Transcripts For CNBC Worldwide Exchange 20240713

You are watching cnbc. Good morning, good afternoon or good evening from wherever in the world youre watching. Im Brian Sullivan im glad to be with you during this troubled and turbulent times. Coming off friday 700point game gain for the dow futures are lower, indicating a drop of about 200 points for the dow, slightly less for the nasdaq 100 your big story right now is the price of oil and a new week bringing the same old story prices, they are falling in a big way. The may contract right now at an incredible 14 and change per barrel now down 22 overnight. The may contract, keep in mind, does expire tomorrow its also important to look at other contracts. Primarily the june or july contracts for oil. They are slightly less dire. The june contract at about 23 bucks. The problem with oil is very simple there is so much oil being produced around the world and so little demand right now for gasoline or jet fuel that unneeded and unused oil is simply piling up everywhere. Many storage tanks and pipelines are full and the world is even running out of room on anchored ships that are being stored at sea. In some places in texas, north dakota and canada, you can get a barrel of oil for just a couple of dollars in some cases, they may pay you to even take it. The world is fighting the same battles on a number of fronts first and foremost, krod kr covid19 and the economic slowdown that to follow. Julianna tatelbaum in london, and matt well first get to you and i understand a pretty big move by Chinas Central Bank absolutely right, brian we saw a weaker side for the most part to the asian trading session to kick off the new week, with the exception of china that moved higher. The likes of japan down 1 we saw weakness in south korea and hong kong as well. That move we got out of the pboc to call the loan prime rate was as expected, didnt do a lot to lift sentiment across the asian region lets look at the shanghai composite up by half of 1 , the central bank cutting the oneyear loan rate by 20 basis point and the fiveyear rate, which is most closely correlated to the Mortgage Market in china by ten basis points. The oneyear rate down to 3. 85 and the fiveyear down to 4. 65 . In japan, some woeful trade numbers out as well. These are for the month of march. On year we saw japanese exports sliding by 11 no let up in march when it comes to that countrys market getting back on track when it comes to exports. In new zealand, an interesting one were watching, the market basically closing flat we saw a pop for the new Zealand Dollar after the Prime Minister announced the government would be extending the nationwide lockdowns, which is pretty strict lockdowns everyone has to stay in their home at all times for one more week before reducing those restrictions on april 27th the country will move to whats known as phase three restrekz. But people can still not socialize, means limited business and the construction sector will get back up and running. Back to you. Well see you in a bit. In london where the markets are looking a little more rosy than ours are now Julianna Tatelbaum in our london news room with that. Good morning. Good morning, brian great to see you european markets are seeing a little choppy session this morning. Overall moving higher. We have the german index, the dax trading 23 basis points higher, 0. 2 the French Market underperforming a little bit, down 0. 14 we have had some hopeful signs coming out of various governments here in Europe Germany and spain both looking to move forward and ease restrictions currently in place. Both governments very keen to emphasize it is still a long road ahead when it comes to fully lifting though restrictions in italy the ftse mib trading 0. 07 . A european leader summit taking place where well be watching closely to see if we can get more coordinated actions from european policy makers to cushion the blow of the coronavirus on these different economies. Lets take a look at the different Sector Performance we also have earnings coming into focus this week for the european names. The nearterm earnings are expected to take a substantial hit, but investors will be looking for insight into what the future will hold for various sectors. This Morning Health care media, Household Goods on the upside outperforming the Broader Market basic resources, one of the more cyclical underperforming down 1 mt. 7 construction, really, ooil and responding to the drop in oil price that you emphasized, very important not only for american but european markets. Julianna tatelbaum, well get more on oil in a second but lets send it over to Frank Holland at cnbc hq with more on the virus as well as the growing backlash in the country over the lockdowns. Heres the latest over the weekend a number of protests springing up in florida, new hampshire, california, texas, and others all demanding their States Reopen for business despite the nations death toll surpassing 40,000 pressure has been building on governors in recent weeks to begin the reopening as initial jobless claims surged past 22 million since this outbreak began. New trouble for google and apples collaboration to track the spread of covid19 experts telling the Financial Times some 2 billion older mobile phones will not be able to take part because they lack the ability to track the data, that includes lower income