Giving a lot of insight well be bringing you results apple, amazon, alphabet and facebook all report their earnings coincidence those four Companies Make up about 16 of the s p 500. Worth about 5 trillion combined and come a day after the heated antitrust hearing. Wolf, this is a good read in for you. For sure. There was meant to be three of those. Facebook got moved from yesterday to today after that hearing. After the close, we are waiting for two economic reports it is thursday, that means weekly jobless claims. Another 1. 4 million filed for the first time last week the first read on Second Quarter gdp. The economy likely contracted by 34. 7 . Both jobless and gdp due at 8 30 eastern time you look at those numbers down 34. 7 from the estimate we know it, weve been hearing from companies and what has been happening. Thats a lot of news to digest ahead of all of these reports. You are watching futures under a little pressure. Lets look at where things stand now. Dow down 206 points, s p down by 25 and nasdaq off by 73. Yesterday was an update for the markets across the board nasdaq up 1. 4 even though you had all four of those big tech ceos really getting grilled. Lets take a look at what has been happening with treasury yields you were watching the hearing that is still the case this comes as the fed told us that it is going to be hanging in there and continue to support the economy to continue the treasury and buy back. They do think there are some real pressure points on the economy. Well hear about that in a moment too well go back in time first all answering questions about whether the companies are too powerful a Video Conference that lasted more than six hours new companies are created all the time around the world. If we dont keep innovating, somebody will replace every company here today we have a policy to use sellerspecific data to aid our private label business i cant guarantee that policy has never been violated. We have open and transparent rules. It is a rigorous process because we care so deeply about privacy, quality, we do look at every app before it goes on. Those rules apply evenly to everyone we rely on the trust for users to come back to google ever day in fact, a vast majority of google, we dont show ads at all. Talking more about the big issues and what washington might do next throughout the morning i dont know how much of it you guys watched i thought some of it was fascinating. Some good answers, some not. I didnt think it was a major take away that washington was going to come down hardy thought the most challenging thing we saw yesterday was instagram and facebook and emails back and forth. If you really dug in to the emails, you would have a hard case to make even lawmakers going after the topic of the measures and the companies theyve taken over like whatsapp and likewise that they had tried copy some of the particular tools other rivals whether they bought them or not they use like the stories feature on chat. We conclude from yesterday that significant action is eminent even if we got a sweep the market takes series highs during the hearing that goods to the question of how much we should watch we had one side of stocks pressuring the other side we are not even thinking about thinking about thinking about raising rates. Rising at a sharp close. The idea that anyone would buy a competitor watching this yesterday was complete theater like it often is at the beginning, they were asking questions and not even letting them answer. Giving Congress People their time to talk i didnt feel like i learned a lot. I couldnt take my eyes off of it it was theater we had that classic, you are take up my time from lawmakers compared to 2018, they were better prepared. Even if it was them making arguments rather than letting them answer, they brought up more facts whether amazon was using more as apple was misusing the margins that it takes. They were getting at the crux. It didnt spell eminent danger at the tech stocks because of that one note issue you were discussing was an interesting one. Being eamon oply on it selfisnt illegal everybody wants to buy a competitor interestingly, fur deemed eamon oply, it is not illegal. If you go back and read emails of Mark Zuckerberg, he doubled back because i think he realized that given that power, that he had to almost rewrite the email later to suggest, no, no im not trying to do that. He was thinking about this in 2010 can you see how hes tracking in his mind the way he was thinking about it yes, everybody always wants to buy a competitor but the size and scale these guys are at now, it is hard to do that. His answer was that the ftc had all the same information at that time and they approved it thats going to be the other interesting element in this. Will the government or would the government be willing to go back and effectively unapprove. There has been cases where the government has approved a transaction and relooked at deals they approved years ago. It does happen not impossible. As somebody who lives in a family of antitrust lawyers, this is what we talk about all the time jim cramer has it right on this he was talking about it. This is really one area america 5 excels we have so many other places weve fallen behind. This is the place we dominant and we are great at. Hopefully we can come up with some way to regulate without squashingthese i agree with that. Talking about other big stock movers there qualcomm shares are trading at a record high breaking triple digits for the first time. First Quarter Results beating forecast thanks to a settlement with huawei that licensing deal will add 1. 8 billion to what we they are owed and a new longterm settlement shares of qorvo are jumping. Helped by strong 5g sales. That stock is up over 7 this morning. Abi bef which topped estimates as well as bars and restaurants began to reopen. Shares rising on that news that stock is up just crossing the tape, ups shares are on the rise after earnings doubled revenues beat expectations ups up 36 , 131 some pretty soft earnings reports coming out in europe the likes of groups there. The german dax down about 2 still to come. What investors should know about jay powells next move breaking out with the premarket winners and losers some Companies Still have hr stuck between employees and their data. Entering data. 