Transcripts For CNBC Squawk Box 20240713

Joe, the big story is oil prices once again im ready to move out past june move out where . June is too close if we are not going to open anything up, no reason to think it will be anything different than minus 38 a barrel it is related to the price of gold and the price of a suit, so i should have been buying andrew, you are spending 10 times what you are on a suit with those hugo boss things. Which none of them have belt loops for 4,000, you could get a couple of belt loops no hugo boss. It is ralph. Ralph who oil prices, it is not funny. This is out of the realm of anything weve ever seen brent crude only a 20year low you look at wti or what may was before the contract rolls. It is incredible supply shortage spiked overseas. The u. S. Movement, wtis june contract the price giving up earlier gains. Up 11 see, im ready to move to september. August at some point what does this mean for the saudis youve had your picture taken there on a sand dune youve got a feel. They should have done more than nine and change, all of them together joe, not necessarily. Sorry there was that take yesterday, remember, in some ways i thought this would be horrible for the saudis and everybody else he painted this as the final death nil of being producers that have done this for so cheap. In the permian basis, those would be the real ones punished in this. This could be Higher Oil Prices and eventually more that we would owe opec you could no longer turn things back off and on. If they were able to put more pressure on u. S. Producers and those go away, maybe long term this is good for them. You love talking junk and bankruptcies the fed is helping a lot of our producers, right as long as the Federal Reserve is buying more debt, this can go on longer. In response to the comment, that is still a shortterm duration issue. Johns stlu we go on a couple of months and then we are back you have tremendous damage to saudi and russia this becomes a whole geopolitical crisis. I do think there are people talking and thinking about the implications to that not just in the oil patch holding out to do this for four weeks, six weeks to eight weeks. Talking about problems beyond that that is beyond what anybody can foretell it iswednesday. I saw kemp on a competing network. I dont know i find myself nodding and then i find myself saying, a tattoo you saw dr. Burkes yesterday. I did then i think south dakota and people being totally shut down, so i dont know. I was listening to jim yesterday. Jim is as cautious as anyone just when you think about having no money, and having kids. I dont know really between a rock and a hard place. Andrew, you got this update. This is the between the rock and a hard place segment bringing you the pandemic numbers. Total cases in the u. S. Have reached 825,000, the death toll now passing 45,000 new york state has 258,000 cases and 19,000 deaths. Lets flip the story around. We have some positive news after speaking to governor cuomo, President Trump announced the usns comfort will be leaving new york to prepare for the next mission. President cuomo and President Trump agreeing to Work Together to double the rate of new yorks testing to 40,000 a day. Also good news given the conversation we were having before, clearly not enough also some new hope for struggling companies out there the senate yesterday passed a 484 billion package to help hospitals and businesses ravaged by the pandemic. The vote unanimous the house is expected to pass that bill by thursday. Putting another 310 billion to Paycheck Protection Program. And includes 60 billion for small lenders, 75 billion for hospital relief. Another 25 billion for testing. Joe . Definitely official at this point. People are sitting around eating Peanut Butter and jelly or ordering from chipolte mobil and watching Netflix Netflix got 16 million new subscribers. Shares did move around 16 million is double what people were expecting at home because of the pandemic. No sports. Not like you are watching Something Else you are driven to watch crap like this. If you want to watch tiger king. I watched an episode i was like, i dontknow. I didnt know people had cats like that. It is the greatest engrossing piece of trash youve ever watched. Okay. All right. You call it had a piece of trash. It is bizarre. It is engrossing trash is what it is it is a backhanded compliment i watched all of it. We could be watching universe or cosmos. Ive been trying to get my children to do that unsuccessfully pbs has put out ken burns a lot of his documentaries for free as part of the teaching thing. I know jazz is in it, baseball, americas greatest treasures and National Parks is in it. There are at least 10. You can see that for freon pbs there is a new season of fowda. I dont let myself binge too far because there are only four left this is part of the netflix story. All of the studios have shut down production. There are some new shows coming on line now, call me in six months or six months, that is when it will become more complicated because there is not going to me a lot of new shows netflix is going to be in a good position because they order entire series in advance that have to be completed for the others, it will be really difficult there is no betting i went on draft kings. I looked at russian table tennis i cant say these guys names. I have no idea it is okay. Miracle. Cant say their names either remember miracle. I was going to say more about netflixs. More than double, i said that already. I now do this. I have the script here having worked at home, i dont need the tell e prompter anymore they say this probably cant continue well talk to rich greenfield who knows about this stuff increases the cord cutting, the move to cutting cords with no sports and nothing else. Maybe i will say the thing ive been excited about. Because there is knots going to be new content coming out. Have you seen the commercials for peacock. There is a lot of old stuff out there. I want to go back and watch breaking bad again all of these services will bring those to you i saw seinfeld. A clip of 10 Different Things where the guy walks out of the stall in the bathroom and doesnt wash his hands and then hes kneading the pizza dough and george double dips all of these things gone cant do it in the covid era. You cant we have a lot more coming up including our favorite shows favorite well also talk about new tests to hit the market. This is Important News we have a warning from the fda dr. Scott gottlieb will be with us expecting results from the media giant at t well bring you the numbers when we get them. Squawk returns with more after this short break flexshares may look simple on the outside. But inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. 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. For a prospectus containing this information. Swithout even on yoleaving 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. Quest diagnostics will begin conducting nearly 17,000 Antibody Tests per day and hope to double that next month. A rival labcorp with Sample Collection the ceo of labcorporate will join us this morning former fda commissioner dr. Scott gottlieb starting with the testing issue and what we should know about it and how to think about it. The tests that look for an e antibodies that can tell whether you have some level of immunity. They stopped short of saying that they are unreliable i think thats a fair statement. Most of these tests have not been reviewed by the fda and will give unreliable results and give a lot of false negatives. They are good for population level studies and good maybe in concern professions where there is a high exposure for the general population, an Antibody Test may not be that helpful. Im going to go rapid fire on you. First is singapore you are seeing numbers spike there yet it is 90 degrees there. You have talked about the heat of the assumer there there, it is seeming to be Something Else it is concerning. Singapore had a fast wave. They have very good controls in place. It should be a concern to every country around the world we dont know if there is a seasonal component to this virus. That doesnt mean it will transfer it will still be contagious in warm months. The hot weather should provide some sort of backstop. Showing people in china, following a large cohort of people and outbreaks where three or more people and found no one had been infected from being outdoors it was an indoor infections. A number of smaller studies have shown even people with mild cases of corona are having what they are describing potentially longlasting lung problems when i read that, that was truly alarming we talk about trying to get herd immunity or young people catching it. How concerned are you about longterm damage i never thought letting a group of people getting this as a good thing even in young people what we are seeing is people with very mild symptoms who dont appear to have difficulty breathing when you do a ct scan, they are showing lung damage going on even if they are not showing outward signs of severe infection. A lot we are learning people are getting infections in their lungs as a result. Doctor, i think our connection might be getting lost a little bit ill ask a different question. Your response there is some what alarming as we all get back to work and business, people will put themselves to some degree at risk, even if you are a younger cohort, that could be a problem. We are also watching numbers spike in japan a place that seemingly kept in under control. A culture that wears masks there was a view that they were able to prevent widespread because of the masks what should we think of that i dont think japan has ever cleared. What we are seeing now is the second wave of infections. Probably the second outbreak we were never able to fully get it involved. That culture was in place more there. More around the diseases, they did have experience with sars. They do wear masks japan, hong kong has cases, singapore are having this explosion in cases after seeming to deal with the first wave of infections this is another indication this is going to be persistent. This isnt going to come and go. Well have to deal with this in the fall the cdc will come out and talk about how difficult this will be with the flu season. One thing people should think about in the fall is getting a flu vaccine. That is important so we can differentiate between the flu and coronavirus. The number of asymptomatic cases, is it 30 or 40 , do you think . Yes there is a number of studies between 25 to 30 you are breaking up but if you dont have the lung infection that people that are not asymptomatic yet if your immune system doesnt react. It is a nasty virus killing tens of thousands of people but if you get a moderate to minor case, you dont have lung damage what percentage are you talking about . Is every person that gets this, do they need to worry that theyll have lung damage the rest of their lives . There is a big difference between doing that and the vast majority of people who dont get it what kind of percentage are you talking about we lost him we dont know the percentage of data we are looking at showed people who were experiencing infiltrates. We dont know the number yet but asymptomatic people that dont get a case of the virus dont have lung damage, do they . Going forward with mild cases okay. We cant get a lot we are going to say thank you to dr. Gottlieb and work on that. What is that skype i thought he was using a pad caster sometimes it is issues with wifi, the broadband it happens brave new world. When we come back, a travel Company Turning to markets, the private sector for cash. More on expedia. Before we head to break, lets look at some images yesterday from the Global Pandemic welcome back expedia is nearing a deal to sell a take for nearly 1 billion to apollo group and silverlake i have expedia which has no revenue. We spend 5 billion a year in advertising. We wont spend 1 billion in advertising probably this year sources say apollo and silverlake will receive receipt. There were challenges before covid began and now leading them to a place where they are looking to raise some money. On the other side, you have people like apollo and silverlake, i dont want to call them bottom feeders but boy are they looking for deals now and this may be one of them. Before all of this happened and then youve got branson. All travel and tourism, right . By the way, says he doesnt have as much money as everybody thinks because all of his money is tied up in these companies. Hes rethinking that. Hes going to pledge his private island exactly that footprint will get bigger andrew, i was going to ask you with diller and skpeed yexp. I think it was the coo and ceo that both left because of difference of upon do you know what that was about in terms of how the place is run . Barry made some provocative comments that we didnt get to talk enough about about the company and the way it was being operated just a couple of months ago prior to covid. Effectively this was not a company he felt was firing on all sicylinders. Then there is google there is a different approach barry may have had a view on that differed from others. There may have been other things in the debate. If thats the case, it will be even more important to have a good operator, tight operator. Coming up, well talk about all the more subscribers and stuff streaming into their house. A look at yesterdays s p 500 winners and losers winners and losers pas to putting your true colors on display. Say yes to allegrad. Good morning welcome back to squawk box here live, joe is, from the Market Square becky and i are remote looking at the futures dow opening up about 300 points. Crude has been the story of the week wti crude now, 11. 