Mark Cubans Tips for TikTok Traders; Dr. Scott Gottlieb on Covid Testing


Today every answer matters more than ever before, because whether it's about health deliveries or finance. Some things just can't wait. That's why IBM is helping. Businesses manage millions of calls texts and chats with Watson Assistant. It's conversational AI designed to help your customers find the answers. They need faster, no matter the industry. Let's put smart to work visit. IBM Dot Com Slash Watson Assistant to learn more. This is squawk pod. I'm CNBC producer. Katie Kramer Today on our podcast Kovic case numbers climbing in forty states Dr. Scott Gottlieb former FDA cheese on what we missed before. The pandemic are a lot of gaps in our preparedness ministers. Sort of new problem this has been building over many years. There's still not enough of we haven't invested in infrastructure, so we don't have the ability to surge testing capacity in this country took US minds and minds to get where we are, and we still have enough testing and Mark Cuban's tips for day, traders, patients and historical perspective are key to success. I think we're very similar to what's going on in the one thousand nine hundred. Look at my portfolio have to keep reminding myself that the Internet bubble last multiple years. It's Monday July twentieth twenty. Twenty squawk pod begins right now. Good morning, everybody welcome to Squawk box on CNBC. I'm becky. Quick along with Joe Kernan and Andrew Ross Sorkin here we go. The vaccine. News, do sure this is important, though and it could be one way or another. We're expecting more detailed results or results from phase one trials of the vaccine candidate. The Oxford, university and Astra Zeneca Candidate, it's already they've already begun large scale face three human trials, but we still don't know yet much about the phase. One results which would show whether it's safe, and whether it includes an immune response, and this is very prestigious journal results are being published in the Lancet the British publication. It's GonNa. Come out some time today. Huge question here's. A scientist, who's actually published in the past on this, would you normally publish your results in one of these publications and make a big deal about it was a failure, or do they only do that? If it's generally good news, or wouldn't you generally just put out? Publish on. It's an important. You'd have to do it either way. If it really sucked. He'd still have to put out. Obviously to publish it and put it in a big. Public Buddy. No, that's the way it works so otherwise. Positive things people would repeat the experiment or something like that. It doesn't work you. Think it's. It's not to take I guess this is the one eight leading candidate along with. Their four five leading candidates with this is definitely you know top through what I didn't realize. There's about two hundred candidates out there. For one of these vaccines and obviously only a few of them are going to be brought to market, so these analysts were saying. You've got a lot of these stocks that are incredibly overvalued at this point, because the market is played up every single one of them is come down it great to get multiple ones of these that actually work because he's have such a huge global population that needs to be vaccinated. You would need to get that out and get. It produced very quickly, but you're not going to get two hundred of them. And that was just their point looking through some of this. We have a lot of hopes riding on this. Every company's going to be successful. I saw another anecdotal story about a sixty four year old God at died like two days later was awful. Read about this can I just say one positive thing I heard over the weekend watching the Memorial Great Jack Nicklaus Tournament. In Columbus Ohio, at Muirfield Jon Rahm number one in the world now Jack Nicklaus, and his wife both head cove it, they disclose. Both head Kovin, Jack? Jack is eighty his wife. She's quite eighty but similar interests. She was symptomatic. He had a sore throat and the coffee a week and it was so. Blessed exactly anything we were very lucky and everything else, but you know for for I don't know if we hear about those stores I mean. It's tragic and there's. Just read about a sixty four year old God. Doesn't happen with flu normally obviously unless you've got. A CO morbidity. Just, hearing I was like Jack Yes. You know eighty no problem with covert so. We want to have him around. Obviously for for as long as we. As we possibly can. Tough course showed its teeth very tough. An update now on the coronavirus pandemic by the numbers, the US case total has passed three point seven million with one hundred forty thousand deaths in this country from covid nineteen. Florida reported more than twelve thousand cases yesterday. The Fifth Straight Day above ten thousand over the last week around eighteen percent of all tests came back positive and Florida, the state's Governor Rhonda Santa's urges perspective. I messages fears our enemy. Understand I mean there's obviously things burnings are doing that work doing whether it's work with hospitals whether to some of the other stuff but there is at the end. I