Close today . You can take microsoft first, and whether its a referendum on tech itself . I think microsoft could be. I believe that one of the things we have accepted is a way from apple i listened to the great report on jamf, the new ipo from carl and jon. You have apple news that its doing very well, and that was, and then microsoft, and then we have this chasm before a lot of other companies. We feel that kind of covers everything microsoft does a lot of stayathome microsoft has the lawsuit filed against thoem against slack but most important, microsofts azure has been growing endlessly and fabulously a lot of people think faster than Microsoft Web services. If that continues, i think the stock goes higher. Pete, if this report comes in well, people will say thats why all that money had flown into tech to begin with thats why the mark is where it is if this number doesnt come up to snuff, people will say i told you, these stocks went too far too fast, and microsoft is case study number one jim brings up so many points. Their growth levels right now, when you look at them balanced again aws, its not even comparable they are making some room, and they are pushing themselves into the world that aws owned for a really long period of time then you at in teams look at the growth they had just since late april i you take a look at those numbers, they are growing in all the right places, scott. So i think we are expecting i am expecting this to be a monstrously strong report to give us huge numbers. It better be with a stock chart that looks like that how did it look like that hand not have a blowout number . The bar, pete is high. It is really high, but you know what . This is not just this quarter this year story, scott this is a multiyear story from the time satya took over and refocused this company when everybody had to completely shut down and be out of the markets and be out of the stores, who does that favor . It absolutely play it is right into microsoft, where they are, what theyre doing they better beat and better beat in a big way i absolutely anticipate they will. Steph, is microsoft too expensive . Is it worth that well, it is expensive the setup is not terrific, so people expect all things what jim and pete just said they tough the end points seeing such strong momentum we have idc growth for pcs alone up last month 12 . Cloud, both jim and pete mentioned Constant Currency growth last quarter, but the total address is 600 billion by 2022 so they should continue to gain share and see gains not only from amount zone, but market share, and then, of course, the stayathome trade this is a core position for me it almost reminds me of a compounder jim, how do you an the question look, i think were in some sort of moment where people are doing relative analysis. S . Doing so many things right, so much better, they want us to say, well, look, this one is growing faster than the major companies, so weve been to give it some multiple that recognizes how fast it is, but its not like you come back and say, that deserves no more than 30 nothing should have more than a 30 multiple. I was as long as its 20 times sales, these are painful, but i dont know how to value it other than to say its worth more than a lot of other companies. That may be fatuous logic, but i see what theyre doing with azure, the Addressable Market that steph just mentioned, i come back and say, i dont know, its worth most of the fees i follow it is unique and it is doing well i know it doesnt sound like great logic. You can drill that 210. 71 bid for 10 million shares, and you only knock it down about 17, so lets say even if it goes down, the buyers will come back. You just said something i find so interesting, this idea of not knowing how to value Something Like microsoft the fact of the matter is we dont know how to value everything in this market. Youre taking leaps of faith out there, and then hoping they hit the number true, but look, lets go to netflix. This is my problem netfl netflix, what did we do . We basically said our business will not be as good as next quarter. What if that stock immediately plumb mets, and then step by step, inch by inch, its coming right back, and netflix is a buy. We all know these stocks are having a hard time being kept out. Theres a whole new cohorts, they said to make money and make money now. They buy netflix, buy microsoft, and they do distort the buying, because most of the buying had been index funds, so you get new buyers come in, and look what happens . Retail buying doesnt have to be stupid money, it really doesnt. Remember what microsoft said on their Conference Call will be they saw two years of digitization happen in two months time thats a huge statement to make. Its so powerful we are a technology economy. It makes us more efficiency, more productive, helps us communicate better and stay at home work from home is only reinforcing that for any end market in technology, i think those numbers are probably understated at this point. Thats how you have to value some of these companies. Theyre returning it to shareholders and pete, steph makes the big cakes the comeback is, well, theyll just buy it. For all of the reasons that stephanie link just laid out when you look at many of the names the fundamental story is there. Also, i think you have to look at microsoft and say if they 108d it out of for the wrong reasons, scott, yeah, 2shd be bought, which is great Revenue Growth, great Earnings Growth lock at their cash position, look at all the different fundamentals, growth, year after year, quarter after quarter, its there theres a lot of good reasons why. When you say at a 30 multiple, its high well, it used to be high but you have to factor in the fact that were looking at a Revenue Growth thats 14 , 18 13 is the new in 2000 we all wish we had trache every single one of them. Sunol march 13e9s, you were debt wrong if you did that. I listened to best buy, the personal computers is doing very well, and i come back and say microsoft, microsoft, microsoft. You cant say all of these companies are losing money, theyre all going to go down the drain. Theres