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tv   Squawk on the Street  CNBC  July 27, 2020 9:00am-11:00am EDT

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l right, robert. thank you. we'll check back >> thanks, joe >> certainly something to watch and there are long-time gold bugs that were waiting a while for this andrew, you've seen them melissa. they know who they are and they're feeling smart. we'll see what happens looks pretty good on the chart, that's for sure. thanks, melissa, we'll see you tomorrow andrew, we'll see you tomorrow and we'll see you, "squawk on the street" is next. good monday morning. welcome to "squawk on the street." a big week peak earnings week and the third of the dow reports a fed meeting. big tech on capitol hill, our first look at q2 gdp. gold all-time high dollar two-year high the two-month move in the dollar
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is a second percentile move going back to '73. >> look, if you're a stock guy, you're thrilled because we are so tired of hearing on a constant currency basis. this time it could be very big earnings for a lot of companies overseas and procter & gamble and really, really well in this environment. j&j does really well the gold run is a combination of central banks printing money and also a pest misimistic view on is going to happen with covid we try ceos who are very excited about their vaccine the more people say this is going to end and at the same time we have a huge spring board because of all the money being printed. things will be good. david, i've never seen a moment where you have a coiled spring if good news happens, but if you don't get a vaccine, just get ready for another one of these things in a couple months.
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>> well, i mean, we're looking right now at the board there we're showing moderna and the progress, jim, that they have made towards a vaccine the news this morning, of course, is that company is moving into phase three. a phase three trial. 30,000 people will be a part of that trial that would certainly seem to be a continuation of what has been positive news from moderna and a number of other companies many far larger and more experienced than that one in terms of them moving towards a vaccine >> but i continue to be concerned of the length. you cannot cut short a phase three because you have to have enough people who are exposed to the illness to be able to make a case that this thing is better than the placebo and in order to do that, you have to have 30,000 j&j and 30,000 from pfizer and 30,000 from moderna.
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you're going to have a lot of people walking around trying to and doctors trying to figure out, geez, did they get covid or not get covid. it's not a simple case look at this, these people didn't get covid over a couple weeks. it will take a long time i don't know if people are really ready for how long it is going to take. >> of course, you have political influences, as well the administration would love to get this thing in the can. people like merck ken frasier saying undue pressure to make this thing happen. and did ask ben of moderna earlier this morning if the phase three could result in definitive results here's what he said. >> very possible it's already optimistic scena o scenario it could be november again, at this stage it's impossible for us to know precisely. just depend on the attack rate of infection
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>> right >> meanwhile, jim, he did talk about stock sales. i know you were commenting on that on twitter this morning he says it's not amendable because of company policy. nothing external >> well, also this thing called a government but maybe he thinks some sort of commerce clause. look, the government doesn't want you to trade. so, when you get to the period when you announce and everybody has the same information you cancel your plan plans can be canceled. the government doesn't want you to be out there doing anything with your stock when you're in a situation like moderna's in. you should not be able to get comfort from your counsel. but there is a view that the sec has, which is that please don't trade during these periods when you have some information. please cancel yourplan you get no comfort if you continue to sell if you stop, you get comfort it's about comfort i don't know how they feel comfortable given the fact that every time i pick up the paper it's more about them selling
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than what is going on with moderna. i don't like an idea that you can put any time frame on. don't talk about october say, listen, we hope to have something by the first quarter don't set us up. because if you have that, then people are going to say in the house and in the senate, look, we don't need to do another program. if we're going to get a vaccine by october, let's just let the dice roll. let's have the mask and social distancing play it out i think that's not a good, that's not an optimum situation. moderna setting the pace of overoptimism and overselling when i liked moderna at 20 but i think it's time to start saying nuthing and saying nothing, there's nothing wrong with that. just saying let's see what happens. but the people who set us up are the people who are going to most dislike come the fall. david, you know you shouldn't be setting people up like this. >> no, you've made the point that you think this company is, if i could say the words, a bit
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more promotional, jim, than you would like to see. but, to be fair, we have also seen pfizer, a company that i would not lump in as promotional at all feel like they're obligated to release patient studies that involve 48 people for their vaccine. so, i mean, there is such a need to know here that we do expect all the companies at this point to tell us anything along the way in terms of their progress of a vaccine >> how about j&j hopes to have results in the first quarter even though he's enrolling 30,000 this week, 30,000, including people who are over 65 so, why don't we just take it from the company that i think is the gold standard and now there will be people saying gold standard and j&j is getting good advice and big companies should take this view
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novavax for their earlier promotion is quieter to make me feel better about them i don't want false hopes ken fraser would say nothing worse than false hopes that's going to be one, there's so many pivotal days this week, carl, that i think by the end of the week our heads are going to be spinning. i mean, right. it is going to be -- >> no. you're absolutely right, jim the giants of earnings season as you see on the wall. obviously, the fed meeting some chatter that claims, if claims refuse to go down significantly or even rise for the second week in a row, does that cement the idea that the recovery is truly stalling out your point about congress being influenced by vaccine chatter is so apropos, jim. it brings to mind what mnuchin said on fox yesterday about the proposal that the gop now hopes to play in freont of the dems. les hear what he says.
