Transcripts For CNBC Squawk On The Street 20240713

Say, someone who believed that things may not bottom. And i think hes switched. He may say its not in dramatic fashion because its near the middle of his piece, not at the top. I do believe what were seeing is a gigantic amount of liquidity put in by the fed, when it looked like things might go back down that mattered a lot. A lot of companies that dont have great credit are getting money. Thats important we saw the retailers go up last week it wasnt because retail sales were good, but because their credit was so bad, maybe they get a chance to raise money. Ge raising money a lot of companies are raising money that would not be able to raise money. That is going to be a major change to keep a lot of companies out of bankruptcy and in the same way that the oil deal might Keep Companies out of bankruptcy david, you know theres so much debt being issued now. And theres some opportunities for people who want to buy debt, but holy cow, is the government wide open to buying anything on thursday, when we were going over the release and was still fairly new at that point, yeah, 2. 3 trillion in loans to support the economy. The takeaway, many people talk about it, the high yield market. The idea that the fed will be willing to buy nonInvestment Grade bonds. That does extend into the Energy Industry. There the ratings may be below what the fed is able to do, jim. Credit is flowing. Honeywell putting in place a new 1 1. 5 billion revolving facilit. These are just, you know, deals with banks but the Capital Markets also do with the feds backing, certainly are a lot more generous than they might otherwise be right its rather amazing. Carl, when i look at what the bottom might be, its when the fed said were going to do whatever it takes. And until then, i saw retail after retail that i thought would have to close. I saw lots of companies in the restaurant business, they were just trading down precipitously. The one thing thats still the fly in the ointment is exactly what mark cuban said he has a lot of companies that i dont want to say werent doing that well. Where doing what they should, that is grow and banks are deciding maybe those companies dont deserve the money. That was not the plan. If the banks have done that, secretary mnuchin has to come out and say thats not the mrap a plan at all. The plan was to keep companying open, hiring people and not for the banks to evaluate. Most of the banks wouldnt want to take these companies. Wow. Look at that jim, is the market trying to discount the efficacy of sba loans or have we moved on to the second step, which is what you were talking about a moment ago, the quality of demand and speed with which demand covers, maybe midmay is a potential opening for some business. If you dont get Small Business open, then what well do is well go to costco and well go to walmart and we can go to target home depot, well go to lowes i dont know maybe mcdonalalcdonalds. Maybe wendys. The base of the country are places we like to go it we just want to go to dominos, mine somehow something that was meant to be able to help Small Business with Community Banks suddenly is being gated by big banks that dont want these loans . They want to bar san miguels loan all im try doing is pay my employees. I have like 25 employees that i have to worry about in two places i thought for sure, you get a number, you get an sba loan, you reopen, terrific, because you reopened, you dont have to pay the workers. Is that a farce . Did we all get faked out if we all got faked out well end up going to the restaurants that have the Balance Sheet. Thats not i didnt think that was the plan. Yeah. Geez, chase is deciding whether they want to give me a loan theyll say no they will. They say no to Everything Else if mnuchin were here now, he would probably say, look, this is seven days old now, eight days old the reason for going through banks is it was a Ready Network of distribution pipes with which to give money. Thousands of banks with relationships already in place yeah. Its all new, carl. Thats true. We did ask about that on thursday when he joined us, of course i was hearing that the banks were asking for more disclosure than perhaps anticipated or required by sba. The main Street Lending program as well, mark cuban was talking about it this morning, the banks are keeping 5 of the loan you still imagine credit qualitywise, you wont lose 95 there. But perhaps that is also going to be something of a Sticking Point in terms of getting the money out there as quickly as possible yeah. Seen some surveys this morning of Small Business owners who indicate that they are applying and in fact applying in rapid numbers, but many have yet to receive the money. Now, secretary mnuchin would say, yeah, we said it would be a couple weeks it hasnt yet been a couple weeks. Certainly dont feel like theres much hope. If theyre giving the money through paychecks and automatic data, i know that wouldnt have covered everyone maybe the sba could handle the rest my wife and i are able to handle it, but how many do . This is not working. I know the Community Banks are good and have the intent if we have to get a loan from chase and other people have to get a loan from city, forget it. None of these people were not credit worthy, so to speak were not Gigantic Companies that have great Balance Sheets that need a loan were companies that, i dont know, we had a decent week last week, not so good the day before paychex knows how were doing, automatic data knows how were doing. Chase, my bank, i couldnt get a mortgage out of them i have a decent Balance Sheet. I think were something is wrong. And i would have hoped that something is very wrong here jim does it jim, what is the message to your employees im sorry who goes first my question for you is what is the message to your employees . Ill cover you. Im wealthy enough im grateful youll get your money. I dont know if people feel they can make more money on unemployment, thats fine. I had lots of discussions this weekend about this im sure everybody did im one of millions of people that are trying to figure out, well, we went to our bank. Did we make a big mistake going to chase ive been a client for 35 years. I dont know am i a sucker . I dont know this is no. No . Who should have i gone to . I wish i could have gone to square or automatic data or something. Yes, i am, im curious about whether it changes your view overall of the market. Just this morning in speaking to people, i mean, theres those who are getting more bullish who believe april will be the worst month or the cruellest month, may will be better than april, june will be better than may and well be focused on 2021 earnings, 20 will be off the table when we think about things therefore we hit bottom. There are others who say things are just not going to be back to normal any time soon the money may not be getting there as quickly as possible mark cuban saying if the money doesnt get there soon, there will be deeper problems. Theyll look at that the idea of people getting back when you have major cities like new york, l. A. , miami that are still going to be under quarantine of some kind. Theres concern about food sources with smith fiefield foo, that pork Processing Plant restaurants, how many can come back into business its funny in picking up people who are becoming more bullish based on the overall view that things will continue to get better, and more bearish based on the idea that the market is also anticipating that, and, n. Fa in fact it will be tougher getting back to business the Bigger Companies wont have a problem i dont think anyone expected that what would happen is there could be a handful of companies in charge and the companies that are small just die fortunately we have the banks this week. Carl, we can ask them. Heres what theyll say. Everybody is going to get the numbers, its all backed up. Well hear the sba is backed up. There will not be an alternative. They have to say were also going to let automatic data help us, we can see they have a view of what were doing they have to let paychex do it they cant let us close . How many weeks do i have to front people i dont front people, i do okay. We cant front most people cant front people mark cuban is talking about not fronting people. I know he will, hes a great guy. Were not governments. Yeah, you mentioned the banks. It is a Good Opportunity to ask you how well process them this week prior to prior to prior quarters jpm and wells tomorrow does the print mean anything at this point how deeply do we need to read between the lines in the commentary to get a sense of what q2 is looking like . What a great question what will happen is, this may be the end of the notion of we will predict, heres the future if i were any one of these banks i would say we dont know. Its a health issue. Its a biological issue. In the same way people say its the science that dictate it. Anyone who makes a projection is going to prove wrong they dont know what will happen i think it will be a curious earnings season. Especially whats going to wells say in hey, were brandnew . I think it will be a disappointing season in terms of trying to figure out what things will go on im going with what kostin says. Maybe weve seen the bottom. All right well take a short break here. When we come back, lots of calls to get to on caterpillar, deere, fedex and commentary on gileads covid19 drug. We cannot do all the good that the world needs. But right now, the world needs all the good that we can do. To everyone working to keep america strong, thank you. A lot of commentary this morning on remdesivir, that drug from gilead after the companys post on friday lets get to meg tirrell these were highly anticipated updates. What we got wasnt a clinical trial, it was an update on 53 patients who received remdesivir under compassionate use, thats for very sick patients who are not included in Clinical Trials. What the results showed is that 68 of the patients showed a clinical improvement being able to receive less oxygen support essentially there were 30 patients who were on ventilators, and the results showed that 17 of those were able to come off that intubation, but 7 patients included in the results