Transcripts For CNBC Closing Bell 20240712

1. 8 trillion. And jobless claims disappointed the street coming in at 898,000. It was the highest rating since mid august. Rising coronavirus cases in europe and the u. S. Affecting sentiment. 59 minutes left of trade down only 23 on the dow. The european measures definitely weighed on european markets. We have improved since the european close coming up, we will speak with gregg lemkau about how the pandemic changed the m a landscape. Plus the ceo of zoom will talk about the companys efforts to branch out beyond video meetings and the stocks run thissier. Fir mike, lets start with you the Broader Markets well off the session lows. A resilient showing throughout the last few years. You mentioned the market lows in the u. S. Were just before the european close perhaps that was one of the bigger pressure points, the overseas action. Where it has taken us though is really hasnt disturbed much of the trend. This is this area. Last week we broke above this range we have been in for a while. We have been talking about that as an analogy of what we went through in june and july, even when we get out of it we chopped around sideways for a little while. Thats an optimistic interpretation of it is a contained pullback so far. Look at the nasdaq 100 etf, this is an index and an etf that people are pointing out just about matched its alltime high. Thats a bullish thing but also leaves it vulnerable to a newpry retrenchment still in the uptrend from september but the hottest part of the market cooling off the most big cap tech and nasdaq 100 in general. U. S. Versus the rest of the world. This is over the last six months matched up pretty well except in august when the u. S. Market because of the nasdaq stocks kind of overshot the global trend to the upsaid. Pulled back, right back into parity here we go, overshot again from late september into the recent thai highs now maybe pulling back we will see if it becomes a parity thing the dollar rallying in recent weeks as well, contributing to this. The european close behind us helped sentiment here . It seems as if it did also the market did localize the damage in terms of again the overbought technology areas. You are again seeing a little bit more of a bid in some of the value and laggard areas like energy and banks so it did seem as if perhaps once we got clear of the overseas action that the market was kind of dealing with its own issues although, you know, the lows for today were basically where you would have wanted if you were a bull the market to stop going down and sort of preserve this sense that we are in a higher range at the moment. We are trading right now in line with where we closed on friday for broader context. Continuing to recover dow almost flat. S p alsoclimbing off the lows, down only a quarter of 1 . Mike, see you in just a bit. Investors are still looking for any clues on the size, scope, and timing of a new stimulus deal. Eamon jabbers has a look at what we may see this hour. Reporter what we know at this hour is we have a tang lumbar steering wheel. It is making it very difficult to drive this car. We have three different players with three entirely different positions between nancy pelosi, President Trump, and Mitch Mcconnell up in the senate expressing his reservations about what the president is trying to do all of that making it complicated in terms of getting a deal done. We saw the treasury secretary mnuchin on cnbc earlier today saying the administration is working with republicans up on capitol hill to try to come up with some kind of agreement. Heres what he said. We are also speaking to Kevin Mccarthy and Mitch Mcconnell on a regular base mark and i had a twohour Conference Call with the Senate Republicans over the weekend i think there are there are certain areas where there is complete agreement on the senate side i think you know what we call the targeted bill had overwhelming support that is the priority of the senate but we saw Mitch Mcconnell, the Senate Leader on the republican side coming out today pouring cold water on the negotiations between mnuchin and pelosi heres what he said. There were discussions going on between the secretary of the treasury and the speaker about a higher amount. Thats not what i am going to put on the floor so mcconnell saying he is simply not going to put a higher amount on the senate floor that means no matter what mnuchin and pelosi agree to it cant get past Mitch Mcconnell and therefore cant get to President Trumps desk for a signature. You have got all of these bottlenecks in this negotiation, neither side wanting to give in. There is pride here, there is politics and basic zplars cents. Mitch mcconnell saying his top number is around half a trillion dollars. Thats nowhere close to where nancy pelosi is and nowhere close to where the president is, what is now saying go big or go home he doesnt seem to be persuading his fellow republicans that jobless claims are disappointing in the past week the number of americans whoified for new Unemployment Benefits jumping to 898,000, the highest level since back in august it corresponds with layoffs that have been announced we have been reporting them from Big Companies like disney, at t, and others it could be distorted economists say by administrative issues linked to states processing those filings. California for instance has paused its claims reporting recent recently to work through some of the bag log issues it is the most pop laws state and contributes 20 to 30 of the total number the totals could be off. Continuing claims are worth watching they came out today. They indicate total Americans Still receiving benefits they continue to decline good news. 10 million from 11. 2 million the prior week it shows employers are bringing back workers there is progress on that front. But for the level, they are historically high, painfully high even with quirks like the california issues. Just to bring it back to the stimulus conferring, we know that extra unemployment benefit bonus lasts. That ended americans dont get that at the end of the year a lot of these programs also end if they cant figure out a way to pass stimulus, including the extension of 13 weeks for state Unemployment Benefits. The key point, if we bring up the first chart again, yes it increased and the numbers are historic and depressing but it is not enough of a decrease to probably change the political dynamic in the shortterm, and also having heard from eamon some of the republican lawmakers views whether or not stimulus is needed in the shortterm it is a tick up but it is not like the bars back in august or before. No, we are not in the 5 to 6 million range. But that is up for debate. Im not sure a lot of folks would agree, with you know, 10 million americans little living off of the unemployment claims, that topping them off wouldnt be a brirt before we get through the pandemic and develop a vaccine. I think everyone agrees it is of utmost importance but not weighing on the lawmakers minds. The seven day average of coronavirus cases is moving higher in the u. S. And several European Countries are dealing with outbreaks of their own. Megger theel has the latest for us. Reporter we are seeing cases spike across the number of European Countries check out these curves you can see the spikes really happening predominantly in places like france, the uk, spain, netherlands and germany to a lesser extent it is leading the countries to implement new restrictions to try to tamp it down before we get further into the cold months n. France you are seeing a curfew put in place in paris and other major cities london easing restrictions in terms of indoor gettogethers. Trying to discourage people from taking Public Transportation you are also seeing in the netherlands a partial lockdown germany bans on gatherings and mask wearing in northern ireland, closing restauran schools for two weeks and restaurants for four weeks with the colder months, they are seeing a window of opportunity here to try to tamp this down. Stocks closed down 2. 5 and we have a weak yuri and british pound in response to the new coronavirus cases and lockdown measures. After the break, m a activity surged in q 3 can that pace continue into year en we will ask a representative from Goldman Sachs for his take next you are watching closing bell on cnbc. Its a thirteenhour flight, thats not a weekend trip. Fifteen minutes until we board. Oh yeah, we gotta take off. You downloaded the Td Ameritrade mobile app so you can quickly check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. Keeping your oysters growing while keeping your business growing has you swamped. you need to hire i need indeed indeed you do. The moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base so you can start hiring right away. Claim your seventyfivedollar credit when you post your first job at indeed. Com promo welcome back global m and m rebounding sharply in the Third Quarter mega deals having the busiest summer on record with 36 total deals valued at 456 billion lets talk more about the m a landscape with a representative from Goldman Sachs lets start with data on the m a. Listened to the call yesterday how busy are you expecting it to maintain how long can it last what key factors does it rest on the markets have been incredibly busy as you saw yesterday in the results from us and across the industry. Strong underwriting in equities and debt light m a revenues because there is a lag effect of when deals happen and when they close what is amazing about the m a market in march, april may there was no activity. It was down 85 , completely dead we saw activity picked up in the Third Quarter and meaningfully in September September was our record september ever with 473 billion of mark and a announced in september. Thats continuing in october