The nasdaq up about four points. Yields firmed up a little. You can see the 10year, as equities came up, the 10year about 0. 624 all of this as Energy Prices got stronger the june contract up about 13 now trading at 15. 68. Hard to believe that is a strong level. 15 a barrel is pretty strong for oil when they were paying people to take it from them earlier this week. Time for the squawk planner is it . It is yours, joe. Getting to closely watched jobless numbers. More than 4. 3 million americans are expected to have filed for jobless claims that number rose on the earnings front, well hear from eli lily, blackstone, dominos. Well see if dominos has the same type of positive numbers like chipolte. Nobody eats at dominos intel is reporting after todays close. Now, andrew. Now. You were eager this better be good. You know, im just doing the update on the pandemic numbers as we do every morning it is not good it is not good global cases have risen to 2. 6 million. U. S. Cases 842,000 with 263,000 coming from new york state other hot spots include new jersey with 95,000 cases and massachusetts, which we havent talked enough about recently with nearly 43,000 cases which well probably bring you numbers from georgia and other states. Eurozone hit another record low dropping to 13. 5 in april. Anything below 50 represents a contraction in manufacturing Credit Suisse set aside nearly 585 million tyson foods suspending operation a a Processing Plant in north indiana after 400 employees tested positive for coronavirus. Indefinitely suspended operations at an iowa plant after 180 infections were linked to that plant much tough news and challenging news when it comes to the supply chain issues also, two house cats have become the first pets in the country to test positive for the coronavirus. Both in new york state in different areas. They are expected to make a full recovery experts say animals can catch it from humans but little risk humans can catch it from their pets we heard stories about the lions in the bronx zoo this tested positive and in china, some testing on transmission from humans to pets no idea why it does not go for pets to humans lions i thought it was tigers. I had tiger king on the brain. Other news to bring you, private equity firm Sycamore Partners wants to scrap the plan to the victorias secret deal they argue the decision by Parent Company l brands to close stores in march, furlough employees and skip rent payments l brands is contesting that lawsuit and will continue to work towards closing the deal. Youll hear more about the mac clause, material adverse claims. Companies say, you know what, we dont want to do this deal anymore. Some contracts have the phrase or the word pandemic in them the mac clause is the claim. This is going to be weird this one specifically said the deal would not be undone by things like a pandemic this will be a more difficult case to try and argue. L brands will come back and say we had no choice but to close our stores we were ordered to do that the malls shut down where those stores exist you are right. Well see a lot of these things happening. Yesterday, there is a Kuwait Company that is suing boeing for not doing delivery and not giving back the money. They want the 366 million they put down on the 737 max because it hadnt been delivered over a year they were able to say, forget it but they still havent gotten their money back not the same thing because boeing has their own issues but you are going to see deals like this blow up all over the place. Fascinating to watch. Not fascinating for everybody involved we have more ahead, President Trump taking issue with parts of georgias plan to begin reopening. Well show you who he said next. Take a look at shares of boeing. Becky just mentioned, dave calhoun marking 100 days as ceo. Taking over already in crisis over the 737 max now compounded by the travel demand more only coming up in the 7 00 hour who could have imagined he was walking into this. More when we come back in a moment 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 georgia planning to reopen some businesses on friday the Lieutenant Governor there speaking on wednesday. The steps we are taking are very incremental measured steps. We continue to look and analyze different sources of data an analysts one of the most important pieces that governor kemp, his administration and our team have looked at is the Resources Available at hospitals around the state. Georgias plan getting push back from President Trump at yesterdays White House Briefing i told the governor of georgia, brian kemp, that i disagree strongly with his decision to reopen certain facilities which are in violations of the guidelines for the incredible people of georgia. But at the same time, he must do what he thinks is right. I want him to do what he thinks is right i disagree with what hes doing. I wa i want the governors to do what they think they should do. If i see something egregious now spas, beauty shops, salons in phase one is too soon it is just too soon. For more on reopening the economy and states responses, the senior policy administrator, he worked on the Ebola Response in the obama administration. Good morning talk to us about what you think should be the right time line for reopening and what steps do you think are necessary before we do it i think the issue about reopening is less about the time line and more about the data and the capabilities and protections that are in place. I was glad and relieved to see the president yesterday push back on georgia. The administration, the doctor had been asked about that and failed to do so. Im glad they updated their