Transcripts For CNBC Closing Bell 20240713

For the rest of the year well get a bunch after the bell including netflix. President trump is set to meet with new York Governor Andrew Cuomo this afternoon key relationship for the country and our pandemic response, which has been marked by tension and cooperation in the last few weeks. Well bring you that as soon as it begins. Were expecting that within the hour ahead on todays show, a key move for earnings. Netflix, chipotle, Texas Instruments and snapchat gear up for results after the close. Full coverage of those names and ana analysis of the reports when they come out. And how volatility has impacted brokers. Well speak with chairman Thomas Peterffy after the numbers hit were down 2. 8 on the s p 500 oil very much in focus energy the best performing sector today, only down 0. 6 well dig into all of that coming up for you. Mike santoli is tracking that market selloff. We have got the cohead of oil trading, ben lucker, important guest to join us to discuss crudes unprecedented volatility in the last couple of days lets kick things off with you in the broad markets look at the s p 500 now working at 4. 5 spillback from the friday closing highs, right here for those who care, we basically had this rebound rally of 50 of the total losses, just had a little bit of a touch of the 50day moving average and then rolled off from there. How do we characterize this pullback from the rebound rally . Right now it seems pretty routine. A lot of the leading stocks in the growth area have been taking a rest today and the rest of the market is absorbing those losses it seems like around 2600, 2650, a lot of folks who watch the charts say pullback to that area would basically be relatively routine and maybe we chop around for a little bit on there as a maybe not so bad Case Scenario that would not involve any kind of full retest but right now, it seems relatively conventional in terms of this pullback well see if it develops in anything more. Here is stocks versus bonds. Bond yields have been suppressed did not really reflect a lot of the perhaps forward looking exuberance of stocks this is going back to one month and one month on thursday is the low for stocks you can see the s p 500 had this move higher, tenyear buying yield started to go down stocks dragged in the same direction. I want to take a look at some of the megacap Growth Stocks compared to the average stock in the s p 500. This is a ratio of megacap growth etf against the equal rated s p 500. This peak here was the bottom of the market that was when a lot of the rest of the market rebounded and therefore outperformed megacap growth and we rebuilt that premium in megacap growth in the last couple of weeks thats what held the market up now were seeing a little bit of softening of the activity here we do have a very narrow concentrated market at this point. Well see how that shakes out. Mike mentioned at the top Energy Sector, the best performing today and one of the best performing this week as second or third best so far this week i wonder how much the market has improved, feels like an odd thing to say that when were down 3 on the s p 500 relative to a month ago. If we saw this dislocation in an important commodity market, a month or so ago, would we not be seeing equity markets collapsing and the fact that were not is a little bit more encouraging perhaps than it feels like with red across the screen. I wouldnt say there is no impact to the fact you have had these very severe dislocations i think it is creating a little bit of a rethink of risk levels across, but to your point if it happened before you had a lot of the fed moves before the market showed that it was willing to actually have buyers come in there, and put some distance between us and the lows and credit markets rebounded a little bit, i think it would have been a bit worse. Also i think the equity sector, Energy Equities are telling you that just skaexactly how much we can it get from here if you needed a final flush or climactic activity in the actual commodity it looks Something Like this. Thats probably why the stocks are well off their lows. Im just wondering about the earnings reactions because were sort of getting into the heart of earnings season and well get a bunch after the bell and in the absence of any kind of guidance and outlooks from companies, mike, how are investors trading around these results . Travelers is up today, coke is down thinking about the banks feels like were using a whole new set of metrics i think it is basically much more of a kind of a spin of the roulette wheel than it normally is in terms of figuring out what is priced in the market. There is a greater divergence between among analysts for estimates right now than there has been since 2009. Really isnt a consensus when you have a company beating i think it is about Balance Sheet, what the company says, on the cost side, and the degree to which they have visibility into when business might normalize. Thats probably where it comes in you have netflix, well have to see how that trades. That has been at its highs, everyone is crowded into that stock, you wonder if expectations have gotten a bit too high in a selective area like that. Thanks very much. See you again shortly. Oil creating for a second straight day wti june crude contract falling 43 to settle at about 1150. The may wti crude contract climbed out of negative territory to settle at 10 a barrel the u. S. Oil etf being halted repeatedly throughout the session. For more on this historic volatility in oil markets, lets bring in ben luckic of oil trading at traffic euro, the second largest independent trader of oils and metals globally one of the big commodity houses out there. Ben, thank you very much for joining us much appreciated so lets start with a sort of 101 really with the futures contracts, you trade them every single day as a commodities house. But youre actually looking more from a not to take delivery of the oil where as perhaps a lot of the volatility in the last couple of days has been Financial Market speculators which partly explains the problem we had, is that right . You hit the nail on the head, thank you very much for having me you just described i think the fundamental problem we had over the last couple of days. A lot of nonphysical Market Participants that are transacting in the prompt contract, which expired today, may wti. And it created a lot of noise and in my opinion the market has become disorderly because of this because you are spot on only a small amount of people transacting on the contracts who intend to tank or give delivery of the underlying crude oil. I think youve got it spot on. And how impressed is it to see a futures contract go negative is it unheard of or have you seen it before such that it gives you some level of confidence the market might recover in the next couple of days, now that contract has actually expired. Something as important as the crude oil contract, which is a massive commodity, i didnt really think it was possible and i think a lot of the industry didnt even understand that it was plausible in this contract i think what actually exacerbated the move yesterday was the realization of many Market Participants that your total loss could be worse than zero people understand if youre buying a distressed asset, equity or something, the worst price is going to be zero. I think it dawned on a lot sometime during the afternoon yesterday when the exchanges were explaining this that we can trade negative and we did and we traded deep negative it is not sustainable, but i think it caught a lot of people o out. It is not sustainable but were seeing the forward looking contracts fall pretty sharply today, including june, which is getting hammered now down 12 i think at 10. So what stops this dynamic for now it is difficult the oil market was almost unsalvageable for april and may. We had demand destruction completely unprecedented 30 Million Barrels a day, 35 Million Barrels a day of demand gone as everybody froze up and stopped moving all over the globe at the same time i would have expected we might be looking a little better by june the problem is there is a lot of length in that june contract and a lot of retail length you mentioned the u. S. Oil fund. They had a lot of length that as retail people trying to invest in what they perceive to be a cheap crude oil market the problem with this is i dont think a lot of these investors understand contain and how it works and the cost of rolling those positions. I think thats added to the volatility in the last few days. So june at 12. 50 as i see it here now, it can trade lower, it did trade roughly 6 lower earlier today. Do i think well have sustained negative prices . No because it solves the problem, people stop producing and people are incentivized to find somewhere else to put that oil. Ben, there is one singapore commodities, small commodities Trading House that filed for bankruptcy in the last couple of days, some question marks over their financials not just necessarily being on the wrong side of this outside of that, do you think there will be some significant financial speculators that were long this contract that fell into negative territory that will be seriously crushed by the move we have seen in the last couple of days i think there was pain yesterday for people and i think the moves were much larger than peoples value at risk models would have suggested if you realized that that may june contract, the spread was minus 6 and settled at minus 58 yesterday, no one thought that was possible. Yes, i think it is liketally the was a lot of distress in the market for every contract there is somebody on the other side some people undoubtedly had a difficult time. Yeah, and sort of wondering if you could expand on that a little bit about who are the big winners and who are the big losers here . It appears the Retail Investors and some of these etfs are getting hit pretty hard. Who else is left holding the bag and who benefits on such extreme moves . I think the people that benefit are people with tankage and the ability to store so i think physical trade is doing their best to solve this problem by putting the barrels away that we dont have a use for now. I would suggest people who saw the issue coming via seeing the huge demand, destruction coming, probably knew that it needed to be deeper. I think the wet freight owners are doing very well as well. This is a group of people that had a difficult number of years as freight rates were low. Freight rates spiked because people realize that these vessels normally used to transport the oil around the world will instead be used as tanks and wont move and so and they have done well i think Financial Investors who didnt understand what they were doing over the last couple of days and didnt understand