died now, there are some limitations to this data because its compassionate use, there are no controlled. They were not compared to anything in the study. The lead author of the new england journal of medicine article says there is no proven treatment for covid19 we cannot draw definitive conclusions from the data, but the observations from this hospitalized group of patients who received remdesivir are hopeful. That word hopeful is a takeaway that a lot of people are taking from this update but we are going to be looking for more controlled data from Clinical Trials and gilead outlining when we should expect to see some of those updates from their own studies potentially later this month we should see an update a study in china was discontinued were not sure when we would expect to see that data. An nih study is going on, thats a rigorous, controlled, double blind study. That will happen in may. Some already starting to speculate, including jeff porges, an analyst, that we could see potential approval of remdesivir in may. A hopeful update but we need more information back over to you yeah, meg, its david just to point out, this is infused, this is not oral. You have to get an infusion to get this, correct . Thats right. So, what folks are talking about is this would be for hospitalized patients who are there and the people in this trial received a tenday course. Youre receiving an iv drug for ten days in the hospital meg, thank you. Should point out later on, in the next hour on squawk on the street, talking to wendy holm, the ceo of Ridgeback Bio therapeutics who is moving in to a phase one trial for an oral antibiotic that they hope is successful we will speak to her for now, jim, lets move back to the markets themselves and get a mad dash in if we can. You want to talk micron . The leader in this market since the bottom has been telco tech the one that i thought had the most prominence was the bounce in micron. Micron has got all sorts of tech inside it. And there had been some tightness in drams. Goldman downgrades it. Its a chilling downgrade. The reason i say that, theres so many stocks that have a great move off the bottom, you dont want the leadership picked off this one is a pick off its basically saying, all right, we had the big move thats over. Too many of these, we will go further down will we violate kostins level i dont think we violate the low. I read it, i said eh, i dont want these now if this is the start of downgrade season ahead of the earnings, well have a tough earnings season. Micron, not so great all right well keep an eye on shares of micron and continue to watch the overall market and see if the s p continues that rapid rebound weve seen, certainly last week one of the records for some time a lot more squawk on the street comingig bk. Rhtac om, its got all my favorite shows right there. I wish my Trading Platform worked like that. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. Ever somethings gone mogotten into the office. M, i hear you. Feels like theres no barriers between departments now. Do you think everyone appreciates it . I do. Huh. Forgot my glasses. Serivcenow. The smarter way to workflow. [female vo] restaurants are facing a crisis. And theyre counting on your takeout and delivery orders to make it through. Grubhub. Together we can help save the restaurants we love. Welcome back on this monday morning to squawk on the street. Neil kael kashkari made some xcs about the countrys ability to reopen in the next couple of days, saying without a vaccine we could have 18 months of rolling shutdowns. It would be wonderful if a new therapy would be developed in the next couple of months and people could go back to work and get treatment. Potentially we would have a vshaped recovery. Barring a health care miracle like that, it seems like well have various phases of rolling flareups as we heard from your guests from washington, different parts of the economy turning back on, maybe turning back off again this could be a long, hard road we have ahead of us until we get to an effective therapy or vaccine. Its hard for me to see a vshaped recovery under that scenario jim, too bearish . Yeah. You have to have testing i know that nancy pelosi says testing, testing, testing. Thats been the call. But, look, if we know were okay, and i know i hear it, jim, you dont know if youre okay for the next five days. Everybody wears a mask we have a lot of testing, then i think youre willing to go out if it turns out that a gilead makes it so this is not the end of that you can just go home for a while. I dont know i just refuse to believe that science will not get closer and closer i dont like the idea that we shouldnt all be Wearing Masks im not wearing a mask now when i go to a store, they dont have masks, where is osha . Dont they have to do masks to prevent everything you know the perfect is the enemy of the good. We need to just cut down the instances where we touch each other, the instances where we breathe each others breath. If we have enough people who have been tested by abbott, which is a great test or sefid, i think well have people who come back. Its not going to be something that happens quickly i really do fear empty storefronts everywhere because of the choice of using banks, theyre looking at a lot of things, they have a lot of people examining loans theyre not supposed to. Theyre supposed to give us money. That didnt happen didnt happen. That was the point in the conversation between you and Speaker Pelosi late last week talking about ways in which we can ensure that we avoid a depression take a listen to that. We could have a depression because so many people are out of work. Thats why we have to get the system really energized and working. Lets get out those unemployment checks lets get out those direct payments lets get these loans freed up let the banks be the friends to this whole system that they are. This is an era of entrepreneurship that were never seen before because of the challenge to Small Businesses. Jim what kind of onus does that put on congress the next few weeks . They have to understand whatever theyre doing with this next tranche of money, they have to be sure that there are people who get it who want to stay in business i know its supposed to be this tranche, but they have to make it so the Community Banks are the ones that should have done it the big banks. They need another conduit. I wish they didnt i know a lot of the big banks are trying no one is trying to stop Small Business but when you have a big bank involved, theyre not going to be able to analyze it. I think the speaker is correct, they have to put more money into the hospitals. Did you see how much the Teaching Hospitals are losing . Theres just states losing fortunes we dont want to do what happened in 2000, where the states were they really got hurt so therefore we didnt have enough money for everybody we have to make sure nobody gets hurt and particularly the states and the hospitals. I dont see that happening right now. Jim, you raise an interesting point on the Health Care System. So many different parts of our economy have to restart. Its not like the Health Care System in new york, new jersey, other areas so hard hit are not operating at above capacity with those heroes on the front lines, but there are lots of hospitals around this country right now that are waiting for an influx of covid19 patients that are not doing anything else. That are not doing the elective surgeries that pay the bills, that are not treating Cancer Patients in the same way or Heart Patients in the same way people are putting off procedures that they otherwise would do there is an element of this that becomes important as well and restarting the Health Care System, so to speak, within the next four to six weeks thats where the money is youre right, david. I think that when you think about elective surgery, that will impact a lot of companies about to report. That was something we regarded as something steady. When it comes to earnings season, a lot of things we felt there is always going to be something that helps them and makes them more consistent take caterpillar they had a great rebound off of the 100 level a lot of that is because we believe the oil, they have a big oil mining business, that oil was going to bounce back because of the talks that the president was having with the saudis and the russians because of opec plus i come in today, i dont see oil roaring. I dont want to bet against oil. I have to believe maybe the market is not correct about it because it should have been up a little bit you need to see caterpillar get some orders from china china is not as big as oil and gas. I just feel like, unless its connected to china and china is spending, i dont have a good thing to say you saw the downgrade, right, out of b of a. That was painful. So true. Target 115. Looking at energy exposure, which is really embedded throughout their Customer Base dividend risk of some of the largest customers. Retail sales obviously likely to worsen thats coupled with the downgrade of deere we have these points of pain in the system. The whether they be the food system maybe having some lets say some supply issues, whether its driving, not coming back whether its Small Business waiting for the bank loans of which could take forever, lets be honest, the sba was never made to handle these loeps thats an important bottleneck it will happen or if its people who just are afraid and i dont know how to deal with the people afraid. Having been i actually i got some things i took out this weekend. So what do you do . You take the lie sysol, the bag, its a sub optimal way to eat. Yeah. So youre doing the full wipe down of your groceries and i take the amazon box i leave it outside yeah. It is cardboard its covid19 territory. I know. We are very uneven in our treatment in all of those Different Things some boxes sit others get opened immediately. Just wash your hands a lot certainly one thing to keep in mind you mentioned amazon speaking of ecommerce, before we get to the opening bell, ebay has a new ceo. Hes been at walmart, interestingly. In fact hes been the coo of walmarts ecommerce business. Had worked at ebay from 2001 to 2009 in a variety of technology and