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. Welcome back fed chairman jay powell says the surge on coronavirus cases is weighing on recovery Steve Liesman joins us with more on that story and a look ahead this was a big story yesterday kind of torn between the tech hearings and what jay powell had to say too a lot to take out of both. Nobody did it better than cnbc covering two stories. The street looking for a 35 decline in Second Quarter gdp. It overstates it joe biden expected it to fall that much. It will be the biggest quarterly decline as the coronavirus shutdown ground the economy halt consumers stopped spending, businesses stopped investing the rebound could not overcome the stan still in april. Estimated to rise at annual 17 First Quarter our estimate is about minus 6 they werent so much concerned about this plunge of new virus from the rebound the fed kept this unchanged and said it would maintain that range until the economy would weather those changes. Suggesting the recent outbreak and reclosings weve seen in businesses were weighing on the recovery indeed, we have seen some signs that the increase in virus cases and renewed measures to control it for example, some measures have moved down since late june recent labor market indicators point to a slowing in job growth especially among slower businesses a slow recovery are unlikely because it is safe to engage the statement added that the state of the economy in the course of the virus in considerable return. In the 3k sho 00 question back jn back in june, he said we are not even thinking about. Yesterday, he said we are not even thinking about thinking about thinking about raising rates. He added another thinking about. A trifecta of we are not thinking about it. We just played an outlook. One would say that was not particularly new at the margin, we are not thinking about it, was interpreted as more committed. Way did see rise to all of that, the dollar weaken and the dovish margin we would expect im not sure how much Additional Information that adds showing that market that the fed will be on hold to august 2022 when i look out to fed futures, i forget when. Well out as far as we can see, there is no rate hike built in the fed has succeeded it will be convincing the market it will below for some time. Affecting the spread and maybe the hard target or hard Forward Guidance about when it will raise rates relative to inflation. That will come in the fall the market can put the fed and dovishness in the back pocket for more than a year hard to think the fed would add any new information unless it did launch a formal qe program willia william sprigs i think it was an attempt, as you were saying, to cement in peoples minds that the fed understands the situation. I think the fed was really talking to Public Officials that have been receiticent and by assuring them that they dont need to fear Interest Rate hikes in the face of these deficits. I think this message is really intended for them. There are a lot of clips we face if we dont see a fiscal response immediately the most important one being the loss of 600 a week to unemployed workers the second in dramatic drop well see in state and local expenditures if the heroes act doesnt get its way through the senate to what extent does that affect your outlook of growth in the second part of the year. If there is a twoweek to a month delay. Is that Game Changing . It is Game Changing right now. When you look at on time payment of rents in july after we recovered for may and june, they became delynn kwent at the same rate we had seen in april without the 600 the argument we have about 600 is really silly. These are a bunch of republican millionaires standing on the edge of the titanic arguing that the people are better off in life boats the only group of consumers we have been able to stabilize are the people at the bottom buying the necessary things paying rent and buying food. Thats the only group weve been able to stabilize. At the higher end until we get the virus under control and have greater certainty. In terms of the outlook as it relates to the latest outlook, we have seen some improvement and the death rates and numbers pick up a bit in the last couple of days. Which is the most important in terms of the economy is there some lag in the death rate that should follow in the course that weve seen it . Thats what the data suggests just thinking about this this morning. What the optimists do is point out when the cases surged, they said the death rate is low they are pointing out that cases are rising and going down. The way theyve looked at all of this information theyve ht ability to really ignore the flattening that powell has talked about and we talked about several weeks ago the same data the fed has been looking at because there is so much liquidity around it and the believe we are going to get past this recent surge and some of the data in the south and west looks to be flattening and the death rate, even though it is climbing remains lower than it had been if i could talk to bill spriggs. It was 10 or 15 years ago you and i met in jackson hole. Could you imagine a more stark change in Monetary Policy that powell is now openly saying that the goal of the fed is to get back to 3 Unemployment Rate its an aggressive change in policy, whether they follow through with that and look through a possible increase of inflation, it is a stark change and one worth noting i absolutely agree with you you will recall when we met, it was over getting comfortable with getting to this point and the commitment to stay on course to consider employment in the way that they are doing now is a huge sea change and very welcome. Steve, can i