Transcripts For CNBC Closing Bell 20240712

S p 500 essentially flat year to date nasdaq up some 19 59 minutes left in the session, sara coming up on this friday afternoon, weve got a series of great gifts for you. Red finns stock was on fire the stock selling to have day on the companys cautious outlook as the ceo says the bottom codrp out on the economy were going to talk to glenn kelman in a few minutes. And then apple once again, the Biggest Public Company in the world, surpassing saudi ramco. Continuing the historic run. The market cap now sitting above 1. 8 trillion. Its up over 8. 25 well talk about what an investor should do with this stock next lets focus in on the big stories that were watching. Mike santoli looking at the market and the tech stocks surging to day kayla is looking over the next stimulus package first to you, mike. The story from the morning was that Great Results from the big four of tech did not really lift all votes did you have weakness. Sold a strong open the market firmed up in the last hour or so perhaps it is because maybe glimmers of hope over the weekend for some kind of resolution take a look at the s p 500 year to date, what happened today really has not changed anything about the overall structure in terms of being right in this trading range. Its been very, very, very tight for two or three weeks right now. 3200 is the down side. 3280 is the upside nonkmisal, indecisive. A little weighed down by the concerns about the economy that has not really changed. Didnt want to drill into the dominance of tech. It is not just tech writ large that is dominating it is the very, very largest, even within tech it is a winner take most setups. Thats really where the performance is ryt, the equal weighted version of the s p 500 Technology Sector every single tech stock, same amounts. It looks like the s p 500 just barely better than that. So really what were talking about is the very most dominant franchises just keep occurring more market value. And the question i think coming into august as we are right now is do they have enough behind them to really hold the market together thats been the question for a while. Take a look at the profit margin setup. I think one of the other interesting take aways is the numbers were so good for those four tech stocks that essentially the market figured it out already the moves are nice but not decisive this is essentially the net profit margin since 2014 of all the big tech stocks. Look at how resilient they are compared to the s p 500. Forget about amazon. They dont try to keep margins high thats what the market already figured out. Its not a bubble. Its no the about the fed. Its the numbers that theyre producing. Its also crazy that the Growth Stocks and theyre also considered safety plays. A lot of them are looking at the valuations a lot are looking at the valuations of the faang names next to bond valuations h it is tracking for a record low close. Yep. Are these alternative bets to safe haven bonds theyre related to bonds. Theyre Long Duration assets thats what a bond is. Traditional growth, what we call traditional Growth Stocks would have been the Consumer Products companies. Consumer staples companies theyre going to be very stable for very long peereds of ti per time and theyre expensive when Interest Rates are low its no the that different its just a different flavor of that traditional growth stock haven that is work right now mike, thank you very much lots more to discuss on the market front throughout the show but lets get to kayla taushy with the latest on the stimulus negotiations which are weighing on sentment today. Kayla . Stimulus talks are at a stalemate with today Unemployment Benefits and eviction protection set to expire for tens of millions of americans. The house of representatives is on stand by. The senate is adjourned for the weekend. All of this after white house negotiators tried unsuccessfully to try to reach a stopgap deal to keep some of the protections in place and now President Trump is casting blame across the aisle were playing for the good of the people its a disgrace that theyre not negotiating. I happen to think its a bad political game i think it hurts them. Democrats have suggested they want nothing less than a 3 trillion heroes act which extends the benefits through january. They believe shining on to any short term deal with dilute the wren leverage in getting that they say now the white house is on the clock the path that they have taken us down with their delay, denial, distortions have caused death. Respective camps recalibrating the positions. The president is in florida for a series of Campaign Events as the benefits are set to expire as you say, set to expire today. There will be millions of people hit by that. How long will they be hit by that for can we expect a resolution in days, early next week or crossed the linehere there can be a move to move quickly once that deal is reached. But that is the question what is a deal that get reached like like . So many are far apart right now. It doesnt seem like any compromise without mainlior cave on behalf of either side thank you so much for that Broader Markets. As we stand, we got the s p 500 just above the flat line dow just lower improving a little bit the New York Times reporting that microsoft is in talks to buy the company, particularly the u. S. Entity. Mike isaac one of the reporters that broke that what can you tell us this is just the u. S. Entity that were talking about is that right . Theyre owned by the Chinese Media and Technology Conglomerate so the dmp as well as american institutions have been trying to figure out different ways to eventually alleviate the scrutiny one way is eliminate the Big Companies including microsoft are looking at an acquisition outright and so were still looking into how far the talks are along. Is there any indication, mike, that that would work that this would be a way to apiece the Trump Administration . I think yeah i think the big issue for the white house is just, you know, the ties back to china they would have to give some serious sort of i mean, look, there is many employees in beijing who work on tiktok as well beyond the new york and l. A. Office thats have u. S. Employees. The i think they would have to for any deal to work, they would have to make assurances saying we fire walled u. S. User data tllt is no sort of ties to the company anymore. I dont know i dont know if they hammered the details out quite yet or to the point that, you know, theyre really serious on it but i think everyone sort of has an opportunity right now especially for a social network that even facebook is very worried about in terms of how fast its growing and how powerful its become. Fascinating that this story breaking on the week of those big tech hearings which were centered arent topic of antitrusts microsoft wasnt present at them yeah. I mean, it is great timing coming after the focus on congress i do think, i guess the one thing that microsoft has done over the years and it has done and a strong media presence. They missed out on facebook years ago. They dont own twitter they dont have, you know, perfect and other things and can you argue that microsoft buying tiktok would open up competition even better in the u. S. As another u. S. Owned company or another u. S. Backed presence to challenge the dominance of the facebook in the United States. So maybe they have that argument going for them any idea, mike, what it would be worth also, any i know youre not reporting any other companies, American Companies in the mix. But anyone can you think of that might be under consideration here yeah. Im trying yeah so after i get off the phone with you, im going to start dialing for dollars. I think that the folks im thinking of are who what companies dont have as much of i dont think a facebook would make sense just because they know theyre too hot to even touch sort of social media acquisition. What Companies Want to be in that space, the ad space that have a better chance of Something Like that. When it comes to getting Regulatory Approval . So i dont want to name anyone now because i dont want to speculate. Thought he those are the types of folks i would think of. I just want to round off in terms of the geographic split. This is being seen as u. S. Versus rest of the world for tiktok as opposed to china versus rest of the world because clearly the u. S. Authorities are the ones and lawmakers have the bit between the teeth in terms of worrying about possible intrusion from Chinese Tech Companies but that is a themethat is certainly viping adeveloping this is not going to include the european entity and other nonchinese parts of this company. I think the thing that made it clear is really, you know, facebooks dissent in front of congress this week and essentially facebook has been, you know, the thing ive been watching lately is seeing facebook really single out tiktok as this unamerican Success Story and facebook, you know, zuckerberg said on the Earnings Call that they think of it as an american Success Story. That has picked up pressure on tiktok to make a decision or choice or figure out how it is going to alleviate pressure sometime soon. As has been reported, there is talk of investors buying majority stake in tiktok instead of a full acquisition. Its very much in play right now. Mike, well let you get back to your reporting. Youre dialing for dollars as you say. But only if you do get a big scoop you ring straight back and break it here. Ill call you right back. All right well talk to you soon raises questions about microsofts own focus. The market really bought that story. Its worked. And so it would be sort of an interesting forray into consumer and social media it worked and its kept them out of the privacy debate as well sure. The hearings this week were on antitrust but they verged into privacy as well it has worked remarkably and kept them out of the political cross hairs over the last couple years. Coming up, stay tuned for that we are inside a tornado. Thats how redfins ceo described the volatility he is seeing of the quarter with demand down 40 then up 40 . Hell join us next to discuss whats going on in the Housing Market vo since our beginning, our business has been people. And their financial wellbeing. Its evident in good times, with decisions focused on the longterm. And crucial when circumstances become difficult. That continued emphasis on people our advisors, associates, clients and communities gives us purpose, strength and a way forward. Today. And always. They get that no two people are alike and customize your Car Insurance so you only pay for what you need. What do you think . I dont see it. