And see where they stand creeping up. Over the seven handle at. 713. Well see what kind of core relation that may have with the equities market. Melissa, welcome to the club this morning it is great to be here and start the morning with you guys. I say that with a hint of sa sarkasm. Shes a regular you are ready to play. Always, you got to bring it each time. No i in team. Theres only a me upgrading laura overnight and learned it is rapidly intensifying and bracing for great winds. A category 4 with winds of 130 miles an hour. More than half a Million People have been ordered to evacuate from these areas 84 of off shore gulf production has been shut in compared to 90 in katrina not only is this having an impact on Oil Productions and industries from this storm that could impact tonight salesforce shares soaring after the Company Reported earnings of 1. 44. More than doubling revenue is above estimates core sales of the cloud road by 13 . The company got a big boost on investments. Guidance for the quarter was below estimates but revenue was higher than expected sales force replacing exxonmobil before the dow quite a move that is over 13 andrew in the meantime, just before the top of the show, we have new details now of the most anticipated public reviews of the decade palantir planning to list under the Stock Exchange under the ticker pltr planning the direct listing. The same path slack and spotify took that means, the company not raising new money but allowing others to sell into the new market last year, despite a 25 increase of revenue. Worth noting the ceo said the company was founded in Silicon Valley we seem to share fewer and fewer values and commitments from the start to turn down opportunities repeatedly to mine data recently announced plans and clear on its stance in china. We have chosen not to hold the impact and will propose three classes of stock that will be held by a voting trust held by the founders just below 50 percent of the voting structure power including facebook and google fur concerns about the power structure, that is something they do share in common with the rest hes been critical. It is a data driven company. This is a Company Built on the back or in the afternoon of 9 11 to track down terrorisms described as a commercial internet giant using data relative to the way. Kind of a new version of woke. Almost certificate of a right leaning version of wokeness. You could imagine the truly woke those in the military complex working against wokeness you would think. They are attacking all the pc companies for stealing their privacy and selling it it is kind of the reverse wokeness i like it. It is of sorts. I should note. Alex would define himself as a selfdefined libertarian. But in fairness of the middle of the election, he has been publicly against this administration and President Trump. From a political perspective, it is much smarter for a company to say, you know what, china, we are going to pass on your business right now they are working for the military and the cia, you cant also host servers and data from china. You are forced to choose sides some will slam it saying you will forego future profits they know exactly who is controlling the company. Theyve got structure where the owners are in total control. It is kind of an enig mau. Hes an interesting guy hes a very principaled guy with clear principals his clear take away is the frustration as far as when google decided not to move away from that government his view of the American People would have a much greater acceptance of the Data Collection and other things that some people may not perceive as positive if it was a positive benefit helping the country in that way. Hes always trying to push the conversation in various directions well see. What will be curious to me is how the company gets valued in the markets. It does still lose money an enterprise money, a sas company, very high capital cost in terms of when they get a client, they have do a lot of white glove work with big clients. Once they do, the idea is, are they locked in can that client go anywhere . Well see how investors value that you remember in lord of the rings that palantir was that weird orb. He couldnt keep his hands off it and then he was like in a trans. You remember that im in that transright now. What else is new. Coming up you know whats that like, thats just like when you turned on the Convention Last night. Did you see some of that are you okay of course, it no, not eyes wide shut it was wide open i had them open like i was in clock work oranges i can just see. Some positive signs are containing the pandemic in the u. S. Especially in some hot spot states we head to break, check out shares of Toll Brothers. Signed contracts for luxury homes broke. Well talk more about real estate in the 8 00 hour with sam zell well be right back. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. What happens when switch to Xfinity Mobile . 