Early investor will join us to talk air bnb power lunch starts right now the markets are at all time highs. Usually means great things on wall street but means much worse on main street these days. Well get to Steve Liesman for more on that lets start with bob on the market the low print was at the open were 25 points above that its the same pattern that we have seen for a while now. That is Technology Leading and consumer discretionary, amazon mostly, pushing the market to be upside industrials, energy and banks and energy has been on a downtrend for the last six or seven trading sessions and so have bank stocks they had a brief rally about two weeks ago. They have been down on trend for the last six or seven trading days i mentioned the ten new highs but were at new highs its because the megacaps continue to move the market forward. You get the big five moving up that pushes the market up even if the rest of the market is down semikwuk semiconduct iors are down trending we have nvidia just barely up. Intel is doing a big buyback anything digital, anything stay at home is doing well. You see zoom there thats a new high for zoom, slack, activision. Anything doing with stay at home continues to generally do well back to you. Lets turn to main street where many small and mid size businesses are likely to never reopen steve looking a t the Economic Impact that will have. Wall street is living the dream of new highs, a nigh matm is developing on main street tens of thousands of Small Businesses are shutting their doors permanently. The economic effects could be felt for months and years to come the work shift Management Company found that Small Businesses, those with fewer than 500 employees are closing their doors at twice the rate of Bigger Companies 10 have scheduled no shifts compared to 4 of the larger clients. Dave gilbertson is Vice President says were going to see a long, slow bleed out of kpae Companies Going out of business. It will take 18 months for it to play out he lends to small and medium size businesses says flows are off 70 to 80 . Youre not seeing capital coming into the sector. 59 of businesses that shutdown in the pandemic have closed permanently. That percentage is rising. So, stooefr, how does this, these facts, how does this ripped through the economy what are the economic imp implications if so many of these Small Businesses do stay shut. I think the biggest impact probably unploim Bigger Companies may be taking this business away from smaller businesses theyll do the job with fewer employees. Thats one aspect of it. These Small Businesses become the big businesses they are the short term impacts. A longer term impact that shoes up and potential growth. I dont know about your town but i know about mine which is reasonably prosperous town in northern new jersey. As i drove this morning down the main drag in my town, the number of properties that were for rent or shuddered or Space Available was amazing. It was maize iamazing. A part from the human cost there and the decline that is a result of that, i can easily see landlords getting into really distressed situations and that will work its way into the Banking System maybe not the big mabanks as the Smaller Community banks. I think those things are right. Youll have landlords take a hit. That could show up in the Banking System the Federal Reserve will have to deal with it more broadly, theres a bigger question well talk about how many of these businesses should the government save. When we come back to what will be normal, we dont need all of those restaurants. We permanently shift to buying more stuff to amazon more stuff from walmart online theres going to be a reckoning to this that will have implications that may play out of years thanks. Well talk a bit more about this Small Businesses suffering and probably no more stimulus on the way, at least not before labor day from d. C will there be some kind of reckoning on wall street if the troubles on main street continue jim, you and i go back a long time im going read my notes and then im going to let you speak i think its great news because why wall street is doing well is because main street momentum is improving. The stock market, anew bull market, both likely to last for years. The my is going from a depression like collapse to a wartime boom i think Company Profit results may blow away current wall street expectations. This is an unprecedented bounce in Economic Activity with all due respect, you got to explain that to me that feels like an awful lot of optimism all in one place. Its a lot of different concepts going on there, tyler i would say this, having wall street go onto new highs while main street is still in desperate shape is very common in 1982, the stock market reached the new high the rally started in august. It reached new high by tend of the year we still had a 10 Unemployment Rate in the economy. We didnt get the rate back down to 5 until the end of the decade even though stocks kept going higher we reached a new high in 2012, we had an 8 unploim raemployme. The fact that the markets a new high while we still have a very high Unemployment Rate, while we still have a lot of suffering on main street is fairly common with past crisis businesses go out of business during recessions. Thats fairly common think of all the bankruptcies