S p 500 few you ares up 15 the nasdaq with a gain of about 1. 7 all because of what is happening with four big horseman check out shares of apple, facebook, alphabet and amazon. They went before congress two days ago and came out with earnings that knocked it out of the park on every one of those counts three of the four are trading sharply higher apple up 6. 1 , facebook up 5. 8 , amazon up 5. 4 alphabet did beat earnings estimate did post the first revenue decline and is down 0. 67 . More on those in a second. Lets kick it over to wi will everyone wilford. Good to be back extraordinary numbers, as you said well discuss those in a moment. First check out this mornings agenda as we are closing out the week well bring you results from cat, chevron, exxon and merck. Kol gate, underarmor and others. The late day of july lets check out the market score card owl three major indices on track for the fourth straight gains. Nasdaq the big oner up 18 month to date up 5. 2 . This past week, back to resoundingly positive momentum speaking of tech, we can dig in it is the big story of the morning, facebook, amazon and apple beating estimates. Starting with apple. A big headline there a 41 stock split. Everyone who owns a stock will get three more shares. Working on a split adjusted basis as of august 31. The last one came back in 2014 and helped the case for adding it back then to the down yesterday, apple said in the recent move, it was an attempt to make the stock more accessible to a broader base of investors. A lot to debate over the years about stock splits they do make it more accessible but does it make it more valuable there is research on both sides of that debate growth in china driven by strong ipad and Services Revenue guys the one you are pointing to there is apple we have gdp prints on the quarter. It does point for that very bipolar economy the fact that iphone sales beat on the quarter is impressive well discuss that on the stock split but we have earnings crossing the tape. Let me tell you what is happening this morning caterpillar out with earnings and it looks like they came in with adjusted earnings of 1. 03. Better than expected revenue came in at 10 billion the street was expecting 9. 76 billion in terms of revenue. Down from the Second Quarter of 2019 the company is quick to point that out 31 decrease from Second Quarter 2019 in terms of the revenue that they were looking at. The decline was because of lower sales volume drichen by lower user demand. They do say for the full year, theyll see an impact from covid and that impact taken around the globe. They are not given the forecast for the full year. For the quarter, down from a year ago and reflected in the stock. Caterpillar shares up 2. 75 . They say they are well positioned the chairman and ceo said they are proud of the global teams continued focus on safety and they are prepared for what comes with this. They withdrew their Earnings Guidance and not providing a Financial Outlook becauses it too uncertain and hard to say whats out there facebook is forcing growth back sale looking at shares of facebook. We did glance at that earlier frmt probably 5 dol 8 increase. The ad boycott was not reflected in these numbers we wont see exactly how that plays out until they report next quarter. The comments werent too depressing on that front for the earnings clearly the stock didnt shake in after hours trade user numbers are amazing for that size up 5. 8 . Coming in at 10. 30 a share. A massive beat the 5. 2 billion profit was helped by the surge in e commerce and shares of amazon up 5. 4 i dont know why that is such a surprise amazon is my first stop. I go to walmart and target it is so easy. Everything gets a first look there. I wonder why it was that big of a surprise it was one of the companies that was lower in a few months it was a tough setup in terms of revenue and what theyve done in the short term and it smashed it the aws revenue if you have one picking for the whole. The cloud numbers for microsoft, we are about to come to and aws, we are always in line. Going to the cloud and that speaks to growing competition in that area. You can almost say that in regard to that revenue that part of the business everyone talks about as beg the most profitable and warrants the high multiples is trying to pick a hole for amazing sets of numbers. I was going to say on the aws piece and i think you are seeing it on all the cloud pieces whether we think these companies are bell weathers or you can extrapolate anything about the economy, what does this say about Small Businesses by the way, just on the way of the amazon if you remember, there were some that seemed frustrated with that you get called before congress and you have block buster numbers like this and you are not doing spending like that raising wages and making sure you are doing testing, you are really going to get raked over the coals. It was that cost control that allowed that extraordinary bottom line beat it is significant move in the right direction. No one really cares about that extraordinary move in the quarter. They would be able to write off the bottom line at the moment. With a beat as well. Again, both in apple and amazon, globally impressive. Not just a u. S. Beat andrew, it comes ba beick to tht point. On the morning, we get spanish gdp down 5. 8 on the quarter just the two sets of economies around the world, which is a depressing thought actually. Finally, talking about alphabet when i keep saying, how much can you extrapolate out . Top and bottom line numbers, topping estimates despite reporting First Quarter revenue. Revenue drop in the 16year history for the company. They did tell investors that google ad sales fell take a look at shares this morning. They are off about 10 10. 