Take a look at where we are trading about four hours of ahead of these earnings. Nasdaq going positive ahead of that print lots going on today. You have the trump tweet casting doubt about holding the election theres your market pricture lets kick it around nasdaq turns positive. Kramer thinking the stocks are set up for fall after the bell because they have run so much and yet you buy the cues into the print. Tell me why. Well, i bought the qs when the market was down because the market was down today based upon statements that came out from meadows saying they we are made far apart on a deal. Yet, you have some great earnings come out from the Tech Companies and qualcomm corevo. U. P. S. Also talking on the consumer side. I thought that the market was over sold. I bought the qs. I already sold out half of the trading position ill hold onto those a little longer ive got positions in every company reporting tonight. My exposure to nasdaq is long enough what jim points out its is path of least resistance. You have stocks up over 70 . Could they disappoint. Could they take the q that we saw from microsoft sure does it matter how im looking at investing going out six mo h months or a year no the a blip. Im not looking to add more. Whether they go up or down its not going to change how i feel or they go to the down side kerry, you own all of them apple up 78 amazon, 87 . Alphabet, 50 and facebook, 70. Are these things set up for fall or going to remind us why the gains happened in first place and its a blip, if anything and they continue to march higher and carry the overall market with it. Well, i think, scott, this is an important day but not to the extent this determines how investors will feel about the year these companies are able to sustain their business they are resilient every one is engaged on social media. People are buying things online. They are having better years and better quarters than the rest of the economy and if they go down, we have seen enormous amount of buying power coming into the market and they swoop in and buy these stocks on weakness which i assume would happen if theres a sell off because as you pointed out, the least successful of these is up in 13, 14 range and amazon into the 60 . The market is flat for the year. Whats more important and by far the most important data point this year is when theres a phase three study, a Clinical Trial that shows a vaccine works. If that happens in 2020, that is the most important date for investors of 2020. Josh, what are we expect tonight . Are these things up too much they have a lot to justify. I think the most interesting thing that can happen and this is not what i think will happen but you ask female this is a big deal its a big deal if they have Great Results and their stocks go down any way. To me, that would be more concerning than any other potential outcome. Its been a continuing pattern the only interesting thing i could happen is if investors say it was great news but im selling any way because pick your reason. What does that mean if it happens . What does it mean for the rally thats gotten us to where we are today . That would be very meaningful that would be concerning because then youd have to go to the second tier and third tier its no what i think is going to occur. I think these companies will have phenomenal results and go a long way toward justifying some of the multiple expansion we have seen. Facebook is your biggest position what are you expecting tonight are you nervous going into the print . Absolutely not. We did a survey of agencies and brands to talk about where are they spending their dollars. Facebook is by far the number one platform even with whats happened with the boycotts, et cetera, three fourths of them do not expect them to affect it because the platform is just too amazing to go elsewhere the last third, google and youtube. I do not expect these names to trade off in the aftermarket as you think about Retail Investors and smaller Institutional Investors, you might see movement around earnings here. 60 of asset flows are in passive mandates, the guys cant sell out of it they are rebalancing against where they are positioned and they are going to be there if youre a growth investor, you want to be with the leading names in tech these are these guys coming and reporting tonight. Court, you cant ignore the fact the stock is up 70 from the low. For all the reasons you just said its the leader. Its this. Its that. Thats why the money has flown into that space. Scott, its going to continue to flow there. That is my point where else are you going with are you going to get the roi on your ad spend outside of facebook, outside of google . You can see im going to trim facebook and go to snap and twitter. I think those names will get a bit of a bounce as well. Theyre not names i want to be in they will get a bit of a bounce of some folks taking ad tldolla and moving away. The highest roi they are getting are from the facebook platform you cant beat it. In search, its google you talk about amazon, alphabet im sorry. You talk about apple youre talking about Market Leading Companies that are not sitting by the wayside right now and saying were leading were going to sit back. They are constantly thinking about how to evolve their platform facebook still hasnt monetized whats app these names are names you put in your pocket. Ill pick where the stock was before the market sold off which was 220, 230 ive got a company thats still growing at 20 , more than 20 on the bottom line. Thats only up 10 this year from where it was before were seeing the stocks trade up those are traders trading into the print in my estimation hes saying if they make the print and sell off, then we have problems thats not going to be a good sign i understand what hes saying hes not predicting but im saying i think thats wrong. I think that is no sign at all