comments the federal guidelines are far too vague. What we need to see is not just sustained declines in transmission we need to see a small level of transmission sustained over a period of time combined with the ability to do widespread testing and every contact or close to that. A much more readiness in the hospital system. What is more striking about the comments in georgia, they dont talk about that data or in specific terms where they are and what is driving that assessment i think they are making their own mistake. We keep hearing all sorts of testing that is possible or about to become available as well as efforts of tracing weve heard less on the tracing side where do you think we are in terms of testing how quickly can we get to scale . How quickly can we do tracing and tracing properly im not putting any stock in reports on what may be coming until we actually see it come on line and actually work we have been hearing about miracles are soon to arrive on testing. Weve been hearing that more than a month it has been more than a month since that rose garden event promising great things which still has not materialized we are stuck at the level around 150,000, 160,000 tests per day weve been there for weeks havent budged meanwhile, the case count is increasing until testing begins to come on line at scale, we are not ready to reopen because we dont really know how many cases there are. Not in georgia or anywhere else. What about the Contact Tracing . You need the tests first, where do we stand there . Companies like apple and google have started to talk about Building Systems into their phones is the system ready for that i think we could be the technology would be a great addition Contact Tracing comes down to humans people calling to people calling other people you talk to the person infected, call all their contacts and let them know they need to be quarantined and theyve been exposed. Technology can help with that and bring that to scale. What we need to do to bring that to scale more than technology is people we need a federal level effort on that. The states are doing good work unless we have a consistent federal level on that, we wont get to where we need to be i hear from Business People every day who say, look, we just cant survive. We cannot survive this if we are going to wait and wait and wait for all the testing, all of the tracing efforts you may well be talking about. Can we come up with the system approach where we have social distancing and people over the age of 65 and anybody who has symptoms or is predisposed to the virus that they stay home and stay quarantined do you think thats not a real strategy thats not viable i think well find ourselves back very soon sweden has tried a variation of that theyve seen a higher death count than some neighbors here in the u. S i dont think thats a viable strategy it is a little like being trapped in a Burning House without any water available. If you open the windows, youll feed the flames. If you keep them closed, youll suffocate. We need something we can do. We need contact testing. The lack of that coming forward faster is hurting us now the president has been insistent to kicking these matters to the states the states can implement it but they cant do it all on their own. Thats where the pressure needs to be. Once we do get to the other side of this what im worried about, the way you are speaking, you are thinking there will be a reinfection rate where well be back to square one hopefully thats not the case. What does the other side of this look like to you it looks like a very, very different america for the next two or three years two or three years . Yes assuming we get to the point where there is a successful vaccine. We are hoping for that if that comes on line in lets say next february or march that the candidate is confirmed and it is effective, we have to produce it that will take time. We have to distribute and produce it that will take time. Go ahead do you have any hope. You talk to different scientists and investors all getting behind various drugs even before a we get to avaccine. There is a view if remdesivir can be put in a pill and if it works or other drugs like it if you could take off the table that if you got sick you would end up in a hospital and possibly die, it would change behavior and we could get back to a semblence of order. Is that right . I think therapies can help. I hope we find therapies will prove helpful. Im banking on that being a tool absolutely well get that cool more readily. Thats not a tool that prevents transmission that just brings down the death rate this is still a very severe disease. Even if you dont die, it can leave lasting damage not just in the old but in the young. I hope for that but i dont think we can count on that even if we have that, we are still not going to go back to the life we were living before well still have to have restrictions large gatherings, sporting events will have to be restricted schools and kids. If kids cant go to school, it is hard for adults to go to work one of the issues is how do you do social distancing, quote unquote at school or get kids under the age of 12 to be disciplined enough to wear masks and wash hands what is your expectation for the fall a as a parent for a couple of nineyearolds, i am concerned i think we need to learn more about how transmissible it is in children and see if there are ways to enforce better distancing in schools. What we know is that most of the most super spreading events is a group of people in an enclosed space together where people are close to each other. I dont know what the future looks like on that