57 a barrel meantime, lets talk facebook. Paying 5. 7 billion for a stake of just under 10 in indian tele commuter operator. Jio, in a market where investors have been hostility. Up ended the industry in india by adding cutrate pricing owned by reliance and that stock is up overnight as a result. Joe . Thanks. Netflix showing impact of the virus. Netflix added almost 16 million paid subscribers almost double than expected. Bringing in rich greenfield. Hes taking another break from fortnite can you just pause the game is any of this just frontend loaded will they add viewer in subsequent quarter because anybody wants it we got to get you to start streaming Stranger Things. Thats my background i watched the first season. That one kid bothered me a couple of them did get on my nerves the thing to think about for netflix is that they are being conservative about what happens the rest of the year wechlt dont know wh when shelter in place will end they were pretty open and transparent that they have no idea in terms of subscribers they are taking their best shot for q2 the thing that really resonated for me, they gave a stat last night nobody was expecting their entire shows, movies, tv shows, everything through early 2021 has already been shot it is in post production being done virtually or remote netflix will have fresh content through 2021 there is no media company, nobody has the amount of content stockpiled the way they do that will give them a unique advantage. They tried reign in expectations the reality is if you have a company putting out appreciate content the rest of the year space force, the crown in q4 they have a ton of content coming when i literally do not think there will be a fall tv season on tv because none of the seasons have been shot youll have a steady cade ance f fresh content on netflix can they do some kind of poll pricing. They should double what it costs for the next six months. They were asked about pricing. They made it very clear. The world is hurting, the country is hurting they offer the lowest everyone here is paying for espn and there is no sports on. In new york city, anyone paying for cable is probably paying 30 to 40 a month for sports and there is no sports on the network at 14 a month and every few days, there is no content. I think theyll use that to their advantage rather than pushing price during the pandemic it is fresh content others with content youve seen but not useless. Disney plus is a Great Service but there is nothing new. Its kids rewatching frozen and frozen 2. It is a great babysitter during the pandemic this is really changing how you think about streaming. It is going to be a big advantage. Remember, there is no movies coming out i dont think we have any idea when people watching this program will go to large movies. You saw what universal did with trolls. It worked exceptionally well Warner Brothers are going to try scoobydoo direct to consumers. We have to get gottlieb one of the gamer head sets this is the best audio what is your back drop . The back drop is Stranger Things season 2. Thats different. Im trying the book shelf with legos. The green strecreen. The jabra head set how many strange things can happen in that place seer yougsly they are cursed. It is indiana actually what i was trying to figure out when he moved, i saw the kids. I thought you wanted in thats it im going with the rich, can i jump in do you want to talk snapchat. I dont want to talk sn snapchat, of these streaming services are you of the view three or four months from now when it is harder to emerge with new content that people start to cut at that point . Will people say, im going to go off disney plus or hulu and pick it up in a few months when fresh content emerges. Disney plus is cheap enough at 6. 99, it is good value as sort of a babysitter it is hard to imagine any pricing power. A lot of subscribers are not paid verizon free offer, hot star, free offer do hbo max then show time, hulu . Im going to take an alternative view on hbo max. There wont be fresh hbo content but you are going to add a very fast content all of the people who have hbo, if you shift to hbo max, you can watch all of friends, all of big bang, west wing, south park, rick and morty it is a really strong strategy who better to go try to transform hbo. You think about what netflix is doing. Theyve got animated to love is blind to tiger king. To find something for everyone and really lean in to the library side of the service. All right, rich thinking about all these things. Still thinking about how many seasons you can do Stranger Things. The second it had all those kids grown up. They could be adults running into strange things. I hope it doesnt go too far. One thing we are learning is that it is hard to keep series going too long they let house of cards go way too long i think shorter series are better the quality of the writing is better thats not true with squawk box. 25 years in october, rich. You make some exceptions there is exceptions to every rule, are they not youve got very good writers. Thank you, rich get back to your whatever it is you do have fun tmi, actually. Andrew okay. When we come back, a lot more on squawk box. Impressive numbers from chipolte even as other restaurants struggle with the lockdown take a look at shares of snap. Shares skyrocketing after the Company Reported strong First Quarter revenue and 20 rise in users. A loss a penny worse than analysts expected. Saying that the platform helps people build and maintain friendships during this time at home watch any time on the bccn app we are back right after this i came across sofi and it was the best decision of my life. I feel cared about as a member. Were getting a super competitive Interest Rate on our money. Were able to invest through the same exact platform. I really liked that they didnt have any hidden or extra fees. Sofi has brought me peace of mind. Truly thank you for helping me prepare for whatever the future has in store. Ever somethings gone mogotten into the office. M, i hear you. Feels like theres no barriers between departments now. Servicenow. The smarter way to workflow. The best Entertainment Experience. S xfinity x1. Welcome back, equity futures this hour have mod rated their gains. In the mid200 plus now. 260 points, nasdaq up about 130 and s p up about 35. Chipolte, we talked about this earlier. People staying home watching netflix, eating Peanut Butter and jelly. I said that because of the smucker news yesterday and chipolte a beat for the quarter up 81 for the quarter that helped chipolte post samestore sales growth even as covid19 has caused them to halt dinein. Ive done this a few times believe me, full hazmat gear when i go. I have this beside me at all times. I like the original scent. The lysol. Guys at work making lysol now. They are going in with a mission now helping all of us. It is interesting. Chipolte you havent ventured at all from casa quick i went to the post office you mentioned the shower curtain. Chipolte is good the chips are good and so is the dont cook myself these days but you know me. Hopefully youre a good cook. Macaroni and cheese. Craft macaroni and cheese again. No, no. Im cooking good stuff im testing my skills. Guys, when we come back the impact of the crude collapse on the economy. Crude prices this morning are continuing to show some pressure were talking about the june contract not the macon tract that went into negative territory but the june contract isnt faring any better. This was the scene yesterday when nyu hospital, 750th patient was discharged after rovinecerg. Theres some good news for you this morning squawk box will be right back. Welcome back, everybody. At t just out with its quarterly numbers. Looks like they earned 63 cents a share. Estimate was 85 cents. Below analysts expectations. Well talk more about this in just a little bit. The stock is up by 13 cents. In this earnings season of covid, hard to say exactly how things will shake out. Well talk more about that in. Just a little bit. Historic crash in. Oil prices demand is drying up. Commodity has collapsed. Sending a warning to economies around the globe joining us now is Ian Shepherdson founder and chief economist and our mike santoli who is senior markets commentator. Guys good to see both of you ian, lets talk about what youre anticipating happening in the United States, at least based on whats already happened in europe. Were tracking europe. They are ahead of us in terms of where this pandemic stands now youre watching what happened in georgia. Youve done some comparison whats happened in georgia versus some countries in europe. What can you tell us on that front . Georgias numbers look quite a lot like sweden. Sweden is conducting this experiment where they havent had the full lock down in the u. S. And other european countries. They are getting consistently faster but not rampant case growth and it hasnt turned down yet. A lot of european countries, germany, israel, spain the number of cases and death is falling. But it hasnt exploded in a way people feared it would a lot of eyebrows raised at this swedish approach and people were concerned they would have a completely crazy out of control outbreak it looks to me like georgia and South Carolina and tennessee as well also reopening their numbers look like swedens in terms of case growth and testing. Maybe they are going to try to emulate the swedish approach whether that will work is a different question i can see the logic. The idea is that you allow the infection to spread at a manageable pace. You hope theres a lot of asymptomatic infections and you hope you can build herd immunity so the virus dies away its a gamble. Certainly not the approach in italy or germany or austria or anywhere else is take. Theres a real risk it doesnt work and end up with a much faster infection spread. About 4 per day now whereas germany is less than 1 and that makes a big difference when you compound it over a longer period i guess part of it has to be a little bit determined by your surroundings and environment a tactic like that would not work in a place like new york city where people are packed tightly together and you have public transportation. It would spread quickly. Its very striking very dense cities much faster spread. No question. Thats why countries like australia got rid of covid they have zero cases in the last three days their population density is about a tenth of the u. S. And they dont have a city that looks remotely like new york more cities are talking about opening fully in the next few weeks has fewer density. But mayors in these states including the mayor of atlanta is very unkeen they know their cities are more populated than rural parts of the states therefore the risk of an explosion of cases is much greater. So theres sort of a town and rural split here which complicates the picture but certainly no question in the denselypopulated bases in the northeast particularly and especially new york city theres just no way sort of reopening the Southern States are attempting could be tried here the spread of the infection is too rampant and fear of a resurgence is too great. Mike, your thoughts on how the market will watch this play out. Well, i think you could dial back and say a month ago tomorrow the stock market bottomed roughly in line with the peak in the rate of acceleration of infections that was something people thought would happen the market was going to essentially panic until it got to that point where it could start begin fashioning some sort of projection of the flattening of the curve youve had such a come back in equities, at least, regaining more than half of those loss but it was led by the kind of companies that dont necessarily depend on a very rapid reopening, very rapid consumer revival or any of those things seems the market is trying to rotate to those areas thats safe to hang out in for a while. We had this 5 pull back since friday that seems to suggest that maybe we have to find our correct range. Everything is very sensitive to the pace of reopening one or two quarters or more of essentially, you know, lost Top Line Group for huge sections of the s p 500. Nobody has a real edge in figuring that out. Thats why the market remains a little bit jumpy, a little bit volatile trying to figure those out. Well talk more about the market at the top of the 7 00. Ian, thank you for these excellent thoughts well check back in with you too as we get deeper into this Delta Airlines set to report in the next few minutes well bring the numbers and the first read covid qrtuaer on a major airline. Squawk box will be right back. Flexshares may look like other etfs. But inside. Theres advanced research, modeling and refinement. Constructing funds that dont simply follow an index. But explore new terrain. Helping you fill portfolio gaps. Connect to client goals. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Immunity. Earnings oil prices and the pandemic wall street watching all three issues we have the latest straight ahead. The Senate Passing a 484 billion bill to bolster hospitals and Small Businesses ravaged by the coronavirus getting america back to business how Hard Rock Hotel plans to reopen as the second hour of squawk box begins right now. Good morning, welcome back to squawk box right here on cn cnbc im Andrew Ross Sorkin along with becky quick and joe kernen. Take a look at u. S. Equity futures. We look like the dow would open up higher a little over 1 higher s p 500 looking to open higher than that 1. 3 higher. Nasdaq looking to open even higher, up 1. 6 . Lets also show you crude oil right now by the barrel. Its been the story of the week. Right now wti crude is trading at 11. 75 for june if you go out a little bit further to july youre looking at 20. 58 scents i cant tell if thats throwing darts at this point. Lets get to phil here because Delta Airlines is just out with results phil lebeau is out with the details. Reporter these are for the quarter in the First Quarter a lower than expected loss but lets be honest. Nobody is trading this stock based on what happened in the First Quarter. Thats the first time we saw the impact of covid19 in march they lost 422 million. A loss of 51 Cents Per Share the street was expecting 71 cents a share. Since there was rapid change in the cost and move they made to control the expenses there, a lot of people these estimates were all over the place. Revenue came in at 8. 6 million. That was shy of the expectation of revenue coming in at 8. 9 billion. This is all about liquidity as we head into the Second Quarter and then for the third and Fourth Quarter they ended the First Quarter with dollars 6 billion in liquidity. Daily cash burn was 100 million a day by the end of march. By the end of this quarter if they get that daily cash burn down to 50 million per day. So they are trying to take out about 50 of their cost base in the Second Quarter a big component of what people will be focused on is how much cash do you have on hand with the 6 billion. At the end of the First Quarter, how much have they raised. They raised 5. 4 billion since march then 5. 4 billion through treasury department, through the c. A. R. E. S. Act of which they received 2. 7 billion and they have the positive accessing another 4. 6 billion in separate treasury loans so, guys, when we talk with ed bastian you dont want to miss what he has to say were not dismissing what happened in the First Quarter. But thats not what people are focused on they are focused on the moves that delta and other airlines are making now to conserve cash, b, make thursday they have a bridge to lead them through to the third and. Fourth quarter when at the hope to see more business even that estimate, guys, is, you know, a cautious one at best i have a serious question for you, phil, i wont ask for the billion dollars. What about the Profit Sharing that they announced . Reporter is your question they eliminated it the Profit Sharing part it was on valentines day. It was announced with great fanfare. Same time they talked about the climate. Both of those initiatives are done reporter yep look, have i asked specifically about esg . No but lets be honest, joe, these guys are on the verge. They have thousands of employees. That might have been at that point when we got so much, you know we all take a lot of things for granted and even with all the stakeholder stuff, we know how important it is, phil, now for a company to do what its designed to do and that is to hopefully stay in business, satisfy customers, to the best of their ability. Take care of their employees to the best of their ability and take care of their shareholders. All the other stuff, bird sanctuaries, whatever you want to do but in times like this you realize wow that was a real luxury we had for this esg anyway, thats just me anyway its a correction we gave the wrong earnings numbers before in terms of matching what the street was looking at the company missing on top and bottom lines the gap number we reported was 63 cents the adjusted number nongap number adjusted number was 84 cents. Thats the number you should be comparing to the streets estimates of 85 cents. Only off by a penny on that. A lot of other companies have done, at t actually pulling its four year forecast amid uncertainty around the coronaVirus Outbreak the company is saying at this point im just reading what they sent me they expect cash flow will be Strong Enough to allow them to invest in growth area things like 5g, hbo max and fiber. Their cash flow to provide ample dividend coverage and allow hem to retire debt well talk more about this coming up. But, obviously, as so many of these companies its almost impossible to say what will happen who can say what will happen next week let alone for the rest of this quarter or this year andrew okay. Meantime i want to talk a little bit more about the earnings that weve seen so far this season and perhaps he some of the big takeaways. Mohamed elerian joins us this morning. Also cnbcs mike santoli i dont know what we should be taking away from these earnings, mohamed. In some cases we had great earnings we can look at netflix earnings. They talk about things being pulled Forward Companies on the other end that is taking a complete bath here what i cant under about any of it, has the market decided not just this quarters earnings are irrelevant but we should look away if you well for the next six months and possibly even 12 months and were already into 2021 in meaningful ways. Is that whats happening in terms of how the market looks at these numbers. First on the takeaway, its dispersion majority of companies are telling you they dont have visibility at t suspending guidance so many others, dupont, et cetera then you have a few that are doing well chipotle well, netflix well. They tell you there are silver lines in this earnings season. On the other side the leading indicator airlines, delta is telling you its about cash burn its about how much cash you have can you reduce your cash burn. How much can you raise were seeing the full range of corporate prospects and i think its really important to realize that now interestingly when you sum it all up and go to the top, if you look at valuations markets are still relatively optimistic. One argument is looking through to what you said which is forget about this year, lets just look through it and next year hopefully were back to some level of normalcy. But the other factor, i think thats still playing a large influence is the fed the fed with high yield, just one level above the equity in the capital structure and i think theres a hope in there that we have a stronger fed put. I dont believe it but thats the hope out there let me ask you a different question, mohamed which is you talked about trying to upgrade the quality of stocks in your portfolio through this given some of the earnings that weve heard and seen is there anything that surprised you, that you would have thought either was more resilient or was a lot less resilient than you had anticipated . Not as yet. And ate very tedious job to upgrade. You go name by name and you ask a queue questions. How strong is the Balance Sheet. Can they raise money is the world coming to them. For netflix the world has come to them. Very tedious job but the earnings are showing that these attributes at this stage of the shock are really important. All right mike, you talked to traders all day, you talked to investors all day. Your seeing Value Investors jump into this world at all the reason i ask because there was a piece, interview with Charlie Munger in the wall street journal over the weekend suggesting he didnt think necessarily there was a lot of opportunities just lying around at this moment that they were trying to husband their resources more than anything else. I dont think Value Investors necessarily are in a hurry to try and catch a lot of these very depressed valuations right now in the very cyclical areas of the market. The market has done a pretty good job of trying to separate out those with resilience and those subject to this open ended downturn of the economy. You can really find a lot of stock. I think Something Like 40 of the s p 500 names are down at least 40 from a high. You would think Value Investors would be in there and shopping aggressively but every single thing looks either massively disrupted in term of the sector like retail, or it seems as if, you know, theres a Balance Sheet risk so, yes, i agree with mohamed when the fed basically said were not going permit sort of an open ended default, disorderly daisy chain to run through Corporate America by back stopping high yield that did bridge us a little bit but individual issuer it seems theres risk out there theres hesitancy on both side the price in the market is set by very tactical players figuring out what levels of the index make sense, what the oil spill means. Whats interesting to me, one observation is oil stocks and oil credit are not making new lows along with the commodity price so maybe that just means that it seems the commodity itself is subject to its own extremes mohamed, 30 seconds about whats a disconnect between the oil markets and equity markets it is a bit of a disconnect except and this is really important. There are two things playing out in oil what you see in physical space and what you see in financial space. Keep an eye on the big etf because you have a vicious cycle that went on for a few days between physical and financial space and thats why you got the disconnect that mike pointed to. Okay. Mohamed elerian, thank you. Mike santoli, thank you. A lot more on squawk box ahead. Nasdaq Adena Friedman will join us but first take a look at shares of Netflix Streaming service adding nearly 16 Million Subscriber justin last quarter which was double the amount analysts were expecting but costs investors uncertainty ahead. Squawk returns after this. Theres tv. And then theres x1, featuring the Emmy Awardwinning voice remote. Access to your favorite apps, including netflix, prime video, youtube and hulu. All without changing passwords and inputs. The most 4k content and movies and shows on any screen. The best Entertainment Experience all in one place. Swithout even on yoleaving 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. Nasdaq reporting quarterly numbers a short time an increase of 11 joining us now for more now on the quarter and where things stand Adena Friedman ceo of the nasdaq and you see im here, adena. I do. Not quite the hubbub of activity that were used to, obviously, but i love being here and, you know, and appreciate everything that you do for us. How would you characterize kind of running the nasdaq in this environment right now . Sure. Well first of all, joe, its great to see you at the studio and i hope you feel were doing everything we can so you have a great experience while you stay safe there so thank you in terms of managing nasdaq today, as you can tell First Quarter results indicate were a resilient and diversified business we have the benefit of a large amount of reoccurring renew comes from our business and daytoday information business and then we also had large increases in volumes across our markets which have also been reflected in the quarter in terms of managing nasdaq today, 98 ofour employees are remote they are working from home we are very fortunate because the structure of our business does allow us to manage our markets successfully and manage the software and other services we offer our clients while keeping our employees safe at home thats how weve been managing through the situation so far there are parts of the business, obviously, that arent going to be anywhere near what they used to be, i guess ipos and stuff some things are getting done biotech . We actually have had three Biotech Companies go public. We have one more on its way. We do believe that companies can go public on nasdaq in this environment. We have the ability to manage those ipos in a virtual way. As well as making sure that the stock opens successfully with the underwriters and investors we feel very confident in being able to work with our clients who are going public and a few youre right large ipos and most of the Ipo Companies are really waiting to see how they can navigate this and investors are also waiting until they can understand a little bit more about the impact of the virus before they put some risk capital to work. Long before the Current Situation we find ourselves in, you were diversifying in all kind of different areas for the nasdaq is that still continuing has it paid off in this environment . Yeah. I think that we feel very strongly that the tragedy that we undertook starting in 17 what we invested in are paying off today. 