About 12 today. Another market master, ams evaluation 2 trillion for the first time ever. Tech was leading now 59 minutes left of the session and were essentially flat apple not flat. 2 trillion Company Coming up in just a few minutes, we will speak with White House NationalEconomic Council director larry kudlow about the stimulus stalemate in washington the rising tensions with china and a whole lot more. Later rolling out the red carpet, ceo of amc theaters will be joining us with his companys plan to brink customers back to the movies its not going to cost you very much. Lets focus in on the big stories were watching in this final hour of trade. Bob pisani tracking the fed minutes. Joining us to discuss retail moves from pro forma starting with Broader Market weakening a bit off fed minutes. This doesnt happen very often. Usually fed minutes is not a market mover it was as wilf rentsched we lost points in the s p 500, thats noticeable given the fed doesnt move the market in the minutes. Well see what we showed earlier this year. I think the problem is with how the fed characterized the reopening story. This is basically what they said, cited extraordinary uncertainty and risks. A lot of adjectives and adverbs. They saw less improvement in the business sector in recent months kind of echoing about what kohls and walmart saying about the reopening stories slowing a little bit here. They implied, clearly, more stimulus was needed, and thats a major issue. On that what happened was bond yields went up, the dollar went up take a look at gold. Gold dropped, interestingly, on that curiously as we mentioned, stocks dropped as well in the past implications would be positive for stocks in this case it wasnt bank stocks which initially rose as the rates rose, that made sense. They fell back i think whats going on here is the fed theres some question about whether the feds dire warning about the pace of the reopening and problems with it are now starting to get the markets attention to a greater extent than hopes for stimulus would move the market to the upside those two things are battling with each other. At least for the half hour you saw there, the concerns about the reopening story dominated. Back to you. Maybe the market doesnt want a remyron theres pessimism out there at a high level. Bob, what about which sectors, you mentioned banks, whats working today. Technology is on top yesterday we reached that record high and there was a lot of chatter about just how narrow it was. What are you seeing in term of the internals today . Yeah. Its about even on the advance decline line banks are modestly higher today. The problem is its really still technology and tbechnology in amazon and google. Cyclical, rally names, banks, other sectors like energy and industrials but they never last more than a few days the big money remains in technology there is no big volume move out of technology and into those value or cyclical names, whatever you want to call them, even if you can say three or four days they rallied thats where we are. Thanks for that great segue for us, all the money in tech. No one company with more money in it at the moment than apple surpassing a major milestone today to become the first u. S. Company to hit 2 trillion in market capitalization. Josh lipton has more for us. Josh so wilf, remember when tim cook was named apples ceo back in august 2011 at that point, the market cap for his company was around 360 billion. Fast forward to today. As you mentioned, apple hitting a market cap of 2 trillion. The first publicly traded u. S. Company to reach that milestone, doubling in valuation in just over two years remember apple first reached 1 trillion in august 2018. Stock hassen about on a tear soaring 68 in the last year, last 12 months surging more than 120 apple reported and easily beat expectations when reported late july highlight three broad reasons for apples recent run cash is king in uncertain times. The app we know has a lot of it with a net cash position of 81 billion. Two, apple is benefiting from the work from home trend, too, certainly with its mac and ipad lines. Finally many investors obviously this its well positioned to capitalize on trends, like 5g, Digital Health and wearables in july luca maestri, its the size of a business didnt exist five years ago. Lower big numbers didnt stop it electric doubling in size the last two years its up nearly 60 yeartodate. But the one number that i want to focus on most of all, since late july as josh mentioned, when it reported numbers, it was down around 350, 465 now thats about a 30 gain since it reported numbers since late july, or you could say since it announced its stock split. I just dont know how much of that last 30 leg up to reach that level was down to the stock split. If it was down to the stock split, is it a legitimate part of the rally or not, im not sure i think its worth keeping in mind just how quickly its risen in the last month. By the way, 60 yeartodate gain for apple amazon, which is perhaps a more clear 2020 work from home winner up 80 yesterday. I dont think we would be talking so much about the stock split being such a major bullish factor after tesla apples fundamentals that quarter were very strong. Absolutely. In fact, surpassed expectations lower cost iphones turned out to be a lot better sellers than what was initially expected. My question at 2 trillion how vulnerable is apple to things like antitrust investigation if it is a poster child, its always been the Biggest Company in the world or has been for a while but does it make it more of a target for states attorneys general, in an Election Year european regulators looking into apps store, epic