And joe santoli. Joe and andrew are off today with the storm and everything going on, thank you for being here it was one nasty storm. It did a number when you think about businesses dealing with a lack of power, it is like the plague coming down well start this morning with the markets. Nasdaq with the fifth straight positive day up 22 for the year to date. Pretty good day for the dow and s p. S p indicated up close to 20 points the dow up close to 200 points and the nasdaq up as well. The treasury story has been incredible yesterday, the 10year note at a record low this morning, the yield is at. 526 it seems the context is the same, which is the dollar weaker you see that downward pressure foreign treasuries can buy our equity yield we have bond yields below inflation. That means huge tech stocks that means gold and bonds b. What are the implications for this market and the companion market corporate wise, you have earnings better than give uptype forecast analysts could have a good fiction this the market is caught up on the zone of saying weve dotted this rally. The way the market has behaved is the way it has at the beginning of other bull markets. I dont know how long that will last you are seeing a lot of concentration. Its unclear whether youll see that kind of story market. The way it is grinding out in the last couple of weeks agree at some is point, mike, youve got to live up to the hype the market is banking on things in the economy coming back to some sort of normalcy. A matter of how long the market will wait. In the meantime, while it waits, the stuff that isnt affected. So a third of all s p stocks are still down a third just because the s p is down a third. You have a majority of market up it is still winners and losers it is basically able to hide in the Growth Stocks. Thats the way i would characterize it. You know what, mike, maybe the market has already lost its patience and thats why the apples pushing on 2 trillion and such aweighting, the market has lost patience. It is throwing money at these stocks saying 30 that is the way it has been. If you are an index investor and there are a lot of them, that helps you out you could win a couple of different ways it doesnt take very much. There is a change in tone and sentiment moving away from Growth Stocks now. Just has gone vertical in the last two days. That index would suffer as they are selling off a new. Getting to one of the big corporate numbers. Disney shares are rising as they reported a profit of 64 cents a share. With 64 million subscribers to the streaming service after nine months of operation. That was a surprise. Another big announcement, ceo said disney plus subscribers will be able to watch the mulan film for 29. 9 1 in the u. S. On september fourth this will be disneys first ever oaf to sell content on top of the monthly 6. 99 subscription fee and launching a new general subscription brand next year under the star brand and what they acquired from fox seeing stock up another 6 the first reflex was to decline on the news. It seems like the mulan release will take 30 out of my pocket sure. Im thrilled for any new content. Anything you can give me, we will take in this house at this point. Thats part of what you will see as this plays out. It was interesting how much that revenue had come down losing from the theme parks and how much revenue never developed from theaters opening. It is hard to get your head around the impact. Disney shows you on almost every level. Park revenues down 85 . The story is the differences of the businesses the streaming game and the rest of the pain. 100 million subs now for streaming between disney plus and espn plus. That beat goes on. How do you manage the future of the traditional side of the business, which is no sports ad dollar driup. At least they have the streaming line to carry you tough times. That stock did have a nice turn around as things get released about mulan and everything else. One thing i would say with that the revenue was up slightly for the direct to consumer losses were increased as well. They were up 26 this is a business that they are investing in now the market is looking through that and making sure the consumer is moving up on those things there was attention on the outperformance side as well. They shut down movie, film and tv production. There was discipline there that would encourage people and the company sits on more debt than ever had before after the fox acquisition. Well keep our eyes on disney up 6 . It is an important stock there walmart stock down in the premarket reporting the company is delaying the launch of walmart plus a Subscription Service meant to compete with amazon prime and its 150 millions we are also watching shares of apple this morning to see if it crosses 2 trillion remember 467. 77 is the price to watch. That would be when apple would become the First Company with the 2 trillion market cap apple has done something no other company has. The current 1. 87 trillion market cap, it now accounts for 6 dat 5 of the current s p 500. Surpassing the former 6. 4 set by ibm talking about this drot and how it has gone straight up. It was only two years ago and a couple of days that it first crossed the trillion dollar mark here we are two years later looking at any time when it could be all the way back up to the 2 trillion. The remarkable thing is not that earnings would have doubled. The stock was under valued two years ago. I wouldnt say it is overvalued but at a premium 6. 