tv Closing Bell CNBC August 3, 2020 3:00pm-3:53pm EDT
tthew, thank you for your time s. let's take a look it at the markets. the dow continues up 250 points, 267 right now. s&p 500 up is 1ers up 1%. look at the russell joining in and european stocks were strong today. following on asia. so the world is moving up very nicely right now >> yeah. the apple will almost a $2 trillion company more on "closing bell. "closing bell" starts right now. thank you, kelly and tyler welcome, everyone, to "closing bell." i'm sara eisen here with wilfred frost. stocks rallying to start the month with nasdaq and growth stocks outperforming what is driving the action big tech apple, netflix higher. it's microsoft that is leading today. up more than 5% on the back of the potential acquisition of
tiktok positive covid-19 treatment news eli lilly starting phase three of an antibody drug. we'll get into that and we have better than expected manufacturing data which along with better than feared earnings is helping lift sentiment. we're on record close watch for the nasdaq 59 minutes left trade. >> we certainly are. it's up 1.6% lots to come on today's show we'll discuss the fast moving developments in the talk between microsoft and tiktok and what a mean would mean for other social media stocks with chris kelly. the plus, big testing companies like quest and lab corps warn of back logs and delays, we'll talk to gravity diagnostics ceo we have big earnings reports coming your way. virgin galactic, take-two and chegg and more we'll bring you the numbers as they cross and analysis as well.
let's focus in on the big stories. mike santoli tracking today's market action. >> mike, let's start with you. >> not far off session highs really not that far all time highs. about 3% below that right now. and we've kind of broken gently with this levitation we had today above the range we've been in for the better part of six or seven weeks. you know, we talked last week about how 3200 on the s&p 500 refused to break we had multiple days in the last half of july where the market just bottomed there and bought that seemed to show you that, you know, this side ways period netted out to the benefit of th bulls. will yes, 2300 is flattered by the largest nasdaq stocks. if you're an index investor, you don't care the prices count the average stock is a good deal below its former high. st so obviously still unbalanced market one that is working right now.
take a look here a little perspective of the run we've seen in recent years and when ned davis research calls the super seven stocks of the nasdaq and of the s&p 500. that is faang plus apple will and microsoft and tesla. the they now are tracking what this firm has put together as a composite of historical bubbles, the dow in 1929, nasdaq in 2000, nikkei in 1989 and gold in 1980. you see the synchronicity here all it means is that all these things equ things quadrupled in five years. i pushed back on this story that nasdaq is a bubble and pure speculation. they also are the most profitable companies in the market you do have to keep in mind how far we've come right here. what is interesting is if you only look at the nasdaq in 2000, the run we've seen recently doesn't come close to looking as if it matches up because that one doubled in less than a year
in the peak. >> this is really trying to find the negatives out there in the face of what is so positive clearly today in ermz of it momentum we're not seeing amazon. we're not seeing alphabet. the we're not seeing facebook take part in this today. is it perhaps more stock specific apple can you point to strong earnings, microsoft this merger potential? >> yes st i i do think there is differentiation going on they were both born in the '70s. this he do better in times like this >> apple and microsoft good for about 150 points on their own. thank you. mike santoli always with the age perspective. let's turn to washington president trump speaking with microsoft's ceo over the weekend as that company contemplates a deal for tiktok. the president weighing in again today. we have the latest >> the president's thinking on
tiktok evolved dramatically. on friday, there were reports that there would be an executive order banning tiktok, a move the president floated that night on air force one. but over the weekend, there seemed to be a change of heart with him speaking with microsoft's ceo and blessing the company's talks to acquire tiktok in a way that comported with the governing body. and speaking to reporters earlier today, the president said that he believed that an acquisition outright would be the most acceptable form of divesting tiktok and the u.s. should get a cut of the proceeds the. >> close down september 15th unless microsoft or somebody else is able to buy it and work out a deal, an appropriate deal so the treasury of really the treasury, i guess you would say, of the united states gets a lot of money
>> now that is just a little over a month from now. the president giving microsoft and tiktok to work out a deal. trade mark of the president set a line in the sand unclear whether that is a hard line or whether that is flexible guys >> how would the u.s. treasury -- how would the u.s. government get a slice of the deal price does that make sense >> well it hasn't happened before, sara, that is to be sure when what we don't know is if the president was speaking off the cuff as he often does in just, you know, merely musing something like that should happen because he is serving as the broker of the deal whether there is a way to structure it in this that case it is hard to see how ethically that would work out because it is the government that is mandating the sale for national security reasons and so for the government to then profit off that, it does -- it does make you scratch your head a little bit. we'll see if there is anything to that in the coming days
