No nationwide lockdown thats the message from President Trump as the feds deal with a growing list of hot spots around the country and why the white house is saying it wants to cut any deal between microsoft and chinas tiktok it wants a piece of the action tuesday, august 4, 2020. Good morning im dominic chu in for Brian Sullivan today kicking off your Tuesday Morning with some stock instability. The dow down some 40 points, the nasdaq down 40 points as well. The s p off by 18 points the market rallied after capping off a win streak the dow rallied more than 400 points as you are seeing in this time lapse from yesterday. The index hitting another alltime high with the 29th record close of the year so far. The tech sector broadly higher closing in on its alltime high as well. The S P Technology center up 24 gains year to date sales force, microsoft, facebook, take two interactive, qualcomm apple, after a more than 10 gain on friday closing up another 2. 5 , the stock is now just Percentage Points away from hitting the 2 trillion market cap mark the price to watch here before that fourforone split. Watch 677 thats the number that gets them to 2 trillion and gold, up another nearly one half of 1 1,994 an ounce. Green in asia overnight. A very mixed picture in europe you can see the shanghai composite down the hang seng sang up. Some tractional losses in the dax and the uk and the cac in france up nearly 1. 5 of 1 right now. New reasons for optimism in the United States. President trump rules out another nationwide lockdown, plus the east coast braces for the first category i storm of the season good morning, the covid outbreak in the u. S. Appears to show some signs of slowing reporting fewer than 50,000 cases for the second day and lower death count with a string of days with more than 1,000 fatalities reported. California reported less than 6,000 new cases for the first time and florida reported fewer than 5,000 for the First Time Since june new figures come as new jersey governor is retightening restrictions on indoor gatherings to a maximum of 10 people down from 100 President Trump said a virus vaccine may be available to the public before the end of the year the president adding another nationwide lockdown would do more harm than good. Outside of the virus, the u. S. National hurricane centerdown grading isaias to a Tropical Storm. Sustaining maximum winds of 65 miles an hour, down from 85. Isaias is located 40 miles south, southwest of wilmington, North Carolina well have a live report from North Carolina at the bottom of the hour the nasdaq coming off the 32nd intraday high and 29th record high close for the year joining me now, rob morgan i feel like it is a broken record every time we come on, we talk about a new record high especially for the nasdaq. What exactly is going on well, dom, in some ways, the tech sector is kind of immune to the virus. Unlike other sectors that require customers to cally come into stores or restaurants and the tech sector has gotten visibility Earnings Growth obviously investors are bidding up the stocks. At the same time, its really by far the most expensive s p sector at that point, you probably noticed, i dont have an overweight, it is a speeding train that keeps chugging along. If we talk about the fed being a tail wind, does that mean for things to stay the way they are now, the continued path to the upside . Absolutely. You hit the nail on the head the fed made it clear, theyll be able to print money until those mandates are met we are a long way from either of those being met. The fed will keep printing money. That is great for stocks the path of least resistance is up we talk about the fundamentals some of the covid stocks that benefit because we are working from home more is this the case where you can make a fundamental case that it is worth vesting in right now. Valuations aside we know they are rich. On a casebycase basis, absolutely there are a lot of companies out there banging the drum they are covid resistant from a business standpoint. Technology has a lot of those. There are other sectors as well. What other sectors are they right now when im looking at sectors, im not necessarily factoring in covid im looking at sectors attractively priced. Right now to me, thats really staples, financials and telecom. Those would be my three favorite one last thing, im looking at 10year yields now. 54ish basis points is it a cause for concern with no price ahead it is hard to say what the fed is doing right now a lot of the rules of the yield curve, we are reappraising them. Certainly, most of the companies that have reported earnings and being beaten by an 84 margin, theyve lowered expectations that the economy is coming back but will be below where it was even fed chair powell said what it was there is growth out there but to the slightly ratcheted level showing a big decline there. Always good to get your thoughts we appreciate it we head to dc where lawmakers remain add an impasse over the next round of relief and why President Trump wants a cut of any deal between microsoft and tiktok and why a disproportionate amount of africanamerican businesses are being shut out from ppp loans. Well talk to several firsthand after this what happens when a wireless carrier puts its customers in charge . Well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with xfinity mobile. Call, click or visit a store today. We continue to watch developingdetails around the sale of tiktok to microsoft. Reporting this morning, it is not just microsoft but other Technology Firms in talks with tiktok owner bytedance two other possible contenders coming after new comments with the president over comments from microsoft. Eamon javers