think the other thing that gets missed with the cases is the sheer number of people who are testing are sick, because I think most people see you know cases and they're like they think that that many people are in the hospital or we're going to go and the way this disease is largely particularly repeatable under six knee, either minimally or a symptomatic. And Ohio Governor Mike. Dewine who has thus far resisted calls for statewide mask order warned over the weekend, his State with seventy, three thousand total cova cases could be going in the wrong direction. When we reopened put in place, we were on the first put in place very sophisticated. Policy about how you and that has included a mass requirement for every every employee. As far as customers now coming in as you pointed out weird sixty percent frankly were. We've seen that. Go Up as our counties of turn red. We're going the wrong way where crucial. Time until this week you may see. A lot more counties under under that a mass requirement, so we certainly would not rule out doing. Statewide. These numbers seventy, three, thousand three point seven million can boggle the mind in his latest OP. Ed In the Wall Street Journal Former FDA Commissioner Dr Scott Gottlieb dives into the disagreement on who reports those numbers, and when between the cabinet, Department of Health and human. Services and the Centers for Disease Control Gottlieb says the few demonstrates the inadequacy of US efforts to prepare for endemic. Here's becky doctor. Thanks for being here and it's good to talk to you about this new ad that you have out. Becky. Let let let's dive into this because this is an issue that we discussed a couple of times last week. Why these two agencies are feuding what they're doing about it how they're collecting information and I think probably pretty importantly what what this means overall in terms of the strategy we take. In the months to come if things get worse here in the United States, are we prepared? This has been a long-standing. Dispute or discomfort between the administration and the CDC from what I can glean talking to people on the inside. There's been frustration with the CDC in terms of the inability to get timely information inaccurate information out of the agency. Some of that's legitimate. Probably some of its you know little stretched, but the final Straw came last week when the administration some administration officials had asked to see, give them data on age breakdown of people being hospitalized South Dakota and CDC told them that they wouldn't be able to provide that information until late August or September and that that's. That's when the decision was made to more fully take away. data aggregation from CDC CDC would still be involved in analyzing data, but they'd no no longer be the lead agency collecting the data I still think preferable path would have been trying to support the CDC I think the city should be the lead agency, but clearly we need to invest more in their capabilities to both collect and disseminate information. We're at a point right now. Where some hospitals literally faxing in information to the agency, the agency needs to rebuild his data systems and and to the agencies. Credit! They've asked for resources for many years to do that. And so this has been something that's been recognized for a long time. The Washington Post had an article this week, and said the White House is seeking to block billions of dollars for states to conduct testing and do contact tracing and then also additional money to go to the CDC, and and to be used. Used internationally to try and fight this pandemic The Post said that this is creating problems even with Republican senators at this point. What what do you here on this? What do you think about this? And just in terms of what should be done with the testing policy? Should that a nation and national policy or should that be something where the state's picking up themselves? Themselves talked to people on Capitol Hill and I think funding was going to be there. you know Congress is going to provide that funding including Republicans I talked to Republican staffers on the Senate side I think in part this this for flex some of the frustrations. We talked about the outset I think the White House and others need ministration. have some frustrations. Frustrations with the CDC and don't WanNa more resources and SORTA double down on agency's role right now, but it also reflects an inability to come up with a plan to really reform the agency because of funding bill would be a good place to try to come up with a different approach to how CDC engages on these issues and they haven't been able to do that. That obviously something hard to do in the setting of of a crisis to try to rebuild aspects of an agency that have been long ignored, but that would be probably preferable way to go you know. I just think it reveals that there are a lot of gaps in our preparedness. Mrs. Clinton sort of new problem. This has been building over many years and. And that was sort of the point of my op Ed this morning. The intelligence community has been recommending in public documents for many years that we treat. The risk of pandemics as a national