and older. Shake shack says it will return its entire 10 million loan from the u. S. Government amid widespread criticism over who got access to the fund that was initially aimed at saving Small Businesses more than a dozen publicly traded companies topping 100 million received funds before that program ran out of money. Brian, back over to you. Frank, thank you. Lets stay on Small Business, the heart beat of americans because millions are struggling as they are forced to close and congress is rushing to sign a second round of emergency loan programs as President Trump says his administration is preparing to use the defense production act once again to compel an as yet unspecified American Company to boost production of testing swabs as tracie potts joins me with more on this. Good morning. Reporter good morning. The president does say hes going to force more production of those swabs but still insists testing is the job of the states and the governors. The big news this morning is we do see there appears to be a deal in the works for those Small Business loans according to the treasury secretary, the senate could act today, the house could act tomorrow and we could see this finalized and more money poured into the fund by wednesday the senate could act as early as today on 250 billion for the Paycheck Protection Program Small Business loans billions more would be set aside to help rural and minority businesses we think another 300 billion, thats what were talking about, should be sufficient to reach almost everybody. Reporter the coronavirus stimulus would include an additional 100 billion in the Public Health space, 75 billion for hospital support and another 25 billion for testing. Reporter President Trump announced on sunday hell use the defense production act to force manufacturing of more testing of swabs but insists testing is up to each state. You cant have it both ways testing is a local thing. Thats just delusional to be making statements like that. Reporter parts of the country are already reopening. Beaches in florida, marinas in the northeast, farmers markets in seattle texas and vermont will open some businesses today other governors say its too soon. We have increasing numbers every day here in the washington region. Reporter michigans governor is concerned protesters may be putting others at risk. Without those important protections, it means they might have gone back to these parts of our state and, perhaps, brought covid19 along with them. Reporter Vice President pence has a Conference Call with the nations governors today so, what to do about easing restrictions our nbc wall street journal poll shows 50 , over half of the country think its too soon to scale back on restrictions but 33 think its taking too long and hurting the economy. Tracie potts in washington, d. C. When you look at this from your reporting angle around the d. C. Area, the protests, at least right now, do appear to be fairly small reporter theyre not huge but weve seen some, for example, in annapolis, in maryland interesting the governor of maryland, governor hogan, says its not time to fully reopen the state yet. They have a plan but the plan cant be put in place yet because their coronavirus cases in maryland are still rising the oldest state capital in the united states, i believe tracie potts in washington thank you very much. Well see you soon thank you very much. So much more to do on this very busy morning to get your week going are we now in the ultimate case of dont fight the fed when it comes to the markets and your money or will a deep recession ultimately send stocks lower oil crashes, nearing 14 a barrel were down 22 how will this terrible economic slowdown impact dealmaking . We have an exclusive on that for you. Its a very busy hour ahead. Youre watching cnbc and Worldwide Exchange. Ever since weve gone mobile on the now platform, somethings gotten into the office. I hear you. Feels like theres no barriers between departments now. Servicenow. The smarter way to workflow. Its been a tale of markets this year, and its only march 20th when the Virus Outbreak first broke, the dow lost 10,000 points in over a month some of the fastest declines the market had ever seen in the last 20 or so trading day, the index has jumped back, nearly 30 just as quickly what are these rapid fire markets telling us right now jim iuorio joining us on the cnbc business line good to chat with you again, buddy, but i want to talk to you about oil. The may contract expires, its at 14 and change. We should probably look at the june contract. I understand that. But what in the world is 22 drop in the price of crude oil right now telling you . The oversupply has turned into a panic the belief you have oil on your hands and nobody wants to buy. That seems understandable to me. You shut down 75 of a working economy, particularly in our country where we consume the most oil, again, its a panic. Panics like this feed off each other. Im not sure 14 a barrel is the right price for it to be right now, but once the ball starts rolling down the hill, its difficult to stop. I think were getting relatively close. Theres a lot of shorts in the market, too. A lot of things can go wrong in the next week regarding the opening up of the economy. If things start to go smoothly, i think things could turn around quickly and you could squeeze some shorts out as well. Were showing