itsgoing to be a sign that traders try to get into it late. Fundamental investors arent getting in now if they miss by quarter or a dime, stocks trade down. Fair. That will be my option. Fundamental investors, court, may not be getting in now but they sure as heck might get out if they think the getting has been too good and may not be as good moving forward. If they got into these names they are not getting out now in they had to trim because they are measured against a benchmark which is what i i have been doing. They have a benchmark to manage against. You might see selling. The market is trading at 20 times earnings and google, apple and facebook are in the 20s and arguably apple is a much lower multiple stock they are not expensive stocks compared to the market they have enormous cash flow and have been able to keep adding costs. They dont pay taxes havent these stocks seen multiple expansion the multiples have expanded. Not that much have the fundamentals gotten so much better for any of these companies and truly is apple selling anymore phones than it was before the pandemic hit . Is it Services Business just gang busters, more so now than it was before. Yes, it is. I think so. I think yes. I think they deserve a higher mull approximate but Earnings Growth has dramatically exceeded that of the s p. You look at industries that are just abysmal and i think you can justify much of whats happened to these stocks. They are nothing like we saw in the late 1990s its just not an expensive proposition. Youre talking about the value in the names the reason that money continues to flow into the biggest of big names in the nasdaq is because of what somebody has already said. The tenyear is at the low yield of postpandemic you have continuing claims which were terrible. Where else are you going to put your money doesnt that underscore why the stocks have appreciated the wap they have with these other nasdaq names that have ripped . Mr. Sajak, id like to solve the puzzle its the only puzzle that matters in my game, in Wealth Management we manage money for over 1,000 families we have this conversation every single day. Its in the highest 95 percent tile of all time those are your two choices earn nothing on your money and inflation eats away at you day after day or buy one of the most expensive moments in history for the s p 500. You can buy International Equities forr cyclical adjuste p p e. Nobody is making that case because its not real. 40 of the emerging market index is now china 30 is technology and growing by the day. You look at brazil, people think its oil company its not wait until you see the stock price and the l i. You have options overseas. The most investors have the home country bias 80 their equities are u. S. Stocks they are a way underweight and it hasnt hurt them. The u. S. Stock market has been way better over the last five and ten years. That looks like it could be starting to change when you look at the technicals. If youre trying to answer that question, scott, and that puzzle, what do i do for Additional Return above what i can get many the treasury but i dont want to buy the most expensive moment of the stock market ever. Theres a third option and that third option is International Diversification and with the dollar weakening, i think it will continue to work. Which is why joe has talked about investing in emerging markets. When you consider the fak, here we are talking about looking at our own economic picture and facing the realization that many economies overseas may recover faster than ours because they handle the virus or they are they already are. Look at germany i understand what josh is saying about the multiple. I think we look like hollywood scares when we look at the Screen International markets have the emerging markets are a much, much smaller market. If you overweight them too much then youre running the risk of being over exposed to commodities which many of them are tied to. False false. They are cheap. Hold on i dont want to do the talk over everybody thing. Its too hard to understand. Kerry is talking josh is saying wrong, wrong. Whats she wrong about false that used to be the case emerging markets in the brick era, which was the autos decade. They were extremely levered to iron ore prices. Thats no longer the case. When you look at the size and scope of their Technology Companies whether youre talk about 10 which trades on the pink chips here but its a blue ship there these companies are enormous and have nothing to do nothing to do with the price of commodities. We used to look at these things with the price of hard real assets that link has been broken for a long time. Is no longer applicable and should not factor into your decisions. Court, yours. There are certain Institutional Investors and certain folks that cannot invest in nonu. S. Stocks i, josh, like you, can tell clients that trade globally in over 80 markets across the globe but at the end of the day if you cant invest in those names, i love the multinational you talked about apple lets look at 50 of their sales coming from outside the u. S. Lets look at cocacola and starbucks and you want to play this reopening and you cannot buy alibaba directly or some of amd directly or some of the other names. You cant buy some of these Chinese Companies directly and put them into your portfolio, buy the u. S. To garner the access to it use that as an opportunity to play on those reopenings starbuc starbucks. Lets talk more about one of those multinationals sarah has a news alert on cocacola. Perfectly timed for us cocacola is getting into the alcohol business in the United States its launching hard seltzer but the explosive growth we have seen in hard seltzers. This is coming next year it will be first launched in latin america. Potentially another growth avenue here for cocacola chasing what is the drink of the summer i think it was the