys and stole the car it doesnt mean employees are routinely driving around in your car, it just means they have access to it if they want to get into it. We just dont know enough to know what happened here for sure. Maybe the Silver Lining<\/a> is we do regain a bit of skepticism of stuff that we see, you know . Because if you have a blue check mark, its like, oh, yeah, thats for sure. Given 2020 and the developments this year, is there really anything where youd say, no, that cant happen . They already did it once im ready. If i see that on twitter, im running if i hear that there are pods opening up all around and robots coming out. So maybe its good. Right one of the questions is whether this was a dry run, joe . Right. Was this a test of capability or a demonstration of capability on the part of somebody who was testing out their systems. You have to look at the election ahead as one area of real risk for the u. S. , right . We saw one Intelligence Service<\/a> try to play in the u. S. Election system there are probably four or five Intelligence Service<\/a>s around the world. And cases with all kinds of information going on there i get rid of twitter. Do you like genie out of a bottle, horses left the. I dont want to see you thank you. Their exposure to stocks, according to t. D. Ameritrade, tesla continues to draw great interest from retail clients top three traded top three traded options other popular stocks among retailer include boeing. Great interest in airlines more traditional investors favor Delta Airlines<\/a> millennials are drawn to southwest. I dont know if you knew that, j. J. Kinehan, chief Market Strategist<\/a> from t. D. Ameritrade. We talked to an options analyst of the out of the money calls are getting so much attention. Why wouldnt they when these tech stocks, you know, they can go from, tesla, what did it go from, 500 to 1500, you pick an out of the money call and you can have some returns. Are you seeing that . Well, yeah, obviously a big interest in options has been interesting, joe, is tesla you know, when tesla got above 800 our clients have been buying, as you said, at the lower levels on the stock. As they got above 800, 900, our clients started selling more of the stocks and options trading increased more i actually think thats very, very good for one reason with options you can at least define your risk a little bit more and as you said, tesla has some crazy interday moves you look at some of the implied move of tesla out about six months, youre talking 800. Most people dont have the stomach for that at least if you buy options, you can say more importantly, this is the most i can lose spell that out up front and i think one of the mistakes people make is they dont look at risk first and then reward. So with this it gives them a much better opportunity. Now of course you dont want to see people losing all of their premiums, et cetera, but i do think the fact that options trading has increased as a percent of whole trading in tesla shows me that many people who may have been in the stock before have gone to that sort of philosophy because they just in many ways couldnt believe i think when the stock just ran right through 1,000. You can sell your position and lock in gains and then for a fraction of that amount buy the calls and stay long but not fully lose it. It makes sinense since they sort of discovered that way of doing things you know, one other thing you mentioned there at the top which i found very interesting was the sort of bifurcation of airlines and the fact that our old jer price points in terms of which airlines, perhaps millennials are more inclined to use than delta being the one that probably has a little bit more of a price tag to it and then the last thing i found really interesting among our client base, you guys had a discussion about the chinese stocks there at the top of the hour you know, alibaba was one that last month and has continued into this month as its rallied, our clients held out for a while and started to sell. I dont know if its some of the risk with china, et cetera, or what but weve seen people leaning in to the chinese stocks. Its either great because were democratizing things, were pointing out bankrupt stocks, cruise lines that are being jerked around by day traders, is that good that were democratizing everything or is it fraud, that means its become too easy well, a couple of things id say about that first of all, two years ago you and i had this discussion why arent people owning stocks and involved its going to end badly. Its going to end badly. The question i have, yeah, people are probably going to make mistakes. Joe, youre a golfer perfect analogy. When you started golfing, were you any good no, not at all. Does anyone ever get any good well, its the most frustrating game, no question. But the point is people help you along the way, encourage you to get educated thats what we should be saying to people, not oh, youre dumb, you cant do it. Its really aggravating to hear that the same people who two years ago wanted everyone to own stock are saying youre not smart enough to get it i think the golf analogy is a good one just like trading. Can you always get better . Absolutely many days its frustrating but people are willing to help you and more importantly, for the person whos doing it when they first started golfing, it would have been municipal course go to the place thats cheap, trade small and work your way up last thing, talking about twitter, the best thing is the byrd is there, larry byrd. Okay. Forgot about that. All of that yeah see ya. Morgan stanley just reporting and wilfred frost has those numbers. Get straight over to them. Very strong set of numbers here revenue 13. 4 billion expectation was 10. 3 billion eps 196 per share. Expectation 112. They had a very strong trading performance as have the other investment banks decent and strong management and no provisions. Across the board good. Forecast 2 poip poip 6 year over year. Its 4 billion Investment Management<\/a> is a decent little beat their provisions were 4. 7 million. Already smaller in percentage. Q2 its fallen to 239 million. Theres one question i have in terms of the compensation expense which is 6 billion quite a lot higher than expected this performance there the market off the back of these numbers. Five day stock chart when jpmorgan and citi was reporting. I its at 1 given very strong across the board set of numbers for them. As we discussed, Investment Banking<\/a> is the place to be. Check out the futures. Under pressure understandable given small gains weve had. Dow been up and yesterday it was up by 200 points it is down by 136 points this morning. S p down by 18 and nasdaq is the biggest of the decliners in terms of a percentage basis. Right now nasdaq is indicated down by 150 points i think thats about 1. 4 . The biggest nasdaq losers in the premarket if you want to take a look at some of these names, tesla down by 5. 3 then you have trip. Com down 3. 6 and some of the chinese stocks down by more than 3 1 3 stay tuned, you are watching squawk box right here on cnbc. Welcome back to squawk box. The dow is off but more importantly the nasdaq is off this morning about 143 points in some cases down 3 or 4 right about now. Meantime, among other stocks to watch, shares of dell are higher this morning the company said its explorin a spinoff of the 81 september of 20. 1. Definitely. Coming up, a virtual town hall special on cnbc tonight check it out as you can see, there is red and the nasdaq pulling back at most. A little bit over maybe just under a percentage and a half. Youre watching squawk box on cnbc stay tuned time now for todays aflac trivia question. What is the National Animal<\/a> of scotland the answer when cnbc squawk box continues pected bill not covered by my health insurance. And this is the aflac duck who helped me cover it. Aflac. These are all the cab rides to my physical therapy. And aflac paid me directly to help. Aflac. What he said. And this unexpected bill is from. The twothousanddollar specialist. Thanks. Aflac. When youre sick or injured, aflac is there. We can help with Expenses Health<\/a> insurance doesnt cover. Get to know us at aflac. Com we can help with Expenses Health<\/a> insurance doesnt cover. Now is the time to support the places you love. Spend 10 dollars or more at a participating Small Business<\/a> and get 5 dollars back, up to 10 times with american express. Enroll now at shopsmall. Com. Some Companies Still<\/a> have hr stuck between employeesentering data. A. Changing data. More and more sensitive, personal data. And it doesnt just drag hr down. It drags the entire business down with inefficiency, errors and waste. Its ridiculous. So ridiculous. With paycom, employees enter and manage their own data in a single, easy to use software. Visit paycom. Com, and schedule your demo today. But inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment<\/a> objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Now the answer to todays aflac trivia question. What is the National Animal<\/a> of scotland the answer, the unicorn, chosen because of its association with purity and chivalry in celtic mythology. All right. Welcome back, everybody, as covid19 cases continue to