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Welcome back redfin reporting strong q2 earning this is week along with a beat on the top and bottom line h glen kelman reporting year over year changes in demand going from down 41 to up 40 . Calling it a level of volatility he has seen in his 30 years of business joining us now for more is mr. Glen so what is the outlook here. There are Great Expectations around your stock and company. You were a little cautious in the guide. How long do you think this is going to last . The outlook is merky. Q2 income was up in the United States because Unemployment Benefits were so strong. But now we have questions around whether that will will continue. And in the meantime, the economy is split in two where the Housing Market is doing incredibly well even as Gross Domestic Product contracts america is thinking more about the home more people are relocating because of work from home. Were not sure what the outcome will be. But the immediate the immediate effect is very, very strong demand. At all price points, glen or just as youre kind of suggesting and sort of two tier economy that its only people that are relatively well off that are benefiting from these low Mortgage Rates well, its really across the board except for condominiums and urban centers. Those are a hard sell now because of the demographic the people that normally buy the products are unemployed. But also you just dont have as much demand to live in a city center so those are the areas that were most worried about but Single Family homes selling for 300,000 in the middle of the country are snapped up by californian whos are living los angeles and San Francisco for more affordability i think it has been fairly broad. There is softness in the luxury end of the segment but not much. How do you process that we processed it as a social calamity we have to think of the families who could be out on the streets and hopefully society will intervene in one way or another. If you look at the data right now, 8 of mortgages are in forbearance. They let you defer payment for a year in january, the delinquent rate was 3 so clearly the people in the business of evicting folks out of apartments and houses of handling delinquents and foreclosures are anticipating a big 2021 and thats one of the shoes that were really worried could drop next year. Right now inventory is very low. But some inventory could come on to the market because of the hardship that some americans are facing right now almost everyone is locked in place. There are few people that want to sell a house. There are very few people that want to put their home on the market and have strangers walk through and potentially cause infection. Something is going to give quickly on the structural shift. You mentioned San Francisco and l. A. Where are the place thats could be set to suffer the most . Is it the most expensive cities that has been to be having high tax rates . Are we seeing a massive fall in price theres . A small fall in price theres . There is an experience for me. Certainly the cities are under duress because the tax base is headed for the hills so theyre dealing with all sorts of social issues and at the same time people are leaving. So a lot of californians are going to texas i think thats going to cause some softness in home prices there. Everyone is stuck at home thinking about how they cant stand the drapes in this place and they ought to just sell it we are seeing more people buying homes in every city in the country. So even in, say, new york, youre seeing some Housing Demand for condoes, thats where its really soft. Glenn, thank you for joining us. Yeah. It was fun were at the moment, well after session lows the dow is down 300. Its nearly positive its only down 37 points s p 500 is now positive. Nasdaq up 1 its been a big week for vaccine news with developments from merck and johnson and an johnson. Well speak to dr. Scott gob leeb about what that progress means next at the golden opportunity sales event. 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Liberty. Liberty. Liberty. As coronavirus cases start to roll over in hot spots, deaths are still increasing at an larming rate. Lets bring in dr. Scott gottlieb and cnbc contributor to discuss. Everything that weve sort of processed about the virus this week, you know, one buzzy topic was dr. Fauci saying that, you know, were trying to think about precautions that we should be wearing perhaps goggles or face shields which i havent really seen any Public Officials doing are there studies showing this virus is being transmitted through the eyes we can barely get everybody to wear masks im not sure were there how are we going to do goggles is data this is not new. The virus can be spread through the eyes the if youre talking closely to someone and the droplets land on your eyes, its a lower risk way by which this virus gets spread. It is a route of transmission. There are studies where they took the virus and inoculated the eyes of monkeys and they found that they were able to contract the virus we know that if you have if your hands are contaminated, if you touch the contaminated surface and rub your eyes, that is a route of transmission for a lot of viruses so if you want to protect yourself more fully, its prudent to wear some kind of eye coverings. It doesnt need to be goggles or a face shield. Quite frankly, when i flew on an airplane, i wore sunglasses. So i wore a mask and sunglasses recognizing there is a risk if if youre in close contact with someone and a leris pi respiraty droplets land on your eyes if you want to fully protect yourself, i recommend you put on glasses. It doesnt need to be goggles. I thought you were going to say you wore swimming goggles on a plane. That would be quite a look are you encouraged by the tone and politicians are not saying you dont need to wear them anymore even if we dont have an outright mask ban. And the corporate sector established a mask wearing mandate s that a Game Changing difference i think there is a real secular shift. I think what the Business Community has been done is very important. Mandating masks in a lot of settings inside their Business Establishments people cant go outside their home without bringing a mask with them if they want to go shopping or into an indoor settinging its still regional and spotty around the country there is more version to it. There are different cultural norms and different parts of the country. But you are seeing more widespread adoption. I think this can have a real tangible impact on the risk going into the fall. You start to see more mask adoption after a region gets hard hit i suspect after texas and arizona and florida, states where there wasnt a lot of mask wearing come out from their current epidemics and hopefully those situations start to resolve themselves i think the residual i infect is going to be a public that is a little bit more weary and hopefully willing to engage in the collective action that is going to prevent the virus from coming back and the levels were seeing right now were hoping for theyrapeutc to come out. We got a word that they did fail to help people suffering from covid19 these drugs, especially antiinflammatory ones that are aimed at targeting the storm which makes people crash and makes it very, very dangerous, i mean havent had a lot of success. How do we deal with the really delicate icu cases this wasnt a surprise that this trug failed there were other studies looking at these drugs that hadnt been successful there are two phases to this virus. The viral response phase that is the willness caused by the virus. Runny knows, fever, the sore throat all this upper respiratory symptoms most people have that. That gets a lot of people in trouble. The other more targeted antiinflammatory drugs didnt work there are others being study including a drug on the board that im on, pfizer. There are others being looked at weve had now one successful drug for the treatment of this sort of post viral inflammatory response there is going to be other therapeutic thats come along, i think, between now and the end of the year including the drugs in the market by amgen and all advancing antibody drugs that sort of are modelled off the antibodies that your body would respond in response to the infection. There is a lot of theoretical basis why they work. They worked in other settings. Got it. Really quickly this is key for people going back to work and trying to deal. How many days after exposure can you get a test how many days does it take from being exposed to testing positive i feel like nobody is giving us a straight answer here the conventional wisdom is 14 days they migrated it down to ten the median amount of days is five to seven days i think after seven days can you feel confident youre not going to develop the virus if you want to be