with more good morning the president wants the money for the u. S. Treasury but there is no legal basis or predicate that the u. S. Should get a payout the president , however explained this twice yesterday here is one of the instances here is how he explained his logic about why the United States government should get paid here. Whether it is microsoft or somebody else or the chinese or what the price is, whatever it is, the government should receive a large portion. Because we are making it possible it is like the landlord and the tenant we are sort of like the lease. We make it possible. Tiktok is a Great Success but a big portion of it is in this country. Well see what microsoft says about is that. There is no legal forcing mechanism for the u. S. To force microsoft. Microsoft would pay bytedance in order to buy tiktok. Microsoft might offer up something to the treasury at some point well wait for them to comment on that. While we have you here, what is the latest on the virus aid talks coming out of washington, d. C. Are we any closer to a deal getting done when you look at the rhetoric needle, good to bad. We went from good to bad, that was sort of back up again. No specifics though. We did have a meeting from Mitch Mcconnell yesterday from white house staff. That did seem to have gone pretty well. Saying there are some areas of general agreement including the ppe extension for Small Businesses but they are still spread apart on these negotiations even as American Workers have seen that 600 bonus unemployment go away the hot spot in washington, d. C. Still on deck, grounded. Why shares of Richard BransonsVirgin Galactic may not be ready for liftoff yet and bp, made a dramatic move to its dividend. After this announcer todays big number, 300 thats the increase in tiktok daily active users in the u. S. Over the last 18 months. The app wasdo dnldeowoad 130 million times in the u. S our market share looks good, but. Drone voice where are the bagels . Well, cdw can help you modernize your company the right way, with a scalable infrastructure from hpe, making you more efficient and secure. Great. Oh. [ drones buzz angrily ] lets find a different room. For transformation that works, you need Hewlett Packard enterprise and it orchestration by cdw. People who get it. 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. Right now, we are watching a live shot thereof portsmouth, virginia not far from where hurricane isaias is active well keep a close eye on that it was down graded earlier to a Tropical Storm after making land fall there shares of Virgin Galactic lower after they reported another quarterly loss telling investors it does not expect to fly until the First Quarter of next year after it concludes testing. Adding it plans to raise 460 million. Shares in aig lower after q 2 profit falls aig posting earnings of 66 Cents Per Share topping estimates. Those shares off 2. 75 and shares of pb trading compared to a net profit and the company cutting dividend in half the first time it has cut its dividend in 10 years you got to go back to deep water horizon for those cuts still ahead on the show, digging in to the plight of blackowned businesses and why they may be shut out of getting ppp funding. Well talk to a few Business Owners and the firsthand experience there we are back after this just over a year ago, i was drowning in credit card debt. Sofi helped me pay off twentythree thousand dollars of credit card debt. They helped me consolidate all of that into one low monthly payment. They make you feel like its an honor for them to help you out. I went from sleepless nights to getting my money right. So thank you. Welcome to camp tonsafun on xfinity its summer camp, but in your living room. Learn how to draw with a minions expert. How to build an indoor Obstacle Course plus. Whatever shes doing. And me, jade cattapreta. The host of es the soup camp tonsafun. Its like summer camp, but minus the poison ivy. Unless you own poison ivy. In which case, why . Just say summer camp into your xfinity voice remote to join. Stocks fight to keep the early action going as Technology Sector once again fuel the market rally President Trump adding you in stipulations to a potential microsoft deal saying the u. S. Should actually get a cut of the final price tag and isaias making landfall overnight. Well get a live report from the storms epicenter next you are watching Worldwide Exchange on cnbc. You can see hear the nasdaq is lower by a similar point amount off seven points off the open implied. Remember, all of the averages rally after capping off a fourmonth win streak yesterday. Higher by more than 200 points to finish the day. Again, all about technology and the nasdaq another alltime high seeing another record close of the year 29 of them the tech sector closing broadly as well from the sector. Remember, the biggest sector in the s p 500. Names like sales force. Com, microsoft, facebook, taketwo interactive and qualcomm taking highs yesterday. Leading the charge, apple with more than 10 gain closed up another 2. 5 yesterday to another alltime high and the stock is percentages away from hitting the 2 trillion market cap amount the price to watch there before the four for one split goes into effect right now, the price you want to watch for is 467. 77. We cannot forget about gold, another alltime high. Indicating about half a percent higher 1,993. 