Transcripts For CNBC Closing Bell 20240713

Shutdowns until at least may 15th we have a great lineup today. In just a few moments, well speak with Patrick Harker about what will take to get the economy back on its feet and later, Alexis Ohanian will join us hell talk about his investment in a company thats help iing Small Businesses navigate the loan process, which is one of the issues lets focus in on the stories we are watching in this final hour of trade wilfred of course covering the bank earnings. Morgan stanley the latest. Meg has new details on testing but well begin with breaking news out of washington where President Trump is expected to meet this hour Via Teleconference with governors. What are we expecting here that conerer sags is about to get underway where President Trump is going to share with the nations governors what the white house and its medical team have arrived at as far as the guidelines for reopening the economy. The Daily White House briefing is going to take place at 6 00 p. M. And what President Trump on twitter is touting as a major News Conference to talk about the reopening, opening up america again. This is going to be a process, but President Trump wants to show that he is in front of this process and the white house is leading even though the implementation will fall to specific states. To that end, the guidelines that were circulated this week in part had a structure that would play out over the next several weeks. On may 1st, he would see a nationwide ad campaign telling people to keep working from home and limiting travel even as some of these low risk areas could see we lost kaylas signal. Well try to get it back and clearly, well await any news from that president ial teleconference with the governors. In the meantime, watch iing the bank stocks. Financials again at the bottom Morgan Stanley earnings hitting the tape this morning. Wilfred has the highlights noticing the entire group is down more than 9 . Big underperformer this week and Morgan Stanley rounded off the big banks earnings this morning, top and bottom line miss the stock lagged before the open compared the rivals but is ending the session leading the pack only down slightly on the day. That is despite the fact that strength in trading revenues, which was up 30 year over year, 52 quarter over quarter and hedge gains were more than off set by mark to market losses and credit deterioration that was followed up by a further dose of realism from the keceo on the Earnings Call were in a wild period. Going to have negative gdp of i dont know, 30 , so shortterm, anybody, i dont mean to disparage anybody, but a ceo who stands by their shortterm targets set right before this virus hit, i dont know what planet theyre on. We will not hit those targets in the Second Quarter that i can promise you we did not hit them in the first quarter. But gorman in with dimon is the most down beat while bank of america, Goldman Sachs calls were the least pessimistic none were bullish of course, but why the relative share price outperformance today for morgan stan ply it applies to Morgan Stanley, too. The answer, rates. Falling sharply over the last couple of days Interest Rates have and have had the least exposure to net interest income. Where as those would be highest exposure like wells fargo, like the regionals have declined the most so far this week. And sara, year to date, heres a snapshot for you wells fargo down about 50 the ten year treasury down about 68 in terms of price. Painting a dire look for the economy, but the broader s p 500 just down 14 so big disconnect there. I dont know which is right, but theres certainly a gap for that to narrow moving forward and of course the tech sector doing even better. Nasdaq only just negative year to date. Absolutely. And positive this week as well its been a standout im wondering what youre getting out of these Bank Conference calls about the outlook for the economy. James gorman talking earlier on cnbc, pretty much writing off the idea that were going to get a v haped recovery totally writing it off. U as best case scenario. Probably between a u and an l. Even if you had some i alluded to where they were less pessimistic about where theyre own write downs, their own provisions would get worse or not, even they were still pretty down beat about the prospects about the economy and sara, it comes back to that disconnect were getting when we see the understood lying data for unemployment claims but see stocks like metropolitiicrosoftt date theres a big gap. Perhaps you could make arguments of stock specific reasons for that, but certainly from the bank ceos this week, not very optimistic that the economys about to rebound sharply all right, we want to get back now to kayla in washington. We lost her shot earlier you were just giving us some details on what to expect when it comes to the plan to reopen President Trump hosting governors in teleconference this hour the general gist according to a partial plan circulated earlier th earlier week is essentially over the next six weeks, the administration feels it would be able to get a better handle on ark, if you have a controlled reopening of certain businesses in low risk areas, what that does to the velocity of transmission of some of these cases, b, how quickly can you ramp up testing and to how many people can you make those tests available and then c, how effective does social distancing in some of these moderate risk communities, how much does that help and where are they on the curve . Thats general ly the contour o this conversation at the moment. Reuters is report iing the media team has signed off on the plan, but that they are data driven and flexible guidelines meaning that if the data changes, the plan changes thank you so much for that and getting the kek back up and running. To the virus itself now, new reporting from meg on the state of testing in america. What can you tell us kayla was talking about part of the reopening plan hinging on testing and its just not there yet. I was really surprised to hear the Clinical Laboratories association saying theyve now eliminated their backlogs and have considerable capacity thats not in use. So these companies right now have capacity that they say isnt being used Companies Like quest and lab corps for example. They say they can do 45,000 for quest per day. Lab corps, 65,000. Laboratories can do 20,000 they say they are at capacity and are trying to expand that. Meanwhile, you have universities like rutgers with the new saliva testing. They can do 10,000 a day stanford at 2,000, but if you add these up, youre getting to about the number of the tests per day that the u. S. Is doing and this doesnt account for a lot of other tests comeing from other places around the country, so there is capacity that isnt being used now and if you look t a state by state breakdown of how many tests are being run, theres tremendous inequity happening. States on a per capita bases like new york, louisiana, rhode island, they are doing 2700 tests per 100,000 citizens for new york other states like texas, virginia and kansas, they are not doing nearly as much so guys, we are seeing this real inequity, these differences across the system and a real hocking stat to hear that Quest Diagnostics and lab corps might have capacity thats not being u used right now so meg, whats the solution here is it to have some sort of federally organized testing system instead of letting the states go at it and private companies go at it on their own . Does it need b to be organized better ive heard a couple of different potential solutions for this one is that yousibility about w supply, the capacity is is, to make sure youre matching supply and demand some things can happen there is constraint on supplies of swabs and reagents and so those need to be able to get to labs for them to be able to do to tests Big Companies dont seem to have those supply chain issues. Theyre managing them close ly, but the smaller labs, academic and hospital labs, they have those issues so certainly at least more visibility and some help coordinating on a national scale, everybody says is neededed one other question, which is not quite on the capacity, but on the type of test. I mean the u. S. Doesnt have a universal test thats applied across all Different Companies and all different states, right . Is that different when you go to countries like germany that we discussed before who have done this quite well, where they have a National Health care system . Is it a universal test where you kind of know the results are certainly comparable within that country . Thats a really good question there are a lot of different platforms available in the United States and of course everything i was just talking about is the pcr test to detect current infection and these Antibody Tests are also coming online im not totally sure how it works in germany, whether they have different tests in their system, so ill check on that and get back to you. But these pcr tests done by the big national players, people general ly trust the results fro those. Thank you as always after the break, our exclusive interview with Patrick Harker. Well get his take on todays jobs numbers, the feds actions so far and when the economy will be back on its feet. Welcome back 45 minutes left of trading new york fed president John Williams speaking with the Economic Club of new york today saying the feds work quote not done when it comes to repairing the economy and there is more pain to come Philadelphia Fed president , Patrick Harker, joins us now exclusively by phone president harker, thank you so much for phoning in. Thank you, r sara thanks for having me first on those shockingly horrible jobless claims numbers that we got again today, how do you think about how many of those job losses are temporary and could come back when the economy reopens and how many of them are just lost for good . We dont know its a little too early to tell, give an exact answer to that, but its clear this unprecedented shock to the system and not a financial shock, has cause d a lot of dislocation in our economy and in our society so we dont know that answer i think many of those b jobs i