prudent, you should wait a little longer. Dr. Gottlieb, thank you for joining us as always thanks a lot. Time for a cnbc update. Sue herrera has it hi, sue. Hello, everybody. Heres whats happening at this hour twitters is et appreciates the quote swift actions of Law Enforcement after the arrest today of 17yearold tampa resident graham ive an clark. He is being charged as an adult with being the mastermind behind a bitcoin scam two weeks ago that used the hijacked twitter accounts of many high profile names. Two others are being charged with being accomplices william barr is will to take the Death Penalty off the table for two isis raised militants suspected of beheading hostages. That report is according to the washington post. The suspects are held by the u. S. But the case has been stalled because britain wont turn over key evidence if the two face possible execution. Public School Students in boston will not be going back to their classrooms full time that citys mayor says schools will either be teaching all online or using a combination in class and Online Education undergraduate courses will be online in the fall schools are trying to figure it out as the deadline approaches wilf, back to you. See you again next hour up next, with just 28 minutes left of the session, until the close, apple is up almost 10 its doubled in just the last year and top analysts will join us to explain why he now thinks the stock has been derisked for the rest of this year. Lets have a look at bonds as we go to break. Were set for a record low yield closes almost the whole way across the curve. Take a look at the mega cap tech names that reported blowout earnings apple, facebook, amazon, all surging. Alphabet is tellisell off well dive into apple. It is trading ateson ssi highs more than 10 . The top analyst covers the stock next is the salmon wildcaught . She only eats wild caught. [cash register beeps] uh, i need a price check on honey. Dont get mad. Get e trade and get more than just trading. Investing. Banking. Guidance. [ engines revving ] its amazing to see them in the wild like th shhh. For those who were born to ride, theres progressive. [beep] [whoosh] give everyone something to look up to. The allnew highlander hybrid. Toyota. Lets go places. Welcome back shares of apple surging so after reporting a blowout Third Quarter gosh, more than 10 now. Gained in just that short break. Revenues grew 11 while analysts had expected to decline 3 joining us, the Senior Research analyst at bernstein how impressed were you by the numbers . The numbers were great. Categorically, every part of the business was much better than expectations except for services which is a more stable business but transactionally, you know, apple really benefited they had a weak quarter last quarter. Clearly people were holding back on purchasing their products and there was some pent up demand and we certainly saw that. And thats reflective of the fact that they have a attractive set of products right now and during the pandemic people are searching out electronics staying at home. Iphone revenue was 26. 4 billion. The forecast was for more like 22 billion. Two questions on that. I mean, we always say its all about the iphone and clearly its the biggest segment but that is actually only half or just less than half of the total revenue. And secondly, what does it tell us about how successful the 5g cycle could be for them that they delivered such a strong beat on iphone revenue and a tough quarter . Sure. So, you know, apple is becoming more than an iphone story. I think thats the principle reason why you have seen the stock see significant multiple expansion over the last two years. This Quarter Services gross profit dollars worth 39 of total. They dont report it but likely Services Operating profit dollars were more than half. Services is a reoccurring business investors will pay more for that business than they will an iphone or hardware business. The so were seeing that play out. And thats true. The iphone is becoming a smaller part of the mix and services is becoming a larger part of the nix. So we certainly are seeing that play out so lets talk about the view forward for apple wlaen to do with the stock i mean they didnt give the explicit forward guidance. They did say that they were looking at a delay so how does that set us up for the next quarter and 2021 versus where expectations are right now with the stock having this big surge today . Look, relgtive relative zpo is good. That is affectsing transactional sales for iphone so, es, much better than expectations had there been no pandemic, april w apple would have done even better so this fiscal year, september 30th, that is the iphone business is being impacted in two ways one by the pandemic and Lower Consumer spending. Secondly, apple announces new products tend of september and thet a new surge in sales. Theyre not going to have that in september the new products only come in october. So what that sets up is a potentially very strong fiscal 2021 which starts on october 1st because of some of the people who would have ordinarily bought phones this year but didnt because of the pandemic, theyre likely to upgrade next year. Then you have, you know, pushed out sales of the new product which are typically in september and going to start to happen in october. We think next years cycle could be very strong apple was selling 220 million phones per year and 2017, 2018 the last couple years theyve been under 200 million phones. And we think theres, you know, some spent up demand there solder installed base. You know, people with cracked screens, you know, weaker batteries. It could be dramatically higher than the 200 million that were seeing this year i think that setup is very attractive in terms of, you know, having a strong cycle going forward. How significant is the stock split . You know, look, apples done this before. And it does make it available to more available to Retail Investors. Were obviously seeing reports of heightened retail trading and so certainly that could make the stock more accessible to Retail Investors i think Academic Studies say do you get some move in advance of stock splits but thereafter the market is efficient, especially for a deep liquid stock like apple. But, you know, thats what apple is trying to do. The it is clearly be more aggressive to Retail Investors sounds like you need to raise your price target, tony. You are still 400 we are at 400. Look, we think the risk slash reward is favorable. The market is very buoyant particularly for tech. So its hard to put a price target that lasts for too long without manufactuy of the tech blowing through them we are above consensus for next year and we think, you know, risk reward on the stock for the next several months is positive. Tony, thank you very much for joining us on the back of of this more than 10 move higher for apple. Weve got breaking news on Kansas City Southern its surging leslie picker with the story take a look at shares of Kansas City Southern up more than 11. 5 , almost 12 on dow jones report saying that a group of buyout investors are looking to take Kansas City Southern private in a deal that would amount to more than 21 billion including debt according to dow jones and their sources which were anonymous in the story, they say that blackstones infrastructure arm and Global Infrastructure partners are together exploring a bid for Kansas City Southern and talking with banks including citigroup about financing that deal interestingly enough, those two funds, blackstones is about 14 billion and Global Infrastructure partners 2shgs 2 billion. They would have to seek additional help to come up with a consortium to take them private. Investors though, they like the idea of that as can you see. That stock clearly soaring on this news today. Back to you. Leslie picker, thank you. Up next, pinterest surging 30 , evchron sinking. We take you inside the market zone after. This h the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. 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. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. 13 minutes left in the trading day. Were now in the closing bell market zone. Cnbc mike santoli is here to break down the crucial minutes weve got wells fargo scott ren here as well the dow going positive we kick it off with the Broader Market s p 500 has gone positive this hour we had a nice bounce here. Technology is outperforming all day long led by apple. The last day of july major averages are on track for the fourth straight month of gains. S p 500 on track for the best july performance since 2010. Looks like were going to end it on a high note. Yeah. Obviously, the one constant all day has been the extreme strength in the very largest tech stocks. Apple is the most representative of that. I think the Broader Market, even though average stock is do down. 3 , the Broader Market had this lift in the last hour were going to be lboing railroads and microsoft running 50 billion checks maybe there is some kind of a fiscal deal over the weekend because its not going to get any worse than the stalemate it is right now were getting reports maybe there is progress. I think it is mostly about lets collect our negative bets and take that off the table a little bit before the weekend just because the market bent but didnt break as i mentioned earlier, it really has been kind of resilient in this particular range for a few weeks now. Mike, to the point about big techs outperformance. We spoke with tony he was constructive. Very constructive, id say, in tone and in content of what he said over the next 12 months the move today takes us past the share price target is that thing well see across the street which is you cant bet against it today but will we