>> then the feature in the m & a tables for q-3 i'll be looking out once we get the banks numbers through for the quarter. pivoting as well we want to talk about where we stand now on the potential stimulus package and whether we're any closer to a deal or not. >> well, the negotiators from the congressional democratic side and also the white house are meeting on capitol hill right now going into the meeting. the white house chief of staff was asked what his expectations were, whether he had any expectations were held today n none yet both remained distant in their negotiating positions even despite the nakt in the lafact seen the eviction and unemployment protections lapse over the weekend they spent time on airwaves saying that the other side was negotiating in bad faith and without, as i said, i believe on this program on friday to you, wilf, without
a significant cave by either side, it's hard to see how this moves forward. >> as you said, we have gone past the expiration dates for the eviction notices and the $600 unemployment benefit, are there any other dates looming that could act as a line that they can work towards? >> i think the end of september date, wilf the one that correspondence to when the airlines and national security companies have to retain their employees until the there have already been signals from the large carriers that they're poised to do mass layoffs beginning on october 1st h they have seen such a remarkable decline in their revenue. i know that there is a concerted effort under way to try to figure out how to retain as many many of those jobs as possible the and then on the small business front as well, there was a temporary extension of the ability of small businesses to
apply for those loans if they didn't receive them already. pt that application deadline is august 8th so that is also quickly approaching. >> all right great stuff. thank you very much for that despite no stimulus deal, we're higher by 1% on the dow. 1.6 on the nasdaq. after the break, one "new york times" columnist says there is a better tlugs to the tiktok concerns than banning it or forcing a sale they explain why strict regulation could the answer next you're watching "closing bell" on cnbc. tiktok 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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welcome back dow is up 254. microsoft is a big part of that. it is in talks to acquire tiktok from bite dance after president trump said he would ban the app on national security concerns. but our next guest says instead of banning tiktok or forcing a sale, the u.s. should make a example of it through regulation kevin, welcome so it seems like it's not going to go that way microsoft confirming it's in talks for a deal here. but what did you have in mind exactly as far as what the government should do
>> i don't know if the president just isn't reading my column or something i mean what is happening here my take is that because the u.s. is in such a favorable position with negotiating with tiktok because of tiktok's chinese ownership, it has a chance to extract something pretty valuable here which is transparency instead of forcing a sale or, you know, banning the app altogether, what tgovernment could do is force tiktok to open source the key algorithms to audit the practices. at a tern point what we're scared about tiktok is a lack of information and transparency we can fix that by using this as an opportunity to look inside tiktok but to apply a more broad -- a broader framework to look at chinese owned tech companies but american ones. >> i guess many i question is,
is there any precedent for that? in china, they limited exposure from u.s. technology companies like facebook, for instance. they have their own rules. here in the u.s., when it comes to dealing with huawei, i mean, the instinct has been to stop it, ban it >> yeah. i think i understand the impulse when it comes to tiktok. the i think without drawing a false equivalency between what they're doing and what u.s. social networks are doing, i think there is a similar lack of information. we don't know how youtube's algorithms or facebook's or twitter's. wet should know more about how they collect data, what they do with that data, how they actually work the internal meccas of the algorithms i think tiktok could be a test case for a new kind of regime around these companies that could force them to be more
transparent. we put in place federal privacy regulation federal data protection regulation so this is sort of a squandered opportunity, i think, if all that comes of it is tiktok changes hands from a chinese company to the u.s. one. >> kevin, is it clear why tiktok is as dangerous to national security as say why huawei is? are there factors that apply to both of them why are we not saying we should be nervous of every single chinese company? why these two? >> i think the reason that tiktok is in the cross hairs right now is because it's popular. i talk to a number of security experts, people who have taken apart, you know, tiktok and reverse engineered it and what they found is that it's really no more dangerous than any other chinese owned app. it's subject to the same, rs you know, national security laws it can be forced to share data with beijing
what makes tiktok different is that tens of millions or 100 million americans are using it of it's a matter of scale. >> but i mean, maybe that should suggest why they are the priority to block or investigate or force a sale of but that doesn't mean we shouldn't do the same to the others if there is danger is real, i guess the added factor you could apply, no the that we should make foreign policy based on tit for tat actions, but facebook and others were gobanned in chi dlchlt so there is a precedent to retaliate. >> exactly the sucht has kind of its own version of china's great fire wall where, you know, we don't let in foreign own apps from our adversaries. they don't let in american apps. we're seeing this happen in india where they not only banned tiktok but other chinese owned apps i think we'll see a lot of this in the coming years.