70 of our revenue is reoccurring in nature. We have a broad set of clients that rely on us for Critical Technology and former. They are leaning on us to have us help them under what happened to their stock and Investor Base how should they navigate through this for exchanges we serve we have over 120 Exchange Clients around the world where we provide their Critical Technology to power their markets. And theyve also seen surge in volumes. We help them navigate through the activity levels they had in their own markets. Then, of course, we have our broker dealer clients who rely on us for Data Information as well as access to the the markets and were proud how our markets have performed throughout this crisis situation in terms of being able to provide ready access to morkts throughout you helped out 6 million for food and things like that with covid19 response. Have you figured out how to reopen because youre not i mean im hear but just me and mac. In the entire we show mac a lot because hes my trusted associate here but this is it thats the nasdaq. Thats the Nasdaq Market site, fully thats basically it how are you going to reopen take peoples temperatures what do we do . How do we do this theres going new normal for a period of time and we have been spending a lot of time planning on how do we bring employees back to our offices around the world now we haves ones in 30 countries. Were navigating this country by country, location by location. There will be some locations that will be opening upsooner than others based on how the status of thevirus so the first thing well look at is are the numbers of infected people and the decline, are the hospitals able to manage through the caseload they have testing is an area were extremely focused on in terms of being able to identify and bring this virus into the light. I would say that we are really at war against an invisible enemy right now and testing and Contact Tracing are critical components to bring the enemy into the light so we can know how to manage our people safely. But also being able to reopen certain offices where we see that the virus is well controlled and until we can have the right weapons, which are treatments, which are being actively worked on but ultimately the vaccine which will kill the enemy we have to recognize that Contact Tracing and testing are a critical component when our employees come in well ask them a series of questions, take their temperature and do other things to make sure we can manage our employees successfully but the Broader Society testing and Contact Tracing are critical components in bringing people back to the offices. Becky we were talking earlier this morning how some private equity guys are out there and eager to look for deals at prices that could get them before. From all the investors you talked to from your scene of what the markets feel like, right now, do you get the sense that theres money on the sideline thats waiting to come in at prices that are much lower than they had been a few months ago or do you get the sense theres nervousness and people are unwilling to mitt to new capital . Whats your general feel i think that investors generally. So whether they are part of investors or public investors most important thing that they look at is how do they predict the future as you said just a few minutes ago its extreme lie difficult to predict the future. There are businesses that are unaffected or frankly their stock prices dont necessarily reflect the resilience of their Business Models and investors who know them well and maybe have invested in them in the past might be able to see through the noise and know there is a resilient business on the back of it therefore, they may lean in on those companies and youve seen some of that in the recovery of the stock values private equity firms have to make bigger decisions because they may be taking a controlling position they are more likely to look for Distressed Companies that they know they can bring through this situation and have a longer time horizon for their investment but companies also need to be willing in the case of private equity and willing to have a private equity owner come in and in that particular case a lot of companies this is still new the valdes construction thats occurred through the early elements of this virus is hard for companies to sit there and say well i dont see a path to getting back to where i was because a lot of us definitely recognize the fact there are elements of this virus once its passed through the economy should be able to recover and our businesses should also be able to recover. Private equity owners might be looking for ideas and looking for ways to come in to companies. But Companies Need to be ready to be able to take that capital. Adena, thanks looking forward a lot of things. Looking forward to you being back here on this beautiful new set and everything that we have here that wont be too long time is going fast i agree time goes fast right. Exactly. Its unbelievable seems to have slowed down i have to say im excited to be back there too, joe. Looking forward to seeing you. The day will come hopefully soon thank you when we come back, Blackrocks Rick Rieder will talk about the markets, the future, where investors should be looking for opportunities right now. Squawk box will be right back. Announcer time now for todays aflac trivia question. In what year did netflix offer subscribers the option to stream its content . The answer when cnbc squawk box continues so were answering their questions. Aflac is auto insurance, right . No. Uh uh. Is it Homeowners Insurance . No. Uhuhuhuh is it duck insurance . Nope. Ahhh do they pay me money directly when i get sick or injured . Yeah. Aflac you got it. You know aflac boom get help with Expenses Health insurance doesnt cover. Get to know us at. Aflac dot com. 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. Announcer now the answer to todays aflac trivia question. In what year did netflix offer subscribers the option to stream its content . The answer, 2007 all right. In our headlines today lyft is withdrawing its 2020 guidance saying that the pandemic is having a negative effect on ride volume the company said it would reveal detailed actions to weather the virus out break in may macys is looking to raise 5 billion in debt. Also lets check out shares of medtronic. The company is cautioning revenue has planninged it comes as hospitals delay elective procedures that use medtronic medical devices. Macys shares were up 1. 9 of the debt they want to take on. Medtronic, yeah, i have no idea where those shares are joe still to come Blackrocks Rick Rieder and then later the ceo of labcorp like u. S. Bankcorp, citicorp, not the marine corp. Check out crude oil at this hour crude is down by 11 on the june contract unbelievable squawk box coming right back. There is a growing divergence in the markets. S p 500 is now down 15 for the year but the nasdaq 100 though still down is faring better than its peers. Tesla, netflix, amazon, nvidia and microsoft are up joining us now is rick rieder, chief Investment Officer of Global Fixed Income at blackrock and the head of global allocation team. I know you cover all markets whats your takeaway as the biggest, most important story in the markets right now . I mean, you got it right, movement in crude was incredible then we did a lot in high yield markets. Energy think about the size of the Energy Market its definitely decline. What it shows is the demand disruption in the economy. Thats the biggest story the other one is that technology when i was on your show a couple of weeks ago we talked about upside in technology we ran a long way in the last two weeks. And, you know, i think, frankly, equities have got entoo high relative to where weve been talking a week ago, two weeks ago, three weeks ago specifically in the Technology Names . Yeah. If you go back so i did this sun we were thinking about Asset Allocation for the week. I looked at the s p 500 was only down 11 yeartodate and technology in the nasdaq was up on the year. If you take a dynamic economy, i think about what just happened economically we had the greatest hiring surge 25 million are going to be displaced over a period of three months the equity market is not supposed to be down 11 and theres a big transition in terms of two technology which you talk on your show a lot. You show tesla and others on your strength versus oil we talk about technology evolution, health care those sectors you should own for the longer term. But where we sit today you can be patient and let prices readjust a little bit. Weve been talking so much about all these companies that are going to the private markets or Public Markets and making sure they can get additional cash to shore them up. Micys looking for potentially 5 billion what type of appetite is there for Companies Looking to make sure they have enough cash on hand it started with owe companies if they could get money they would lock it up what do you see from investors as far as the appetite how risky they are willing to get . A great question. First thing, we talk about high yield market, investor grade market its about industry. First industry then company. The companies that are when companies restructure, talking about energy, parts of leisure, transportation, et cetera, it depends what the company is and what their prospects are but theres a tremendous amount of money available for rescue financing if a company has restructured, if the company is reducing through bankruptcy or otherwise reducing their debt burden theres a tremendous amount of money that goes in we participated in a number of restructurings once a Company Makes a determination they got a cash strain, too much debt for even what the go forward looks like, the amount of money that will come in and refinance those businesses is tremendous it depends on the industry, how much collateral you need, what the structureal dynamics are of that business. Once you made the decision and its time to do it is pretty significant. Whats the asking price how big of a bargain can be found or do you think these even are bar begins give how significantly things have changed . I think they are. I think by and large, we participated in a number of these restructurings, a number of these refinancing they are priced at a good valuation. Where you set, what your collateral is and whats in front of you youre in pretty good shape i think the valuations are still pretty attractive. Usually what happens in markets after people get a sense it comes in good levels, my guess it will happen here. Its a good place to invest. Whats happening because of whats happened in energy and the high yield market the world needs huge a yield. Rates are at zero. A lot of quality in the high yield market is too itch, people say i dont want energy or parts of transportation. So whats happening you created a bifurcated market in some of this rescue financing where you make the decision to take the toughmedicine. Thats where some of the value is well see how long that is attractive today its pretty attractive because were jumping around from market to market i want to break down what you just said you think its pretty attractive in part because if youre buying corporate debt you get to stand in line in term of the creditor, in front of where the equity holders would be, correct . Correct youre getting paid real yield to do it and generally, generally with collateral wa collateral position thats pretty attractive. And depends on the industry. Again lets play it out generally, yes. Lets play that out again into your thought as to whether or not people should be buying stocks the youre an equity holder you stand behind in line in all of those. You said things have gotten pretty rich over the last couple of weeks lets talk about the risk perspective of where you stand in line as an Equity Investor too. You are asking the right questions. By the way, why is everybody we talked about this on your show a couple of weeks ago, i think a month ago. Technology, health care, defense. Theres some Consumer Discretionary that makes sense they wont restructure and they are in good shape in terms of their business we talked about netflix and other companies. Were moving to a more Virtual World and so those areas and health care is significant going forward. Those you dont have to worry about. Then you got to make whats a really tough decision when you think about the airlines, when you think