Sales and the stock is hitting new highs. And finally teslas tumble, why the street is mixed on what actually came out of the companys battery day event yesterday. J j, though, jim, going to be the lead and you just called it maybe the best company we have in this country. Yeah, look, i think that i like triple a balance sheet, i like a company that continues to make the numbers, i like a company that pays a good dividend, has the best pipeline, most robust pipeline in pharmaceuticals and i like a company thats not a hype company. The fact that they are ready to do their vaccine now, full disclosure i am attempting to get into the trial, i think its everybodys duty to get into the trial they are the only one emphasizing the atrisk people they want people who we view as people who we need to protect. I dont hear that from any of the other companies. I like the fact they are willing to give it to their whole employee base. This is the way i think it should be done and i know people are cynical about vaccines i think that if you want the world to go back to the way it was we need a successful vaccine and in the interim we need antibodies that make it so a therapeutic in the meantime, david, you know this, theres got to be a bridge from a successful one j j is not going to be rushed. J j is not going to be bamboozled into putting something out. I think, david, that these guys have the wherewithal to say no, but they also are just another company that we have to bridge to because a real vaccine needs to be out and about before we can declare it safe. Out and about meaning what, jim, im sorry were not in a hot spot in new york, okay lets say you are on a college campus, i would love everyone some of these College Campuses you go to the New York Times you see theres definite hot spots. Notre dame right now, they have a very good policy, but id like to go there, id like to go to any sports any Sports League where i think were all worried about, anybody who is playing football, david, and i think that thats who i want i want atrisk people to take t we are not really at risk as much because we just go we dont do anything. Were not in the subway. We are not trying to get to work no, but id like to be. I think we would all like to be in the city of new york and other major urban areas, wed all like to be back to real levels of activity so you want to get into as many hands as you possibly can as quickly as you can into we want to get out of groundhog day. What are you doing going to work. What ron rivera doing after work, going home. Sorkin doesnt even know what day. Hump day. I regard j j as one of the most foremost companies. It is a company that can stand up to anybody. J j has come a long way in so many ways, but there was a period of time when back in lets call it mid 2000s bill weldon era it was not going particularly well for j j. When you talk about it being a great company, it is without a doubt but also had one of the Largest Health care fraud settlements in u. S. History, sorry to bring it up, but i think sometimes it is they belong in jail but theyre fabulous there are different administrations. I happen to think that mr. Corbat culp is trying to solve the problem at ge, the previous problems were not his. I think that when we look at home depot duly noted. Dnd what mr. Corbat blake did and alex gore ski has moved on, they have moved away from that era but it was not a good one for j j. It was a failure. The ris per date of loss problems, the mesh problems were awful. Im not excusing them. Theyre not perfect by any means but i think that they have when ive dealt when you call them they will let you speak to the scientists and the scientists have a real bead on what needs to be done and ive spoken to the scientists, i found the scientists to be compelling in what they want to do, but more importantly they are not going to be pushed around the big problem in this country, carl, the big problem is we fear these companies are being pushed around i saw the cdc is erratic, i saw secretary czar quoting dr. Redfield i dont want any of these people to have anything to do with my health because i think that they all want to win the election sorry, doctors, but i think that youre captured. Your concerns, jim, are reflected in the pew research numbers which we got yesterday, the percentage of those polled who say they either probably or definitely would get a vaccine if it were available today has gone from 72 back in may to 51 now. Thats just an erosion of confidence in public health. Thats just terrible. We have to get everybody to take these. A vaccine only works if everybody takes the vaccine. Okay i mean, now, we have masks, the president hates have you ever seen him in a mask he was like twice in a mask. Secretary azar was asked pointblank would you have a mask mandate and he immediately starts talking about the areas that dont need a mask if you cant social distance you need a mask. He said wash hands, wear masks 200,000 people died because we are washing hands and wear masks. We need the vaccine. The 200,000 people, david, should we mention them of course. They died. Yes, they did. And what did they die from . Covid. And did it go away . No. And is it going to go away in the fall no. And are things better than ever no. Thank you. Next witness. Next witness will tell you that this ensemble trial is going to enroll 60,000 volunteers across three continents so its an enormous number i think jim shared it with us a couple days ago as well. They are going to be committed to transparency and sharing information related to the phase three study. They even include the study protocol in their press release which you can go to. We did speak, guys, or the squawk crew spoke to scott gottlieb, former head of the fda about concerns around this emergency usage and whether or not it would somehow be approved for emergency use prior to the election were taking a listen to dr. Gottlieb. I think the reality is theres not going to be an emergency use authorization before the election just if you look at