Business Leadership roles. The market responding well to that from what i saw in the early going. The stock does appear to be up ebay has not been hit particularly hard given its place in the ecommerce ecosystem. Small it may be in some ways, but one of those companies that may benefit from this. Its also interesting, he comes from walmart and theres no shortage of speculation that some of these Larger Companies like walmart, given the Current Situation and how much more emphases is going to be placed on having logistics and having an ecommerce business that delivers immediately, that they may be looking for further acquisitions i did note he came from walmart ecommerce and theres always question in whether walmart may be interested in buying Something Like this. The rich get richer like when the banks get bigger wow. Theres the opening bell well see what the day brings. Everybody is aware were coming off the best week since 74. Australia, hong kong closed for the holiday. In terms of the curve over the weekend, i dont know, most optimistic data point, new hospitalizations in new york state down to 53 thats the lowest since tracking beg began. We have not touched on after four days of wrangling, owe pep pl opec plus putting together a 10 supply cut are we over the curve no one wants to say it when what happens is we have another spik spike. My daughter is in madrid. The numbers are better there italy a bit better i know people want to look at a small outbreak in south korea, but a lot of people were saying, look, could you have started it . Geez, lets look forward, not backward my feeling is that things are better but i do want to see that employees have masks on. And we should wear masks everyone should have a mask. And lets get the testing. I really want to get tested. I want to know whether i had it or not i had the flu earlier this year. What was it . I think a lot of us feel the exact same way we dont know where to get tested we dont know what to do im just i think a lot of us are just saying, wow, i wish we lived somewhere else where maybe it was easier to get tested. Carl, do you know where to get tested no. Theres a cvs in georgia that has some drivethrough testing good luck getting there. Morgan stanley does have a model out in which they see serology testing widely available in june wave two goes back to work mid summer potential vaccine they think october for health care workers. So people are trying to put together some picture of what the summer and fall could look like i think thats optimistic theres a plan at all. I wonder whether the president will fire fauci. Because i think dr. Fauci still has some standing. I know when i listened to the interview, he is interviewed endlessly. He finally said it he said listen, maybe Something Better could have happened in february does that is that it . I think every country in the world was just wishing they did things earlier i read the navarro memo. Peter was saying this could happen i think things were pretty fluid. And i think fluid enough that people were hoping look at mayor deblasio well mayor deblasio was the worst. Jim what . New york city certainly could have moved a lot quicker they were the worst jim, you you were saying it on our air. You were talking about it if youre 60, dont go outside. You were talking about ships becoming hospitals, floating hospitals. The cruise liners. You were talking about that in midfebruary i know. I was scared to death. The super bowl was the 4th. Jim, you were talking about you were warning about the supply of drugs out of china yeah. I thought that if i came back and i tried to just sound the alarm that maybe people would listen and they werent look, we can play the tape about whether i was geez, i came back, i was scared to death. I realized, i was wearing a mask that looked like i was a panic guy. So i took the mask off people recognize me, they said, wow, that guy is really out of control. I came back. I ran a tape at the beginning with me and tepper saying were all going to get it. I looked like a crazy man. I know we all want to blame whoever, but i came back people said, jim, the sky is not falling. I have a Surprise Party for you that is coming no i dont want to have a Surprise Party. I i dont want to get it. I gave a georgetown speak where i had to thank everybody, shake everybodys hand all of this i fell was dead wrong. People didnt listen when i look at these things, the retrospect of everyone being attacked, i say, no. I came out and said stop america. All that happened was that i was completely ridiculed i think the backward look is wrong. We well, jim, come on. We do know from some excellent reporting and some reliable places that, in fact, there was a lot of concern in the federal government that was ultimately not paid attention to until far later than it could have otherwise have been, to what mr. Fauci was talking about and to your point on whether he will be fired. You took away his doctorate excuse me dr. Fauci. Holy cow. That says it mr. Fauci. On the testing front, im looking at a tweet here, new york citys Health Department says the city is in danger of running out of swabs for tests thats great. Says only test hospitalized patients good luck in getting one of your tests soon, jim. You like so many other people so many people think i may have had it i wonder if i had it perhaps i did chldid. We all would like to know. It doesnt appear that will happen soon. I want to know if my kids have it, those are the ones that dr. Fauci says are the people who can give it to you i love my kids to get tested i would like to see them i would like to see my wife. How is they doing . I saw her at the beginning of march. Two things. Fauci is going to be taking phone call questions tonight on cspan really . At8 00. The president just now tweeting about the opec plus deal having been involved in the negotiations, the number theyre looking at to cut is 20 Million Barrels a day, not the 10 million thats generally being reported if anything near this happens, the world gets back to business from the covid19 disaster, the Energy Industry will be strong again, far faster than currently anticipated. 20 was a whisper number on thursday not the number that came out of the meeting. No. Theres no. That would be good. I know people feel there was a surprise element that could happen i dont know i just think youre going to if youre an oil company, you have to rely on the fed to be able to buy some debt. I keep thinking, what debt is the fed willing to step up to . David, do you have a sense of what the fed is looking at do they want to bail out companies . Do they want to bail out Neiman Marcus do they want to say, macys is cool how do you know what they think is good and what they dont . I got to well, i would have to go back and look at the footnotes for the announcement from thursday, jim, in terms of i think they stop at triple b so im not sure where some of those find themselves right now. Some of that debt finds itself in terms of the rating obviously theyre going to be buying a broad selection, right . Theyre levering that at 8 1, Something Like that . Yeah. Yeah. 10 1 on the Investment Grade, 7 1 on the nonInvestment Grade i dont know specifically where those by the way, ford got didnt get ford get downgraded, too . 34 billion falling from Investment Grade into high yield, which is why that market needs a new buyer, believe me. Its not large enough to sustain that kind of volume falling into it, so to speak, from the Investment Grade market. We are getting some news on ford for that, lets get to phil lebeau talk about a monday surprise. Ford really not giving guidance, we know they suspended guidance, they dropped preliminary results for the First Quarter. These are preliminary results. Final result also come on april 28th i think this is clear that ford and cfo tim stone are trying to send a message in terms of having ample liquidity giving everything thats going on in the Auto Industry. We wont get into what the First Quarter results will be. We have not exactly seen what the estimate is from analysts. A couple of interesting notes. One, on april 9th, the company had 30 billion in cash on its Balance Sheet, including 15 15. Billion in proceeds from borrowings in the last month, from two existing credit lines. Tim stone goes on to say we believe we have sufficient cash today to get us through at least the end of the Third Quarter with no incremental Vehicle Production and wholesales or financing action this is ford saying, look, we have the cash at least to get through the end of the Third Quarter. Thats if things dont improve at all and they are planning a phased restart of production sometime in the Second Quarter. Most believe in the Auto Industry youre looking at may, whether its the beginning, middle or end remains to be seen depending on where the facility is at, whats happening with the Health Departments in those particular areas about whether or not they think its a good time for companies to begin manufacturing again. At least some guidance from ford in terms of clarity, i should say, clarity in terms of its cash position. 30 billion on the Balance Sheet, and enough to get at least to the end of the Third Quarter thats separate, carl, of whether or not they have to take out Additional Debt ordo other typesof financing, et cetera phil, to be clear, considering a phased restart of some plants . In the Second Quarter and, look, they already said theyre not going to be manufacturing through the end of april. Almost all the manufacturers have said that there may be a few saying the end of april well get there i think its likely that we will see the automakers talking generally here, sometime between the beginning of may and the end of may, youll start to see them bring on their facilities, as well as the suppliers. Theyll be doing the same thing. Again, it depends on where the plant is and what the situation is with coronavirus in that particular area. All right phil, thank you very much. Phil, is anybody buying cars, just in general, buying cars and trucks a lot of the downgrades this morning for semis have to do with the fact theyre connected with auto. And that auto is a disaster. I dont know if its a disaster. Jim, the expectation, if you were to run a sales pace or sales rate for april, most are saying dont be surprised if it would come in at 4 million to 5 million vehicles, as a sales pace, not total vehicles sold, but as a pace. For point of reference, most were expecting the sales pace in april to be between 16. 