start to question as soon as next week how much they outperformed i think people have been asking that question for a long time clearly the market has been running ahead of professional sentiment, i he guess you might say, about these stocks. Mostly because apple in particular is plowing new upside ground in valuation. It was always kind of this, you know, cheaper than it deserved to be or it was kind of a discount to the market and the valuation just blasted off right now. To the extent this is about a stock split, i do think you had might want to be a little skeptical about the short term 35 billion of apple shares traded to day. Its a lot so, therefore, its a true stampede of people deciding i cant fight this anymore presumably Warren Buffett is not selling shares you know, its just a tough one to bet against given the buyback and all the other factors. Lets hit some other stock movers today shares of undera armour sinking. Under armour shares did rise before the call after reporting what was a beat on the Second Quarter on the top and bottom lines. Better margins earlier, i did talk to under armour ceo about the outlook for the rest of the year which he gave caution on. Listen were taking more conservative outlook on the back half of the year we think there is a lot of uncertainty out there in terms of how the consumers are going to navigate this near term period of the end of 2020. So i think that is really how things have, you know, evolved so far as weve seen this pandemic kind of roll across the world and consequently we think that as we look into the future right now, we feel that its the right thing to do is to take the conservative approach. Look, heres the story with under armour the talk about higher inventories and in the second half the fact that they would have to do discounts and promotions to unload some of that inventory, thats what spooked wall street on the call. At a time where this company, mike, is trying to turn its several around and try to revitalize the brand and make it more premium and get it resonating with consumers. Theyre taking the pandemic as a opportunity to reset the size, unload some of the assets. But now they got to convince wall street that they can grow actually, the good news here is that theyre selling a ton of masks. Theyve been making the athletic masks and using interesting innovation to create the three layers but clearly, wall streets focus here is on the turn around and just how long its going to take for under armour for sure. I think the focus has been for a while now on just how valuable and strong the brand is going to be on an enduring basis. The is it going to be able to get back to a position of really being a rival for the ultimate Premium Brands in the category i dont know that we necessarily know that. At this point, you know, it seems like a little bit of people just kind of walking away from the story scott, pivoting back to the Broader Markets, how long do you think the market can shrug off the lack of a stimulus agreement if we still dont have one by this time next week, for example, would that see the market pull back massively i think the market is going to be sensitive to more stimulus coming out of congress i think the market believes that we will see more stimulus coming out. Thats the way were leaning as well if you get a couple days of news where things are uncertain, those types of things, then youre going to get a little bit of down side to the market but as mike mentioned, you know, right now it doesnt seem like there say lot of people afraid to go home long on the stock market this weekend. We could hear news, good or bad, out of members of congress about these negotiations the market expects decent treatment and vaccine news which leads to employment and consumers outspending money. Theres a lot going on out. There but the market is fleeng a directi fleeng a direction that i think is going to jive with the fund ales the. A lot of focus on facebook which up is 7. 5 its not the only social network rallying today pinterest is up 35 . We explain why thats right. Pinterest shares soaring after saying that revenue grew 50 in july from the year ago quarter the Company Forecasting 30 rev new growth in the Third Quarter. Pinterest reporting better than top and bottom line as well as stronger user growth as well as shopping from retailers. It is benefiting from the facebook boycott saying theyre using this opportunity to educate advertisers but how and why pinterest is different and how p interest is not a place for political debate thank you so much how do the pinterest valuations stack up against the other big tech names pinterest in perterms of profitability, they dont have the high margin mod that will is going to kick off profits unendingly i do think, though, that its small enough that the idea that kit just kind of have a long runway of user growth is probably a little bit different than whats going on with facebook the big question is, i mean, when you talk about what the shutdown and the stay at home trend has done for amazon and for the established for facebook and the like, people have confidence that once youre a user, once youre plugged into prime, theyre going to find a way to sell you more and more and more there is no escaping it. And youre a valuable customer for life im not sure thats the case when you talk about the secondary social networks. What were learning is the stay at home stocks which we knew they were weathering the storm. Do you stick with that as an investi investing theme until we get more clarity i think that the market wants to be in names that can make money and own their niche. Whether the economy is good or bad. As weve seen, i mean there are companies out there making a lot of money what makes sense to us, we like consumer communication services, the streamers and social networks, theyre all in there those are the companies that benefited he would dont expect that to not move forward until we get more clarity and everything broadens out. Were not far off the session highs. Markets recovered in the last couple hours energy is the worst performing sector both today and this week. The oil joint reported bigger than expect the losses the they both cited the Global Pandemic chevron warning that results may be depressed into the Third Quarter. Chevron down some 7 as can you see. Exxon down 3 . Scott, are these companies cheap at the moment . Cheap enough to be attractive to you . Not in our minds. Were Underweight Energy the were unfavorable that Sector Energy stocks do well when you have supply constraints, a robust economy, a little bit of inflation and we dont have any of that right now. Were going put gas in our garz. Overall that sector has not performed well we dont like it and were sticking with that rating at least for the near Term Crude Oil is back above 40. We have two minutes left a little over that in the trading week mike, you have more on the market internals actually, have not come back as much as the overall indices have it its very difficult for negative breadth which we had in the morning. 75 to the down side to really turn the corner late in the day. It is better than it was this morning. Still, more than 21 to the down side that also reflects the underperformance of the smaller cap stocks today you want to take a look at the social networks that are busy at stay at home against a reopening basket which is this leisure and entertainment etf. This is a week where you had a 5 spread between the two categories out there the market held up pretty well without really a comeback of sentiment towards the strength of the economic recovery and reopening. At least not yet they are under 25. Hit a pop earlier today. Its not necessarily falling apart. But this is now going to be carving out slight new lows. There is a tension release its a net positive. Although, august, very, very often has a tendency and shows an uptick in volatility and tomorrow is august. We have just under one minute left quick mention of the u. S. Dollar which is finally rebounding today. Its up. 5 . But still down 4 for the month of july. Gold has continued its rise. Up over 1 it is up some 10 1 2 as a whole. Equity markets near the session highs. We approach the close. S p 500 is up. 6 . Nasdaq up 1. 4 apple up a massive 10. 5 180 billion facebook up 8 will amazon only up 4 gave up some of the gains. Still significant gains there. Tech, consumer discretion and communication services, best performing sectors for the day worst, energy and health care. At the close, right by the session highs, 126 points higher on the dow s p 500 up 0. 8 . Nasdaq up 1. 5 strong finish to the day. The week, and the month. Welcome back, everyone, im sara eisen. Senior markets kpen take thor. Take a look at how we finished up the day on wall street. Everybody ended higher except for the small caps there is the dow apple leading the charge today cloedings up 10 on the back of much better earnings the dow up. 4 the s p 500 closing by. 75 . All day long, a tech driven move then you have strength in the end of the day by materials, utilities, financials closed green. We have two sectors in the s p 500 that closed at record highs to Day Technology and consumer discretionary. Thank you, faang and the nasdaq up 1. 