i think where you heard stevens bullishness in the transactions we have seen and whats this the pipeline after taking a pause in strategic activity, it has picked up stig cannily in the past few months. What about ipos is that looking as positive as well it has been incredibly hot. Amazing to see how quickly things changed if we looked back toll march, i dont think people expected ipos for two years. Now we are going to see a record of ipos of all time in 2020. It has been a mix of growth companies, Companies Like unity and snowflake, and a significant pickup in spaks. Those two combined have driven a massive resurgence in the ipo market as investors look for a growth environment. It seems disconnected from the real economy the ipo boom, the spak boom, the m a boom explain. What is that signaling that investors ahave confidence . Is it preelection rush why is it happening . Thats good question. I would say there has been Massive Central Bank stimulus that happened the markets. One of the stories of this pandemic has been the resilience of the Capital Markets n. That period of march, april, may, the amount of capital that was raised by the most Distressed Companies was staggering boeing raised 20 million. Airlines raising money Online Travel companies, restaurant companies, cruise ships. The markets were resilient in raising capital to help sustain the Business Models of companies that were challenged that put a lot of confidence in the equity markets as the equity markets rallied the ipo market opened back up. As investors are seeking growth they have chased after ipo and the option shawl of being invested in spaks. The big surprise i would say has been the resilience of strategic markets. Corporations i am not sure they have stability underneath them and the uncertainty of march, april, may, june has gone away to a degree and they can look at the five year outlook and figure out what they want to do strategically. When we talk about ipos and spaks and the road shows that lead up to them. I guess at the start of the year or as lockdown began one of the questions wasnt whether the market environment was right but whether you could introduce investors to oettlely new companies they didnt know without road shows but i guess that problem has been overcome as well . I would say we have turned everything on its head kind of to everyones surprise a lot of conventional wisdom has been challenged. Things that we did because we always did things that way have certainly changed. You know, weve done i guess 89 ipos since march then 125 follow ons and converts, all virtual road trips. No inperson investor meetings in any of those. The days of flying the Management Team from boston to baltimore to kansas city to minneapolis may be behind us forever. We have seen the same thing on the m a side the potential buyers traipsing through headquarters which has confidentiality risks and scheduling refuses you are able to record a questionandanswer by zoom and things get done faster and have more confidentiality i think a lot of the practice was changed by necessity and i think it is changed for the better Going Forward. What about spaks in particular, gregg . I cant figure out whether these Blank Check Companies that everyone and their mother is starting is the future or a sign of a speculative bubble. Dont encourage my mom. I think she will be calling about a spak any minute. It is amazing to see what happened i would say a lot of people are skeptical. Go back two years ago i was skeptical. The spak model has really evolved to become a credible way to take a Company Public spak two years ago it was the path of last resort. You couldnt sell your company you backed into a spak the structure of the old spaks was you raised 500 million in the spak, did you a 500 million deal 20 of that value leaked right away to the sponsor of that spang. It was punitive to the seller. The way the structure evolved is that promote or the carry for the sponsor of the spak has been earned out over time that 20 is broken down into pieces and only earned as the spak of the stock goes up. Like a private equity carry. And the spaks are 2 2. 5 billion so interestingly, the spak alternative is a credible alternative. I think what is giving people anxiety is the mad rush we have seen 138 spaks to date raising 58 billion. I think we are hitting to point of be po indigestion where investors are saying pause, take a break, let me tie guest what i have and then lets have a new wave of spaks coming to the market. The diverse Board Initiative which david announced a year or so ago, how has it gone down has it led to you losing any deals . It sounds like with the numbers you are talking about you have plenty of deals. Have you lost any deals because of that . Not so much i have been encouraged by the receptivity to it. He announced we are not going to take a Company Public without at least one diverse board member we have taken 52 Companies Public and a lot of companies have come to us saying help us do this we dont know what companies havent come to us because they dont agree with the policy. But most of the companies we worked with have been excited about it and used it as a force and function to drive diversity on their boards which we fundamentally believes drives better outcomes. The one thing i am surprised at is that none of our competitors followed suit. I would have thought they would follow in behind us. I am happy to be a pioneer and leader in diversity but i think it is better for the world iffin everyone else did the same thing. Gregg, you mentioned when you announced it that next year, starting 2021 you would require two either women or diverse Board Members. Is that on track to happen can you do that . We started the policy july 1st. I think we are likely to roll out the two policy july 1st of 2021 we have built a massive base of diverse Board Members to help our clients. We are working with them to be able the populate those boards i am confident we can do it. When we announced, it doesnt sound that heroic. But for a lot of companies it is hard when you go to two, it becomes even more difficult. It shouldnt be. We want to help your clients achieve it and populate their boards with highly qualified diverse Board Members. Interesting that nobody else followed suit. Gregg we will leave it there after the break, cracking down on ppe fraud. Dow component 3m is taking big steps to prevent price gouging and counterfeiting of its n 95 masks. We will tell you how bad this problem is next. Before we talk about taxsmart investing, whats new . Audreys expecting. Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. Drifting toward session highs here dow almost positive on the session. S p down a little more than. 1 . Dow component 3m is making an evident to crack down on price goumging and counterfeiting of those n 95 masks seema mody has the story. Reporter 3m filed 20 lawsuits some resulting in criminal charges so far, 3. 5 million counterfeit respirators have been seized with the help of law enforcement, 1200 rates raids, including this in peru, and another in vietnam piles of boxes full of counterfeit n 95s. 3m says without the proper filtration, lives are at risk. They are not made with highly engineered materials that are designed to filter out the particles as claimed they do not have the fit, the performance. And frankly, they are dangerous. Reporter special agent at Homeland Security telling us that fraud is not limited to masks. Its gowns and other protective gear sara and wilf. Clearly it is a problem, seema. It also highlights the fact that these n 95s are not available for consumers. I am not even sure if they are widely available are they widely available to Health Care Workers . As we enter the second wave is there still a production problem getting the n 95 masks we need. 3m have been working around the clock to increase production before the pandemic they were demand has outstripped supply. Part of the reason is there are Health Care Facilities requesting 40 times the amount they were requesting the same time last year the demand really is unpress dentaled. Thanks. Still ahead, zoom has had an incredible run this year as Video Conferencing has become fundamental to the way we communicate. Coming up we will speak with zooms cfo about their efforts to branch out beyond it is core product. As we look at the yields the tenyear a little abov above. 71 well be right back here on closing bell. Before we talk about taxsmart investing, whats new . Audreys expecting. Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. Hmms and ahhs heard incall. Back in time for a cnbc news update with sue herera hi, sue. Hello, whistle, hello everybody. Heres what is happening at this hour Vice President ial candidate Kamala Harris has tested negative for covid19 after being on a flight with two people who have been infected. Harris has suspended all inperson events until monday. In Washington State a nursing home resident who got covid19 in march contracted the disease again nearly five months later. He is the third person confirmed in the u. S. To get the disease twice. And one of about 20 worldwide. And today is global handle washing day. The cdc has some encouraging news more than 80 of adults are washing their hands after coming into contact with high touch public surfaces. And something for the taylor swift fans out there the guitar she played at the Country Music awards is up on sale its part of a christies auction raising money for covid19 response. The gibson Acoustic Guitar is expected to sell for as much as 40,000. It all goes to charity sar a i will send it back to you. We are swifties, dont think i will be paying for that. I say we, me and wilfred thank you sioux. Just over 30 minutes to go before the close we have come off the lows. At one point the dow was down 332 points we have just gone positive on the session. S p 500 looks to be flat it positive for the week heading into a friday. Nasdaq done a third of one . Real estate, energy and financials are leading the markets today. A hodgepodge there the russel 2000 up 1 . The countdown to election is on. Less than three week to go up next, why you may be waiting until after the election to make a move in the market. A programming note, the cnbc sa summit on october 20th will bring together the countrys top Advisory Firms to explore the state of the market. Guest speaks cnbc is offering continuing Education Credits at this event. Lrnt cnbc events. Com fa summit toea more and register for the summit closing bell well be right back dow is firmly positive [squeaky shopping cart] [sniffing] is the salmon wildcaught . She only eats wild caught. [cash register beeps] uh, i need a price check on honey. Dont get mad. Get e trade and get more than just trading. Investing. Banking. Guidance. And sweetie can coloryou just be. Gentle with the pens. Okey. Okey. I know. Gentle. Gentle new projects means new project managers. You need to hire. I need indeed. Indeed you do. The moment you sponsor a job on indeed you get a short list of quality candidates from our resume database so you can start hiring right away. Claim your seventy five dollar credit, when you post your first job at indeed. Com home. We are less than three weeks out from election day. Vice President Biden continues out outpace President Trump in the National Polls according to the latest poll biden came in at 53 of registered voters compared to trump at 42 the 11 point lead is a drop from the pef poll which showed by within a 14point lead over the president. For more on what it could mean for the markets, lets bring in jeff from black rock good to be here you point out that markets have a lousy track record of predicting the outcome and potentially the Market Reaction for the outcome. What does that mean as far as what investors should be doing right now . Well, its just an admission that you know we have been through a number of different elections where you know both the election outcome prediction was difficult. Then even if you had the prediction, you know, predicting the markets reaction to that was very difficult you know, we do a lot, like everyone else does, in terms of Scenario Analysis of Election Outcomes but we have to be a little bit hum basketball our predictions and our accuracy, both for the election outcome and for the markets. So it raises the question about whether or not the right Investment Strategy is making significant moves in your portfolio ahead of those Election Outcomes given the uncertainty and the low likelihood we are going to predict exactly what it is going to be as opposed to going about the Election Strategy a little bit differently which is having some strategies for how you are going to react after you see the impact and there you have some more longer tail events, and perhaps a bit higher return on investment insight to those kinds of strategies by being prepared to react rather than trying to predict the outcome ahead of time. So how do you strategize leif for the bond market . Are you expecting to see a big move either way . Isnt the bond market really anchored by the fed, not so much by fiscal policies at the moment you know, its a really good point. Going back to 2016s election outcome there was a very large move in the bond market. But that was a very large surprise and so what will really move the bond market are going to be those surprises. Right now what people are positions for and there is a lot of concern about is contactually what you just talked about, is significant change in fiscal policy that might arise from a significant change in fiscal policy makers. Thats really talking about the change not only in the presidency, but also in the senate but you raise a billion important point, that there are potentially limits here to the amount that the bond market can move given the feds desire to provide accommodation and element any kind of Financial Condition tightening from such a big Interest Rate move like we saw in 2016. That said, jeff, listening to all the banks earnings calls this week it doesnt sound like they are expecting the long end of the curve to get any lower than it is do you think that thats fair, the long end of the curve will probably rise over the next couple of years . Well, i think the next couple of years is a very dependent outlook with regards to the development of growth and inflation. Certainly, coming off of the covid crisis and the shock Interest Rates are at very low levels, and the long term Interest Rates are at very low levels i think under the optimistic scenarios that we are going to recover, see growth recovery and potentially see some recovery if not in actual inflation then at least in Inflation Expectations perhaps pricing in some benefit into the feds Movement Towards inflection targeting brings you to some modestly higher Interest Rates. But we are not talking about significantly higher Interest Rates absent a significant breakout in growth or Inflation Expectations. Finally jeff, overall on the stimulus as we watch the on againoff again negotiations during the market is too excited about the prospect of a stimulus where it could come before the election it could come after the election what if biden wins and the senate stays republicans then what happens to stimulus . Well, i mean right now we are talking about stimulus before the election maybe that comes about, you know i think the issue on stimulus and stimulus hopes is that with rising polling showing an increased odds of not only a biden win, but a democratic sweep, you know, not only a potential for a democratic wave but a significant increase in the senate, you know, thats raising odds in the market for significant policy stimulus. Certainly, if you dont get that, there could be some disappointments around that how much fiscal policy stimulus do we get versus how much is it offset in terms of expectations by other policy initiatives . The net is really the impact in terms of growth and Inflation Expectations i think when we look at this, the market does have an issue with sequencing, that we can focus on the immediate policy change markets are focused on fiscal policy, but you have lots of other policy initiatives whether those policies are progrowth and proinflation or antigrowth and antiinflation really remains to be seen in terms of the path that policy evolves in post this election outcome. Very hard to see how thats going to play out right now. Jeff, does the performance differential between european and u. S. Equities make sense to you so far year to date . Well, it is a very different topic and it is a very different situation. You know, certainly a lot of that has to do you know, theres a macro story and there is a micro story the macro story in terms of differenttial covid performance. The micro story with the dominance of tech in u. S. Equities in terms of their european counterparts when you look at that differential it is not talking about differences in economies it is talking about the differences in the underlying structures of those indices. And the tech focused issue around policy and policy changes are another big area of unsrnt when we talk about that uncertainty when we talk about the policy path that may evolve post this election. Jeff rosenberg, great to see you as always. Up next, a Morgan Stanley posted an earnings back. And addressing a rghou quarter those stories and more when we take you inside the market zone next vo im a verizon engineer and today, were turning on 5g across the country. With the coverage of 5g nationwide. And, in more and more cities, the unprecedented performance of ultra wideband. The fastest 5g in the world. It will change your phone and how businesses do everything. Im proud, because we didnt build it the easy way, we built it right. This is the 5g americas been waiting for. Only from verizon. But we are hoping things will pick up by q3. Yeah. Uh. Boss doug . Sorry about that. Umm. What. Its. Um. Boss you alright . [sigh] [ding] never settle with power e trade. It has powerful, easytouse tools to help you find opportunities, 24 7 support when you need answers plus some of the lowest options and futures Contract Prices around. Dont get mad. Get e trade and start trading today. 