rise and businesses struggle to adapt to their new normal, many people, home grown heroes, are stepping up to help others in their communities. Cnbc Senior Personal<\/a> finance correspondent Sharon Epperson<\/a> takes a look at helping out and be how it can also help you. Reporter from sewing masks to feeding front line workers, many people across the country have stepped up to serve i would like to recognize my home grown hero sarah. She works anywhere from 20 to 30 hours a week with her mother shoeing masks for front line workers. Reporter some experts say helping others can be an effective way to alleviate anxiety and improve your own wellbeing. We move away from the constant thoughts, worries, overthinking and one of the best ways to distract yourself is to help somebody else. Reporter dr. Gordon james says when facing unprecedented levels of stress, emotional benefits of showing up for other people can be significant. We might realize that its maybe not as bad as we thought we see how other people are still happy even in the worst situations. Reporter at this Food Distribution<\/a> center at new roichelle, new york, they have served meals to 18,000 people every week since early march many of the same volunteers keep coming back. Its a way for them to give back and also help themselves cope during the crisis. Members of our community are so grateful and thankful for not only the staff and volunteers that are doing this every day, so getting that feedback and popular sense of motivation really enlightens them and fuels them to continue on. People helping people. Reporter its fulfilling a purpose that drives the volunteers and also helps them deal with lifes challenges today and in the days ahead. Sharon epperson joins now sharon, thats an incredible story. Youre right, giving back is something that makes you feel good as well but there are millions of americans who are struggling financially. If youre able to make a monetary donation, are there also benefits to your own Financial Wellbeing<\/a> if you do that reporter there certainly are, becky if you are able to make a monetary donation, you could get a nice tax break this year the c. A. R. E. S. Act has provided for deductions for up to 300. You can take that deduction without having to itemize your taxes. You can take it even if you have the standard deduction if you decide you want to itemize your deductions, the c. A. R. E. S. Act has increased from 60 of your adjusted gross income to 100 of your gross income you can give more and get a tax break if you have that money thats not what its about you give because you want to give you give what you can give its not always money, but what it does for your Financial Wellbeing<\/a> is it makes you more strategic, more thoughtful about where your money goes. Financial advisers say thats what money is all about. You need to figure out what you want to support, the causes you believe in and use your money to do that if you have it or use your resources if you dont have cash to give amen. 100 , sharon really great to see you. Folks, tonight cnbc in partnership with acorns is hosting a virtual live town hall special. We are bringing together people affected by the social, Health Crisis<\/a> we will answer questions and offer Actionable Strategies<\/a> and advice to reset and rebuild financial futures. Make sure you catch it tonight right here on cnbc 7 p. M. Eastern time andrew okay. Thanks, becky. Still to come on squawk box this morning, twitter shares are dropping this morning after more than a dozen high profile accounts were hacked in a bitcoin scam thats what we think it is so far. What investors need to know next top corporate story. Twitter shares show that dozens of the high profile users were the target of a massive hack attack they believe the hackers successfully targeted employees that had access to internal systems and tools. Among the accounts that were compromised, elon musk, barack obama, warren gates, joe biden, jeff bezos and the Corporate Accounts<\/a> of uber and apple right now theyre all telling followers the messages that were hacked, all of those messages were telling followers in nearly identical tweets to send massive amounts of by the coin to a specific address most said send me 1,000 bitcoin dollars now and i will make sure i give you 2,000 bitcoin back. Ceo jack dorsey said twitter is diagnosing the problem and will share everything he can once the picture becomes clear. Joining us now is paul meeks Portfolio Manager<\/a> at the Wireless Fund<\/a> and independent solutions wealth management. Before we get into the rest of your thoughts on technology, give me your take on twitter what happened here what went wrong . How damaging is it for twitter, the brand and the stock . I think its quite unsettling, particularly since the hackers probably went in, as you said just now, becky, through employee tools and through their credentials and so when jack dorsey says we have to diagnose, boy, hed better have a pretty good answer and he better have one quickly. In the meantime, i would stay away from the platform i think its a fairly sophisticated plot and i think its pretty serious. With longer term implications youd stay away from the platform youd also stay away from the stock . I would actually stay away from both. I would stay away from the platform, at least in the near term until we hear the results of the diagnosis, and this really does put the stock at some risk. One of the things ive always worried about with twitter is they dont monetize as effectively as facebook and some of the other platforms so ive never been much of a holder in the stock because of that. One of the things thats come up in recent weeks that im actually fairly bullish on and it might change my tune long term is that theyre entertaining a subscription model and if they go to a subscription model and just not be so reliant on digital ads, that might be something to rekindle my interest hey, paul, weve been watching the nasdaq this morning. Its a little weaker than the other averages but its been the one thats been leading the way until this week when the dow kind of took over and seen some outsized gains you say theres a rotation out of technology. Where are you seeing that . So theres been a rotation at technology and well see how long it lasts. I dont think that its potentially going to end any time soon because weve only been a couple of days into it. As joe said in an earlier segment, the fact that were down the futures 1. 4 today isnt much, right . If we have a correction we could come back. Its probably deserving. The way i look at this, becky, take advantage of an opportunity to buy some of these names that have gone up in our faces and you havent felt comfortable doing so in valuation. We might get our shot. One of the things ive seen is that these companies, you can probably make even a better case for their Business Models<\/a> and so i think whether its the top five or six tech names that everybody is familiar with or some of the other more niche plays, if this correction continues, i think it probably goes on for at least a few more sessions, i think its a great buying opportunity for tech. So you wouldnt necessarily say that this is the dip to buy because its really only been a few tase and i guess youre talking about names like microsoft, apple and others . Thats right. And also you think about it, becky, we have a situation where you only have to wait another one to two to three weeks for most companies to hear the results of their june quarter, which will be absolutely nasty, and what is their guidance Going Forward<\/a> for the rest of 2020 and even into 2021 and so unless you know, and of course if you know this stuff in advance they put you in the slammer, unless you know exactly what these companies are going to report for the guidance, which i dont, i think you should probably wait to see that information Download Play<\/a> out. I mean, that suggests being fairly nimble. You want to wait and see what happens with some of these names whampt if they report strong quarters, you missed your opportunity already . Oh, i dont think so because if they have a strong quarter, the stock is probably down and in the last couple of sessions some of them quite a bit you might have an opportunity to still go in. You might be able to unfortunately miss some of it because it might bounce on the results but then youll feel much better about the Going Forward<\/a> fundamentals particularly if they give guidance some companies will give guidance even further out. You like some of the chinese stocks like alibaba. Those have been some stocks weve seen pressure on today which ones do you like besides alibaba . Yeah. This could be particularly interesting. We have macro news out of china. Probably does it in the long term, even the intermediate term impact the companies very much i like alibaba i like netease, j. D. Com and tencent. What about Taiwan Semiconductor<\/a>, some of the strong growth they had what do you think of the chip stocks if youre a selfrespecting Portfolio Manager<\/a> or tech the right move is to over weight or under weight the semiconductors versus the rest of tech. I have been on the sideline with some of the semiconductor names, but if we get a