>> finally, kevin, what do you think microsoft really is after here what do you think they'll do with tiktok? >> it's not clear to me. obviously it's a very fast growing social network they have a tremendous loyal base of users. microsoft obviously, you know, has more products geared toward a professional adult demographic than the teenage demographic that largely is served by tiktok this will be an interesting addition to the slate of products i also think the core technology, if they do end up acquiring not just the tiktok user base and the ip, but actually the algorithms that run the service that can be valuable in a number of ways. i think it's still to be seen what would and wouldn't be included in a microsoft acquisition of tiktok. i think they could get a lot out of it. >> kevin roose, thank you for joining us >> thanks for having me. of. >> great column. mike is up almost 5% today we've got just about 43 minutes left of trade.
the take a look at the major averages pt april sl having apple is having an impact today. s&p 500 is up .75% we're seeing strength beyond just technology today in places like health care, industrials, and financials real estate anticipate utilities at the bottom of the list. after the break, it isn't just microsoft andtiktok. deal activity is ramping up on wall street today with google and apple getting in the action. we'll have all the details next on "closing bell." as business moves forward, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers... and deliver our products.
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just pulled back a fraction. up .75% on the s&p 500 we got news crossing on the stimulus talks >> talks broke with no progress to report. just a few moments ago we saw the treasury secretary, the speaker of the house, the white house chief of staff and the top senate democrat all leaving the speaker's office after more than
two hours of negotiating they said the talks are done for the day. senator schumer said that over the past couple of hours they went through each of their proposals in detail explaining where each dollar will go. the proposal is $3 trillion. republicans is $1 trillion schumer says it will take a bit longer to reach the deal that he says the virus and the economy at this moment demand. when asked about unemployment and what happens to people who are unemployed and are waiting for some sort of supplement from the government, he said it's going to take a little longer. back to you. >> all right keep us posted thank you. m &. after showing signs of life today with a flurry of fresh deal announcements merger monday. marathon will sell the speedway dw gas station chain. it is the largest corporate deal in the oil sector since the start of the pandemic.