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>> we do have an entire plan it's trillion dollars and let me just remind everybody that of the $3 trillion we already passed, we have about a trillion to a trillion and a half to put into the economy these are ervery, very large amounts of money working with congress to support this we picked a number that on the average looked okay. but what we've seen is now that we want to have the technical correction and we want to have something that pays people about 70% wage replacement, which i think is a very fair level so, it's not a fixed number. it's something that pays you a percentage of your wages that are lost >> jim, mcconnell is warning that a deal could still take several weeks. >> we really don't have several weeks. i mean, the big money goes away. the 70% is interesting nancy pelosi come back with 85%. maybe agree with 80. i think it's very important for people to recognize that the $600 was well in addition. 70% of the people thank you
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jamie diamine 70% of the people are making more than they were before secretary mnuchin sounds reasonab reasonable he is reasonable i think that's why a deal will get done because he's just supportive of the idea that people are out of business through no cause of their own. he has been sticking with the business interruption insurance model since the beginning, which is why we're going to get a compromise david, doesn't he sound like someone who wants to govern. right? >> well, he at least sounds like he has a plan. now, let's not forget. we're talking $1 trillion here the house has already passed a $3.5 trillion plan passed it and now the question will be, how do you meld these two to get to some sort of a compromise not a word we often hear the house plan included, by the way, $100 billion or more for state aid, state and cities. that's not a part of this plan
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it included $75 billion for testing as opposed to $16 billion in this plan remember, the administration went in wanting zero for additional testing so, we'll see, jim, and carl, where we end up here and the sooner the better. of course, the bigger question still is, will there be something that is done in the interim to get aid to people whose benefit is going to expire in a few days. and are still not in a position where they perhaps even want to go back to work. because let's not forget, everything we've discussed, of course, comes in the shadow of the fact that the virus continues to spread in some states at very high levels it's a good news for if you're trying to enroll people in a vaccine trial where you pointed out, jim, you're going to need some percentage of them to have exposure but it's not good news in any way, shape or form >> no. you know, carl, look, this is a week where there's too much at stake. when there's this much at stake, i find that we had our two down
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days in a row in the nasdaq. you're just going to have a big down day this week where i think the people say, look, it could be thursday night. when you look at thursday night, i mean, just way too much. there is i mean, they all get together. how could they be so stupid? i mean, look at this thursday night facebook, google, amazon, apple. >> i mean, don't they rehearse and coordinate i don't know if you saw right before we came to air, the journal said that google will keep their employees home until july that's people familiar and they're calling it the first major company to formalize such an extended timetable. >> you read that and kind of shocking and others perhaps not fully unexpected let's not forget, it was google that closed up its offices before i think virtually anybody else you could certainly say that they have a decent view and the
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ability to compile a great deal of data, don't they, in terms of trying to understand what is going on they have a lot of employees who are probably trying to plan for the fall or trying to plan for the full school year without fulling knowing if their kids are going to be able to be in school or remote but it is still shocking to see that a full year from now potentially not sending employees back unclear whether they will allow some to come back. i want to see what the actual memo says, but, again, preparing for the likes of another year, jim. a year from now being home >> i thought you're used to -- this is a situation where anybody who raised kids would know that google is cheating i expect search to go up in the fall because you can't monitor google cheating. really be interesting. i do think that the idea that keeping with my concern that the
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modernas of the world are setting us up. i'll take alphabet cloud numbers 50% or more that's thomas curry and people will say, wait a second did they take share? did they take from azure that's the narrative i'll put that narrative out. just kidding i'll wait for the facts. the facts could change but facebook, amazon, apple, that's a gauntlet that is worse than the movie "the gauntlet" with clint eastwood. a shot that one of those companies really disappoints >> right you add one more name in there and we get to what is roughly 22% of the s&p 500 index you know, jim, we started talking about gold at the top of the hour let me come back to that and the s&p 500 index, for example, which you could argue is no longer diversified in the way it is supposed to be, it would seem >> no, it's not. >> and then this idea that inflation is raring its head printing all this money is
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resulting in inflation even if you have a scpi is 2% or not and then back to gold and the gold mineers, who represent less than 2% of the s&p 500 >> ridiculous. if you had a stock up 52%. largest gold mine in the world is in nevada he pronounces it nevada, that's dr. mark briskal and i think it is still undervalued on a historic basis and how much money can you print. carl, we don't even care any more does anyone even care. $3 trillion, maybe $5 trillion remember when it used to be a billion they'd fight over. >> i do. the cover of the economist this week is just two words free money that's a globelial story, jim. >> how come i haven't seen any of that. it's crazy
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david, your friend just stepped down from walgreens. >> really. >> that stock can go up. he's been super. >> we'll get to that news. >> we'll get to that, guys obviously, we mentioned the earnings of the week starting out with hasbro and albertson's and we'll talk about that with the ceos later this hour price increases for amazon and american airlines and we'll get to all of it when "stock in the street" come backs
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i think we're going to david here on this walgreens >> yeah, carl, you mentioned it. let's get into some of the details. stefano pessina ceo for several years and the single share holder and remember it was boots alliance and then walgreens buying them and became walgreens boots. it was not a particularly strong performer. remember rumors about a possible lbo and didn't make a lot of sense given how much equity you'd need to pull it off. less and less with each passing day. but back to pessina. he announced his plans for a transition of leadership they will appoint a new ceo. no names at this point he's going to step up to executive chairman jim skinner a name we know well is going to step down as executive chairman when they
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find the new ceo to replace pessina who will become executive chairman stay on the board of directors and, you know, jim, what we talked about is the pressure the business has been under in any number of different ways and not choosing to go the root that cvs and mr. merlot have pursued, of course, in terms of aligning themselves with a large health insurer >> i wouldn't want that ceo job. i think this stock could jump just because someone with a more inventive strategy i mean, their strategy is look, we'll continue to be walgreens and people will continue to come they forgot that everything walgreens sells amazon has i think that a company like walgreens cannot compete with amazon during a pandemic and i don't think this will be our first pandemic good luck to whoever takes the job. i think the stock will deaf
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definitely go up because stefano to say the stock underperformed. is that fair that's one ugly chart. >> certainly some headwinds. let's not forget he owns 16, 16.5% of the company one of the richest men in europe although less so as that stock has declined, carl but they have faced a number of headwinds and it will be a challenge for whomever takes that role as ceo again, no date at this point that i'm seeing in the press release in terms of when he plans to step down other than they have initiated the search and the board of directors has begun that and he will, of course, step down or up, if you want to call it that to executive chairman when they appoint that new person to replace him. >> they have taken tough steps layoffs of 4,000 people. your mention of skinner reminds me of mcdonald's which happens tomorrow papa john's like chipotle
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announcing 10,000 hires. >> anybody who can stay in business in the fast food business would report a bad number i mean, mcdonald's, the world is their oyster right now because restaurants are going to go under. there's just very little competition but come the fall. if you look around in different cities, you'll see lots of restaurants are serving outside. that is not great during a polar vortex so, i think that mcdonald's will be good. domino's was very good some selling there that seemed kind of mindless chipotle was really good and i'm a big believer in this group the one i really like is wendy's which at one point was trading at 6.7 my wife is a baconator eater which is incredible because she still looks good you would think that could destroy anybody's looks. >> we'll see what those results
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tomorrow speaking of food, albertson's better than expected earnings in its first quarterly report we'll talk to the ceo about the results including digital sales. when you see the numbers, that does require a double take that's after the break experience the joy of a bigger world in a highly-connected lexus vehicle at the golden opportunity sales event. lease the 2020 es 350 for $359 a month for 36 months. experience amazing at your lexus dealer. it's a thirteen-hour flight, tfifteen 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 i'm 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. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪
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take a look at the dow premarket leaders here apple up 1.5%. they do remove it from the focus list and there's walgreens boots up as ceo stefano pessina stepped down and will resume executive chr. 'rba iju aoment.