5 obviously the star of the day. And of the entire month. Its really been the story of the week as well the russell 2000 index down 1 today. It was the outlier you had negative groups like energy, health care. The industrials also closing lower. Well speak with a company that performed up to a third of all coronavirus tests in the u. S the stock hitting an all time high today going back to the ipo in 1990. Its been a moon shot for this one. Stephen mcmillan will join us in a few. The lets talk about the market today. And for the month. Wells Fargo Investment Institute is still with us ubs and mark smith joins the conversation first ill turn it you to, mike. You sort of left us last hour with the fact that august can be volatile but the setup here is just more of the same. Which is Technology Leads this market that remains disunconnected with a lot of the economic fundamentals we see. No doubt about it there was a little bit of a squeeze and chase feel just to the final hour you dont know if that is necessarily telling you much of anything except you have this month end rush people not wanting to be skewed to negative to into the weekend. We have another interesting situation here that is a record high monthly close on the s p 500 a couple per spent below the all time close that is mid month. All thyme monthly close. At the same time, all time low and all time high close in gold. So its the everything rally at the moment it is kind of disinflationary boom that is going on in the asset markets at the moment. Not that there is vas disagreement but it is very stark the bottom line take away stock market this market managed to hold up in this range as we weathered this kind of case surge and a lot of other other issues that were decent excuses for it to back off more. So not too far below the high end of that range either mike, i ghes week or this month is another highlight that the sicyclicals can never rally for more than a couple days at a time again, you look at the week or monthly performance and it shows that they have not been able to the burden of proof is on the areas and investors are emphasizing the areas for a while. Things like pretty compressed in terms of if there is a better deal maybe there is some other kind of reason for the real economy to perk up a little bit, then you might see something a little more of a outperformance phase its hard to bet on that though. Not being at those points and not knowing if the factors are going to kick in thats right scott ren, what is the expectation in the market right now for fit call stimulus . How much and what key components do you think investors are expecting . Well, it looks like that were going get something between a trillion and a trillion and a half. I think the democratic proposal is too much. It is not going to make it through congress but certainly were likely to see some more ppp, just basically getting money to Small Businesses in the hands of consumers. Well see an extension of the unemployment benefit it may not be 600 a week. But it is going to be some fraction of that half or maybe slightly less. So well see support that is focused on businesses, consumers. We might see a little bit of state and municipal government as well. But for us, somewhere in that trillion to trillion and a half, and clearly this is going to be a little bit more of a debate than these other phases have been which has been largely bipartisan this one there is argument going on some in congress dont think we need another stimulus program. So you can see that the two ends of the spectrum are far apart. You see what happens there is more money pumped into the economy. Is big tech too expensive our firm believes it is it looks like it is very overvalued four or five names really impact the s p 500 up in will today and there are a lot of things that we should be concerned about. You look at 19 weeks of over a million un filing for unemployment that is over 50 million americans. And then youre also seeing that were going to have to have trillion dollar deals. Like its pocket change. Thats why gold is rallying. Thats why were telling our clindz at ubs you have to have a position in gold because you just have to offset all this spending that were doing. And overvalue of the tech trade that you just referred to. So, mark, if not tech, so you like gold. Where else would you be telling your clients to be at this point given the economic backdrop that you just laid out . We actually just put an overweight on international. Because it looks like in europe theyre doing a lot better job of handling the coronavirus than we are here. And so youre seeing the economy pick up. And a lot faster pace. So were starting to ask clients to put a little more into the International Stocks specifically in europe because of the job theyre doing in Contract Tracing can you see the results. Look at their numbers compared to ours. You have to have international as well. We have reports on tiktok the New York Times reporting that microsoft could be in talks to bite company. A tweet caught our attention we roped him back in this afternoon. He said if microsoft buys tiktok it will flatten the enterprise they make me question the focus with cloud devices and gaming, dont they have enough to do already . John, so you dont think is a smart move well, hey, wilf, im not saying theyre going to do this or not or they should or shouldnt. What im saying it is will break the story if they do it. Stories are important to investors. They have to reframe the way they explain the strategy. So what i am saying is this. The Gaming Business is a legacy consumer Business Inside microsoft, the company has described itself as enterprise led, business led. Yeah, they have consumer versions of word, outlook and rest, for example. So the focus is on selling to companies. And also microsofts consumer businesses have tended to be thing thez charge people for there is a free version. But that is really about getting people to sign up for the subscription version fueling the enterprise version yeah, some people say what about mine craft and, yes, microsoft they bought mojang it was the first big buy it seemed like a detour at the time they explained it was about community and creating Cross Platform experiences integrating into Education Programs teaching coding. Plus, gaming exception like x box. Tiktok doesnt fit that. Its no the a game its a content platform. A social experience. It its more like snap chat or mixer, the twitch competitor that microsoft just killed if they do buy tiktok, i can see microsoft reframing their strategy and story to make it fit. Talking about Community Like mine craft is a community. Linked in is a Community Get hub is a community but there is a difference. Minecraft is paid software theyre getting work done. And tiktok is none of those things its hard to imagine how you make money off tiktok outside of advertising and consumer Data Collection which, i mean, up to this point is a quagmire that microsoft mostly avoided getting into it will be really interesting to see where they go from here. It opens a wide door and theyre going to have to explain things differently. But didnt we just see from facebooks quarter why, i mean, being in social media is still pretty Good Business to be in . Could you see nadela throwing his nat that ring and getting in to compete with those kind of giants or, you know, by the same token, it is too risky with the scrutiny that microsoft avoided . Yeah, i think can you also say we saw frommal if bets close that advertising is a tricky business to be in how many resources are they willing to dedicate to really growing this does it really integrate into the x box network. Any of those things that theyre really trying to bolster this Community Thing is this a community that is pitted up against a youtube, a facebook, other big powerful companies that they want to fight . They can just back down with mixer or some special area where they can really grow hey, well see a quick final thought in terms of the valuations here of these big tech companies. Is Microsoft One of the more attractively valued ones sh. I dont know. If its more attractively valued i guess it depends on whether youre looking at Revenue Growth if, youre really factoring in cloud. That is why story is important sfligt a lot of people valuing microsoft now are doing it based on cloud and investment in being plate form that other people build on top of. Tiktok is not that if youre buying tiktok, its an application argument that now youre integrating big users, big consumers of data, big communities into that platform you have to buy those. As opposed to just get them to rent the space from you. The valuation question is an interesting one. It goes to story as well john, thanks very much for joining us on that potential deal were out of time now. Scott and mark, thank you for joining us thanks, guys. Up next, coronavirus Testing Capacity is a hot button issue and the u. S. Is still struggling to keep up with massive demand well talk to the ceo of hologic. Were be back in 90 seconds. My name is janelle hendrickson, and im an area manager here at amazon. When you walk into an amazon fulfillment center, its like walking into the Chocolate Factory and you won a golden ticket. Its an amazing feeling. My threeyearold, when we get a box delivered, he gets excited. He screams, mommys work when the pandemic started, we started shipping out all the safety stuff that would keep the associates safe to all the other amazons. All of these are face masks, weve sent well over 10 million gloves. And this may look like a bottle of vodka. When we first got these, we were like whoa [laughing] with this pandemic, safety is even more important because theyre going home to babies, theyre going home to grandparents. So, our responsibility is to make sure that they go home safe every single day. Revenues no surprise were driven by covid19 diagnosics. That segment bringing in 460 million, marking 170 increase year over year joining us now in an exclusive interview, hologics ceo thank you for joining us congratulations on the good numbers. I mean good to see you thank you. Likewise. When did this come in the quarter . A lot of the anlives xplesing surprise at the scale of the beat because you provided an update, i think, in early