siemens healthineers getting into cancer care they're going to buy varia medical. and big tech, apple further solidifying the place in the payments world with a $100 million purchase of mobeewave. they can make payments by tapping one iphone to another. and alphabet buying adt. adt says the deal will combine the nest products with adt's installation and security monitoring services. adt up more than 60% at one point, i mean, yeah, you have apple and going until there we know those are the haves. but interesting to have a health care and oil deal. interesting that activity is happening despite the huge uncertainty out there in the economy. >> for sure. i think among other things, it says that companies have been sort of hunkered down for a few
months and most of them who are no longer really in survival mode, they're assessing what assets they have do they need cash? do they want to be open opportunist opportunistic through m & a. there was a drought in deal activity in the heart of the covid-19 shutdown crisis and that's probably getting relaxed a little bit right now also, capital markets are flush. the if you need debt to pay for a deal, it's there for you most likely i think it tells you it's somewhat normal level of risk taking on the corporate front. and along with those divestitures of companies that really feel as if they need to pad their balance sheets by selling something for catch. >> the move in adt is really striking i wonder if they should have bought the whole company the other point i'm going to make, mike, is that this morning with david faber, he said that it's not typical you see such a spike in m & a activity. we haven't seen whether the
spike in m & a is meaningful and will will continue or not. but it is certainly the start of something. and i just look at the investment banks they had killer numbers for q-1 and q-2 without m & a being present. if you ghet in q-3 and q-4, it may round off a fantastic full year for the investment banks if they can offset any of the trading activity that might plateau. >> kind of, you know, really busy on a lot of different fronts the capital raising side and restructuring and m & a. one of the reasons i think ken mueller is talking about you don't usually see these things happening in parallel is the central banks have short circuited the cycle to some degree yes, there is companies falling by the way side. they'll have to restructure. but on the other side of it, kind of keeping a lot of the debt markets afloat was definitely instrumental in getting companies able to do growth deals >> the other thing with the
microsoft tiktok deal potentially happening, it's not happened yet, so rare to have a deal that so widely leaked and talked about before it's happened and, yet, people still talking about onest reasons it may happen is such a cheap price you think typically if that had happened, the buyer would be like well now we put off everyone knows about it. the price is higher. it's a unique situation that it's still likely fit goes ahead to be a reduced price as opposed to a premium price. >> 45-day deadline and buyer that can't be outbid is going to forestall a bidding war in this one. >> right and the potential antitrust concerns with any of the other people that might have possibly be interested in a normal environment as everyone's pointed out coming the week after an antitrust hearing on capitol hill for this sort of broad area of the tech market. anyway, we have got, what, 35 minutes left of the session. we're up 1% on the dow more than that on the nasdaq set for a record close rapid reliable testing is one of the major factors needed to get
rhode island, hawaii, and massachusetts seeing more than 30% increase in in seven day average of cases alabama notching the highest positivity rate in the u.s. at 22% after adding more than 2,000 cases. internationally, the virus also causing more shutdowns the philippine capital of manila returning to stricter lockdowns. australia declaring a state of disaster necessity reinstructions including a nightly curfew and the w had ho saying that although there are many vaccine candidates, there is no silver bullet at the moment and there may never be on the treatment front, eli lilly is going to begin stage three trials studying whether they can prevent the spread in nursing homes. sara >> that's really important this is the antibodies that a lot of the doctors are excited about. they're being tested here. not just to treat the disease. the so can't come soon enough. time now for a cnbc news
update >> hello, everybody. dr. anthony fauci recommending that schools not be open in coronavirus hot spots. schools should be trying to return kids to the classroom but there are some areas where the level of outbreaks make reopenings not prudent in afghanistan, a prison that was tacked by militants affiliated with islamic state is back under government control. at least 39 people died including the assailants nearly 400 islamic state fighters were freed before order was restored in the ukraine, a bizarre story. a man entered a bank, took hostages and threatened to blow everybody up if his demands weren't met. he asked for a news crew to be brought in so he could air his grievances officers took advantage of the situation, captured the hostage taker while he sat for the interview. you're up today. that's the news update this hour sara, back to you. >> that's a weird one.
sue, thanks. fl. we've got just about 30 minutes left before the closing bell here's where we stand. strong across the board. dow is up 254. s&p 500 up poil po.8%. russell 2000 is the winner so far of the session up almost 2% still ahead, winner, winner chicken dinner we'll tell which you restaurant name managed to climb nearly 90% this year despite the pandemic's impact on the sector that is a hint for you plus, we'll speak with rick rieder we'll be right back. [squeaky shopping cart] [sniffing] is the salmon wild-caught? she only eats wild caught.