little bit of momentum, particularly with the economy because these are cyclical names, that the semiconductor should do very well in my portfolio i own advance micro devices, i own some nvidia im waiting to buy some of the Semiconductor Capital<\/a> Equipment Companies<\/a> but i dont own taiwan simeon and what they say is a pretty good sign pretty good sign not just for the chips but beyond that for broader technology yeah, because you think about it as the Worlds Largest<\/a> Semiconductor Manufacturer<\/a> they have their hooks everywhere all around the world in semiconductors of course, semiconductors are quite pervasive. They go in all kind of gadgets Taiwan Semiconductor<\/a> is a pretty good tell not just for the semis or tech but even broader. Paul, thank you its good to see you today yeah, well, thanks for having me on. Appreciate it. Okay. Take care. Speaking of tech, i still think amazons tech. Just amazing anyway, its a notable day at amazon were going to explain what were talking about next, but first as we head to break, check out some of the biggest stock losers this morning. Looosers this morning yoreatined, u wchg squawk box on cnbc hey frank, our workers comp insurance is expiring, should we just renew it . Yeah, sure. Hey there, Small Business<\/a> owner. Pie insurance here with some sweet advice to stop you from overpaying on workers comp. Try pie instead and save up to 30 . Thirty percent . Really . Get a quote in 3 minutes at easyaspie. Com. Wow, that is easy. So, need another reminder . No, no no, im good. Uh, yes please. Oh. Ho ho ho, yeah need workers comp insurance . Get a quote in 3 minutes at easyaspie. Com. Welcome back to squawk box. The dow futures are down 125 or so thats better than some of the levels weve seen. Nasdaq taking the brunt of this, the worst this morning down 136 points, little over and the s p down about 17 points right now andrew, only in america, i think. Anyway, this next story. I have no sound he has no sound ill read this. Go ahead. You want to go . Lets talk together. No, no, you read it. Okay. Where were you 25 years ago today . Englewood cliffs at the wall street journal. Were you . I might have been in fort lee or englewood cliffs. Sorkin was at summer camp serving bug juice, i think, and charging you were a waiter, right . No, not 25 years ago but you i 25 years ago what year were we talking about . 90 something i think. 95. Its 2020. 95 yeah, i was graduating from high school. Were you buying books on amazon because you want to take this . This is your read. We were early we were early. I remember doing it with my mother, 100 buying books. We had a gateway computer 2000, 486 megahurts aertz baud modem e upgraded to a 14,000 baud modem. I still dont know what youre talking about you want to take over this read . Ive had a ive had an account since 1999 i thought i was a long timer if you were doing this on a gateway, you were probably before me, andrew. On a gateway. I dont know. I dont know we had an apple 2gs before that so Steve Wozniak<\/a> edition, by the way, which we saved. I used an apple back in i had an apple back in 79, it wasnt mine, it was in the lab where i was working. 1979 yeah today marks the 25th go ahead. No, you go. This is you anyway. Today marks the 25 years since the launch of amazon. Com John Wainwright<\/a> purchased the first book on the site, fluid concepts and creative analogies. In 95 the company had 10 employees. Today of course more than 840,000. Amazon went public two years after it launched at 18 a share in 1997. Amazon has undergone three stock splits since then so split adjusted and heres the number if you spent 10,000 initially at the ipo price it would be worth precisely about 20 million today. I like the way you said precisely about because no one thinks about that. It was precisely about 20 million. Anyway, what i want to which is unbelievable. 10,000. That is 20 million think about that what does amazon do for the next 25 years does it just buy 1,000 times as many of those trucks that i see in my neighborhood constantly now double parked . I think theyre going to do something that nobody is anticipating i think theyre going to do something nobody is anticipating when we were going to break you still think of amazon as a tech company. You should if you look at what they did with aws, the cloud services, that division was 10 billion in revenue for them last quarter. It was 77 of their operating profit for the quarter this is very much a tech company. Its doing all kinds of things and all kinds of projects, kind of like alphabet, google with all the projects that they had kicked off things that were not thinking of that they are, including ways to serve their customers in some way or another im sure its something that we are not thinking of. Will you be able to order a book on mars and have amazon deliver it good question maybe blue origin will fly. Hes in both thats the synergy. Thats why hes developing both, right . Want to be able to service that market, the mars market. No, no, no. So jeff wants to keep us on the totally different elon musk wants to escape to mars. Oh. Jeff wants us all to live on earth because he thinks its the Perfect Place<\/a> for us and wants to move all Industrial Production<\/a> and the stuff that shouldnt happen on earth up to space. So he can bring it back. Deliver it in reverse. Yes hes going to be a trillion air, i think and if he is a trillionair, maybe hell write a check to the irs which is what rich people should do if they feel strongly. Youll see what im talking about. Becky . All right when we come back, Abigail Disney<\/a> will join us on why she and dozens of other millionaires are asking to be taxed at a higher rate. Stay tuned, youre watching squawk box right here on cnbc. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you only have to pay for the data you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Welcome back to squawk box. They call themselves millionaires for humanity. They asked to be taxed higher to cover costs for covid19 abby disney, founder of four films and host of the all ears podcast. Abigail, great to see you. Good to see you. Theres a big debate going on about whats going to happen post pandemic in terms of taxes in america, taxes around the world, frankly, to pay for the cost of all of this. You say tax us whats the reception that youve been getting from your fellow millionaires and maybe billionaires on this topic you know, i think were getting less resistance than weve gotten in the past i think theres a recognition that weve gotten so far out of balance that its just not realistic to keep going. Were contributing so much less to the economy than we ought to be, to the wellbeing of our fellow americans its time for us to cough up a little bit more. What do you tell people who say, sure, if you want to pay more, send the government a check. Send uncle sam a check you dont have to up the rates on everybody if you are such a philanthropist, if you will, you know, mail your check in but dont do it to everybody so so if the world is terribly polluted, im not going to fix it by going in front of my house and picking up all the trash on the sidewalk. Thats not the problem the problem is systemic. We need to make this a more fair system that doesnt so much favor the wealthy. Well, let me flip it around what about the other argument, which is to say that government has failed us and actually you can make the argument in the context of covid19 that government has failed us many of the business leaders, private industry, has been the ones that have actually come out and really helped with covid in ways frankly that the government has not. Well, theres no question the federal government has failed us and thats been a failure of leadership, but where governments have failed us is because theyve persistently under funded and starved by this insistence that we take all the money out of the public systems we possibly can. If we had invested more in our health systems, if we invested more in making sure that the low income and middle income workers had, for instance, some savings or owned our homes or anything that ensures a life thats secure, we would be doing so much better, but you saw how quickly those lines formed at the food pan tris. Millions and millions of people who work full time in this country did not have enough money laid by to ep sure they had enough to eat for the next week much less however long this is going to last let me ask you, is your campaign specifically about individual taxes or do you also include corporate taxes in this . Yeah, in this letter were not talking about corporate taxes. We really want to talk about the individual people who are sitting on mountains of money. And lets face it, there were, i dont know, 20 billionaires in 1980, there are over some 600 or something crazy like that. Money has been concentrated too heavily in a too small population it needs to be driven across the economy. Whats a fair tax rate . You know, we had i remember leon cooperman came on our program and said, look, im happy to work half the year for the government and my fellow taxpayers and myself that seems like a fair trade thats 50 . Yeah. Frankly, 50 is where we are in parts of america already given