New claims actually rose. And 17 Million People are still drawing Unemployment Benefits. I believe thats a negative for the overall market. Get to that in a second. Look at this. Amazon, apple, google, facebook, the day after the top executives took a pounding from the politicians, these stocks went up during those hearings. They are down in preMarket Action this morning. Hold on. All four of these giants will report their earnings later this afternoon. This is big techs big day. My opinion, these Companies Need blowout numbers to sustain their very lofty stock prices. Watch it unfold at 4 00 this afternoon on this network. Overall, i got a lot of red ink to show you. The dow is looking for a loss of over 300 points, down maybe 40 for the s p and off 131 on the nasdaq. Heres one of the negatives thats hurting the market. Emergency virus relief. It runs out in 24 hours. Congress is divided over how to replace it or extend it. Investors want more stimulus but theyre not sure they are going to get it. The federal reserve, however, will keep on stimulating. Jay powell will keep Interest Rates close to zero for as long as the virus drags us down but the market is still way off this morning. Later in the program today, jeff bezos in his own words on his american dream. We are going to show you a side of him that you probably have never seen before. And push back to the cancel culture. Trader joes stands tall, labeling food trader joses or trader mings is not racist. Got that . Varney company is about to begin. Stuart perfect production there. Rocket man is the song and youre looking at another example of american ingenuity. That was nasas mars rover, called perseverance, launching earlier this morning. This is the first time nasa is going to mars with the intention of finding life. Juxtapose that with those tech hearings yesterday. Lawmakers absolutely slammed americas greatest innovators. What a contrast. Mars and the politicians going at big tech. Ive got a my take on that coming up in the 11 00 hour. Lets stay on big tech because this is a big day for them. Those four Companies Report earnings this afternoon, apple, amazon, facebook , google. Drvme d. R. Barton is here. What do you think to my opinion . Im saying those Companies Need a blowout Earnings Report today to maintain those lofty stock price levels. What say you . Well, i think youre right. I think what we have seen netflix gave us a little glimpse of this earlier, as did microsoft. These companies have had their stock price run up so strongly in the near term, if they dont give us those blowout numbers you talk about, they do get a sell the news moment on earnings. Who i believe, i believe amazon is going to come out with those blowout numbers. I think the other three are a little bit suspect and they are going to give us some downside after their earnings. Stuart okay. Let me summarize. You think amazon, yes, will indeed have a blowout report this afternoon. I got that. Okay. We hear you. How about facebook . Yeah. I believe facebook is in a bit of a trouble from a revenue standpoint. They are only going to grow revenue in the low Single Digits year over year, stuart. I believe that thats going to be important but the number thats going to move them is what they are going to say about the impact of the boycott, the july boycott on next quarter. If they say its not that big an impact, we are handling it well, i think that could level off the stock price instead of having a selloff. Stuart we are all going to be glued to those Earnings Reports because this is the biggest of big days. D. R. , thank you very much indeed. Let me bring in susan. I want to talk about apple. They report this afternoon. What should we be looking for . Susan no guidance from apple last quarter but we do know iphone sales will be lower this time around than last year. The cheaper new iphone that they launched in the Second Quarter might actually help sales a little bit, especially in markets like china and india, where lower cost competitors were actually beating apple in the phone sales game. Apple Services Also key as well with the covid lockdown, are more people watching apple tv plus, listening to apple music, maybe buying more storage on icloud as they work from home . This has hit a record last quarter, already a fortune 100 company on its own, now probably a fortune 50 company on its own making up close to 20 of the companys overall sales. Everyone is also looking ahead to the new 5g iphone this fall. But apple never gives guidance on device releases. We are looking to extrapolate and maybe predict from any production updates they give us this quarter. China recovery also key as well. Indications are sales are picking up there once again in their second most important market and its also important to note that americas biggest company, apple, has not missed on profit or sales the past two years. So very busy afternoon. I will speak to a few executives on some of those Earnings Reports. Stuart got it. We will all be glued. Okay. Want to go back to this. President trump tweeted this a few minutes ago. With universal mailin voting, not absentee voting which is good, 2020 will be the most inaccurate and fraudulent election in history. It will be a great embarrassment to the usa. Delay the election until people can properly securely and safely vote, question marks. When that came out, the market moved south, specifically moved south. The president is calling for a delay in the election. Thats big news indeed. We are down 300 on the futures at this moment. Back to that really seriously negative number on economic growth. It wasnt growth. The economy shrank at an annual rate of 32. 