june, july and august contracts no way, jim, am i calling that optimistic whatsoever, but there is a big difference between 23 and 28 and 14. In some places, the price of crude oil is going for low Single Digits as they pay you to take it away this is not a supply problem this is a demand problem i think the data i saw, jim, is that gasoline and jet fuel demand in the country is down 60 . I was actually surprised it wasnt more than that. Its crazy. Im surprised its not more than that, too, by the way. Air traffic was down in the more 80 to 90 could even be worse like i said a second ago, this week, as far as the reopening of the economy, again, a lot of things could go wrong but it seems a lot could go right as well were seeing small pockets open up in texas and some Southern States if things go well and confidence starts to come back i have a Small Business here. I see people all the time come in our restaurant for carryout people still remain scared i think its fear. It could just be complete compliance, but theres masks, people who are keeping a sixfoot barrier from everybody they go by its going to be tough to get back from that, i think. I want to ask you about that in a second. Lets go to the markets. Nearly 11,000point drop for the dow in a matter of 30 days weve had a violent snapback in the last two weeks some think its on optimist of remdesivir or optimism on reopening of the economy or is it just these bear market bounces, i hate to reference the 190s on, but when you look at the biggest rebounds and snapbacks in history, they almost all took place in the 30s how do you read this i think its last week i thought it was just a bear market rally i think its more than that now. I think its optimism from all the things you said. The biggest thing, i hate to even say this, i feel dirty saying its mostly the fed im not saying its all the fed. So people can stop the hate mail i think the fed and policy response from the government is a huge part of this. Its mostly the fed versus the economic shutdown. Well see who the winner will be in the next couple of weeks. I think you have to dont fight the fed is the action weve gone with forever. I dont know thats an absolute but i think thats one of of the biggest pushers. In midjune is it going to be are we still going to be shut down to a certain extent and petrified . My thinking is that part is going to go away but the fed isnt ever going to go away. Once they come in its difficult for them to pull back the punch bowl and i dont think they will this time either. We have to let you go want to hear how your restaurant is doing in these tough times. Thank you very much. Thank you very much. Coming up, what we just talked about, a possible road map for reopening parts of the economy, courtesy of germany well give you a live report from there as they start to reopen today todays big number 15. 51 thats how much the s p 500 gained in the last two weeks its the indexs second straight week of gains. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. 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No doubt many of you, maybe all of you out there are wondering how things may look in america when we begin to slowly reopen our economy. Of course, nobody can truly know, but we may get a big clue today because germany is taking steps to get some businesses back in business, albeit with a lot of caveats cn cnbcs annette joining us from germany. Yeah, exactly today is the day when smaller retailers are going to open their businesses once again. And the reason for that is because the government is very much concerned they can all go bankruptcy because we have situation where they are closed now for five weeks we have a lot of support from the government like liquidity measures, loans, et cetera still, its a very tough situation. Retail is going to open. Schools will only gradually, partially open in two weeks time just for the graduation class. Its nowhere back to normal very soon today Angela Merkel was quoted as saying once the reproduction, meaning how many people are getting infected by one sick person jumps above one, we can also take these measures away again. Its an interim success, how Angela Merkel is calling it. Interim success what specifically are the metrics theyll be looking at to realize, a, we can continue and reopen more or, hold on, we need to pull back and maybe even shut down some of these experiments exactly, its that reproduction ratio how many people will get reinfected by one person who has coronavirus. That ratio should be below one, otherwise what Angela Merkel explained to the public recently, otherwise we end up in a situation where our Health System will be overburdened. For now we have ample space of intensive care beds. We have some 14,000 empty beds hospitals are more or less complaining and reopening for other sick people to get their operations which are due still, the ratio has to be below one, if its going higher, as you were alluding to, we could also see a partial going back to more lockdown measures still the social distancing rules stay in place. Its nowhere close to normal we have car producers who are resuming production now. Volkswagen saying theyre restarting productions, daimler restarting production. Again, its an interim success but hopefully it will stay like that back to you. I know the entire world is watching annette, thank you very much