the local, state, and federal taxes. Well, you know, for wealthy americans, their effective tax rate has gone from around 50 in the last 40 years to around 23 , which is roughly what the middle class pays what we have is effectively a flat tax really if you take all of the taxes, state, local, sales taxes into consideration we are paying a flat tax i would be happy to go back to the 50 . If thats not politically feasible, lets talk about 40. There are people that are so wealthy that a 40 tax rate would do nothing to erode the quality of their life and the money they are sitting on i have to ask you. Go ahead. I have to ask you separately. Given your last name and connections to walt disney, what do you make of the disneys reopening in florida given the spread of covid at the same time that clearly theyre closing in hong kong and in california . Yeah. I am not looking at the same information theyre looking at, but given what i do know, just the same as you do from reading the newspapers and so forth, im im confused about how they think they can possibly protect their guests and their employees. And i certainly know people who work there who are very uncomfortable, who have conditions like asthma and diabetes who put you at higher risk who are literally deciding whether they want to go back to work or buy food have you communicated with bob iger or anyone at disney about that the lines of communication are not robust, lets just say okay. Its a longer conversation abigail, we appreciate you coming on this morning its a fascinating topic, issue and debate thank you for continuing it. Thanks so much. Weve got a lot more coming up on squawk box ahead major twitter hack raising a lot of concerns about Cyber Security<\/a> were going to talk to former facebook chief Security Officer<\/a> alex stamos xtne the futures, we are in the red big hour ahead on squawk box. In neighborhoods across the country, youll see gratitude. Communities showing support in their own way. Our way is massmutual healthbridge, a free Life Insurance<\/a> program just for healthcare workers fighting covid19. So to all the healthcare workers on the front lines, thank you. Good morning futures in the red despite beats from Johnson Johnson<\/a> and two of the countrys biggest banks fourday winning streak for the dow is on the line. Hackers take aim at twitter. The worst ever Security Breach<\/a> the latest details and longterm fallout for the Company Coming<\/a> up. Should authorities keep kids away from school in the fall some districts already drawing up plans to start online only. Were going to speak to the head of one of the biggest as the final hour of squawk box begins right now. Good morning and welcome to squawk box here on cnbc. Im joe kernen along with becky quick and Andrew Ross Sorkin<\/a> u. S. Equities down look at that 4r78 the same on the dow and the nasdaq dow much higher. The percentage loss on the nasdaq more than with the dow and the s p this morning just moments ago we should point out the ecb left Interest Rates<\/a> unchanged as expected. It also left the Asset Purchasing Program<\/a> unchanged it did expand that program back in june. Were going to hear from ecb president Christine Lagarde<\/a> at 8 13 a. M. Eastern. Lots of earnings, becky, to talk about. Thats right. Weve been digging through them. We have Quarterly Results<\/a> out from two of the countrys biggest banks. Bank of america beating analyst expectations on the top and bottom line. Provisions for bad loans came below the Second Quarter<\/a> the Net Interest Margin<\/a> and income were below estimates. If you were looking at the numbers, i think they came in with 37 cents versus 27 cents than the street was expecting. Revenue better at 22 1 2 verse 2 2. 01 that stock down 3 Morgan Stanley<\/a> discovering nice beats with quarterly profits net revenue rose with net levels strong trading results is what weve been seeing all week long from many of the big banks Morgan Stanley<\/a>s beats were in line with some of the best performances weve seen. That stock is down 15 cents. All of these stocks have been higher throughout the week as were getting the results earlier in the week, andrew. Thanks, becky the story weve been talking about all morning, twitter suffering a major hack of some of the highest profile users causing the stock to slide in after hours trading. Julia boorstin joins us with more on that story julia . Reporter good morning, andrew this seems like the biggest ever hack for twitter bill gates, president obama home and Vice President<\/a> biden along with the Corporate Accounts<\/a> of uber and apple these accounts reaching hundreds of millions of twitter followers. The hackers all posted similar messages the hackers didnt infiltrate individual accounts but did this by hacking into twitter itself twitter support tweeted we detected what we believed to be a coordinated social engineering attack by people who successfully targeted some of our employees with access to internal systems and tools twitter temporarily suspended the ability to tweet for some verified accounts saying in a statement that it locked accounts that were compromised and that theyve taken steps to limit access to internal systems while the investigation is ongoing. Jack dorsey, ceo of twitter, he posted that they all feel terrible about what happened and they are working to make it right, but its worth noting that this comes as twitter faces growing scrutiny around hate speech and potential manipulation of the platform the timing is rough, andrew. Julia, you know, what does this mean for twitter advertising, at least in the short term do we have any sense reporter i mean, its not good ive been talking to analysts this morning and theyre saying that it just puts more pressure and sort of raises more questions for advertisers who are trying to decide where to put their money. Twitter is taking steps to remove political ads to reduce hate speech. Well see how quickly and comprehensively twitter can address this its certainly not a good thing. Okay. Thank you, julia. To talk more about the twitter hack and how the company can prevent the next one, were joined by alex stamos. Former security operator and nbc news Cyber Security<\/a> analyst. I hope you got up at 2 in the morning and been finding things out, making phone calls so you can tell us exactly wtf happened here is someone in cahoots somewhere in the company and could they could a World Leaders<\/a> twitter account be could they post something that could cause some type of International Incident<\/a> do we know that now, that thats a fact yeah, good morning. What we know is twitter has admitted that this issue started with an internal employee changing the email accounts and turning off the security features on these really high profile accounts the twitter message said that they did so because they were socially engineered which is a fancy term for tricked when you say someone is socially engineered, theyve been tricked into giving up their password. That was the initial read is that somebody was tricked into giving up the password now joseph cox at advivices motr board said they paid an internal twitter employee this is the biggest area of risk for almost any Large Company<\/a> is the Insider Threat<\/a> to operate your business you have to provide data and access to thousands and thousands of employees, and especially for consumer facing businesses, like a twitter, but also etailors, isp internet providers, banks, financial services, credit card companies, you have these very large teams of Customer Service<\/a> reps whohave to have a lot of power to make the customers happy. They pose a security risk. One way or another that was the risk. So once again im thinking that we shouldnt be angry that these guys did this. I mean, you know how people go through the tsa at the airport and they try to do things to see if they can get past and then we know they can. Nothing that bad happened this time. Right. Can we secure things up at this point is that the next step . Yeah. No, i actually think, honestly, as a country and twitter themselves got very lucky here these attackers, you know, the equivalent of stealing the clarinet 1 and taking it for a joyride and crashing it into a telephone pole if you have control of the accounts of the major fortune 500 ceos, your ability to manipulate the market is pretty incredible we saw a test run of this by elon musk who was tweeting about his own stock price and was able to manipulate it quickly if these attackers had more money, more savvy about how the markets worked, they could have made millions or tens of millions of dollars by depressing the market with some kind of move on news or depressing stocks. Andrew, they attacked very high profile, important people you somehow escaped which were all very i escaped i escaped. All of us did i know. I know i know hey, alex, the thing that im trying to understand in all of this, this is maybe a technical question but i think its a question that anybody who has an account anywhere with a password and double authentication may want to ask, which is do employees typically have access at a facebook to be able to post on somebody elses site or get into their account if you have a g mail account on be a google, can