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welcome back time for a mad dash so we can squeeze in about three minutes until we get to the beginning of trading for the week underarmor perhaps a feature today. they received a wells notice >> always suboptimal when they get a wells notice the sec saying, look, they are going to have to bring charges and violations of the federal securities laws meaning they did something wrong. in this particular case 2016 alleged channel and this is kevin plank and the cfo david
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bergman going to face this the company does report later this week and in my understanding of the case, the case does not involve revenue recognition. there will be no restatement, as i understand it. so, if you're selling the stock, betting there is going to be a restatement and they're going to have to pull any sort of financials for say the next year, that is a mistake. buy it on the strength or weakness of the fundamentals. a wells notice is very important, but i am saying there will be no sec decision to punish them to the point says kevin has to leave the company >> no, it's a good point we should explain a wells notice is when the sec staff says it is made a preliminary determination to recommend a to the commission that, in fact, an enforcement action be taken against the company. but to your point, jim, it's about pulling sales forward so you execute a sale earlier than
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originally planned and it does have the, obviously, it's done to make a quarter look better than might otherwise have but overall, it doesn't affect how many sales took place over a longer period of time. >> people have to recognize that they had this really long streak of up numbers and they wanted to maintain it. the sec may be off base that they decided to destroy under armour and lowered the numbers and it didn't get cold kevin plankt the absolutely wrong inventory for not being cold and he had an excuse. he was making shirts and pants and he was making shoes and some sort of weird thing you wrap around your chest to be able to measure how you're doing they were off the reservation. so, it really did hurt them. what matters is that they're in a very competitive category and they miss beating lululemmen and they couldn't take on nike
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i like nike here at 98. >> i like lulu >> yeah. carl, again, just back to the sec here you do have a chance as the company to engage them in conversation and say, no, don't do this. this is why. typically they do follow through with the actual enforcement action civil, carl, as you know always civil with the sec. >> it is important no reference it did not refer to justice. you don't want that. very bad these are all bad. >> right >> watch that, guys. obviously, watching under armour look at the opening bell and the s&p heat map jim, we were talking about the earnings calendar and how crowded this week. now word that facebook is moving from wednesday night to thursday night. >> i just got that, too. >> so, thursday. thursday we'll get all the biggies. facebook, alphabet, amazon and apple. >> they have to be down there in washington and zuckerberg has to testify and at the same time he's supposed to be on the call. but that does heighten -- look, this is one of those weeks where
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you have the fed on wednesday and it will be nonevent but maybe people will still be focused on it, obviously amazon, which will not guide good numbers because that's not their style. you have facebook which will say they have to spend a lot more money. you'll have apple which won't talk about 5g. it is really one of those weeks where you will not get what you want in terms of forecasts you may get what you want, but how does amazon say it will get even better? how? people didn't leave their home they're starting to go out a little more in the, i sense that this quarter is one where amazon has to say, look, we're doing really well. but they can't forecast bing and yet the price forecast target this morning is putting too much pressure on the stock. i don't like that. not what you want as a shareholder. >> goes to 3,500 wells goes to 3,600. even though, jim, as we know covid expense in q1 was $600
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million and the guidance for q2 is $4 billion. >> what is in this psyche? i don't know david, why do it tell me why you would do it? do you want to set up for a shortfall? what do you want to do when you do a price target increase based on nothing david? >> you don't want to look silly, that's all, i guess, jim >> you know, i mean, what's the fundamental? i mean, what is the multiple these days on amazon i don't know at this point does anybody know? what are we talking about here >> high multiple 160. 160 times earnings >> that sounds right something like that. >> apple continues to, yeah. by the way, those are gap numbers, too those are gap numbers. >> they're real numbers. >> it's important to point out we don't do it enough. so often we are using adjusting
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and apple reports gap numbers and that's the number, that's the multiple on that that said, of course, it still has a $1.62 trillion market value down from the 1.7 plus trillion it had recently you can see that at the very end of that chart there. what are your expectations when it comes later this week from apple. >> apple is not going to forecast 5g. listen to the solutions call probably clear they will have a very, very good product in the fourth quarter they are not going to give you that lifetime value of a customer that i've been trying to hammer on as i used to hammer and break out the service revenue but they will have good store numbers and that may be something to talk about. very conservative. worth it to point out two foreign companies and there's apple. tsm is an apple supplier so, if you look at that. you have to start thinking, hey, maybe that's good. overall tech sap don't forget very good cloud numbers. i mean, a lot of people just
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want to write off the faangs but some fundamental reasons to own them >> yeah, there are again, back to amazon, you're right, jim 150 times this year's numbers. about 75 or so times what is expected for 2021. carl just wanted to finish that conversation on the multiple. >> what are you going to do? paying too much for the greatest company ever built >> no. not to mention, carl, back to this idea of the s&p 500 index and what needs to be bought by money coming in and how much of the flow is really available you know, there is a constant buyer of these stocks and, again, back to that 22 or so percent that five names represent in the s&p that could have a significant impact, as well. just not as many available shares as you might think, even with a market cap with the size that amazon has. >> very good point >> and then you pile on the dollar effect. we started the hour talking about the dollar and goldman's take i saw last night, jim, the
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weaker dollar would force $300 billion in foreign buying to the point that foreign buyers would replace corporates as the number one source of equity demand. that's crazy >> he puts out these pieces on sunday night and they like replace ed sullivan show and the wide world of disney, for those of us who want to be dated but he works very, very hard you know, at one point we thought david in terms of the flow of amazon we thought that mckenzie bezo was going to sell a lot of stock apparently sold $400 million worth in january i remember the stock sunk on two things once when they got the divorce announcement and then the president who was interviewed and, of course, we have to point that out was attacking for getting too big a postal deal. whatever happened to that. the dollar, look, i love the fact that the dollar is going down because so many of our companies have had to report
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numbers. colgate reports on friday. they have been crushed by a strong dollar. just crushed i like colgate and my trust owns it the first quarter where the numbers will actually look like the real numbers instead of the constant currencies. i'm not saying our currency lkeg argentina. can i just point out it's been years since the dollar is going down that's just wrong. by the way, europe opening off of covid people saying that is a reason why the dollars go down. i'd watch that because spain is closing, again you can't beat this virus without a vaccine. or maybe multiple vaccines and i'm still putting my money on pfizer and j&j they're not the ones people are thinking about in the meantime, gold traded and people thinking that is the currency and i continue to think it's dooms day dooms day means that you can't beat the vaccine. >> right you mentioned, i mean, to be
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fair, though a lot of europe is opening up. is open and opening up, jim. germany is not backing off and france is not backing off. obviously, a lot of the asian countries are having no issues at this point. they talk about -- oh, yeah, surge. 100 cases. 150 cases. i mean, i can give you. >> you sound like the president. >> well, i mean, that's nothing compared to the 60,000, 70,000 cases that we're having in this country. yes. >> right >> you're just saying that as a fact >> i'm not sure. i don't know did he come up in the big interview? you know what the big interview is, right? >> which one the wallace interview or -- >> it was seminole like the way the president used to be during the apprentice. fun loving and interesting
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laughing a little. talking about how it's trading really well and making big money. 401(k) i don't know, david, i think you have to start focusingwe can't beat the virus what the heck is going on? it's an oddity, the world, david. i know we have to move on. can we just acknowledge that it's completely nutty out there. >> we do we do. i will, all right, i will get us out of this. of course, we have had, let's get to rick santelli. >> hi, david if you look at the data today, pretty solid the durable goods nonseasonabiay adjusted was more solid and super strong and whether it's the initial jobless claims which broke its run of lower weeks, but on nonseasonally adjusted.