just what annette was talking about, they call it the rt, to put things in perspective, at the height of this, the transmission ratio in new york city was over four in new jersey it was close to that, one person was getting three or four other people sick. Thats why it expanded so quickly. When we come back, it is back to business and a potential bankruptcy for a big retail name you know and potentially a very big red flag for Department Stores everywhere. Plus, congress racing against time to refill its already tapped out Small Business loan program. We have a live report on how likely it is we inject another 310 billion in that program and soon were back right after this. Awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] 310 billion into the Small Business rescue plan is it enough and will it be soon enough to say many familyowned companies . Call it a lost year for corporate earnings maybe a lost year for Economic Data as well we have one money manager that is navigating through this new normal and trying to find some bargains for you along the way it is monday, april 20, 2020 youre watching Worldwide Exchange and cnbc welcome back and good monday morning or good afternoon, good evening. Im Brian Sullivan and good to have you back here on Worldwide Exchange and helping you navigate these troubled and turbulent times. Looks like more turbulence to start your stocks to start the week dow indicating a drop of 200 points nasdaq futures slightly less down as were coming off our first twoweek gain for markets since back in mid february. Oil is the big story again today. Crude crumbling more than 20 right now. The may contract just over 14 june and july theyre a little stronger at 23 and 28 and change respectively. The problem, as we noted many times, is very simple. Supply is up demand is well down and the world is simply running out of places to put all this unused and excess oil whether its in a tank or ship anchored offshore. Those places are unaring out in some places in texas, north dakota and canada, you could probably buy a certain type of crude oil for 2 or 3 per barrel thats about a dime a gallon its not just oil in focus this morning. Chinas central bank making a big move to try to rescue its economy. Lets get to matt taylor in singapore. Reporter hi, brian because we had the first contraction weve seen since the 1970s when it came to chinas gdp, of course out on friday were anticipating this cut by the pboc, the central bank in china, on the back of the easing of the money market rates last week the shanghai was up half of 1 this is the loan prime rate and what commercial bankers lend out to borrowers we saw it cut to 23. 85 from 24. 05 the fiveyear late, more correlated with Mortgage Rates in china, reduced by ten basis points in line with Market Expectations to 4. 65 from 4. 75 . Not a whole great amount of Market Reaction across some other indices because this had been priced in given we saw moves to the medium term lending rate last week take a look at japan, the underperformer across the region the market down by more than 1 . We had weak trade data out in japan. Exports in march by 11. 11 of the year but the government set to increase its size of stimulus package. Were getting news out of australia, asias evening time, the countrys second biggest airline, about to enter your version of chapter 11 bankruptcy this announcement is set for perhaps some time tomorrow back to you. Matt, thank you very much. Lets get to how stocks are doing in europe. Julianna tatelbaum, you guys looking a little better to start your week over there. Thats right, brian we have started out the week on rather firm footing, ebs tending the gains we saw come together towards the end of last week we left off with the stoxx 600 gaining more than 2. 5 over the week, logging its second positive week in a row. This morning stocks are generally trading higher its a bit of a mixed picture when you look under the hood at the different sectors. Investors bracing for earnings coming through in full force this week. Investors preparing to look through the near term weakness we all know the near term q1 numbers are going to be very bad. Q2 likely to be bad as well. Whats important is what Companies Say about future profitability prospects. And on the virus front, a little hope coming through with germany and spain and a number of European Countries looking to ease lockdowns the message clearly from those governments, its a long, long road ahead brian, back to you Julianna Tatelbaum, thank you very much. Lets get to d. C. Where lawmakers are inching closer to a deal that would inject another 370 billion into the emergenc loan program for Small Businesses this as President Trump says his Administration May use the defense production act to compel an as yet Unnamed Company to boost production of covid19 testing swabs. Well get more on that and more with eamon javers live in washington good morning good morning, brian you know how were close to a deal, lawmakers were told they might need to come back to washington to vote as soon as wednesday. Thats an indication that things are getting serious up on capitol hill and its going to be a challenge to logistically bring all members of congress back from across the country its something they have to do because they dont have remote voting capability a lot of people have been talking about heres how the deal would work, we think this is all possible at this point. We dont know for sure we think its about 310 billion for that ppp program, the Paycheck Protection Program thats been so popular and was overrun with demand for Small Businesses of that amount, 60 billion would be for rural and minority businesses thats specifically set aside for them 75 billion for hospitals. 