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welcome back check out big work from home and learn from home winners to day zoom, docusign chegg building. chegg's move, earnings report comes after the clo ez today all up 4 to 5% speaking of winners, shares of wing stop have handedly outperformed the market this year up more than 80% despite concerns about the pandemic and the impact on restaurants. we have certainly seen kate rogers has a look at how wing stop in particular, kate, managed to soar. >> hey, sara that's right it's a really simple menu and business model for wing stop which relies really heavily on carry out and delivery they got some 1400 locations around the country they do also work with delivery people like door dash and uber eats the company which is heavily
franchised saw the same-store sales cliz ose by 32% they saw sales increase to 64% to overall sales they're opening up new locations and seen momentum remain even as dining rooms begin to reopen in certain areas of the country analysts say this is really a stock here that is positioned for the holong haul. they work well in a faster and slower reopening narrative as you mentioned, wing stop is up over 85% year to date that is more than double some of the gains of the best performing peers in the restaurant space. back to you. >> huge gains there. kate rogers, thank you very much for that lawmakers have wrapped up their relief talks today with no resolution as unemployment aid and company liability protections remain major sticking points. when a deal does get done, how could the next round of government spending impact your portfolio? joining us, rick reider from global fixed income and also
blackrock oversees $2.4 trillio in assets. are we seeing a snapshot today and the last week in the way the market has more about the existence of monetary stimulus than it cares about fiscal stimulus or does the market just think that this fiscal stimulus bill will get done some day soon >> i think it's both i think the markets today are assuming there is going to be some fiscal stimulus exceeding a trillion dollars that's going to come into the system i think the market understand there's is som welcome whaback time for a cnbc update >> hello, everybody. here's what's happening at thi hour of u.s. dirict judge speaking out for the first time since a disgruntled lawyer of she is calling for protections that will help stop others from tracking down and atcking judges >> mson's death cannot be
vaine empowered to dsomething to help my brothers and sisters on the bench. now, more than ever, we need to s private. the. >> and in new yo in the 9/11 attacks. the leader of e greek orthodox church gave a blessing with new york's governor andrew cuomo also in attendance ure will. up next, getting back to work companies facing a big challenge as they start bringing empyees back inttheir offi diagnostics toake at home testing
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companies must figure out safely bring employees back kroger health has teamed up with gravity diagnostics. it's a small lab in kentucky for an at home covid-19 testing kit. kroger employees who feel mpms can request a kit, get tested and have results in it less than 48 hours of the lab receiving the sample gravity also works with the state of kentucky testing front line workers in hospitals and nursing homes and so far has run nearly 400,000 tests joining us now is tony recommending remington. i love the teaming up of northern kentucky company and, you know, cincinnati's kroger on testing employees. how is it going? how do you ramp that up even
more >> first of all, thank you for having me. i saw the local connection i appreciate that a lot. and that's really been ouremplo really in the beginning it was the rsink to normal. so we actually gone om 20 samples a day to over 9,000 on friday, july 31st was our largest day ever we quadrled our ace. we hired 150 people. and really done everhing we could to be a part of the sotion so how your buness different than, say, a qwest or a labcorp? >> that's grae question. i comment during this pandemic we're signal and nble and nextible i use the analogy of airlines, jetblue and southwest can come in and pick and choose the routes they select delta and american had to kind we just been really, really and making sure we don't xblo r
s. that is a difference between us d the big labs >> tony, what do people have to do in order to carry out the test at home and are you confident that they do whatever is required of them perfectly and that the results perfectly is. rate >> yeah. you know, i've always since day one i say always, it'seen four months i always said, you know, everyone's doing the best they can, sharing positive stors. everyone's intent is really good what i love abou >> well, i'm just curious, tony, if you're giving advice to other companies, i mean kroger is trying to figure this out. everyone is trying to figure this out as they bring employees back do employees have to stay home from work when they take a test and wait for the results because if it takes two days, isn't that a long time to stay home in addition to however long they may have to stay home to
get better >> yeah. you know, i've had conversations with every possible person i don't have the answers i'm not a phd or doctor. i'm someone that cares and is trying to help i think what it comes down to is having an algorithm that is consistent so social distancing, all the things we read about every day are really important then the testing methodology and, you know, choices you make is really up to the employer what i see is that if you're a manufacturing plant and someone is symptomatic, theymight take two weeks to come back to work they may not get a test for seven days and you los so i think there is value in getting that kit to the home when someone's symptomatic, keeping them out of the public eye. if you feel symptoms, instead of going to the doctor an kit in your home. so huge role for home testing again, we do all the icus and all the nursing homes and that's where we prioritize our capacity but i think the home testing has a huge role in getting america back to work and back to school
and back to sports and everything else. >> tony, thank you so much for joining us >> thanks for having me. take care. still ahead, the eviction moratorium is now expired and august rent is officially due. we'll discuss the paimct on the real estate market that's coming up next. skbrierk you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today.