june and you blew past expectations that they had priced in off the back of that update. Was this all right at the back end of the quarterer it was very late in june. And we really just got our product approved in may. In the United States and then we got our ce marks so for europe right at the very end of a really early june so we had a massive june and i think were really proud that we produced 13 million tests in may and june. Which at that point in time if you think about it, the u. S. In the month of may had done maybe 10 mill dwron in total so, you know, what we brought to the market and clearly trying to help everybody and help our lap customers, hospitals, really keep up with, you know, the Unprecedented Demand youve been talking about. What is the turn around time on a test you offer . Well, i think part of what were really trying to help here is because we have our panther systems and over 1,000 of them installed in the u. S. In all 50 states out in the hospitals, out in the regional labs, can you run about 1,000 tests per panther. And i think thats clearly helping, especially for the hospital whos are testing the patients, who want to come back in our partners are helping in terms of producing more panthers all of our suppliers, our team is literally working around the clock and we produced so much more just in may and june than we ever maenled and were on track to continue. Just as a broader question for the u. S. , steve, how long does it take for those tests to come back . Because we still continue to see i mean its not pinpointing you here but delays when it comes to test results and long lines to get tests and shortages of supplies. Why cant we figure this out yeah. I think, sara, its because of the unprecedented ramp if you think about it by the way, just the amount that the u. S. Is doing. Weve done 50 more tests than the entire g 7 countries combined so i will will tell you first and foremost, you know, nothing has been scaled to this level. And the infrastructure of the labs and hospitals and all the collection and everything, were working that out i think youll continue to see progress you know, were really on the manufacturing side so the best thing we can do which were working, you know, our best to do, is get as many samples to as many states and labs and everybody that we can to really help our customers cut down on those times. I think what you are seeing increasingly is the prioritized patients thats what diagnostics needs bring to the world as well is better data. That our ability to really help target the right areas of the right times, the right patients so that we can continue no knock this off we have tote got turn around times even quicker. So, steve, when you see criticism of the administration that Testing Capacity is not good enough, do you think that that is unfair do you think they even deserve quite a lot of credit . Or is the credit due to the private sector like yourself i really believe the private sector ramped this faster than anything and far faster than any government can ever ramp, you know, frankly anything this is an incredibly complex supply chain awhat if we needed five times more automobiles in this country three months from now than we have right now that is effectively what the diagnosics industry has done in the last three months. No one manufacturer knows, if you good theyve to the government, there is no way theyre going to get that answer so its the private sector rallying our teams have been working 24 7 its like a construction site back behind my walls here. While were also producing millions of tests a week and were going around the clock. Weve been adding people and its really been an amazing effort that i dont think is fully appreciated. Given the magnitude. You know, just two months ago people were saying as a country we can get to to 400,000 tests a day that will be great were now over 800,000 tests a day. So the demand keeps going. So i do think where the government can play a stronger role is frankly helping us start to parse through the dwrat so that we can start to figure out a little bit better at the local levels where it is really needed and frankly, all people are not going to necessarily test the same or need the same treatment. The key is getting the right people treated its a really important point. Steve, just want to i tat opportunity to ask about go ahead, sara. In the time we have left, way nt to get a feel for the other business thats you have and, you know, you saw that big dropoff early in the crisis. In mammograms and other really important test thats people should be getting. How much has that come back relative to normal now that weve started to reopen sure. Its a great question. It was very concerning when you think about the drofoff in mammography screenings and Cervical Cancer screenings the National Cancer institute put out a note saying there will be 10,000 additional deaths in the coming decade from breast and Cervical Cancer. Because of delays in screenings. The positive is that mammography screenings are really largely come back to at least 90, 95 of the levels of where they were, you know, back in march when everything shut down. Cervical screening is coming back it is so important so were at least seeing a lot of the Womens Health testing coming back. That is encouraging. You know, it goes a little bit in fits and starts in certain areas. But really its been coming back nicely and that, you know, is really the core mission as well which is really Womens Health steve, thank you. Always good to get an update. Thank you both. We appreciate it we have breaking news now on adobe. Josh. So some news here from adobe, adoeb whyy is shutting off political ads on the ad platform we have a statement from the company saying that the ads requirement policy will now be modified to prohibit the running of political advertising creative assets. Effective august 30th. This change may be zrubtive to some customers and commits to assisting them to other platforms. Digital platformses, facebook to twitter have to wrestle with political adds and make decision whoonz to do with them the bottom line, adobe is shutting off political ads for the digitsal ad sales platform. What is adobe advertising cloud exactly . So my understanding, they are a pretty big player in facilitating the on line ad buying clearly the company is making a decision here that theyre going to shut down spending for political buyers obviously right before the homestretch here every company got to make decisions about what rules, what requirements make sense to them. Depending on their aims, values as a corporation this is adobes. So this is intermediate airy as opposed to kind of where people would actually see the commercials themselves is. Okay. Thanks, josh thats our understanding. Yeah. Unlike twitter and spotify which also did it. Still to come, mainlior League Baseball is rocked by the coronavirus. Basketball managed to make the return stick so far were going to discuss with an nba insider, Kevin Durants straight ahead or whats trendi. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. 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. The s p 500 gained 5. 5 for the month of july. Best july since 2010 lets get a lack in the gap in sentiment between Retail Investors and professional money managers, mike what does it look like ive been dryitrying to desc. They have very stubbornly remained skeptical of the market if you look at the weekly poll very low bullish read chgdz is unusual when the market is going up on the other hand, the tactical traders is an organization weekly that tracks the equity exposure of that group this is the number subtracting the bullish number the so essentially had this is the gap between the tactical professionals and the Retail Investors in in the survey its a record high right now they put together this thing and i dont know what the exact take away is generally when you had persistent bearishness among main street investors, its confirmed by mute aol fund flows, and some other indicators that say that, you know, the average person is not really trusting this market and, against that, you have the kind of high frequency, you know, people who are playing the market every day theyre really playing for aggressive upside. It seems like there is a tension there. Probably means there is some shakeouts that could come along. Option traders are bullish right now. But in general, hard to have a lot of down side acceleration or lasting down side if in fact the average person is not yet bought in that is my conclusion when it comes to this. Mike, is another little conclusion to draw from this perhaps that Retail Investors have a bigger impact on the market than maybe professional investors thought even as recently as two or three months ago . So they might well have seen that the sentiment gap was here but thought well that will only draw stocks for a couple more days its clearly not the case. No, its not the case i dont know if its really true that retail incestors have more influence over theyve been sitting it out as a group. Im not talking about the kind of, you know, amateur speculators that are opening up accounts in huge numbers and trading small amounts in the riskier stocks which is really definitely going on. Its just not moving a lot of money around so i dont necessarily know who is driving it except that right now it seems as if the momentum players are willing to trust the upside to people who focus on the charge, fact that market is not given away and the leaders of this market have very, very strong uptrends and that seems to be how its netting out at the moment okay. Mike, thanks very much still to come, shares of draftkings taking a hit today. Slew of baseball games have been postponed due to