the risks they were taking by being long a contract for something that the world doesnt need more of at the moment are probably the losers the contracts are anonymous, hard to see, i would suggest youll see in the coming days and weeks who had a difficult time ben, i know it is hard to guess where the price will be in the shortterm, but if we look more medium to longterm, where do you guys stand on expectations for how the industry looks in a year or twos time around the world. Will saudi arabia and russia be licking their lips and celebrating taking huge market share off the u. S. Or is that kind of story overdone a little bit . Maybe overdone a little bit were very hopeful for the u. S. Shale industry, were the largest exporter of u. S. Crude oil. These are our customers and people we know well. I think market will have a hard time to perform very well in the shortterm we have put down in excess of a bi billion barrels of stock any recovery when we all get back out of this lockdown and can start moving again, will be difficult to spike because we have to draw through immense amount of stock. I would say the chronic underinvestment in large projects is only going to continue while we have the more tepid prices for crude oil and products this may come back to bite us. It wont be soon, but in 18, 24 months, i think we can see prices, decently higher than here we need to get through this lockdown, we need to get through this virus, we need to get back to work,to school, to what everybody was doing prior to this and start living. The oil industry cant recover until people start doing that. Ben, thank you for joining us. Thank you very much. Ben luckoch, head of oil. The race for treatment, well speak with the ceo of one Company Using antibodies from the 2002 sars outbreak to work on a treatment for coronavirus back in a couple of minutes. Flexshares etfs are built with advanced modeling. To fill portfolio gaps and target specific goals. Strengthening client confidence in you. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. For a prospectus consince 1926, nationwideon. Weve been there in person, during trying times. Today, being on your side means staying home. Nationwide office of customer advocacy. But we can still support you and the heroes who are with you. Were giving refunds on Auto Insurance premiums, assisting customers with financial hardships, and our foundation is contributing millions of dollars to charities helping with covid19 relief. Keeping our promise to be on your side. Welcome back a check in on the markets. Were lower to the tune of 3 on the nasdaq, the laggard to date. 2. 7 on the s p 500. The dow down 2. 2 . All 11 sectors in the red, energy surprisingly the best, only down half of 1 tech and financials the two worst performing sectors lets check in on individual market movers, shares of beyond meat jumping, teaming up with starbucks to launch a plantbased menu in china after the reopening of most starbucks in china following coronavirus related closures the stock is up 7 lab corp. Getting the green light for the at home covid19 test consumers will fill out a questionnaire and get it appr e approved by healthcare provider. The stock is up 2 today. Sticking with the coronavirus, our next guest is developing a treatment for covid19 using antibodies produced during the sars 2002 outbreak lets bring in distributed bio ceo and founder Jake Glanville dr. Glanville, thank you for joining us talk more about what youre working on, the convalescent Plasma Treatment and whether it is already being used in patients. Well, thank you for having me on what were working on is similar to a convalescent Plasma Treatment, but there are some advantages so with convalescent plasma, youre taking the blood of someone who recovered from the coronavirus and youre taking out the antibodies and giving it to someone else. What were doing is engineering a very specific antibody that doesnt need to come from patients we can grow this in biovats, they look like huge beer containers, those are found in over 40 nations. What we did is took antibodies that were discovered to neutralize and protect against the sars virus, which is a cousin of the Novel Coronavirus and made mutations to adapt them to they recognize the new coronavirus. We completed the engineering and theyre with the u. S. Military to be evaluated and were sending it out to other groups to evaluate at the same time because right now money is cheaper than time. Where are we with this . How far away is it from perhaps being ready to use were doing everything question to accelerate this process, but it is going to take some time. After the studies are done we go into a manufacturer which takes a few months and a human phase one two trial that happens in august after that, provided we see it is safe and effective, you can distribute it to large numbers of hospitals in september. The major advantage of an antibody over a vaccine is you cant give a vaccine to a patient. 10 of people that get really sick and go to a hospital, those are the ones that need treatment. As soon as we have a good work treatment for them, the economy restarts and people can go back to work. So how quickly can this actually ramp up to be able to help people dealing with this now . Yeah, so we, again, like i said, money is cheaper than time right now. So we are pushing on all fronts to try to get Financial Support from nations, from funding agencies, we think they should Start Building up stockpiles of the antibody in anticipation of a positive result on the phase one two trial in august. What we dont want to do is get caught flat footed like the Ebola Outbreak where a limited number of antibody doses, supereffective from ebola, but they ran out and they ran out for months and just because of the global cost of the economy and our lives, we shouldnt do that. We should build up large numbers of doses in many nations simultaneously that will take coordination, it is a drop in the bucket compared to the billions of dollars from the Global Economy every day. It is good your optimism on this potential treatment w where do you stand on the debate of potential herd immunity for various nations . Is that still plausible or are we talking about containment and or treatment if you catch it the answer is all of the above. Herd immunity is enough people get infected, they wont get infected a second time this is what happens with the flu. Here we think that can largely be effective, some people appear like they dont develop effective immunity after they get this virus, which is concerning, but that said, about 80 of people are developing immunity afterwards. Thats great because thats means the virus acts like its own vaccine in the population. The problem is this is a dangerous virus. So 10 to 20 of people who get it get so sick they need to go to the hospital. As soon as we have a medicine to treat at the hospital, those remaining most people who get infected will recover and they will have some protection. So we want both of these things, we also want a vaccine, that wont be ready toward the end of 2021 that treatment and just letting people slowly get exposed will eventually get everything back on track why do you think china hasnt had any big second wave in terms of its home grown infections so i think there is a mixture of things there. They applied vigorous isolation policies i think their numbers may be underreported. I think you look at the numbers, it is just not realistic the number of people dying or sick ill say that is a fundamentally challenging problem to accurately track the number of people sick or dying and many nations are suffering from that. I think most epp deem ologists are assuming the numbers are probably higher. They put very harsh measures in place. It is difficult to stop the infection, but you can slow it down and unfortunately until we have a working medicine, thats the calculation every nation is going to need to make. Do they send everybody home, damage the economy, protect lives or let them go back to work, let things restart put you risk an additional outbreak . And i think well see waves of that until there is an effective medicine in place. What about florida, we saw so many images of the crowded beaches shutting down very late, why didnt they have a spike like we were seeing in new york and new jersey i think the spike is coming so the way to think you think it is coming everywhere yeah, it depends how many people were seeded in the area they may have had less cases initially. There are pretty you are analysts, there are predictable trajectories of the number of new cases that started expanding outwards in an area and depends when the starting cases took place. This is exponential growth not a lot of stuff happening initially and then a whole bunch of cases hit at once there are differences. In new york, everyone is living on top of each other a lot of people are in florida, there is a high risk of population to the elderly, susceptible to covid19 complications. I think it is realistic for us to assume there will be additional cases as an analyst, unfortunately, i monitor the deaths because the number of cases is very dependent on how aggressive testing is being performed so if youre not performing many tests, you dont see many cases, where as the deaths are largely unavoidable and relatively consistent across nations. Thats the number you watch to see how bad the problem really is. Keep us posted on the treatment. Jacob glanville, thank you for joining us thank you breaking news on gm, phil lebeau has it for us. General motors is shutting down its maven car share program. This program is only four years old, has about 230,000 members this is essentially where you are paying a monthly fee and then youre sharing cars within the network and particular area. They were in seven metropolitan areas. Never a huge program didnt get the traction that many people thought it would gm decided, we got Better Things to spend our money on right now. It is shutting down the maven car share program. Back to you. All right, phil, thank you. 36 minutes left of trading losses across the board. Were off session lows we have every single sector inside the s p lower technology and financials getting hit the hardest. Overall market down 2. 