about energy, we think about he some of these do you want to be in equity when they probably will get diluted or further diluted like united yesterday or b youll get subordinated thats what im saying before the nasdaq being up on the year, the russell was still down by 20 . Markets are differentiating and doing that, thinking about capital structure, thinking about where do i have upside and where i wont get dilution and watching that play out in front of our eyes. Lets add one more to that entire thought process how does the government play into this . If the government does rescuepackages or aid packages where do they stand in line and how could that mess up things potentially for bond holders so, i mean depends on the industry, depends on the company. That being said government usually stand at the top part of the stack so you have to consider that. Listen, ill say one thing about it for some of these industries, airlines being the best example of it you need to get to the other side and the world will not get back on airlines particularly to travel internationally in the next month, two months, three months, pick it. You have to get diluted, you have to stand by the government and Many Airlines globally have nationalized because its hard to run that business so anyway you have to think about that when youre making that des do you want to buy that equity or not the government doing this makes a tremendous amount of sense and the government participating what is a shock to the system, the taxpayer will benefit in multiple forms from the government stepping in they usually step in at the right time because they have to bridge a gap and b, to get commerce working efficiently is the primary. When people say were in a war, were warren for the government step in is the right thing. Its a benefit to the taxpayer, to the consumer in multiple forms. The government can do a lot of other thing weve been following this issue of whether or not the government is going to indemnify or offer or say businesses arent liable for their businesses or customers if they get sick and people get sick and return to business for hotels like the businesses he runs it would be really important to that have that liability. Look we need to open for business right away. By the way, its risky and we dont want to be held liable as an investor downi you think about that question as well . Becky, there are so many i dont think anybody has ever seen this before theres a malty facetted set of considerations you have to consider liability whether its the financial industry, hotel industry, Airline Industry whats hugely important, im sympathic to the idea we have to open the economy sooner because of the duress and the Business Models that get brent the longer we dont do it that being said how do you do it in the appropriate way is so hard people are underestimating particularly things in hotel and leisure sector generally the longer this goes on the challenge becomes even more intense because of the wage issue, because of the embedded cap x and the cruise industry. You have maintenance cap x, you have significant labor, some you furlough, some you dont how do you bring them back on. People are sitting on tremendous amount of cash do you want to buy equities yeah but i dont want to play in places where that multifacetted algorithm you got to run is so complex. Ill go where the momentum is good thats why you have to think about where you want to be in structure. Where do you want to take equity risk senior protective risk in the debt markets rick, its always great talking to you thanks so much thanks, becky appreciate it. Well see you soon. Andrew coming up when we return a check on some stocks to watch including delta. Well talk about it. Just reported a short time ago then the ceo of hard rock casino will join us talking about reopening america and what business will look like after the pandemic check out the results of a new cnbc states of poll out what is states response to the covid outbreak 53 republicans polled said their state was too aggressive 50 of the survey democrats say their state wasnt aggressive enough while only 3 of that group said their home state was too aggressive a lot more throughout the day on air and cnbc. Com its an interesting poll and really gets it where this countrys head may be. Squawk box returns right after the break. [horns honking] birthdays arent cancelled. Hope isnt quarantined. First words arent delayed. Caring isnt postponed. Courage isnt on hold. And love hasnt stopped. U. S. Bank thanks you for keeping all of our spirits strong. Weve donated millions to those in need and are always here for our customers and employees. Welcome back to box this morning. I want to show you futures right now. Were about an hour and a half before the market opens. Lets show you whats going on dow looks like it will open 270 points higher. S p 500 is up by 36 points nasdaq up 131 points high per a couple of Companies Reporting this morning Delta Airlines posting a smaller than expected loss but revenues fell short talking about Airline Revenues in this environment is almost irrelevant the stock trading higher on the news there was the bail out dont miss Ceo Ed Bastian taking questions. Hell talk to the gang on squawk on the street shares of snap higher after reporting better than expected revenue. Snap reported a loss of eight cen cents a share. Evan spiegel will object on at 11 00 a. M. Chipotle earned 3. 08 beating expectations Digital Sales doubling in marilouing the company to post positive same store results. It came just shy of analyst estimates. Chipotle ceo brian n icc ol will be on this afternoon a big lineup andrew, when we return, after shutting its doors, thanks to the pandemic, hard rock casinos looking to get back up and running. The ceo of seminal gaming joins us after the break to discuss. Then in the next hour the ceo of labcorp joins us to discuss its new at home test and the news this morning that it plans to ramp up Antibody Tests to several hundred thousand people by midmay squawk box coming up veterans, in times of crisis, youve served our country. If youre a vet and youre experiencing any symptoms of the coronavirus, please contact your local va hospital. Protecting your health is our greatest duty. Swithout even on yoleaving 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 to squawk box. New hope for struggle companies. The Senate Passing a 484 billion package to help Small Business and hospitals ravaged by the pandemic and expand testing for covid19 the vote was unanimous and expected to pass the house by thursday the bill injects another 310 billion into the Paycheck Protection Program includes 60 billion for small lenders. 60 billion for Small Business Disaster Assistance loans and grants and 75 billion in hospital relief and 25 billion for testing. Meanwhile governors from across the country are eager to reopen the economies and lay the ground work to get business up and running. In 89 of our 95 counties well be in the process of getting back to work next week texas is prepared to be taking very positive steps towards opening up our state and finally ensuring well have more of our employees going back to work and we have a new cnbc states of play survey among the question what steps should be taken to return to work in public spaces. At the top of the list Temperature Check and restrictive travel welltalk more about how businesses can reopen with jim allen ceo of hard rock love to try to under how youve been thinking about what it means to get back up and running and back to work and what that looks like for your companies, jim. Good morning. I think, first of all, you know, our companies in 76 countries around the world, so weve been dealing with this pandemic since january, obviously, with our hotels in china. As we look to the future, were starting to see a little bit of daylight, and were hopeful that as we get towards the end of may and into june, that well start seeing opening of many of our locations on a global basis. And what does that look like . Youll open up a casino, for example, people talk about people Wearing Masks inside. You know, how much of the restaurants do you open inside what kind of procedures and practices do you need to have in place for the customers, the employees. What does that do to your costs . Give us sort of a lay of the land you know, i think the business model, obviously, is completely different and frankly our cafes are different than the casinos. The hard rock live business is basically and our broadway business is on hold for quite some time. From a casino standpoint we learned a lot the last 30 days we were open when we were already doing much more than social distancing. Frankly one slot machine was on and four were off. Only allowing three individuals at a gaming table. Certainly utilization of masks, all kinds of challenges with food and beverages menu, salt and er shakers we look at each business as their own individual business entity geographically well adjust to the local, state and federal guidelines that come about we think thermal imaging, body temperature, making sure our employees feel safe is priority number one but that may come at additional cost thats just unfortunately part of this pandemic that we need to navigate through what percentage of your business is coming to your locations, typically on an airplane and what percentage is coming out of a vehicle . You know it really depends if we look at the largest profitability of our business its the florida casinos thats more of a Regional Business if you look at Hard Rock Cafe in times square a restaurant that does 50 million in actual sales thats all tourism. London is tourism. A casino in cincinnati is local. So Atlantic City is a little bit more, new jersey, new york, very, very concerned about that business as we try to navigate through the summer which is traditionally, you know, the time of year when they are have their most profitable months what is your expectation to the extent that you have an expectation about people getting back on airplanes, about the live business you talk about, which ultimately is about gatherings of size and scale you know, our organization has been traditionally very conservative we enjoyed the Investment Grade rating as far as our Balance Sheet and financial ability, were in pretty good shape. But ill give you and example and i checked the numbers last night. We reopened the shenzhen hotel, a global city in china beautiful property occupancy is at 12 . Weve been open for three and a half almost four weeks im concern while we see a ramp up, see the beaches in jacksonville as crowded as they were, that seems like thats kind of exciting but i think thats just the initial get out of the house, if you will i think theres going to be a real challenge, especially here in the United States as far as ramping the business back up and were planning on that taking a year jim, just a quick question for you. When you do reopen places like the restaurant in times square, will you have pay Terrell Owens seated farther apart able to hold fewer guests . Because the question is what happens in terms of the recurring revenue even once people do come back if people feel comfortable enough to eat out. Thats an excellent question. I think in many jurisdictions theres going to be guidelines that come from government. Our mindset is that six to eight feet is certainly guidelines from the cdc but even prior to reopening we have a different viewpoint maybe it will start at 30 , 40 capacity at most well see what Business Volumes are. But i think its a gradual, you know, step into this to make people feel safe most importantly and believe me were certainly have a responsibility, obviously, to try as majority owner and certainly any instruments we utilize, most importantly we want to make sure our employees feel safe. We were way out in front of this with employee, we took care of them for over a month. I just reextended all of their benefits through june. Frankly well announce this week another program for any employee making 50,000 a year or less starting every other week giving them grocery certificates so they can buy food. This is something thats a real challenge and important to make sure we keep our staff as safe as possible as we start to slowly think about reopening. Jim, thank you. Its good to see you and great to hear what you are doing for your staff its really important. Thank you. Thanks, becky when we come back well talk about oil prices they are down once again this morning. Wti trading at 11 a barrel and thats not june from may, that was the contract that was under so much pressure were now talking about the june contct en we come back well talk about until applications of the crude crush. Squawk box will be right after a quick break. A 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. Breaking news, futures pointing to a midweek bounce for stocks after the dow shed more than 1,000 points since monday but theres little relief for