would say the majority are going to come back but in some cases, slowly. As we reopen slowly. Well talk about the reopening, but as far as what new york fed president williams said that the feds job is not done when it comes to boosting the economy, you guys are already at rock bottom zero Interest Rates with an open ended quantitative easing what else can the fed do to help the economy . I think theres two things we can do i agree with my colleague, john. One is weve put a lot in place in terms of creating facilities that bring the liquidity we need to have the markets function we just need to continue to execute on that. To bring those markets back to functioning. Were not going to bring them back to where they were, dont get me wrong this is a crisis, but we can help those markets to function and once they function, the economy is to chime out of this Health Crisis can do that in the most efficient and quickest way possible how impalatable was it to you and some of your colleagues enacting or approving some of the measures the fed has gone as far as doing already when i think of buying nonInvestment Grade bonds for example, even though you thought it was necessary, was it not palate bable to have to go that far . No, i mean we are faced with a situation, we simply have never faced. Where the entire country is doing the right thing in terms of trying to contain this virus, but it has terrible effects on individuals, Small Businesses and really all across the economy. So these are emergency measures. And these wont last forever as were able in a proven fashion to unwind these measures, we will, but we had to do what we needed to do to bring the markets back to functioning. You said to sara that you felt your instinct told you the unemployment spikes weve seen of late would be temporary what gives you the hope or confidence that thats the case and how worry ied are you that weve seen such a big spike already when some of these programs like the ppe Lending Program designed to prevent that spike in the first place thats really a choice that individuals make in terms of unemployment and ppe that is playing out in terms of people and individuals firms making choices there but lets use pennsylvania pennsylvania has the largest spike of unemployment claims early on the rest of the states are now caught up why . One of the reasons is Governor Wolf in pennsylvania stopped all but Life Sustaining construction quickly. A will the workers applied for unemployment i believe coming from a family of construction workers than when those jobs are are able to, you can get back on the job, people are going to do that pretty quickly because those Construction Projects need to get done so i think throughout the economy, there will be others like restaurants and so forth that will be slower to open, but im confident that a lot of the projects that were in training, were going to get back on those and get them done and those jobs will come back so we are talking a lot about the reopening. Some of your colleagues at the fed lately are talked about the need for more testing to get the recovery on track and Consumer Confidence up. How do you envision this needs to happen . To get the economy working again . So the way i think about it, weve been partnering with some leading especially deemologists to think about this. Its going to vary by geography and sector of the economy. So one can imagine you know sectors of the economy where you can easily create social distancing like in om manufacturing plants and so forth, coming online before say large gatherings, which would probably be the last thing to come online. That will vary by geography as this virus sweeps through the nation its not sweeping through all at once if were prudent and avoid doing it so quickly because the lesson from singapore, if you try to do this too quickly, you can get that second wave and then you have to reverse course better not to reverse course so how quickly can that happen accord iing to your conversations at the philly fed and what shape are we talking about . We mentioneded earlier that james gorman says a v doesnt look realistic is there still hope for that everybody likes letters and i trooed to use greek letters, but gave uchl i thiup i think its more of a, were going to hit a period where its going to be pretty bad its pretty bad right now and your hearts go out to the people all across the country and we will climb out of it. Its not going to be a sudden bounce back. Just doesnt make sense that there are going to be Certain Industries like travel, tourism and hospitality that will take some time to recover what weve found through our research, were launching a series of reports, on how this is affecting low income communities. This week, its on whos being imacted. The next are are the businesses and the third are the communitys geographies and what you know is the disproportionate are with low income people who lost that job at the restaurant or in other Service Industries president harken, ive been on the banks Earnings Calls that sara referenced this morning. Pretty down beat outlook for the economy. Theyre all increasing their reserves of potential bad loans. Yet on the flip side, recommitting to their dividends. So this morning, in the financial times, Neel Kashkari wrote he thought those should be suspended and even the banks should seize the moment to raise extra capital right now, while they can where do you stand on that debate for the banks so i do think that this is a time where if the banks are anticipating significant losses potential losses going forward, it is time to make sure that their storehouse is full of capital. So withstand that bad time so im supportive of the idea that broadly defined that they both retain and possibly build those capital reserves so on the dividends, will you be pushing fed chair and your colleagues to tell the banks to do that because my reading of all the commentary weve got out of the banks in the last couple of weeks and then how the buyback suspension came about, was it a lead if not an explicit instruction from the fed, will need a big push, a hint and a nudge in that direction to say guys, cancel the dividends for now. So thats obviously up to the board of governors working in concert to decide what that policy is. What i believe is its complicated issue because theres dividends go somewhere and often, especially in people lifing on fixed income, they rely on those dividends. So this is where its not just easy position to make but i do think more broadly than just dividends, banks should fill their storehouse full of capital to get through this period you mentioned president harker a few moments ago about how many extraordinary programs the fed has put in place to keep markets functioning and the entire Financial System functioning better and we have seen improvement on that front after you guys stepped in to everything from munis to treasure aries, to funning markets, the credit markets. How tentative is the rebound right now . Clearly people have started buying since the fed b has been buying, but how solid dut that look to you at this point and is there a limit to as far as you can go here . Were still in early days this will play out over time but i, it gives me some comfort that we are starting to see those markets functioning. We are committed to doing what it takes to get us through this period in American History so im fully committed to that. There are some complaints though and wilfred alluded to this, that the fed by going into junk rated debt essentially is Rewarding Companies for taking risky behavior how are you planning to defend the fed against those kind of criticisms so first and foremost, were not trying to pick winners and losers were trying to get markets functioning. You have to say that loud and clear. Thats not our role. But reality is its through the commercial paper facility even if were investing in Investment Grade corporate bond, some of those will be downgraded so we have to be prepared to deal with those securities over time president harken, we mentioned how hard it is to pick what shape letter the recovery is going to be, but can you give us a broad estimate for the time frame . Do you think all of 20, 21, 22, were unlikely to see the federal funds rate increase again . I think in term of monetary policy, were going to stay low nor until we really see the economy starting to recover back to our mandate exactly lung that is, this is really a function of how quickly medical science and industry can put in place the tools as you were talking about earlier, the testing, regimes, the vaccine, et cetera. To keep the American Public safe the worst thing we can do is in my mind is rush this and were in a situation then where we could have a significant rebound of covid19, which would just set us back. We need to do this in a way that keeps the American Public safe and gets us out of this hole and quickly as b possible. Thanks so much for joining us thank you the president of the Philadelphia Federal verve therreserve. Dont miss b cnbcs exclusive interview tomorrow morning with John Williams. 8 30 a. M. Eastern time time now to get a coronavirus update good afternoon, everyone. At a white house event within the past hour, President Trump promised details later today on new guidelines for reopening the nations economy we have a very Important Press Conference Today at 6 00 going to be talking about guidelines that have been carefully done were speaking at 3 00 to the governors and well be informing them and i think theyll be happy with what were doing. Were going to win this war and win it very big and hopefully very soon. Meantime, nancy pelosi holding firm on the need to expand the c. A. R. E. S. Act to include aid for hospital, state and local governments and broader relief for Small Businesses Paycheck Protection Program ran out of cash today and lawmakers have failed to reach a deal to increase funds and thousands of complaints have been filed with the Occupational Safety and Health Administration about essential work eers being expos to coronavirus due to lapses in safety procedures. The violations span Many Industries including hospitals, construction companies, grocery stores, pharmacies and shipping companies. For more coronavirus coverage, head to cnbc. Com back to you. Thanks so much for that s ps just high er, dows just lower. Nasdaq is up 1 . 