5 the dow is down 500 points we were down more than 600 at the lows the nasdaq, technology, getting hit hard today, down 3 . Were counting down it a big afternoon of earnings for you. Netflix, Texas Instruments, chipotle, snap, all gearing up to report. Well bring you the highlights and what management is saying about the impact of the shutdown sn tseumrsit its a thirteenhour flight, thats not a weekend trip. Fifteen minutes until we board. Oh yeah, we gotta take off. You downloaded the Td Ameritrade mobile app so you can quickly check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. Welcome back breaking news on nintendo. Dom chu has details. Fun and games, video game wise a thinly traded american depository receipt on the japanese video game maker, a reuters report saying value act with a Value Investor jeff ovens shop has taken a stake and 1 billion in nintendo shares they have been building this stock since 2018 and added to that in february and march this is according to a letter cited by reuters well keep an eye on for that. For now, back to you. Thanks so much. Coming up, Interactive Brokers due out with their earnings after the close well discuss the results and the impact of the crazy markets with their chairman coming up. Quick check on the bonds, a lick lower today welcome back under 30 minutes left of the session. S p 500 down 2. 26 , down on 2. 2 sectors there for you, tech and financials at the bottom energy the best performing sector today somewhat surprisingly down less than 1 . Also outperforming the rest the market for the week as a whole also worth noting that off the march lows, the Energy Sector is still up about 30 where, of course, broader oil is at all time lows, so the stocks themselves not suffering anywhere near as much as the underlying commodity here are the key thins driving the action, historic moves in dislocations in the oil market as we mentioned, the may contract closed. And were seeing june and july sink to levels not seen in decades, congress appears to have a deal on additional funding for the Small Business Relief Program and corporate earnings rattle investors as companies lower and pull their outlooks for the rest of the year time now for a coronavirus broader update with frank holland. Here is the very latest one of the first organized looks at a drug praised by president trump, hydroxychloroquine did not help in the treatment of covid19 a study of 368 patients in veterans hospitals, more deaths among those who got the malaria drug than for those who received the standard treatment the study has not yet been reviewed by other scientists nearly 8,000 businesses that have asked the Small Business administration for an Economic Disaster loan may have had their information exposed to other applicants the sba says it fixed that problem. Wisconsin, Health Officials identified seven people, six voters and one poll worker who contracted covid19 in connection with the states in person primary voting earlier this month we do not know yet if any of them passed away and in louisiana, a pastor who continued to hold Church Services despite covid19 restrictions has now been arrested tony spell is accused of trying to hit a protester with a church bus, he says the charges are false and a desperate attempt to shut him down. As always, for more coverage, head to cnbc. Com back to you. Frank, thanks. Dow component travelers a rare bright spot after reporting earnings before the bell some questions out there about the role of insurers during this pandemic Contessa Brewer has been digging into that question with more contessa travelers is withholding guidance because of the uncertainty surrounding the economy. Ceo is waving a red flag over a tidal wave of business disruption claims on the Earnings Call today. He was very clear that commercial property insurance requires physical damage even in a government ordered shutdown and the standard policies, specifically exclude loss or damage from a virus. Chubb is also getting ready to report earnings after the bell and its ceo is preaching the same sermon in part because lawmakers in a number of states are introducing bills to try and force these insurers to pay on noncovered claims. Contessa brewer, thanks. Big names in the Restaurant Industry including wolfgang puck, Daniel Boulud and Thomas Keller they formed an insurance to push insurers to pay out claims even if restaurants dont have pandemic insurance they want the government to reimburse the insurers joining us is david samson, the ceo of american Property Casualty insurance association, a National Trade association for the home, auto and business insurers welcome, thanks for joining us explain why you say the insurers are not on the hook for these gigantic losses were going to see at american restaurants . First of all, it is important for people to understand that insurance is highly regulated at the state level for both market conduct insolvency that means every policy that is sold in the United States by a company has to be preapproved or that policy form has to be approved by state regulators as to what it covers and what it doesnt cover. And it is clear in Business Interruption coverage, part of a broader property insurance policy form that virus and bacterialrelated events are not covered under Business Interruption thats exactly why several weeks ago the National Association of Insurance Commissioners came out with a very strong statement, that said that these pandemic claims are not covered under standard Business Insurance interruption policies. But dont you have more bills in more than half a dozen states that looking at requiring you to actually cover these business disruption losses . There are a number of bills that are being talked about in the states i think the only one that has actually been introduced as a piece of legislation is in new jersey that purport to require mandatory retroactive coverage for what is clearly not covered in Standard Insurance policies you know, i would say once upon a time in america there was a law that prevented retroactive laws from being passed, called the constitution of the United States clearly there are many legislators that have forgotten about that david, do no restaurants have any clauses in their insurance policies that could be argued to potentially cover this i get that clearly a pandemic specifically is not something that appeared in many policies what about broad policies for protection against Health Crises of some sort well, remember Business Interruption insurance is a property insurance coverage. And the reason that businesses are shut down is not because of damage to property it is for fear of human to human transmission of a communicable disease. Thats not a property insurance claim. Im sure that there are going to be some very enterprising plaintiffs, lawyers, that are going to try to expand coverage. Thats what they always do but exploiting this crisis with litigation profiteering will stop americas recovery even before it starts and it is not the way to get assistance to businesses and in this time of crisis we as an industry are very supportive of federal Government Intervention and support to inject liquidity into americas Small Businesses this is a disaster of a proportion that only the federal government can deal with david, i get your point about retroactive legislation if there were terms that were set and were met, i can see the argument what about Going Forward i presume you accept that the type of insurance policies a lot of these restaurant tueurs tooku was to protect them from a wild card threat to their business, annoying to them, it wasnt in the policy would you adopt the policy for free to no extra cost to include this sort of thing were it to happen again no, pandemics are uninsured events because they are uninsurable events what i mean by that is a pandemic by its very nature hits globally all at one time and it hits all businesses at once there is no way that an insurer, even global reinsurers can diversify their risk in the midst of in the midst of a pandemic do there need to be Public Policy solutions Going Forward so that we dont have this haphazard approach were seeing now with the Small Business Assistance Program that is constantly running out of money after just a couple of weeks yes, but thats going to have to be a federal a federal program to deal with to deal with something of the magnitude of a pandemic. So, david, it is not clear who youre saying should cover the losses if im a Small Business Restaurant Owner and ive been paying, you know, my Insurance Company for disaster Business Interruption insurance and this doesnt qualify, then what am i going to do . Well, first of all, insurers have paid out over the last five years 1. 8 trillion for all Property Casualty claims 140 plus billion for claims in major commercial property lines, for the ongoing type of natural disasters that occur out there as well as physical damage to commercial property such as caused by a fire in a restaurant kitchen. You know, i would also point out that only 30 at the highest level, only 30 of all Small Businesses in the United States even buy any kind of Business Interruption policies and so this is not a widespread solution for the Current Crisis that we find ourselves in, but it goes back to a basic premise for base interruption coverage, which is damage to physical property and thats not what thats not what were experiencing right now the businesses are not closed because they have been damaged by storm water, hail, underlying physical damage to property. Theyre closed because of fear of human to human transmission of a highly communicable disease. David samson, looks like you have a big fight on your hands, thank you for joining us to tell all about it you too take care. 20 minutes left of trading here is where we stand the dow was down actually over 700 points at the low. We cut our losses, now down about 485 points, down 2 . S p 500, we got every single sector in the red. You got technology, communication services, financials, those are taking it the hardest. Energy is holding up the big focus of the market has to be another huge drop in the price of oil after the break, managing the turbulence, jetblue ceo out with an update on the state of business as Richard Branson offers his private island as collateral in a plea for government help. Well have all the details right after the break. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. We believe in education built for all people. , [woman] snhu was the best experience of my life. [man] without snhu, i wouldnt be the leader i am today. [woman] i graduated high school 19 years ago. I still finished. [man] in the military, you feel that sense of accomplishment. Thats what snhu is. You will march from this arena and say to the world. I did it. [woman] you did it. I love you. [graduate] i love you too. Say hi. A pandemic has the possibility of bringing us together in ways none of us would have been able to expect. Im so small said the mole. Yes said the boy, but you make a huge difference. Welcome back shares of jetblue lower today after a downgrade to neutral from susquehanna jetblue ceo speaking with our phil lebeau earlier on cnbc and phil joins us with some of the highlights phil in. Sara, jetblue like all airlines in a cash conservation mode who can blame them. Theyre not sure when demand will pick up, whether it is going to happen in the summertime or in the fall or even later on. Here is robin hayes, ceo of jetblue talking about his view of the market right now. We hit the bottom were bumping along the bottom we dont really see much yet as by way of change to that you know during the month of april were flying 10 to 15 of our schedule, but normally fly, i see a similar sort of patent for may and probably into june as well. Were hunkered down now and were sending it out jetblue like really all the other airlines in the u. S. Have applied and are going to be receiving payroll grants from the treasury department, whether or not they take out a loan from treasury robin hayes say they have not decided on that. Thats a possibility, guys with irlines, phil, and mentioned that Richard Bransons Virgin Australia entered volunteer administration as the Global Demand for air travel continues to plummet he posted this message to employees earlier on instagram i know only too well how devastating the news today will be to you. In most countries federal governments have stepped in. In this unprecedented crisis for aviation to help their airlines. Sadly that has not happened in australia. Airlines have been granted bailouts and loans from the government bransons partner, of course, on virgin galactic, the space project, who argued against a rescue package on cnbc earlier this month are you arguing to let airlines, for example, fail . Yes why how does that make sense in the broader scheme of the economy . Because it is not because when you look at what it means, this is why im saying, this is a lie that has been purported by wall street. When a company fails, it does not fire their employees it goes through a package bankruptcy branson isnt just seeking funds for his traaustralia carr. He asked for a loan from the uk government for ukbased Virgin Atlantic in that, he does seek 500 million pounds, and offers to put up his island amongst other assets as class raollateral. You consider hes asking for a loan, not a bailout and offering collateral, it is kind of hard to argue with. On the flip side, and with Virgin Australia, he also said were going to work with the government to keep the planes in the air, the jobs in place, suggesting that even though his equity has been wiped out, there was a point that the service can keep going you can see both sides of the argument the phil i wanted to come back to on though here is that delta has a 49 stake in Virgin Atlantic in the uk and i guess the uk government will probably want to see something from them as well as from branson if they go ahead with any kind of loan or bailout. Thats a real problem ossibiy theyre going to have to make a decision, are we going to step in for the airlines or are we going to let them fail the decision was made early on in washington, we want the airlines not to have any major layoffs and we also want them to maintain at least bare minimum service. Once that decision was made, they basically had to say, okay, you want to stay in business, you got to help us out and well see that with other governments as well around the world. Thank you for that. Tomorrow, phil will be interviewing deltas ceo, dont miss that at 9 00 a. M. On squawk on the street. E na3 minutes left of trading. Thfil minutes of trade, well go inside the market zone. Thats next. Dont get mad. Get e trade, dawg. Welcome back just over nine minutes left in the trading day. Were in the closing bell market zone commercial free coverage of all the action heading into the close. Mike santoli here to break down the crucial moments of the trading day. We have nancy tangle here as well lets kick things off with the broader markets. Stocks tumbling as the oil market continues to crater wti crude may contract set ntled in positive territory. Some 13 or so per barrel for wti june contract. Clearly, mike santoli, it weighed on sentiment overall for the market, though if you look at the sector construct today, it is not been the oil stocks that have hurt the most. It has been some of the recent outperformers in the tech space. Exactly the big Growth Stocks that are taking a breather today and they have been such a driver of this last leg of the rebound rally that the everall indexes aring are to absorb that weakness. On the oil side, it is one reason that the equity market is not taking it harder is that it is not necessarily sending a macro message that is a surprise to anybody we knew about full storage as disruptive as it is in energy and as deflationary as it all seems, down the road, it doesnt necessarily really qualify as brandnew disruptive information just yet not brandnew maybe, mike, but it is a reminder that people arent driving to work theyre in the going on airplanes. There is no Economic Activity and it does feel like this has been much more prevalent in terms of the Oil Market Dynamic than the equity market i wonder if it is a warning sign for the equity market which has been more complacent as of late about the economic threat. Maybe, sara though i i wouwould say if you at the areas that would suggest whether in fact were going to have a quick pickup in driving or shopping, it is not as if those stocks are coming back hard and leaving this the indexes. I think there is a way to reconcile both things. Thats why in both instances it comes down to how long are we going to be stuck in this spot, not necessarily what is the actual nature of this complete halt to Economic Activity right now. Nancy, do you think equity markets have been complacent of late yes, i do that was the fastest and most dramatic bear market rally that we have ever seen. And on very Little Information and certainly not earnings or economic data. So im sort of relieved to see us pull back a little bit and maybe reconsolidate. I dont know if we test the lows, but i do think that we have gone too far, too fast and this will give some of us of a chance to go in and add the holdings that we find attractive lets talk about cocacola. That stock lower today the company pulling guidance for the year citing uncertainty about the pandemic and despite a beat in the numbers for last quarter, the Current Quarter is looking ugly. Cocacola saying global volume is falling 25 so far for the month of april the increase in sales from hoarding groceries turns out is not making up for lost business, from restaurant, theaters, stadiums, what it calls away from Home Business i spoke to coke Ceo James Quincey earlier about what he is seeing and what he expects to see in the longer run for the consumer there are going to be temporary effects as we go through the lockdown and into these graduated reopenings where different brands and different packages and different channels are going to benefit in the long run, the big structural trends will reassert themselves the Beverage Industry will grow, consumers will want choice so it sounds like it was in response to a question about whether these kind of shortterm trends that hes seeing where people are buying diet coke where that has been growing again, that was in a longterm secular decline or buying orange juice to drink and eat breakfast at home, also in a longterm secular decline will be temporary and hes focused on the long run, which managed to convince investors for a little while the stock was doing a little better. How do you think of cocacola as a staple in this environment where people are always going to buy their food and beverages and yet coke is pretty exposed here to the away from home channel, what it calls, virtually shut down yeah, that was an awesome interview this morning i thought quincy said a number of things that resonated with me, but most particularly that hes going to continue to pull that lever on pricing and packaging size that i think will benefit the company as it already has. I have a lot of confidence in him as a manager and leader of the company. But i think what we have to assume is that these secular trends that were some of which were already in place, like Online Purchases and streaming are going to continue and accelerate coming out of this and so that is where i think the challenge is going to be for them, the away from home is going to be hard to replace. We are selling off a little bit in the close were down over 600, 2. 5 , 3. 4 for the nasdaq, s p 500 somewhere in between the two busy afternoon for congress. Kayla has a rundown of what we should be expecting to come. Kayla . In a few minutes time, were expected to see Senate Majority leader Mitch Mcconnell usher in a very brief, just a few minutes session of the senate to vote on an interim package 484 billion that would expand funding for that Small Business loan program as well as provide 100 billion in funding to hospitals and to testing resources. We await that vote and well bring you the latest when it happens. Kayla, thank you. We have netflix and chipotle earnings after the bell. To kate rogers for what to expect from chipotle first kate analysts are looking for eps of 2. 90 on revenues of 1. 4 billion. Same store sales projected to increase by 4. 7 thats a high number given some of the comp warnings we have seen from other businesses during this pandemic the big things to watch out for beyond those same store sales, the digital growth number which has grown at about 80 or even more in the last few quarters as well as any commentary on delivery outside of the pizza chains, analysts positive on chipotles ability to withstand some of the pandemic business hit as customers have grown used to eating chipotle via delivery and carry out. Back over to you guys. Kate rogers, thank you. This is one of your new favorite stocks the question is, how much has already baked in had a pretty substantial runup with this market rebound over the last few weeks youre right, sara. We didnt even get to buy very much we bought 1 position in our portfolios i would like to this one at 3 to 4 level. Im hoping for a little bit of a pullback but earnings arent going to matter the base of customers is super loyal. I got i had chipotle last night with uber delivery, it was flawless and excellent the food was still warm when it got to my house. I just think this is one of those stocks that you want to be able to purchase at opportune times and hold on for a very long time. All right lets get more on the market internals now. Mike santoli what are you seeing on another downday, second in a row. Skewed to the downside if you look at the market breadth it is about 3 to 1 to the downside been consistently like that. Not really heavy washout but definitely with a lot more profit taking and weakness under the surface. Look at two of the leading areas of the Market Software and biotech, recently they have been winners, theyre giving back, you know, 2 to 4 here and the rest of the markets didnt have an answer for that to hold it together without some of these leadership growth areas of the mark market and volatility index, a little bit of a low here and maybe resuming wouldnt be a bullish thing if it took flight from here. Thank you very much for that. We have 50 seconds left of the session, down 3. 