25 billion for testing. Theres some question about exactly how that piece will be put through. 60 billion for an additional Small Business program this is a Disaster Relief program that also would be helpful for Small Businesses that have been hit so hard by the coronavirus. All of that seems like progress on a week after that paycheck protection funding ran out simply they dried the tank on that one with so much demand from Small Businesses across the country. As you say, the president is talking about the defense production act, specifically for one type of medical supply heres what he said yesterday. We also are going to be using and were preparing to use the defense production act to increase swab production in one u. S. Facility by over 20 million additional swabs per month weve had a little difficulty with one, so well call in, as we have in the past, as you know, were calling in the defense production act, and well be getting swabs brian, well see if we can get to a deal today or not the president hinted last night he thought he might have a very nice announcement to announce today. That could be on tap for markets today. Eamon, any indication of which Political Party right now i imagine its both, but is there a way to gauge which one may be under a little more political pressure yeah, i think it is both but i think the democrats are under more pressure here than republicans just because theyve been the ones asking for additional items included in this deal. One of the things theyre looking for, which isnt included so far in the deal, aid to states and localities which have been hard hit as well they want all of those additional items, including the hospital spending, but republicans have been positioning them as blocking this Small Business program. Thats something thats extraordinarily popular across the board with both democrats and republicans. The Democratic Base really wants this and so i think leadership is going to have to ultimately get to a deal here. Big story there and millions of familyowned pbusinesses are counting on congress to come through. Eamon javers, good morning, by the way, and thank you. Perhaps one question is simply, how quickly the economy and jobs will recover once we reopen we have some insight on that, as well as dealmaking, what Venture Capitalists are talking about. Joan now is Global Technology head of m a, cole, thank you for joining us of those executives, ones who control parts of the economy and lots of jobs, no doubt, what kind of recovery do they see is it going to be fast, strong or slow and drawn out . Good morning, brian thanks for having me on. It is interesting. We did go out to about 300 of the premiere ceos, entrepreneurs, technologists and their investors. This group is inherently optimistic but the feedback was interesting. They came back saying they do expect a ushaped type of recession. They see it lasting for longer than six months but they do see a strong recovery after that period of time so late in the year into 2021 a recovery happening pretty quickly across many of the Technology Sectors whats the biggest concern about the reopening . Is it peoples fear to go out . Is it that theres no financing . Is it theres no end use customer demand . What are the big issues out there youre seeing, cole . As i mentioned, theyre pretty positive. These are Software Companies that have recurring revenues they are seeing those revenues that churn is pretty low in terms of those customers they are seeing continued orders the majority are saying theyre not going to hit the numbers they expect to hit over the course of q3 and into q4 they do expect that to come back pretty significantly into next year, however. How do they see it impacting valuations well theres no question, if you look at the stock market and the downturn thats been occurring over the course of the last month, the valuations are down in the Public Markets that, obviously, impacts private marks as well. The expectations is there will be softnessin valuations that will happen over the next couple of months as well. Many of the investors, particularly on the Venture Capital and the private equity side are patient and they expect the deal flow will just slow down as opposed to accepting some lower valuations. A number of these investors in particular have been through downturns before theyve seen what happens in the internet bubble when it burst. They saw what happened in the recession in 20082009 and they saw what happened to the economy thereafter so, theyre anticipating some positive news coming out over the next couple of years when it comes to valuation and theyre prepared to wait for that. What about the rest of this year as far as Public Offerings . Seems like theres no way to avoid a slowdown of ipos, not to mention you just literally cant get on the florida of an exchange right now. Yeah, that does make it difficult. Doing deals is tough its a question of doing road shows, doing everything virtually. On the m a side doing diligence via drones and via