9 right in the middle of the lockdown. James freeman is here with the wall street journal editorial board. Forget the Second Quarter number for a second. Look to the Third Quarter. We get that number on october 29th, four days before the election. Thats going to be a challenge for the president because i feel that people are not behaving economically the way they used to. Were not going to have quite the blowout recovery that we thought we were going to get. What say you . Well, you will certainly see a big increase from the Second Quarter which as you mentioned was almost as bad as expected, worse since 1947, but i think the key for the Third Quarter is we need to get back to a reopening mindset. We need to stop essentially robbing from our children and spending insane amounts of money to keep some parts of our economy locked down. Obviously we want to do sensible things to keep people safe and to protect the vulnerable, but trillions of dollars in spending, trillions of dollars in new money creation from the federal reserve, this is a big debt. Were not really feeling it yet but it is going to be paid by our kids, and i think the key to that Third Quarter is to get back to the may and june idea that we have to reopen. Stuart absolutely right. Its a crucial number. Got to get back to work. Stay there, please. Im going to deal with some other stocks which their companies have reported their earnings. First of all, ups. Look at that. Straight up, 10 higher. 8 up. Shipping demand jumped 21 with the biggest surge in rural areas. Thats a pandemic winner. Look at procter gamble. Sales up on increased demand for household cleaning and personal health products. Again, another lockdown winner. Big gain for a big stock. Eastman kodak surging again. Got a deal with the government to make pharmaceutical ingredients. It started off the week at what, 2 a share. Now its 40. We will have more on this unprecedented rise later this hour. Then we have paypal. Another pandemic winner. A huge surge in profit thanks to the lockdown. Lauren, the ceos talking about a permanent shift in the economy . Lauren the way we pay for things. Digital payments not only online but instore as well, clinching a deal recently with cvs to scan qr codes as payment in the store. So paypal is at the forefront of this changing economy. They did report a 22 increase in revenue and adding over 21 million new accounts in the quarter. Thats more than they usually add in an entire year. Take a look at shares. They are trading at a new 52week high at 192. Stuart there you go. That virus worked for some companies. All right. Lets get, still on big tech, big day, listen to congressman jim jordan confront the google chief executive on political bias. Roll tape. Can you assure americans today you wont tailor your features to help joe biden in the upcoming election . We wont do any work, you know, to politically tilt anything one way or the other. Its against our core values. But you did it in 2016 despite of the fact you did it in 16, President Trump won. I just want to make sure youre not going to do it again in 2020. You have my commitment. Its obviously true and we are continuing to conduct ourselves in a neutral way. Stuart there you have it. Sundar pichai says no political tilt. James freeman, do you believe him . Well, you look at videos of the sad people at google after the 2016 election, it does make you wonder and certainly, there have been a lot of questions. I think tech, not just google but the other companies, could go a long way fending off further regulation of their businesses by making a real commitment not to be arbiters of political disputes in this country. I think youve seen facebook, Mark Zuckerberg has made some good statements in that direction but obviously getting a lot of pressure from his employees. I think for all of them to say this is not our job to be the gatekeepers of ideas in this country or to censor people up to and including the president , i think that would go a long way toward reassuring a lot of legislators certainly on the conservative side of things. Stuart yes, it would indeed. James freeman, thank you very much indeed. Googles stock is down 17 bucks this morning. Look at futures, please. They took a turn to the south after a president ial tweet where he suggested delay the election until we can properly securely and safely vote. Thats not gone down well. Red ink across the board. Oregons democrat Governor Kate Brown claiming that federal offices will leave portland today but thats not what Homeland Security say. Watch this. Absolutely not. We are not leaving portland until we are assured that that courthouse is safe and secure. Stuart so will the protesters really remain peaceful enough for the feds to leave . We will have the story for you. San francisco could soon have a new tax on companies that pay their ceos very high salaries. We will tell you what that tax looks like. And emergency Unemployment Benefits set to expire in 24 hours. Will congress be able to get a deal done before that deadline . Were on it. Varney Company Continues after this. It was 1961 when nellie young lost her devoted husband. Without him, things were tough. Her last option was to sell her home, but. Her home meant everything to her. Her husband had been a High School Football coach and it turned out, one of his former players came up with an answer. A loan, created just for older homeowners. And pretty soon, nellie young had one of the first reverse mortgages. Discover if a reverse Mortgage Loan is right for you. Use it to eliminate monthly mortgage payments and increase cashflow, create an emergency fund, preserve Retirement Savings and more. Call now for your free information