3 on the nasdaq, which is the laggard of the major indices. The russell is the outperformer, down 2. 2 . The dow down 2. 5 . The s p down 2. 9 . Oil continued to be front and center if we ignore the may contract, which did settle today, june contract down about 50 over two trading days. Brent is an indicator for you as a nonwti, noncontract expiring option down 30 over two trading days yet week to date and today energy not the worst performing sector today, energy is down 1. 6 on the s p 500. All 11 sectors are led lower by tech and financials down 3 or 4 or so the dollar rallied today so another couple of bearish signals closing here with the s p 500 down over 3 , sara. 29 out of 30 dow stocks falling into the close welcome. If youre just joining us. Im sara eisen with wilfred frost and mike santoli there is the dow, losing 2. 7 , a loss of 630 points session low down about 700 points merck, boeing, intel, cisco, biggest losers travelers the only dow stock to finish higher. S p 500 lost 3 . Selloff losing steam into the close. With groups Like Technology getting hit especially hard. That sector closed down 4 financials down more than 3. Healthcare down 3. Communication services as well the faang names got hit hard today. The nasdaq down 3. 5 it has been the outperformer over the last few weeks for sure russell 2000, index of small caps did better today. It has been the big loser pretty much all year, down 2. 3 , better than 3 drop for the overall market coming up, a wave of big earnings reports well break down results from netflix, chipotle, snap, Texas Instruments and Interactive Brokers. And then joined exclusively by Interactive Brokers chairman Thomas Peterffy in an earnings season unlike no other joining us to talk about the market today, Nancy Tengler with us and ed lee from the New York Times times to help us get through the earnings what we saw today, it seems like the easiest excuse for the selloff has to do with the pro price of oil who is plummeting you would think thats the useful cover story and i think it did weigh on risk sentiment and people reevaluating where their bets were and whether the Capital Markets were able to function well in all of this it was the really big nasdaq Growth Stocks that have been holding up the indexes that gave way today. And that was the downside leadership you look at market cap effects the net outcome is s p is down 5 over the last couple of trading days after having bounced by 30 in less than a month and before that, it crashed by more than 30 in a month. You see that a lot of the moves are based on positioning, and whether in fact you hit some kind of technical trigger. I think you have to wonder if it is just a breather from the big Growth Stocks or if rotating away from them and maybe cause something more eventual initial ty bro vulnerability broadly. Netflix just hit. The setup could not have been harder expectations high. The stock up 34 year to date. With Everything Else down and the stock is jumping 10 after hours. Revenue and eps basically in line, 5. 77 billion for the revenue. Eps a little bit behind, 157 per share. Streaming net ads, which everyone was focused on, could they add many customers in the quarter, 15. 7 million, 15. 8 million to round it up the estimate came in at about half of that, about 8 million or so 8. 2 million. They have blown past the expectation of subscriber ads during the quarter and dont forget as well, guys, we only saw the lockdown really kick in to pace in the final month of that quarter. And yet they have blown past the expectation, just for a guide of where those numbers were, for each of the quarters over the last year, it was adding 9, adding 3, adding 7, adding 8 and now 16 in a quarter. Forecast for next quarter is to add another 7. 5. Ill keep digging through the numbers. That is what the stock is keying off, mike, up about 10 or so after hours. No doubt thats what thats the number that stands out. Unclear if the street had revised up subscriber growth estimates coming into this based on some idea of an acceleration based on the stay athome activity without a doubt, thats the key metric the other side of it, nobody is going to talk about this as a sustainable thing, production shutdowns is going to maybe cost them some new content at some point. It also probably slows down cash burn and will be a test on exactly how much the Subscriber Base needs the constant flow of new content. Netflix always releases a shareholder letter where they give us a lot of color as to what theyre seeing and how theyre feeling about it the first line in our 20 plus history we have never seen a future more uncertain or unsettling the coronavirus has reached every corner of the world. And then they go on to talk about, nancy, how, you know, they have been benefited from it it is always tricky for Companies Company s to come out and say were doing better kimberlyclark will have issues tomorrow with that, because people have been rushing to buy toilet paper netflix has been one of the few winners during this market turmoil. The stock was up 35 so far this year to add another 10 after hours are you a buyer . No, it is just too expensive for us we have been, you know, our streaming bets are in disney we got a proview for the fantastic number that they posted today with the subscribers at disney also comcast is something that is in our valuation range. I would love to own it it just has gotten very pricey i think mike raises a good point and then we have got the issue with them just burning cash. And so i think at some point thats going to have to be resolved lets bring in Julia Boorstin diving into these numbers. What stands out for you . Some of the stuff here is really interesting they point out that though their subscriber growth, twice what was forecast, really Strong Subscriber growth, revenue was in line and what they say here in this letter is that the member happen growth temporarily accelerated due to home confinement, but International Revenue will be less than previously forecast due to the dollar rising shortly. They mentioned due to the production shutdown, some cash spending will be delayed which will improve the key cash flow they note that their competitors and suppliers will be impacted as much as they are in terms of new titles so theyre speaking about the shutdown that really impacted all of hollywood, but notable that this is going to start to impact them and theyll start to see those delays but what Reed Hastings is saying is that as people shelter at home, they hope they can make that experience more bearable by providing a diverse range of high Quality Content but they do benefit from having a pipeline of content that was either complete or in post production that when filming did stop. Thank you for that. During first two months of q1, membership growth was similar to the prior two years, then with the lockdown orders in many countries starting in march, many more households joined netflix. They expect the revenue effect of that to pick up in thor in the quarter because these people joined at the end of the month ed lee is with us as well. Ed, what stands out to you i know we were discussing a little bit back and forth about the expectations being high coming into this with only really march to play for from the Home Entertainment aspect, but they have blown the expectations out of the water. Yes i mean, if you if youre stranded on a disert island or stuck at home this is the dream service, right netflix is tailor made for these teams. I think even if you have High Expectations for it, i dont think anyone had 15 million. They definitely the other thing i thought was interesting even though this is going to be a one time play, they were cash roll positive for the First Time Ever at least since they have been doing streaming. Thats also because of the downturn in hollywood. They havent been spending on productions. By that measure they have been theyre profitable for the first time they have been Balance Sheet profitable for years now i think thats an interesting aspect they were already looking to ramp down their cash burn this year anyway. And theyre still going to come back up to it once production kicks back up. That was an interesting thing. I think it is the go to service for the stuck at home, millions of americans and also people around the world and, you know, it is durable whether good times or bad times, thats what you want to be on. So one question i have is how hit driven it is tiger king was everywhere, everyone was watching it at a time when everyone was stuck at home now that theyre cutting their budget to your point, going cash flow positive, maybe for the wrong reason, do they have any other hits that they can rely on and how much does that actually grow subscriber growth i know people talk about this earlier in the segment that the shutdown will create a gap in their pipeline as well to your question about what hits do they have coming up, so, yes, they have a gap. It is always unclear what will or wont be a hit. But as other Hollywood Studios cant find placements for their films and theaters and theaters were shut down, theyre calling up netflix saying do you want to take this off our hands. Even though they cant produce now along with everyone else, theyre the beneficiary of a lot of these films now that cant make it into the theaters. They Just Announced something today as new Sherlock Holmes type of film, that netflix got the rights to, that otherwise would have been in theaters. Theyre going to benefit from other studios coming to them theyre sitting very pretty right now. To your point, big hits, tiger king, the last four weeks was watched by 64 million households i was one of that 64 million not actually top, though top is the movie spencer confidential, 85 million. Second place money heist, 65 million households watching that in first four weeks. Impressive numbers on that front. Wait, wait, wait. How about love is blind . It got 30 million. Thats a good one too. Thats half thats nothing compared to tiger king, 64 million. We never get to know of course if people watch for like two minutes or longer, i forget the exact qualification, but some good numbers jumping out there mike, did you like tiger king, the stock coming back from that nice jump, and talking to the runup it had to date . I remain among those who have yet to dip into tiger king maybe thats going to be something that will give them a kick next quarter. The setup of the stock was very demanding in terms of how far it has run. I do think there will be a question as to whether there is going to be change in churn rates once people are out of lockdowns. Unclear. What i think is net positive, Second Quarter guidance is above 7 million, it is about three times what they did in the Second Quarter last year theyre not really projecting a huge giveback from todays outperformance in the latest quarter. All of that is pretty good news. Netflix really knows this, they actually know how much fresh content seems to keep getting and keep subscribers coming. I would imagine they do it because they feel it is effective as opposed to guessing about it netflix shares up 4. 