oil. The story so far has been american crude now the International Benchmark falling to 20 year loss. Second round of relief for Small Businesses is making its way through congress is it enough to stem the nationwide economic pain were going ask National Economic Council Director larry kudlow the final hour of squawk box begins right now good morning im joe kernen along with becky quick and Andrew Ross Sorkin u. S. Equity futures at this hour are bouncing a little bit. In the old days we would say couple hundred points is a lot but we are used to percentage terms now and we did lose 1,000 plus points over the past two sessions, but i was just thinking about that and its preferable to losing a couple of thousand in one session or he some of those moves we saw that we are not, nothing is surprising to us any more and only have to look at the crude market to see that as well treasuries have not been the story most recently. But were seeing a little bit more stability in some of these markets even equities. But, but, as i say, becky, not in the oil patch where its just been like crazy. Andrews turn. Crazy town but it has been an appropriate term to use, right sorkin . Did you ever imagine minus 49 a barrel i called this as quickly as i could but nobody delivered you get 40 and a barrel of oil. Upon and a pool. Pond is good for you thank you well start this hour in the oil patch as joe mentioned thats the story check out the price of crude this morning not only wti but brent is trading because of this pressure and theres nowhere to put any of this stuff. That has people starting to think about what the Market Impact is. The crude crash could have far reaching and lasting impacts on the u. S. Economy as well and Steve Liesman is here to talk about that impact. Steve, good morning. Reporter good morning, becky. The impact of the crash in oil prices is going to be felt far and wide in the u. S. Economy both nationally and selectively from those states that are the big oil producers. We produce so much oil now that its unclear to economists if oil prices after positive for u. S. Economy or a negative now, weve seen big price swings before but never when the u. S. Was the largest producer now at 12 Million Barrels a day of all the industries affected by this shutdown here the u. S. Oil industry going back to where it was is maybe the hardest to think about. Thats going to have implications for the rebound in growth in the future here. Nationally the u. S. Industry has been a major source of Capital Spending for the u. S. Economy, selectively in states its been a source of jobs, investment and revenue. Take a look at production by states you can see texas, obviously, the bulk of that 12 Million Barrels a day is from texas. You go to the federal offshore, north dakota, new mexico, oklahoma, colorado and interestingly alaska the last place. Of all the economies there im least worried about texas. It has the most diversify econodiversifyed economy. One thing that characterized this oil boom has been powered by technology. Not a whole lot of jobs at least in the oil and gas industries. A lot of jobs when it comes to the pipeline industry, the steel industry, the Service Industry directly oil and gas has not been huge. Texas leads the pack california has a lot of oil workers. Oklahoma, louisiana and pennsylvania okay on the Macro Economic side two deflationary impulse come from this one comes from lower prices. Thats good. One is a safety net for the economy. But second you get those loss jobs and lost Capital Spending President Trump has talked about helping oil companies, perhaps that could happen through the Federal Reserve. Some of the lending facilities there. But question longer term makes sense for the u. S. Which is one of the largest producers in the world but a relatively high priced producer to be the Worlds Largest producer the choice may be for a smaller industry or some form of dare i say standing cooperation between opec and russia. Becky . Thank you joining us now to talk more about the historic moves weve been seeing in oil, steven richardson, senior managing director and head of oil and Gas Exploration and Production Research and were also joined by our own brian sullivan. And sully, we booked a lot of great oil guests like steve but i learned as much from you just watching your analysis of whats going on no offense, steve, were you predicting minus 40 a barrel last week or two weeks ago unbelievable, right . No, absolutely. I mean it was a very sloppy close the contract in may but i think the real focus here is on the cash cost in the field and what the companies are realizing. You know the futures market has been separated from the cash market for quite some time now and its now seeing a convergence and the reality is hitting home and certainly in the field. We show, brian, you know, we show the future month now. Im trying to im picking the first out line it depends on when we reopen. What is the inherent value of a price or of a barrel of crude oil, brian can i go with 25 or am i just po pollyanna. It depends where you are in the world. Thats whats coming down to it. These futures contracts heres the problem we look at them like they are all the same but they are not because a lot of them is where youre going to have the oil as we said yesterday theres 50 Million Barrels of crude oil on its way right now at sea coming to the United States, mostly from saudi arabia because it may be cheaper in some cases to get it into houston from the sea than from oklahoma because the pipelines are full or you simply have no place to put it once you get to houston a lot of it is where that oil is, indeed located i never imagined negative 40 bucks but we were talking about negative prices as were others for a couple of months and, of course, this all calls into question not just oil, guys, but these things like the u. S. Oil etf which was halted two or three times yesterday. What if etfs go negative whats the mechanism this is really not just a commodity story its a market story and a Market Structure story. Steve, how does this when will we begin to see resembling something return to normalcy what do you think . Well, joe, i think it really comes down to when do you get up in the morning and fill up your car with gasoline and drive to a job, right thats way to think about it is when we all get back on airplanes and tart driving again. The u. S. Has got one of the most complex high quality infrastructure for delivering hydrocarbons to consumers. But we havent built that infrastructure for consumers to stop using it all of a sudden. It comes down when demand comes back is that in the summer, late july and the shape of that recovery is extremely important what if we did something supply wise. What if the saudis or whom ever came back with even bigger cuts. That would still help, would it not . Youre just trying to match supply and demand, arent you or is it all demand i think you should just remember that the agreement thats in place is only starting may 1st. So if you remember that weekend where there was a lot of hold outs and not an easy conversation, going below, you know, our house view is going for saudi to go below 8. 5 Million Barrels is hard work and its not something that they are likely to want to do you know, i think the ugly answer in the near term is that north america well have to shut production we think theres upwards of 5 Million Barrels a day in north america that isnt making cash cost and this is before prices went into low Single Digits earlier this week. Youll see a less than orderly shutdown of the industry at the well head, and, you know, most of our companies are starting to report in the next couple of weeks and youll start hearing about that raegularly from our producers. Brian, you use my line of mpg what it stands for months per gallon. Mpt no months per gallon. Months per gallon its a sad joke but so true. My car hasnt been filled up for a while and by the way calls into question new jerseys full service model. When i have got engas and i mean this with all due respect everybody is busting their butts at the gas station at 3 00 in the morning i get out i got it ill pump my own gas i talk to the Saudi Energy Minister last week he said opec cuts are being under stated he called it more like 12 Million Barrels a day. Secretary and i were going back and forth two days ago they have a semiemergency meeting yes. Texas Rail Commission were to vote on a proration ie quotas but not sure of the legality of the thing. There are things happening behindthescenes to limit that supply but to steves point if we dont see a pop in demand i dont know how muchit will matter there will be a story here soon. Ill make an editorial prediction there will be a story here soon where were going to have some kind of industrial incident or accident because everything is just literally bursting at the seams. I dont want to it happen. But you gynecologist a lot of people with no place to put in some cases dangerous commodities or refined fuels not only an economic story it could turn out, you know, we had a lot of trillion accidents in the last year already. I hope im wrong so, brian, when i get gas its mask to mask and i try to bring exact change, you know what i mean. I do pay cash because its lower becky knows that its lower than credit card prices. The guy has a mask on, i have a maverick on. We both are wearing gloves has anyone gone to a bank . Does anybody walk into a bank with a mask on now everyone is wearing a mask the whole world right its insane. The one robbing the bank is not wearing a mask all right well get to steve President Trump just tweeted, ive instructed the United States navy to shoot down and destroy any and all iranian gun boat physician they harass our ships at sea thats life around the world continues in the covid world, andrew even with iran coming up a lot more on squawk box this morning. We have some news on an important new tool on the fight against covid19 the head of labcorp will tell of about a virus test meant to be done by yourself at home still ahead National Economic counsel larry kudlow on round four of coronavirus aid. Check out shares of Delta Airlines revenue down 18 from a year ago in the companys latest quarter as the coronavirus slammed demand delta said the steps its taking to cut cash will cut its burn rate ed bastian will be on squawk on yoe street at 9 00 a. M. Eastern tiu dont want to miss it. Stay tuned youre watching squawk box on cnbc 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 to box, everybody. Weve been watching futures. We continue to do that over the last two days weve seen some significant loss dow was down by over 600 points yesterday. Down by 540 points the day before that. This morning were seeing a bit of a bounce back off the highest levels dow futures up dated by 232 points nasdaq up by 124 watching shares of at t which are higher in the premarket trading. At t withdrew its full year guidance amid uncertainty surrounding the Virus Outbreak earnings came in at 84 cent as share for the First Quarter. The company says its cash position is strong and core businesses are solid and maybe this is important too. They go on to say in light of the pandemics Economic Impact this is from Randall Stevenson theyve adjusted our Capital Allocation plans and suspended all share retirements. Fancy way of saying share buy backs. As a result were able to dont invest in critical growth areas. While maintaining our Dividend Commitment and paying down debt. Worth pointing out i looked at the yield of at t. 6. 