yet im hoping for the country and my own hose hold, i hope there can be some sort of accommodation in the fall. Thank you stay safe and healthy out there. Thank you becky when we come back, earnings news will bring you some numbers from a major casino operator much of the gaming industry is now completely shut down as we head to a break, lets take a look at some images of the outbreak across america. Time now for the executive edge well start with some earnings Las Vegas Sands actually we are not. Las vegas sands reported a loss. Not earnings the casino operator expects business in asia to pick up early summer or fall saying there is a lot of pent up demand for gambling. Tell me about it xilinx didnt issue fullyear guidance but quarterly revenue came in way below expectations the company also raised its dividend even when i bet on russian table tennis, i should do the opposite of what ive noticed almost like consensus with the stock market i should go to the other guy sometimes i think im going to do that and by doing that, im doing what i would normally do and then im back to being wrong again. Joe, the rest of us noticed, whenever you pick a team, you stay away. Like the bangles when you start picking teams we like, that had the rest of us worried. Stay away from the eagles. I will. And defabo the steelers that too. Zoom says it is upgrading the encryption on its app to better protect against tampering as a growing list of agencies and Companies Including tesla, daimler and bank of america are reportedly advising against concerns stocks have been on a quarterly tear as people are wondering what is happening with the encryption situation that is giving our producer here ideas you cant get decent information from six people. You cant. You need like eight. Pretty soon, andrew, well have 40 just put them all there at once let them all talk at the same time get it out of the way. Anyway, coming up, eli lily just reporting. Well bring you all the numbers on that reporting. Plus crude prices are rising this morning we have that going well talk to a ceo of a major Tanker Company thats coming up these days, its anything but business as usual. Thats why working together is more important than ever. At t is committed to keeping you connected. So you can keep your patients cared for. Your customers served. Your students inspired. And your employees closer than ever. Our network is resilient. Our people are strong. Our job is to keep your business connected. Its what weve always done. Its what well always do. Good morning welcome back to squawk box. We have some breaking news just out from target. This is the retailer that has done very well it has been open and seen as an essential place of business. It is giving guidance about what it has seen recently we heard about a month ago, now saying quarter to date, their comps are up just over 7 . As theyve seen a slight decline but the digital channel sales up over 100 . You are continuing to see the change taking place for how shoppers are shopping. Theyve stopped going to the stores as much they have been using the Digital Channels there strongly. Gains over 100 . The company withdrew their quarterly guidance a month ago they are saying now because of what is happening and what they are doing in terms of pay and benefits theyll maintain the 2 an hour increase in pay that they had put forth for associates through the end of may because of that. Because of investments and the shift where people arent buying apparel as much and accessories and that tends to be a higher margin business, they are buying things less high margin. Because of that, they inspect it to reduce the First Quarter margin rate. Not off far from what they inspect to earn but giving us great guidance about what they are seeing in terms of sales and as a result of some of knees things more coming up with Brian Cornell. Joe . Getting back some of last weeks losses in oil still problems in the Energy Sector no demand because people are stuck at home. Also with no place to go is the oil itself traders are on edge because there may not be enough room on oil tanks. The ceo of International Sea ways arent you full . Are you able to charge more to store . Good morning, joe we are not full in the sense that, you know, lets use very large crude carriers that each hold 2 Million Barrels about 100 of these vessels are deployed around the world. Thats about 2 billion barrels and a similar number of suez that hold a similar amount of there is a lot more capacity at sea that can be put to work storing for customers. That sounds like the solution what is the problem . How do we get to that point . We are a part of the solution as there is excess supply and the demand hit the coronavirus wall and dropped off all around the world, there are various producers looking for storage. Particularly, if you are landlocked that could cause you to do shut ins. First area of shut ins are canadian tar sands we have seen a steady inquiry from customers to store oil on our ships. Now in addition to the crude carriers, you are seeing that happen on the product tankers. We have 13 of these vlcs and smaller number of refinery vessels. Because they have been ramped down, now you are seeing products, jet fuel and other things being stored on these vessels. We are seen across the industry and our prices are high as a result do you think this will be reflected in your results . It doesnt seem like a good time for Anything Energy related. You can flourish in an environment like this because rates actually go up it seems bad for people that have nowhere to put the oil. They have to pay more to just store it i think the entire