security threat on par with the reds from weapons of mass destruction, cyber attacks, and terrorism and we haven't done that. We haven't invested in infrastructure, so we don't have the. The ability to surge testing capacity in this country. It took US months and months to get where we are, and we still don't have enough testing. We don't have the domestic capacity to manufacture vaccines and biologics at the scale that we would need adding into the fall. Particularly the biological drugs, the antibody based drugs, and we don't have the data systems. We need to both. Both collect and track the EBBS and flows epidemic. My colleague at Johns Hopkins. Caitlin, rivers has proposed the idea of creating a national tracking service from the national weather forecasting service that would be in charge of collecting and disseminating information and analyzing it. We don't have that kind of capability here in the United States. Scott could prepare for the Oxford Astra Zeneca What do we know so far? What? There's so many just want to know exactly. What is the mechanism Agana of this one? This is not a messenger Aren a one, is it? Is this a? How does is this a more classic one or Adenoviruses? Which one is this? It's a semi and adenoviruses. and there's been data released on it already. That was encouraging. I think with all you know what I would call a little bit of hype heading into the announcement, saying most people probably expect results to be positive. It's just a phase one phase two study Richard. Richard Horton. The editor in chief of the land, put out a very unusual tweet last night, that was basically three words that seem to be intimating. Some some positive news on the on the vaccine. He said tomorrow period vaccines period just saying period, so not not the typical kind of tweet you see from the chief of a major medical journal. That's believable. That's. That almost. is a friend of you. Almost seems like frightening your. Doctor. Two questions for you. One was what you made of this study that came out over the weekend out of south about sixty five thousand people, looking at children and their role as potential spreaders, and this idea that between ten and one thousand, nine, hundred older than ten years old that you're no different than if you're thirty forty or fifty years old, in terms of your ability to it, and what that if that's right, what that means of course, four school openings, and therefore the economy here in the United States that debate with teachers, unions and all of it. So this was an exquisite study has a South Koreans Saddam done throughout this epidemic, they looked at about sixty thousand contacts of around almost four thousand people who are infected with covert and tracked how those infected people. The index cases went on to infect other people. Now they only followed symptomatic people so these children who had become symptomatic from covert, and what it showed was that the kids age ten to nineteen they were the most likely to infect other household members that I leave eighteen point. Six percent children younger than that were less likely to infect other household members, but the. The kicker here is that it was only a very small number of children so I think there are about a hundred and fifty kids, and all that had become symptomatic, and we'll follow this study, so what it suggests is that kids are less likely to become symptomatic from covert because a number of kids in history that were caught. with Cova that has Kobe was relatively small, but when they do get symptomatic ovid. Perhaps they're just as likely if not more likely to spread the virus not might not be because they shed more virus might be behaviors. You know when kids are sick. We're still going to catch. And go close boom versus adult the second household, they might be more likely to self quarantine. Does that mean you're less likely to spread? The information I would take away from what you just said. Is that not accurate it? Didn't didn't speak to that one way or the other, but it does, but there is a belief that a lot of children get sort of sub clinical infections. Confection and they're less likely to shed virus when racing dramatic, there are some studies showing that when you're a dramatic, you're less likely to spread the virus. CDC's website when CDC's give gives guidance to modulars. They asked to make certain assumptions. Assumptions right now that they're asking models to make. A. Dramatic people are believe fifty percents likely spread the viruses those who have symptomatic so there's already general belief that when you're ancient, immaculate, likely spread it. There's a general belief that most kids when I do get infected with corona virus symptomatic. What South Korean studies suggested is that when when they get infected and it gets symptomatic. They're just as likely to spread it as an adult. He's got one last question, which is obviously the the news and you guys were talking about it earlier. Testing and tracing. With the trump administration, saying that they they don't want to spend or one block the twenty, five, billion, four, some of the testing tracing questions actually reverse the whole idea. How much would it cost