35 right now not trying to pick holes in an amazing night of earnings flat year Revenue Growth still on 35 times price to earnings for that company. Kind of the cheapest of those Tech Companies the cheapest of the cheap paying 30 plus and maybe it will start slowing again in the top line growth. The other thing i wanted to go back to is that apple stock split. Clearly, it Means Nothing for the overall market value of apple. It will make a difference in terms of the Share Holding given that weve seen all of the brokers transform what they offer by free trading and stock splits they can buy portions of shares before it was totally inaccessible before making them slightly transferable. This will lower apple from being comfortably weighted to being a quarter of that number i love the way you say stupid it is it is ridiculous you stupid, it sounds better. It is stupid. The likes of johnson and johnson and goldman sach might now see a benefit in the margin as they are waiting for the index that people track that will be at the top of it. Again, that is quite interesting that goldman has a higher waiting and the dow despite a comfortable growth because of its price. Just fascinating but stupid. It is worth pointing out too that these four big stocks are probably the reason that the markets are doing so well when there is another huge story out there. These four stocks make up 17 and that is why you are seeing such huge gains despite the fact that there is another big story that would be turning stocks in another direction. Thats the stimulus debate lawmakers have failed to come to an agreement to agree on extending the federal jobless benefits we thought we had a deal democrats tri democrats tried to pass a 3 trillion gop rejected that. Negotiators plan to continue talks today. Well see what happens when those checks stop coming in and what that has meant to the underlying economy if it is only a brief delay, it will still have significant impacts. There is a relatively small but growing risk that we dont get a deal at all. Thats not expected but clearly if any delays someone has their key open. I hear every comment you are making can someone just turn that key off it is interesting with all the futures up to remind ourselves that this time yesterday, we were massively lower and close higher massively on the day on the nasdaq which was higher the macro policy concerns. The week as a whole is set for strong gains for all three indices in july. Particularly strong. Still to come, dr. Scott gottlieb on the top coronavirus headlines. We mention futures are higher today largely because of those tech names cat helping there with the numbers. Expecting a massive gain for the nasdaq and healthy gain for the other indices too. We are back in a couple of minutes. [ engines revving ] its amazing to see them in the wild like th shhh. For those who were born to ride, theres progressive. Lookentertainmentour experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Welcome back there is concern of potential coronavirus case china reported highest number of daily cases since april. Hong kong with new restrictions. Japan with record daily infections france, spain infections are increasing joining us now to talk about this and more is dr. Scott gottlieb he is former fda commissioner and cnbc contributor he is on the boards of pfizer and illumina thank you for joining us you and i were texting about this with err seeing a rise in places like asia and europe you think theres a real risk, there is going to be a decoupling between the United States and the rest of the globe. We are seeing it right now. If you are an american, you cant travel to many places around the world United States is a handful of countries where travel into and out of asia is fully restricted. You cant go to europe or china right now if you are an american when you look at these other countries. You are seeing outbreaks it remains to be scene whether theyll be able to control that. They are taking aggressive action there is some assuming theyll not get heavy epidemics in the fall and winter. They have the means in place with testing, tracking and tracing to keep the infection at bay. That remains to be seen. If they cant do it, it will be very hard for states that have gotten virus down to lower levels to keep it there. When you look around the world, you are seeing the United States get decoupled from other countries in terms of our experience that could translate to lost opportunities for america relative to the rest of the world. Lost opportunities like what . Slower gdp growth the risk of slipping into a recession. The ability for students to go to inperson learning. Lost Business Opportunities because we cant travel abroad asia is allowing travel. The United States is being isolated from the rest of the world right now. There are coordinates put around the United States for other countries wed be engaging with. We have not paid attention now because there is not a lot of places we want to go as things evolve and the rest of the world keeps this at bay and they dont have have outbreaks. That will look sharper. I dont think well be able to crush this we have a rotating series of regional outbreaks well be able to get under control and will start to burn through heading into fall and winter dr. Burke said yesterday if everybody would wear a mask, we could get this under control do you think it is too late for that i dont think it is too late but you need to do it on a National