Energy Complex is seeking a balance they are ramping down. On the other side, you are seeing china open up they are about eight weeks ahead of us. What we want to see ultimately is Strong Demand we had good fundamentals going into the year. We dont have a big order book of new builds coming into our fleet. With he were shaped up in a nice position oil tankers play a big role of that right now the very cheap oil today and much more Expensive Oil further out actually pays for the customers to go ahead and store the oil. So it is not they are able to lock in those profits on paper and it does a terrible disadvantage to them do you think well mess this up and convert too many of these ships so when we need them for transport, theyll be unable to do that . Well be converting them back to transport ships . Yes when you say convert, joe. It simply means the same load, you might be waiting off singapore or the gulf waiting for discharge. When the demand gets there and is restored, there will be an incentive for them to produce these. For us, it is a time when we are able on one of our vlcs, say you were able to secure a time charter at 80,000 a day and you are below 25, if you earn that a year, can you add 20 million to your bottom line it is a period of prosperity for our ship owners and a critical piece of the solution for facilitating as Oil Companies decide to ramp up their production and to shut in their fields. That wasnt one of yours some st. Simon that flipped over . I gota good look at that no. Thank you, joe we are good. There were actually cars in that they had no idea how to get that it may still be there. Anyway, maybe well have some cruise ships ready you can buy a few of those i dont think theyll be using those to cruise around anymore hopefully that industry will come back. Time. In time it will. I think many, many businesses are being very challenged. This is an abrupt demand falloff. I think thats why everybody in logistics is having challenges stocks indicated higher today. Thank you. Andrew when we come back here on squawk box, more on the target news that just crossed the wires on sales trends. Well talk to the companys Ceo Brian Cornell in a few minutes target shares down marginally. You can watch or listen to us live any time. Can you do it right now on the cnbc app well be back after this 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. The best entertainment experience. S xfinity x1. Welcome back u. S. Equity futures are in the red. When we began the show last night after 6 00 p. M. , earnings just out for eli lily earning 1 1. 75 a share well above estimates of 1. 48 the outbreak boosted worldwide revenue according to lily. David ricks will join us later this morning target out with news how shopping trends have changed and what that means for their bottom line. Well talk to the Ceo Brian Cornell next here on cnbc. Good morning welcome back to squawk box. Target just out with some news that stock is up after the company said samestore sales increased to date. Samestore sales were down slightly but comps were higher because Digital Sales were up more than 100 something nobody could have predicted. Joining us now on the phone. First on cnbc is target Ceo Brian Cornell. Have you ever seen anything like this quarter you just experienced . Caller it is an unprecedented quarter. We have been tracking Consumer Behavior weve been talking about the different chapters weve seen. Back in february, which seems like a long time ago now it was a normal shopping month for target guests. We topped up just short of 4 . At the end of the month, we saw that big stockup occur as consumers started to buy up. We saw categories like food and beverage and households go up as much as 40 . Then as weve gotten into april, weve heard from officials that it is best to minimize time in physical locations, we saw huge spike in digital comps in april alone, our digital growth is up over 275 weve just seen cyber monday occur almost every day but the volume is twice the size of a normal cyber monday. As we are sheltering at home, we are relying on digital fulfillment. In order pick up, drivup and shipt shoppers are really meeting the needs of americans across the country right now brian, trying to keep up with the changing pace of Shopping Habits cant be easy or cheap. Not to mention you are trying to protect your associates. Part of this announcement is that you are extending that 2 an hour increase through the end of may thats going to cost you in terms of the operating margin. I think you said that operating margin will be hurt by about 5 by some of those things . Caller the first thing weve been doing is making sure we are supporting our team. Focused on team safety the key announcement this morning is that we will extend 2 an hour pay increase for all of our front line teams in stores and supply chains until july 30th well continue to provide free backup care which is critically important and well continue to offer paid leave to any of our team members who are 65 or older, pregnant, or who have any underlying medical conditions. So this is an extension of the 300 milli 300 million benefit wo wages and bonuses back in march. We think the most important investment we can make right now is in our team, making sure theyre safe, theyre well taken care of during this crisis as they provide these essential Front Line Services to millions of guests across the country so well continue to make sure we prioritize supporting our team as they support guests across the country during this time of need hey, brian, whats happening in terms of watching how you operate in 50 different states that are now going to