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it was a different story nonseasonally adjusted data is getting an extra look these days because so many aspects of the economy cannot be adjusted to normal seasonal conditions if we look at a two-day chart of tens thursday night and friday morning around 3:00 a.m. eastern, you see that the ten-year note yield traded 55 basis points lowest intraday since the 9th of march. 9th of march low yield closed at 54 we keep getting ever so close and continue to see good flows and just a matter of time so say traders especially as we get more volatility showing up in the equity space get a two-day dollar index and many trader's agendas of late. we lost one penny since the last session you saw there. month to date not a good july for the dollar index and euro currency which makes up half the
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value and the story is a little bit about both the issue of shared debt and some of the progress they made on the federal type overlay in the european union is a big deal for the euro shared debt is a real big deal for the value of the euro currency and much of what we're doing and all the debt that is added on is a real deal buster for the dollar and, ultimately, not going to be good for the euro currency either but they're on a bit of a different timeline finally, let's open the chart up all the way back to the last time the dollar was at these levels and you're basically talking about july of 2018 and then overlay a gold chart on top and, obviously, gold is the second biggest story today as it gets ever closer to $2,000 and what you see here is how they so delinked as of late due to the coronavirus and that really is the big story. carl, jim, david, back to you. >> all right, rick, thank you very much. we're getting some conif confirmation on positive report of covid at the white house.
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>> that's right, the white house confirming that robert o'brien the national security adviser has tested positive for covid-19 the white house putting out a statement saying he has mild symptoms and has been self isolating and working from a secure location off site the white house says there is no risk of exposure to the president or to the vice president. the work of the national security council continues uninterrupted the white house says now, carl, the question here is going to be, when did robert o'brien who is an official with close contact with the president on a regular basis last meet with the president we know that the two men were together at southern command on july 10th and we know that robert o'brien traveled to europe in the middle of july what we don't know is when the last time the two men had contact and whether that was before or after this positive test we don't have a date yet on the positive date yet for robert o'brien the national security adviser. worrisome news given his close relationship with the president. the white house saying, though,
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carl, no risk of exposure to the president. back over to you >> all right thank you for that when we come back, we'll chat with albertsons and their first earnings report since going public a month ago a live inert view with the ceo shares down 4% as the dow is roughly flat on this monday morning. don't go away.
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supermarket chain albertsons out with its first report.
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stocks moving just shy of 4% vivek, welcome back. good to see you again. >> good morning, carl. good to see you, again >> comps up 26.5 digital 3x i wonder why you think the shares are reacting the way they are, certainly the guidance was not as specific as maybe some had hoped. >> it's difficult to give guidance in this environment, carl we have our earnings call next after i finish up here we'll be talking to analysts and investors throughout the day i'll have a better sense for what concerns, if anything, they might have but we feel incredibly good about the quarter. everything we've accomplished in this difficult time and those numbers and those numbers are leading. i mean, in the sense we're getting market share and getting great through the p and l. >> gross margins near 30 in a business that is famous for weak
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margi margins. are promotions essentially disappearing because of the stability of demand? >> well, carl, it was if you go back earlier in the year, fiscal year say march, april, may, we had to cut down those promotions because you just didn't have the supply you needed to do it right. you never wanted to disappointed a customer with a great promotion. now, as we went into memorial day, you bring back those promoti promotions as we get into the big holidays, we bring back those promotions which is exactly what we're doing. i'll tell you that in several areas, important areas like fresh, produce, meats, et cetera, we're starting to see more stability and supply and seeing more promotions in some of those and other areas that remain constrained like sanitizers and the supply constraints continue to remain and we promote less. but our principales through promotions >> vivek, jim cramer
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good to see you. we have the brands on the wall all famous brands. i understand you're taking share. if you're taking share, i have to believe a kroger, costco, target, walmart and not just mom and pop's and that will become the fall when more people are even not be able to go out because the tables outside will disappear that this could be a fabulous time for you. you're innenergized and you goth right merchandise and i think a lot of these companies are right for the picking. >> yeah, jim, you know, our strategy is very clear i'm so proud of the team that's executing so well. and you have to think about what's changed customers are eating a lot more at home. and when you eat at home, fresh food matters a lot you want the best produce. you want your choices of meat. you want to have everything in a store you can cook at home and that plays to our strengths. we put a lot of energies over
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many years building those capabilities and that plays to our strengths. i hope things get better for the country for the next several months but as long as people continue to eat at home, you'll see elevated sales in grocers like us. >> you know, vivek, i came out pretty strongly on "mad money" saying there is a mispricing here not a lot of pure supermarkets out there and we've seen kroger just explode because they've got fresh. you've got fresher and maybe it's just because there were two times you tried to go public, which wasn't you third time's a charm this could be radical in the price versus the competition >> i'd like to think so, jim you know, we believe in consistency and performance. and i take a long-term view in all of this. if we do the right things for the customer and keep our associates excited and happy and we do the right things for them, things will work through
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and one of the things you saw in our release is the flow through of our p&l and that talks to me about the health of the business not just the performance but the overall health of the business ecommerce is growing, too. the health of the business in the long term i feel it will get to the value that we deserve. >> well, vivek, talking about that long term, how much of what you're seeing now as a result of the virus is sustainable in your business after the pandemic passes i think that's got to be one of the key questions investors are trying to answer >> yeah, david there are elements of the business that are around performance. so, you know, it's hard. in this environment, you really cannot look at the absolute numbers and be comfortable you have to look at relative numbers. the relative numbers like market share and that gives you a sense of how you're performing versus the others
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that is good so, i take from that strategy and execution. let me talk a little bit about the long term. if you go back in history, consumer behavior shifting from in-home to out of home changes very slowly. it changed maybe 60, 70 bits a year of share over ten years.yes and when there's a sudden change like this, and by the way, that was without a virus, without work from home policies, with the best economic conditions we've had in a long time and so my belief is that the transition back to away from home will happen slowly. even if it happens at the rate it did in the past, there would still be more in-home consumption. unless something dramatically changes, that's our assumption >> co-vid-related expenses to protect the frontline, 615 million. is that a number that is repeatable quarter after quarter from here on out
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>> there are two thoughts to that expense one is what is called -- pay remember when there was a shelter in place when there was a shelter in place. people came to the store every day. we appreciated that, and we gave them extra pay to do that. there's other parts related to cleaning and protections, the plexi-glass. it's a one-time expense and there are added expenses for cleaning every day so we keep the stores incredibly safe for our associates and customers that will continue as long as we have this virus in place and as long as there is some degree of concern around safety. and as we get comfortable with safety, the vaccine, those costs will come down so we feel -- and we have the volume to support the costs as we go into the next several
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months >> finally, i'm thinking back to cpi last week. i mean, food inflation by some metrics, you got to go back to the 70s to see numbers in this ballpark is that something people should get used to? >> i think while is supply challenges are there, carl, i think you'll see inflation it is in different categories. now, in produce the inflation comes and there could be a great weather, a great supply of crop, and that would moderate itself but in general, i think the supply/demand issue, they aren't balanced well enough and so you continue to see some inflation over the next few months i'm not sure you want to say get used to it, but in the short-term, it's more likely -- you're more likely to see inflation than normalcy or deflation. >> nice to have you on your first report post ipo.