5 million and 17 million vehicles. Vehicles are being sold, particularly in the south and in the southwest. Down in texas, i mean, pickup truck sales are down maybe 50 in some parts of texas now, thats not great, but there are sales going on compare that with the new york area look, youre barely getting any sales up there you guys know that no dealerships are really open you can buy online, but thats a drop in the bucket relative to what they usually do very true very true. Phil, thanks to you david, interesting piece out of ben smith and the times about bob iger and disney. Just when you think youre out, they pull you back in. Yeah. It was an interesting piece. Theres been a lot of focus on disney weve been talking about it. Many out there will say when they can reopen the parks, thats disney, thats also our parent company, comcast, which also has a number of theme parks. That will be a good sign certainly. It will be reflective of peoples willingness to potentially go back to business, so to speak. Its still much unclear how you exactly do that. Iger talking to barrons last week, talking about taking peoples temperature. So many people are asymptomatic. And how many kids run a temperature anywhere and having nothing to do whether or not they have the virus. It is interesting to think about, you know, if this had happened a bit sooner, mr. Iger would have stayed on as ceo. I think certainly one would have to anticipate the board would not want to make a change the way they did, in certainly the biggest crisis that disney faced. We talked about pressure on the theme parks, pressure on espn as well given its inability to run anything at this point that actually has anything to do with live sports. You know, so many different areas. The studio being shut down now disney plus is a bright spot 50 million subs passed last week iger certainly in an Important Role here. Theyre certainly glad he didnt leave. Hes the chairman. Hes working closely with mr. Chapek as you might imagine to try to figure out particularly sort of how and what business looks like after you get past this crisis. Yeah. To me, i was kind of shocked at this but then you realize the furloughs, you realize that maybe the gatherings, do you want to gather you see shanghai is not open yet. At what level are you buying an iconic brand because you know it will be around and this will not last forever this one has more of a valley that im willing to hold on to theres other companies today that have a valley where i dont know companies that are ls versus companies that are us. I feel better that bob is there. You know, everyone knows hes a steady hand. At the same time, do we want to get in crowds . Boy, i dont want to be i see people, i cross the street when i see two people walking together i dont know what i would do if im waiting in line for a ride for the jungle cruise. No thank you i dont want the jungle cruise i dont want it. Anyone want it yeah. Until you know for sure that you already had it, which is we need that. We need immunity we have to find out who has it this is ridiculous cant we just find out come on. Lets just find out. Im tired of not knowing whether or not im sick or not everybody else is. Look, the reason why were not opening has nothing to do with us were a strong country again, which Means Nothing other than the fact that were ready to go out if we think we cant get it i dont know about you guys, i have probably a dozen friends who have had it. I say okay, what are they going to do . The answer is theyre going out. But theres not a lot to go out to yeah. They want to let people know. Dont you want to let people know give me a green absolutely. Absolutely guys, lets get to bob pisani and see whats happening here as the markets reopen this monday happy monday. Not a terrific open. 3 1 declining to advancing stocks europe is closed for the holiday. Not a lot of help to us right now. We started off positive with energy on the deal announcement, but even energy has turned weaker here. Banks are notably weak jpmorgan reporting shortly tomorrow, down about 2 here Consumer Staples weak, industrials on the weak side theres your Energy Stocks they were all positive at the open these are high beta energy names that would benefit from any deal at all as you can see, even they are on the flattish side right now here goldman talked about that deal saying its historic but insufficie insufficient where are we in the markets now . Weve gone through several different phases of the coronavirus. We went through the february 20th and march 23rd phase. I call that the panic phase. We dropped 34 on the s p 500. Then we went to the rally phase, i guess you could call it relief or fear of missing out phase, we rallied 24 off the lows now where are we some people are calling it a frustration phase that were likely to enter now where we still have negative news on the shutdown, on earnings that are coming overall, and, of course, we still every day come up and i put together lists of companies that are withdrawing guidance or furloughing people i think this is a useful way to realize this is still very much an ongoing crisis. Grubhub today withdrew guidance. A bunch of companies in the last day or so announced theyre furloughing people, including tupperware, groupon, live nation, and even disney world employees getting furloughed always useful to realize theres real damage here and its hard to pick a bottom right now what are we expecting from earnings season . Its been difficult to figure out. Ive never seen a dispersion between analyst estimates like i have for q2 numbers. They are essentially useless i dont see much solace looking at the Earnings Guidance we have probably close to 100 companies withdrawing guidance for the quarter or for the full year how will you estimate anything about global guidance in the s p when so Many Companies are withdrawing the guidance people are trying it i am somewhat heartened. Noted this last week that a number of the big topdown strategists that we have on all the time are coalescing estimates for the decline in 2020, somewhere around 20 to 30 . You might say you could drive a truck between these estimates, 33 to 19 thats a big dispersion, thats better than it was two, three weeks ago when nobody had any idea what the numbers are. At least theyre starting to coalesce around some idea about where things might be going. Well get banks this week, jpmorgan tomorrow. I look at the reej nagional band what they might have to say. Theyll be hit by the brunt of the lower provisions for credit loss, which is the most important thing. I want to here about how many loan losses they have out there. Flatter rates, a lower yield curve. The Government Programs will help, but these regional banks make demands, main loans out to the companies, to the restaurants out there. To all of these Small Businesses that are out there i want to know what kind of Loan Loss Provisions they have. And theyre big Asset Managers on top of that if you get lower value of the stocks, lower value, they get paid less on that because theyre paid a percentage of the assets under management. Even asset management, a growth area for all these banks, a bit of a problem theres some of the regional banks all down as we go into this i want to point out whats been going on here. Theres an etf for this, kre, the regional banks, not the Global United States centric banks like citi group. Look at this number. 55 at the end of february. Went to 27 on marchsraets rall 37 or so, thats a modest rally off of the lows. Yes, its a rally. Just remember, were here weren 30 , those banks from six weeks ago. And the market is very much pricing in some negative commentary in the next few weeks. Well see exactly what goes on the key is getting any kind of guidance at all. Se c has made it clear, go ahead, tell us everything you know we will not come after you if you change that guidance a couple weeks from now. Were giving you essentially safe harbor to be straightforward with us and dont hold back. I think thats going to be good news at least well hear from these companies about what they really think is going on guys, back to you. All right bob, thank you for that. Dow down about 350 lets get to Rick Santelli as well good morning, rick good morning, carl. Well, treasuries along with many sovereigns along the globe are starting to simmer down. Less volatility. Intraday of tens, up a bit month to date of tens, whats interesting is the way were moving up a bit, but also realize were 20 basis points from the alltime low close at 50 basis points and idling Foreign Exchange at one point was the epicenter of volatility. Look at year to date of the euro versus the dollar and its starting to simmer down and come to the midpoint of large moves as it moves right. Same could be said for the dollar yen moving sideways. If i go to the board, dollar index since february 1st, i like to use highlow perpendicular midpoint with volatile markets it gives you where the next move in if you look at how accurate its been, well continue to find a midpoint in Foreign Exchange that is a good thing along with volatility and the demand for dollars. Everything seems to be easing back a bit the one thing you need to pay the most attention to is the notion of a euro bond in europe. The ecb really needs to come up with a solution to all these countries having divergent sovereign debt and one credit reigns, supreme. German they have to come up with a euro bond its going to be a complicated task david faber, back to you rick, thank you take a look at amc entertainment. Er with talked about the willingness of people to go out and congregate when will they go back to a stadium or to a concert . And when will they go to a movie . Amc was already levered at 5. 9 times the ebita. There growing concerns theyll have to file bankruptcy. More squawk on the street coming right bab im 53. But in my mind im still 35. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex. Because im made to move. 