5 so one sixteenth of every dollar in the market is buying apple. That tells you its weight and economic power i would say before 1985, there were times stocks like ibm or gm were more than 6 of the market. Talking about how long it took to get from 1 trillion to 2 trillion. We had a guest on saying what is the difference in what theyve done from 1 trillion to 2 trillion the most important part of their business has slowed. The Services Business has slowed a little bit certainly, thats the point of Growth Services is the high margin look, Everybody Loves apple you have people questioning whether it quote unquote deserves to be at 2 trillion in such a short time from 1 trillion its phenomenal i was thinking about it this morning and why i asked about the date it first crossed the 1 trillion mark. I thought it was only a year and a half ago i remember watching which company would cross 1 trillion first and i cant believe how quickly weve jumped to this next milestone that being said, it was only about a week after apple did cross 1 trillion that the market did peak. It has accelerated back to this unprecedented valuation. Dont forget the others, it was like who is going to get to 1 trillion first. It tells about the trillion and beyond and where the market goes that stock indicated down 1. 16 down a quarter a percentage point when we come back, well give you the lastest on the stimulus talks in washington and fallouts due to the lack of Unemployment Benefits hitting businesses and restaurants. Right now, well continue to monitor the rise in the price of gold hitting new highs again. Up nearly 5 in the last week. This morning, up nearly 34. Squawk box will be right back. [ engines revving ] its amazing to see them in the wild like th shhh. For those who were born to ride, theres progressive. Puts its customers a wiin charge . Rier 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. Now to the pandemic, President Trump giving an update yesterday on the latest numbers. As of yesterday, cases are declining in 70 of the jurisdictions compared to 36 last monday. Thats a big, big number 11 out of 13 states with the positive rate above 10 have seen a decline in daily cases since midjuly in other states, the data suggests the need for continuing vigilance always strong even though the numbers are getting very good. In the meantime, louisiana governor is extending the current reopening phase another 21 days including a mask mandate and restriction on bars for curb side, take out or delivery only. Crowds are limited to 50 people. Louisiana is in the red zone for cases indicating more than 100 new cases per 100,000 people in a week so much for the early good signs mentioned. That States HealthDepartment Warning another singleday reporting. Unsure how that will affect the drop in cases reported on sunday and monday and novavax reported on monday, shares briefly fell as much as 34 before bouncing back on confusion over the vaccines safety profile recent trial participants had to be hospitalized for severe reactions. Mostly sporadic reaction and mild with fatigue and headache just noticing something we should bring in the market today, bank of america has justdo downgraded apple. They said they had argued for a multiple reiterating back in june they say since then, the stock has such a rapid multiple expansion and they point to other issues lower impact from share buy backs. Apple buys back a lot of stock potential risk of higher tax rate in the event of a domestic win in elections covid19 services deceleration. Lower Gross Margins overall. Goldman sachs rei hterated a sel now that you get the stock over 2 trillion, youll have more coming out about how the multiple has gotten too rich and expanded too fast. That does really read like a lot of excuses for down grading and looks to be overbought apple yesterday got to 45 above the twoday average. Way richer relative to what it was at the top in february maybe it needs a cooling off period doesnt mean it is a total reversal of the trend. Especially to the degree the excitement is a four for one stock. This really is a laundry list scott talking about a lot of the issues but also talking the antitrust regulations and the china trade risks. There is a huge laundry list you are right, these are things theyve been talking about the headline is the runup of all theyve seen thats right. Not that they are predicting but the price right now does not account for anything going wrong here see how it trades today. For the most part, downgrades dont matter for apple i remember when they rei hterat their sell it is almost like the market laughs at people that try to get off the apple train or at least put the yellow light up. It laughs until the stock is ready and gotten overdone already. Weve had long periods of when it has gone side ways in this massive run. See if this is the time for sellers to get anything done on apple. The expire operation of enhanced Pandemic Development will mean even more challenges for the restaurant sector. Kate has more with us now. Good morning. Transactions at major restaurant chains are stuck in a negative holding pattern. Down 11 for the weekending july 26 we had seen the data begin to improve but in recent weeks as cases began to climb, that would reverse. The group knows the enhanced Unemployment Benefits has expired. That extra 600 a week for most. Most restaurants reporting higher than normal tickets consumers may be looking for larger quantities or looking for left overs mcdonalds saying, quote, i think our expectation would be for the same reasons that there would be some negative implication if that were to roll off it remains to be seen how much this will impact smaller restaurants. The make yr players that have reported so far, weve seen an improvement in the samestore sales in march, april and may. Back to you. Kate, thank you coming up, picking up the pieces from Tropical Storm isaias it ripped its way up the east coast leaving a trail of millions without power well talk about the insurers after the break and the big gainers in the s p 500 disney getting a boost well talk about more whene e ghback w welcome back isaias left damage in its path more on the impact of the Insurance Industry many insurers are depending heavily today on video calls with policy holders rather than an army of adjusters responding to the scene probably a good thing. Storm effects were felt from florida to new