60 the last trade there to breaking news on isaias slamming into the coast of carolina and being downgraded from a hurricane to a Tropical Storm. Jay, as you are looking out there now, i dont see a lot of rain but we know it has been slamming the carolinas now what kind of damage have you seen no, you are right we have downed trees here, limbs as well. Lets get you the Current Conditions still getting wind gusts at times. Thankfully the rain has stopped. This storm making land fall about 40 miles south of us with a lot of strength up the east coast. Violent surf, driving rains clearing a path to the storm early path evidence to the pow you are of isaias. Flash flooding along the shore line with water expected to build and move inland. Be prepared for a lot of rain as much as seven inches in some places rain combined with high winds can lead to flooding, downed trees and downed power lines even in areas, familiar with the devastating effects of the storm, this hurricane is different. When you are already feeling concern and strain from the pandemic, you hope this is not the stick that breaks the camels back shelters where evacuaties will have to wear masks and social distance. The shelters will screen for covid. If someone has symptoms, theyll be directed to a sheltering option for isolation or medical attention. The crucial path focused on prep the fastmoving storm expected to hit communities along the carolina coast to maine. The system downgraded to a Tropical Storm the big concern that continuing rain that will cause flooding in many communities another problem is the possibility of tornadoes in fact, the system spawned several in this area overnight jay, we are showing graphics about the storms anticipated path it is moving up the gut of North Carolina to virginia and washington, d. C. This is not a storm forecasted to go out to sea. It will go right up through new york city and western massachusetts as well. What kind of weathershould we expect in the northeast overall . You are absolutely right. It is going to linger at least another day and a half it will slow down a bit. That is an issue flooding is a big deal with this storm. The wind is intense as it came across the shore line. It will get a better idea of the damage once the storm comes up moving forward, youll see a lot of heavy rain. Coming way too fast for the area to handle. Moving through the north to lead through participation. They are low on rain this water will have nowhere to go flooding is an issue it is a concern, stay safe. Thank you very much. Now to the latest situation involving tiktok cnbcs own eunice yoon reporting that it is not just microsoft but two other Technology Firms in talks with tiktoks owner bytedance after President Trump arguing microsoft should buy all of tiktok and the government should get some of the proceeds from this particular hypothetical deal. Whether it is microsoft or somebody else or what the price is, the United States should get a very large percentage of that price because we are making it possible without us, i use the expression, it is like the land lord and the tenant. Without the lease, the tenant doesnt have the value we are sort of in a certain way the lease. We make it possible to have the success. Tiktok is a Great Success. A big portion of it is in this country. President trump didnt explain precedent for the action despite all of this, reuters will be overseen over the committee. Something known as cfius under new rules, they can collect filing fees under cfius refew but they cant exceed 300,000 lets discuss all of this with Corporate Finance editor for the financial times. When the deal first came out, we thought, if anyone is going to buy this, it would bemicrosoft is this a deal that would make sense . There are so many different perspectives if we are going to start with microsoft, the attraction for them is a move to social media on the back of an incredible resurgence this is Satya Nadella elsewhere to do deals and add to parts of the business of microsoft which seems to be working well as share prices are the baro meter of that. Caught people off guard with the strength of the business generally to move into the space more fraught with more attention and scrutiny from the general public and congress. It seems to be an area they want to stand theyve shown their hand it is fair for us to say, there are reports of others being interested that by no means well end up with a deal at the end of this you talk about the perception of the synergies in this i remember growing up being an office 365 user. I had word, excel, power point, internet explorer. All of these Work Together what does tiktok do to the eco system im trying to picture a world where linkedin is married to tiktok does that have to happen no. It doesnt it is more about the value the reason why everyone is sensitive about tiktok is the enormous information generated the amount of information it produces it seems like cfius is unnerved about that being in the hands of the Chinese Government my understanding is that the concern is not about data leakage but the enormous power you have if you have 100 million americans data coming into the system thats the specific risk if you are a company and we live in a world where people like to run around saying data is the new oil. The value of that is something if that is an sorted with x box, how can you build a smarter web around all of us and then monday tie monitize us. I joke that amazon probably knows more before me than my family because of the data it gathers around me. This is a time where they are looking to protect society can this get done allowing other big Technology Firms to made acquisitions like this my feeling is that big tech is so powerful right now as the crisis has gone on, it only becomes stronger and further speed up the shift in power to them that theyll 100 be using power to do deals microsoft and tiktok is an example of that. Well see more and more examples of this where big tech is doing acquisitions there is no