be taking different talk tacts does that change the way you are going to be operating within the stores becky, throughout the pandemic we recognize we have to be really agile, really flexible, continue to adjust ive personally been involved with the administration in washington ive been on the phone this week with different governors were trying to make sure we can anticipate the different changes were going to see market by market, but as weve seen, our teams have got to be really agile. We have to flex as things change but most importantly were focusing on doing the right thing for the team, right things for the guests market by market and clearly were seeing the guests turn to target during this time of need and sales increases and thats equating to market share gains that i think will benefit the brand for years to come. But its all about making sure we focus on our team, we focus on taking care of the guests and we adjust to the changing Market Conditions and shopping conditions weve seen throughout the quarter. On that point though we have heard about some employees who are concerned, not necessarily with the steps that target has taken, but with the steps that customers are following, whether theyre following the rules when they come in there have been some employees from target and other places, too, i think that said they are going to go on strike may 1st because theyre upset with the way some of this has been followed some of the rules have been followed by customers and are concerned about their safety as a result how many employees have said Something Like this and what are you doing as a result . Becky, we always want to hear from our teams and understand the pressures theyre facing i can tell you from hearing from thousands and thousands of team members across the country, they take great pride in the work were doing. They recognize how important it is that we have stayed open during this crisis, that were providing access to the medication, the household essentials, the food and beverages that our customers need if you were to talk to a broad group of target team members, theyre proud of the work theyre doing, they feel as if theyve made a real difference during this crisis so we always want to hear from key members and certainly we understand that market by market theres different behavior were seeing from the guests thats why weve worked with local officials to make sure that theres really Clear Communication as far as how we want sit sense across the country to be shopping and reacting. Brian, you withdrew your guidance that the company had issued back on march 25th because it was too hard to see how this was going to play out obviously shoppers trends are still changing pretty rapidly. What can you see right now what would you feel comfortable with doing i realize youre not putting out guidance how lasting are the shifts of shoppers going to digital in terms of not going into stores becky, were spending a lot of time to understand how the pandemic is going to change. The future of how american shoppers shop, live, work, the things that they value, but its been really hard to predict week by week. You and i talked 30 days ago if i would have told you back then that our overall business in april would grow north of 5 but that our Digital Business would grow by 275 , we would never have anticipated that. Were going to watch Consumer Behavior in the trends there are certain things we expect will continue i think some of the target guests who have discovered how easy it is to place an order online, come to our stores and pick it up or who have discovered the ease and convenience of using our driveup facilities where you place an order, you pull into our parking lot, we put it into your trunk in two minutes or less, no contact with the guest, and they drive home, or theyve discovered the benefit of a ship shopper who shops for them, rings the doorbell and leaves that shopping trip on their front door, those are things i think were going to see that are going to continue after the pandemic i think were also going to see, you know, guests consolidate their shopping thats one of the great benefits of our brand and our portfolio is we have this unique multicategory portfolio while were not seeing a lot of apparel shopping, that will grow in the future. You can shop for your home, get office supplies, games for your kids, electronics you need for your office as well as household essentials, medication, food and beverage i certainly think that Going Forward for the foreseeable future, consumers are going to take advantage of that one stop shop so the combination of our physical proximity, the great in store experience we provide and this suite of simple fulfillment options that in most cases are available within the same day, we think that the trend is going to continue over time and will benefit our brand. Hey, brian, were just about out of time. Its worth pointing out that even though the Digital Sales are so strong, the stores play a key role in that the stores are responsible for fulfilling 80 of the orders they are. The stores have been the heroes. Everything in our strategy starts with our stores again, even during the pandemic, consumers and our guests are still utilizing our stores thats where the majority of the sales are coming from. Our stores fulfill those order pickups. In the driveup, theyre out there putting that order in your trunk. Our ship shoppers come to our stores to pick up the items and bring it to your home. Everything evolves in our stores throughout the pandemic, we have to invest in our team. Theyre the hub of the team. Theyre servicing the guest. Theyre driving the market share in what were seeing and theyre the heroes were going to take care of throughout the pandemic. Brian, thank you so much for your time. Chairman and ceo of target thank you. Okay, beck. Coming up, were going to get you ready for todays big jobs number. Claims number. Filings expected to rise by 4. 