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. An update in the u. S down from a peak of 70,000 infections on july 22. We never did hit that 100,000 a day that fauci said was possible if we didnt tighten things up a little bit more about social distancing dont go to bars without a mask. I dont care if you are 23 state of texas down from about half of the peak and florida down from 4,000. Arizona is reporting about a fourth of the cases a day than it had in the peak officials warn that School Reopenings and pandemic fatigue during the Holiday Weekend could cause a spike. Dr. Scott gottlieb, cnbc contributor and on the board of pfizer labor day. Forgot about that. A lot of people get together im trained. I got to tell you that things i used to do i feel people if they are closer than five feet it is very strange right now is that ever going to go away . I think it will look, i think we have to get through fall and winter. Well see how it goes. A risk of an uptick of cases this is a 2020 event as we get to 2021, well have enough exposure. Hopefully a vaccine at some point in early 2021 will get this behind us well see as some people maintain a level of vigilance with the spread through the fall and winter. I can think of two other areas and one is like a rapid saliva test. Is this is like a flulike thing. That would be able to nail it on the spot and hopefully get that person where they are not going to be contagious and the other thing. Like a cocktail where if they zap it and didnt decrease 35 mortality but knocked it out that would be good too is there progress on both of those . I think well have both of those. Even setting aside vaccines, antivirals are progressing. There are a lot of competing trials competing for patients. Well see quickly lateral flow tests come on to the market like a pregnancy test that you put saliva on a swab and you wait a few minutes. Theyll give rapid results and be fairly reliable that will change the equation of doing screening. That will allow for and afford the operation of testing and do it in locations where you dont have the capacity. Things are going to change quickly in terms of technology to combat this doctor, speak to that testing piece. I just took a saliva test. Yale announced, fda announced that would be used more broadly. How quickly do you see the equivalence of that test at home and a similar price point. When do you think that test becomes available and is it used simply by businesses and others and almost on a surveillance basis which may be the only way this can work properly theyll be available quickly theyll not be available to the consumer in the home youll have to have them run at a place you have a nurse or doctors office, some kind of medical convention or laboratory the agency, the fda is requiring can companies they test to the market for consumers to put in place some mechanism they dont want people diagnosing those at home this is still a special pathogen that requires Public Health. They are trying to figure out the work around and test results to be reported the test would read out a bar code and youd have to take a picture with your phone to get the result that would be uploaded to the ser central server in terms of the market in significant quantities where there is not going to be a shortage of the tests, i think that will happen at some point in september when did we decide on the n convalescent plasma. The minute it looks like the fda rushed this and before the election, it looks like hydroxychloroquine is that reasonable the way this was handled. Taking a look at the data. The standard for authorization under that emergency use would provide for the benefit of Public Health. There is enough evidence to tell that the plasma may provide evidence in this setting and recognizing the data set they could find a group of patients that could drive from that earlier you could produce the convalescent plasma the better you are creating a higher dose of those antibodies with those drugs. There was an fda report that the Trump Administration was looking to fast track the Astrazeneca University of oxford study. Would that even be possible . Im on the board of pfizer, as you know. Pfizer and moderna last week enrolled 25,000 new patients i think if the vaccines are very effective. 70 to 80 to reduce symptoms, it is possible you can get a read out in october from one of those. It is more likely youll not get a read out until november because the vaccines will probably be around 50 to 60 effective. You could get an early read out probably some point in november. It is possible youll have it available this year for select populations under an emergency use and the first availability of this vaccine will be under an eoa. It will be a highrisk group that will get it under an emergency use authorization. Thank you, dr. Gottlieb if it comes early, hopefully well be happy about it. We are making progress. Good. Thats what we want to hear. We all want progress we do. As quickly as humanly possible on the back end of this commercial break one automaker taking an usual step to help with the back b log. Check out shares of Urban Outfitters shattering expectations of the loss of 40 cents also beating salestore sales. That was due to the decline analysts had eecd. Xpte that stock up almost 17 back with more [mother giving birth] from the firstloving touch. Everything that touches your baby should be this comforting. Thats why pampers, the 1 pediatrician recommended brand, wraps your baby in breathable softness to help keep their skin dry healthy. So every touch is as comforting as the first. Pampers. The 1 pediatrician recommended brand. We know that traditions matter more if theyre celebrated with the ones you love. Thats why were proud to partner with the kentucky derby. 