9 a big commitment to the dividend and thats why youre seeing the stock up high they are morning andrew did you see that they lost 900,000 direct tv subscribers . Does that surprise you that was a huge number. I mean that number thats precorona that was the trend before i wonder what to think about transaction now in retrosuspect. It set up Everything Else, maybe. I dont know meantime, the fda has granted emergency use authorization for the first at home coronavirus test this is made by labcorp. That Company Announcing this morning that its expanding the ability of its Antibody Test for covid19 joining us now is the ceo of labcorp. This is very positive news tell us about it tell us about this test and how it works absolutely. Good morning thank you for having me here today. I want to give a big thank to you all the people working at labs at labcorp and labs acrowned the country its National Lab Week and i appreciate all they are doing help as many patients across the United States as they can. Theres three types of tests that labcorp is performing for covid19 one it tells you if you have the virus and another test that tells you if you have had the virus in the past. Were making strong progress on both of those. As you mentioned, labcorp is the first at home test and currently providing that test to Front Line Health Care workerser and First Responders that have symptoms they can order the home kit from our website and then they can mail to it our labs and within one to two dates will tell them if they currently have the virus or not and what is the accuracy of this test . Theres a lot of different questions about a, how these tests are done this is a blood test, correct . No. Its a nasal swab test as our other tests are, if you have the virus. Blood test is the serology test. We validated both extensively and feel they are extremely accurate in terms of the Antibody Test, one of the Big Questions about that test is knowing that you had it, whether you have real immunity. What are you finding right now its sill very early in the science of this virus and we dont have several iterations or several seasons of the virus its not exact in terms of what the serology tests tell us for sure but what we do know is that somebody had the virus and showed they have the antibodies, our test can detect those antibodies what we doesnt know is a year from now is whether those antibodies will still be as meaningful as they are today and in terms of the scale of this, how many of these tests are you able to produce, get to people and process so for the serology tests those are blood tests and we do a lot of blood tests every day at labcorp we can do 50,000 a day and by this time next month we expect to do several hundreds of thousands a week were going to have our Service Centers that are across the United States be able to do the serology test, the blood test starting next monday again, thats for patients that dont have symptoms, do not currently have covid19 but believe theyve had it in the past adam, just on the serology test and its really interesting because there are a lot of people who would love to see if theyve been exposed to it so they can feel confident about going back to work, sending their kids back to school. What do you need how you meet the standards and where you get one much these tests if youve not shown any symptoms no way youll get a coronavirus test those are too hard to come by. The serology tests we can do several hundred of thousands a week who gets them people can go to their physicians, go to urgent care centers, telemedicine because they can put the orders in through our Service Centers that we have across the United States and then people can go to our Service Centers to have their blood taken. We send to it our labs and they get the results in one to two days i was going to follow up, when we spoke with bill gates he said testing should to be done in the order of people who should be most likely to have had it or who are most likely were exposed to some of they things do you share in that viewpoint or do you think that this is first come, first serve. Thats what i dont under. A lot of tests but there are a lowest people who would love to get access of those tests. Is it by who pays the most given out in physician offices and places that have been hit hardest or places that have not been hit so you can find out if its there well have multiple ways. I do agree that people that have had the virus in the past or believe they had the virus in the past should certainly get the certificate yolg the test to see if they have the antibodies. In addition to that well have so much capacity across the United States not just with labcorp but other local laboratories and more people will be able to get this test. Certainly many more than were able to get the current test that tells if you have the virus. Adam, in terms of being able to identify you took the test and identifying that to others as you know in other countries south korea andchina a lot of people have a phone with a qr code or Something Else that identifies them as either having the antibodies or having taken the test and be clear or positive or not positive how do you think about privacy, how do you think about whether we should be doing that because of the Contact Tracing and Everything Else . Yes so the tracing will be absolutely critical and i believe that were going need to have a way to know who has had the virus in the past and who has had the antibodies how we say that information has to be determined and we have to be thoughtful and careful in what we provide to whom due to privacy laws we have in my opinion well have to find a way for people to share over time with the employers and to the cdc or state who has had the virus and who has not. Will you have a database of that information for the patients that have used our tests . So for patients that use our test they can go on their Patient Portal to see the results. Are you thinking about connecting that through api to any of these services that apple and google and others are talking about. Were in discussions but, again, a lot of work to determine whats appropriate from a privacy perspective but we are in discussions to determine whether well move forward with that not. Adam, thank you for joining us good luck with this test its good news positive news. Were happy to have it we hope to talk to you very soon absolutely. Thanks for having me today you bet joe . Coming up the other side of a staggering user growth at netflix. What happens when binging takes a back seat because worldwide lock downs are eased as we head to break take a look at shares of snap. Social media companys quarterly revenue jumped daily active growth used evan spiegel osawn quk alley at 11 00 a. M. Eastern time stay tuned squawk box coming 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. Coming up this morning National Economic counsel director larry kudlow will talk to us about plans for the latest emergency injection of fund. As we theyd a break lets look at shares of chipotle. They posted inline revenue with profit beating the latest quarter. They said 80 jump in online orders helped blunt the exact from in restaurant dining. Dont miss chipotle ceo interview with brian n icc ol. Thats later today youre watching squawk box welcome back, everybody. Netflix out with some eyepopping quarterly numbers that they have shown about how pandemic lockdowns are really leading to more streaming. For its First Quarter netflix added 16 Million Subscribers more than double its own prediction not surprisingly the Company Expects that pace of growth to slow joining us right now is tom rogers, executive chairman of lynnview, former ceo of tivo and a cnbc contributor and tom, you know this industry just about better than anybody else what do you think of those numbers and how the streaming wars will play out with so many new entrants on the scene. Becky, thank you for inviting me into your home this morning netflix got invited into many more homes than people expected. I think netflix had its own ppp program, pole position permanence in these streaming wars i think it comes out of this stronger, more dominant. I think the habit forming nature of peoples relyians on netflix will not go away when people come out of this stayathome period i dont think people will say it was nice when i was at home i dont need it any more youll see reductions in return rate and they have a deep amount of programming, all the way through 2020, already in the can is something that really drives increasing dominance for them going forward. Yeah. We spoke about that earlier this morning with rich greenfield what does this mean for other services, disney plus, peacock, quibi and hbo max. Will they be able to gain traction will people be willing to may for more streaming services. When they lost friend that hit netflix hard i dont think anybody is thinking about netflix losing friends. Its the original content. It ends with somebody saying what your watching and invt tur to netflix theyve done a wonderful job Reed Hastings on his Earnings Call for netflix deservedly tipped his hat to team there for what they accomplished but whether its at t with hbo, whether its disney with disney plus and hulu, whether its nbc with peacock, they all are managing through a mess now. Theaters closed. Sports not there advertising hugely diminished. And when they come out of managing through a mess then they have to manage through a decline. And the amount of attention and resources that that likely takes away from everything they have to do to drive their streaming business forward is a huge thing hanging over their head and the crises accelerate trends and the trends going into this crisis was cord cut that will only accelerate coming out of this. I think even more significantly in terms of what these other service other companies have to deal with, is what you would have expected during this crisis is ratings for broadcast and cable would surge. Outside of news channels, instead what you have found is youre still seeing yearoveryear declines for the most part on the broadcast and cable and. Primetime entertainment side even nickolodeon with kids locked up at home is showing 20 declines when you have to manage through that, when netflix has none of that to deal with and only going to benefit by the acceleration of these trends coming out of it i think its just going open up even more significantly the other services what about these services that are relying on at least some form of advertising the youre looking at a down turns recession, advertising is the first place to get hit as businesses look at place where they can cut expenses. Forex pedia their budget normally last year for advertising was 5 billion this year less than a billion. That will be playing out in a lot of places. Do those Companies Need to be more patient and wait for those contiguous dollars to return yeah. Advertising will return. But it isnt all going return right away and thats another advantage for netflix. Look advertising rates are going to come way down your Parent Company has to think about what does it do to resell in a very weak scattered market, all that olympic material what was going be promotion for peacock and a lot of other things netflix if it maintains its Current Marketing spend will only get more advertising for the dollar that can accelerate it while those other companies are dealing with huge dips in advertising which is likely going to continue for some significant period i think the bigger issue, though, is that i think it becomes clear that original programming is whats going to distinguish services and the 15 billion budget probably growing in the next few years to 20 billion budget, the majority of which is geared towards originals is just an advantage that nobody is going to be able to touch netflix with. And its growth in subs, when you think about it, people say well coming out of this, its uncertain if netflix will continue its growth because it may have just pulled forward a lot of subs. Thats the other piece about netflix. It was chewing up too much cash wean it ever get to ash break even pulling forward subs means is youre pulling forward revenue that helps you get to cash break even sooner. And i think maybe the most unnoticed thing about this quarter was that they actually had a cash positive quarter that on the call they said was not related to covid, meaning not related to just having production stoppage. Which is a real indication that this thing is on a trajectory towards cash break even. Obviously when production resumes they will have a lot more cash expenditure and dip into the hole again. But pulling forward subs is actually a good thing for that cash store right tom, its good to see you. Thank you for your time and well talk with you soon thanks for having me, becky great to see you andrew meantime i want to get over to cnbc headquarters with jim cramer joins us. We had a number of Earnings Report we talked about netflix. At t on the other end of it. Chipotle i dont know how much were supposed to take away from any of it, jim its so funny interesting daytoday we had good ones last night. People getting excited chipotle was incredible. Netflix was amazing. I say these in the context of companies themselves are very cautious but they are in a sweet spot of whats going on in this new economy. I call it new economy because too many people think well go back to old economy. Texas instruments, there they go look this is not a 2008 playbook changeup chip doing a playbook that they had food borne illness not that long ago. Netflix fright the playbook you cant go the movies. These are companies that are all beneficiary. Kimberlyclark, number that kimberly hasnt had, i dont know how many years you go back. This is the new economy. Not just pantry stock. People have to start getting used to the idea that there are companies that are uniquely suited for this particular moment like the introverted companies, so to speak then others that are terrible. You start realizing the good one, you can under why the market can bounce. It can bounce thats what i was going ask you. Look at where we are i saw you tweeting about the idea of reopening like in places like georgia and i get your skepticism about some of that im trying to figure out sort of, to me what was looking at some of the comments youre making about how quickly we may or may not be able to rebound. But at