3 million. Plus, were going to talk about boeing as dave calhoun marks his first 100 days it says as crisis ceo. Rsrisis ciis. I think he would say crises. Squawk box coming right back investors watching oil prices and bracing for jobless claims well talk markets and what you can expect from todays data straight ahead. Plus, eli lillys response to the covid19 outbreak the companys ceo joins us to talk about the latest from the front lines and the companys quarterly results. And then dr. Scott gottleib will join us with an update on the pandemic and georgias plan to reopen. The second hour of squawk box begins right now good morning, welcome to quack box right here on cnbc im Andrew Ross Sorkin along with becky quick and joe kernen. Lets take a quick look at u. S. Equity futures we were in the green marginally before weve now moved marginally into the red this morning were going to keep our eyes on all of it. Crude though coming back a little bit have some Corporate News joe . Yes, we do. Corporate news this morning. Eli lilly earned 1. 75 a share beating the consensus estimate of 1. 48 believe that chart revenue also came in above estimates. The covid19 outbreak boosted worldwide revenue by 250 million. How did that happen . Were going to talk to david ricks about that it has to do with wholesalers worrying about supplies of drugs and ramping up some purchases near term. Not necessarily any of the drugs being used at this point for covid19, although there are some drugs already out there that the company has, antiinflammatory, rum rheumatoid or right there tis drugs. Some of these might work ill ask david ricks whether some of these are being tested for covid19 may already be off label uses. Private equity firmblackstone just out with numbers, distributable numbers came in at 46 cents a share compared to a consensus of 50 cents. Total distributable earnings did rise 4 from last year blackstone saw 27 of in flows eearning assets under management jumped 20 jon gray will join us in 15 minutes. Unilever withdrawing its full year forecast due to uncertainty. Consumer products giant said it would pay its Quarterly Dividend as planned becky, you had your exclusive interview with Brian Cornell, congrats thats our exclusive. First on cnbc. He was here with us talking about it. Dont sell yourself short lets talk about that news out of target this morning target said same store sales were up by more than 7 in the First Quarter, but stores sales the sales within the stores themselves were actually down these were Comp Store Sales that included Digital Sales Digital Sales more than doubled. Ceo Brian Cornell joined us just a few minutes ago. We saw a huge spike in digital comps. Were up over 100 in april alone our digital growth is over 275 and weve just seen cyber monday occur almost every day except the volume is twice the size that weve normally seen even on a cyber monday peak. Clearly Consumer Shopping patterns have change. Now operating at a time like this doesnt come without expenses as well target said that its going to be extending that 2 an hour wage increase that it put in for its employees back in march, that it will be extending that all the way through the end of may. That and maybe not as much as the parl items their operating margins are going to decline by 5 its hard to say whats going to come brian said he thinks the trends in how consumers are shopping, what theyre getting used to are likely to stay well past covid19 he thinks theyre making market gains. A slide in demand for oil is keeping the broader markets on edge despite the bounce yesterday, investors are worried that contracts could fall back into negative territory joining us is dan jergen good to see you today. Thank you for joining us thank you. What do you think about where oil stands today big jump back up, above 16 a barrel is that something that seems like a fair price . Because weve bounced all over the place this week with that may contract. It certainly bounced back from the contract. I think this reflects more in the market its an anomaly. Its historic. The number one commodity, the most priced commodity is storage, not oil what we will see is cut backs as people adjust to the market. As you watch the cut backs in production, these are all things that take a little longer to work through i guess the big question is what happens first . Cut backs in demand and other markets open up, too how long do you think this plays out . This has been a big hit world demand could be down as much as 30 billion a day. When the world comes back slowly, demand will go up. People will start driving. What youre seeing is people in addition to the natural decline because of lower investment, people are actually shutting in production we think 2 Million Barrels a day will be shut in. Its real pressure on companies. The numbers are that the major e p have cut by 40 their budget so far this year one very important thing to keep an eye on is a Lending Program to these companies to keep in business that the Energy Secretary is working on which will be very important for maintaining these companies for when we come out of this crisis. What kind of damage do you think happens . Obviously the administration can roll out packages. What do you think we end up seeing i think when it shakes out well see enough for Smaller Companies