5 . Losing some sharp gains we got up 10 moments ago we have more earnings to tell you about right now. Texas instruments out. We have dom chu tracking the numbers. A stock is up over a percent now, 210,000 shares of after market volume, this after the semiconductormaker comes out with earnings okay, here is the interesting part, the earnings come in at. 24 per share. Not necessarily comparable to analyst estimates. Well look at that closer. The revenues did come in better than expectations. 3. 3 billion versus estimates for 3. 2 billion also they do see now this is the interesting part, covid19 related. What theyre looking at now is this move here that they have expanded their guidance rather than pulling guidance for the Second Quarter theyre widening up expectations for earningsper share of a range of 64 to 1. 04 also revenues go out from a range of 2. 6 billion to 3. 2 billion. Instead of pulling their guidance, they have just widened it out very, very much so. Some more comments from the company with regard to what is happening. They do see it as an impact covid19, theyre asking investors to scrutinize that more and could have an effect on the ongoing quarter. Well continue to watch this for right now, Texas Instruments up 2 to 3 after market at the highs, now up 1 well continue to monitor. Dom chu, thank you very much. Well discuss that one in a moment they keep rolling out earnings numbers. Chipotle, kate rogers. Chipotle eps a beat here at 3. 08 adjusted that compares to 2. 90 estimated. Revenue basically right in line here, 1. 41 billion, compares to 1. 42 billion estimated. Comps up 3. 3 in the quarter digital big number we told you it would be likely a high one here, up 81 , making up 26 of sales. The ceo says investing in digital has allowed us to quickly pivot our business with q1 Digital Sales reaching the highest ever quarterly level of 372 million the company has withdrawn its full year guidance due to the uncertainty around covid19. With regard to its financial position, the company says it has over 900 million in cash. They say as a result of the efforts and oursolid Balance Sheet as well as the added liquidity from the c. A. R. E. S. Act tax deferrells we believe we have enough cash to sustain us for well over a year 100 restaurants temporarily closed as a result of corid vi9 the stock is higher by nearly 5 right now. We should add chipotle ceo brian nichol will join us tomorrow on the exchange and well hear much more about this quarter. Back to you. Looking forward to it, kate thank you very much. We have to get to snap results which are also out Julia Boorstin tracking that name julia . You see snap shares trading higher in after hours. That was up 10 . This is after the Company Reported revenue in daily active user growth that exceeded expectations revenue at 462 million, beating projections of 431 million, up from 320 million in the year ago quarter. The company saying it experienced high growth rates in first two months of the quarter, which offset lower growth in march. Eps 8 cent per share loss, one cent worse than expected still better than the year ago numbers. Daily active users coming in stronger than expected 229 million. Thats about 5 million better than what was projected. And the addition of 11 million in that First Quarter. Average revenue per user up 20 year over year to 2. 02 per user the company says it isnt providing guidance, but if you look at the prepared remarks, they give us a hint of how things are going in the Second Quarter so far they say that Second Quarter Revenue Growth through april 19th is up 15 theyre assuming the addition of about 10 million daily users in the quarter. Back over to you Julia Boorstin, thank you. Ed lee, snap is also a beneficiary of the stuck at home economy. Right i mean, i think i people are stuck at home, want to connect with friends and family. Snapchat with other social platforms, theyll benefit from that im not surprised. Im stunned by the revenue beat. And thats very positive sign. Advertising has been cut everywhere well see that at google and facebook the difference with snapchat, though, is that they rely less on that sort of long tail mom and pop Small Business advertisers the way that facebook and google do they still get those big sponsorship deals and big branding deals and lock in place for longer theyre benefitting from that along with the rise in audience. Of course, once they start to ramp up their programmatic ad machine, then they tap more into the long tail mom and pop advertiser and had they done that sooner, you might have seen a more difficult revenue period for them i think this is a testament to their sort of slow move into programmatic at least it helped them in the Current Quarter or the past quarter. That takes snap into flat for the year type territory. Chipotle gains around 4 , 5 , takes them flat for the year netflix already up 34 for the year and is adding to that i thought this quarter we were seeing earnings dont matter i get that these are three companies were talking about that have some beneficiaries to the stay at home factors they all we kept guidance, didnt we, with netflix. Chipotle is removing guidance Going Forward. I think they dont matter as much in aggregate if that makes any sense. In terms of what s p earnings will be this quarter, anybodys guess. Individual situations, especially three companies that are riding longer term secular trends that seem to be to their benefit, i do think you get a reflex reaction. Snap, a lot of concern growing about general advertising volumes going out the next few quarters they probably did get perhaps a little bit punished by that leading into this number and a little bit of a relief on that front. The average revenue per user there. I would say that the thread on all three of these names are benefitting from the shift toward digital behavior for snap, for netflix, but the chipotle Digital Sales growth, accounting for 26 of their business, is an impressive number for a restaurant. Absolutely. So snap as we have discussed whether they would be benefiting on top of the fact that within these online players, question marks over the likes of facebook and google because of falling advertising revenue, but that revenue line was a beat there for them as well very interesting reports coming across throughout all of those thank you very much to ed lee and Nancy Tengler for joining us fascinating discussion there i thought the market closing down 3 would be the big story but no thank you for joining us. After hour earnings are back. Plenty of excitement ed, thank you. Sure. And dont miss snaps ceo, exclusive interview with evan spiegel tomorrow, cnbc, with Julia Boorstin 11 00 a. M up next, much more reaction to netflixs results well ask former nbc entertainment cochairman Ben Silverman whether the streaming surge could be at risk once the coronavirus quarantine ends. Closing bell back in 90 seconds. A lot of after hour movers welcome back it has been an eventful few minutes here in terms of after Hours Earnings. Some of the winners for the year adding to their gains. Like netflix, which recorded more subscribers than was expected chipotle almost flat now on the year after saying it had better sales and, of course, better Digital Sales as well. Snapchat with better Sales Numbers and better revenue metrics as well as an ad for daily active users as people are stuck at home and trying to connect digitally. Joining us here to talk through some of the numbers, Interactive Brokers chairman and founder, Thomas Peterffy. Tell us what you saw in the quarter in terms of trading activity. Trading activity was definitely up much, much higher than it has been in the Fourth Quarter. Our Trading Volume was about three times that of last quarter, previous quarters volume and account openings are roughly four times as high as in the Fourth Quarter so being stay at home stock, we certainly benefited from these unfortunate circumstances. Market vs have functioned ovr the course of last few months, thomas, how bad did it get in the middle of march and how much of various Government Programs helped in functioning since then so, you know, volatility is always proportional to the amount of uncertainty that the investors perceive and obviously there is a great deal of uncertainty and triggered huge rises in volatility i think markets functioned relatively well, liquidity was not as good as it could have been, but, you know, that happens at times when volatility is very high so i think all and all we can be proud of the way they run. Lets talk about your retail clients long energy, whether they own futures or etfs, how much pain is there out there given the extraordinary moves we have seen in the price of oil . So unfortunately as we announced just about half an hour ago, last night several of our clients have suffered very large losses because they were long certain cash settled futures. Whose price is derived from the deliverable wti future and so suddenly negative prices, prices going to minus 37 within very few minutes, they were unable to do anything about that and the settlement price turned out to be negative 37 a barrel. So this is this is a very new experience for us and our customers and it is very unfortunate. And we just have to cope with it somehow. Thomas, im looking for your statement that addresses that in particular and i believe what it is saying is that some customers were taken into negative territory for their accounts, which is not typical, of course, for retail clients who dont often have margin positions or lending. So who is on the hook for that if these contracts which they didnt fully understand put them into the negative, do you have to cough up the losss . Absolutely. So being a broker is not always very good. Because, you know, when something good happens, it is the customer gets the benefit. If something bad happens, it is usually the broker who has to cough up the money. And so who do you think when you look across the industry, do you think there is going to be some really serious pain from this to be felt by some . Have you been speaking with some of your peers or do you hear stories that brokers will take huge losses from this . Well, we carry about 15 of the open interest in the constructs so our customers have lost about 88 million. So there is another half a billion dollars to or losses