an employee inside google actually get access to that account is that what happened here yes thats a great question. The answer is generally yes. Although many Tech Companies<\/a> yes hold on. Hold on. Hold on. Yes . The answer is employees inside these companies can get access to all of these accounts so if you have the ability to call a company and talk to a Customer Service<\/a> rep and say, ive lost my phone, ive lost my computer, ive lost my password, can you get me back in, then that means somebody has the ability to push a button and turn the account over to somebody else. But typically alex alex, typically if you were to reset a password, for example, it would go to your, alexs email address. Unless youre able to change that address or intercept that address, that password cant get chaengd by another person except you. No youre right. In this case they changed the password they changed the email accounts over to email accounts controlled by the attackers and turned off security features. There is something twitter can do here. One, they can have whats called riskbased authentication. They can have systems internally if a Customer Service<\/a> rep is dealing with a very high profile account that their options of doing actions themselves are limited. You have the two key model of launching a Nuclear Weapon<\/a> you should not be able to take over joe bidens account number two, not hit here, was the president s account had already been deleted by a twitter contractor several years ago. Looks like he had put security around be that so you can have those kinds of controls you can have other situations that people cant change both the password and the email with one Customer Service<\/a> rep there are a bunch of things twitter has to do and hopefully they do it before the election. Alex, to that point, weve been talking around this one guy on twitter said this very successfully. Twitter admins have the power to post on behalf of leaders. One employee could start world war 3 with a tweet is that accurate i think i think that if you have the ability to take over an account like this, it gives you a huge amount of power. Twitter, while being significantly smaller than, say, facebook, is also the primary way that a number of very important people speak to especially the media and get their message out. Certainly if someone took over President Trump<\/a>s account and said i am sending the fifth fleet into the taiwan strait, im not taking it anymore from china, you would cause a worldwide panic while the pentagon and the white house tamped down that this wasnt real it would take time to believe it was not real yes. Maybe actually starting a war would be on the difficult side, but creating a massive panic, National Stock<\/a> market crash is in the ability. Alex stamos, thank you. Thank you. Thank you. Im just kidding around so the good news is that the president is protected from Something Like<\/a> this happening. The bad news is those actually are the president s tweets that we see no, no kidding. Kidding. That was just a slam dunk, wasnt it, alex . You know that. I gave you the soft pitch, andrew thats what im here for. Thats me, joe. But it sounded like him. Oh, im sorry. But i did i decided to go with it. Anyway, thank you, alex. Andrew, did you get it that was funny, right . Better you than me, joe better you than me coming up on the other side of this break, what a move to Online Learning<\/a> in the fall could mean to students, families and the economy. Well be joined by the superintendent of San Diego School<\/a>s which just announced, yup, theyre going to be online only check out shares of j j. Beating quarterly expectations thecfo telling us earlier this morning that better than expected medical devices in q2 played into the decision to raise guidance stay tuned, youre watching squawk box on cnbc 49. 50 i found you good job. Now im gonna stay here and you go hide. Watch your favorites from anywhere in the house with the Xfinity Stream<\/a> app. Free with your xfinity service. Now any room can be a tv room. Stream live tv, on demand shows and movies even your dvr recordings. Download the Xfinity Stream<\/a> app today to stream the entertainment you love. Xfinity. The future of awesome. We surveyed likely voters over six key battleground states and felt 1 3 feel full time in Person Instruction<\/a> in the fall will be just fine. Another 13 found sending kids to school part time will be safe, whether thats two days a week, half a day, but a blur ralt, 43 say in Person Instruction<\/a> wont be safe at all. That number is driven in part by rising concerns about returning to school in arizona and florida where of course we have seen cases urge half of likely voters in arizona and 52 in florida say it wont be safe to physically go back to school those responses do track along party lines. In florida you see a significant percentage of likely voters who say they believe kids had you had stay home who support President Trump<\/a> who has pushed for schools to fully reopen. So the question is whether this is an early sign of shifting political winds on this issue, and thats going to be important on capitol hill as the Washington Post<\/a> reports today that republicans are looking to tia digs nal aid to schools reopening. The bottom line is there is a growing consensus schools will need more money. The debate is how much and how to struck thur that package. Back over to you. Ylan, i would assume this is something thats going to shift pretty rapidly and pretty frequently because everybody is looking at the headlines, looking at the cases, looking at the number of infections and trying to make the decision as it gets closer and closer to schools reopening . Reporter yeah. I think that is an important issue because parents and schools are trying to decide now what the outlook is going to be in one month, two months from now. Thats really hard to do when you see the Public Health<\/a> data shifting so rapidly. We saw some differences when we asked people whether or not its safe right now for kids to go back to school those numbers were a little higher in terms of people that found that it was unsafe, but people are a little bit more optimistic about the fall. Well have to see if that pans out when we see the number of cases and where were at in the Public Health<\/a> picture. All right thanks, ylan meantime, the los angeles and San Diego School<\/a> districts have announced they will be starting next semester fully online citing safety as well as a lack of funding joining us is cindy martin, superintendent of San Diego Unified School<\/a> district. Thank you for being here good morning. Good morning. This is a decision that i would imagine didnt come easily, this decision to be starting the School District<\/a> fully Online School<\/a> season fully online i know its not something that you have plans for the full year how did you get to this decision what factors went into that . Youre absolutely right it is not a decision that comes so easily and school is so important to our students. The students we serve in san diego unified, los angeles unified, we know how essential it is. We have to make a decision quite frankly. The virus is spreading in the communities that we serve, and until the virus is under control, then we cant safely remove it. So our plans to begin the school year in an online only format is really related to the state of california and whats happening with the virus in the communities that we serve. We have to pay close attention to that. Cindy, aim he not sure if you heard ylans report but shes talking about republicans may tie some of the additional aid coming to schools to an inperson reopening, inclassroom reopening to some of these issues. How much funding do you have to deal with covid preparations how much would you need to be able to feel like you can reopen the School Safely<\/a> . Thats so important in terms of planning. A large School District<\/a> like san diego unified, im a lifelong educator, my 31st year in education, all of our teachers, board of education is focused on what it takes to reopen and opening plans. Were not giving up. Costs that are related are upwards of 20 more increase in the cost weve just authorized 11 million in spending for personal protective equipment so when we open we do have what we need for students to be socially distanced, fof additional nursing, cleaning equipment. Thats the same for anything opening in the country the businesses opening, churches opening, things have to change our core in san diego unified and across the country when i talk to all of my superintendent colleagues, everybody is adapting and trying to determine the adaptive challenges and the funding thats necessary for us to safely reopen because nobody wants our schools closed everybody wants them open. This is the biggest challenge. For all of our superintendent colleagues, we can outline for you a cost that it would take to reopen our schools this is a National Emergency<\/a> with a National Response<\/a> the heroes act and coronavirus child care and education relief act outline that this will cost more money, not less money, to safely reopen schools. It seems to me its almost a chicken and egg type of scenario youre saying you need