33 minutes left. After the break, a growing debate about imf funding is putting Steven Mnuchin against u2s bono. Heres a check on bonds. Another drop for treasury yields today. Tenyear yields sitting around 0. 6 well be right back. Welcome back with 30 minutes left of trading, dow ticking positive the s p is up half a pe sent and nasdaq is up one and a quarter percent. Nice recovery from this morning. Russell 2000 still down 1. 3 after another dismal shocking unemployment number where jobless claims rose more than five million last week three things drive iing the ancr new data showing job losses continuing at a staggering pace. Add it up. Its now 22 Million People in the last month filing for unemployment on top of that, the 350 billion Emergency Loan Program to help Small Businesses has officially run out of funds and in new york, some hopeful cig lales as coronavirusals as coronavirus hospitalizations fall again seven states extending their shutdown into at least may 15th. A growing debate over special funding from the imf for countries in need and its putting the treasury secretary against bono and Steve Liesman seems bono has the story. One of the worlds hippest men sparring publicly, not publicly, but sparring with one of the worlds unhippest men, Steven Mnuchin, over how to help more countries and the debate is over the very unhip question of special drawing rights or sdrs from the imf brk bono and a bunch of other charities, mnuchin saying he opposes that ill get into the reasons in a second what he wants to do is he backs unprecedented u. S. Support for debt suspension for the poorest countries. Its a special drawing right f a Foreign Exchange verve asset that countries can use its Like Central Bank money allocated to all members we reached out to bonos charity, which has been the one supporting this idea and they said one has been campaigning for it for worlds poorest countries and are pressed for support from finance ministers in the country including the u. S. Whats mnuchins problem with this he says theyre not effective at getting to the poorest countries because 70 will go to the advanced countries just 3 to the poorest he goes on to say, well doesnt say this, but treasury officials have confirmed one problem they have is they dont want iran and china to get big chunks of this without special conditions so thats why theyre opposed to it so there you go. Bono versus mnuchin. I just love, first of all, i love the story i love that youre framing it like this. I love that youre b only going to see this on cnbc. But it is a really important issue. That youre highlighting and you know i cover the imf so i hate to break it to bono, but the u. S. And secretary mnuchin has veto power here. The other thing i will tell you though and i think its important to contextualize why this is such a deal for people the u. S. Has done this incredible 2 trillion stimulus package. We can borrow very cheaply the u. S. Has rock bottom rates and Everyone Wants our debt. As all that money has been flowing into the United States, its been flowing out of e emerging markets their Central Banks just cant do what our government and Central Banks are doing and thats why the imf is so important. We often talk about their economic forecast. They are truly the lender of last resort. Its why theyre drawing up packages for 102 countries around the world asking for help and why this sdr issue is so important. Their way of getting money to other countries without Strings Attached i understand the managing director float ed this idea, so theyre behipd it as well, but how do you respond to mnuchins criticism here, which seems to be valid that you coa new allocation, which i think it has to be done, the advanced economys get a ton, you dont need it. The poorest economies get a little of it so heres your answer and i spent the afternoon on the phone with the first deputy managing director at the imf. Heres the quote and it directly tackles the answer here. As the imf membership discussed today, theres a consensus the imt could be more innovative in how it uses existing stock so in other words, wealthier countries which dont need them now could lend them to low Income Countries which would help address challenges. The imf has the framework in place to allow this to happen now and we are evaluating what we can do. Jeffrey said this is a potential solution and if we do see this, i think its a really important way to get money fast into other countries that need it so in terms of a way forward, sounds like weve got an idea in terms of it actually being crystallized we still havent found what were looking for on that front. In terms of what it all means for the dollar though, its interesting to see thisweek once again, the dollar is rallying in a way weve seen on times when the market has got more nervous yet the market has gotten as nervous as it had done in march when we saw those days. Can i interrupt you lets put the picture of mnuchin and brkono which makes this stoy actually interesting speak for yourself. How about the dollar chart i will add that you have this problem b what sara was saying of iran and china which the u. S. Seems to be reluctant to give them without conditionality, but maybe this is a developing story and were going to be following this further i know it creates an idea of a challenge to the dollar in World Markets that they would put out an sdr as we look at the picture of much ben and bono and the only thing i would say to your question is youre right to watch the dollar and it ticks higher, thats been one of the key symbols of stress in the market as this crisis had developed and it speaks to what im talking about, this rush for dollars, for pund, for anything dollar based from countries around the world what would happen if the imf program went into place, they would be offered a mix of currencies, largely dollars, but also euros and pounds and yen to mix it up so it wouldnt have an outsized effect. Thank you, steve great story. Well continue to discuss it hopefully. Coming up, stephanie link joins us with her last chance trade and after the break, chip stocks are getting break after taiwans semiconductors well ask an analyst whether the bounce can last and what it could say about the overall market dont get mad. Get e trade, dawg. Shares of taiwans semiconductor rallying today after reporting better q1 earnings other chip stocks moving higher include advanced micro b and nvidia the sector has outperformed the last month the groups up about 30 for more, lets bring in chris, analyst at Raymond James good to see you. The debate thats out there is there going to be weaker demand for semis in light of the softer economy versus whether some companies are going the try to stockpile for fears that the supply chain would damage their production in a month. Where do you stand on this debate thats right. And thanks for having me we think that certainly some of the stockpiling is going on now. And when we think that some of the customers are are doing is reacting to some of the on strzoks that have gone on around the world. That started with china in february thats moved on to other places. A lot of semiconductors had their final testing in Southeast Asia and thats caused some closures sky works that talked about the closure in one of their mexico facilities, so particularly for those companies that have holiday demand, they want to make sure they get product built as soon as possible and after that, then theyre going the deal with how much of that demand may actually fall off because of the durable economy but of course the customers dont know and Apples Stores are still closed so what demand is going the look like is going to be difficult to assess. I thought it was notable, chris, that taiwans semi stuck with its pretty aggressive plans for Capital Spending investments in 2020. Why did they do that why did they say they were doing that. Well part of that is to support some of the ramps that are happening. Right now, taiwan semi is really the producer of record for the whole sum conductor industry on the leading edge so theyre ahead of everyone else theyre supporting the ramp of apple on their new products this year, which is a new leading edge and thats going to expand coming in to next year one of the other large customers has become huawei, who is using that for their 5g infrastructure and because you know those two things are at the very leading edge, that requires cap x and because those wheels are in motion, i dont think they should have changed that chris, where do you stand in terms of stock picks at this stage . Are they going to be affected equally based on where demand lands or are there some more protected than others . We think there are some more protected. Were in the position at the moment the stocks that have product cycles have very specific to those companies and likely to be unaffected by what happens in the global economy. So one of those for example is nvidia and that has held up very well nvidia has a new product coming in Artificial Intelligence Data Center Chips that product is just coming out now and frankly, its one of the reasons also we believe that taiwan semi2 is good part of that was nvidias ramp and thats followed by some gaming products in the back half of the year. Thats something where even though global gdp is going to be down, that helps another one is Analog Devices thats exposed to some of the 5g infrastructure we think that continues all of our checks thus far are that 5g infrastructure, which is mainly happening in china right now, seems like its continuing pretty well. Chris, thank you for joining us thank you weve got just about 17 minutes of trading dow positive by about 30 points. This is the last commercial we are going to take before the close. Up next, full uninterrupted vege of the last few minutes of trade when we go inside the market zone. What do you see . We see a billion more people breathing free. We see access to fresh food being the global norm, not the exception. We see homes staying cooler, without the planet getting warmer. At emerson, when issues become inspiration, focusing core strengths to create a better world isnt just a result, its a responsibility. Emerson. Consider it solved. 