that somebody sitting on or other folks are sitting on and, of course, there are offsetting 600 million of gains. And i do not know who those folks are. Do you think there is a misunderstanding about what folks are buying when they buy into these oil etfs or futures contracts . Do you think something needs to change with the communication or the structure around it so that Retail Investors dont have to get slammed when Something Like this happens first of all, our customers are financially tend to be financially sophisticated folks. So there are very few Retail Investors that trade commodity futures. And especially few investors that traded in large amounts i think i think that negative prices are something very, very new to the entire industry and we just have to learn how to cope with them there are a number of instruments out there today that contain oil futures. So luckily enough the oil futures bounce back this morning and now they are in positive territory, but they were going to go to negative again, it would cause a lot of pain for many, many players Thomas Peterffy, thank you for joining us, fresh off the numbers. Thank you very much floating somewhere in his room there it looks like. But great interview. We appreciate the access shares of netflix surging afterer earnings. Still up 30 plus also year to date in down market. For more on the numbers and what they say about the broader streaming landscape, lets bring in Ben Silverman, chairman and coceo of propagate content. Ben, good afternoon to you thank you for joining us. Of course thank you. Clearly these netflix numbers people were looking for 8 million net odds in the quarter. They blew past that. How impressive is that or should we be expecting it given all of the stay at home aspeck aspects of recent weeks and months. I can speak to my own familys habits and we have been glued to our screens more than ever in our absolutely watching netflix and disney plus and amazon prime we are working across the spectrum of streaming players. And looking for more and more content to feed our family i was going to ask you if you thought this was a netflix phenomenon or universally benefiting all of the streamers out there, quibby had a launch and you mentioned disney plus. There are so many out there. Is it lifting all boats . You know, i think it is i can say specifically as it relates to, you know, disney, part of what has been incredible for us is discovering the movies that my wife and i grew up watching we have been consuming the parent trap and freaky friday and all of those original Disney Library classics and i think the one other piece were seeing in our research is we just look as program makers, there is a ton of Library Content that is driving a lot of peoples viewing right now as are some genre trends like comedy and escapism, which i guess you could qualify the tiger king as a comedy. You were talking about some of these new shows if things continue for longer, this shutdown continues for longer than we all hope and expect, will these streaming platforms run out of new releases how is your industry coping in terms of actually producing new content that was due to be in production right now we announced a piece of content that were doing with former office show grounded in our new work life environment where youre now seeing me in my home office and notat my work office called remote were challenging ourselves to be more and more creative and think about ways we can produce in a phase one, phase two or phase three of returning to production and there is a command in demand for a lot of content and were turning on all of our Creative Energy to work within the confines of what we can produce and do and i think it is amazing to see the broadcasters all work on these big events, mostly music driven, and the ratings are through the roof and theyre pretty low tech. I think the audience is getting more and more comfortable just wanting fresh content as well. And the reruns will dry up at a certain point, so there is going to be a return to production it may not be as it used to be, but it is going to happen i think sooner than we thought because people are dliing ingd much. We hear netflix, netflix, netflix and other streamers out there. What about the traditional broadcasters, the cable tv packages the fact that live sports isnt on now, where that is such the bulk of the payment, the cost for cable tv, how do you think thats going to fare as we go into this deepening economic slump . Well, the longer that we dont have sports, the more accelerating the cord cutting will be. I think the sports was what was having people hold on to their traditional packages and without it, theyre discovering a lot of entertainment choices in streaming and at lower costs it is going to be tricky because on the other side, youre also seeing the broadcasters are having giant ratings, doing as well as they have ever done, but theyre so advertising dependent and thats the big variable about their longterm health but i worry most about cable and the cable channels in this environment where streaming is accelerating, adoption of streaming is accelerating, cord cutting would be accelerating and broadcasters you can get with your antenna and access their content and it will be interesting to see as well all the cultural creation coming from thestreamers where do the advertisers fit into those worlds disney doesnt take advertising. Netflix doesnt take advertising. Youre going to see advertisers when they bounce back, how do they get in the culture conversation again. Ben, when can we see the new i guess not a sequel to the office, the new show on stay at homework well, you know, were going in our process right now and im hoping that somebody, you know, has the guts to accelerate it. I think the people who make bets on content for right now are going to do really well because it is not clear had this ends. Georgia is opening up a huge Production Center for us, but are our talent and our crews going to go back to work right away are they going to want to go back to work are we going to be taking their temperatures are we going to be separating them are unions going to let us take their temperatures there are so many challenges to near term production and creative entrepreneurs have an opportunity here and the direct to consumer element of our Talent Management business is exploding. Theyre communicating all the time with their fans it is really interesting a lot is going to transform in our industry and youre seeing winners start to expand their lead Ben Silverman, always good to talk to you. Thank you for joining us thank you so much chipotlesearningsstarted well break down the Key Headlines in it and results with an analyst who has a price trget about a thousand dollars onhat particular stock were back in a couple of minutes. 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. Lets check in on after Hours Earnings movers. Netflix crushing subscriber estimates, adding 16 million new customers. The stock is trading well off its highs after hours. Up as much as 10 . Lost most of that. Chipotle beating on earnings, narrowly missing on the topline, impressive digital ordering numbers. Texas instruments beating on revenue and giving a wide Guidance Range for the Second Quarter. And snap, jumping, after beating daily active user estimates and revenues for the First Quarter looks like everything has turned lower after we saw an initial pop for a lot of the names after hours. Yeah. I guess some of those were strong performers, ones that stands out of a major turn around was snap, which was up 10 , 11 , down 3 . Chipotle holding on to after hours gains there. Joining us on the earnings, peter saleh, mike santoli still with us. What stands out for you with these numbers . Guidance has been withdrawn, but i guess the theme from what were seeing is strong here for chipotle relative to expectation. Yeah. Thanks for having me on. Look, i think what stands out here and why you see this stock rallying in the after hours is the fact that the Sales Numbers really troughed at the end of march, down 35 . Pretty Staggering Number but have since improved over the past three weeks down in the high teens if we believe that there is an improving trend essentially every week so i think thats driving this, youre seeing the trends really start to improve week over week. And were not only seeing this at chipotle but really across many of the restaurants we cover. They also gave an update on cash position and their Balance Sheet. How does that look relative to the other instruments which are also seeing, you know, virtually no traffic with restaurants shut down across the country. It is a good question they got over 900 million of cash on the Balance Sheet. And if you recall, you know, chipotle went through a similar situation like this back in 2016 where they had, you know, many quarters, i think five consecutive quarters where they had pretty negative same store sales. And yet they were able to manage and drive positive free cash flow, so i think theyre in a better financial situation today and i think they know how to manage through this. I suspect that chipotle wont be burning through cash as were hearing from some of the other Restaurant Operators who are essentially talking about how much cash theyre burning every week because their sales are down 40 , 50 , 60 chipotle is not in that bucket. Where are we with new store openings and do you want them to plow ahead with what they planned there or scale that back dramatically my guess is for the time being theyll probably pull back, maybe a little bit but as we get a little more clarity around the same store Sales Growth Rate Going Forward, i think they should just come back to the Unit Development pipeline that they have because the returns are still exceptionally well north of 50 cash on cash returns so i feel like if they if theyre not going to burn through cash and drive positive free cash flow, there is really no reason for them to pause or stop their development the question, mike santoli, is whether it has all been factored in. Chipotle has never achieved stock if you look at price to earnings it has a strong bounce off the march lows very strong not all that far off the highs it maintained a very much a premium valuation. I do think it reflects what is going on a bunch of different sectors. The bigger Branded Companies with the Balance Sheets, the ability to weather things are getting the benefit of that in their share prices i think the question is down the road are there going to be any hiccups as people go back to work, is there going to be some kind of a front loading of demand, what is going to happen to food costs as we worry about a little bit of sourcing across the food industry. So those are the i guess the side questions, but the overall story has been very much consistent when it comes to investors for a while. Trading up 3. 