At 211 a share, now its 213 up again, those two Companies Amazon and microsoft have huge and growing cloud operations. That is a big part of their stock rally. Now look at tesla, 142, yesterday closing 1600 a share and this morning its up 11 bucks, 1654 but it is up again, are these tech stocks a bubble, is it like the dog, the late 90s, ive never seen anything like this before. Now look at the overall market, the Dow Jones Industrial going up again, maybe 150point of the opening bell, the s p of 21 points, two thirds of 1 . Look at the nasdaq, a half percentage point and more because a big tech again. The market is also getting help from the europeans who reached agreement on a near trillion dollar rescue plan that helps and they are still negotiating a plan for the United States as of right now. Bottom line, big tech in the market going up again today. A different story in our cities there is a confrontation going on on one side local largely democrat mayors on the other federal authorities. You can see it in portland where the mayor blames the fence for the violence. President trump wants to use federal agents and other cities. This is a violent standoff with Strong Political implications and it is not going away. Program note, Ken Cuccinelli is in charge of those federal agents and he will be joining us in just a few minutes. Varney company is about to begin. Stuart let me lay this on thick, ive been doing this for 45 years and i have never seen anything like it. American Technology Companies are digitizing the economy and the running away with the stock market, mike murphy is back with us. Where and when does this astonishing big tech runup in . Good morning stuart, i think it is when the growth ends. When you look at amazon and microsoft and apple, to compare it to the 2000 tech bubble, i dont think it is fair because both companies were just a dollar in a dream, they did not have earnings. These companies are speaking about today, you can argue that price may be expensive but you cannot argue what theyre doing today and what the future looks like for these companies. I dont know what it ends but these Companies Keep innovating so im not a seller im holding all the names. Stuart would you buy into amazon that went up 200 a share yesterday and another whatever it is this morning, another 34, would you go up and buy that stock as of today . Would you do it . I would not, what i do when we allocate money on a regular monthly basis, we are buying a basket that has all these big tech names in there. I cannot tell someone to go out for the first time purchase amazon today but i think there is growth, think back five years, if i said everything you own will be in the cloud, you would have no idea what im talking about. Now that is a real thing. You see growth from these companies in a way that we never expected and knew that was there. I want to own them and if you dont own them by them them in a basket and watch them grow. Stuart you mentioned the crowd under cloud, ive a much more on that in just a moment because its important to the big Tech Companies. I want to look at ibm, ill call that oil tech, the stock went straight up like big new tech, 4. 8 as of this morning. Actually, is the cloud operation driving ibm . Ashley yes it is, you could call it the bright spot in the report today. 5. 75 billion taken in for cloud on Cognitive Software sales, that is a 3 yearoveryear but if you look at the actual cloud and Data Platforms revenue, that jumped nearly 30 . That is definitely a bright spot for ibm. Overall, they based on earnings and revenue and those earnings were down 31 yearoveryear, revenue down 5 yearoveryear, so there are challenges no doubt, 28 of the last 32 quarters they have seen a drop in revenue sales and there is the cloud and the Data Platform revenue, pretty strong indeed and thats giving the stocks a nice lift. Companies are relying on tech more than ever especially during the pandemic. Companies are also scaling back the digital spending. Its a real line that these Tech Companies have to ride but ibm and the cloud revenue very critical. Stuart the cloud, the cloud, the cloud. Microsoft is a big winner in the cloud. , into this, there are surely other bigname companies, other Cloud Companies that are doing very well. Susan cloud is very informed especially in these times when people are going to Cloud Computing instead because youre stuck at home. Dropbox is another name is a Storage Company that helps you easily share files, another fundamental rockstar that i want to point out, they said its a smaller company, rockstar and it helps with plugins and work from Home Software to run smoother. Adobe is another name that we dont talk enough about, it is also transition to all cloud and helping companies. And to recall on the uber app where you cannot find your driver for you, this company in 2016, has over 200 and its another when you missed. Five years ago if you wouldve said the cloud is driving this extraordinary rally and technology stock, i would not know what youre talking about. It is, if youre looking at amazon, you know why it rally, yet jeffrey, Goldman Sachs reiterating 3800 price target