this money and you need to know how much of a budget you have so you can plan in advance. Them saying they wont give you the money unless you can come up with a plan that already shows youre going to be opening in person its a tricky scenario to try and work through its a challenge whats the biggest challenge you face in your community right now whats the thing youre having the hardest thing getting access to, whether that be personal protective equipment, whether that be testing . Are you going to be doing testing . Or just getting access to online communication for the kids you will be teaching remotely . Im glad you mentioned testing. Thats critical. The virus is out of control and we need to see an approach to testing that is critical, not just in saab diego but all across the country were all looking at that because people are saying this is what were seeing at the white house and other organizations even here in san diego that have very frequent testing. That could be something that will be critically important for our schools as well whmpt it comes to planning without the budget, school superintendents, districts are looking to reopen. Our costs are quite clear, quite laid out and we understand because we authorized 11 million of personal protective equipment. The challenges for Online Learning<\/a> in the spring when we closed back in march, we had to quickly pivot our system to go online and we are opening online. We distributed 53,000 chrome book computers, delivered Internet Access<\/a> to students that dont know it. No one knows better than this district when i had to find a family whose mother had a cell phone and that cell phone is for students were using the mothers cell phone to get online and do the learning, thats not sustainable. We had to make sure those students had computers, they had the Internet Access<\/a> delivering the wifi hot spots to the homeless shelters. Having 98 of our kids connected to their teachers in the Online Learning<\/a> format that we could get in the spring. We are improving on that and all Lessons Learned<\/a> in the spring for a much improved upon environment, which is not the ideal environment. Thats why we have the plans continuing to move forward and the plans for physical reopening moving forward because nobody wants that more than our educators across the country we know how vital school is and were going to get this done. Cindy, i dont envy your position it is an awfully tricky mess to try and sort through, but we wish you the best of luck. We hope you will check in with us and let us know how things are going as you get closer to opening. Thank you as a country, its important that we get this done. Thank you so much. Thank you joe . Thanks, beck. Coming up, how the ultimate stay at home stock did during the quarantine quarter netflix reports Second Quarter<\/a> results after the bell tonight stay tuned, youre watching squawk box on cnbc into the Chocolate Factory<\/a> and you won a golden ticket. All of these are face masks. This looks like a bottle of vodka. But when we first got these, we were like whoa [laughing] my threeyearold, when we get a box delivered, screams mommys work mommys work. With this pandemic, safety is even more important to make sure we go home safe every single day. Welcome back to squawk box. Take a look at futures we are in the red. The dow off 157 points, 1 nasdaq down as well. 133 points so more there. The s p 500 down about 20 points joe . Actually, ill take it when we come back, jobless claims and retail sales numbers. That data is out in a few minutes. We will bring it to you live stay tuned squawk box will be right back. The new house is amazing. So much character. Original crown molding, walk in closets. We do have a ratt problem. Round and round with love well find a way, just give it time. At least geico makes bundling our home and Car Insurance<\/a> easy. It does help us save. Round and round with love well find a way, just give it time. Round and round what comes around, goes around. For bundling made easy, go to geico. Com welcome back to squawk box. We have some breaking news very important breaking news well start out with the ones im able to see first. Retail sales, this is the advanced number, which means its going to change june number. Expecting the number up 5 and, remember, in the Rearview Mirror<\/a> 17. 7 is the all time high 7. 5 better than expected if we strip out auto, 7. 3. Also better than expected. And initial jobless claims crossing the wire and it is not as good as expectations but it is good enough to be the 15th lower in a row it comes out at 1. 3 million right on the nose. So 1. 3 million right on the nose for initial claims and the reason its not as good as expectations is because the whisper number was around 1. 2. Most are looking for around 1,250,000. Continuing claims is now out 17,338,000 17. 338 million that is a bit better than expected that is the sixth continuing claims number that is lower than the preceding week and if we look at Philadelphia Business<\/a> outlook, philly fed, 4 24. 1, also bests expectations. Looking for a number around 20 one issue to point out is its not as good as the previous number which is 27. 5 im getting the final numbers for the retail sales i told you x auto 7. 3. X autos and gasoline 6. 7 these are all benchmarked against expectations of five finally the control number we consolidate it into one number and this one number is well, it is 5. 6. 5. 6 the control number the alltime high in this, of course, is in the Rearview Mirror<\/a> at 10. 1 whats the aftermath we continue to see that Interest Rates<\/a> dont seem to have any horsepower in terms of price down yield up. That may make some people and investors and analysts happier thinking its looking at the economy globally and domestically and this covid environment is doing better. Its a hedge against equities for the most part outside of today have been doing better ecb didnt do anything the Euro Currency<\/a> which has been on a bit of a tear unchanged andrew, back to you. Rick. Thank you. Steve liesman has the analysis of the numbers steve. Reporter these are good numbers on the retail sales side and philly fed side. They do speak to an economy thats come back and come back fairly strongly, in part because some people came back to work in the month of june. And that helped quite a bit. Also you had a large stimulus that came through jobless claims extended benefits as well. And that seems to have helped considerably the spending. Theres some crazy, crazy numbers here clothing and Clothing Accessories<\/a> were up 105 in june from the month of may. Theyre still down 23 thats something that weve got to talk about, but Sporting Goods<\/a> and hobbies and Musical Instruments<\/a> and book stores up 27 . Thats a good number falloff, strange falloff in nonstore retails. Internet down 2. 4 overall we do have this bounce back with a question mark and the question mark becomes with the renewed resurgence of the virus in several key southern states, some renewed closings, places like california as well, how much thats going to impact it we went into this with a gdp number estimated around 35 and our rapid update rick reached the control group and pointed out correctly because thats the number that flows into gdp and thats going to be something of a help. I think a little bit more than had expected i think were talking 30 rebound or decline the question comes how much of a rebound are we expecting ill be listening to the ecb no change. The ecb is waiting for the fiscal side, the governments to get their act together on some form of stimulus and then theyll do more or less depending on what happens there. Andrew okay. Steve, thank you. Going to send it back to joe yeah. For more on the numbers, lets bring in matt chaise and lindsey stifel matt, lets start with you having you review the retail number that we saw, was it about where you were expecting pretty strong . May have to go to lindsey first. Going to try to get matts mike working. Let me know when matt is good. Lindsey, well start with you. As a chief economist, do you want to talk claims or do you want to talk retail . Lets talk both i think starting with retail, it was a strong number. Certainly a step in the right direction. Highlighting the resilience of the u. S. Consumer andalso the power of reopening the economy, but i hesitate to draw a longer term, more positive conclusion from two months of better than expected spending rel ti ining the low particularly with the labor market so fragile. Claims still elevated. While we did add jobs over the past two months, youre still talking about millions of americans being displaced. To steves earlier point, now were talking about a number of covid cases rising across the country which could lead to a second round of layoffs as states are halting or even reversing their plans to reopen. Then you layer in an end to ppp and very generous Unemployment Benefits<\/a> i dont see a very positive outlook for the consumer in the second half of the year. So i do think this is going to be very difficult even though were seeing stronger spending numbers right now. So, matt, hopefully youre okay now so like so many things, we saw the initial snap back but we have the cases in the