ask you quickly, yesterday, we talked about the holes of any of these plans. The idea of giving more money to an area seeing a higher Unemployment Rate doesnt seem fair to me the idea of the fed doesnt seem fair to me either. Saying it will reward the states and i cant think of anything that seems particularly fair in this situation there is none the 70 thing is regressive. People who make more get more. People who make less, get less the other problem is if you were to do a flat number. That is a Different Number than in new york or california. I know. Because of the cost of living. There is a good number. Go ahead, bill people overblow the iss blow living it is very expensive to be poor in alabama the idea that costs are low. No state transportation. There are a host of things that make it poor in alabama. If you are a highincome person, you are looking at the cost of housing. If you are a poor person, you are looking at the lack of access to transportation and health care. An unemployment cant fix all of these issues. The issue of the 600 is that many of these workers are going to face permanent job loss for them, this is the same as a plant closing. They have very specific, firm skills then we need to be thinking about retraining no. This isnt just retraining if i work three years at a greek restaurant and it closes, that doesnt translate at an ethiopian restaurant i have to be retrained what is your recommendation i dont know how to fix for Something Like that. Yes, you do thats what the 600 is for. That is our makeup for the fact that people are facing permanent job less when you lose permanent jobs you dont just want to give 600 out we help them give another job. Are you talking about permanently paying out 600 a week no. We have to anticipate when they get back that we are going to need people to have been made closer to whole. This is not a regular recession for those workers we have deman and you have to think about workers for whom the 600 was intended bill, we have to go i agree the problem of the 600 and the incentive might provide people to stay home is not an important problem in the next several months over time as the mark elt gets better, you do have an incentive problem. Do you agree there is a problem over time and if you do agree, how do you solve it . Oh, this is when people are talking about triggers of when you might ease back but to cut it off now creates huge problems so whats the trigger, bill when we actually can be confident that the economy will recover. Those workers are looking at longterm unemployment now they are looking at how do i stretch my dollar the farjest. You cut it off now, their consumption will be dramatic thats the only income group for which consumption has been stabilized yes, when we are at 5 unemployment, it would be silly to say you need 600 but at this moment, it is equally silly to say the opposite of that gentlemen, thank you for the conversation an important one well continue. Wed love to have you back steve, thank you also. When we come back on the other side of the break, the race for the covid vaccine. Bringing us the story of the u. S. Armys fos. Efrt stay tuned for that here on cnbc [indistinct radio chatter] vo audi etron. The next frontier of electric. Get an exceptional offer at your local audi dealer. Right now, switch to tmobile and get four lines of unlimited for just 25 bucks a line. With access to americas largest 5g included. Thats right. Unlimited and nationwide 5g for the whole family for just 25 bucks a line. Only at tmobile. Still to come this morning, tech under fire. Well talk about the big issues at the congressional hearing stay tuned to squawk box here on cnbc. As business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. Welcome back lawmakers came out swinging at the historic antitrust hearing called emperors of the online economy. Sparking a few intense comments. We have more now good morning. Bezos didnt even get a question until nearly two hours into the hearing apparently due to a tech glitch the pressure was on. The representative with some of the most pointed asking if amazon accesses or uses thirdparty seller data to make decisions. He said he couldnt make a statement that has never been violated they also talked about undercutting and if alexa favors amazon products. I dont remember that at all. I think we followed diapers. Com from 11 years ago. We offer to get you information. Ill get it to your office for you. I read that article. I dont remember the piece i dont remember the specifics of that. Id be happy to get back to your office with more information about that even if he didnt say much, he did strike a steady tone in his first appearance before congress the questions were all over the place. They did manage to strike at the heart of the antitrust issues that have been building regarding merchant data and counterfeits a lot of issues there i am not surprised that bezos wouldnt recall details from 11 years earlier. Watching through, who did you think got the toughest i thought pichai was hard hit with things alphabet is doing. I agree i think they all got tough questions. Certain certainly p certainly patch there is a lot of back and forth yesterday but now we have the documents we can go through a lot have been made public. We can see email ex changes between bezos and others like the acquisition of ring and others bezos has stepped away in recent years but there is a lot to weigh in on. It is a good first step. Thank you great to see you this morning. Joining us now is annis chopra, current president of care journey, Health Care Analytics firm thank you for being here thank you for having me again. Ill put the same question to you. After watching what happened yesterday, which one of these four companies and ceos is in the most pearl is position it depends on the nature of the intervention in my opinion, there may be a broader policy move in washington to revisit some key assumptions. If those change, it might affect the industry as a whole. Namely, this c