Level with a uniformed approach the combination of wearing masks, shutting down certain congre congragate venues and keeping gatherings down. You do see the cases starting to come down in arizona what theyve done is close settings like bars, limited capacity in restaurants. People have become more vigilant in that state and you are seeing more adherence to masks. That seems to be enough to bring the levels down. Whether thats the combination that would keep it at bay in states like connecticut and michigan we dont know. It is a possibility. You need more uniform approach you cant have some states adhere and other states with the pandemic andrew, you had a question . Doctor, talking about National Testing and more National Program i want to ask you about a story that appeared in vanity fair i know youve been in touch with the white house. Apparently, there was a group led by Jared Kushner in march and april developing a National Testing program, beg able to surge testing to different states and get ppe to different states on a National Basis that plan was leaked to the magazine were you aware of it do you know what happened to it . It was later shelved in part was the president decided testing was not in his political favor at that time thats a good reporter. She used to cover the fda, so i know her i cant voug for it. I did read it. Some elements of that plan were implemented. The plan nationalized the market from the testing certain aspects of the supply chain for testing. Getting agents pipettes. The government did take steps to move the supply around the country. In some respects, there were certain elements other elements particularly around trying to create a National Market for Testing Services themselves. What we have are state markets for the testing. You really only swing the capacity in quest and large commercial labs that are able to have some excess capacity. Labcorp is doing about 180,000 tests right now. Theyve swung a lot of that into the south because that is where the epidemic is. Thats the only swing capacity we had trying to create a pool and move it around, that hasnt been done just on that point, if we have that swing capacity that is taken to where the outbreaks are, does that mean we have less testing in areas we think it is calm and under control and will have less notice if it sneaks back up . Ares that exactly right the reason there is delays in the northeast for testing isnt because of a deluge of cases but because that capacity has been moved to other states. They are spreading their delays across whole countries they are not just going to have delays in florida. Theyll try to move around capacity i think thats a real risk so that if we fall behind, they could lose control of it this is a risk looking at opening schools, you look at can you do testing you cant detect outbreaks in 24 hours. That is a risk in opening schools. If you want to detect an outbreak, you need to get the tests back thats another factor when we look at whether or not we can open the schools not the note i wanted to end on thank you. We appreciate your time. Always great talking to you. Well see you next week. Coming up on the other side of this break as washington debates the next version of the stimulus bill, well talk to robert frank with a look at some of the less talked about items on the tleab got to hear about it well tell you about it when we return after this. Rced camarade. And you should be mad at tech that makes things worse. 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Wealth management. Pampers the 1 pediatrician recommended brand, helps keep baby skin dry healthy so every touch is as comforting as the first pampers. The 1 pediatrician recommended brand lawmakers negotiate the next round of stimulus, there is a provision that would allow for 100 deduction of business lunches robert has that and more it is called supporting the american restaurant workers act that would allow Business Owners to deduct 100 of business meals. Currently, they can deduct half. The new proposal would allow companies to deduct all clientrelated meal costs leading to more orders, takehome pay and more hours to wait and kitchen staff President Trump has been asking for this call after a call with celebrity chef it would cost the government an estimated 2 billion to 3 billion a year and shows little impact on restaurant recepts others says it the virus not tax cuts that are keeping people from restaurants some think it would make it easier to disguise personal consumption as a business expense. A small piece either side has gotten fairly ramped up about because it is fairly controversial. This is on the corporate side of things. In the u. S. , companies can already discount 50 of something that is forward client facing saying if you wanted to go to a michlin starred restaurant or mcdonalds. There is a provision. It cannot be lavish and skrex t gent theyve also required you to take out beverages from the bill you can include a meal but not the three martini lunch. Thats my question. Who drinks at lunch anymore . Nobody drinks let alone the three martini lunch. When i was at wex closing bell, only occasionally. Robert, does takeout count. In a covid era, does takeout count . Does this include catering to your home, if thats where it is yes absolutely both, if you are a Business Owner and meeting with a client or if you have employers or employees being catered because they are at work, that is being counted as well. This would lead to more delivery and takeout, not just eating in restaurants. Thank you, robert still to come, apple, amazon and facebook shares up is there m