south and out west that have people thinking were not going to be able to continue this quick rebound whampt did you see today . What do you make of next month and the month after . Yeah, joe, i think youre right. The numbers last month were good we know that that was because in large part there were parts of the economy reopening. There was relief from the congressional relief packages, c. A. R. E. S. Act, other places flowing into consumers pockets. That was being spent people happy to be back out. Our big concern is number one keeping customers and those communities and of course the associates that serve them safe and, number two, keeping the economy open as we go forward. So i think as we look into the next several months, the big challenge will be how we can contain the outbreaks, limit the spikes, keep people safe and keep the economy open. We dont want to go back into lockdown mode. You see a new round of layoffs theoretically, matt . I think we know, joe, the sort of arbitrary way in which local governments made decisions about what businesses were essential and what businesses were nonessential so called and weve tried to demonstrate through programs like our operation open doors and other things that it doesnt matter what you sell. Theres a way to stay open and do it safely, protect your associates and protect your customers whether youre selling apparel, whether youre selling food or a pharmacy i think our objective would be to try to move forward in some uniform way keeping the communities safe and keeping the stores open. So we dont go in reverse. Some states already pulling back i think thats going to be the challenge as we go forward. Lindsey, if we hadnt seen the setbacks were seeing in the south and out west, would it have been close to a v did it start to look like a v . Did it look like a u are you forecasting a w . What do you think . Im talking about the economic recovery what do you think is most likely i do think we will see a strong rebound in the Third Quarter<\/a> coming off of very low levels of the second we do expect a retreat of around 25 to 30 gdp in the Second Quarter<\/a> followed by a 10 to 15 rebound. So in the positive realm in the Third Quarter<\/a>, but if we arent able to contain this virus and we do see the second round flareup continue or if we do see a third round show its head in the winter times, we would expect growth to fall back into negative territory by the year if were putting a lettered to it, its going to be a very low l and lingering financial concerns as well many individuals struggling during this period as businesses were closed, individuals forced out of their homes so this isnt something that snapped back and we can recover. Whether or not this is more of a u shape or w shape, i think a lot of volatility on the horizon. Becky has a question, matt. I keep looking for someone to start looking through those blinds you dont need to check. Ive got my im distracted. Ive got my eye on that. Joe, ive got this idea from you earlier this year when we were in lockdown, you sat up on the second floor, see out to the driveway. Its nice to see living things green. People coming up, i was worried people were going to climb a ladder. Im watching. Im watching you relax. Becky. Hey, matt, just wanted to talk to you about walmart instituting the policy to require everyone to wear masks yesterday. I know National Retail<\/a> federation got behind it and soept out something about how its members are all going to be taking this up and pushing retailers to go ahead and do this where did that come from were you waiting on a National Policy<\/a> to come through did you feel this is something you had to do to have the workers protected and make people feel safer . Yes weve been saying from the beginning of the pandemic not just on sort of health and safety issues but across the board in a comprehensive way that what we really needed was leadership at the federal and state levels as recently as two weeks ago, we and the u. S. Chamber of commerce and the National Association<\/a> of manufacturers all encouraged the president , Vice President<\/a> and the chair of the National Governors<\/a> association to adopt sort of uniform policies on masks as we went into the fourth of july weekend. We felt like we hadnt seen the kind of action that we needed, the sort of leadership at the federal and state levels we were trying to create an environment in which we could take a leadership role, set an example, demonstrate both an acknowledgment and recognition of the companies that decided to do this and create an environment where other companies if they decided to do that, that theyll have our support as well. We know people are going to continue investing in protecting their employees and associates weve demonstrated through the lockdown our ability to Keep Stores Open<\/a> and open new stores. The commitment is there. People are taking stronger places masks create an environment that would rain in the outbreaks over four, five, six weeks if we adopted it, we felt compelled to act. Many large Retail Companies<\/a> have adopted these policies, including starbucks, costco, yesterday walmart, kroger announced yesterday, kohls announced yesterday. Its picking up momentum people are going to do things that make sense for themselves and their associates and balance the relative risks. Thank you both. Thanks markets now down 200 im not sure everything was quite as flush as participants were hoping for. Matt, thanks lindsey, thank you as well becky . Thanks. Weve got some breaking news from American Airlines<\/a> and jetblue so lets get right over to phil lebeau hes got more on this. Phil, whats happening reporter becky, take a look at shares of american and jetblue. They have announced an enhanced code share agreement this essentially allows them to book their passengers on the other airlines flights. So if a passenger is going to a particular destination and american doesnt fly there but jetblue does, then american can book the passenger on that jetblue flight and vice versa with american. Whats in it for jetblue it is designed to help jetblue better compete in the new york city markets, greater access to laguardia and newark as well as access to International Routes<\/a> through the american whats in it for snern greater access to the northeastern markets, especially out of boston, and for both airlines this helps them better compete with delta and united who also, remember, they have huge hubs in new york city. So youve got american and jetblue signing this enhanced code share agreement not surprising allowing them to do more with less as both Airlines Face<\/a> the reality that theyre going to be Smaller Airlines<\/a> come october 1st. Okay. Phil, thank you. Appreciate it. What a world what a world meantime when we come back on squawk box, more on the high profile twitter attack. Were going to talk about it what it means for the stock and confidence in that important messaging platform plus, netflix getting ready to report Second Quarter<\/a> results. How did they fare in q2 . Tonight dont miss our special cnbc town hall bringing together americans effect affected by the current health, economic crisis. They will answer questions and advice to reset and rebuild financial futures. Be sure to catch it tonight. 7 p. M. Even time right here on cnbc back in just a moment. Maybe they like checking with their supervisor to see how much Vacation Time<\/a> they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com be sure to catch it tonight. Be sure to catch it tonight. Welcome back to squawk. We are getting some new details now on last hours ecb Rate Decision<\/a> want to get back to Steve Liesman<\/a> whos got some more for us steve . Reporter Christian Lagarde<\/a> toeing the line, andrew, saying ample monetary stimulus remains necessary. I think thats the key thing the market wanted to hear. This is the first time in a while that weve had no new stimulus from the ecb as it maintains pretty generous terms on a lot of programs that are out there and obviously very low rates. It hasnt cut rates into this particular downturn. They do see a partial recovery lagarde said she sees a partial recovery in may and june and does see a better rebound coming in the Third Quarter<\/a> though inflation she believes will remain weak, offset only partially by supply constraints. The reason thats so important is the ecb is a single mandate what they say about what she says about inflation and the outlook is what will guide policy didnt see much reaction from lagarde in the markets s ps were off a little bit more than they were previously, but that also coincided with the u. S. Data, though that was strong, andrew lagarde, i think, is in a waiting mode here, waiting to see what the fiscal side does before figuring out that the ecb, the central bank needs to do more here, andrew okay. Thanks, steve. Appreciate it. Joe coming up, jim cramers first take on the trading day straight ahead tomorrow, dont miss a big interview right here on squawk box with blackrock Ceo Larry Fink<\/a> stay tuned, well be right back. Its easy to get lost in the economic uncertainty. The volatility. The ambiguity. This moment calls for more. And Northern Trust<\/a> delivers more. With specialized expertise. Proven strategies rooted in data and analytics. And insights borne from over 130 years of successfully navigating economic turbulence. Giving you new clarity. Inspiring confidence. And helping you uncover new paths forward. Northern trust. Wealth management. Welcome back, everybody. Lets get to cnbc headquarters, jim cramer joins us right now. Jim, we did have more of the earnings that came out today, more of the Bank Earnings<\/a>, Morgan Stanley<\/a> and bank of america. Better than expected results, not huge activity in the stock maybe because weve seen this show before with the other Bank Earnings<\/a> weve seen this week. Theres way too much on we, some of these quarters are spectacular given the fact that we just went through one of the great stress tests in history and these all dame came through with flying colors people arent interested in the group. Wait a second, amazon is down 10 , thats a precursor to a lot of other selloffs. I dont like the way the futures have had consistent selling all morning when all the news is pretty good. That says that theres large sellers out there, step aside, let them do what they have to do and then come back. The numbers that we got in the economy, pretty good, too. Yeah. Up 7. 