if we said we wanted to do? Five million tests a day and we're doing less than a million a day now. Five million tests today ten million tests today. How long would it take to ramp up? And how long? How much would it cost well? It's for a price tag on how much it would cost to ramp up You know. The tests run about fifty dollars costs of goods on a test that scale it's GonNa come down what needs to happen the real swing capacity in this country so twenty five percent Tessa appointed care tests done quickly. Twenty five percent of tests are in hospital tests. Those turned around quickly by hospital labs. The other fifty percent are largely being run by the commercial labs, and that's what's getting overwhelmed and what needs to happen. Those commercial apps need to make significant capital expenditures to build out there lab capacity so they can expand. The use of their laboratory developed tests. My hunch is that they're reluctant to make tremendous. Tremendous capital expenditures because covert testing the market. That's like me to go away. At some point. They can't reconvert that capacity to other uses that there might be a role for the government to inject money quickly to try to expand that lab. CAPAC- recognizing that. We're going to have to mothball at some point now doing that. You can't just switch that on overnight so investments we make right now. It'll take a couple of months to get those labs validating up and running and the biggest bottleneck quite frankly hiring lap tax, you need an army of lab. Techs do the sample prep and naturally the bottleneck getting those skilled personnel on board. Dr Guy Lead. With almost every morning for I think four and a half months maybe longer now We appreciate having you here. They've been trying to wrap us for five minutes. And obviously we still have questions to keep your hair, so we'll talk to very soon and we'll do. This morning ticker. Next on Swapan pod, Dallas Mavericks owner and Entrepreneur Mark Cuban on the pandemic, the markets and trading up this market. You can't be a traitor, but longer term traders typically end up losing all their money. Cubans dose of Wisdom for traders, even the ones on Tiktok. Everybody's a genius in a poll market. We'll be right back. CNBC'S WORKFORCE Executive Council is the premier group sweet human resources executives from leading companies across the country. It offers a members, only portal and chart plus exclusive industry contact with access to breaking news calls and digital networking experiences. The networking resources HR leaders need now applying to the workforce Executive Council at CNBC COUNCILS DOT com slash WC. This is what. Welcome squawk box here and CNBC I'm Joe Kernan along with Becky quick and Andrew Ross Sorkin. Let's stick with the corona virus, and the surging number of cases around the country Texas among states, seeing a spike in deaths and hospitalizations with they're now pleading for the use of masks. Joining us right now to talk about business in the lone star state and what needs to do to get the current outbreak under control is Mark Cuban he's an entrepreneur. He's a philanthropist, and of course you know he's also the owner of the NBA's Dallas Mavericks. Mark it's great to have you on again. It's been a while since we've spoken. For having me. Give us an update the last time we talked with you. You were kind of going around seeing how many of the different businesses that were slowly starting to open up. We're actually following the CDC guidelines. At that point you had hired mystery shoppers to go out and find out some of this information, but a lot has happened since then so just get us up to speed on what you're seeing and your home state. Served in the last couple of weeks. But just anecdotally driving around and trying to business here in Dallas more businesses. Shut down. It's not worth it for them to stay open. You see a lot more people becoming more concern going into a restaurant. People are wearing masks now in the restaurant where in June and early July when we first opened up. That wasn't the case and so people recognizing that this is scary. I get a daily report from the mayor's office and fortunately last night was the first time in weeks that the ICU, Liz ation rate in Dallas was under seventy percent and the number of cases down minimally. So hopefully, that's a trend that will continue. Said something really interesting there. There are businesses you can say anecdotally that that are closing, not because they've been told to. Not because they've been required by the government, but because it's just not worth staying open and I think that's the question that so many people are trying to figure out because that could be really huge impact on the economy. Is there a point where it's just not even worth to open your doors because you're losing more money than you're taking at? Copies because because of the by right, they weren't actually doing enough business to stay open, but they were able to sustain their business and keep employees on payroll because of the PGA funds, and you saw a lot of those companies also be able to sustain themselves minimally because we saw a surge in personal income and people were