when it was trendy below 3000, we have that enthusiasm and optimism, thats when the stock rallies at the day yesterday. Stuart lets change the subject for a Second Period joe biden out with his latest in his economic plan focusing on caring for Young Children and senior citizens. He wants to spend 775 billion over ten years to rebuild the nations caregiving economy. That includes free prek, a childcare tax credit for lowincome and middle income families, access to afterschool and summer programs, how he would pay for all of this, rolling back tax breaks and taxing the rich even more. Come on in here, lets suppose biden wins and he imposes enormous tax increases, spends trillions of dollars and kills oil, gas and coal, i think that is the kiss of death to the economy, what say you . I think the economy, all different, i think the over entering the economy would overcome it. We had obama biden for eight years and although coming out of the great recession, the economy and the market managed to overcome a lot of the policies also. I think we will get past her but i dont know why anybody out there would want to vote for hands out or free government spending. Stuart wait a second you think the stock market would get past maxs enter massive tax increases, huge spending, the end of oil gas and coal, you think the stock market would take that in stride . Itll get past it but what would happen, if you played out and companies are taxed more, their price to earnings would increase because its going to be less earnings. But will companies figure out a way, if you remember moving a lot of businesses offshore and moving to tax savings around the world, i disbelieve the s p would be an immediate pickup, i think the large fortune 500 companies would figure out a way to still put a profit regardless of what biden does to try to slow the economy. Stuart mike murphy enter murphy, we hear you rethink you for being with us. Lets get back to amazon, they are delaying prime day. Do they have a new date . No but they told that a thirdparty seller to the week of october 6. No new date has been set. Typically last a this week. July is christmas for amazon. Unprecedented chopper demand in the new outbreaks. Prime day is bigger, last friday and cyber monday put together. Brands and hardhit category that clothing will be very excited to see any uptick in traffic related to the private promotion. It is october 5 for now. Stuart you have anything on the electric delivery robot that amazon is using to deliver packages, it is from atlanta to tennessee. It is a robot and theyre coming to atlanta, georgia and tennessee, this week, it is a little cooler but that little blue thing spent months learning to navigate around pedestrians and cac in california and washington state, now scout is entering the vast liberty network. If you were a kid in stockholm playing on your front lawn and you see scout roll up to the front door, that will certainly put a smile on your face. Stuart amazon stock is up somewhere this morning. Thank you so much lauren. Stuart to Major Companies reported earnings this morning, but still with cocacola first, pakistan 32 but if you look inside the report, july, the sales started to improve, that coincides with the reopening of the economy. Chinas business bounce back and in the u. S. Coke did better than other countries because drug operation at fast food joints were open and the stock cocacola of nearly 3 this morning. The defense contractor outperform last quarter, their big headline that optimistic about the second half of the year and the stock is up three and a quarter percent, 11 bucks per share. Overall a rally again, lots of green on your screen, the dow, the s p, the nasdaq all on the upside again. Amazon, jeff bezos, he became richer to the tune of 13 billion in a single day. Aint that something. On capitol hill, the household the hearing on virus vaccine development. Any headlines out of that, you will get them real fast. Were going to show you new video showing ambush of Police Officers in chicago that sent 18 of them to the hospital. President trump threatens to send federal agents into cities facing violence. Listen to the. These people are anarchists, these are people that hate our country and we are not going to let her go forward. Stuart however, the mayors of the big cities are calling the move and abuse of power. The man in charge of Homeland Security react to that in just a moment. He is next by the way. Dolph lundgren, youve got a onesixty i. Q. , a masters in Chemical Engineering and youre technically a genius. And it appears youre quite the investor. I like to trade. Well, Td Ameritrade has pros ready if you need help, say talking through a new strategy. Just in case things, you know, get a little rocky . Im sorry on the upside i think thats waterproof. Maybe not. 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Stuart microsoft owns linkedin and linkedin is cutting six workforce because the pandemic has caused a big decline in job recruitment, that is their business and going to laos. Microsoft owns them but theyre still up a book, to 12 microsoft. Alto beauty will close 19 stor stores, they will open fewer stores than originally planned this year, people are stuck at home and not wearing makeup as much as they used to and the stock is down 1. 