As much as 10 some optimism that lawmakers are making progress on the next virus relief package we got news republican senators are pushing for 25 billion in additional aid for the airlines. Nasdaq record high, gold record high, oil at a fivemonth high, 59 minutes left to trade, wilfred. Were up 0. 6 on s p 500. Ahead on todays show cbs giving up despite strong earnings and guidance, well speak with Ceo Larry Merlo about the results. Plus shares of twillio up 50 but taking a dip on earnings today. Well take a look at work from home winner. Roku, etsy and zynga analysis as soon as they cross first big stories were watching today, mike santoli tracking action, david faber new reporting on microsoft tiktok and berty on a multibillion dollar tech tale mike, first with you. Objects in motion tend to stay in motion to this rally grinding higher as a lot of the macro forces are pretty familiar right now. Another leg lower in the u. S. Dollar, real Interest Rates are further into negative territory and upward tick in the s p 500 you see this reacceleration, a little bit of this upturn we have after we broke above trading range. Pretty significant right now its almost as if were getting close enough to the old highs that it will be unusual if we didnt actually make another closer run at it within 2 at that point, maybe Trader Sentiment is going to get a little too overconfident, finally get more people located onto the buy side of the vote. Thats a reason to stall out more of a cyclical flavor of the move in the last few days. Take a look at high beta stocks, more aggressive, cyclical, financials and consumer stocks as well as energy against low volatility which is more Defense Technology you see low volatility is underperforming if you look on a sixmonth basis. Going back six months here, they are basically neck and neck. Times when the more defensive quality stocks led the way and then catchup on the high beta. As much as youd want to see high beta improve its not necessary for s p to make that advance. Today it is alleges more traction in that story that were moving toward a recovery, seen a decline in the case curve for hardest hit states in covid and therefore you can look ahead to a better recovery earnings wise. Clearly when you see the down 1. 2 but nasdaq only 0. 5 classic rotation from tech into value. Thats not quite whats happening across the market. Shares almost neck and neck. Apple given we just discussed that downgrade was lower after a phenomenal run and the downgrade and its now higher which shows the resilience of big tech names. Its certainly not a zerosum game thats what the market demonstrated the outperformance by the dow has a lot to do with disney as well, which is not really about the style of the stock, its more about the news. Youre exactly right its not as if we have a regime shift in the market. It is much more about when things lag for a little while and perceived floor underneath the market and you have credit markets Holding Together okay, the market finds a way higher. Thats what were seeing here. I have to say momentum is definitely lacking on the move to the fresh high since february so have to watch to see if its losing some energy here. Still, seems like the good news comes a lot more these days than the bad news on the economy. Adp jobs not too hot lets talk tiktok. David faber reporting details on ongoing negotiations with microsoft. He joins us now by phone, david, with the latest. What can you tell us about where tiktok stands. They are finally starting to focus on the value that is the talks between microsoft and bytedance, the Chinese Company that owns tiktok around the world including u. S. Property, which is the one at issue right now and the one that microsoft may buy. They have not yet gotton a discussion of value because they have been very focused on determining other important things having to do with the National Security concerns of the United States, which, of course, as you guys know has been at the table dealing with these negotiations as well specifically im referring to the fact that microsoft has now received what i am told by people familiar with the negotiations is a one year deadline after close by which they will have to transfer all of the shoplift wear code from bytedance that undergirds tiktoks app in the u. S. To the United States. Thats a huge undertaking not easily taken on by almost any company except perhaps microsoft and a handful of others given how Many Software engineers will be needed to actually do that transfer so now knowing they have a year to do it of course, microsoft being what seems to be the only vetted buyer from a National Security perspective from the u. S. , not to mention one of the few that actually could undertake that kind of effort, is moving forward with the discussion around value that will take place, im told, over the next two to three weeks. At least thats the hope in terms of a time line to see if they can try to get to some deal that makes sense for both sides. If youre bytedance, of course, you are at a disadvantaged position youre dealing with the possibility of tiktok u. S. Being shut down or selling it. It doesnt really give you a great deal of leverage in these conversations. So well see where the number comes in your range, well, it could be enormous depending on how microsoft feels about the asset and exactly how generous they are feeling, sara. Yeah. Big range you reported earlier whats your sense of how involved the u. S. Government is now that were in negotiations is there any way, as trump suggested, the u. S. Could get a piece of the deal . Everybody is no. Nobody