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 youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Confident financial plans, calming financial plans, complete financial plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Buckle up for a busy week. Q 1 starts in earnest tomorrow the dow jones is having the best week for the s p since the mid 70s. Back in just a moment. Lets get to jim and stop trading. One thing for certain, the president is winning when it comes to Oil Companies the stocks are up. Theyre worries halliburton and slumber shea arent going to show the turn. Wow. Its worked and i think people have to recognize if you short these stocks you may be going against the tide which says these companies are going to make it. So kind of positive. I thought these Companies Might go theyre not. Not bad. Some positive. Levi straus had a great water. Nobody cared chip bergh is sensational. I cant wait to have him on. And goodly, im trying to find companies doing well i refuse to be down beat the numbers have peaked. Ive been waiting for that it looks like they have. When the numbers peak, you cant be as negative it doesnt make sense to stay as negative yeah. Indeed thats what the cdc director reaffirmed on the today show. I dont know if you saw crossing the wire, amazon is going to hire another 75,000 on top of the 10 0,000 theyve already done why not theyve wipe toutd little retailers. They dont have time little retailers are working with big banks i know they should have gone with Community Banks but we went with who he thought was right. We were stupid i went to college in stupid. Winner take all here. Yeah. What a shame well see you tonight mad money at 6 00 p. M. Eastern time if youre just joining us, welcome to squawk on the street. It will be a busy week as we get the first taste of q1 earnings the president tweeting about this opec plus oil deal that we got over the weekend we mentioned that amazon headline others from ford sara, and then this goldman note, david costen suggesting their near term downside target of 2000 is less likely now i thought that was surprising especially because we talked to him last week. He did not seem convinced the market bottomed. He said all the fast and large support and the peak in infections should keep us in bottom, if he said, we dont see a wave of second infections. You were laying out the bull and bear case and the different sides of the argument. One important point that you have to mention is the extrord action the Federal Reserve has taken with the latest sort of baa zu ka fired in a series of bazookas the 2. 3 billion to go into high yield and the market response we saw which was a tremendous recovery in the debt of the riskier companies. It really is if you hear the moniker dont fight the fed. Weve heard that post financial crisis and recovery. If youre a believer in that, then that is probably one of the most bullish points on this whole market, wouldnt you say, david . Yeah. I mean, the numbers are staggering of course, sometimes we need to step back, i think, and just think about them you know better than i where the feds Balance Sheet is conceivably going to be. But obviously add to that as well the 2. 2 trillion already spent by the government conceivably with not an expectation its going to get it back were talking so many different trillions. Where the fed Balance Sheet . Put that inperspective past 5 trillion in record territory and adding trillions every single week as we announce as we get the new programs announced theyre going to take on more trillions when it comes to the mainstream lending that theyre lending from the u. S. Treasury as far as policy support, the fed all in and not out of bullets i think is also another important factor psychologically for the markets that continue to be creative when it comes to ways to step in. The bears would say that there still is an enormous debt problem. Companies still have 10 trillion worth of debt while theyre fixing the kings and plumbing with making sure everything functions properly, theyre not cleaning up the debt load there could be a reckoning if we dont get things under control which is why the health news is so important the other point i would bring up to add to the conversation of the morning is people talk about testing, testing, testing, testing is going to be part of the solution here, whether its the Virus Testing or the Antibody Testing to see whether were immune which does not seem like theyve figured out how accurately to do that. I think we should also talk about the treatments there are hundreds of u. S. Companies now working putting their best and brightest and not just companies, places like the may o mayo clinic looking at treatments its not just remdesivir other antibody treatments and antiviral treatments. If you think about whats going to make you confident to go back to work, if youre not immune, and experts say only 20 to 30 of people should be immune, youre not going to do it. What if you knew there was a treatment to keep you outside the icu . People should be talking thats why its important that were talking to small and Large Companies working on that which i think also could be part of the solution i spent a lot of the weekend reading about them in fact, im going to speak to one of the companies shortly, because theyre moving into human trials on an oral antiviral that could be taken immediately after you get tested and if, in fact, youre positive or even if you think you might be, and youre right, i think there are those who believe once you have ubiquitous testing that can be done quickly and effectively and accurately, coupled with an antiviral regime that will make this more like the common cold, then youll have a willingness of people to go back to normal activity but we still dont know when thats going to be, sara right well, the hope would be that it would be sooner than a vaccine which would be the big game changer. Were hearing thats at least a year ago mark cuban saying you cant see a full stadium arena until theres a vaccine. Lets stick with the morning action slight declines and givebacks for stocks after last weeks blowout week j. P. Asset Management Joins us, samantha assarello how do you look at everything happening on the support front, the economic front and determine if weve hit bottom . It comes back to the covid data i thought that was a good point about cures and all the other pieces not just the data peaking. I would say this i think its very apparent that theres a pretty big disconnect between the Economic Outlook and then what the market was doing last week. Thats not anything different than the last ten years. Theres been pretty big dislocations between the economic or real side and what asset prices have been doing because yes, while a bunch of the data is Getting Better with respect to the virus and yes we have fiscal stimulus and a fed thats effectively has everybody in the market has their back in terms of the facilities. I would say the economic picture is grim. Its not very clear how we put 15 or 20 or 25 Million People back to work in a way when this is all said and done, and at the heart of it, the consumer is the heart of the economy even if markets are up because the direction has changed and for the positive, the delta, thats i guess good. But i would say it comes back to the economy healing and to me thats the consumer and the unemployment numbers what was baked in, would you say in terms of the 2020 Economic Growth and Earnings Growth were about to go into earnings season flying blind. Im not sure any of the in your opinions are going to matter but where is the market on the outlook . I would say right now the market is basically priced in a scenario which is Earnings Growth isnt that bad. Youve already seen Earnings Growth estimates they were negative 15 theyve gone back up a little bit to negative 8 for the quarter. Slight improvement i would say the market effectively is pricing in that in the second of the year were back at it the economy is reopened. And those unemployment numbers are trending down. What the market is not pricing in is if we get a second wave, right . If we have to shut down again, its also not pricing in if this weakness spreads into credit markets. Yes, the fed is there. At the same time you mentioned leverage theres a lot of leverage, and everything right now is just on pause. But that debt hasnt gone away i think that second scenario which is a its a lot more dire and very grim thats whats being ignored right now by the market, i would argue. I want to welcome ubs Wealth Management allie mccartney samantha was talking about how she doesnt seem convinced the market has seen bottom and the Economic Data is going to snap back you have so many clients youve been doing calls and web c web casts. What have you been hearing as far as the level of concerns and where the market is going . Sure. First, its really lovely to see you. It feels a little bit normal look, i think that last week was a very significant and abrupt move up in the market. I think that were all for a whole lot of personal and market reasons trying very hard to be optimistic and it all really does go back to you cant fight the fed were on track to have maybe an 8 trillion Balance Sheet with the fed at the end of this year. That is two to three times where we get in the aftermath of the financial crisis so this is significant right . And we have seen that materialize in terms of the liquidity and the pricing within markets. But there is a long way to go. Over this threeday weekend, as much as we heard positive on the virus front, we also heard a lot of caution as it relates to the labor market and getting back up to full running. What i will tell you is when i talk to my clients who are in the economy in the supply chain, they say the same thing to me which is theyre feeling cautiously optimistic. They are getting supplies where they need to be. Their communications, everything they have set up technologically. But they well work on your shot you were freezing a bit. At Home Technology samantha, why dont you bring in energy to the conversation its orchl a group thats positive leading the market today after another historic agreement what we think should be an