There. Big stocks in apple and tesla giving back gains. Ibm gained more than 3 yesterday. Also cocacola up more than 4 being looing at u. S. Equity few you are its. Something to Pay Attention to. Dow futures down around 40 points looking at first of september, and all of july and august with spectacular gains. Looking at the treasury yields looks like right now 0. 654 . Those movements with he saw yesterday were interesting in terms of the rotation. As a general matter, those had to pull back they will have to have these pull backs the fact that the market can do okay on a given day is a positive doesnt change the fact that weve traveled at a steep angel here there is a jumpiness a late summer week heavy volumes. You are seeing all sorts crop up there is a Different Energy to the market 20 what has passed in 2017, 2013 not sure the implications but there is Something Different it is 6 01 in the morning here yesterday was called a gama squeeze. We dont want to get too mechanical in the last couple of days, there has been huge options. Billions being bought in the biggest gains. What happened yesterday, is Market Players bought a huge amount of out of the money calls. That forces those to buy the equity that was on the options side to force huge amounts in the equities it is really an options trade that may have gone bad for huge Market Participants. I cant express how big the options has been the last couple of sessions. Really unprecedented, which also forced equities to move. Hey, brain i wouldnt call it a oneday event. It has been going on for a while. There has been speculation if you look at apple as a single stock, just absolutely massive, could be stant buying pressure in call options which does have that shortterm effect you do have this feedback loop that lasts until it doesnt. The implication is on the stat is call basis is that people are paying multiples for the upside. Something that is in the latter part of the rally or when things get heated brian, the traders you spoke with, did they say who is doing the buying is it the Retail Investor . No. This is big money, becky a product called delta one, kind of a new hedge fund basket product. These are huge buyers. We dont know. Theyve been willing to pay a lot of money toward the upside and protect the down side. If that goes up, you dont care it was some kind of optionsrelated squeeze, the portfolio went up. No, it doesnt matter. To mikes point. Im not saying this is an end of a rally. I would say there is a lot of weird mechanical stuff in the market if you look at it and go, huh, just watch this space. Stocks have been going up. The index has been going up, that is a little shift from the norm and creating the other need the symptom of the market as opposed to the cause of it if you look at go ahead, becky. I was going to say, 6 01. You dont want to get too technical. Here we are five minutes later ive ruined the show. Im sorry. No. I think it is really good to dig into these things but hard to follow it is important point to make because it is thetime of thing can you see that sets off a warning signal to those people watching for a long time if you have the fundamental investors who say ill sell to anybody who wants to buy that doesnt take the market higher certainly, a lot of thl option buying is the tech stock the days blend in. I think it was yesterday or tuesday where we see the nasdaq futures are up almost as much as a nominal basis. That is usual. Look at them now look at the nasdaq level open 120. That has been in big tech names. Apple, tech names, whatever. If this continues or has to be unwound now in certain ways. We could see monitor moves in tech look at dow futures. Nasdaq down 118. So much has been occurring in the same names, which are the clydesdales pulling the cart no doubt about it that nasdaq is super concentrated index right now certainly driven by the top handful. Lets get to what we are looking forward to the rest of the day on the squawk planner. We are counting down to the monthly jobs report. Today, we have weekly jobless claims estimates expect new clamz of 950,000. Todays number will not be comparable to last weeks 1 million claims because theyve adjusted how they see the data cnbc has confirmed reports that bill 5 0man has approached them with a blank check ipo. They prefer a traditional ipo. 5 0mans spak the largest Investment Vehicle he sent a letter saying he is Holding Discussions with a number of potential companies. I want to know who came up with the phrase spackman pretty good. I think it was making the rounds no doubt people seized on that quick. I appreciate that guys welcome to officially being squawkers. We managed to go 6 30 without getting into the first story i see the producers have moved things down. Well my time here is done thank you i appreciate it. Pros dont but i do. When we come back, two Retail Stocks getting a nice pop. Stocks to watch are next check out shares of tesla. That costock closes off after showing that the improved position still a longterm believer and the cut was forced by portfolio restrictions [ engines revving ] its amazing to see them in the wild like th shhh. For those who were born to ride, theres progressive. If i could, baby id how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with Xfinity Mobile. Shares of five below are rising the company declined to give a Current Quarter forecast due to the paean. It expects to deliver 110, to 120 Net New Stores in 2020 pvh shares on the rise reporting Second Quarter earnings of 13 Cents Per Share analysts wereexpecting a loss of 2. 43. Online sales through its own channels surged 87 . That stock up 2. 