gaming and allout war probably would say they can use this to their advantage now that apple is so big. They can paint a picture it squashes the little guy in the competition epa though it is a reflection of just how far its come when it comes to selling iphones and services. The apps stores the obvious touch point. Weirdly, the thing that makes up most of the valuation is selling iphones. While they are the leader in the u. S. , global they are the third biggest smart iphone seller samsung and huawei its not even the biggest. Another factor we refer to, 2 trillion in market cap in part because of an attractive multiple which it didnt necessarily have a couple years ago when it crossed 1 trillion. Maybe not so much this year because we touched on strong earnings but last year in particular its gains were pointed to as purely multiple expansion as opposed to Earnings Growth just a fabulous, impressive, outstanding milestone across apple today. Congrats to tim cook congrats as you pointed out as well to elon musk. Who recently became a billionaire. Put to shame by elon musk and Robert Franks piece, 10 billion in gains just last week. Quite extraordinarily. Hes only fourth on that list. Also wilfred of the whole market were in, the haves and have nots. Spending happening in things Like Technology around apple and online, around apple when other Small Companies are suffering. Absolutely. Just extraordinary stuff helped by the likes of apple, tech best performing sector financials the best. The s p is higher, which will be another record close but the nasdaq isnt its just fractionally lower be interesting record nasdaq close not once a blowout quarter for retailers pointing to strength in the consumer both target and lows smashed expectations when they reported this morning. Targets profit number jumped will 0 , sale a record high, a 135 jump in ecommerce after both home depot reported expectations yesterday after pressure wider than expected lost for q2 also this morning. Joining us now to talk retail liz dunn thanks for joining us. I want to start on target, if i may. How impressive was that number extremely impressive. I think the key things for me were really the breadth of performance, the fact they saw strength across multiple categories the growth in their digital business, the growth in offerings like buy online, pick up in store or curbside and earnings flow through was actually quite strong as well. What about the outlook . Its interesting target rallied on the back of a good quarter. Yesterday walmart and home depot filled off on the back of very strong quarters because there were questions, liz, about what happens when the stimulus checks and extra Unemployment Benefits wear off and theres no back to school and Holiday Season visibility is very low, what happens to all of that. Yeah. Those questions are very valid obviously back to school is an issue. Brian cornell addressed it and talked about the 66 of students that are starting digitally. But whats important for them is they have seen that double digit momentum continue through this month, which ors arent seeing so others are seeing target is seeing a little bit of a moderation but they are seeing much more strength to flow through. I think this whole crisis has really upended how consumers are shopping, where they are shopping and what they are shopping for target is really winning on all three of those points and particularly with how they are shopping, reconditioning consumers to shop through these extended offerings, buy online, pick up in store or Curbside Pickup its a game changer. If you can keep people exhibiting that behavior beyond the crisis, thats a real win for target. How much do you think, liz, that home depot and lowes rely on the stimulus that we had over the last couple of months that we no longer have . Stimulus was important but they are also seeing strength continue i think one of the things im wondering how much it impacted their business is small and midsized enterprises, smes, retooling their business to do business in a distance world i know weve all gone out maybe not. Some of us have gone out to restaurants outside and created outside dining rooms where they have had to buy tremendous amount of carpentry supplies, plants, so its safe for people to dine. Retailers are doing the same thing, taping off sections of the store, putting up plexi glass. All of that is benefiting home depot and lows as well as people having more money in their pockets because of the stimulus. I think its a trend that will last a few quarters because people will be retooling for living and transacting differently and living in their homes a little bit more a targets longterm trend, they are acquiring customersthat will stick with them beyond this crisis that explains strong share price. Liz dunn, thanks for joining us. Thanks for having me. After the break, despite the record run for stock market, bank of america says u. S. And Global Economy are in a very bad place. Well discuss all of it with National EconomicCouncil Director larry kudlow next youre watching closing bell on cnbc. Turn on my tv and boom, its got all my favorite shows right there. I wish my Trading Platform worked like that. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. You say that customers make thelets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g, everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad. Your wireless. Your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch and save up to 400 a year on your wireless bill. Plus, get 400 off when you preorder the new Samsung Galaxy note20 ultra 5g. 43 minutes of trading. Stocks at record highs, a ferocious rally back from the march lows u. S. Economy still remains sluggish with big parts of the economy struggling and millions unemployed the Federal Reserve just raising the alarm itself saying Economic Conditions would remain weak joining us now from the White House NationalEconomic Council director larry kudlow here for a first cnbc interview welcome back, larry, good to see you. Thanks, sara, appreciate it. So you got your v but its in the market but not in the economy. Why do you think that is i dont know. If you rundown all these, housing sentiment, starts, permits, manufacturing production, auto sales, Consumer Spending in general, retail sal sales, i think its a very Strong Economy coming back and the fed will do what the fed is going to do. They have done a good job up to now seems to me. They will probably stay on the easy side. Look, its hard to recover but i think the Third Quarter is going to be a very high number, 20 . Atlanta fed talking 25 . Thats their view, not mine. But still its a great number. Its interesting i think and suspect as some private analysts are saying this is selfsustaining two reasons. Number one, inventory basically collapsed in the Second Quarter and now here in the late spring and summer months weve seen a huge pick up in car did heened make, auto demand, used car prices rising as an indicator. They are going to have to rebuild inventories, great for factory sector, Manufacturing Sector and the entire economy. One of the reasons weve seen this nice bounce off the bottom is the stimulus your administration provided. Im confused why the white house is taking such hard time against expanding stimulus or going in the democrats version of trillions of stimulus. Isnt it in your interest, the president s interest trying to get this economy back on strong footing to keep those Unemployment Benefits flowing and keep money flowing to the broke state and local governments . Why are you drawing a line here . Look, we are providing assistance weve been trying to negotiate with the other side for several weeks, for many weeks were mid to late august, started end of july weve already given 3. 5 trillion and the economy is in better shape than it was last winter on the other hand, sure, the president has taken quick action on executive orders to provide unemployment assistance with the states you can get 7to 800 per worker per week thats a very handsome and generous number. We want kids, schools to open, bewa we want businesses to stay open, jobs, thats our ask we put on the table 5 billion for schools, unemployment assistance the president has payroll tax cut as an executive order. Were plenty willing to talk they have come back to fund the post office, which we will discuss. Now that they have come back lets be realistic lets stay on track this covid, make this covid only not a wish list from the democratic party. Larry, as we get concludeser to the election, do you think either side, both sides red line will soften or harden. Wizard, i dont want to negotiate on the year. Steve mnuchin is doing a fine job and well see. Weve had our asks out there for quite some time. The reason for executive orders on unemployment assistance and payroll tax cuts and evictions and Student Loans is because we could not get a bipartisan agreement. Our asks are in that deal but the deal hasnt materialized sorry about the noise, they are rebuilding something out there so the president took matters into his own hands i agree with sara, we have to be very careful we want to keep the economy liquid and provide as much stimulus within reason as we can. Lets open schools safety and security. If we need more money for that, lets ask. I n youknow youre a low. This has been a low Tax Administration sara mentioned the v in the stock market, clearly more pronounced than any recovery even heading in the right direction and economy highlighted by 2 trillion market cap for apple and the fact that elon musk has gained 10 billion in wealth in just the last week. Would you consider increasing Capital Gains tax just on stock market holdings, which have so clearly benefited from the loose policy from the fed and clearly benefited the haves in the society than have nots. Whether its Financial Assets or real assets, machinery, office buildings, whatever, why would we want to create or block investments or investment incentives the president , when he announced executive orders, he not only put in the payroll tax cut, payroll tax holiday, but he also mentioned lower income tax and tax reform and lower Capital Gains taxes. We want a big growth here. Thats the big point trump economics has always been growthier. We dont want to put barriers up, reduce incentives. We want to make it as easy as possible for people to succeed so no, i dont anticipate. Those are post election questions. Youll have to let President Trump weigh in on that, but i can tell you from our conversations so far hed rather have low tax and reforms than higher taxes well leave higher taxes, 4 trillion, to the other partys ticket. You mentioned the executive orders on unemployment claims. As far as i can tell, larry, only arizona is set to pass out those additional funds only eight states have been approved for those grant loans from fema. So its not clear how quickly that money is reaching unemployed americans across the states or if its going to reach them at all. I think it will reach them. Weve made it as easy as possible for the states because they can use prior Unemployment Benefits of 100 so weve made it very easy and well give the effort 300 i guess eight or nine states have applied i can assure you those applications will be granted by the department of labor. We are accustomed to working wi