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. 14 minutes left in the trading day. Joining us for our last chance trade, stephanie link. I hope youre doing well. Of essential medicinal products. Thing like infusion pumps, renal replacement therapies, things that people absolutely need and they have very limited exposure to elective procedures only about 10 is elective, so less exposed to discretionary buying if you will, and by the way, less than their competitors. Great management team. Theyve done a great job executing on their plan. Its been growing the pipeline and very nicely. So i think youre going to see mid single digit revenues. Operating margin growth. In fact, their goal is to go from 19 last year to 23, 24 by 2023 all that translates into good earnings growth. Probably upper Single Digits maybe low double if we see a recovery in the economy and the Balance Sheet is strong. 3 billion of cash on hand and they have a 2 billion new credit facilit facility i think its a quality name. Its not cheap, but i think you get what you pay for on this one. Its up 3. 8 today. The broader markets up 0. 5 as we head into the closing bell market zone. Commercial free kovrcoverage stephanie link is with us and Alicia Lavigne as well a warning from elliot management, paul singer today, saying the bottom may not be in for stocks in a new letter to investors. He writes our gut tells us that a 50 or deeper decline from the february top might be the ultimate path of global stock markets. Of course we went down about 35 from peak to trough and were well above that level right now. Alicia, ill come to you first, if i may clearly, some stocks like banks for example, are down a lot more than the 35 figure. Well fargo is down 50 or so year to date is that therefore enough that some stocks have gone that far lower or do you agree with singer that we need to see the broader markets decline further still . So i think we are headed for more of a decline from here, but i think the bottom is probably in only because of the gigantic bazooka that the fed has fired d at the current problem and what weve learned from the previous crisis is that you invest a long side the fed the feds protecting you its protecting a lot of Asset Classes here so therefore i think the bottoms have been reached. Now there are sectors that are just destroyed here. Which is the other point this is really an active management environment where the buying may not get you very far. Because we have a situation where you may have manufacturing rebounding faster than services and so to that extent, i think the bottoms in. One of the points in that letter stephanie that maybe resonated to investors is singer said theres not a guild l cornucopia of shining bargains what do you think of the run up weve seen in stocks and where that leads us from a valuation perspective given the large uncertainty that is fill facing us were still down quite a bit on all the average we had a nice rebound. I come at it from look, we, we were bracing for really terrible Economic Data. We got a spade of it this week yesterday, retail sale, pruk the Regional Manufacturing series, regional claims and housing et cetera. By the way, i dont think we get better probably worse in april. The region al manufacturing series, some of the day the points in those reports suggests we might see an ism of 30. That being said, we are seeing kind of some progress on banking of the curve we are seeing and going to see much more testing. Were going to, i mean abbott going from 4 million tests to 20 in a months time is just astounding and that will make a difference so i think at this point, the bet im making is that we do see a partial opening, maybe state by state i dont think new york, massachusetts, new jersey or california are opening anytime soon, but some states can open and that will be viewed positively, but at the same time, to answer your direct question, im sure there are some stocks that are not cheap and thats what i mean like the staples and retail and utilities, r ericits, those are not cheap, but you want to have a barbell of those as well as some of the cyclicals, financials, industrial, some energy a smaller waiting in your portfolio relative to the more quality Stable Companies because when we come out of this, those latter groups are going to do far better and youre going to see much more of a recovery. By the way, those stocks on normalized earnings are very, very cheap looking at session highs here, the dows up 51, 52 points expedia chairman barry diller warning the company will need to kcut costs including advertisin spending julia. Thats right. Hes warning of the ripple of effects of a dramatic drop off in travel ad spending. The sixth Largest Online advertising category accounting for an estimated t of googles revenue last year. At expedia, for instance, we spend 5 billion a year in advertising. We wont spend 1 billion in advertising this year. With brick and mortar and restaurants pulling back their spending, there is growing expectation of a global ad recession. For facebook, google, twitter and snap lowering its price target on snap and e it rating on swit twitter. Jpmorgan downgrading twitter today from neutral to overweight, warning about its dependence on ads about project launches, as well as sports. The International Advertising bureau said it expects this ad decline b to be worse than the one in 2009. Back to you guys julia thank you stephanie, does it make you rethink some of your exposure or should investors rethink exposure to some of those names like facebook and google that rely so much on advertising with the picture changing theres no doubt that advertising is slowing thats why these stocks are still down facebook is down almost 15 year to date. So i think whats different this go round is Free Cash Flow generation much stronger than in the downturn back in 2008. I think you can be very selective. You know youre not going to catch the bottom in some of these names but i think twitter with 6. 6 billion in Free Cash Flow, i think that is very interesting. Especially with the stock coming down, especially with them restructuring their businesses last quarter, dont forget, they had a very good quarter. So i do expect ad dollars to be done, but expedia is in the eye of the storm in terms of Online Travel and merchant bookings their work in capital ed wind, so i would expect them to have to reduce the budget much more than some of these other companies. But alicia, i guess the flip point is to say dillered about cutting his ad spent to one fifth and google is almost flat year to date and we talk often about the obvious sectors that have declined line energy, but this is one of the best performing sub sectors does that not point to a level of complacency in the market i dont think its co complacency for those stocks this is clearly an air pocket and in the end, theres a deadline to this air pocket and thats really when we have a vaccine, so at worst, were 12 to 18 months ahead and markets will anticipate the end of it for before that. So for really fast growing companies, this is an air pocket in the end, our economy is going to look different on the other side even if this is only a two or three month event which i dont think, but even if it is, behavior h change. Demand patterns will change. And different sectors will come out stronger and tech of all sorts will come out stronger at the end of this. Not the least of which the risk of regulation is now off the table l were talking about Tech Companies tracking us and pinging us if we stood next to somebody whos tested positive for the coronavirus. So if this is something that the country is willing to expect, issues have bedevilled this group and flattened the multiples will be gone executives with a airlines are out with a sobering message. United is getting hammered today. Heres the reason why. Last night, the ceo said the companys schedule in may will be down 90 compared to what they expected in january havent said june yet, but probably down by 90 according the munoz. Theyve locked in a 4. 9 billion payroll grant. But the companys management said if things dont improve, job cuts are a b possibility in the fall again, it all depends on if demand starts to come back dont forget tomorrow afternoon the next deadline this time to apply for government backed loans for the airlines two quick questions from me is that very different in terms of outlook from what we heard from american outlines ceo yesterday who started to suggest that some demand had started to come back at least a little bit and secondly, if get to the point of layoffs, does that disqualify the airlines from applying for the second batch . On the second loans, we dont know what it applieapplies. In terms of whether or not united is painting a darker picture than what parker painted, youre really splitting hairs. He said the industry isnt out of the woods he said if we are at these levels with 90 in demand by the late summer, were going to have to make some tough choices and that would happen after september 30th thanks for that weve got a minute 20 seconds left until the close lets check in on the markets, which are we are pretty much at session highs or there abouts. Just touched them for the dow, which is up 90 now up 60 points or a quarter of 1 s p 500 up 0. 7 . Nasdaq up 1. 8 russell lags in the red down a half a percent, but to see the three major indices in the green as we approach the close puts us close to todays session highs in terms of Sector Performance on s p 500, quite a lot of differentials. Energy, financials, bo down. Consumer discretionary, health care and Consumer Staples leading the charge higher. So those banks really sufing the kw banks index down b about 3 Morgan Stanley was the only of the major six banks in the green just slightly. Energy continues to suffer as Oil Prices Stay at or near that 20 level. Wtis just blelow the 20 level the dollar has been strong today. Up about 0. 