5 for retail sales, better than anticipated, jobless claims, initial jobless claims in line with expectationes totally. We dont have another vaccine story to get us going today. I loved your questions to j j and i felt good about the september thing, the fact they have 2 billion vials, they are ready to roll, because its not moderna saying that they have a few people that are doing well, its more of a company that does not beat its chest, people arent as excited. I think the thing i was most excited about with the j j is in the phase three trials they are going to be looking at they are going to be going after the older cohorts, people who are age 65 and up which is the population thats most impacted. Im laughing because we need to know if it will work with them. When i spoke to joe, the cfo, i said, hey, can i get in . I couldnt get into the other one. He said what do you mean i said i listened to you and becky, 65, i think that this is i think these guys are not taking seriously enough versus a moderna. I think this is the company that can get this thing done. I would never bet against j j. Yeah, the cfo made the point today that they are using a platform that has been successful in other arenas that they have gone after so they feel pretty good about at least the safety and what thats going to mean. Obviously you have to go through the testing to see the efficacy of the whole thing. Right its not as exciting to the robin hood traders, they want they want sorento and moderna and inn november joe and if they cant get those, they are not j j. To them j j is, i dont know, powder j j is a powerhouse and if theyve got something then i think that we should really be saying theyre going to give astrazeneca the run for the money and thats what matters. Your t cell discussion yesterday excellent with moderna by joe. I think weve got lets remember that you need a company thats been able to produce things in the past like j j, not necessarily a company thats never produced anything like moderna. I think the moderna science is good, but i do think when youre talking about saving the world i like a company thats saved it before jim, thank you. Thank you. Great to see you and we will see you in just a few minutes. Andrew thanks, becky netflix due to report Second Quarter<\/a> results right after the bell tonight investors i should say this afternoon. Investors focused on how the company did through the initial coronavirus lock downs joining us right now is the manager director and senior internet analyst at hoppen chaimer. What are the numbers to beat in your mind beyond the wall street whisper number, if you will. Sure. I think everybody expects them to beat td guidance number the absolute consensus is above think about 9 and if you look at the top 25 of estimates they are about 20 above fournette adds its not as bad as far as the expectations for the Third Quarter<\/a> and what they will guide there, but clearly expectations are quite positive i think thats important is the commentary around whats happening out there. So as long as covid is an issue in california its hard for traditional production to get back so the fall tv season is not going to look like a normal fall tv season and if consumers need to find content netflix still is the best place well, thats what i was going to ask you in terms of the what you need to hear on that phone call around production, you have some you have some companies trying to produce outside of the United States<\/a> in other places, you said netflix does have more content at least in the pipeline in the bag, if you will, for this fall, but at the rate were going, how do you start to project out what q1, q2 looks like if none of these services have new content . Well, look, i think there is a few things first of all, to your point, you know, there are places in the world you can shoot content. Netflix is probably the best at going off the grid last quarter they talked about their delays were more in post production so we will kind of have to get an update from there. Theres still a lot of content on netflix that most people dont even know is there many people have talked in the past about the challenge of how do you find content on netflix does netflix recommend it to you . And so, you know, i mean, for example, theyve been publicizing what is the most watched content to try to help consumers find content then i will go a step further. I mean, if you look at the content companies, you take disney, you take comcast, as long as parks and theme parks are a financial drag on those companies, i would imagine they are more likely to be willing to sell or rent content to netflix for shorter periods of time. I think the bottom line, netflix is the buyer of choice the debt market continues to underwrite them with quite attractive yields. Yes, Investor Expectations<\/a> are high, but when we think about this and, you know, they increase the disclosure last year around the geographic subs, they are only 15 penetrating asiapacific versus 60 penetrated in the u. S. And canada and then youve got europe and latin america in the middle. So i think its a multiyear story, this is quite intact. Right now they are the buyer of choice for content and, you know, i think theyre going to weather the next few quarters much better than the traditional companies. Do you see a shortterm higher margin because theyre not in production in so many places or are they using money that would have otherwise gone to production to buy content thats already been made . I mean, from what weve read and comments the company has made they seem to be holding a line on overpaying for content in the short term because back to my hollywood comment, i dont think people are willing to sell them content for their library theyre willing to kind of, you know, rent them content for windows of time. And my understanding is theyve been trying to hold the line and not overpay. Technically, you know, you would be seeing higher margin, but remember how this works, right they may be working on content if they start they are in production for a show right now, that show may not air for 18 months the amortization of that from a reporting standpoint would show up later right. Sorks look, i think if anything where theres more margin we know that advertising rates have come down, they can acquire customers cheaper. So its probably more of that. I dont think they will point to the hollywood shutdown as the reason for beating margins. Right and then from a competitive market share sort of perspective, how do you think about hbo max which is now obviously in the marketplace, peacock in the marketplace, you know, what does that also mean to the hulus of the world, the show times of the world, the other the other streaming networks sure. So, i mean, look, i think you have all reported how you basically have hbo and max and peacock launching and it really is no new content theyve tried to keep them kind of lower priced in the short term just to try to get people to subscribe and then a lot of these models are you forget you subscribe and it keeps going peacock, you know, does appear to be more ad supported so i would say that is not direct competition with netflix i still think it comes back to its titles, its original content. I think there was a new movie put out, what, you know theres still a new movie a week coming on to netflix and while, you know, it might not be what we call standard fare, they still have more new content coming down the pipe than other companies. Got it. Jason, want to thank you always appreciate your perspective. We will look for those numbers obviously after the market closes later today make sure you join us tomorrow, squawk on the street begins right now. Good thursday morning, welcome to squawk on the street, im carl quintanilla, with jim cramer, david faber live markets are red, markets digesting the twitter hack we will talk to james gorman later on this hour along with laxman narasimham. 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