england isaias made landfall as a hurricane and tornadoes. Sustained wind and strong wind it didnt last long but it sure covered a lot of territory 100 Million People were under watches and warnings 100 million under watches or warnings at least three million lost power. In hurricane hanna, we saw a lot of flooding. A large portion of damage will be covered by the National Flood insurance program. Weve heard insurers report losses and they are detailing lost related to coronavirus and civil unrest damage. Theyll now have to fold in wild fires in california, hurricane in texas and now adding isaias to that as well. Businesses are the last thing they need to deal with many have even changed their policies because of the coronavirus to lower their premiums and now facing this i just talked to a Business Company who said they had rolled back coverage of his company if you cut your policy, raised the deductible for the cap and the storm rolled through and you have a downed tree and damage, you might have owners going in and regretting they decided to cut those costs . Business disruption insurance is something ive been talking about. A lot of Business Owners were hoping insurers would pay out and those claims have largely been denied. In this case, if you have a downed tree, wind damage that prevents customers from getting in the good news, you likely will be covered for physical disruption you may have a higher deductible as typical, thats the way the policy may be written, correct thats correct. In many states, that may be much higher because it is different for hurricanes since this came in as a named storm, that would kick in that hurricane policy coverage. Thank you coming up, futures pointing to more gains this morning the s p 500 up a little more than half a percent. And later, President Trump doubling down and arguing that the government should get any cut of a tiktok transaction and before we go, a look at yesterdays s p 500 winners and losers as business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. Good morning weve been watching what is happening in u. S. Equity futures. This comes after a strong day across the board the nasdaq set another record high the 30th time it has done that this year. Futures indicated up dow futures indicated up and the s p up by 17 check out gold prices are up. This morning, another 1. 7 well past 2. 7 joining us now, chief Market Strategist at cross mark global investments. And doug cohen welcome to both of you weve seen stocks pick up. It has been strong days. The dow and s p. The dow up 2. 5 . It looks like you are a little concerned. Cautious waiting to see what we have next. Is that a Fair Assessment . We have to look at it in the way of demand. We have to look at the stimulus package. If we dont look at unemployment and those furloughed and unemployed, that is key. We have a handful of stocks really driving this market that is all well and good but we are missing that breath we saw from a month ago the stocks moving at the 20day average. That percentage is coming down we are looking at earnings yes, they are beating when you look at the numbers but expectations have come down significantly from where we were before covid we are a little concerned about the economy Going Forward from the demand side. We want to see all of that come back and all thaf will ride on the stimulus package it looks like what you you are looking at out of washington, d. C. Too yes so much is being driven now by washington i agree with the short term but the reality is that unfor unfortunately, we should be preparing for ourselves for a more difficult market Going Forward. There will be more difficult stimuluses down the road and im confident well have to face those. It sounds like you you are thinking things will get worse from the pandemic here i thinks that a wildcard. I dont think anyone has a Crystal Clear path the virus will take. We all hope for an effective treatment or vaccine sooner than latter the damage being done, you dont see it in the s p 500 you think about the destruction being done and the viable businesses and what will happen is that well have to print even more money. Ill give you a quick quote from one of your favorite guests. A gold analyst from back in the day. Alan greenspan, deficit spending is a scheme for the hidden confiscation of wealth gold is in the complex of this standing back to both the bond market and gold and other indicators tell you things are not quite right beneath the surface. Victoria, i dont hear a lot of people coming on talking about election risk. Do you think there is any . We are 90 days away where you could see change, at least according to the polls i think that is baked in right now. The market is really moving. I dont think people are as concerned when they look at what will happen in november with the new administration i dont think taxes will get a hike in that normal year that would happen you have such an overarching concern that the election would take a backseat at the time. Im not saying the market would have to play but at this time, the market is completely driven by covid that is where the risk is going to lie you mentioned gold. To come back to that i know you are a gold analyst. What do you think now that it is above 2,000 an ounce . The case for gold, i recall the 100 reasons to buy gold in 1998 that was an easy report to write. That hasnt been an exceptional return over 22 years it was a easy report because gold was trading around its cash cost you were getting the commodity aspect and the currency aspect for free you are seeing significant increase of 22 an ounce gold is a pretty good insurance for some of those risks i talked about. If gold does poorly, the other things will hold up very well. If we were on family feud, i could go through the board quickly. It is the potential for inflation down the road. All of the overarching element for gold is that we have all of this deficit spending. The potential for