agreement or at least a commitment from opec plus including the United States to put production how much of a Lasting Impact do you think thats going to make so for right here right now, i thought it was good news that they were able to come to a deal i mean, this doesnt fix structural oversupply issues in the long run but right now if we can reduce volatility in that piece, i think thats supportive for the rest of the market and for the economy. In the u. S. , just in oil and gas extraction, we employ about 100,000 people but i would argue theres a lot of spending thats done. Its not a longrun if i can it was a step in the right direction. It doesnt seem sustainable that saudi arabia and russia would continually cut their production, but they made agreements for two years out it looks like there could be a floor on the oil price thats a good thing right now. Would you, then, take it a step further and recommend to your clients to be buying the Energy Stocks bauds theyecausee been the hardest hit i know Energy Stocks have been moving a lot. The question is is energy about you trap its been cheap from a valuation perspective for a long time. Where we would focus right now is a quality theme if theres going to be good Quality Companies with good quality Balance Sheets within energy, thats a yes in our view right now. But the oil price is just a little too volatile and theres downward pressure over the long run. I think Oil Companies and Big Energy Companies need to rethink what theyre doing are they going to be involved in green energy i would be bullish on the Energy Sector in the longer run, but that remains to be seen. Huh samantha, thank you for calling in jpmorgan asset management. Thank you to alli as well. Well have her back on david. Sara, thank you on the other side of this break, well be joined by wendy, the ceo of Ridgeback Bio therapeutics o fre moving into trialsor anral antiviral to treat the covid virus were back at this welcome back time for our etf spotlight were looking at financials. Look at the bank etf, kbe. Down more than 30 j. B. Morgan chase and citi group along with the overall market. Well take a quick commercial break. Stay with us as we explore another company thats working on an antiviral treatment to covid19 well be right back. Welcome back while a vaccine to inoculate against covid19 may be as much or more than a year away, there is hope that antivirals to treat the virus will be available sooner for more on that story, lets bring in the ceo of Ridgeback Biotherapeutics in they are moving into human trials in the United Kingdom for the oral antiviral that would treat covid19 wendy, what can you tell us in terms of your expectations here in treating what i know is going to be first, healthy patients in your sample . David, thank you for having me on the show im happy to give you an update on the potent oral antiviral against many coronaviruses including the virus that causes covid19 running through a recent timeline, we received update clearance a week ago to initiate human studies with 2801. On thursday, the mhra, the uks fda, gave us the approval to go forward with the human studies the next day we screened 80 people and dosed our first person with the drug this morning. In the study were looking to confirm and were also looking to find the proper dose needed to achieve the blood levels that we know will kill the virus. I must say that all of this is a result of the tremendous effort by the fda and the mhra who worked tirelessly and efficiently to put a multimonth process into i want to stop you there if i can. I think timing is what everybody is focussed on youre moving very quickly youre in trials now youve just begun. What are your expectations in terms of moving from what i know is a period where youre trying to understand the dosing to actually using this in people who have the virus to answer your question easily, we plan on doing the phase one work and confirming dose in the next few weeks and then moving to patients immediately. And this is being done with a team of people from Ridgeback Bioand people working around the clock seven days a week through easter, passover, good friday to make this happen and the fda is also focussed on the protocol and watching these tests . Working in conjunction with both the uk i know is where youre doing it but the fda has signed on the fda has been tremendous the commissioner has been helpful. We plan on initiating studies in the u. S. Very shortly. Why are you positive on why do you think you have a chance here so the data that we have to look to is our animal data which in many lethal coronaviruses in all that we know of, this drug is incredibly active its an oral drug. Thats really important. Because if you really want to fight a virus, you have to fight it at home our goal is to keep people out of the hospitals, and out of the icu. The only way to do that is with an oral drug going to your doctor, you dont feel well and you get a fiveday treatment course, you stay home. Were hoping to turn this vicious virus into the common cold in order to do that, and everybody hopes you have success here, you also would need, id think to manufacture at scale. Given the timing constraints, the need for this is as soon as possible, what are you doing in terms of ramping up manufacturing . So ridgeback has a history of manufacturing at risk, and when i say at risk, that means manufacturing in advance of efficacy data. We did that with our ebola antibody and will do that here there was money allocated toward this in the cares act is that available to you are you willing to undertake what i would assume is a costly ramp up at risk the whole way . Were grateful to the president and congress for passing a cares act. This is a perfect effort of bipartisan effort to provide funding for diagnostics and treatments and vaccines. Weve been on the phone with Congress People and senators focussed on success. We submitted a full proposal to the federal government in advance of the cares act, but we have not heard anything back you havent heard anything in terms of funding available for you to ramp up in anticipation of the drug showing success in trial . Correct but the reality is that we will do whatever we need to do to support this drug and help with this virus we want to beat the virus. America wants to beat the virus. The world wants to beat the virus and well do our part. What about mutations . You hear about this as a possibility. That the virus will constantly be mutating. If your antiviral shows some success, will we know it will be successful come the fall as well if, in fact, its available as an oral medication so the beauty of 2801 is it works across coronaviruses every coronavirus weve tested it on, it works. And finally, just back to the timeline youre hoping to move in to trials with people who actually have the virus when . Our goal is to get into patients by may. By may. Okay wendy, appreciate you taking time with us good luck, obviously we certainly are rooting for you. Thank you. Thank you so much, david. Wendy lets get an update on the coronavirus. Good morning good morning. Good morning, everyone a sailor aboard the uss Theodore Roosevelt Aircraft Carrier died of coronavirus this marks the first death resulting from the outbreak aboard that ship 585 people, more than 10 of the ships crew tested positive for the virus. Pelosi and schumer say they will not back down from their demands for added stimulus spending they want more money for hospitals and states to be added to the request for emergency funding for the Small Business loan program many spain police are handing out 10 Million Masks to people returning to work for the first time in two weeks. The focus is on factories and Construction Office workers are strongly encouraged to continue working from home. Finally, Boris Johnson focusing on his recovery. Not government work after getting out of the hospital yesterday. This is according to a spokesman. Johnson thanked the National Health service for saving his life no word on when johnson expects to get back to work. Happy to hear hes out of the hospital and focusing on his recovery back to you. Thank you. Keeping our eye on this selloff on wall street dow down about 450 still to come, meg whitman well take a quick commercial break. Stay with us welcome back to squawk on the street. Checking the markets after strong rally last week giving a little back this morning and we continue to move lower with the dow down about 450. The nasdaq down a percent. As far as where the pain is this morning, the hardest hit groups are the banks. Down 3. 25 utilities and the Market Investors and people on our air continue this debate of whether weve seen the bottom and whether with the peak flattening we hope in the u. S. In terms of covid19 and all of the policy support that could be a reason to buy the market and look toward the other side or if its a bumpy road to recovery economically, Company Earnings and of people wanting to leave their houses you asked about the feds Balance Sheet. Weve surpassed 6 trillion. Thats representative of just how many big guns the fed has pulled out during the course of this crisis in terms of supporting the bond market the funding market even the muni bond market theyve intervened in. Thats a curve that continues to steepen at an exponential rate and one that investors like to see for now happening which is just a sign of stimulous and how all in the fed is. And on the way up to as high as 8 trillion by the end of the year i think thats a widely held potential view there sayre are, you point out those who are viewing things positively and then there are those concerned that its hard to understand exactly how we all get back to it i obviously there are many regions of the country that are not suffering nearly as greatly as we are in the Greater New York region. But nonetheless, theres still a question as to the willingness of people to go about doing tasks they once did. We dont know the answer there fully in terms of how willing people are going to be to entertain go back to entertainment of some kind go back to restaurants and sporting events. Get on airplanes, go to conferences and conduct business regularly. It is still a large question as are so many of the