14 minutes left in the trading day. We are now in the closing bell market zone. Commercialfree coverage of all the action going into the close. Nbcs market comment iter mike santoli is here. And today we have got stephanie link here as well on the phone we will kick it off with the Broader Market stocks gaining steam here into the close. The nasdaq is the notable underperformer today lower for the fourth day in a row. Mike, we have had a nice little, i dont know, comeback in the markets from late morning. You have the market trying to deal with these rising case numbers in europe and in the u. S. At the same time the stimulus negotiations which are not dead. What stands out about the Leadership Today everything but tech is doing fine is basically the short version of it. I think what the market has been contending with the last three days is not so much there is big Surprising New negative news but a little bit that the market dot ahead of itself in the very shortterm you could see that on monday how stretched things were, like semiconductors and they said we need a shakeout, market flattened out this is what we are doing. It is not new suppress points in terms of the Capital Markets having problems. Yes, there is no doubt about it there is reason for caution when it comes to the implications of the surge in case counts, people hunkering down for the fall and the winter but the market is not going to rush to a place of panicking about that there is a clot of competence, it is not going to lead to true new restrictions and we are within the window when clearly medical progress is going to bail us out. Here in the u. S. Do you think stimulus continues to outweigh any short or long term pressures the virus might bring. Well, yeah. It is a tremendous amount of liquidity in the system. We are going to get more on the fiscal side. It is a matter of timing you cant have 11 Million People unemployed without hemming then. Industries really struggling at the same time you had good news with regards to the philly fed and the empire fed, sort of buffers the disappointing jobless claims but the net of it we are going to get more fiscal, and liquidity is the name of the game at this point i think also on the election front i read today wilf that 47 of the people that they polled that they believe we will not have an answer on who wins the election for at least a week or maybe even more. People are already believing that this is it is different this time. And this is going to be a little crazy. So the volatility is probably going to be here for a bit of time thats typical of september, october . Do you think investors already priced that in and expect that or if that plays out will we see a pullback it is more than i had expected, to be honest with you. I think it is starting to get priced in. I think people are starting to talk about it and read about it and that sort of thing yeah, i think it is already starting to get priced in. Morgan stanley rounding out this weeks banks earnings reporting a beat on the top and bot toon some lines. Trading strength, fixed income trading seeing the highest revenue in a decade. They reclaimed the number one spot in equity trading it was well across the board Asset Management doing well as well not as big as goldmans beat in Asset Management nonetheless, highlighting the balance across the business mix they have now. Two other points i would add mike, one is we didnt know if this quarter would play out as investment banks the place to be versus commercial banks. But it surely has. Morgan stanley versus wells fargo has a 15 differential and the thing i took out of this week was that they want to get back to doing buybacks as soon as it is allowed. There is a potential pent up energy for that. Morgan stanley at exactly one times book value clearly would be advantageous for them to be able to get back and do it the market related financials clearly have an advantage. The 52 week high list is black rock and t. Roe price. Asset managers i think that makes sense how the market is interpreting these things yields lifted a little bit today and took some of the pressure off the whole group. Lets hit shares of fastly. They are under pressure big time down 27 after the company cut its revenue outlook for the Third Quarter because of a reduction in business from its largest customer, which is Tiktok Stephanie we have been glued to this one partly because of its tremendous run up. So the fall put that in perspective. It has already surged 100 this year put that in perspective. Cramer said a lot of that was what he called the novice traders around this name. This stock trades at 20 times 2021 ebd sales an enormous valuation. Tiktok is 13 of their total wretches and they overall have a very high concentration in their Customer Base. Whats the path for revenue given the creationcentration, r whats the market kbangs implication and what is truly the growth of this company how can we model it in i dont think it is down nearly enough i think it could be under pressure for a bit of time it is hard to justify this valuation. I understand the end market and the total Addressable Market and that sort of thing but the concentration level is bothersome thats the thing that worries me. Mike, is it impressive that this hasnt dragged down any of the other massive year to date performers even those many of them havent had the warnings of the same ilk yeah, the Energy Behind those emerging growth story lines in the cloud, it is not going to go away on a one off. I did think this morning you were going to have a broader rethink of those stocks. Now you see the cloud etf is actually up on the day the clou docky sign. To your point, it is basically isolating this one instance. It was overdone, obviously specific fundamental issues. At some point down the road you could get a bigger rinse in this group. It is not happening today. United airlines, having a rough day following yesterdays earnings phil lebeau has headlines details on that for us we talked with the ceo, scott kirby this morning when you lock at the Airline Stocks and united over the last day and a half, down today more than 3 . Almost 4 for the day, the cash burn gid for the Fourth Quarter remember, their cash burn was 25 million a day in the Third Quarter. The guidance was between 25 and 30 million a day in the Fourth Quarter. That may not look like progress but when we talked with the ceo, he says, look, they are making progress when it comes to cutting losses we are going to be the First Airline of the Major Network carriers to return to cash flow positive i am not sure when that will happen we have tended to be a little more conservative, perhaps, but it has turned out to be more realistic on the forecasted demands. My guess is our real forecast would be a little bit to the right of where some others are what i am confident about is on an apples to apples basis we will be the first. A little to the right you heard him mention that thats because delta said sometime in the spring they expect to be at a break even it might be further out according to scott kirby regardless all of the Airlines Stocks under pressure. Next we hear from american and southwest. Those are the big earnings reports next week as we continue the look at what the airlines are looking at in the Third Quarter and into the Fourth Quarter. Steph, i know you like the barbell approach does this make it into one end of hat no, these are trading vehicles, these stocks the Balance Sheets, the debt levels are too high. There are so many cyclecals out there that have better Balance Sheets where they are covering the dividends, buying back stock, increasing the dividends. The only aerostock i have is boeing i think they are going to get the 737 max up in the next couple of months i think that will be sort of a game changer for them in terms of the Free Cash Flow story in the next couple of years but i am not really touching the airlines it is too difficult. Mike, is there anything the airlines can tell us on these earnings, on these calls are they just trading more broadly on virus developments, which are not going in the right direction in the u. S. And in europe. Really all they can tell us i think is how much they are burning daily and whats in their plan in terms of cash burn down the road because that is to some degree within their control. In other words, they are trading stocks not investment stocks, thats the old adage they became invest stocks for a few years. Now they are trading stocks, on the pace of Business Travel coming back, back to normal. They dont pass muster along a traditional value line they dont have earnings they are losing a lot of money you cant go on those metrics. But what you can do is say they are down 60 from their highs and right now it imbeds some expectation when we get back to normal if you think it is going to be sooner than that, if you get a vaccine in three months they are going up no matter what the losses are at the moment thats the game. It is not like slowly build a position because over the long term they are going to get back to fair value very soon. Steph i want to pivot back to the banks. I picked the wells fargo Morgan Stanley different shall on purpose because we have got you with us today. What do you make of that differential this week. First i didnt think wells fargo was as bad as the stock price reacted. I think the expense line was disappointing. Surely the stock should have been down but not as much as it was. I think it is going to take a long, long time to see a turnaround at wells, a long, long time. I have right sized the position. I think it will work in the long term i think in the last couple of quarters they have been and expectations are getting really really low n. Morgan stanleys case, i think what is more important wilf, and i am pretty sure you would agree, what is Going Forward . What is this Company Going to look like Going Forward . With e trade and Eaton Vance Eaton Vance i think is a home run. They are trying to figure out how to get away from traditional banking and find growth and find a better multiple as a result. Gorman has been talking about not being able to to buybacks. This is a good story and he is transitioning them for the future. Morgan stanley having a good session. Banks improved a lot today with rates rising two minutes left, mike, whats standing out to you. Internally, the market looks pretty firm, certainly relative to the indexes we opened up the day, the volume split was 80, 90 to the downside that is totally turned arent, almost not quite two to one to the positive side. It is reflected in the call smap indexes. The equal weighted s p as well the dollar index on a year to date basis it is up another half a percent today. The low on that chart as august 31st that was basicallythe high in stocks the high after that point was september 25th this was the low in stocks you see this inverse toggle with equities and the dollar. It wont last forever, but thats what has been happening we are in the middle right now the vix, well bid. Mid to high 20s. This is the story. There is a massive play on to bet on lower vix huge amount of vix play out there. We will see. Market is not liking a strong dollar these days. Look at where we stand heading into the close the dow is down 23 points or so. We rallied to the flat line and went positive in the final hour of trade at one point this morning we were down 332 on the dow the dow is one of the only major averages heading for a down week it would be its first down week in a while look at the s p 500. Its down fractionally we have really come off of the lows, the banks are doing well thanks to higher yields and Morgan Stanleys performance real estate and Energy Stocks also doing well. Nasdaq down third day in a row, still up about 1 for the week and the russell 2000 small cap, look at that showing, up 1 on the close. Wilfred over to you. Welcome, everyone to the closing bell. I am wilfred frost, sara icen and mike santoli what a day recovery. We ended lower on each of the three indices. The dow was down 332 points earlier in the session european markets closed down 2. 