we had back in after the 09 crisis, for example. Yet we came back from that i always say that wall street and main street move together just not at the same time. Wall street going up, the reason its going up is because were having a pretty good bounce on main street. Look at how much unemployment claims come down look at how much the Unemployment Rates come down look at how much the leading indicators come back retail sales have gone back up to all time highs. Housing activity is up a lot were in the midst of what will be a 20 plus real gdp quarter i dont think its totally disconnected from main street. Its reflecting that bounce. The fact that stocks are going up, really is the best news for main street because what its saying is not only is the economy bouncing but its likely to continue to improve id be much more worried about main street if the stock market wasnt going up. All right well come back to some of this in a moment. I want to bring stephanie into the conversation it seems to me that you have assumed as your base case that biden is going to win this election am i right on that and, if so, what does that imply about tax policies and that the democrats will control the senate . What does that imply for tax policy and how might that affect the stock market and corporate profits in 2021 and beyond thanks for having me. The last time i was on, you and i had a fun conversation about trump being a cooler head with the stimulus efforts that congress couldnt get its act together so trump swooped in and that created a nice bout of political momentum for him theres definitely a scenario where trump can win the election based off of his handling of helping people right now who need help. That actually is areally nice theme to look to there are a lot of people and Small Businesses who feel like they need help and they are looking to the federal government everything we do at fiscal markets issi looking at politics and policy when i think about the divide between wall street and main street, i think about what youre talking about how the lag between when the market was up i think about the 2016 election when trump was first elected he was largely elected on a group of people who felt like no one was paying attention to them and the centers of power in this country. I think if biden does win and democrats do win, i think theres going to be a reckoning in the realm of Wealth Redistribution i dont think democrats will tolerate this divide for any longer i think they feel its a political mandate of theirs if they do win to do something about this to address the wealth disparities, including the potential for what has been talked about the warren and sanders campaign, a wealth tax greater incomes taxes of higher brackets. I think the whole system could get reworked to take from the rich to give to the less jim, well talk more. I hope youre right. I hope your optimism is born out because that could be good for the country, good for Small Businesses on main street and good for the investment class as well dont get me wrong there, im rooting for america to come back ive got to tell you, i have not seen what i saw today, the morning, in my town. I didnt see it that way in 2008, 09. I started my career curiously, enough, in financial journalism in the summer of 1982, which is when the market took off partly because Interest Rates had peaked and were starting to come down. Jim, thank you very much the airline is saying it needs more phil is here with that story the number of airlines said we will need more to guarantee the jobs of employees and if we dont, then come october 1st, it will have to be layoffed for a number of the airlines today American Airlines out saying it will have to become a Smaller Airline if theres not a second cares act for them. They will be ending service to 15 cities starting on october 7th. That would cut all commercial Airline Service to nine of those cities as for a second cares act, they are asking for 25 billion. The Airline Unions and carriers are backing for all airlines it would make they keep the current routes it will be no service ending and would prevent up to 75,000 airline employees from being laid off come october 1st. You will have to lock in these jobs through september 30th. Those job guaranteed end on october 1st. Delta saying it will block the middle seat on all of its flights through january 6th, including the holidays which could get thbusier than they are now. I love those middle seats im going to miss able to be in one of those phil, thank you. Coming up, a reopening reality check. Colleging struggling to safely i think i took the breath away of phil. To safely return students to campus while some are throwing in the towel all together. A top doctor will join us to tell what they are getting wrong. Amc, the big theater chain reopening today. Cinemark following suts tomorrow but will people come back . We have a special report on that music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. 