coronavirus concerns the nba has been a bright spot in the sports world. Well discuss with Kevin Durants agent rich kleiman after this break shares of draftkings lower this week as more baseball games have been postponed. Six teams are being held out of action due to positive coronavirus tests. But the nba has had a better start so far last night the utah jazz, new Orleans Pelicans and l. A. Lakers and clippers all played to empty stadiums at the espn wide world of Sports Complex at disney world as the league add heres to its coronavirus protocols joining us no you is rich kleiman, rich durants business partner. Its good to have you again. First, what did you think of the restart . Well, its good to be back, thank you. I was really impressed. I wasnt surprised i know how good leadership is in the nba. I know how good communication is between the players and union and league i think players are ready to do this it is a brenl of fresh air to watch it i was really impressed with the visuals. Nfl is set to kick off in about a month, you think theyre going to be able to pull it off without doing Something Like what the nba has done so far successfully like the bubble i dont know. I think its all going to depend a bit on what we define as pulling it off finding a way to react to that in light of that is important. I dont know if baseball or football obviously baseball waement able to set up the bubble situation but for football, you know, i dont know if they can do what mls and nhl and nba are doing. I think when put together in the right way like adam has with the nba double, it can be productive its still so new. All of this is so still new. I think football will have some research from the last two or three months and things change so quickly in our society now. I think the football season will start and will look different. Once were watching competition and a lot of people i spoke to felt this way in watching the nba last night you forget about all the other things i think the nfl will find a way to put the show on and overall, do you think the players are very positive, excited to get back to playing or are there some nerves, in sense that maybe we shouldnt be doing this and taking tests every single day when theyre needed elsewhere or are people happy to get back to sflag. I think its both people are happy to get back to playing. And i think that players and the nba in generaladapts i think the plat form is so powerful you saw it last night. Being able to be there and still get your voice heard and make sure we dont forget what is important in our world and not taking our foot off the gas in terms of make change but being able to be back on the court you know, youre not going to eliminate all angst. There is too much in our society to begin with. But i think players in the ones i spoke to and the ones i checked in with, theyre happy to be. There theyre happy to be playing. I want to ask about the investment side. We saw the nasdaq surge on the back of the big tech earnings. Kevin is known and so you are as pretty savvy tech investors. You were early in most mates what you are looking at right now . How you are taking advantage of this huge stay at home tech boom well, frankly, we havent as much i think weve been active in terms of being good investors for the companies that were already in our portfolio it really is an aspect of our business i think the focus for us is on our foundation and our philanthropic efforts and media and the building of our sports business platform, the board room the major investment that came from kevin and our organization was the investment in the Philadelphia Union but, yeah, so for us, it hasnt been major focus but obviously, you know, now that our port groel is four or five years old and the companies have matured and seeing success like post mates and the other companies in our portfolio, its an incredible feeling. I wouldnt necessarily say that were savvy tech investors i think what we are is we have a great network. We ask Great Questions were not afraid to ask questions. The weve been able to meet great founders and were investing in early stages. So the kind of port of entry is more on the concept on the Leadership Team and the filter we get from having such great access to deals. Its usually coming through, you know, vcs and other investors going through the deep analysis process. With the he do our due diligence. But its really believing in the could be september and Leadership Team. If it has some way of kind of being synergistic with what were building at 35 ventures and thats been possible with a lot of our companies. Keep us posted on in i deals. Always great to check in with you. Thank you. Thanks, guys. We do have breaking news big headline going by. Fits ratings revised the u. S. Outlook to negative. It affirmed the aaa rating so its now changing the outlook from stable to negative. Its warning on u. S. Public finances and the absence of a credible Fiscal Consolidation plan issues that were highlighted in the last review meeting and high fiscal deficits and debt they hit a record low in the sign that the u. S. Is still where its at in terms of debt and with, you know, the current pandemic, the talk now is increasing even more debt in the form of stimulus because we have to fight this once in a lifetime sort of economic crisis. Still, worth paying attention to right spotlighting the perceived challenge thats are there Standard Poors downgraded the u. S. Debt exactly nine years ago. 2011 to aa plus aaa. At that point, the ten year treasury yield is 2. 25 . And now. 5 . Today it is push 1g 10 . However you want to measure it clearly, this is not something the Credit Ratings on is ocount like the United States is going to put up the market there is basically a kind of the rules are off sense about what the fiscal side of things can look like in this era right now. I mean its interesting clearly, it does come on a week where we talked about all that Goldman Sachs note that was bullish on gold. And rale rais raised the question about the dollars long term reserve status they didnt make any conclusion onz it so, of course, absolutely right. Everyone wants u. S. Debt and they always rate it higher than anyone and that will almost certainly always be the case but there are at least questions out there about aspects of the dollar given some of the factors. But again, i feel like the rating agencies as ever come after the fact as opposed to ahead of the fact and weve come off the back of a month where the dollar index lost, what, 4 . And i wonder whether this aaa but slight change in outlook is already beenpriced into what weve seen in the dollar the only thing i would also add, just add is that this could give some fuel to the politicians o ut there and there are some members of the Republican Party right now especially in the senate who are saying we dont need to add to the deficit right now. Lets we already added trillions of dollars in the form of stimulus. And theyre not exactly onboard with either the republican and certainly not the democratic plan to add 3 trillion more expect this to be a new political talking point probably that were getting warned here on our outlook because the debt is so high yeah. Well see if that changes the developments in the week ahead about stimulus plans but the market short term wants that stimulus over the line regardless of what it means long term for the debt. Still ahead, the recent on line shopping boom could spell plans for one unicorn. August 12th, join the Small Business playbook and facebooks cheryl sanberg and margaret anadeu its about providing Small Business owners with resources to survive todays crisis and provide a path forward to thrive tomorrow go to cnbcevents. Com smallbusinessplay book to register you should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Time now to get a cnbc update from sue herrera. Heres whats happening at this hour. The death sentence has been tossed out for the man convicted of killing three and wounding hundreds in the 2013 Boston Marathon bombing a federal court of appeals ruled the trial judge did not allow enough questioning of the jurors to make sure they had not been affected by the enormous Media Coverage of that case. A report from a House Committee accuses the Trump Administration of what it calls incompetent negotiations for vent lateors ventilators. The administration squandered more than half a billion dollars by paying inflated prices for the equipment. And inside the House Chamber today, a moment of silence as the death count in the United States from the virus continues to grow after crossing 150,000 the World Health Organization reports it has received reports of more than 300,000 cases from around the globe over the last 24 hours that is the biggest oneday total so far you are up to date back to you. Sue, thank you very much. Have a lovely weekend. Just want to bring you news on the capital one dividend. It was cut from 40 cents a share to 10 cents a share after the first stress tests six weeks or so ago they were one of the names on the list we knew would have to do this at some point. A question of when not if. And by how much. The answer is from 40 cents to 10 cents that was the intraday move down 1. 25 , rather in the after hours move fwhut but this is one of the companies ut against it in terms of maintaining the dividend so we were expecting a dividend cut of sorts there it is. 40 cents to 10 cents yeah. Down about 1. 25 after hours still to come, what geopolitical headwinds despite issueseten e s. Ndhina, one part of the market is seeing a big spike from overseas. Well explain. 