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thanks so much hopefully we'll talk about again soon >> thank you all take care. >> albertson's when we come back we'll talk to h hasbro shares about a one-month towhr this morning we're back in a moment
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on a day where gold hits an hu all-time high. gainers led by newmont close second, biogen back in a moment don't go away.
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(bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you.
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let's get to jim and stop trading. >> hasbro, a great company but co-vid problems in factories and people aren't shopping as much they do have a booming e-commerce business. i wouldn't write them off. a lot of people felt ohs were doing well because of co-vid they might have an up side surprise instead they went the other way. china factories are producing. 5 5% of their toys are from china. keep that in mind. mattel is on tonight barbie didn't do as well as i
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thought. liam griffin did a great quarter at skyworks, but it's never enough kevin mccarthy, we'll take the leader because we had nancy pelosi on. let's hammer out a deal so people aren't starving that's one of my predilections against starving >> and getting the republican proposal at 4:30 today we'll watch for that you've noticed on twitter, mlb season is looking wobbly with the marlins cancelled. >> i guess we'll wait for the phillies we won yesterday i guess we're 1-2 for the year that might be t. oh, one sad note i loved regis. i loved regis. he loved us, our network
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he will be missed. >> he will he was a former nbc page, and he would still even in recent years come to 30 -rock and help the page program celebrate anniversaries and pose for pictures an amazing man >> who was he that he never lost his humility what a guy he's missed, man he loved everything. he loved fast money. he loved the trade he wanted good stock idea. nobody like him. >> see you tonight, mad money. good monday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber. leslie picker is us on a where where we're watching the markets here financials are underperforming as we get a fed meeting in a couple days. mike san tolehelping raise the with so much coming at us. it's a matter of what we pay
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attention to >> just the setup is the nasdaq coming off of record highs looking like it broke stride a couple down weeks in a row raising the question as to whether the market has a little bit of a leadership crisis i think right now you'd have to say it's fairly routine. nasdaq this morning bouncing off of a level it's done so twice since june it's a short-trend up trend. if it pulled back 4% routine. the overall market, the take away is has absorbed it reasonably well. the dollar making dramatic moves to the downside. it's supporting assets of every time priced in dollars and earnings the reactions have not been good as everyone has been saying. there has been a sell the news effect going into this week if you look at apple, amazon facebook, they came into the week 7 to 10% off highs resetting the field
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position and the sentiment toward the stocks as we get into earnings season. s&p 500 is holding together. i think there's a math issue you come to with the nasdaq stocks continue to correct. sentiment, the other factor, i think it's getting a little bit overheated in pockets. overall not off sides to the bullish market >> i've been asking about this lately i want to continue i read things over the weekend just the preponderance of market value for the five companies in the s&p and what that's doing to an index that has been viewed as a way to diversify your approach to broadly speaking the stock market that may not be the case any longer
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i don't know that we spent enough time talking about what that's going to mean you referenced it a bit there in terms of what jpmorgan would have to do to offset a decline in microsoft >> there's no doubt you're getting a less diversified instrument when you buy the index. and i actually also know that anecdotely you're seeing a lot of attention in that in terms of financial advisers bringing up this point maybe it means you go to the russell 1,000 or do the equal weighted version of the s&p 500 if you think there's a benefit of diversification the equal weight as the big stocks pullback started to outperform, it's not a perfect one for one, but there has been a little bit of offset there i do think as long as treasury yields remain low, corporate debt yields remain low, it's difficult to call game over for this trade in secular growth stock. they get more expensive and it's interesting how you see when they become stocks trying to make their numbers on a
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three-month basis and they report them, and they're not wonderful and perfect, then maybe you get a backing off. when they're seen between earnings report as a claim on long-term cash flows in the an tract, they worked better. there's going to have to be a reckoning there at some point. i don't know if it's time to call that right now. >> all right mike, thanks we'll talk later obviously there's going to be a lot to process in the next five sessions watch shares of hasbro sliding after a miss on the top and bottom line. product shortages. the company did say it sees improved demand ahead for the current quarter. in a cnbc exclusive this morning the chairman and ceo of hasbro joins us welcome. >> thank you good to see you. >> jum was mentioning between the store closures and the supply chain, it seems like you think it's going to get better
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>> our supply chain was closed those are all reopened, and we're now supplying the marketplace. the demand has been strong up 18% in the united states. pos or sales to the consumer and globally up high single digits we have strength to strength from the games business and nerf business and other brands as well it's been a consumer demand story but clearly between store closures, what's going on in latin america and our supply chain, we've been challenged to meet that demand so our week supply and -- an opportunity now in the second half to launch our new initiatives and continue to drive consumer demand. >> we've talked about china risk for the tour business in general for a couple years now i wonder every incremental
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headline about a consulate or new visa restrictions, does that send a chill through the toy business how does supply chain get better in the wake of that? >> we have diversified our supply chain we're about 5 5% out of china and will be at about 50% by the end of the year. sk having said that, we have great content partnerships in china. our transformers tv series that's particularly suited for the chinese market usining chins characters launches next year. our business there was clearly challenged in the first quarter as our chinese licenses on brands like pep pa were not performs as well as we entered the second quarter, we started to see pos increase for the chinese consumer we're hoping to get back on track as we go forward
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clearly, it's an area where we have to be good partners and thoughtful about how we grow that business going forward. >> you seem optimistic about the third quarter and the outlook with regard to your supply chain and demand but how is that playing a factor with regard to some of the recent spikes we're seeing are you concerned we could see a repeat of the spring this year come fall with a potential second wave or continuation of the first wave and how would it impact your business >> the way i look at the third and fourth quarter is it's a reopening or restart beyond our big customers, walmart, target, and amazon open throughout and performing well, we have smaller toy specialists and other retailers just reopening. we see it as an opportunity to bring new initiatives to them in the second half of the year and have a good holiday season but, again, we continue to see
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the acceleration of e con including an omnichannel buying online and picking up in store buying online and picking up curb side. we believe those techniques are things the consumer enjoys and will continue to want to be involved with it if we were to see a continued challenge at brick and mortar retail, we could flex to have e con be a higher percent of our business given the consent to commerce that we've built over the last number of years as a digital first organization >> brian, it's david faber e-commerce right now is about 12% of total revenues. that channel you indicated you can flex to make it a lot more i mean, under what conditions if not now, when? >> so dafvid, it's a third of or
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total global business right now. it's up about 17% from last year we flexed up already it's about 12% in latin america. latin america doesn't have the e-commerce or omnibusiness that's going to continue to be a challenge for the latin america business, particularly in markets like brazil. if we look at europe, and asia pacific, 30% in the u.s. and third. and we have the capability to go higher, consumer, retailers see their business moving in that direction. >> all right i'm sorry if i misquoted the numbers. i was looking through the conference call there. >> that's okay we were just having that conversation with a few of our analysts clearly the concern in latin america, particularly in brazil has been the impact of co-vid everybody has been talking about. clearly we feel for people around the world and certainly for brazil who is challenged by the situation and our employees. we don't have the access to