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. Welcome back, College Students would norally have to worry about getting good grades and keeping off the freshman 15 but there year brings a whole new set of challenges. Colleges around the country are rethinking their fall semester plans with more and more opting for online only. Is there a way for College Campuses to keep functioning during the pandemic . Its great to have you here. Welcome. Thank you for having me is it possible for colleges to stay open even with an out yn break of covid cases well, testing is really the guide for this to happen we learned from unc and notre dame that one of the lessons and take aways ie testing frequently enough to recognize that an outbreak was happening and changed their policies in realtime to adapt. Not flying blind at all. Theres a lot to learn from those cases. Were still not sure how they will play out. Knnotre dame has suspended inperson classes but then what. What about the schools that have football practice that goes on but sticking with Online Learning seems like theres a double standard it does theres a high likelihood that athletes would need to be tested more frequently than an average Student Living in a resident hall the focus should be on a priority set of schools. The ones that are like to be the most vulnerable to an out break and thats really historically black colleges and universities where students are returning from neighborhoods that have high prevalence of disease there are wealth disparities in the resources the schools have and there are health care disparities. Those schools that dont have the endowments to support the type of testing thats going to be required to reopen their schools safely you work with a lot of those hbcus. How are they planning to cope with the outbreaks if they have outbreaks will the students be sent home or are they going to soldier on ive been working closely with many of the hbcus and one of the strongest leaders has been Delaware State University they have been testing students since july as more and more are returning to campus. They have a very rigorous protocol in place for the frequency they are testing the students a clear action plan for when a student becomes positive without these huge endowments were really relying upon corporations, High Net Worth individuals, donors to be able to support the testing that is needed for these schools to remain safe. Any lessons for public schools, you know, younger kids across america in. Its hard to know whats happening unless you have the data testing teachers who are being most exposed to student and a different mix of people will be the take aways for schools of all ages thats incredibly costly. Thank you for joining us. Its good to have you today. Thank you for having me still ahead, air bnb filing confidentially to go public. If were reporting it, how confidential could it be Rick Heitzman will be here to talk about the future of the sharing economy. Plus, shares of deere near their 52week high while caterpillar is struggling to keep us. Thetraders will tell you which of those they are betting on ahead of their Earnings Report a deere and a cat walknto ia bar. Well groive you the punch line after this hey you, yeah you. I opened a sofi money account and it was the first time that i realized i could be earning interest back on my money. I just discovered sofi, and im an investor with a diversified portfolio. Who am i . i refinanced my Student Loans with sofi because of their low Interest Rates. Thanks sofi for helping us get our money right. Welcome back to power lunch. Industrials pulling through this earning Season Results from at tcaterpillar sh they are finding ways to cut costs. New data showing that demand for tractors are starting the rise does that bode well for the agriculture giant deere that reports earning tomorrow morning . Lets bring in the trading nation team. I know you have been watching the disconnectbetween caterpillar and deere. Which name do you rather own he here i prefer john deere its been laggard this year. I tie that to the fact its tied to Global Economic growth. John deere has been really stable in their farming segment. This year we have seen a rise in gardening due to the pandemic thats been likened to the Victory Garden of world war ii im bullish john deere as an options trader i love selling put credit spreads directly before that report to capitalize on that the stock has done well it has done well. Its our opinion that deere will continue to out perform. Year to date deere is higher by 10 . In late 2018, deere really started to pull away and out perform. That continues to today. Overall, we want to continue to stick with leadership. We want to stick with momentum and be involved with charts that are breaking higher. That means we want to set the numbers tomorrow its one of the only industries investing in ai thanks for joining me today. Shares of Movie Theaters chains are higher as amc reopening 100 of its theaters today. Will anybody show up Contessa Brewer is live in connecticut outside an amc thats been closed for five months reporter you open, kelly, they come. I asked the family that came from brooklyn, driving an hour and a half why would you drive that way for a movie thats been out for years. You know what they told me we havent been out for years. Grab your popcorn and drink for the epic tale of reopening of american movies. Stock slices. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. Schwab. Its totally not the same without you. Were finally back and cant wait until you are too. Universal orlando resort. 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