6 , wh wr as bond yields have been b slipping about 0. 6 on the ten year which of course has been a factor behind the decline in bank stocks as were at the close as the bell rings were up 0. 6 on the s p 500 dows up 50 points just off the session high and nasdaq completing a are trifecta of gains, up 1. 7 . A nice little recovery from earlier in the session welcome back, everyone take a look at how we finished the day up for the day and now the week. It wasnt just the nasdaq, dow closing up 29 points United Health care was the bigger winner. Boeing was the biggest drag. S p 500 had a nice little run up there into the close as you can see. To session highs and finishing up by about. 6 health care was the sector that ended up on top. Consumer discretionary and staples did well energy, financial and industrials, the biggest losers. More strength in tech shining today, up 1. 66 . Thats been one of the stories of f the week. Sharp outperformance in technology and the nasdaq and russell 2000 index of small caps lagging, finishing lower the only one of the big four down half a percent. A lot of Bank Exposure those were the two hardest hit coming up, an exclusive interview with Alexis Ohanian. Well ask him how to combat all the misnation about the virus online plus, bob pisani is standing by to break down the Market Action and meg will join us along with an analyst who thinks all the hype surrounding Antibody Testing could be premature joining us first is stephanie link and Alicia Lavigne still with us. Stephanie, in the absence of mike, walk us through the session and how we ended on a high note despite the fact we had ugly Economic Data its going to get worse i think a lot of that was expected i think that the reason we rallied is ahead of trumps speech tonight, right, because hell have a game plan in term of reopening and maybe it actually does come sooner rather than later and we know that the market is a discounting mechanism and it is absolutely discounting that Better Things are coming we dont know. Is it a six month thing. I dont think the its a year thing. At least thats not what im betting on at least not according to everything i read. Although im not the Health Care Expert if you can take baby steps and just regain a little confidence in the consumer and businesses, i think thats important because i think what happened this week with the banks, it wasnt that the earnings were so bad, but it was that the reserve charges were so large, but not large enough so they have to do more i think that lost a little confidence and a little bit of the steam. One last thing that ive noticed this week is growth versus value. Actually last couple of weeks. Growth versus value has outperformed growth is going to be slow rer r for longer globally and no inflation is in sight. That may change if we can reopen the economy, but r for now, thats why growth is working, why techs are working. Thats why the faang stocks are working. Patrick harker joined us last hour with his road map for an economic recovery. Lets listen to what he had the to say well climb out not going to be a sudden bounce back just doesnt make sense there that are going to be Certain Industries hike travel, tourism and hospitality that will take some time to recover in term of monetary policy, were going to stay low until we start to see the economy recover back the to our dual mandate exactly how long that is, this is really a function of how quickly medical science and industry can put in place the tools. So with that in mind, whats a top sector pick right now . It would have to be health care in part not just because this is a health care phenomena, but as a sector, it understood performed over the last four years because of the threat of regulation coming from both sides of the aisle and here, we think health care is the answer. I want to put a vote in for human ingenuity. If theres any efficacy at all in treating the sickest of patients, youre going to bring confidence back and get people to be willing to leave their apartments finally just to be able to go out there because theres a sense that you will be able to be taken care of if the worst happens i cant the tell you how important that is also for the market because it will put an absolute floor under this because youll be able to see the end at some point. Best performing sector year to date is health care, only down 3 . Speeblging of health care and bio tech leaders are racing to get coronavirus Antibody Tests on the market which would help determine whether we can get back to a more normal lifestyle, normal in quotations how normal could they be Brian Weinstein took an Antibody Test thinks the hype may be premature. He joins us on the phone along with meg brian, what did you find when you took the test and when you looked at some of the opgs out there . Yeah, so our report was really generated based on everybody talking about how Antibody Tests were a factor in opening the economy. We dug into that three take aways it really depends on what you can do base d on the incident of the virus in the population. So even a perfect test is only as good as the itself at this point, most people think its small in terms of percenta percentage weve heard between 5 and 15 so even a perfect test, that would be the best case that you would be able to be cleared back into the workforce secondly, we found that the rapid test that weve seen generally have much lower specificity, which is concerning it means theres a high false positive rate. Thats dangerous because it tells more people that they have antibodies who actually dont. If people think theyre immune, they may engage in riskier activity and then catch the virus and unknowingly spread it around the fda is digging in more and as they continue to do so, more euas are being granted for these Antibody Tests i think there are three in total now and two yesterday. Thats a higher bar than needing to phonotify fda and the third thing is the instrument tests like from abbott that were announced yesterday. They have much better accuracy, but require more intense logistics and are not rabid. So theyve talked about getting to 20 million tests by june. Thats great and there will be other high volume companies that will follow but the question is how do you get the samples to the lab . It requires a veinous glood blood draw then you send it to the lab. A test just on symptomatic people, so how can we imagine the logistics around the Antibody Test where everybody is going to want to be tested were talking about hurricandre millions of tests. Those logistics are important and have been a key issue with everything. Absolutely. Those are huge questions to ask and you know people are thinking about using these tests. Everybody wants to know, have i been exposed and just didnt know m i just got an email today from somebody saying they got an email from a lab saying they could get an Antibody Test as people and businesses are considering wihether to use these. Do you have tips to determine whats a better test than another or are you just saying the incidence is so low theyre not useful at all right now . They can be useful if the specificity is high enough we want to minimize the false positives. So something with the specificity if the high 90s would be idea m. That means false positives would be 1, maybe 2 anything close to 100 is where you want to be i think we have to be realistic on what they can do. Again, whatever that incidence rate is, thats wh a perfect test would be able to clear. 15 have this, that means 85 of the people will be negative on these tests and will not be b able to return to work so i think we have to be realistic about what these tests can and cant do as people are evaluating options so brian, whats the conclusion of this is it that the hope for herd immunity being a bit of a game changer in the coming months is a false hope and that aside from very selective opening up of the economy and going back to work, that we have to wait for a vaccine . Thats going to depend on the incident rate and certainly im not an epidemiologist, im not in Public Health, so i dont have an opinion on where that rate is. Were b looking at the data just like everybody else is and from what we can tell, thats between maybe 5 and 15 based on the data out there, which would take you far away from having that herd immunity. I think the Antibody Tests have a role the play, wu we have to be realistic on how valuable they can be. Theyre not a Silver Bullet theyre not going to clear the majority of the people to go back work. I think thats what people have to recognize at this point looking at the verresearch pipeline and whats coming, how far are we from reliable at home Antibody Tests yeah, so one of the issues around those at home types of tests, im just going to call these rapid tests in general theyre not cleared for at home use per se, but rapid tests in general. They have generally a lower accuracy rate or lower specificity than instrumented product would and you can kind of understand why. These are little strips that look like pregnancy tests as opposed to something thats run a large piece of equipment on a much bigger sample so im not sure that its even about getti inting bigger compa vo involved here. I think theres a limitation on the technology thats going to limit the usefulness of these tests. We would love to see them get up into the high 90s, but i think more realistically, something in the low to mid 90s is the best we can hope for. That would still result in a false positive rate of somewhere of 5 plus, which could be potentially dangerous. Meg, my question to you is havent we seen china reopen its economy without the presence of these tests . Are they really whats needed or do we just need some reliable tests for the virus and actual treatments to help keep people out of icus . Well one of the things that china is doing, i was just talking with eunice last night theyre doing a will tlot of surveillance it was fascinating about what people in china are comfortable with versus in the United States i was having a conversation with a doctor yesterday about how many of our Civil Liberties are we willing to trade off if we dont have that