spending a lot of that. That money savings rates was very. I even were spending that money online, and so there was a little bit of equilibrium, but I think now with people becoming more concerned here thousand particular. You're seeing a drop off in that retail component and businesses just don't feel it's worthwhile to keep the retail side of their businesses open I. Know My Shark tank companies. We pivoted, but evolved a lot of their business to be as much online as possible, and that's really made a huge difference, so I can't say why. The businesses are closing whether it's because they just can't do enough business period, and they closed their entire businesses whether they just evolved to be online so that that is really the focus of the business now. Archive two questions for you. One is giving the renewed efforts at maybe the next version of. Or. WHATEVER WE'RE GONNA get in terms of stimulus. What were you thinking trying to tie that money to? Rules of the road, health standards, maybe mandatory masking and the like, so we don't situation where we're throwing good good money after bad all over again. No I! Don't think you can him to wear masks and protocols, because there are no protocols for businesses right if they really don't know what they're supposed to. The has kind of fallen off the math and trying to support particularly small businesses, so I don't think you can tie it, and so you know. I think it's really got to be on the demand side. It's going to be very difficult to extend. A when there's already a hundred billion dollars. They're just saying okay. Come back and apply again. I don't know that that's targeted enough. But on the flip side I think we do need to do stimulus again for consumers, and it's gotta be user. Lose it because that. At that point you'll see an increase in demand because of that avowed available cash, and I think that's what's going to keep companies in business. Mark I also wanted to raise a tweet that you sent out in the past twelve hours. That's trending on twitter this morning. You responded to a talk show host who said that their site for the Mavericks this year. Year, but said the minute one player kneels during the anthem I'm out, and they basically went after you and said that that you should deal with this. You wrote back. The national anthem police in this country are out of control. If you WANNA, complain, complain to your boss and ask why they don't play the national anthem every day before you start work. What are you anticipating? This season's going to be like an. And what do you say those folks out there? Who share the opinion of Mark Davis? You responded to on twitter. Here, look, everybody has the right to. Choose. You know this is a bigger issue. Trying to this hopefully is going to be a pivotal time in our history and trying to end systemic racism, using the platform that we have with the NBA to try to really get people to understand the challenges of African Americans in this country is paramount. That's more important than anything else we do. And you know when people talk about. Shut up the dribble or I don't turn sports to hear politics. It's not like in the middle of an NBA game we're going to. To start having interviews about political issues, that's not the case at all that you know the information or the the perspective that people get on our political stances where they may occur doesn't come from the him. Be a comes from all the commentary outside the NBA so you don't want to hear about politics. Turn off all the political networks you know just turn on the game and I think you're going to enjoy some great NBA basketball. We have scrimmages starting next week or game star July thirtieth the NBA. Is on course to be back and I think that's great for us, great for fans and great for the country. Mark anything that could interrupt that. Neither is must be watching very closely. Testing very closely kind of seeing what's happening and other sports. As. Well, what? What are you doing to make sure that you do get there? One of the concerns you have that you might not. Obviously you have four, hundred, zero, three hundred, some individuals, four hundred in total with staff. Your you have to be very careful about their health, but the interesting thing. This is one big psychological experiment where we're quarantining professionals. And, they're really adapting well. I can only speak for the mafs, but guys get along great. They're following the rules or wearing their mass, if people in the real world outside of the NBA followed, you know the masking protocols the same way MBA players are we re dealing with this virus and be way ahead of where we are now, and probably in a much better place you've heard the pushback from some of the marquee players in the NFL saying what what is the NFL doing to protect me and my family signing a letter writing some of these things? What do you think you are doing differently in the NBA Fan. Well, we have sixty seventy players now pertain as opposed to fifty three, plus all the staff and their staffs are much larger than ours, so they've got a different challenge than we do. It'd be very difficult for them to quaranteed in one location I haven't