5 . We welcome the president of Manpower Group north america thank you for being with us today. Thanks for having me. I know a lot of people have been spent months reevaluating what they are doing for work and with their family. A lot of people think they are going to reassess their work lives going forward, right yes we tend to analyze the labor market in three vectors. First, what is happening real time forward looking and how are employers looking at rehiring. And finally, any longterm shifts with he see impacting the world of work. In terms of hiring, those have been in the past and the labor market is changed by the day we are seeing a twospeed recovery a kshaped recovery with a demand in some roles and decline of others. Software developers, app developers, it space, we are seeing increase in demand for jobs that move things. Logistics and warehouse workers. And people that have truly gotten us through this paerndndc in the health care sector. I was happy to see the stocks you highlighted. Clothing is seeing a decline a decline in maintenance and companies trying to decide what to do with their real estate and their hours. We have asked about 8,000 american employers, what are your hiring intention for the months ahead with he were pleased to see q 3 was marked improvement over q 2. Nowhere near how we entered the year in 2020 truly across sectors finally, in the long term, it is a dynamic situation, when you and i spoke, i shared that 30 of american employiers were saying it would take 12 months or longer. Only 30 would get back to prehiring levels over 60 are saying it would take a year or more to get back to prepandemic hiring. Dynamic labor forces what we are seeing today that doesnt sound great. Americans will be in for tougher times waiting for these jobs to come back. 91 said keeping their job is their top priority right now i think it is a bit of a roller coaster recovery. We took two steps forward and two steps back we heard as companies reopen you are correct. Their number one hope after coming outs of the crisis was to keep their job we asked them what concerned them most. Physical concerns, losing the flexibility they gained in this crisis more and more people want to work remote a couple of days a week or full time. Back to employees side. 30 said they intend to offer Remote Working or some Flexible Working and 10 of the american employers said they offer 110 option on Remote Working we are seeing separation on the work force and the work place on the employer and employee sign employees, i take it that is something they want well beyond with the pandemic concerns absolutely. It is simple they have a taste of what it is like to live one life. This blend between home and work they also told us they want to work their way i want to decide where the work place is it may be a coffee shop today or work place tomorrow. They wanted a chance to improve their skills the whole idea weve been talking about reskilling has come to a head with this kshaped recovery. They want the opportunity to learn wherever they are. Weve heard from employers that they are leaning in to rescaling. It is a new work place and work force and the employee is interested in balancing their life gen z is interested in coming back to the work place because it is where they make their friendships. Boomers and genxers, they are the ones that have kids at home. The idea that it is a workers market is crazy with 10 plus unemployment. What you found with different sectors like it workers, they are more concerned about keeping their jobs and working from where they want. It seems like a separation the haves and have notes a huge separation from those who have the skills and can work and call the shots and those that dont thank you for your time we look forward to talking to you again with the next survey coming up, is the sheriff coming for robinhood the sec opening a i probe on the platform and a big market day on the dow for the First Time Since february not looking that way today apple down 2 . We are back after this an army family who is always at the ready. So when they got a little surprise. Two . They didnt panic. They got a bigger car for their soontobebigger family. After shopping around for insurance, they called usaa who helped find the right coverage for them and even some muchneeded savings. That was the easy part. Usaa insurance is made the way liz and mike need it easy. Welcome back, everybody. Free Trading Platform robinhood is facing simple Fraud Investigation. They are looking to see if they initially failed to isclose th practice saying the practice wasnt disclose, which is legal accounted fosaying the int an advanced stage and could see a fine of 2 million if it agrees to settle well talk more about the probe in the 7 30 half hour with the sec chairman halrvey pitt. Walmart released the annual top rated by kids toy list featuring 36 toys selected and tested by kids for kids. This years list reflects a more interactive and energy burning educational toys amid the pandemic kids can test them out on the retailers wonder lab site. There you go coming up, well talk Market Strategy futures point to a lower open now. Later senator kevin cramer of north dakota will join us to talk the latest stimulus talks as we head to break, take 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. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Good morning u. S. Equity futures this hour. Modest declines in the nasdaq. A little deeper. Tesla and apple are down on the day in this hour reoccupied in the rally. Is the market concentrated or sustainable. Take a look at the chart that takes a look at a few different slices xlc, Communication Services dominated by faang and other media. Huge spreads there between them and this everything in the s p outside of tech struggling below its own highs that kind of peaked out in june. Thats been the story line you see industrials right there looking like a solid near up trend. Most things are going up glamorous stocks are going up faster the advantage has some what narrowed over the last through months of recovery whatever it might be that is the setup now. The question is can the overall market continue to restore the reliance offer things that have been reminiscent our next guest says we have not yet reached tech bubble value a ation in the market and the entire move from 99 was its earnings neela, good morning. Great to talk to you this morning. Great to be here. Compare and contrast what you are seeing in todays nasdaq and todays s p, which are dominated by the same completely indominatable companies. It is earnings. Earnings are a fundamental driver it is really about earnings. If you look at earnings per share contribution of the s p 500 and those very stocks you mentioned, Information Technology and consumer services, Communication Services, what youll see is that what they contribute is reflective in their contribution in terms of market cap that is for this year. You look b to next year, the expectation for earnings, you get a little weaker relationship but there is only a 3 gap between these companies are providing and their overall market cap you rewind to the dot com boom, the gap was 20 . There could be a little frothiness heading in to 2021, it is not nearly what it was during the over valuation in that era does it concern you or give you a little pause for the bullish markets is that it is not yet comparable to the craziest moment in our lifetimes in terms of public valuations. We can grant the fair distance of where things got back then or other things to site to say this is why the market may also remain well supported. History tells us what can happen, not what might happen. The orientation is very different. It didnt start in a cyclical way or with a slow down in manufacturing. It all started with a pandemic these Health Care Stocks are sectors that produce earnings in the Second Quarter because of the orientation and the stayathome economy we cant miss the amount of stimulus weve seen from the fed, the fed doubling down on that last week and today from the fiscal side i think of this as the rally with those first run the stocks rally and monetary stimulus for the ral yichlt we are waiting for the handoff. We are concerned the economy might be losing momentum and may not carry that baton that will be the continued rise in stocks. Given we are in sustain pence. That is now up more than 10 year to date dividends over 11 if you are an investor you could be in a good position or maybe just sitting tight first thing i would tell investors is not to flinch we are in vulnerable times now we are going to see if the economy can maintain on its own and sustain the recovery the headlines so far has been will stocks hit that new record high theyve done it and done it again. Well see if the market can broaden and sustain that rally in industrials and financials and cyclical stocks. And keeping expectations looking at the last three years, stocks have returned about 15 percent this year. We dont think that level will be contained stay involved dont get your expectation too high not a bad way to approach things thank you so much. When we come back, investors taking a gamble of Sports Betting with the biggest names up well talk the biggest names in the 2350e8d straight ahead take a look at s p and market gainers this morning you can watch or listen to us live any time on the cnbc app. Announcer todays big number, 3. 3 trillion. Thats how much the Congressional Budget Office projects the deficit to be in 2020 triple the short fall of last year expecting the governments debt to out pace the size of the economy this year. A level not reached since after world war ii welcome back if you are hoping for a follow through in the market, youll probably not get it. You look at the nasdaq we are seeing out sized move in technology you talked about the concentration of big named stocks and talking the Market Structure for more than a year also big news this morning and maybe more big news in the fight against the virus. Sanofi and glacxo could apply fr early approval by early next year also shares of novavax on the rise reporting a study that is a phase one trial. It is early but theyve found it is safe and elicits an immune response they released response early last week. Novavax up 4. 5 . A little good news there in the fight against covid. Well take any good news we can get. Shares of fulgent genetics rises after a partnership to provide covid tests to 16,000 students in hundreds of locations it will use the fda approved athome test will be used on site, not at home, which provides results up to 24 to 48 hours after it receives the sample they plan to test 10 to 20 of students and teachers once a month. Each test costs between 70 to 90. I have to say this raises more questions. Costing 70 to 90 when we know roche and others have these 5 tests. The idea of new york city paige 70 to 90 per test and do it over a period of time. I realize they want to get schools open immediately that is something that raises a lot of questions you see contracts being looked at for ventilators and other things we were looking for in a hurry in march and april i would love to have testing in schools. It would be great to be 15 minutes. If its going to be 48 hours, maybe it can be over a weekend unless and until we get vaccines to go around this, id be willing to pay for it but at 70 a pop is a heavy lift. It seems like a new york city story. Everything is more expensive and more difficult in that town. Yesterday, i interviewed a spokesperson for the teachers association. They need to get schools open. There will be huge consequences. Educational gaps kids that dont learn to read. Kids dropping out of high school early. It is not a zero sum game. We have to get the schools open. Anything they can do to test it so people can go to work i got a lot of notes yesterday i think 40 pirs of families hav