testing. How much are we willing to be tracked by the government for example. Well leave it there. Thank you both so much for joining us lets move on and get back to bob b for a breakdown for all of the movers today in what was a positive close, bob. It was. But it was a battle of the haves and have notes the haves, Consumer Staplesment have nots, banks, industrials, energy stocks. Boeings been trending down all week it was 156 on monday still not a good week for boeing and the banks. You know perfectly well, jpmorgan is down 15 this week it is typical for banks to dechip American Express being consumer issues, also down about 14 for the week all the Card Companies have been getting hit and on the other side, the haves, walmarts at a new high and stay at home stocks general mills. Netflix hit a new high amazon had an historic high. Thanks for that and thanks to stephanie and alicia for joining us today now the Small Business relief fund has run out of money. Up next, well ask Alexis Ohanian about whether Small Businesses will be able to bounce back from the coronavirus if the government doesnt approve funds. Were back in 90 seconds the new Lending Program for Small Businesses is officially out of funds as of this morning and they are no longer accepting applications, yet there are a growing number of Business Leaders and elected officials calling on congress and treasury to add more money to the loan program, which is intended for Small Business affected by coronavirus. A spart up that helps businesses access financing launched a too today to help Small Businesses navigate the process joining us now, Alexis Ohanian and reddit o founder an investor, wow, what a background ive been busy. Been trying to keep busy, but feeling very, very fortunate to be in a position like this right now where you know we get to work with Companies Like better fin that are working hard, helping process literally hurricanes of ppp applications in the last six weeks for Small Businesses across the u. S. Talk us through then the level of questions that Small Businesses have had, how hard they found it, how easy its been to answer those questions and i guess how concerned you are now that even if you could provide the answers, the moneys run out. Yeah, well that was news over the last couple of days to see that you know 349 billion stimulus ran out in two weeks. You know the ready relief product allows for a White Glove Service to get through the loan application process quickly and easily obviously, this was i hope just the start of a bigger plan for the government to get more money into our small immediate businesses i remember i saw one of your colleagues retweet today that 1. 6 million out of 30 million in the u. S. Actually got loan approvals so that means a lot more work to be done to be getting zas e loans and money into our Small Businesses. So what does your Company Actually do . How does it give businesses an edge when it comes to accessing this capital and how do you make money. Yeah, well software at the end of the day, theyve been working hard for a number of years with the sba in order to help facilitate this kind of lending, which is now become b obviously even more important in light of the covid19 disaster so in the same way turbo tax uses software to simplify the process of filing your taxes, it is using software in the process of getting these loans so making that process which can be pretty daunting and complicated, especially to folks who are under as much duress as the average american is is right now is the name of the game and the way that money is made is in the relationship that they have with lenders in the longterm. They know there are dollars that are available by the government for Small Businesses that qualify that they just dont actually have access to and so theyd rather make the money from the banks than from main street take me one step back from better fin to initialized capital, your own Investment Firm of all the companies, the Men Companies youve directly ip vested in, how have they finding this at the moment and is this a moment where its better to be private than public . All of the companies youve vested in have past at this point. Is it good youre not having a price fliuctuate or would that have made it easier at this time. You were just doing the round up p watching the markets react to the kinds of companies that are doing well during this crisis would it do well for Companies Like instacart which is hiring thousands of people to keep up with the demand theyve seen real Health Offering their free tele Health Assessment for covid19 symptoms. Were seeing types of companies in Certain Industries do very well and i think the overall trend has been Encouraging Companies to stay private longer and you know looking if t at th market being pretty cold for the next couple of years, i think well see that further continuum. One of your companies is instacart, which is very popular on the east coast right now, but im wondering if these Online Grocery delivery Companies Like instacart are really up to the task i mean are they actually able to meet this increased demand and increased capacity because it seems like there are no slots left for delivery every time i check. Yes well theyve recently pushed some features that will allow you b to be more flexible with when theyll allow your delivery to come. At the end of the day, having a company that has software in its Core Infrastructure that is a Software First Company Gives it an advantage in prices because of the scaleability and flexibility on software and so i think a trend weve seen in the last ten years around software eating the world, this idea that more and more businesses need to be Software Businesses is only going to be exacerbated during this recession because its the businesses that will be able to scale and offer a path to profitability easier because of the Margin Software that are going to be able to thrive so far, its been a great example of that. Alexis, i wanted to ask you about Net Neutrality its been discussed when you were on cnbc before. Were all relying so much on Internet Connections right now and i guess im not really talking about right now, whether those companies should be increasing prices or profiting from the current crisis, but i guess it highlights how much we rely on it and do you think it is fair to rethink that preference for Net Neutrality that netflix be the one from our increased use as opposed to the company that delivers the pipes that allows netflix to prosper well, you know, we create a government sponsored ol goply of infrastructure companies, cable companies, that provide this Internet Service and i think it is quite reasonable, especially in times like this, when we consider how much we prioritize our internet to consider the internet to utility we all know it is. Most of us would much sooner have other utilities go off for a day r or two than lose Internet Connection given how much our lives depend on it. But i noticed in particular, more and more conversations from parents who are now having school in their home because their kids are back there who are seeing both the gift and the curse of Remote Learning it is a tremendous asset to have that as an opportunity if you have the bandwidth to enjoy it, but theres a divided system in this country and for a lot of americans, especially rural america, getting the high Speed Internet that they deserve is frankly unattainable in part because we havent made the internet the legal utility we know it b to be. But in the light of Everything Else going on in the world, i cant beat my drum too loudly for Net Neutrality because theres a much bigger priority thats 22 million americans now unemployed and helping those get through this crisis is the pr r priority number one for our government we got a segment later with khan academy which is doing just that, trying to access learning for those that dont have that Digital Infrastructure finally, were jumping all over the place, but you have so many different backgrounds and interests. You really they this people this this country are going b to be okay sacrificing Civil Liberties to get traced by google and potential ly apple as we try to battle this pandemic and get back to work where do you think that conversation goes . I really dont know it is, theres clearly a trade off here and were seeing in other countries, especially ones that i think were a little bit more culturely aligned to, like germany or south korea that have been able to all the, you have a smaller populations, really effectively triage this. And i think it either comes down to some discussion between that privacy and safety trade off that we always make sort of with our governments but now are also increasingly, especially in the u. S. , have to make between us u and citizens and our multinational corporations which is very dirnt from how the original blueprint for the nation was when it got started, but this is the world we live in i hope that some combination of effective government and effective business both with oversight from us the public, can actually get us to a place where we can get americans safely back to living their lives as quickly as possible, but safely really is the most important word here. There are just too many Vulnerable People who you know, are, there are fellow americans. Yes, theyre also consumers and yes, theyre also Small Business owners, but the end of the day, theyre our fellow americans so we have an imperative to help them get through this as well and as safely as we can. Alexis ohanian joining us from the williams household. Were going to correct you on that one how about that. There you go. With the very cool background. Thank you zblncht democratic congressman rocha na, who represents silicon valley, has joined the president s new advisory coun l lasashiwhhe wel k k m etr congress and the white house will be able to approve more funding for Small Business relief and will be able to work in a bipartisan way to get this country running again. Well be right back. Shouldnt you pay less when you use less data . Now you can. Because Xfinity Mobile gives you more flexible data. You can choose to share data between lines, mix with unlimited, or switch it up at any time. All on the most reliable wireless network. Which means you can save money without compromising on coverage. Get more flexible data, the most reliable network, and more savings. Plus, get 200 off when you buy an eligible phone. Thats simple, easy, awesome. Go to xfinitymobile. Com today. Shares of lululemon down about 1. 