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e-commerce and omnichannel down there. about 25% of retail in latin america continues to be closed around the world we began second quarter with about 30% of global retail closed. we're now down to less than 10% of retail closed globally. that's why we feel good about our opportunity in the second half we clearly have to catch up in production when massachusetts was closed for eight weeks, that's a third party factory that makes many games for the united states. games and playdoh are huge demand online sales are up. and pls is up. we have the brands with great consumer demand. it's just been a mismatch of being able to meet the demand. a weak supply of inventory and we destocked a and have to get back in with a third and fourth
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quarter product initiative >> what about product production what you're going to be able to do, and extension as well, movie theaters which are largely closed in terms of your expectations for 2021, i guess, when it comes to that. that's also important in terms of sales >> we've sent our content spend come down. our team has sold a tremendous number of shows. it's a matter of producing them. we're heartened to see the canada production restarted and uk production restarted. we're obviously hoping shortly for the day that the los angeles area production also restarts. we have a number of shows that are sold, and when we deliver the shows is when we recognize the revenue. so there will be some incremental revenues that will move from 2020 calendar year 2020 into 2021 as we deliver
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those episodes as we look at the things, we long for the day we can go back and watch a great marvel movie or hasbro paramount movie in theaters we need to get to that place, but meanwhile, we have a very robust tv business in fact, about 75% of our content in live action is in television and so we're selling shows to streamers, to linear and broadcasters around the world. >> well, maybe action figures of david and leslie and me would be nice down the road 123 days until black friday. it's 151 days to christmas do you see seasonal holiday being completely different this year because of everything we've been through >> it's a great question and it's exactly right it will be very different. just look at the fact that walmart is going to be closed on thanksgiving it's fantastic we're not going to be trying to
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drive consumers into a given retail store on a given retail day. we'll try to give them access to the best possible and innovative possible at the best possible price throughout seasons of periods over the holiday and that's really going to be the focus. i think you'll have an extended promotion period with multiple waves of different deals of the day or specials where consumers can get product online and pick it up in store to enhance the market basket once they get to a retailer by shopping in store. it's going to be a very different holiday season, and for all the good reasons >> great insight on the second half that's still to come. thank you. really appreciate it >> thank you, guys >> all right we're getting a market flash on rv shipments flashing moments ago. frank has that >> hv shipments in june with the highest monthly total since july
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of 2019. getting a boost from the covid-19 pandemic. people being wary of air travel and hotels smaller growing 13%. motor homes down 10 the rv association president says most buyers are new buyers. right now shares of rv makers going higher thor up 3.5% and camping world up about 5.5% following the best month for rv shipments since october of 2018. >> fra trend toward rvs, thank you. the ceo on what the future of retail looks like post co-vid stay with us look here, it's your very own all-in-one
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strategy as retail continues to get hard during the pandemic joining us now is paul trible. let's start with paul to fill us in on what happened from march until now. were you able to get the assistance you needed and was it enough >> yeah. i last time we spoke it was setting into the pandemic. things were up in the air. our stores were closed and wholesale accounts were taking orders our e-commerce business struggled. and it was a difficult time. there was a lot of unknown things but luckily for us we're 7% e-commerce business. what we did see is as people settled in they were looking for retail therapy or were willing to purchase outside of essential items and business started ticking back up even though it's challenging in stores and wholesale. we got government assistance it was helpful the ppp was not perfect but it was fast and i think we worked with a great community bank here in richmond. we were able to get that assistance and also to get a
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small loan both those things were incredibly helpful as we were transferring into what was next. and for us, luckily that's a reboost in e-commerce. for us we started making masks it's been beneficial for our business and keeping us going and keeping our factories open and we've gotten hopefully to the other side of what's an uncertain time >> david, how do you feel about the demand for bambas. you make socks i would imagine with people working from home they're looking for more socks for their daily routine. if v you seen that to be true and what do you expect the demand picture to look like in the second half of the year? >> great question. there's a joke going around our virtual office that socks are the new shoes because people are inside all the time.
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we're 97% e-commerce so our team over the last seven years have been honing their skills on optimization throughout the entire funnel so when we saw advertisers pulling out of -- pulling their budgets back from a marketing perspective, we were able to lean in and really capture some of that demand next, obviously, there's been a huge shift of dollars from retail to online, and again, because we're there, and we know how to kind of capture that demand, we've seen a massive increase in kind of our ability to acquire new customers but probably third and most importantly, we're not only delivering comfort to our paying customers. we're also delivering customer to our nonpaying customers in the homeless community we were able to leverage the giving network we've built over the last seven years of nearly 35 00 homeless shelters and organizations throughout the country to not only get socks
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and t shirts which we donate for one pair for every pair we sell. we were also able to leverage that network and partner with other organizations that are friends of ours like one that sells a direct to consumer brand that provides all natural cleaning products. we were able to donate sanitary items to clothing shelters we got sheets to homeless shelters who had to turn over beds faster. i could explain four or five other examples of how brands turnedtous and said how can we give back in a moment like this. we've seen a massive boon in our business since co-vid. we're not up nearly 100% from where we were at the beginning of the year, obviously we saw a dip like everybody else but bombas has been thriving this in this environment >> doubled from january. that's significant
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paul, we were speaking in the last block about just kind of supply chain issues and how those have been disrupted due to co-vid have you experienced that with regard to your inventory and how are you managing that in the current environment? >> yeah. i think we have. i think most all apparel retailers you stock up in the january and february period. you sell through that during the spring and the summertime. and then you build up getting into the holiday season. when co-vid hit, people were full of inventory with less places to sell it created a gap it has for our business. we were able to be more targeted and cut back a little bit on some of our inventory. i think the real question is what happens for the fall as people get into this there's a six to nine-month cycle. it's hard to see what demand looks like for the fall. are people in a position where they have large inventory and where does it go i think one of the challenges or at least one of the things that came of the great recession was this discounting culture and the
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idea of third party groups and who would sell things discounted, overstock product. are the margins around are businesses going to be able to have the third party outlets? i don't know for our business, we see the writing on the wall early in the year as we have factories in northern italy and small production in china and we were able to cut back on some of that and be focussed where we neede to we do a lot of dress shirts. that's 50% of our business but saw this is going to be a casual world for a while and we need to be operating in that although our dress shirt sales are down, our casual shirts and polo business is up over 100%. how can we change and adapt to style where we are and meet the customer in their need >> and david, speaking of discounting, you sell a premium product. $20 for a pair of socks. how do you see the state of the consumer right now and their capacity and willingness to purchase something like that,