others. Im looking through my notes in terms of how many retailers will reopen how many people paid rent for april . What is the china supply chain going to look like how much does that have to change so many different questions that you come across during the course of the day as people try to understand what life looks like when we do get to the other side, so to speak. Absolutely. And the question is how quickly can we rebound if we start to open parts of the economy pieceme piecemeal. President trump saying may first is the target. What does that look like the consensus in the Economics Community is Third Quarter well start to see growth. But its low the numbers have been moving lo lower. It will rebound in the second half of 2020 thats the big question mark as well as what earnings will look like and how far theyll be down for 2020 and whether the market is right to focus in a 10 decline versus 30 as it was pointed out which tends to typically happen in a recession. Theres so many unknowns weve never been in a situation like this before meantime, in an effort to help flatten the curve, a well known grocer is instituting new hours and suggested times for shopping stews is asking customers to come earlier in the day or later in the afternoon and asking all customers to wear face masks joining us once again is the president and ceo of stew leonards. Its great to see you. Good morning good morning. How are you today . Weve been talking about trends in got traffic and how the world is going to look different in the next few months talk about the policy measures youve been instituting and to what degree are you seeing compliance from shoppers so far . Well, its completely changed shopping you were just talking about how its going to go back to normalcy again people are coming in and buying twice as much as they used to buy. Eggs have doubled. Butter has doubled cream has doubled. You can definitely see that people are home cook right now and theyre shopping less frequently but with bigger shopping carts another thing that weve done, we have all our team members Wearing Masks every single day everybody working at stew leonards does that. Also wearing gloves and we do this super steep cleaning every day with a two hour blitz. As one of our adviser doctors told us, probably the cleanest place you can be right now is at stew leonards the toed show has Doug Mcmillen on. He said in five days he sold enough toilet paper to supply every american they say buy what you need, and then they say were having shortages on pork. Youre going to see certain suppliers have crunches. Overall, i mean, look, the food is plentiful that were getting. Ive talked to our people growing fruit in california, corn in california ive talked to everybody around the country, egg farmers theres plenty of food in the chain. Dont forget all the restaurants are closed now so all of the food that was going to restaurants is now coming in to the supermarkets. Whether the supply chain is handling it right is another question were getting direct right from the farmer we dont see any shortage even in pork right now. But you mention that some supply chains were vulnerable. Is u. S. Meat one of them what other specific can you tell us in terms of where you might be a little bit worried that if we start to see more closures of production facilities it could be a problem well, thats a big issue right now. Getting the product produced the only tightening weve seen is chicken right now people are buying a ton of chicken. As far as fish goes, its coming in from the docks fine the meat we havent seen any problem with the egg supply, eggs have crept up a little bit in price, but other than that we havent raised any prices. We havent changed any prices. So were not seeing any crazy things going on in the market. But the supply chain is definitely a challenge grocery employees have become heros. They have to come to work every day and theyre on the front lines and they have to feel safe in their jobs. Whats morale like and what have you been doing for their employees to make sure that they feel comfortable doing this . Thats a great question and you know, ive been in this business 50 years now. Its a Family Business and one of the things people are really important to us one of the things we are just complimenting them all the time for the great job. Were protecting them as much as we can plenty of hand sanitizers, masks. Were teaching them about social distancing they do have to work together. They sit apart even in the cafeterias and were giving them 2 an hour raise, and everybody, and weve taken care of the managers were trying to keep our people motivated and look at the big picture here we are doing america a service right now by providing all this food, the fresh meat and fish, but also we can flatten the curve here at stew leonards if we can educate our customers on social distancing. By the way, i did a little Youtube Video on safe shopping i took a shopping trip through stew leonards and showed you the viewers today, how you can shop safely when you come to a supermarket. How do you think behaviors will change for good after this and are you going to operate the store differently or the same way you are now even after the virus has passed you know, that is a great question ill tell you one thing were looking at now is i think the whole delivery aspect of food has changed. It used to be people wanted to come to the store. Wed have big demos. It was like a Farmers Market in here weve had to stop all the demos. You put plexi glass up in front of the Service Areas and also right now people dont mind getting curb side pick up, as we call it cow side we have a big cow out there. Or delivery at home. I think youre going to see this a big increase i think in Home Delivery and just picking groceries up at the food store in the future. Staew, last one what do you recommend people wipe down when they bring the groceries in the house how much human hand has touched a product in the prior three days usually well, we have a doctor for in long island who works at a major New York Hospital on covid19 patients advising us he told us when you get a package home, you bring something home, you dont have to, but wipe it down its just good practice. The main thing we want to do is make sure our hands are clean and we dont touch our eyes, nose, or mouth when i come home at night, i literally take my clothes off even before i walk into the house and wash them right away they say you dont really have to, but it just makes me feel better and the other thing is i just wipe all my packages down that i bring in from the outside. And the most important thing, you know, a lot of town and cities have banned plastic, and wipe down those reusable shopping bags. You know, when you come back in the zerstore, those are really d tips and people should not freak out about going freesh ri shopping im in the store every single day. I would have my mask on if i wasnt talking to you right now. But you can navigate your way through a grocery store. See . Were keeping everybody six feet away we limit only 50 of the customers to come in to the store at once. Were trying to do our part to flatten that curve stew, we appreciate it as always its great talking to you. Thank you very much. Well see you again soon stew leonard junior. Check out that Youtube Video. Absolutely. How to safely shop for gre h grocerie groceries. Energy and oil are a bright spot Brian Sullivan joins us with more some context around what we saw this weekend well, what we saw was supposed to be a relatively easy decision we get together, have a virtual meeting, a couple hours everybody out. Four days later opec plus which is 23 nations opec 13 plus another 10 finally got to a deal so much around this. The g20 meeting on friday as well of course, thats the United States whats the actual number i think thats what everybody is trying to figure out ive done some math. I was on a call last night heres where i think we are with oil. Okay, opec plus 9. 8 Million Barrels a day cut for the next months 8 million and then 6 million next year. G20 is murkier. I call them the bank, banc nations. Brazil, america, norway, canada. Those countries, they dont have an opec. They dont have a national producer, mostly, brazil is the closest along with norway. Its not like the u. S. Can say exxon, you cut this and you cut that we cant do that its against the law what were look ageing at is ane 3. 7 Million Barrels based on natural well decline from them 9. 7 plus 3. 7, 13. 4, maybe get to 14 Million Barrels a day unprecedented in modern times. But when demand is down 25, 35 Million Barrels a day, thats still really bad math, but i guess it slows the pain. Hard to be in a place where Production Cut is half of what demand is taking on. As we head to break here meg whitman is going to join us. Remember the streaming app, quibi . It launc it launched last week. Well get the latest numbers on the other side of the break. When we first opened our doors, it didnt take us long to realize. We werent in the car business. At lexus, we were in the people business. We needed to be helpful. Respectful. And compassionate. To treat people like guests. Its what we all signed up for. And now when people need this most, we will do what weve always done. Take care of people first. The rest will follow. Robert shiller says a meltdown is far from over. Find out morone trading nation. More squawk on the street coming up. Our Retirement Plan with voya gives us confidence. They help us with achievable steps along the way. So we can spend a bit today, knowing were prepared for tomorrow. Wow dad, do you think you overdid it maybe . I dont think so. What do you think, peanut . Nope honey, do you think we overdid it . Overdid what . See . We dont think so, son. Technically, grandparents cant overdo it. Its impossible. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Welcome back last week the short form entertaining streaming Company Launched the product, quibi. We talked to meg whitman about it she joins us to fill in on how the week went. Its good to see you under these unusual circumstances. I thought of your company, of course, given it would have seemed that it was wellpositioned to capture people who were on the move. And we are in an economy right now in which people are not on the move theyre home did that hurt the launch at all or were you still pleasantly surprised . Well, first, great to see you again. As you said, under these unusual circumstances. But it didnt hurt us at all we had 1. 