5 midday. Decent recovery even though we are down across the major indexes. Energy the best Sector Health care the worst. Come up, zoom shares have skyrocketed nearly 7 this year rallying again today after announcing a new service allowing users to host events with paid at missions and new tools to help expand business beyond Video Conferencing. We will speak with zooms cfo. Steph lee link is with us. And michael joins us. Mike santoli, the rallies led by banks and the cyclicals picking up but the tech is still lagging. The rest of the market rising you could say thats consistent with these hedge funds that are leaning heavily into the leadership and are short the rest of it they are just kind of pulling back a lebt on risk on both sides. Who knows if thats whats going on clearly, the market did not take the excuses from negative headlines as a reason to get any kind of Downside Momentum going. Again, we went back to basically where we closed on friday. I think the market is still having to maybe chop around a little bit and reset expectations and sentiment and positioning which got slightly ahead of itself over the last few weeks. Thats a process thats probably ongoing right now. Better market didnt fall away but i dont know that that particular process is over yet michael yoesh cammi how are you positioned ahead of potential fiscal stimulus . Does it affect your decisions and the moves you are making right now . It has over the course of the last several months, actually. Our base Case Scenario is whether it happens in the next two weeks or the next six weeks we are going to got another stimulus plan which we think is going to be in the neighborhood of 2 trillion, which adds to the stimulus this year believe it or not of 5 trillion. Stimulus n. 2008 we did 275 or 2. 8. So twice what happened in 2008 therefore, we continue to remain pretty constructive on Equity Assets but we want to be very, very careful here you want to make sure you are buying assets that have staying power. As was mentioned earlier by stephanie, you know, some of the names that are out there right now are more trading names rather than investable names we like investable strategies. We think that is what gets you through this really Tumultuous Times we are going to go through in the next 60 days. If you have cash, you want the wait abuse you are going to have opportunities to take advantage of volatility. You want to wait for a more attractive entry point. Yeah. We are greedy looking for more attractive entry points. I think financials have long been sort of taken out to the wood shed as problems that we are going to have related to low interest margin. But i dont think thats the case i think you are going to be able to see Companies Like we just saw in recent earnings reports in the last two days they are going to come back and i think that earnings stream is going to look pretty strong and the dividend ratios are just through the roof i think thats a benefit for investors. Hmm a case for financials there. Stephanie, i wanted to bring up big tech all the fangs underperformed today. Whether that was just the flavor of the markets or the fact that there was a ton of bashing, names like twitter and facebook, which we will get to in just a moment do you want to light ten load on technology i know you have been doing society. But now that the republicans are coming out after the democrats last week, they are getting hammered at least publicly. I agree i think today was a little bit of to be honest with you. You question how do we value these companies . We talk about how attractive the growth rates are at these companies but a lot is already priced in. I think they take a breather i thil think you want to have exposure to them because they have got such growth in some of the specific end markets the internet of things, and wearables and a. I. , thats not going away any time soon you are in the second or third inning of amt i. And thats a Addressable Market by the end of the decade you dont have to pile in. They are overowned this is part of the reason wilf asked me about the barbell. You want some exposure but you want some of the things that havent done that well and that is the cyclecals, the growth is stain sustainable and the growth is going to be substantial. Pick your spot. Goldman sachs came out downgrading the tech sector to neutral and upgrading banks and audios goalman saying it expects approximately see and economic shifts to support a rotation into value stocks in the next months, and a blue wave, this election cycle would support that shift stephanie, that must be music to your ears. Look, for value for cyclecals you need better growth and you have to get a little bit of inflation. Would know we have a ton of liquidity in the system. Michael mentioned that we have this new fiscal thats probably coming, after the election or before, it doesnt matter but it is Something Like 2 trillion or so if you get vaccine, all of this should lead to better growth does it lead to better inflation . I am not so sure but if you look at the growth, and then you look at the flows, and the flows have been so weak we havent had a surge in values into value or cyclecals since 2016 then you look at the tech valuations, they are very, very high you have got to be very patient there. But then if you get a little growth and inflation, the cyclecals are going to go up and the banks are there. I am there i am overweight this the Financial Services group, for sure. Michael let me jump in really quick and talk about what stephanie just talked about with technology you should understand if geldman for example, says that maybe that leadership is starting to water down, i dont think what they are saying is sell. I dont think what stephanie is saying is sell all of your technology i think has had such a massive outperformance, i think this is when you rebalance you dont let the winners run off with as much as you have rebalance, get your securities back to the right spot thats the key rebalance and dont let it run rather than a flat out sell tact. Lets call them semilockdowns, that we are seeing in europe, if we saw those in the u. S. How would the markets react . Yields come down a little bit. We have seen the playbook executed before, a couple of times this year in different rounds i think there is a legitimate reason to be skeptical that we would have certainly Nothing National in terms of a lockdown but that the restriction would necessarily go back to the most severe as we said earlier this year it doesnt mean much necessarily though if peoples behavior changes. I think thats what we are trying to ride is that line between exactly how much of a shift, even as goldman and other folks try to anticipate when this all kind of is behind us. Goldman is interesting because as a firm they have said vaccines sooner than people think, growth next year stronger than people think, and buy value in cycles because it is going to be the way to play it all. So we will see if that works and also, the fun part is that was exactly the strategy that was pushed to you in the last election the trump trade by the high nominal growth trade and now thats the biden trade, ironically. Energy and bank, right. Yeah. Were supposed to be the big winners. Stephanie, it really does come down to your view on economic growth, i guess. To have that view, do you have to factor in whether we are going to get a vaccine before the end of the year . Or whether it is going to be massively distributed early next year how do you factor that in . You do need for us to get back to naturalsy you definitely need a vaccine it is impossible to time it is impossible to figure out this fiscal and impossible to figure out what the election is going to be. You have to way. I am going to argue that all this stimulus in place has led to in certain pockets of the economy a v shaped recovery. Manufacturing has had a v shaped Recovery Housing and auto also very, very strong and they remain strong. I think thats positive. I think you have got to remember one thing about manufacturing. There is a Multiplier Effect for every one person that you hire,. 7 get created that is huge thats exactly why i think both sides, both sides are talking about infrastructure into this fiscal, whenever that may happen thats why i dont i am not saying we are off to the races, thats why i dont want to be 100 in cyclecals. I want to have a aboutance in defense and growth as well. But i am leaning towards cyclescals because i feel better as more data comes out in pockets of the economy. Not everyone is in a v. Small business is not in a v, anything related to tourism and services there not in a v. Right stephanie, thank you very much. Okay. Michael final word no g go. I was going to say that manufacturing, housing and auto is three times the size of the travel and lows your industry. I do not dispute that they are in a world of hurt thats why you are going to get the fiscal. Good point. Stephly and michael, thank you both very much. Thank you. Thank you. Coming up, zoom video announcing new tools this week to help move the Company Beyond just Video Conferencing. The cfo will be here to discuss how expansion into work Infrastructure Services will impact the bottom line flexshares may look simple on the outside. But inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Fbefore we talk about taxsaudreys expecting. New . Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. Shares of zoom video finishing higher today following a bullish call from bernstein, that firm raising its price target to a street high of 611 citing a huge runway for growing penetration and revenue. And zooms new on line event platform on zoom stock closed up 5 the platform allows users to schedule and host free or paid events for up to 1,000 attendees as well as list and sell tickets for those events the company also unveiled zap at its conference yesterday zoom share prices sty rocketed this year rallying nearly 700 Kelly Steckelberg joins us, zooms cfo thank you for being here. Great to be here. With some of these new initiatives that you have announced including the events, tell us about the market that you are trying to go after that you dont already have. Yeah. So prepandemic, our revenue contribution for customers with fewer than ten employees was 20 of our overall revenue in q 2 of fy 21 we saw that increase to 36 of our revenue as people we have been in the pandemic and people havent been able to run their businesses in person as they did prepandemic they have been turning to zoom for that you know, i live in a household where i cioppino lessons and yoga lessons happening that way. When you think about how they have been doing this over the last several months it is a disparate insurance, you went one place to sign up for the lesson, another place to play and another place to get the zoom link. Zoom is now going to be a onestop platform to bring all of that together to make it semiseamless for the Business Owners as well as the consumers. There is also going to be an opportunity to list your experience there is and makes you more discoverable and opens you up to a much broader opportunity for people to find you. We are really excited about this because it is a great way for to us now to bring more value to this expanded cohort that we have seen really grow during this pandemic. I think one of the key questions that people investors always come back to on zoom is whether you can continue to have growth even hyper growth that you have seen if we are not in a pandemic. How do you answer that yeah, so zoom really started as an enterprise and upmarket or serving upmarket organizations. As i just mentioned we have seen a shift in our Customer Base and growth in the smaller area cohorts during the last six months but what is great about zoom is the simplicity of the platform, which makes it easy to use for individuals and the reliability that makes it appropriate for fortune 50 customers which we are honored to have in our Customer Base. What we have seen over this time is growth if both areas. And the enterprise and upmarket customers are ensuring they can keep their employees safe during this period of time. We announced cool things at zoomtopia around this voiceless reception check in smart gallery, which is going to enable organizations as we go back to work post pandemic, in a different way thinking about how we are going to work, it is a smart gallery which makes us you will look the same on the screen, which is one of the thing we have been able to experience during this time, the democratization of the Conference Call. We have also seen Significant Growth in our Brand Awareness which accelerated our International Growth as well we are excited about the ahead. Also of course launching zoom phone for people who dont want to have to video conference. Does that not on one level suggest there is a risk to your medium and long term growth if you are having to offer a more Traditional Service . Well, actually we really believe that the future of communication is video and zoom phone is there to support that n. Fact, zoom phone is just one more way that you can actually launch a video meeting. So what it does, it supports phone number support so i can call and then with one click launch it into a video communication. Really over the long term we see these melding together and really come together as one. Video communications has absolutely been accelerated during the last six months while we have all been working in a distributed way. Again, zoom phone is an important part of that strategy to support it. No, i dont think it takes the place. It is just a niced a juchgt to the Long Term Strategy of video communicates the other case that comes up is competition you are going up against big rivals clearly you have beaten competitors in web conferences but this is microsoft, teams, slack, i know you addressed this at the conference and say it doesnt represent a threat can you explain that to investors . Yeah. So we are always focused on delivering happiness to our customers and our employees. The way that do you that is by being thoughtful and providing the best possible products and also being paranoid approximate your competitors we think about that every day. We are always listening to our customers and learning from them what is the most beneficial to them as long as we keep focused on that, the way we view competition is it makes us all be better and it is good or the end user and we have introduced was a perfect example of listening and learning over the last six months and how people have had to adjust to running their businesses helping their children learn during this time and responding to that need as quickly as we can. Does 5g make a difference to you . Or most users of zoom are doing it from their business or their home it is both. 5g helps because it makes it more accessible anywhere i think what we have seen from all of this over the last six months is you can really work from anywhere, connect from anywhere, learn from anywhere. It helps having access on a mobile device. Probably some of us have been in places where we experienced limited band width the zoom platform is adaptable to any device, any network we work really well no matter what location or device you are using. Kelly thank you for joining us much appreciate night hanks for having me. We have got news out of washington lets get to ayman javers. Thats right. Senator Elizabeth Warren is now calling for an sec and cftc investigation into the Trump Administration based on the New York Times story this morning which suggested that some members of the Trump Administration may have been saying slightly different thing in private about the threat of the virus earlier this year than they were saying in public including on venues like cnbc. Elizabeth warren is suggesting this amounts to a textbook case of Insider Trading she says, if this report is accurate it represent isnt an appalling dereliction of duty by trump and those in his administration it also suggests they used the pandemic to extract enormous profits for themselves and their companies. This is going to hinge on whether or not they actually said things materially different in private than what was said to investors in private groups. The other issue is whether the Organization Also take up the suggestion nevertheless, Elizabeth Warren firing off press release about that just a short time ago. Eamon, the other factor to this, if there are grounds for an investigation, great that we will have one. Can you imagine how difficult it is going to be to prove if a fund manager decides to increase or decrease their broad equity allegation or buy some bonds we are not talking like in and out of a stock just before a m a deal. Right the trick here is the cleavage was visible at the time. The cdc was suggesting in early february as late as february 21st that there was a real problem here, that we could have to shut down american schools, American Businesses, that they wouldnt be able to stop the spread they could only slow the rate of infection. That was all publicly known. At the same time, the white house was down playing this and folks like larry kudlow were out there saying it was contained and Kellyanne Conway later saying it was contained. For investors they could see the difference between what the cdc was saying and what the white house was saying and decide who they believed in that argument clearly a lot of investors did decide, and their decision was, you are going to have to short the Broader Market because it could impact all American Business the question is whether those Trump Administration officials were privately saying something that was dramatically or material will he different whether or not there is Insider Trading is a whole other level of question. It is complicated and depends whether somebody has a duty of confidentiality. Not sure how it will shake out but Elizabeth Warren making this point today. Up next, prigss of goods and services, and how this could affect consumer snoks a post pandemic economy well be right back. Im searching for info on options trading, and look, it feels like im just wasting time. Thats why Td Ameritrade designed a firstofitskind, personalized education center. Oh. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now youre binge learning. See how you can become a smarter investor with a personalized education from Td Ameritrade. Visit tdameritrade. Com learn vits time you make the rules. So join the 2 Million People who have switched to Xfinity Mobile. You can choose from the latest phones or bring your own device and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with Xfinity Mobile. Lets get over to mike who is looking at recent changes in consumer spending. You know, we were just talking about what parts of the economy are experiencing a v recovery, which are still not. This is a breakdown from the Government Data on spending between services and goods what you will see is the goods producing sector and spending on those things are actually up above the february highs, right . So you have got things like a huge boom in car sales, home related appliances, everything like that. Thats why manufacturing, inventory restocking is going on services, way beyond the high, an overall of the economic output this essentially says this is where you have more catch up to be done. You can imagine this this sflario next year we are going to be talking about manufacturing companies, automakers who are experiencing a little bit of tough comparisons to last year this is going to be where you have the upside. Clearly most of that in inperson services, it is travel related. It is going out. We know what they are. Thats arguably where you might need more of the near term help and the longer term release of some kinds of medical progress guys but only one of those is in a v. That is good. Exactly. Mike. Thank you. Up next, facebook and twitter under fire for limbing the reach of a controversial report on democratic president ial nominee joe biden and his son Hunter Facebooks general counsel will be here to weigh in on the fallout for the social media giants right after this break. Social media giants facebook and twitter facing backlash after suppressing distribution of a story about joe bidens son Hunter Facebook said it chose to reduce the storys spread pending Fact Checking review. And twitter said it blocked links to the material saying it violated the hacked material policy senators on the jish Carry Committee are calling on Mark Zuckerberg and dorsey to testify. Senator cruz said this. They are monopolies, they are abusing their monopoly power asking they are doing it to sensor views they happen to disagree with, silence those who they happen to disagree with now, just 19 days out from an election to deliberately and blatantly interfere in the election joining us now, former facebook general counsel chris kelly. Boy, did this reignite those accusations of censorship and bias is this an overreach by twitter and facebook it is an overreach. First of all, i mean from the assuming monopoly is something thats been going on in a whole bunch of discussions here d but i dont want to talk about that primarily today. We are operating in a context here after the 2016 elections where platforms were misused by foreign intelligence agencies and a number of others to spread illicit and false material and, you know, what they have been doing is war gaming for quite some time the different scenarios that would come up this is one that would come up twitters policy on dissemination of hacked material came into play and it may have been an overreach to block the url in its entirely. But facebook was fully within its rights, and the way that it war gamed these scenarios before to say, wait a minute, we have got to check the facts underlying this. Restrict distribution in the meantime, allowing it to be spread, still, you know, intentionally spread on the platform is perfectly allowed, link to it is perfectly allowed but to say the normal mechanisms that would normally kick in dont apply because we dont know whether it is true or not we will see what companies out of the fact checks i think this is a responsible way to avoid being misused for these platforms. I fool like there is an added issue here it is one thing when social media platforms decide to put a warnings next to a post by an individual but they always campaign to say they are not a publisher, and therefore dont face the same levels of restrictions and regulation as a publisher. So should they be able to then make a judgment on a post by a publisher who does face those regulations and restrictions this is a newspaper article. You could argue that it is a newspaper from one side or the other but it is a credible journalistic organization. It is a journalistic organization it remains to be seen whether whats put in those articles were facts thats what is being checked right now. The spreads of thatinformation was not blocked by facebook. I think thats the right call. I dont think you should block these thing. But sort of the promotion and distribution that the news need actually amplifies has been restricted until the fact checks come back. We will see the way they come back there may be labeling, may be further restriction. Thats appropriate action 19 days before an election when a material of questionable validity comes even through a major media outlet. Again, to that point, it is a popular, mainstream newspaper here its not the holocaust denials which facebook finally decided to ban after more than a decade of letting that garbage out on the platform it just feels like, chris, no matter what they do in trying to crack down on misinformation and disinformation it is going to be problematic. It is always going to be a challenge and a process of working the refs on this, from both sides facebook sees it from both sides. It has over the years and will continue to. The company attempts to play it down the middle as much as it can to set rules up. Twitter tries to play it down the middle as much as they can, too. And saying that the hacked policy actually blocked the sharing of the url was a little bit more aggressive than i think most platforms should be those decisions are protected not by section 230 in the way that most commentators indicate but actually by the first amendment. This is something where these platforms have their own speech rights in terms of how they express themselves so this often gets you know, cast in this debate of its an Online Platform thats spreading this information versus a publisher, where the nuances are greater than that. You can be one in one context and one in another wohl see how it works out from a regulatory perspective i assume you have seen today that the fcc is going the try to weigh in on this with a rule making, which i think would be a great place to discuss all of the different permutations of the way this can be handled in the future. Despite all the nuances chris that you point to, clearly the president tweeted repeal section 230. Whether or not we are talking about repealing after the election when the dust settles is there a strong case for reform of section 230. To make it a way so it does leigh apply across all of these platforms and perhaps changes the way they are regulated first of all, it does apply across all these platforms initially. Cnbcs commentary site on the enter night is protected in the same way that the facebook is. As a sharing of information across third parties there is a Cross Platform protection that already applies. I hope we will be able to sort out the confusion. Often the discussion is if a publisher can be held libel underist anding libel laws, if that publisher does not have actual they have to have actual naj knowledge of falsityd be acting withual malice it is not like there is a slip of a switch that publishers are held liable and platforms are not. After all of this facebook lost a percent or two and twitter was up i fell like wall street is not taking the threats seriously one reason may be because republicans and democrats are united in bashing facebook and twitter and calling them out but they are very divided on what the whole problem is. The whole censorship and bias issue is very different than what democrats accused them on antikettive behavior and squashing competition. The question is, how does that get resolved in any major threat for regulation for these companies . I think you are going to see a very aggressive engagement on the part of the companies the say look what we are trying to do here is protect the integrity of our platforms to make them trusted places to share information and find voice that sometimes requires hard calls. And people are going to be unhappy about that the goal ultimately is to try to play it as much down the middle as possible, to allow for people to express themselves, and to be entitled to their own opinions but not necessarily their own facts. The covid crisis and antivaks and qanon and a number of these different conspiracy theories spreading on line u tube is taking action against qanon today from what i have seen in reports. I think it is important we realize tees things can spread on line that they can be poison to the good discourse that the platforms are trying to promote. Chris, great the see you. Thank you for joining us. Thanks. Coming up, aflcios president discusses the stimulus standoff in washington and a shortage of ppe supplies are impacting Union Workers across the country. Were back in a couple of minutes. Ready to shine from the inside out . Try natures bounty hair, skin and nails gummies. The number one brand to support beautiful hair, glowing skin, and healthy nails. And try advanced, now with two times more biotin. But i cant say i expected this. Because it was easy. And try advanced, to fight these fires, we need funding plain and simple. For this crisis, and for the next one. Prop 15 closes tax loopholes so rich corporations pay their fair share of taxes. So firefighters like me, have what we need to do the job, and to do it right. The big corporations want to keep their tax loopholes. Its what they do. Well, i do what i do. If yould like to help, join me and vote yes on prop 15. Welcome back time now for a cbs news update with sue herera. Hi, sue. Hello, sara hellor hello, everybody. Heres what is happening at this hour cspan has suspended its Political Editor steve scully who admitted he lied about his twitter feed being hacked after a Questionable Exchange with Anthony Scaramucci he was supposed to host the town hall tonight he will be able to contribute to cspan after some distance from this episode