zoom, just like were doing right now deal activity both in the Public Markets and private markets will slow, that means m a as well as ipos some Quality Companies are going to come out. There are some sucyclical companies were backing and see to come back this year sh in the dealmaking space used to complain about the airports and now all they want to do is get out of their house and get back on an airplane. I never thought id like forward to Newark Airport so much at some point again on deck, one of americas most well known and highend stores may be ready to file for bankruptcy that name ahead. Plus, perhaps some good news today as he boeing looks to fire back up certain parts of its production phil lebeau will be here with dofuredo a w tus wnbout 200 welcome back a new wall street journal nbc news poll shows nearly 60 of americans say theyre concerned local government officials may move too fast to lift certain stayathome restrictions. In the meantime, new York Governor Andrew Cuomo says the state considered the epicenter of the virus will begin conducting antibody tests this week to determine just how many people may have had and recovered from the disease Frank Holland has more on the outbreak from cnbc hq. Heres the latest covid19 testing experts say the fda has allowed more than 90 unvetted antibody tests on the market, some of which have been marketed fraudulently. They are used to develop people who have developed an immunity to covid19, although the efficiency has been disputed by the world health organization. Neiman marcus is expected to file for bankruptcy, making the retailer the first major u. S. Dwpt store to fall from the hit of the coronavirus the pandemic forced the company to temporarily close all 43 locations and furlough roughly 13,000 employees. Disney is suspending pay for 100,000 park xeez this week. They are expected to save up to 500 million a month across its theme parks and hotels, the majority of which have been closed for nearly five weeks thank you very much. Its a different story for some boeing workers. The company is set to restart parts of its commercial aircraft production at a seattle area facility today, after being forced to shut down three weeks ago. Phil lebeau joining us on the cnbc news line phil, how many workers will be brought back online at boeing . Well, youve got about 27,000, roughly speaking, that are expected to actually physically report back to work want be just today but over the course of this week. What were talking about is the widebody commercial plane construction the 737 max remains grounded and that Assembly Line hasnt essentially woken up yet were talking about the 787 dreamliner, 777. And they suspended production or had it suspended for about a month. This is the beginning of what could be a couple of very big weeks for boeing next week they have the virtual annual meeting on monday they have the earnings or Financial Results for the First Quarter coming out on wednesday. Airbuss competitors, you take a look at boeing and airbus and the stocks over the course of this year, remember, its cutting productions by more than a third. Boeings commercial backlog is just over 5,000 planes many analysts on wall street expect over the course of the next few weeks we expect to hear from boeing its cutting its production schedule. Take a look at shares of united. Its selling 22 of its planes to an be asian leasing firm it will lease back these aircraft after the sale is completed. Many of these are 737 maxs yet to be delivered to united. Now theyll be delivered to united but owned technically by this asian leasing firm. This is all part of giving the company more financial flexibility, if you will, in the future, when it comes to its balance sheet. They might need it because, phil, im sure you saw this, i hope im not putting on the spot there was a reuters report out that theres one Major International bank in china that is canceling orders for about 30 737 max today. Thats the China Development bank well see more of this, brian. Not just because you have so Many Airlines that are under pressure right now, but the leasing firms are looking at their order backlog and theyre saying, realistically, realistically, how many do we think well be able to allocate out to airlines that have agreements in place with us . The reality is, when these orders were placed, not just with boeing but with airbus as well over the last five, six, seven years, we were at paris air show, these big orders would be announced what youre seeing now is that a lot of times these leasing firms or airlines in some cases were saying, okay, we think were going to want 75 of a particular aircraft or 100 of a particular aircraft in this case, the China Development bank is saying, we do want need 29 737 maxs so theyre scrapping that part of their order. There will be many tlifrd but in this case canceling 29 of them. Another busy day for phil lebeau thank you for joining us. On deck, is it already a lost year for corporate earnings Jenny Harrington says it might be shell be on to tell us why it might be but where shes find value for her clients in this confusing year can watch cnbc any time on the app. I know that every single time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. During turbulent times, consider protected Lifetime Income from an annuity as part of your retirement plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. At