all insider trading. How how do you look at microsoft and whats really riding on it the expect idle are going to be high, service and tools used to be the business. The business has completely diversified. Who would have ever thought that servers and tools would be overtaken by other components. So is 30 the right valuation who knows, but the world that is now absent of growth, this is the only play is if youre allocating into the market right now microsoft is the place you feel as though youre going to get least hurt on a decline. They are going to experts i think significantly more volatility im fine with that im not sure the earnings will disappoint, but the expectations are high, and it is absolutely a number one core holding in any portfolio. What do we make of whats e rying on it es la. Yes, tesla is a Technology Company tesla is going to experience d. And theyll be included in the s p 500, and well look at them as a battery company. But when i think about the fundamentals of the company, you say to yourself the first thing i would be doing, and was elan musk, i would be announcing a secondary. Thats the right thing to do in terms of managing the business and never really participated before so they could either up or done, be prepared for that im not willing to participate in that type of volatility when i said that it was raised to 800, and as you know, the stock is trading way above that. So is it time to just take your stuff off the table and get out of this thing . Whats the story here . First the analysts have been well behind this you say, boy, i hope scott wapner doesnt see this on halftime report, but maybe he spots it its one of the reports that kind of came out uhoh, he didntment are mention it, did he if musk says i need to build ten factories, and i have the money, and next thing you know they have a september 22nd battery today. Its going to be a nine to tenhour boughtry, and we can say, maybe its the only environmentally good car in the world, so what is that worth you wrecked the guys weekend. Hes a great guy. Im just saying, right some analysts hold firm to their believe that they are overvalued sometimes you cant just eat a crow, but a whoa amount of birds. You know, when the birds killed suzanne pleshette, theres so much crow to eat, and maybe you have to come up with a new recipe is it its own standalone store . Or nothing to say about the momentum every few years theres a company that catches peoples fancy, and then you try the product and its usually awful this is one of those, what happens you get in the car like i did, and i was a doubter, and i said oh, my god, my daughter wants to buy one, my wife wants to buy one bill ackman bought one he actually said i bought a tesla. But he bought a tesla theyre just waiting for the stock to drop. And theyre begs for that supply, where is the jon najarian, where is the supply . At what level does the supply live i cant see, is that peet its p. J. , pjon. My take has been the same for a long period of time. Gene muenster said a long time ago this is a tech company, not a car company. Hes always stated, i think gene just said, this is what it is. Now you talk about battery superiority, and the you can improve the soft way and get downloads. Its an absolutely amazing ecosystem. Thats why it says this was a lot like what apple was a long time ago. Yes how about the no, the ekecosystem is comin up a new [ laughter ] you dont own the stock, though, pete ive always said that very rarely i think i owned the stock once, but ive traded many times the options. So youve got to be not in the stock necessarily you understand how much risk you have at any one time its done reasonably well, but thats the way to trade it thats the way you play tesla. The to be is far too volatile. And thats the thats it thats what this is about. This is the most animal spirited tech stock i have ever seen. Pete first, steph, then joe. Not only have we seen thats an interesting stat, but i would say if you look each and every day it doesnt tell you a lot about the direction, but from a volume perspective, tesla is somewhere in the top three, four or five almost every single day. Most of the time when youre looking, you can see a huge moving so it is something where you see a lot of volume each and every day. This is fear of missing out, chasing,s theres 10 Short Interest on this thing, by the way. I missed it. But i do think its going to be good competition. I think youll have formittable competitors. The one thing i actually misjudged on this. This is absolutely an esg play it is 100 esg. Its hard to not look at that chart and think, what in the world . Its a double in two months . Its not really a stock its something else. Youre a seasoned guy. Im not using the word tesla, i cant. Im not using the word stock on tesla. Tesla is not a stock, what is it lets just state the obvious t the. Is it a stock [ laughter ] this time last week tesla ways 1750 the 2500 calls, pete, that expired two days later were traiting 17 but not just the actual Short Interest, but who those people are that is shorting the stock i think a lot of that double can be tripped to the unwind of the short positions. Tim lebeau said he was rated top car for appeal after being last in quality. Regardless of whether you think the fundamentals match that story or not. It has a cult following. I remember when jim stewart came on he came on with 175, and jay leno had said just buy the stock. Jim stewart said, look, if you like this is one of the few things if you like your tesla, you buy stock tesla itself is a converse machine. If head ten plans, they could sell out you know hes going to take about being sold out in china. He tops every benchmark i refuse to call it a stock. Its very hard to have this thing be stopped dont you dare call it a stock. Im never going to call it a stock again. Its something else. Rahel, theres a number of wellknown names hitting new record highs today lets talk about a few of them best buy, chipotle, home depot, lowes, to take a look at best buy after the Company Announced the sales are up 15 also online sales have more than tripled, says the computers, appliances and tablets are really performing, driving those sales. One of the best performers right now in the s p 500 then you have the Home Improvement company, so the home depot, the lowes, they continue to be the stay atdarlings. After top earnings estimates, that stock is up closer to 2 stay with us, rahel, you could throw in a fastenal, a cummins, the list is long and distinguished of the stocks hitting new record highs a lot of them are not the marquee tech names theres a good amount of cyclicals, industrials, things like that. Texas instruments has been incredible we are still seeing incredible numbers in the cyclicals that have reported. Unbelievable blowout quarter, the stayathome, fix your house up, how do you not like that the housing numbers today were absolutely fantastic existing home sales climbed a report 20. 