drink of is um summer last year locw calorie and low alcohol. Stock ticking up a bit on news youre delivering to us thank you so much. I like themanagement team a company you normally would say could just sit back on their laurels thats thinking about growth, thinking about creativity we are going to have to face this reality, are we not of our response to the virus from the outset has put us into the position where we are now relative to some of these other economies that others on the panel are suggesting maybe a better bet now than the s p 500. Thats not likely to go away any time soon, is it depends where you are josh said nasdaq has done well it will continue to do well. He talks about emerging markets. I dont disagree with having exposure out there comes down to the question of china. Econo china has the technology sure theres some companies there but its going to be dominated by financials. Other economies, other markets dont have the technology. Its not wrong, wrong wrong. Its a focus on china versus u. S. Its nothing wrong with being the Big Companies in china ive sued some of the Small Companies in china you have to be aware its not investing in the u. S alibabas accounting may be better than the others i own it at tend he end of the day its chinese company. You think should buy one of the emerging market etfs based on what josh has said today and the reality of whether our economy is relative to others. Italy and france are already slowing. Well see the other slow from the lift off qualcomm, well talk about it later. Why is it today . They all had a great deal with huwei. I can give you every deal and show you how they get business lets do this lets get more on qualcomm now. All trading higher after earnings expectations. Lets start first with paypal. The Company Reported an 86 rise in profits with overall payment volumes up 30 paypay offering up daet. Paypay is up more than 75 now to qualcomm, also beat on the top and bottom lines. It has positive commentary about chip sales to 5g devices also helping the stock the Company Announced a new Licensing Agreement and settlement eps came in nearly double expectations revenue was also a nice beat stocks are up 20 year to date happy man is steve wies you have u. P. S. And qualcomm, too. Ive always got corevo that killed it last night as well expect to see this to continue youll see the costs go up for retailers. Youll see the costs go up for amazon those margins will get heard because somebody has got to pay the piper. China is a manufacturer and buyer in the world i want to get a comment sorry to interrupt you i want to get a comment before i go to break. P paypal its our largest position we owned it for years. It was a phenomenal quarter. Whats most interesting about company like paypay and there are a few others is their business is better than it would have been if there had been no coronavirus. If you looked at the estimate, the end of 2019 and then what the estimates and the guidance are today, they are nicely ahead of those numbers many more clients, new accounts. Venmo has grown like crazy this is a perfect environment. We love this stock i know its way up but we still think its great good stuff. When we come back, target hit with the only sell rating on the street some of our folks own it as well pete will join us for a debate in our call of the day you can watcorisn uh ltetos live on the go halftime is back right after this music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. Save 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, everybody. Here is your cnbc news update at this hour. Three former u. S. President s among the speakers at todays funeral for congressman and civil rights icon John Lewis Barack Obama will deliver the eulogy bill clinton said lewis got into good trouble but calmed a will the of troubled waters and george w. Bush sounded a note of yu unity. We the people, including congressmen and president s, can have differing views on how to perfect our union while sharing the conviction that our nation, however flawed, is at heart a good and noble one Senate Majority leader Mitch Mcconnell telling reporters the president ial election will take place as planned on november 3rd. In his word, its quote set in stone, end quote they are trying to tamp down the controversy generated by president trumps tweet this morning suggesting a delay because trump thinks mail in voting will lead to widespread fraud. You are up to date thats the news update, scott, back do you. Appreciate that our call today slaps the only sell rating on target. I do not think its the right call if you need it today, guess what youre going to do, youre going to order it on your phone and driver up and pull outside of target someone nice and friendly will bring that out its going to be something they will continue to gifrt a profit on in the years ahead. Im going to have to talk the devils advocate side of thing and read from the notes. Mkm does not believe the online audience monetization to offset store concerns foot traffic underpnchs related to covid and offering more competing Retail Options i read the report and thought it was okay but i disagree with it target, you cant look at the history because cornell hasnt been there for the entire history. Take that out. Number two, i dont recall ever buyi ining other selling a stoc based upon a yelp rating there are a will the of other reasons. There arent that many strong retailers out there. When dar den comes along, its going to be target im feeling very one with courtney today were agreeing a lot lets keep her on the program. No more levanthal. Shes probably feeling bad about that i want to get to pete. Kayla has breaking news for us the United States senate has failed to advance a supplement to state unemployment insurance. Senate democrats led by Chuck Schumer objected to. They tried to pass their version of the s