heard anything suggesting that they're trying to do that. Whereas with us, we have one location. You know we're able to keep everything under control. There's perimeters that we watch. There's protocols that we enforce very strictly and so I think we have the advantage there that the NFL doesn't have so I can't speak for them, but I think it's a little bit easier for us. Hey, let's turn back to the markets a little bit and just. The. The trend that we've seen recently of the Nasdaq very recently and I just made in the last week. The Nasdaq gave back some of the gains that it had picked up. It was the and p. and the Dow did better last week. What do you think about technology stocks here? What do you think about growth stocks versus value stocks? Every people just chasing performance I mean it's a momentum based market. You Know I. Don't think this is the fundamentals driven market, and it hasn't been since the Fed intervene. You know I think people are trying to say what's next. Where's all the money going to go next? And then they try to get ahead of that? Then that plays out then they go back to where they were check. We've seen this many many times before. Part of what happens in a bull market. You lived through nine, hundred ninety nine out. You think this is anything like that. When you say momentum and just tasting momentum and getting away from it, or is this very different because you see a lot of these companies like Microsoft and Amazon that really have have been putting up numbers to. You know in some respects is different because of the Fed and liquidity they've introduced and the inflation for financial assets that comes with that, but on a bigger picture. It's so similar I had my eighteen year old niece asking me what shock stock she should invest in because her friends are making thirty percent per day. You know and other people just randomly asked me never look at stocks at all what stocks they should invest in? Everybody's a genius in a bull market, and everybody's making money right now because you've got the Fed foot and that brings people in. In who otherwise produce participate? You've got all the three traders you know. That would have been the analysis analogous to the day traders of the late nineties that can come in and trade for free they can trade fractional is stock, so it's easy for them to you know. Put in a little bit of money. Look and see that they're up thirty percent. You know that they've made relatively speaking a lot of money for themselves, and that's going to keep them participating so yeah I think we're very similar to what's going on in the one thousand, nine hundred and. Look in my portfolio, which is still very heavy on. Amazon and Netflix I have to keep on reminding myself that the Internet bubble lasted multiple years. You know it went from one thousand, nine, hundred, ninety, five to early two thousand, and so it wasn't like we're in a bubble. Then all of a sudden the bubble is over months later lasted for years, and so it's difficult to have patient sometimes and recognize that there's still a lot. Lot of money that come in and change that performance. You know people tell their friends. Hey, look at how much money I'm making my niece and her friends, other kids that I know are asking me questions on Tiktok about stocks, and so it's different, but it's still an allergist and so many ways, but we still have to be patient. It doesn't mean it's going to end tomorrow. So what did you tell your eighteen year old needs to do? I said there's a reason why people sell you that stock, and it's not because they think the price is going up. You know and so you've always got to be careful and understand what you're doing. And then the second thing I told her. If you do it and you make money the only way you get to keep that money by cashing out, don't get crazy that hawks get slaughter and so I, said you know this is a little bit different, but this is also a chance for you to learn how the market works, and how companies work, so if you are willing to take the time, I'm happy to help you. WANT TO BE AN investor, not a trainer, though right yet. This market you can't be a trader, but longer term traders typically end up losing all their money, so you want to be an investor, longer term and understand what you're doing. Mark, thank you. It's great to see you and I hope to talk. Always, thanks for having me on. We'll be right back. And? That's the show for today. Thanks for listening to this podcast. squawk Fox is hosted by Joe. Kernan becky quick and Andrew Ross Sorkin tune in weekday mornings on CNBC. Eastern and to get the smartest takes and analysis from our TV. Show right into your ears. To squawk pod wherever you get your podcasts when we be back here tomorrow. CNBC'S WORKFORCE Executive Council is the Premier Group C. Suite human resources executives from leading companies across the country. It offers a members, only portal chart plus exclusive industry contact with access to breaking news calls and digital networking experiences the networking resources. HR leaders need now apply to the workforce Executive Council at CNBC. COUNCILS DOT com slash WNYC.

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