ive spoken to is involved in or aware of these negotiations on a detailed level can explain to me or understands what the president was really referring to and i am told that in the conversations between representatives for the u. S. Government, who are, to answer your question, still involved in this and bytedance and microsoft, it has not come up. It was just something that wasnt even discussed after it was said so the expectation is it will not amount to anything but then again, sara, we know that when it comes to the president , you just never know at all so it is an issue, perhaps, more for the chinese. It did probably cause the founder and ceo of bytedance some issues on his end but it doesnt appear to be something standing in the way of the two sides negotiating a final transaction. David, my question, if microsoft in order for this to happen is going to get all of the ap, all of the ai software, as you said, all of the code an bring that all over the u. S. , in order for the transaction to get over the line be presumably it would come with some lechvels o restriction they would never launch a tiktok rival outside of the u. S. Going forward they wouldnt be able to benefit from getting all that i. T. And using it in regions neither u. S. Or china with that in mind, does it put a limit on the value of this to microsoft . A great point, wilf i dont know the level of detail youre pointing to in terms of whether that is a part of it but it certainly would make sense and its something ill try and find out definitively about. That said, i think the opportunity if microsoft were to move ahead, and when you speak to others familiar with the service, its seen as a very large one for tiktok you know the numbers depending on who you talk to, anywhere from 80 to 100 million argentvee million, growing, time spent very large a very sticky app, as people say. So the expected growth rate is a great one. Potentially for microsoft, at least, whatever the number might be, 10, 15, 20 billion, whatever they may spend, conceivably the opportunity is far larger even if it is limited to the United States and to canada, australia, and new zealand. David, i assume as part of your reporting you have recorded a couple of tiktok videos youll be sharing with us at some point. Only if youre going to be in them with me, wilf. I dont know about that david, as always, thank you very much. Sure thing. Now to another deal. Hes got a teenager daughter. Exactly, he can tap into that. He knows all about it. Two Massive HealthCare Companies teaming up berta coombs has the details hi, bertha. Hi, wilf. Investors may be questioning the evaluation for the deal, both stocks lowered certainly not the argument of the strategy teledoc says with the boom it makes sense to do this now. By putting them together, we think we get better engagement, higher levels of referrals and more value for the consumer. I guess i just add, this is what our clients have been asking for. Telladoc closed acquisition its an acquisition that gives them a strong berth with hospitals. Livongo would let them leverage that with draata driven management amwell providers, more primary care unitedhealth has its own doctors and nurses and they have a new app to rival that of lichlt ivongo on diabetes and virtual underwith virtual home care. Teladoc they are hoping the one stop shopping for care. After the break, golden ticker on the back of rising surprises and popularity, funds behind, more physical gold creators of that coming up youre watching closing bell on cnbc. Apps are used everywhere. Except work. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com 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. Record high hitting on breakout gains for the year sprird gold gtf has become biggest ons of gold bouillon surpassing japan, india, united kingdom. Lets bring in George Stanley steve strategist at Global Advisers good afternoon, thanks for joining us. Good afternoon, wilf, nice to be here. The first question, utilities how etf is run when someone buys shares in the market of etf, how soon after that have you bought the physical gold to match it up and where is all the gold stored. Its at the bank of london. The shares are not created until the gold is actually in the vault. Its not ourself or partners world gold counsel or sponsor that buys gold, when they make an order to buy gld shares, check New York Stock Exchange, pick up what they need and deliver to the client. If theres not enough shares available on nyc, they buy gold, make sure its available at that trust in london with irrevocable transfer of ownership. When the specific bars corresponding with that basket have been physically moved by a gentleman with a handheld forklift truck onto wooden pilots labeled spider gomd glt, thats when we instruct them to issue shares to the participants i dont have to go into the market and buy goal. They buy the gold from the trust. Instead of paying in cash, they pay in gold. I guess the important thing is its physically backed. Some Financial Products that track the gold price arent. It comes with a higher fee to have it physically backed. My question following up on that, george, is clearly during the month of april we saw oil prices go negative a large part thought to be futures contracts expiring, a lot of people take delivery when they wanted financial exposure to the price when we see the rising gold price at the moment, do you think part of that is the result of what happened to oil earlier in the year, technicalities if they want it and theres a technicality applying to the rally. No, different its a share like a share in