7 million down loads in the first week it exceeded our plans and expectations and the app is very popular. I have have a to the say its one of the most successful launches of a completely new brand and app. And interestingly, we did see that people are watching quibi 7 00 in the morning until 7 00 at night in the inbetween moments. We thought it would be out and about commuting, well it turns out people have inbetween moments at home. Between zoom calls and taking care of the house. We dont think it hurt us. Were delighted by the launch. And what are your expectations from here imean, obviously you want to try to have this behavior in those using it you are offering it, i believe, at a discounted or free rate for some time. Always a question as to how many people will stay in the service. Do you have any sense for that or is it too early its very early we decided when covid hit we had to make a host of changes around the launch, but if you signed un, wed give you 90 days free trial we thought it was the right thing to do during this unusual time that resulted in a great chart we were the number one Entertainment App in the Google Play Store and number two Entertainment App in the app store. Only behind tiktok, and so well see where we go from here. This cohort will know when they three months from now, well have indications early on. We know people are watching a lot of content anyone who starts a show 80 watch it through the entire First Episode which is unprecedented. And theyre also doing a lot of sharing. If they like the show, theyll share it with a friend we are seeing the beginnings of word of mouth. Right now, youve been preparing lost you. I think we lost david go ahead its sara eisen ill jump in with a few of my own questions. I know you built this platform for mobile only. Are you considering given the new realities, expanding it to ott or smart tvs as well so we thought about that up front, but we really wanted to get it right for mobile, but now the Current Situation were talking to the Engineering Team about we had always planned to be able to cast to your tv, and so were going to see if we can accelerate that in the engineering road map well eventually get there it was never a part of the launch if wed known about covid, maybe it would have been yeah. No, its changed a lot of realities for so many businesses meg, what about the Advertising Market do you have concerns there with warnings already out of so many of the social media giants and others about the recession we are now in and how thats going to impact advertising . Yeah. You know, we sold out our year one advertising to ten incredible category sponsors so they are super enthusiastic about advertising on quibi, you probably know our patented technology is called interestingly, they are making advertising using turnstile. Theyre excited about a new way to reach this audience while theyre focussed on their mobile phone. Listen, were set until april of next year. Obviously well start selling year two advertising in the fall well see what the environment is like. If were on the path were on and reach the audience the advertisers want, maybe well be at the top of the platforms they continue to advertise on and listen, you know, theyre excited about our top shows. If you go to the app, you can see trending which is our most viewed apps. Ones that are rising and theyre great shows like flipped and most dangerous game and murder house flip and punked and survive. Lebrons james documentary is one of my favorites. The advertisers appreciate the diversity. All day long we talk about what its going to be like to reopen various businesses. A restaurant, factory, office space. What is the scenario for a production set what kind of precautions need to be taken how much of a crew can you get on and when does that start filling your backlog in terms of product . Well, the good news for us is that we bank a lot of content before we launched because we werent sure exactly how much we would want to pull forward or what. We were good about getting movies and chapters and our unscripted and documentaries really banked. We have enough content of that kind of show through november of this year. So were in good shape there and then our daily essentials which is daily news, sports, weather, esports, gaming, those are produced every day and you know how youre doing tt its working and its high quality and i think its working really well. It does create challenges as you know the movie industry in general is shut down like every other business, no one is clear when the sets will open up. We hope soon and i know that all of the community in hollywood hopes that as well First Priority is take care of Peoples Health and make sure everyone is safe yeah. The other question from me, meg, weve seen a lot of Analysts Research on Media Companies in gent general and across product categories people are loading up on pantry items and news country content. As this goes on and Household Budgets come under strain, they will stop pantry loading on alcohol and cable and content. How much do you worry about strain on subscriptions as we move into the late summer, lets say . Sure. Listen, i think the Economic Situation for many people in this country is quite challenging. So we have two choices, 4. 99 90 days free for the next three months people will decide what is necessary, what they enjoy they will certainly be belt tightening and you will see what happens. Its impossible to predict, but i think the fact that this is mobile only, very personalized and relatively inexpensive i think will stand us in good sted theres going to be tough roads ahead, im sure. How do you think about the question as to how many streaming services are too many . How many are we going to want to pay for with so many new ones like yours coming online in. Yeah. Lots of streaming Services Long form content made for the Television Set we think were different its mobile only i suspect the consumer will pick one or two Longterm Services like the great brands out there and pick a Music Service for sure, and i think theyll pick quibi because there are three different use cases, three different kinds of content, three time availabilities. If you have an hour and a half you might want to sit back on your couch and watch tv but moving about your house or out and about you want to be on your mobile thats the niche we think we fill its interesting, i dont think people make a choice between a Music Service and ott movie service. Both fill a portion of their life and we think that will be a third one in that group. Finally, meg, theres been some reports about legal action demanding that the company be forced to stop using technology that you allegedly stole from this interactive Video Company can you talk about turn stile and what should investigators know turn style was invented at quibi by our own engineers and we got a patent. You know this, when a new company launches, these kinds of suits happen we believe its meritless and were going to fight it and we feel like weve got a really good case. What i can tell you, we have a patent and we invented this by ourselves. Meg whitman, quibi, cant wait great thank you very much for having me its great to see you all again. Take care. We lost david on that one quick programming note as we head to break, dont miss an exclusive with billionaire investor leon black, 4 00 p. M. Eastern time he does not do broadcast interviews hardly ever, but we will talk to him about the markets and his philanthropic efforts to support health care thdodos n yk. E w wn 530 well be right back. Being prepared and overcoming challenges. Usaa has been standing with them for nearly a hundred years. And well be here to serve you for a hundred more. And well be here to serve you for a hundred more. When you take align, you have the support of a probiotic and the gastroenterologists who developed it. Align naturally helps to soothe your occasional digestive upsets 24 7. So where you go the pro goes. Go with align, the pros in digestive health. Just want to give you a quick check on shares of gilead, their experimental drug remedies ver over the weekend, an uncontrolled data group study in compassionate use for 53 patients all of which were hospitalized and seriously ill with covid19. The upshot was 68 of them showed improvement 18 were saying that was a better outcome than what was expected helping gilead stock and important for the overall market again, dont miss our rare and exclusive interview with leon black of apollo. Quk le srtnesawalytas xt at t has connected us every day for over 100 years. And were here for you especially now, doing Everything Possible to keep you connected. Through the resilience of our network and people. We can keep learning, keep sharing, keep watching, and most of all, keep together. Its the job weve always done. It is the job we will always do. Yeah, everything is runningis smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. Chloroquine. Welcome back stocks falling today with every s p sector trading lower among the worst performers this morning, real estate, still outperformings the s p on a year to date basis. A few of the Health Care Reits reading lower like well tower. Theres weakness in shopping operators including Simon Property and vornado, down between 5 and 7 carl, over to you. Thank you very much good morning, everybody. Welcome to squawk alley. Im Carl Quintanilla with Morgan Brennan and dominic chu. We look at the market down about 520, worse day since april 1st a lot to watch the oil deal, of course, this goldman call out of david kostin, some downgrades of deere and caterpillar and now the president saying on twitter it is the white house that has the authority to open or close states, not the governors. Thats going to get interesting. That is going to get interesting. That is increasingly the focus of not only the American Public but of investors in the markets is how and when were going to start to see the e