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$20 for a pair of socks? >> quick correction. our average selling price point is around $11 and $12. they go up to about the high end is 20, 22 for wool ski socks pretty hyper focussed in a niche category but again, what we've seen is that with people staying home more, they're investing in comfort. we've seen way fair has done incredibly well. people investing in their home because they're spending time there. similarly, we're finding our customers for 50 to 75 can buy a brand new sock drawer and then a couple t shirts from us and feel comfort in their feet and their shirts every single day. and that's the type of thing that i think for -- we're not selling a $30,000 car. it's an incremental increase for people spending $15 to 20 a year
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on 10 to 12 pair a sock are spending $50 to $75 a year that cost is delivering far more incremental comfort in terms of value for them >> and even more customers if they're like me and they continue to lose them all the time thank you, paul and david, for joining us and sharing your perspective during these unprecedented times. >> thank you >> thanks for having us. time for our etf shot light. looking atticer bb 8 it's up about 2 % this morning double digits since the start of the year more on the asthphe ree trial of moderna's vaccine straight ahead. stay with us
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good morning here's your cnbc news update washington d.c. has prepared for john lewis's final trip to the capitol. his body is expected to arrive from montgomery, alabama in the next hour. pallbearers and the honor guard practiced carrying the casket up the stairs on sunday you can go to cnbc for more on the celebrations of his life and accomplishments. >> the marlins had players reportedly test positive for the covid-19 virus the team is waiting to fly home
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from the first games in philadelphia and boris johnson is launching a campaign against obesity. he says he was out of shape before his fight with covid-19 and obesity is a complicating factor for the coronavirus that is the news update this hour >> i was overweight. i'm 5'10", and i was too fat >> that's our news update for this hour. "squawk on the street" continues in a minute. ities showing suppot in their own way. our way is massmutual healthbridge, a free life insurance program just for healthcare workers fighting covid-19. ♪ so to all the healthcare workers on the front lines, thank you. ♪
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big tech hearing in front of the house panel originally scheduled for today is moved to wednesday. ceos of amazon, apple, google and facebook all will be testifying this as lawmakers continue to talk about the idea of breaking up some huge technology companies. former sysco ceo john chambers
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is our guest now john, always good to see you i'm sorry you're not visiting with us at the new york stock exchange as we've done many times through the years where you often bring your many flavored crickets. i'm not kidding, of course >> yeah. i know, david and carl, and leslie, it's a pleasure to be with you all you've always been so much fun to interview with. i love to get into exciting topics and i'm currently wearing jeans to the new york stock exchange indirectly. >> we want to talk about big tech i'd love to start off on china you have a lot of experience with them. given the increasing tensions between china and the u.s. and everything we're seeing, what advice would you give to a company that does a lot of business in china or relies on a supply chain from that country >> a great question.
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i was with lang laboratories president of china's classmate at their universities. i understand the market well and china during the time i was at sysco, 1995 for the decade and a half after that always created a win-win environment. usually pretty fair. it's developed into win-lose advice to my own startups, i'm staring clear of china for you for companies that are doing business there, be aware of your intellectual property issues it's a temptation to say eve an small slice of what will eventually become the largest economy in the world is important, but you have to look out for our interest long-term i believe eventually the u.s. and china will get it together i think it's going to get rougher before it gets better. the intellectual property theft. the issues on security are increasing dramatically. we've all seen out of the
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universities and seen the most recent tit for tat movements in terms of embassies. >> your expectation is not a good one at this point you would advise companies to steer clear. how long can you steer clear of what you said also will become the largest economy in the world at some point? >> you have to make our decisions for the long-term. eventually there will be a win/win situation. i believe we had to confront this situation the relationships will never be the same, but if i were modelling it, i'd say you'll see the evolution over the next year it will be a new relationship when we come back. important to both sides, but i want to caution people don't lose track of short-term benefits and long-term implications to your company >> john, david and mike were talking about this earlier kind of going back to the theme of the five largest tech stocks and the concentration in the s&p 500. they represent 2 2%.
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the five stocks are up 35 % this year whereas the remaining 495 stocks are trading lower down 5% for the year so as we look ahead to some of the anti-trust discussions taking place, do you think that there's a potential risk for the overall s&p 500 index even if investors aren't heavily invested in tech, they are through this index do you think those considerations should be made as lawmakers look to potentially break up big technology companies? >> i'm a believer that if you look to the past, you get an idea of the future i've watched over the years in terms of geographies that had the toughest anti-trust movements, regulatory issues, et cetera like europe never developed large tech china is clearly being aggressive in this area per our earlier conversation on it you've got to be careful of the unintended consequences. when you think about large cap,
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at times we say if you charge too much you're gouging. if you charge too little, it's predatory pricing. if you charge in the middle it's collusion. often the unintended consequences could be dramatic amazon has helped dramatically during the pandemic distribute goods. if you believe that the tech indexes will outperform traditional indexes by two to one over the next decade, that i do, and you watch what's occurring in the market, we have the unique position in this country to be the leader in tech with five major horses here and to your point, a lot of americans have done well in terms of the stocks. i think it's important that the government look at the regulatory issues here in a normal sense, not just going in with an attitude that big tech is bad and there's going to be a balance. both the democrats and republicans send a message to silicone valley saying if you don't adjust or work with us, we're going to be coming and you probably won't like the outcome. i think it's going to get bumpy.
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big tech is the best i've seen at organic growth. the best normally as you get bigger you slow down on your innovation, et cetera the big five haven't done that at all they've been tremendous on innovation in terms of acquisitions, they've also done very well there. you might see some regulation more careful looking as they do acquisitions as you watch what's happening, you begin to realize that we do need big tech companies. there's a huge advantage in size and economic power and there needs to be a balance between citizens and the government and the tech companies hopefully we'll through that without doing dramatic damage to our economy. >> on that point on the size of the big five and the way in which they influence the indices in the stock market, there's more and more chatter about
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metrics that argue they're big for a reason debt load, cash availability, and that leads tom so believe that the outperformance relative to the rest of the s&p could get even wider i wonder if you agree with that? >> i do, actually. i think they have huge advantages one of the counter arguments to what i said in terms of being careful about how you address this is even some of the best venture capitalists view if you take on one of the big tech companies in theory, it's really important to -- they decide they want to lead, it's almost impossible to beat them. there is a counter argument about innovation and scale, and this is where i think we always as a country overcorrect we go too far to one side and swing through the middle and go to the over side hopefully there will be a middle level position here just like i hope we will in china. >> you mentioned innovation. you're driving it.