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. General motors is taking the unusual step to use paid volunteer salaried employees to fill positions of absent plant workers. The company has been struggling to fill orders grievances have been filed honda announced last month, it was using salaried positions to fill vacancies too half americans work fewer hours to avoid voluntary furloughs. Those furloughs are looming. Part of the Airline Relief package expires at the end of september. Looking for a catalyst American Airlines warning that it will layoff 19,000 workers in october if it doesnt get federal help those stocks have been whip sawed back and forth will be interesting to see whether washington steps up to the plate and how to infus capitol to those companies and whether well follow other models in terms of additional warrants and benefitting the taxpayer coming up, the s p 500 hits new highs and the dow looking to lose 58 at the overwhelm s p up by 3, nasdaq up by 48 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 welcome back to squawk box. The dow in the red this morning. Nasdaq looking to power higher largely by about three points higher this morning. The dow fell on tuesday they did not help to lift the markets. What they should look to share next analysts tripping over themselves with stocked like apple trait price target like tesla, what sort of market is this as they are playing catch up this is a market supported by strong technicals not only keeping rates low but adding money to the system. As they are pushed out over the risk marketplace a healthy amount of skepticism as well on the walls of worry these have now reached and breached an alltime high we are comfortably above the pressure now and that feels well. Could we get a period of con doll dags coming up we have virus trends and generally speaking we think any period of consolidation lends itself what is it that drives the market that tech sector tends to do well with the virus or is it that reopening on the reopening of the vaccine the low rates have made it clear where we have seen a slight tickup im wondering if there is any catalyst or market that is seen as causing this. Right one of the things we are looking at is the narrowing in the market that is a forward indicator of what is going to happen in the economy. We saw breath narrow from the 188 recession, most notably in 2008 one of those things now is really narrow breath in the market as they continue to bump liquidity into the system. That is going to provide some type of backstop where equities are trading. We are all looking forward to jerome powells, kansas fed virtual symposium. Delivering on thursday morning part of that inflation talking about targeting and letting the inflation run lotter and longer running in the market. Do you think this will be any sort of market catalyst . I think the market is starting to price in the new fed regime where they are hoping get back in to the over 2 target for an extended period of time as inflation creeps higher and important risk assets that are more dollar centric. We are starting to get the new regime being priced in it is partly the fed but also because the economy may be beginning to recover over the next 12 to 18 month period it is a combination of those two driving the marketfactors that weve just discussed there is really no valuation. The value of gold right now. We are living in time where Portfolio Managers and investors can favor growth stock and gold in their portfolios. Look, i dont think those things are exclusive well start to turn to 2021. Particularly after the election and well start to see where the growth is. Well see reversal and see names outside of tech and demonstrate Earnings Growth than some of our favorite tech names right now. When youlook at 2021, you see sector trading on 50 on the fiveyear average. You see 100 plus earnings and even offering a yield. Well start to see a rotation out of some of those more growthy names that perhaps cant support a superior multiple into 2021 because earnings on a relative basis just dont support it intellectually, it is easy to make that argument it is harder to make that move and rotation as tech continues to lead. I think the market sorry i think generally, it is important to keep that barbell if you think secular growth is here to stay as we get to the next 12 to 18 month oz, when you get the opportunities to continue to build the exposure including not only airlines and hotels think clean energy and housing which continues to do well think about areas that can do well in both environments including med tech and mobil payments there are areas that you can broaden into that are not just the value growth it is important to keep diversified as we develop into the next period. Thank you good to see you. Coming up, why nordstrom shares are plunging in early trading. Well hear from Kansas City Fed president for the latest out of the jackson hole imposymposium. It is going virtual this year. Might be like davos. A reminder, you can watch or listen to us live any time on the cnbc app, if you choose to do so. Well be right back. Showing the dow back on the market emerging and the s p looks to trade in new high ground from where it is indicated this morning shares of nordstrom have fallen Online Business suffered because of a shift in timing of the anniversary sale revenue below expectation kids merchandize, active wear and beauty were the strongest. Shares of Hp Enterprise up sharply better than expected issuing earnings and higher than analysts expected. The companys ceo on the street in the 9 00 hour in an interview you dont want to miss coming up, the fight over tiktok well talk to an executive over how the fight could impact this company has a huge, huge deal on the line to help artists. Well talk about that and so much more after the break. Announcer dont forget to subscribe to our podcast youll get interviews, content and behindthescenes content. Subscribe to squawk pod today. More and more sensitive, personal data. And it doesnt just drag hr down. It drags the entire business down with inefficiency, errors and waste. Its ridiculous. So ridiculous. With paycom, employees enter and manage their own data in a single, easy to use software. Visit paycom. Com, and schedule your demo today. [mother giving birth] from the firstloving touch. Everything that touches your baby should be this comforting. Thats why pampers, the 1 pediatrician recommended brand, wraps your baby in breathable softness to help keep their skin dry healthy. So every touch is as comfo