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up next, a major real estate risk the eviction moratorium has officially expired with no extension in sight the big impact this could have on the housing market straight ahead. ♪ come on in, we're open. ♪ all we do is hand you the bag. simple. done. we adapt and we change. you know, you just figure it out. we've just been finding a way to keep on pushing. ♪ for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands.
august rents are due now, and the moratorium on evisas expired without being extended by congress. diana is here with more on this and how it could impact the whole housing market >> that's right, sara, and the extra unemployment benefits expired as well. without both, close to 30 million tenants are in danger of being evicted by the end of the year, and that is according to aspen institute. now, the biggest landlords are
offering concessions to tenants, but some are still seeing solid rent payments, likely due to that added unemployment benefit that is now gone one of the largest single family rental reets, invitation homes, just reported q2 earnings and said occupancy climbed to a record high. rent growth was also strong. but multifamily reet avenue lon b avalon bay reported a rough q2 renters are shifting from urban to lower cost sub markets or moving in with family. record low mortgage rates and the need for space are increasing demand for single family homes so you see that shift in rentals from the multifamily to the single family and going forward, we still don't know what's going to happen yet with any kind of renter relief and people are using that relief to pay the rent >> just quickly, it might be a stupid question, but even if the
moratorium has expired, what are the chances that landlords decide to continue to sort of let renters off making payments in the short-term. >> reporter: well, landlords are doing what they can for now but the mom and pop landlords, which make up about a half of the rental market, they have mortgages to pay they have property taxes to pay. they have to pay utilities so, they're kind of caught between a rock and a hard place. for the larger guys, it might be a bit easier but remember, what the republicans are talking about extending that eviction moratorium on properties with mortgages backed by the federal government, that is only about a third of the market, not even a third so it is not nearly the entire problem going forward >> diana, thank you. and that brings us to the final wrap-up of the market here where we saw a day where the nasdaq reaches a record high the s&p 500 closes within 3% of its own record high. mike, you know, the housing market, diana just painted the
picture of the have and the have not on housing as well and the renters market and these evictions that are coming. at the same time, new home sales are booming. it's, in a way, like so many other things we're seeing in this economy, if you're in one pocket of what's working, whether it's stay-at-home stocks or the nasdaq, it's so different. it's a completely opposite story than those that aren't >> also a reminder that there are losses accumulating inside this economy in various areas. so you see the residential reet stocks, way under their highs, 20% off their highs. they're going to be punished if there's not a fix on the eviction moratorium or something like that. it is definitely an uneven market we're not all kind of benefitting from the same forces, and i do think that's probably going to continue the real question is, have the huge tech stocks, do people think are good in any environment, are they getting distorted and are they distorting the market because people are kind of just extrapolating what they've been able to do in the last six
months fundamentally way into the future >> but mike, i guess the quick takeaway in the last couple of weeks is they pull back a lot less than they rise when there's bad news versus good news. >> that's what they have done, yeah, and really, the question is, you know, each time this happens, they get incrementally more expensive, they get incrementally perhaps more overowned and overbought i don't think it's at a critical moment right now but at some point there is going to be an answer to that question of can we really bank on these companies to keep earning at these levels >> you saw just there, nasdaq comp up 1.5% today, another record close for that index, strong gains for the s&p and dow as well. we're out of time. fast money starts now. i'm melissa lee and this is "fast money. tonight on "fast," a summer sizzler. stocks jump as we kick off a new trading month, the nasdaq closing at a new report high we'll break down what is in store for your money in august