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the companies you're advising and investing in intel getting sh lacked after having to delay the ramping up of a new chip. what are your thoughts about that company as it relates to innovation and execution >> it's hard for a company in technology to stay in the leadership position for more than one or two decades, and intel has been a great model for american high-tech for many decades. it also is a worry that if we tend to focus company's attention on this quarter and this year, we can get away from making the investments that are three, five and ten years out. that's why i see a lot of large companies looking to small companies that are able to bet ten years out on technology and direction and partnering with them in ways they have not the bigger picture, i think what you saw at intel is dangerous for the u.s. we're giving up our leadership
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to manufacturing outside the u.s. in a core kpcompetency tha' important. if you believe high-tech will outperform traditional business as every company becomes a technology company, you're going to get disrupted my worry is we're going to wake up and day and say where is our core manufacturing capability in areas such as semi conductors. so i think it's a challenge. i think we've got to balance the long-term interest of shareholders and the short-term interest in a way that allows companies to be more innovative. now, every time this has occurred, we've always seen a new crop of young companies emerge i've never seen the innovation engine move faster than the last four months. i didn't expect it i thought it would be like twun where 50% of the starbucks are
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wiped out or 2008 where it was 30%. this time as you saw from the earlier guests, you're seeing innovation anything that's physical or virtual, retail, movies, health care, education. it's going to transform every industry your next big five high-tech players will be in industries that don't collide directly with the big five, but as artificial intelligence is a big topic and cyber security breaks away, next generation supply chain, i've seen the interest in my startups in these categories go off the chart in the last two months and so when you see that occur, it says we're going to see a new generation of innovation, and i think a new generation of technology leaderships but in different places than the current leaders. >> john, always good to end on a positive note. thank you. and thank you for being with us. look forward to seeing you in
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person again soon, john chambers >> it's a pleasure as always have a great day thank you for the questions. john, thanks so much speaking of faang. one of the reasons the market is hanging on is faang is working along with optimism about a rescue relief package from the gop. phase three trials at moderna beginning. dow is up 135. hey frank, our worker's comp insurance is expiring, should we just renew it? yeah, sure. hey there, small business owner. pie insurance
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earnings season, and we show top tips to watc find out more on trading nation. more squawk on the street coming up
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our next guest manages over $100 billion for the minnesota retirement system. welcome back good to have you >> good morning. how are you? >> good to see you we've talked about your investing strategy in the past it's pretty simple, long-term. you tend to buy domestically, i think, as i recall i wonder whether or not you're watching the dollar the next couple months and if it's making you question whether or not it deserves to be pivoted at all to outside economies outside the u.s. >> well, we don't invest exclusively in the u.s., but we've been investing outside the u.s. for the last 25 to 30
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years, and during that time period we've actually had higher returns in u.s. bonds than we have had in our international portfolio. despite the fact that over that time period expected returns invariably for the long-term period have consistently favored foreign stocks there have been a few periods where non-u.s. stocks have outperformed but very few you know, this could be one, but as nine u.s. economies flourish, u.s. economies may also benefit and they derive a significant portion of their revenues outside the u.s. in the past few weeks we've noticed that the stocks europe 600 appears to be less concentrated than the s&p 500 is right now. the s&p 500 has about 35% of its
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exposure right now shared between technology and communications relative to 13% for the stocks but given valuations in tech, this could provide one of those short-term near-term advantages to the stocks, but my gut just tells me that that's not going to be sustainable. you know, lastly, when i look at emerging markets, there's been phenomenal growth in a lot of those regions over the past two and a half decades, but it doesn't seem as though there's a consistent reflection in public markets. so there tends to be a disconnect there i often wonder if that's because there's still a lot of companies that are small, private, that
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aren't listed, and so for those of us who are investing primarily in public market securities, that could be it as well >> how are you handling and processing the binary nature of a vaccine within, say, the next 12 months? and i wonder whether it's the number of possibilities we have that one might work makes you more optimistic. whether it's stimulus in the meantime that makes you more optimistic or anything else between there. >> well, at this juncture, i'm just not certain how optimistic i am i mean, i continue to hear there's a vaccine around the corner, but when i was in business school, jane lori at chicago told me markets bore uncertainty. we have the pandemic
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we have social unrest. there's political turmoil. we have trade questions. you know, there's unprecedented stimulus being thrown at the economy which makes one begin to wonder if there might be something to modern market theory that expels by some but i still kind of am in the camp that i anticipate we're going to have a little bit more volatility than we've had. i'm just having difficulties with the disconnect we're seeing we've got huge unemployment, but markets while i don't think we've going to revisit the lows, i really question how we can be back to all-time highs in this short period of time with all the uncertainty out there.
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>> yeah. good reality check given some of the uncertainties we face in the second half. we appreciate that very much talk to you soon >> okay. >> and carl, all those uncertainties that he alluded to over the resurgence of new of covid cases is sending gold prices to an all-time record high the commonwealth bank of australia says covid is driving that (upbeat music)
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chip stocks on a tear today. lead by gains in taiwan
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quk tr.ucto "sawonhe street" is back in two minutes hey! lily from at&t here. with some helpful tips. tip #1: you can currently get the amazing iphone 11 for half-off on at&t, america's fastest network for iphones. second tip: you can put googly eyes on your stuff to keep yourself company. uh for example, that's heraldo. he's my best friend. oh, sorry nancy, i forgot you were there. get the amazing iphone 11 for half-off on at&t, america's fastest network for iphones. now you can trade stocks and etfs for any amount you choose instead of buying by the share. all with no commissions.
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experience amazing at your lexus dealer. welcome back, we have quick updates on the major league baseball season. 14 or more mayers on the marlins tested positive for covid-19 virus, and now the phillies who played the marlins, their game against the yankees tonight has also been canceled carl, anthony fauci warned it would be hard to get the season fully under way and it appears they will have a few hiccups
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>> yeah, he said try to wrap it up before october because of the transmissabili transmisability. we'll see if the meeting create i any news later on today. >> of course there are no -- nobody is in the stands at the games, but it is a function of the clubhouses, the dugouts, and everything like that a vaccine meg terrell explains >> with asthma, food allergies, and a heart condition, one
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doctor says he does everything he can for his health. >> i'm leaning towards getting the vaccination. >> but he knows many in his communication may be hesitant. >> a trust issue is the key factor here. >> covid-19 disproportionately affects communities of color >> we need to be incredibly mindful reaching out to the communities hardest hit to ensure that we're getting individualed as heightened risk. >> the covid-19 prevention network is prioritizing communitys hardest hit by the disease. essential workers, the elder willly, people with other health
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conditions, experts say it requires building trust. >> this is part of a broader issue of medical mistrust which is entirely justified if you go way back the terrible abuse of slaves, to others, what happens is this is in the lore. >> and the early vaccine trials did not include many people of color. 40 of 45 in the faze one trial were white and oxford which has parter inned wipartnered with astrazenica. >> doctors leading the trials have this in mind as well.
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>> we're watching out to african-american churches and we're going to be targeting warehouses and meat backing plants and places where there have been large outbreaks. and where we're more likely to encounter people at greater risk >> inclusion, experts say, starts with health care providers. >> the number one reason that black and brown people don't participate is because no one asks them. that is a provider issue they will miss out on something that could be live life saving >> moderna says they're following it so closely and if they're not meeting diversity goals, they will stop work at that site.
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>> a fascinating look at that trial. >> good monday morning, everyone present decent market action you have fang being pretty supportive here. we expect a relief package proposal this afternoon. optimism over mnra facebook, alphabet, apple, and amazon not just here this week but concentrated into thursday night as that big tech hearing creates scheduling difficulties. >> even just today we have s.a.p. up with of the easy stories to overlook is s.a.p. spinning out


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