5 the Company Announcing the departure of its cfo saying he will be assuming a leadership position outside of the apparel industry hes been the company for about two years. Over that time period, the stock has taken off like a rocket ship although it was climbing before that theyre going to look for a successor, doesnt look like theres anything beyond that other than hes taking another job. President Trump Holding a Conference Call earlier withed america again Congressional Group as the coup tri doling with the pandemic. Joining us with row khanna we took notice, congressman, that you, a democrat, that had not agreed a lot with this administration and with the president , is join his advisory council. What are you hoping to achieve well this is a time of crisis its not a time for politics or partisanship were all americans. We need to come together and frankly, it was a constructive call. It was about an hour there were about 20 members of congress on it republicans, democrats, we all shared our ideas with the president. I said that its critical that to rebuild the economy we need to have advanced manufacturing here for critical medical equipment. China is our Third Largest supplier of protective medical equipment. Why arent we making that in the United States . We need to be investing in the industries of the future other people had other ideas and it was a constructive conversation i guess thats a long time aim to move that production back congressman, in terms o the hort term of what we can expect in response to covid19, are you supportive of fearful of early reopening of the economy fearful if its done without thought and some consultation with medical experts my view is it has to be gradual and in consultation with what the medical experts tell us we know in silicon valley, dr. Cody ordered a shelter in place on march 16th the first in the country six counties did as a result, ours have been much many fewer than what they could have been. In fact the former cdc director said that new york would have had 80 fewer deaths if they had sheltered in place when dr. Cody did in santa clara, so i want to make sure we dont have a reemergence and that we defer to the medical experts. All the medical experts said testing, testing, testing. We need to see accurate tests and see them happening on a much broader scale. Virus tests and Antibody Tests it feels like the government is trying to do this and the private sector wheres congress on this why dont we eem to have any sort of federal strategy, an organization, around testing in this country very fair question. First of all, should have taken the tests this World Health Organization offered that would have gotten us off to a better start second, we have fundamentally underinvested in Public Health in this country. The cdc director said he had a 10 billi 10 billion budget compy a 740 billion National Security budget so they did not have the capacity to do the testing they needed to. Now congress has authorized funding. We need to administration to really prioritize getting the testing anywhere they can in this country because i agree thats the single biggest thing we can do to get the economy back on trk and be safe. Congressman, you said it in your first answer this is not a time for partisan politics its about coming together and making sure the right action happens. Looking backward, it sounds like youre still doing a bit of finger pointing. What about going forward. Now you have part of a task force. Do you take responsibility for whatever action is is taken from here on out . Well, i mean im going to proride the advice i would take action if they take my recommendation and then that as a consequence, but if they dont listen for advice, no, but im hoping they will and its not a matter of finger pointing, its what bill gates has said. What any medical expert said look, bill gates, if you were president , wouldnt ha v happened he warned about this and if the American People need to learn the lessons if you were president , would this have happened would you have stopped it totally if you were president . Im in my second term in congress youre cherry picking a pretty perfect candidate no county has stopped this totally. We all wish bill gates was president of the world for this particular example, but i think its a pretty kind of cherry picked i think if barack obama were president , this would not have happened to the level it did and they would have behad a Pandemic Response you can look at his twitter feed he was sounding the alarm in early january. We would have sheltered in place earlier. Do i think there still would have been deaths yes. Still cases . Yes. But to i think it would have been this severe no but the point is to blame this president , the point is to say what are the lessons America Needs to learn in order to prevent a future pandemic and wave, too. In the meantime, i get that you guys passed the relief bill but the that could that now youre haggle over 250 billion in extra funds to go to the Small Business Relief Program which is tapped out. It feels like people in washington dont understand the size and scale of the Economic Disaster were dealing with if they cant get more money into those Small Businesses right now. I completely support the 250 billion. In fact, as you know, i advocated that start ups qualify tr those funds and administrations credit, they revised the rules to allow most of the start ups to follow by. Heres what the debate is about. There have been report after report have the best relationships for the banks, that have accounts in the banks. We want to make sure that the 250 billion isnt just going to go to the businesses that already have relationships with banks but its going to go to people who may not have those existing relationships that money will get to be authorized i support its authorization. I think there has to be some thought to make sure that every business this this country who needs it qualifies a quick, final question you were cochair of Bernie Sanders campaign. Of course hell pulled out and endorsed Vice President biden now. Can Vice President biden win while hes Still Limited to his campaigning to his house essentially as everyone else is. How soon does he need to see these restrictions lift so he can get out there and campaign more wide ly i think he could absolutely wait what i would do is surround himself with the experts the chief of staff and he should be talk about what his response, will be in the pandemic. Have people like bill gates or others, have interviews with them daily so hes showing what he wants to do and to your earlier question, apple and google, theyre in my district theyre coming up with an extraordinary app, the difference in Civil Liberties is its opt in, totally volunteer people can sign up for the app their data will be ano, maamiz maamized, but its going to allow for some contract tracing. The Vice President will talk about how to martial companies he needs to show the company what hes going to do as president. We thank you for your time. Representative ro khanna joininging us there. And receiving sterilization. Well ask e mpthcoanys ceo about how many masks per day can be cleaned and how effective it will be. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Breaking news out of washington were learning more about what the president shared with governors about these plans to reopen the economy the conversation was broad it wasnt detailed and the onus was put on the states in terms of determine iing the data and symptoms and ability of the Health Care System in those states to handle certain communities going back back online but in a document obtained by the washington post, the white house lays out three phases of activity gradually allowing more activity after states prove that they can go through each of these phases an not see a rebound in cases. The first phase has tele working, social distancing, still says travel should be limited. It does allow for elective surgeries and for gyms to be b open under strict guidelines, but not restaurants and bars then theres phase two, where some of those restrictions start to ease. Also nonessential travel is allowed in phase two then in phase three, stuff is mainly getting back to norm alex september for vulnerable populations, eilidh rerly, those with understolying conditions ae still suggested to be socially distances and in some cases, sheltered in place in this document, there are no dates attached to this and the president is teting governors to make determinations as they see fit with some of these states able to do this before may 1st some well after. Thanks so much for that we look forward to the full conference later today now as hospitals face delays in getting personal protective equipment to workers amid the coronavirus outbreak, one Company Setting in to help is advanced cent ed sterilization s to decontaminate comparable n95 respirator masks joining us for more, president and ceo which owns advanced sterilization products thanks for joining us, jim so youve got this approval. Talk us through the process. How long does it take you to materisterilize a mask, how eff is it . Yeah, thanks. Its great to be with you. Were obviously proud to be able to contribute to the ppe challenge that does exist among hospitals. What we announced this week is is that our asp business as you mentioned is utilizing the systems that exist today in hospitals. To be able to decontaminate masks, utilizing the capacity that exists today in the hospitals, so one of the powerful parts b aboabout this that the capacity exists today as we heard in the previous caller, surgeries are down at this point elective surgeries are down and thats created capacity within our equipment. Were going to turn that up and decontaminate n95 masks. I keep wondering, jim, if one of