the timing of when data could be available and the most optimistic scenario and then the fact that it would take the fda at least two to four weeks to turn around an eua an eua for this vaccine isnt going to look like an approval, its going to look like the continuation of the Clinical Trials where we make it available for a select group of patients and continue to collect data in a registry. You get it into the arms of people who need it, jim, the most early on. But, again, we come back to, what, mid 2021 for when we really can expect more broad inoculation. Well, you cant where are you going to get covid right now . Are you going to search for covid . We need to have people have regular lives, half the arms are the wrong thing anyway, right, in the placebo, dont be in a real hurry to get that but we dont know there are a lot of tests going on and thats good, but of all the things that ive heard, even more than j j, it was david ricks on mad money on monday that you can talking about the therapeutic that when there is an outbreak of covid at a nursing home, remember, 40 of the people who have died of the 200,000 are nursing homes. They bring the rv, they have been giving people medicine and it has seemingly stopped, quelled the outbreak carl, we have to understand that we need to quell the outbreak before we do the vaccine to quell the outbreak eli lilly routinely ignored by people and its a mistake but its more important than the vaccine because a good vaccine we wont know about until at least six months i like what lily is doing. Lily doesnt get lily is not a promoter, okay david ricks is not a promoter, but they did the best in migraine, have an unbelievable cancer and diabetes franchise. Because they are in indiana along with the cold no one is paying attention to them. I like the way youre framing it, jim, that there are stepping stones between now and the middle of next year when we might get broad authorization and distribution listen, mnuchin yesterday in the hearing talked about the abbott test, you are talking about antibodies, talking about therapies because its going to be a wait, its going to be a long wait, its going to feel like a long way anyway. Abbott i was hoping to have millions of their tests. The article today in the paper said that they are not ready yet. I have found that abbott is often misquoted so im going to get to the bottom of that. We have gary kelly on today and gary kelly is really at the front line he is the ceo of southwest air where is the problem in this country . People are afraid to travel, afraid to fly. I think gary kelly, i bet you he offers a novel method about how to be sure that if you three on southwest air you feel pretty good. Well, they need to. Because we know the struggles that the airlines are having, jim. They continue, of course, to also hope theyre going to get some form of new aid from the federal government which remains very much unclear. Right. As does even more so of course broader aid, so to speak, for Small Businesses and states and municipalities and we can go on and on. Look, they were doing continuing resolution yesterday. Yeah. Theyre not focused on what theyre focused op tiktok which means by fasterly if they get that, buy walmart. I think the idea of millions of people unemployed, put that on hold it does appear thats the case. Its on hold. Its not whatever. Carl, it doesnt seem likely at this point, i mean, easy to say, you never know, things can change quickly but it doesnt appear likely we will get anything out of congress before election. Certainly not i mean, it was encouraging, though, to get the house vote on the cr and that will go to the senate now it was interesting i thought, jim, that mnuchin did say the administration does support not just the repurposing of that ppp money but another stimulus payment. I mean, as much of a pipe dream or wind mill as that may seem right now. That has to be done look, it is not clear what it takes to get that done, but when it gets cold we are going to have the next group of people fall off the radar screen which are the 14 Million People and im talking about the family members included who are involved in the Restaurant Business not everybody can be obviously they are going to be ready to roll september 30th, david, we will go there or maybe take our wives, i dont know if thats efficient, but there are very few restaurants that have the means to be able to have whats so funny . We have darden report this week and darden can afford to not have people in their restaurant, chipotle can afford. The average Italian Restaurant in my neighborhood if they dont have people inside and its 20 degrees out theyre not going to sit outside in coats and wait for the veal parm. Theyre not and its a huge issue for the Small Businesses you can see it when you walk around some neighborhoods more than others, those dependent on tourists and or business business lunch, business dinners. Peeking of changes in behavior, carl, and direct to consumer we do have to get to nike because those numbers were so strong of course, we mentioned it at the top of the show. Market share gains across all geographies and they did really benefit as well from direct to consumer, carl, the numbers were nothing short of extraordinary as we see a stock thats going to be up 11. 5 . What a Conference Call. What a quarter yeah, jim, between that and j j its going to help the indices. I see even those who are doubting going in, i think Deutsche Bank is going today from 107 to 151, so were seeing a lot of people get religion on it today. Its funny, i dont think you could ever have predicted i would argue that they should have preannounced, frankly acceleration in digital 83 , acceleration in digital, thats extraordinary. North american they did 4. 