in new jersey a business doing well during this pandemic. Sports gambling setting a record with 748 million debt during september, far eclipsing nevadas best monday. In the dutch capital, authorities are wondering exactly what to do with these people they were partying on the last night before new Health Restrictions took effect and they were celebrating just across the street from the Dutch Parliament which at that point was debatesing the countrys pandemic response. As you can see, few revellers wore masks, not a lot of social distancing, but no fines were handed out sara, ill send it back to you. Sue, thank you. Up next, go big or go home thats what President Trump says his latest stance is on the ongoing stimulus negotiations. We will discuss what is at stake for Union Workers with aflcio president richard trumpka. After the break. Some things are good to know. Like where to find the cheapest gas in town and which supermarket gives you the most bang for your buck. Something else thats good to know. If you have medicare you may be able to get more benefits without paying more through a Medicare Advantage plan. Call now to request this free guide. Learn about plans that could give you more benefits from humana. A company with nearly 60 years of experience in the healthcare industry. Humana offers a wide range of all in one Medicare Advantage plans that include medical and Prescription Drug coverage. Plus valuable extras that may include the Silver Sneakers Fitness Program and mail order prescription coverage. 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A licensed humana sales agent will walk you through your options, answer any questions you have and help you enroll over the phone. Plans with a zero dollar monthly plan premium are available in many areas. Call now and well also send this free guide. Humana, a more human way to healthcare. President trump saying today he would raise the amount for a stimulus package above his current 1. 8 trillion offer. However those comments met resistance from Senate Majority leader Mitch Mcconnell who said his targeted package of 500 million is sufficient. 898,000 jobless claims were reported, the highest since mid august joining us now, president of the aflcio, richard trumka. Represents 12. 5 Million People how concerned are you that we havent seen a second major stimulus bill across the line. Or is there the ability to be a little bit relaxed given that we are in the runin to the election, given we should expect politicalization and we will likely get a deal one way or the another after the election no, wilfred, each day that pass is a tremendous loss for our country. It is a loss in jobs a loss of wages, a loss of health care, a loss of housing and a loss of lives. The republicans cant get their act together you have mitch, who has 20 senators on his side who says they will do nothing he offers 500 billion trumps negotiators offer 1. 8 trillion and trump says you are all wrong, it is too small there is no way to negotiation in an environment like that when nobody can get their act together and the leerz is the American Public and the American Worker it is both sides, richard you could say the democrats have been holding out the all or nothing approach, and they have been trying to throw things that are not politically palatable into the bill. I dont want to discuss politics with you in that sense. First i disagree with that dont you think it is on both parties why they cant get it done why . First of all, the house passed its bill five months ago and they have not been able on republican side to get their act together in five months. Every single day has cost us jobs and lives and wages they have been trying. How do you negotiate when the other side says you are too high, you are too low, negotiations are on, negotiations are off you tell me how a rational sane person can negotiate with that so its not the democrats in this instance. I may have been in the past. But it isnt here. Its the republicans, sara. We dont know whats going on behind closed doors with pelosi and mnuchin. They are haggling. I want to get you on the record here about union worker voters they have proven to be important especially in swing states like michigan and wisconsin and pennsylvania and i know you have been campaigning and hosting discussions with joe biden but President Trump is really making a strong appeal to workers, talking against china and nafta and tpp, things that joe biden has supported. Are you confident you are going to get your Union Workers support in those votes we are exceptionally confident. Because the president failed to deliver on the promises that he made to workers over three and a half years he said there would be a stimulus bill. There has been no stimulus bill. I mean an infrastructure bill he said he would help workers. He has hurt workers. He has gone after our health care he has gone offer health and Safety Standards gone after health and safety regulations. I am confident and our polls show that we are going to win significantly, way, way, way more than we did the last time around you didnt get hillary didnt get as much union worker voter support as barack obama did in the 2016 election i know more than 50 went to hillary but it wasnt as wide of a margin. It wasnt trump got 3 more of our members than myth romney did unfortunately, hillary got 10 less of our members. Hillary made some bad statements and then i think they are campaign faltered. But thats behind the scenes it doesnt matter right now. Because hillary and joe biden are two different people joe biden has a 40year career of standing up for working people i have known joe for 40 consecutive years. I have talked to him hes been with us. Hes been to our picket lines. Hes been the our union halls. He stands up for workers and he says he is going to be the best worker president that the country has ever seen, and i believe him, because he has a program will deliver he has a program that will deliver for workers. He will end this covid virus, save workers on the job, protect health and safety and allow us to organize unions and give us a voice on the job richard, good to get your table. Richard from aflcio last year he made news for playing off 400 coeglle loans. But today he is in the news for a different reason his settlement with doj. Next before we talk about taxsmart investing, whats new . Well, audreys expecting. Twins grandparents we want to put money aside for them, so. Change in plans. Alright, lets see what we can adjust. Wed be closer to the twins. Change in plans. Okay. Mom, are you painting again . You could sell these. Lemme guess, change in plans . At fidelity, a change in plans is always part of the plan. You can go your own way lemme go your own way plans . Your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Billionaire robert smith making headlines with a big settlement with the doj. Prosecutors saying smith willfully violated the law in a tax evasion scheme he wont be prosecuted because of his cooperation in a much broader case he will pay 139 million prosecutors say the brockman hid 2 billion from the irs, making his the largest suit against a taxpayer it was to an offshore place in belize and nevis and had a ski property in the french alps. It is said that robert smith who has 5 billion committed various crimes no comment from smith. We should add that he has given 450 million to charity so that is more than three times the settlement today to put it in perspective. Still an enormous settlement. I will have to email you. We have to run and the boy bands ipo it has traders around the globe buzzing. All of the details when we come back diane retired and opened that pottery studio. How did you come up with all these backstories . I got help from a pro. My financial professional explained to me all the ways nationwide can help protect Financial Futures in peytonville. Nationwide can help the greens get Lifetime Income because their son kyle is moving back home and could help set up a Financial Plan for mrs. Garcia. And he explained how nationwide can help mr. Paisley retire early and spend more time with his pal, peyton. And their new band. Exactly yeah. Dont forget the band. I havent. A good education takes you many different horizons and that sticked to my mind. So, when 1 a day came out, i said, why not . Why not just utilize that resource. And walmart made that path open for me. Without the 1 a day program, i definitely dont think id be in school right now. Each week for me in school is just an accomplishment. I feel proud every step of the way. Is just an accomplishment. 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. The music label behind kpop sensation bts. Big entertainment news, jumping 90 from their ipo it is worth nearly 15 billion while live nation is worth about 12 billion. I have not studied this stock, but as a fan of Backstreet Boys and nsync over the years, i would find it hard to be a longterm guy. What happens is they grow up they are not in boy band anymore. Then they do a comeback tour. You are buying publishing rights, so in theory it could live on in intellectual property but my nudinuto lived on i still remember when robby rejoined take that i am not sure history remembers the beatles as a boy band no. Its a grouping of boys. This reminds me of the best kpop song which made it over here on these shows. That was awesome it was huge i dont know if its the same label. You forced this particular boy band a matter of what it says about Market Sentiment to somewhat speculative or risky or fad stocks we are out of town. How about ipos . A killer year for ipos we are out of time. I dont know how to follow that i am melissa lee and this is fast money. Tonight our real estate record breaker. What just happened in the mortgage market. Plus peleton pedaling to an all time high. And wh