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 to return to the workplace. Lets reopen. Safely. Now you can trade stocks and etfs for any amount you choose instead of buying by the share. All with no commissions. Stocks by the slice from fidelity. Get your slice today. Leslie picker has the story for us. Thats right. 21 Chinese Companies have gone public in the u. S. This year thats nearly double the number we saw officer the same period last year and represents 15 of the total ipos in the u. S. , the highest proportion in a decade thats according to data by deallogic. Sources say investors in Chinese Companies are ignoring some of the geopolitical headwinds why . Well, the u. S. Market is seen as the ideal destination for Growth Companies because investors are willing to fork up capital to pay up for them and these chinese growth Companies Need that capital to be sure, some of the larger potential chinese listings in the pipeline are likely to take place closer to their home bases. Sources say there is on going dialogue around financial to pursue ipo and ipo in asia but no plans have been made final yet. Guys interesting trend leslie, thank you. Dont miss leslie tonight. Shes hosting cnbcs special Program Summer school on cnbc from 6 00 to 7 00 p. M. Eastern time with josh brown looking forward to that we have a news alert now on nba ratings. We have more julia . Well, sara, huge demand for live sports and huge demand for nba. The restart doubleheader averaging 3. 4 million viewers. That is more than double the regular season audience. The clipperslakers peaked with an average of 4. 1 million viewers. And tnts inside the nba delivers the best viewership since opening week in 2018 Bleacher Report also watch there. Highest traffic day since april with more than ten million Cross Platform engagements so really speaking to demand for the restart of live sports guys, back to you. Wow julia, thank you up next, saving salons the coronavirus taking its toll on salon owners around the country and billionaire john paul degoria is stepping up to help them cope he joins us next the volatility. The ambiguity. This moment calls for more. And Northern Trust 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. Yeah, everything is runningis smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. [ind mom ct radio chatter] come on, hurry up all systems go . Mission Control 5 4 3 2. And liftoff. vo audi etron. The next frontier of electric. Get audi at your door Remote Services through participating dealers. 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. Up next, wall street look ahead. Another big week for earnings. Key things every investor nees to watch out for or could it play out differently . I wanted to help protect myself. My doctor recommended eliquis. Eliquis is proven to treat and help prevent another dvt or pe blood clot. Almost 98 percent of patients on eliquis didnt experience another. And eliquis has significantly less major bleeding than the standard treatment. Eliquis is fdaapproved and has both. Dont stop eliquis unless your doctor tells you to. Eliquis can cause serious and in rare cases fatal bleeding. Dont take eliquis if you have an artificial heart valve or abnormal bleeding. If you had a spinal injection while on eliquis call your doctor right away if you have tingling, numbness, or muscle weakness. While taking eliquis, you may bruise more easily and it may take longer than usual for bleeding to stop. Seek immediate medical care for sudden signs of bleeding, like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planned medical or dental procedures. Whats around the corner could be your moment. Ask your doctor about eliquis. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Expected to get hit hard by the pandemic, behuind the chair says it anticipated 40 of salons go out of business because of the coronavirus its salons with free hair color, Free Education and support. John paul, cofounder of John Paul Mitchell Systems Joins us with more on this. Good afternoon to you. Are you seeing similar themes that data i just mentioned to suggest we saw it also in p g numbers, grooming demand is clearly down. Of course you would see that because the salons closed. However, we are not going to let it hit 40 of the salons closing. We wont let that happen. Paul mitchell salon main thing is to keep salons going and thats when we came out with the stimulus package, so many salons were closed. They couldnt do business. Well, when youre closed not doing business you dont have inventory or money so what we wanted to do is say this we may the only company in the world thats only in the professional salon industry forever but thats okay but well make sure they support us for 40 years, we support them now and put together a stimulus package. One would be me going on television or broadcast, wherever i can to tell people dont worry about the regrowth the partner knows what you look like anyways its okay. Dont go to the drugstore and pay twice to get it right and we did promotion and told salons that have been loyal customers of ours a year to probably 40 years that were going to support you so we what we do is give you a stimulus package. When you open up, indoor or outdoor makes no difference. We give you free hair color, free shampoos, conditioners, enhance the education over the internet and unbelievable mitchell support free. We dont want anything in return as a way to say thank you for supporting us all these years. I started in the back of my car with 700. Slept in the car far week and it was like the American Dream for me these people supported us. I have an unbelievable life and let me create other businesses because of it. Heres why thats important. When youre out of work your inventory you have to buy. A lot of people also out of work wanted the inventory now paid in cash for the money by us giving them Opening Inventory at no charge and then asking them by the way to pass on the stimulus, how do they pass on the stimulus they called their distributors or vendors like we did and tell them we wont go out of business our orders may be small or none but theyre going to get bigger and know we will be supporting you when we come out of this together give them a positive mental attitude when people look forward it gets things better. No. Its a positive message, john. It is interesting idea the government tried to do Something Like this, too the ppp program for Small Business support to get people to keep their employees on their payroll. Did you find that that was lacking at all or was this just sort of an added stimulus to do for the salons that use your products very good thats a great question. The stimulus package was lacking because we found on a National Basis very few little salons were getting the money it went to bigger organizations so we went ahead and realized that we are able easily to be able to qualify for some of these programs but we are going to write a letter to the governors of every state saying we wont take the money and pay it out of our own pocket and we did of 6 million over 2 months. Okay we are going to pay it ourselves, our own people and even though we qualify but the reason to do this is not to take government money to move the little salons to the front of the list they need it more than anybody else so between our stimulus package to get them going and begging our government to take these little guys on, we wont take the money we wont take it we qualify but not taking the money to give them a helping hand and if other businesses would do the same thing, boy can we turn things around. So yes that stimulus package definitely helps and not stopping there for our distributors with the same problem, the inventories really went down because people arent ordering and said the same thing well give you longer to pay the bill give salons at the same time and give you special promotions of discounts so everybody makes money coming out of the bat so i would say seriously 40 will not close and make sure a good piece of them are open. Thats a good news story. Thank you for coming on to talk about. John paul, very cool idea and i agree. Dont try coloring your own hair at home. America mine turned orange in high school. Peace, love and happiness to you guys. We are out of time. Thank you, john paul we have another big week of earnings ahead we are going to hear from beyond meat, activision, etsy and disney Julia Boorstin has a report on disney. With no new movies in theaters and parks starting to reopen, this quarter will be a rough one for disney the revenue is xkted to decline 39 to 12. 4 billion while expected to lose 64 cents per share, down from 1. 35 gain a year ago and not reported a quarterly loss since 1984. Whats the outlook for the rest of the year about park bookings or ad revenue and a lot of attention paid to disneys streaming Service Disney plus expected to be a rare bright spot for disney this quarter sara Julia Boorstin, thank you also beyonces black is king is coming out on disney mike, a quick final thought as we wrap up the month and the week and look ahead to august next week. A the lot of these earnings will matter in the moment but negative real Interest Rates, record levels right now, seems to be and matdinimating whats. So im not sure if that changes getting into august. Extraordinary up 7. 4 . In the month but beaten by gold up 11 . Crazy stuff. What a crazy week its been. That does it for closing bell. Thank you for watching fast money starts right now. Im melissa lee. The lineup is steve, brian, carter and tonight on fast follow the yellow brick road why theres a golden opportunity for investors in august. Wait until you hear whats interested in buying tiktok app. Counting down to disney. Will this be a fairytale quarter . Well bring you the trade. We start with apple surging into the close to end the day up more than 10 . That is yet another alltime high and its best day since pldmarch