kit. That first reverse Mortgage Loan meant nellie could stay in the home she loved so much, with memories that meant even more. A reverse Mortgage Loan isnt some kind of trick to take your home. Its a loan. And its taxfree cash just when you need it. Its about making your retirement better. Call today and find out more in aags free, noobligation reverse Mortgage Loan guide. Access taxfree cash and stay in the home you love. Of course, you can use it to pay some bills, cover medical costs, update or repair your home. But best of all, it eliminates those monthly mortgage payments so you get more cash in your pocket, every month. Learn how you can use a reverse Mortgage Loan to cover your expenses, pay for healthcare, preserve Retirement Savings, and so much more. A lots changed since 1961. Since then over a million Older Americans have used a reverse Mortgage Loan to finance their retirements. It meant so much to nellie, maybe it could mean as much to you. Call now and get your free infokit stuart that tweet from President Trump came out about 20, 30 minutes ago, really riling the markets and roiling politics. Pay attention to the last sentence. Delay the election until people can properly securely and safely vote. Come in, please, senator john barrasso, republican from wyoming. Delay the vote . What do you say, mr. Senator . Well, i think were going to vote on election day and the leadup to election day, it will be a secure election and if i have anything to do with it, we will reelect donald trump president of the United States. Stuart mr. Senator, i do apologize for interrupting you, but if we have mailin balloting the way its scheduled now, there is absolutely no way you will get an election result on Election Night or even in the first few days. That means confusion and endless challenges. That is a mess. What do you think . Delay the election . No, were not going to delay the election, stuart. Were going to have the election completed and voting completed by election day. Its going to take awhile to get all the votes counted, i am certain. We need to, though, continue to do this as we do state by state. You know, nancy pelosi in her bill dealing with coronavirus wants a complete federal takeover of the election and we cannot allow that and i wont allow it. Stuart you cant start counting mailin ballots until the day of the election. In some places, you cant start counting until youve checked every mailin ballot for the right postmark. I mean, its a mess, senator. Well, theres a lot thats changed because of coronavirus. We have been focused and working on making sure elections are secure and we will get results, its going to take awhile. I believe that it will. We may not know on Election Night. The balance of the house of representatives or the senate, or the presidency. But we will not delay the elections. Stuart well, the president ial tweet lhas really upset the markets and is the story of the morning in finance today. Let me move on. Youve got 24 hours to come up with a deal on a new sometime lis pla stimulus plan. Thats all youve got. We going to get a deal . I dont suspect we will. I dont believe we will. The president has offered a temporary deal to on a shortterm basis to extend Unemployment Insurance and deal with evictions. Nancy pelosi once again playing politics has rejected that. She continues to live on fantasy island, wanting to continue to pay people huge amounts of money, more to not work than to work. Pay these unemployment bonuses. Im not for that. That is hurting the economy. We need to get people back to work and kids back to school and the disease under control. The republican plan deals with all three of those. Stuart no deal in the next 24 hours. Mr. Senator, we do hear you. Thanks for joining us this morning. Very big day. We appreciate you being here. Thank you. Thank you, stuart. Stuart still red arrows across the board for the market. Dow still looking down about 300. Lets go to San Francisco, the land of inflated home prices, failed social programs and absolutely rampant homelessness. Guess what . They want another tax. Its called the overpaid executive tax. Lauren, explain it to me, please. Lauren it sends the message that it might not be worth it to do business in San Francisco so on novembers ballot, the city will put a tax on executives who make more than 2. 8 million a year and 100 times more than their median workers do. The wider the gap, the higher the tax. Its expected to raise up to 140 million a year and San Francisco could use that however they wish but do you think gap, visa, wells fargo, Charles Schwab will pay that or will they lay off staff and move out of San Francisco entirely instead . Im going with the latter. Stuart i think youre right. I do believe youre right. Lauren i mean. Stuart yeah. Okay. Okay. I just cant believe what goes on in San Francisco. A tax on what they call overpaid executives . Deary me. They cant even solve their homelessness problem. In fact, it always gets worse. All right. My heads exploding. Going to move on. What about Johnson Johnson . Theyve got news on their virus vaccine. The stocks way up. Whats going on . Susan Johnson Johnson, another contender when it comes to the Coronavirus Vaccine race. Starting first human Clinical Trials of its single dose vaccines in the u. S. And belgium. They say trials will include significant representation of communities of color, also the elderly, those who have been affected by the coronavirus disproportionately. 20 vaccine candidates in testing, moderna probably furthest ahead when it comes to development and starting the makeorbreak phase 3 trials. President trump visiting novavax, pfizer as well in the race,