5 after hours thank you. Sorry, were out of time still ahead on the show, much more on todays busy after Hours Earnings session well ask an analyst who covers snap about whether invests are should be concerned about ad demand with so Many Companies customeri i cutting back on costs. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need starting at just 12 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. Its the most reliable wireless network. And it could save you hundreds. Xfinity mobile. Welcome back breaking news on uber and lyft deirdre bosa has the story for us lyft this afternoon announcing the First Quarters Earnings Release and withdrawing full year of guidance. This comes less than a week after uber withdrew its full year of guidance and said it would mark down some investments. This comes as ride sharing bookings continue to plummet Third Party Data from second measure which analyzes purchases, credit card transacts, showing that uber rides down 85 lyft rides down 89 for the week of march 30th. Clearly these guys are feeling some pain in their earnings this recent quarter should be interesting. I forget when it was, two or three weeks ago, four weeks ago, we saw an update from lyft that suggested they hadnt seen a Material Impact on their bookings and the share prices jumped on that news. March 4th, im told by my producer this suggests otherwise. A little bit of a surprise given that bounce of three or four weeks ago, theyre not trading down on this news. So i think youre referring to ubers update analyst call, he tried to get on the call and assure investors, they would have 4 billion in cash. So while the most recent numbers look even worse than that worst Case Scenario of 80 , 85 in one week, i think analysts at least have an understanding that uber and lyft have cash on their Balance Sheets, thanks to their ipos last year which didnt go well but gave them a little bit of a cushion this has been coming and he did mention they are seeing rides down some 70 in some cases in markets like seattle but im not sure if they prepared for this long amount of pain, the real question is how long does this go on for, are they able to make this up in the rest of the year in different markets around the world as they seem to recover but perhaps see second waves a lot of question marks and well get more indication when they report. Yeah, nobody knows the answers to those questions. Snap is up sharply after hours, out with the First Quarter earnings for 2020. It was a surprise beat on users and revenue. Joining us is brent phil, managing director at jeffries. Use irs we expected to be stron, up to 29 million, i think fifth quarter of gains that revenue number, brent, i thought everybody was so worried about Digital Advertising. What happened . Yeah, we thought it would be a lot worse. It is way better than anything we would expect. We think ultimately it comes down to engagement is super high we have a household of two teenagers and theyre spending a lot of time on snap now. Engagement is up even going into this we believe snap was doing the right things around growing the average revenue per user, that was up nicely in the quarter as well. All the metrics from users to revenue, to operating cash flow, all looked really good again, the expectations are for Digital Advertising to just fall off the cliff. Were not seeing that. I think it is because were all bound together by the internet, by the apps and thats whats actually keeping their younger audience sane right now is staying on the apps. Big move after hours. How does the valuation stack up. This takes it almost flat foot for the year yeah, you know, stock got hit below 10. We believe in a midteen price target with these new results. I think there is more encouragement this stock can trend to 20 so, yeah, clearly a nice bounce back and we do not believe were out of the woods, probably going to get worse in the second and Third Quarter. We still expect some darker days ahead for advertising and youre seeing that in the updates numbers they gave, 44 growth in the First Quarter, 15 growth through april. Were seeing that decline hit. We still think there is a lot of value as a platform and like the story for longterm investors. Mike, james quincey, ceo of cocacola told me today that theyre suspending their Advertising Campaigns as long as these economies remain shut down and then theyll start to slowly deploy more money into that like theyre doing in china now cocacola is a huge advertiser have some of the stocks, the snaps, facebooks, googles, already reflected that in the price . I think to a large degree you have it say yes. Some of first things to fall away were travel related and restaurant related and that kind of going out transactional stuff. I think also youre working against the fact that that entire channel Digital Advertising is gaining market share. It is not necessarily a one for one when an advertising dollar accident get spent today it all comes out of their books i dont know how the balance is going to shake out it makes sense if youre a big brand advertiser like coke to wait and see where you can kind ofpreserve your info for later in the year. Quick reaction on uber and lyft, you can pass if you need to, we threw that number at you we reported. Were you surprised by that negative announcement in terms of not announcement report from a reporter that 85 down in bookings no surprise i mean, next to travel which was the first in, last ones out of this, ride hair share is right e no one wants to get in a car with someone else right now. Thh what uber and lyft is doing. We think commerce and amazon, etsj and chewy are the most exciting stories and its for the stay at home and work from home trend brent thill, thank you. Thank you. With snap shares surging. We have breaking news on united moving after hours phil lebeau with details sara, we have a secondary offering that united is announcing and were listening to some explanation from united executives exactly what this offering is going to be about. Theres a range in terms of where the prices will be for the offering here and the reason the stock is trading lower is the size of this uniteds secondary offering, 39. 25 million shares we think theyll be priced somewhere between 25 and 27 a share. Comes out to roughly speaking between 11 and 12 billion. This is an indication of united trying to shore up the Balance Sheet for what will be a brutal summer with demand remaining low and most people saying, look, Third Quarter and Fourth Quarter, dont expect a whole lot of improvement in terms of air travel and united again with a secondary offering of more than 39 million shares back to you. Thats ten or 11 billion. The market cap right now is 7 billion. Thats the number, depending on were waiting to see the exact range here and depending what we priced shes shares at we were told that its likely in this range of 25 to 27 a share and im not sure if its the actual price and if its in the range of 10 to 11 million, somewhere in there and were on a call with united and well get on the exact pricing range shortly. Phil, thank you very much for that what did google, rihanna have in common . Well have the details when we come back. See, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. To all those on the front lines caring for our sick. Stocking our shelves. Bringing us packages. Delivering our food. Those who are there when we need them. And the millions of americans doing their part, just by staying home. Our communities are beyond grateful. At citi, we are too. Even if were apart, well get through this together. [female vo] restaurants are facing a crisis. And theyre counting on your takeout and delivery orders to make it through. Grubhub. Together we can help save the restaurants we love. Time for our good news rundown highlighting amid the pain of the coronavirus. A coalition to support u. S. Small businesses the likes of google, ariana grande, rihanna and andrew yang, many other companies and celebrities have joined forces for project 100. An initiative aiming to provide 1,000 Digital Payments to hundreds of thousand of families that have been impacted during the pandemic mcdonalds celebrating workers and First Responders with free thank you meals april 22nd to may 5th. Via coms International Studios is working on balcony stories in a way to celebrate the ways people have been reacting to the coronavirus pandemic up next, were looking ahead, a slew of earning calls just getting under way what every investor needs to be listening for when we come right back 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. Lets get back to phil lebeau and more on the breaking news on united. Lets clarify the amount of money that americans will be raising. We were off by a factor of ten its a little over 1 billion and it is between 1 and 1. 3 billion depending on the factor on the green chute with the deal as well the secondary offering with a little over 39 million shares raising just over a billion dollars for United Airlines still, a major offering and gives them the liquidity they need guys, back to you. All right thanks for the correction, phil. Lets check in on how we finished the day on wall street. Decline across the board the s p closed down 3 all sectors got hit. Interestingly, energy got held up the best and a huge plummet in prices again, this one not for the may contract, but the next one, the Technology Got hit hard and thats why the nasdaq was down 3. 5 more than the others and a look at afterhours movers here. Its earnings season and we had a lot of big ones and many of them very positive snaps up 18. 5 and a big beat in users and revenue netflix, subscriber growths blew away expectations and Texas Instruments up 1. 5 and jim cramer calling it conservative and chipotle up 5. 2 after having positive samestore sales growth thanks in part to strong digital growth mike santoli, what are we listening for on the calls as we look toward tomorrow. In terms of the names that have broader implications for their sector is probably Texas Instruments to see if they can e l lab rate more on the pace of the products and the longer term cash flow whether positive or negative and cash burn. Well have to see if oil can have a karma day in the next couple of days we are out of time on closing bell. Thanks for watching. Melissa lee has you covered next. Im melissa lee, your traders for the next hour is guy adami, tim seymour, Karen Finerman and dan nathan bigcap tech stocks falling hard todays selloff well find out what fueled the tech wreck and plus more on the historic collapse. Mike novogratz and later, beyond in incredible. What sent shares of beyond meat soaring today. We kick things off with a flood of earnings hitting the streets. Netflix, chipotle, snap, texas instnt