3 . Look at this please. You are watching new video of rioters in chicago, this friday Police Officers are being brutally attacked, President Trump said hes had enough with all of this. We are sending Law Enforcement. Portland is totally out of control. The democrats, the liberal democrats are running the place and have annoyed with her doing. When i let new york, chicago, philadelphia, neutral entry detroit, baltimore, all of these, we are not going to let this happen in our country, all rent by liberal democrats. Stuart the democrat mayors of seattle and portland and other cities have responded to that with a letter to the feds, the letter says the unilateral deployment of these forces in American Cities are unprecedented and violates fundamental constitutional protection and federalism. This abuse of power cannot continue, lets bring in Ken Cuccinelli acting deputy secretary of Homeland Security. Sir, i see confrontation coming in our cities and i think the democrats are going to blame you. What is your response. Coming, look at portland there on day 54 in a row of violence and that was a violent going on every single day encouraged in part by the political leadership, that was going on for 35 or 40 days before we felt the need to bolster our security for federal buildings which became targets and we had intelligence they would become targets. The cause of our Law Enforcement surge is a violence that goes uncontrolled by so many of these mayors and frankly they are cotelling to those Political Forces that want to silence the rest of us and willing to use violence to do it. We saw the in denver this weekend, you see in chicago, an assault to tear down another statue, injured 49 Law Enforcement officers who were doing nothing but other than doing their job. By the way the Police Superintendent gave a spectacular press conference to walk through all of the events of that violence. Stuart the president says he wants to send in more federal agents into the cities. Will we see federal agents go into the cities this week as soon as possible . Im not prepared to give specifics of operation but the president is serious and we respond to his orders. Those are discussions going on between the department of Homeland Security, the department of justice and the president in the white house about where and how to deploy more Law Enforcement officers and where they can be most effective. That can happen in two ways, that can happen in cooperation with local officials and one of the interesting things is chicago Police Superintendent said is he would welcome that kind of support so there is opportunity for that partnership and the portland model where we go in simply to enforce federal law to protect federal facilities and personnel where we have jurisdiction in the legal obligation to do so. It is both of those models in various cities around the country that were looking at but as long as the violence continues, the president will continue to push us to advance more responsible policing to bring down the level of violen violence. It is possible if you put more federal agents into more cities we will have more violence because there will be a confrontation between the two sides. Forgive me for pricing this but that looks likely this summer. You are welcome to ask your question is do, i have no problem with that. The fact of the matter is, there is no legitimacy to the idea that its okay to attack federal Law Enforcement we dont show up willynilly for the heck of it, we have Legal Authority to do it, the mayor from the letters have not read the constitution annoyed with her talking about and certainly have not read the laws that are were enforcing and getting arrested and getting charges sticking, those sorts of things are happening because were acting within our Legal Authority. We cannot exceed to the fact that its acceptable for people to have any level of violence even if they happily directed at federal officials instead of local and they do go between the two of various cities in various times. Were there to support local Law Enforcement when there allow us to have a partnership but we will always enforce federal law to keep the peace. Stuart i want to thank you for coming on the show today. We always appreciate listening to your point of view on this program and i hope you can come back again soon. You have a great day. Stuart the market real fast, it opens at six and half minutes time, were going up, i see a lot of green. We will be back. Just over a year ago, i was drowning in credit card debt. Sofi helped me pay off twentythree thousand dollars of credit card debt. They helped me consolidate all of that into one low monthly payment. They make you feel like its an honor for them to help you out. I went from sleepless nights to getting my money right. So thank you. Horton is one of the largest builders in the country, they strategically shifted to really building out on what we call the exurbs which is the third ring of a metropolitan market, they are clearly the leader there