t knows you have a lot of things on your mind. Staying connected shouldnt be one of them. Thats why were offering contactless delivery and setup on all devices. And for those experiencing Financial Hardship due to this crisis, well work with you to keep your service up and running. Hi because at at t, were always committed to keeping you connected. Welcome back and good morning. A couple of analyst calls just crossing the tape on one red hot stock. Thats gilead science. A lot of optimism around its remdesivir, possible drug for covid19 wells fargo and bmo are downgrading it to neutral. Bmo citing valuation. Theyre optimistic about the company and the drug but they say its gone too far too fast, now at 79 wells fargo a little more bullish, 87 price target. Ill summarize both calls. They like the company, they like the optimism about remdesivir but theyre concerned about down the road generic competition those analyst calls just crossing the tape. Is it already a lost year, as of april 20th, 2020, for corporate earnings lets bring in Jenny Harrington, a wellknown cnbc contributor. Its a pleasure to have you back on here on Worldwide Exchange. Thank you very much. I mean, were going to be covering corporate earnings. I understand that. We got to talk about them. Well hopefully get some guidance but it does seem like its much more of a different exercise in some ways to try to listen to company after company say, we just dont know. Right i think when we talk about the fact its a lost year for corporate earnings, a lost year for Economic Data, i think the important thing to remember here is thats okay in the longterm picture of being a good investor as good investors and, frankly, as humans, we look forward and we look forward, the market tries, cant right now, but its trying always to look forward six to nine months as humans we look forward and we do it with optimism. The reason we do it with optimism is because history has proven to us that over time things get better. This year as dismal as we look out to 2021 and that picture day by day gets a little less blurry, a little more in focus, we can start to do something, with he can start to make decisions. And what decisions, jenny, should investors, our viewers, our listeners, be making right now . A lot of nervous people out there. Weve had some changes to the c. A. R. E. S. Act as far as tax treatment, early withdrawal from 401 k s and other retirement programs no doubt people looking at this little recent rally saying, maybe i should sell into this. I think your earlier guest, cole, said private equity inv t investors are patient. I think public Equity Investors should channel our private Equity Investors and be as patient as possible. If were patient, we can make good decisions i dont think you need to feel great about the s p 500 to feel great about the success and the ability to thrive of individual companies. You can start to look at individual companies or you can continue to hold the individual companies you already own that you know, that you believe in, you understand their businesses, you know theyre going to come out okay these are not two i own but i thought it was interesting and encouraging that costco and Procter Gamble had great earnings and increased their dividends. Thats a real statement of looking forward. We dont know what the next two quarters hold and is it uhhuh. As were all struggling to stay connected tell us why youre bullish on verizon. Leave us with optimism as we wrap up the program, jenny. I bet you that probably half the people thats an exaggerati exaggeration significant portion of the people watching this program are using verizon service. Were going to continue to use that everybodys home theyre using as much data as they possibly can verizon, at t, same story. Data is being consumed hand over fist and thats not ending any time soon, i would argue ever. I think those will drive i dont think thats an overstatement. Youre probably right. Jenny harrington, good to see you. Well see you much more on the morning program. Lk tnkouorneay fos,ha y f tuning in our continued coverage picks up with squawk. Awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] breaking news. Crude Oil Prices Falling to under 15 a barrel with demand cratering and producers running out of places to put it all. In washington treasury secretary mnuchin and Democratic Leaders say theyre close to a deal to replenish that program to help Small Businesses meantime, new backlash over just who received the money in the first round of that program. In fact, now shake shack says its going to give back 10 million. Monday, april 20, 2020 squawk box begins right now. Good morning good to see you. Happy monday im becky quick along with joe kernen and andrew ross sorkin. Weve been watching the u. S. Equity futures and things are under pressure the dow looks like it would open down by 280 points a little weakness for the s p and for the nasdaq as well nasdaq down by 75 points the s p down by 29 this morning. Were keeping an eye on whats been happening with the treasury markets. The real story this morning is crude oil. Joe will talk more about that in a moment lets take a look at treasury prices this morning just to get a look at the tenyear, the yield, what were seeing at this point. Again, this has been another one of of the major stories. Ten is below 0. 71