7 . So youre just getting a lot of positive data points you see amd is stuck, almost every single day and suddenly breaks out . Why . Because Texas Instruments and betts buy says it should people all of a sudden love the i added it to my portfolio last week jim, you know this one well, ppg, i actually bought and added it to the position, because its a combination of do it yourself, and in the most recent quarter, 10 growth in do it yourself it shouldnt have been down, but you know, people are focusing on auto and industrial exposure thats troughing now, in my opinion. You have momentum in diy, a turnaround story in auto and industrial for next year the stock is really very cheap free cash flow, so and they have a cost savings program. So thats the one i am playing i own home depot i kind of feel like those have been picked through a little bit more than this one one of the things that just shocked me about that one is people decided that it was not up to snuff, and they didnt look for it deep enough to realize it does have this auto play, and i want auto. I really want it badly here. Thats why you want Texas Instruments. Oil hurt them 20 down, isnt that the time to buy thats why you want it. Its totally a trough. You have to bay something related to auto. You made an interesting point on squawk on the street earlier today on the catalysts for the market overall stimulus, right, assuming we get it masks, right the president coming around and deciding its patriotic to wear them pfizer which speaks to overgentleman vibes hopes, those are all statements about the market itself, are you saying that that keeps the market from having any sort of pullback of magnitu magnitude . Thats a triple play, but if you get the triple play, yes i have nancy pelosi on tonight if the speaker cant come to terms with mnuchin, youll lose the stimulus good Conference Call with capital one. I think you will get a stimulus maybe its the 11th hour, maybe we sell off a bit, but they have really no choice at this point actually ive been hearing a bit higher than expected just a couple weeks ago it was 500 billion ive seen numbers as high as 1 trillion. You get that, you sell the news thats my plan. I wonder, jim, if you get all three, what that means for the momentum versus the reopen trade. Is that what finally forces people to roe rho taye it mailings my feel like you have to own a lot of calls if we get the triple play. Pete, what have been doing lately in the market really aggressive, scott. I know you were gone for a little while and wilf and great people filled in, and i said everything has been bullish, bullish, bullish we have almost continued that same theme, but everything is also very short term this is an absolute monstrous trading environment, because most of the options we are seeing being bought and sold out there are either expiring friday, the following friday or very early into august really rare i think i was on last wednesday, i think i sold about 30 differentingses on the caused sigh and probably added back about 15 positions on the call side. But weve seen up, up, up now that its down towards 25, far more options, far less stocks. Thats exactly what youll see i have definitely doubled my option positions, and my stock positions are probably coming down a little faster you buy when theres panic and you sell inflated volatil y volatility we were at 84, even into the 30s, im finding less and less opportunities to sell options. Lets be clear. You bought new call buys on starbucks, chewy, im going to save financial until after our break. Snap, draftkings, which you already own the stock in phillips 66 and freeport mcmoran. Jim, what do you make of that . I like everyone, the toughest one for me is starbucks, because i dont know about china i still think Kevin Johnson has to keep spending to build enough star becomes because its a line company. If you go to an airport starbucks, the line might into a boeing dreamliner, its so bad thats the only one i question the rest of them and free port, i dont floe freeport before the quarter, gee, thats a tough one. They had a very big move i talked to mark britt to hes got tremendous copper wrrnt you guys shocked. Can you believe that . Are you watching some of these crazy moves . Those rahels list. Give me some other new highs. Absolutely. Buy right to the print at one point there was not so much, i think its trading negatively, but those are some decent names spotify. Spotify just had a new deal lab corp, they have too much business, thats a great problem. How about Intuitive Surgical . Did president pull fauci, or is he still pitching im hearing the president might throw him under the bus and put dr. Birx in there. How about monster beverage . Make this the last one. The country is openings up we heard that from pepsico its time to buy monster is a buy all right rahel, thank you you handled that well. We do have some calls coming up well get a debate going about that and a reminder, you caalysn wa listen to us live on the go on the cnbc app were back in two minutes. Our Retirement Plan 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. Now you can trade stocks and etfs for any amount you choose instead of buying by the share. 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