2 billion, women gaining share, some of the stuff was not hyperbole. No one can match our pace, i like that one very much. It was a Tour De Force quarter one of the things i found about nike, it does not need a vaccine. David, there are companies that need a vaccine and the ones that dont need a vaccine they had 6 growth in china, do una couple percent in the United States, but they dont need a vaccine because they have direct to consumer and its really good macys picked up 4 million new customers because of the no vaccine. We will talk about that later. You need to find out what Companies Need a vaccine and what companies dont and thats going to be the divide thats the grand canyon, david. And it has been the divide in the market as well of course, we talk about it all the time and then we also talk about the greater divide which is sort of the real economy versus what we see reflected on our screens. The tesla economy. We will talk tesla in a bit. This was a fresh bearish pick that went positive this morning. I know. It doesnt matter 20 million batteries hes going to be able to do in 2030. Didnt work out so well, battery day. Back to niek dwree, everything seems tok working well for them. Direct to consumers so robust and the fact that people are staying home and not putting on suits anymore and are wearing casual wear thats also helpful that trend. I thought that hurt stitch fix frankly but we can argue that back and forth. I always like arguing back and forth. Were going to get to nike among the upgrades today in addition to twitter and csx. In addition to what tesla said last night and how the street is split on that this morning futures look good after that bounce on tuesday. Back in a moment thats what my dad does. Good job, michael ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our financial futures. Tesla is down in the premarket after its much anticipated battery day. At that event elon musk said his big goal was to drive down battery costs but he adds that technology to make that happen will take some time. To be clear, it will take us probably a year to 18 months to start realizing these advantages and probably to fully realize the advantages probably its about three years, thereabouts all right so, jim, street is a bit split today on regardless of how much time it takes, the fact that it would happen at all could improve volume in margins, others are saying even though thats a longterm story near term theres not many catalyst toss drive the stock. Look, i think that youve got this process by which the stock is up really big ahead of battery day and then he delivers, what, i mean, phil lebeau sent me terrific stuff, 56 drop in the cost of battery sales, that matters tremendously, but we were talking about the million mile battery. What a setup that almost nobody could possibly deliver the 20 million vehicles, a lot of people have been talking about the idea that one day he could do 20 million so, therefore, thats more than toyota, therefore, you could justify the valuation. We have analysts, people said its finally come down you want to be in it. If you liked tesla before, you like tesla after, if you didnt like them before you dont like it after because its elon musk and youre betting on musk i wish there were more to it david, musk per share, its musk per share. Yeah, but its funny to listen to him sort of underpromising in a way. Wasnt that interesting yeah, lack of hyperbole. The 20 million cars one of his more interesting things, jim, was his saying that hes confident they can make a compelling 25,000 electric vehicle that is also fully autonomous i mean, that could be a game changer. 25 grand for a fully ev Autonomous Vehicle in three years. Phil is talking about how low they can really lower the price of this, but, yes, that would be a real game changer. Of course, would also make the skies cleaner, it could do a lot. Carl, i think that there is a lot of people still excited that hes a bit like henry ford, okay, he gets the costs down, pays the workers okay and everybody does better. I dont know, i still im a believer in the guy. This is not nikola, this is not rikola, this is tesla. Its not a truck going down a hill. Were talking supply again no, but, again, were talking about supply and you keep referencing the baird bearish pick and they are worried about the consumer in a recessionary environment. How does that play in . I think its a good piece, i think tesla is somewhat recession proof, companies are either recession resistant or recession proof. I like the baird piece because it does represent the negatives and positives. Its a price target boost by the way and i always find, david, when they boost the price target you have to be more positive than negative. David, im over here, hi. Not the only one, jim, goldman 295 to 400. Yeah. Deutsch 400 to 500. There is a few that are definitely going up. When we come back southwest gary kelly among the airline ceos who urged congress to provide more covid relief to his industry we will talk to him in a few minutes. Dont go anywhere. We have a long way to go to recover, the first c. A. R. E. S. Act kept this country out of a depression and i think the only mistake that was made is it just oudnt go far enough and long engh so were obviously here supporting the airlines and our people 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. Theres a lot jammed into this wednesdays session we have some faangs red but overall the dow will benefit from nike and Johnson Johnson. Powell in front of a select house subcommittee on covid reon a sspsendome pmis in 30 minutes. Back in a moment well start trading four minutes from now on what jim and i like to call hump day. A little General Mills for you today on the mad dash . I like the quarter. There are some people who jumped at it initially, took it north of 60. It was a very good quarter two things i really liked is they reduced the debt leverage and then, david, this has always been a company that grows earnings slowly and grows dividends slowly but the dividend grows and there they are, they raised their dividend, they are at 51 cents, 3. 5 yield. I want you to think about General Mills versus a bond, okay this is a bond with growth, theyre back this their old ways of doing things. You can say, wait a second, its all stay at home no, they