the ways were going to change after this crisis is were all going to want to sterilize a lot more than we used to. Equipment, groceries, everything that comes into our house. Do you expect a whole new sterilization and sanitization industry to form out of this crisis well sara, i think our asp business is really an expert in Infection Prevention principally sterilizing surgical instruments and equipment in the hospital thats really been our focus i think as we think about the broader e opportunity, for sure theres going to be more opportunities for sterilization, but what were really focused on is the incredible work that our inventers and the invedable team did was in a quick amount of time looked to create the process that hospitals had turned that capacity on today and i think thats, whether its a Business Opportunity longterm, were really focused on help iing those front line workers. Were just showing some of the countries that youre operating in to sterilize these masks. Is there much trade . When we talk b about ventilators, its going to be so important. Is that needed with these types of masks or not really is this a local issue . Yeah, so you know, you probably certainly europe and japan and the 6300 hospitals in the u. S. Around we have similar authorizations in those countries and the eu so were really focused on n95 masks. Theres a number of manufacturers, so part of our Technology Process was to make sure we could fit the n95 masks a as well as the equivalents jim, really quickly, how many times can you sterilize an n95 mask and keep it use is it unlimited . No. Its not twice more after the initial use. And that really turns out millions of masks a day of capacity once the hospitals start to turn on the capacity here in the coming weeks and months jim, thanks for joining us. Thank you have a great day time now for a coronavirus update good afternoon, everyone. California governor Gavin Newsome says that the grocery lines are the front lines in this pandemic so he is signing an order this guarantees Food Industry workers at least two weeks of paid sick leave we dont want you going to work if youre sick. And we want to make sure that you know that if youre sick, its okay to acknowledge it and its okay to let your employer know and still know that youre going to get a supplemental paycheck for minimum of two weeks. Governors from seven midwestern state have formed a partnership to coordinate efforts to reopen their economies. The bipartisan Alliance Includes michigan, ohio and indiana and in indianapolis, a funeral for a Police Officer who was fatally shot on the job. Dozens of police cars there lined the indianapolis speedway to honor the officer while also observing social distancing. The indianapolis mayor and governor also attended the ceremony for more coronavirus coverage, head to b cnbc. Com back the to you. Thanks so much for that now many students are forced to learn from home during the coronavirus outbreak without access to technology coming up, well haask the foune of khan academy about how to fix that home schooling queson rba ia couple of minutes. Woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Confident financial plans, calming financial plans, complete financial plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Lets bring in an early backer of remote education and online learning, solomon khan who founded khan academy in 2008 thanks so much for joining us. Its a really important nonprofit you have backed in part by the Gates Foundation explain how you are stepping in to fill this void, which tw. H. O. Estimates more than a billion children out of school around the world for the foreseeable future yeah, we could have never forseen this situation r, but over the last many years, weve been building resources that are in some ways well purposed for the situation were in so we have content, khan academy kids, math, reading, social Emotional Learning all the way through elementary school, high school, Early College in math. S. A. T. Prep, english and language arts. Weve been trying to provide extra support so weve been publishing schedules weve just published learning plans and how to leverage summers e so the learning doesnt stop weve been running webinars for parents and teachers our registration from parents are 20x of what they normally are. Our traffic is approaching three types of what we normally see. I mean we debate all day here on cnbc whether some industries will be changed forever by this experience of doing stuff from home for example, will prime commercial real estate prices fall if less people go back to the office whats the expectation here with education . Does actual schooling still have nothing that can beat it i think for younger students, you know were talking about students up to the ages of 16, 17, 18 theres always going to be a very important place for physical schooling yes, its nice to learn the algebra and improve your reading comprehension, but its important to get the socialization, to have those mentors and get the extra krir lar to realize that you can lean on these types of online tools even when we didnt have School Closures their value was if im a teacher in a class of 30 students how do they meet different needs and in urban settings students dont even have access to algebra 2 and biology and physics and now we can give World Learning to everyone and im hoping that as we come out of this Silver Lining well understand how to leverage both in the best possible ways and how to blend them, if you will, and also some of the habits of learning at home now for the students to have more agency and a little bit more independence and we can leverage those habits as we come into other periods of time, mainly summer which has always been a source of inequity. Our students with help from tutors and the family and were hoping that khan academy can fill that gap. Thank you very much for joining us well have to leave it there thank you breaking news on gilead. Meg tirrells got it for us. Hi, meg. Hi, they obtained a video, a hospital bed is running part of gileads trial with gileads drug remdesivir. The university of chicago is seeing rapid recoveries in fever and respiratory symptoms in patients who took remdesivir as part of the trial, with nearly all patients discharged in less than a week, hes reporting. He says in the video that he obtained which was basically them sharing a discussion with faculty members at the university of chicago, they said they enrolled about 125 people into two of gileads phase three Clinical Trials and 113 of them had severe disease this is not the trial results from gilead and this is just a glimpse into what we might get to see, and gilead up there, 7 and clearly people hopeful that this means that when we do see the trial readouts and we should see that later this month that it means good news, guys and we will have to wait until we see the results of those trials. Nonetheless, very encouraging as you said, its hope at this stage as opposed to firm data. Yes, absolutely, wilf 7 in after hours for gilead. Still ahead, an update to a story we brought you yesterday, a 99yearold british world war ii vet raising even more money for the uk National House service. Well break that story down and others in todays good news ruow ndn. Flexshares may look like other etfs. But inside. Theres advanced research, modeling and refinement. Constructing funds that dont simply follow an index. But explore new terrain. Helping you fill portfolio gaps. Connect to client goals. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Every day here we look to find stories that we want to highlight and that highlight the innovation and generosity of Community Members looking to contribute to coronavirus aid. Here are some new examples jimmy fallon, hillary clinton, john legend and kesha, just a few of the celebrities delivering precommencement speeches via podcast meant for all of the class of 2020 snl comedian michael che will pay the rent of 160 families where his grabbed mother who passed from coronavirus lives. A Dutch Company has transformed their mobile Hotel Normally used at festivals to bring the elderly out of isolation. They added a pane ofplex glass so they can see their loved ones safely from a distance and a happy update from the news we brought yesterday and the world war ii veteran has now raised over 15 million for coronavirus all by walking laps in his back garden and that story just gets better and better, and of course, hes approaching his 100th birthday people saying he deserves a knighthood now hear, hear to that 15 million, not bad up next, p g gearing up to report earnings moow atorrnd key things to watch right after this break. In nearly 100 years serving the military community, weve seen you go through tough times and every time, youve shown us, youre much tougher your heart, courage and commitment has always inspired us and now its no different so, were here with financial strength, stability and experience you can depend on and the online tools you need because you have always set the highest standard and reaching that standard is what were made for i would just point to the move in s p futures right now higher after what meg just reported that early indications on the gilead drug remdesivir were having good results and thats encouraging on the health front and the market was encouraged by it Procter Gamble makes everything from toilet paper to paper towels to toothpaste americans have been stocking up. The stock has held up pretty well over the last few months. So the question is are the strong sales growth that it is expected tomorrow already baked into that price and what will they say about the uncertainty around consumer behavior, wilfred. The market finished up 0. 6 on the s p 500 were out of time. Bryon sutton is up for you next. Wilf and sara, thank you very much welcome to fast money, everybody. E i am brian sullivan. Your traders are guy adami, tim seymour, guy adami and Karen Finerman the stock hitting another alltime high that has arent come too far too fast because everyones buying the same thing and well dig into that and also ahead, the banks getting battered again one of the traders says this