microsoft or apple and shares in microsoft and apple are backed by the assets of those companies. Gld is backed by the gold in the vault. Theres 80 billion shares outstanding, 80 billion of gold in the vault to back up those shares, no cash, no derivatives, thats why theres no tracking error between gld and underlying spot gold prices. Futures are a very, very different thing. They can involve delivery. Typically futures are not actually physically delivered. When the contracts expire they are settled financially by people buying back or selling whatever contracts they may have or the owners will roll them forward into a future. Thats a completely different structure and only the futures are only partially backed by the quantity of gold sitting in the fault whereas gld is 100 backed by gold with no other assets in the trust at all. Wilf. It shows how much people want gold right now, the fact etf holdings are more than most governments in terms of their gold holding what do you think is driving the enthusiasm specifically at the moment i think gold started to move up 12 months ago it was in june 2019 gold broke out of a trading range that it effectively capped the price at 1,350 every time the price moved above there, somebody took profits and knocked it short back into the range. That existed 16 years, june of 2013 to june of 2019 gradually upward momentum building as people were becoming increasingly uneasy with the fact equities in this country had gone up for 11 straight years. The fact we had just in that wonderful precovid area completed a decade in the u. S. That didnt feature a recession. Nobody believed we abolished the Economic Cycle so gradually becoming more concerned about that also concerned about historically low Interest Rates. Of course with covid19 and all that happened subsequently we have zero Interest Rates guaranteed for a considerable period of time theres not a lot of solace for anybody worried about eck, not a lot in the bond market of course, again people are growing very worried about the u. S. Being 23 trillion in debt a year ago and that debt growing by a trillion dollars a year guess what, were in a much deeper debt hole now given the unconventional measures to counteract the economiceffects of covid19, so debt is another thing that is helping to drive the interest in gold no question. The difference is people are finding solace in bonds and stocks together with gold. George, thank you for joining us. After the break, buffett banks on b of a. Discuss why oracle of omaha building on his massive stake in the company. Stay with us, closing bell will be right back dow is up 315. 37 minutes left of trade shares of Major Airlines jumping this as republicans back a new round of payroll assistance. Airlines best performing group in the s p right now Kayla Tausche with the details kayla. Sara, 16 republican senators wrote a letter today to Senate Leadership advocating for a new 25 billion Payroll Support Program for the airlines because of how little traffic has been recouped in recent months as americans remain fearful of traveling an as flight schedules still remain well below 2019 levels sixteen senators advocated for a fresh round of a Similar Program for airline adjacent businesses like concessions and manufacturing who are suffering for the same reason. We should note this was part of the c. A. R. E. S. Act its been fully exhausted and many of these Airlines Warned they could lay off large fractions of their workforce beginning october 1st if this isnt renewed. This was not part of gop proposal the heals act released last week the support from such a large share of the Republican Party does give Majority Leader Mitch Mcconnell some political cover to offer this to democrats while they try to figure out where Common Ground lies as they negotiate the next stimulus package. To be clear, it would only happen if the airlines didnt make any single layoff. That is correct we dont have the exact details of what this would look like in the legislative text two different programs for the c. A. R. E. S. Act on the one hand a 25 billion grant program, so fully forgivable free money that was given to the airlines to support their payroll if they did not lay anyone off before september 30th there was a second loan program, i believe it was 29 billion that had limitations on executive pay buybacks and the like very few airlines took that money because of the Strings Attached so interesting that even though a lot of that money has not been allocated yet, there is talk and support for the forgivable money and grants to airlines instead. Thanks so much for that meantime Warren Buffett has been buying bank of america shares now for 12 Straight Days at an average price of 24. 33 increasing his stake by 2. 7 billion, he now owns 11. 9 of the company. Back in october he sought permission to go over 10 and granted flexibility up to 25 provided they notify s. E. C. Of any trades up or down in holdings within two days they must remain tacit investors. We await disclosures for the Second Quarter we know in the First Quarter he was a seller, selling out of Goldman Sachs entirely reducing holdings in jpmorgan and synchrony slightly there was an enormous sell on wells fargo in may indicating it was likely one of their major holders but we dont know who yet. Until we get buffetts q2 we dont know whether latest purchases of bank of america is a relative vote of confidence in bank of america or large absolute confidence in bank of america and change of heart from what he was doing in q1. Likely the former not the latter also worth noting, by the way, a seller of Goldman Sac