the same time think about the market bouncing. Look at some of the companies we talked about. Lockheed martin. Good cash flow nothing to do with the situation. Yesterday cocacola, that did have something to do with the situation. That hurt the market ibm said some things they dropped the bomb on the call when i did my interview with the ceo look the business got bad at the end of the quarter darden did a big Equity Offering it could work. Some stocks are down too much. Other stocks are very exciting here then theres this huge percentage of companies that just dont do well in these environments and then theres the oil stocks which are in a quandry because the Financial Markets are driving down much quicker. Not unlike the retail terrifies Financial Market and, of course, the covid market are driving the retailers down to the point where macys is looking for 5 billion. There are two markets here you got that retail chart up now. Those are the ones first ones are the ones that have finance second ones with the exception of home depot need the finance if you have a great Balance Sheet like chipotle this is your time it is just a great time. But it happens to be that all of the great managers, andrew, they are under confident and they play like they are not going to win. Netflix and chipotle, they are just humble. Humb humble jim cramer, thank you. Well see you. I know you got the ceo of delta coming up on your show we got your former partner in just a couple of minutes, mr. Larry kudlow tell him i said hi horsepower we will see you in a couple of minutes National Economic Council Director now larry kudlow will be on talking about the replenishing of the government Small Business paycheck ayotection program st tune. You dont want to miss this conversation youre watching squawk box on cnbc welcome back to box weve been watching the futures. After two days in a row of declines this morning were looking at some green arrows futures are up by 360 points s p futures up by 45 nasdaq up by 156 andrew meantime tyson foods indefinitely suspending operations at its waterloo, iowa pork plant this week this is the companys largest pork plant and already been running at reduced production levels due to worker absent apolo absenteeism. Workers will continue to be paid during the closure tyson said workers will invited to come to the plant for could vivid testing later this week. Joe . Yeah, andrew if you feel sick and work at a meat plant stay home by all means. Thats one of the scary things coming up National Economic counsel director larry kudlow on nearly 500 billion ground floor Coronavirus Relief bill making its way through congress and then coming up, on Dawsons Creek no, no. Thats actually evan spiegel if this doesnt work out this hold snap thing he definitely would have a future. Look at him. Saw aeyll be on qukll another 11 00 a. M. Stay tuned, squawk box coming right back i dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. Now offering zero commissions on online trades. We charge you less so you have more to invest. People know aflac. Aflac . But not what they do. So were answering their questions. Aflac is auto insurance, right . No. Uh uh. Is it Homeowners Insurance . No. Uhuhuhuh is it duck insurance . Nope. Ahhh do they pay me money directly when i get sick or injured . Yeah. Aflac you got it. You know aflac boom get help with Expenses Health insurance doesnt cover. Get to know us at. Aflac dot com. A new cnbc state of play poll out this morning on coronavirus. 53 of republicans rate their own states virus response as too aggressive only 3 of democrats say the same thing joining us now to talk about reopening the economy and helping Small Business, Larry Kudlow National Council Economic director larry its good to have you on this morning we saw the additional ppp funds being okayed and you wonder how long those will last they only last so long until reopen, larry, thats one of the reasons that it seems like something that we need do at least attempt in some small way if its possible to do it safely i think thats right, joe this thing is a bridge until we reopen the economy, hopefully, maybe i should say prayerfully in a couple of weeks the reopening is so important i mean the data itself, and i might add that all the Health Guidelines and the road maps for governors and mayors are based on the data, but the infection rates have come down significantly, mortality rates have come down significantly so we may be coming down the homestretch, perhaps may will be a transition month and an economic opening across the country. It will to be done in phases as you know here we have the Small Business loans, the payroll purchasing the program to keep us going another 320 billion for that program. Last one went out like hot cakes. Southeast numbers coming from sba suggest we may have served 30 million jobs. Of course Unemployment Insurance and weve also had direct check the treasury were just doing our best to keep things afloat and be a bridge until the economy can recover. Larry, youre always an optimist, very optimistic. I am, too, so to set up something that might elicit more information from you, ill let andrew in. Andrew, youre worried about the economy ever being anything close to normal again. I know you want to get in and talk to larry about that probably i want to ask larry two questions. The biggest question, given that these loans hopefully will get out the door to the Small Businesses that need them, you talk to a lot of bankers who already processed a lot of loans that havent gotten into the system, the question is whether you think enough of that money will get to the smallest businesses that need it the most right now given that there are Larger Companies already processed through the system that may get to the front of the line this time around. What are you doing how should the public think about that issue right now look, its a good point its an important point. Inside this new tranche, theres a pretty significant effort to Canvas Community banks and Community Development and i think that that may help, andrew look, i think in the main, smaller businesses and Smaller Banks were the leaders i know there were controversial cases. Gigantic programs like this put together quickly will always have glitches. But in the main, i think the process worked very, very well look, we will judge this well see how this new tranche works. Well see what the demand is it was overwhelming for the first tranche. I expect it to be significant for the second tranche well see. Were always making adjustments wherever necessary always trying to be totally fair as possible in allocating this but i think on the whole it worked pretty darn well. For the first months and days, probably 10, 12 days, the biggest lenders were the Small Community banks. You have to believe theyre going into small local businesses i think it worked pretty darn well larry, one other question about reopening. You have some governors moving aggressively to reopen, others are taking their time, all hopefully being counselled by Health Experts william barr said in the last 48 hours that the justice dnt m department may join in lawsuits against states that dont open fast enough. Do you think thats appropriate . The attorney general is a brilliant guy. Yes, i think its appropriate for the Justice Department to monitor this i think hes looking at it in terms of individual rights, and i think its something that needs to be assessed as we move forward. Bear in mind, again, we put out these Health Guidelines i guess about a week ago theyre data driven. You have to have a downward adjustment period within 14 days, you must observe you must observe the health and safety features that are so vital. Health, security and wellbeing comes first. President trump said that many times and continues to say it. So there has to be but the president also made comments in the past 48 hours, 72 hours effectively almost against government he is sending out these tweets saying liberate certain states hes supporting protesters that are protesting against the government against the steps that the administration is even made public. Its very hard to understand that well, i dont know. I dont think its that hard, andrew i think the president s point is that certain states are ready to move they meet the guidelines of testing, they meet the guidelines of hospitalization capacity, they meet the guidelines of social distancing, and they have numbers that show flat and declining infection rates. So, some states will go faster than others. This whole thing will be phased in over a period of time i think in the month of may, that will be the transition. Some states may move earlier than may, good for them if theyre ready. Some states will take longer you have hot spots in new york and elsewhere, chicago may take longer but i think that if there is Popular Support inside states, if it meets the health and safety criteria, then they will be ready to go larry, i heard the president speaking the other night saying that the administration is considering making businesses not liable if customers or employees get sick once they get back to work again if thats the case, how do you ensure that businesses wont skimp on things like making sure the health and safety situations are front and center and that those are the most important issues becky, im sorry, i missed part of that what was liable . Well, there are discussions, the president said, about potentially saying businesses wouldnt be liable or held liable if their customers or employees get sick when they come back. If thats the case, how do you make sure the Safety Standards are still being met and held so stringently . Well, look, theres a couple of things there. First of all, Safety Standards will be met there will be constant monitoring state by state. I think the states do a very good job they have a lot of confidence in the states and the cities. Ive been on the Conference Calls with governors and mayors. I have confidence in that. Thats point number one. Point number two, a point that is very important here regarding safeguarding, guardrailing Liability Insurance lawsuits, which i am quite concerned about. There was a good editorial in the wall street journal today about this subject businesses, particularly Small Businesses that dont have massive resources, should not be held liable should not be held to trial lawyers putting on false lawsuits that will probably be thrown out of court. You have to give the businesses some confidence here that if something happens, it may not be their fault the disease is an Infectious Disease if something happens, you cant take them out of business. You cant throw big lawsuits at them i think liability reforms and safeguards will be very important part of this some of this we can do probably on a regulatory basis. Part of it may require some additional legislation but thats a very important point here someone has to defend the businesses larry, oil suddenly jumped, the market is now up over 400. Comment on oil i dont know whether this is a delayed reaction the president tweeted something about iran suddenly oil is up 15 and the market seems to be responding. I guess they go in sync now. What do you make of oil, larry youre an economics guy. What happened there . Demand collapsed, joe the coronavirus worldwide caused a collapse in demand through no fault of anybodys, this virus has pushed us into a big Economic Contraction i think in the United States, rig count is down. Demand is way down production is falling. Not much we can do about that. The president asked us to look at potential forms of assistance we have a number of options, nothing has been decided yet theres a lot of deflation out there as we go through this contraction. My own view is well come out of this season. The economy will reopen. The economy will restart well propose regulatory tax and Investment Policies to help out as best we can we want to reward work, businesses, effort im hoping this oil slump will prove to be temporary. Not many people are driving right now, as you well know. Theres a glut of oil. Markets will take care of themselveses over time when we saw the trump tweet about iran, i was like, wow, in normal times this would have mattered it didnt happen right away, but thank you for being with us this morning. Well be paying attention. The task force at night i watch it to keep informed. Stay well you stay well, too. A final check on the markets oil jumped futures are up 400 points, but we lost more than 1,100 the last couple of sessions join us tomorrow squawk on the street is next welcome to squawk on the street. Im Carl Quintanilla with jim cramer from various locations. David faber has the morning off. Deltas ed bastian will join us in a few moments stocks are looking for a bounce as the senate sends a package to the house. Decent earnings from netflix, snapchat, chipotle, texan and others are overshadowing the 21year low in Brent Crude Oil as joe and kudlow were saying, a bit of a bounce