to isappear. That will be one consequence i think budgets will be cut a lot. Much depends with the industry and the shutdown i think theres a lot of oil underwater looking for homes and we may see more official cuts by the producers. Remember the big deal negotiated almost two weeks ago, doesnt actually take place and it will go partway to relieving pressure. How do saudi arabia and russia fare as part of all of this at this point opec is not what opec used to be iran and venezuela which were pay the try triarchs patriarchs i think in some way theyre in a stronger basis the saudis have more cutting to do than the russians both of those countries have liquidity funds, sovereign wealth funds to roll up on its a big hit for both of them. Theyre dealing with the virus and it could affect operations in the oil industry itself. What are the unintended consequences or longterm consequences we havent thought through. One of the things were focused on is the question of investment theyll be tight Going Forward how much do they spend in terms of lets say Energy Transition and how much on their basic business so thats part of it we will see were going to come out of this with large inventories, much larger than 2014, 2015 those will have to be worked off. If you have low oil prices for a time, what does that do to the effort to move more electric cars into the market all right, dan. Good to see you. Thank you for your time today. Thank you coming up, as we told you, were going to tubing blackst , blackstop, blackstone futures down 26 points we didnt start the show with breaking news. Breaking news, stocks are stable 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. Shares of black stones are on the move this morning up after they had distributable earnings it did see 27 billion of in flows during the quarter and fee earning assets jumped 20 to a record high. Reporting an overall loss. You might imagine from covid joining us right now to discuss the companys numbers, its future investments and how hes seeing the world these days is john gray, president , chief operating officer of the Blackstone Group great to see you thanks for joining us this morning. We can talk about the earnings it was a great quarter it is a bit backward looking as well i want to talk about that. I want to try to talk about how youre seeing things Going Forward. To the extent that youre thinking about valuations and how you have to value the portfolio over what otherwise would have been a great quarter, how are you thinking about that . Well, it was an unprecedented quarter, andrew. Its great to be with you. Obviously markets went down a ton. Economies slowed you have to take a snapshot at that moment on march 30th, and that, of course, led to these writedowns fortunately for our investors, theyre unrealized now they reflect that moment had you taken that snapshot today with equities up, with debt markets recovering, it would have looked better the key thing for our investors is that we have the ability to hold assets over time. As you saw in 0809 with us, with hilton worldwide, we were able to mark it town a ton ultimately we made 14 billion that not every investment will feel like that. Each crisis is a little different, but the key about our Business Model is its built for an environment like this because we can hold assets through a storm and were certainly in one today. Let me ask you about your take on the storm as it is because you also have 152 billion in dry powder and i imagine there may be opportunities that come your way. Yeah. You know, that is the key thing about the building, not only hold our job but we have a huge amount of capital to deploy. Were looking at an environment where asset prices have fallen a lot. Initially the focus is going to be on dislocation and we actually will announce this on our call today deploying 11 billion at debt in a discount and public equities. Thats where the first center of action is. Then well move next to some of the rescue financing transactions weve looked at a number of those. You saw one this week done in expedia. There was one done with airbnb were spending a lot of time in that area. More traditional transactions should come. I do think its important to remember that you need some patience, that these challenges in the economy take time to develop. We have to be thoughtful weve got to make sure we underwrite a slow recovery and so were very disciplined in putting this money out, but when we see great businesses and we can invest in attracting prices, well put out the capital. To the degree youre thinking about your own Portfolio Companies and their operations and youre thinking about potential investments in the future, what is your time line when you do your monday morning meeting and talk about how long you think this challenge is going to be extended for, what the economy looks like 12 months, 18 months from now, whats the view . Its something i know we and everybody else is spending a lot of time on i think were not in it. The nike swoosh. For this virus right now its going to take time. The good news is we seem to be over the hump in terms of the peak in most of the u. S. And europe and so parts of the economy will start to reopen but it will happen gradually consumers have lost savings, businesses have been hurt. Purchases and durable goods. That takes time. Ultimately as weve seen, things do recover the key thing as an investor is to be thoughtful in where you deploy capital and where youre investing in things that have some resilience in case this takes time the up side, of course, is this comes back quicker the real estate and i know you own a ton of real estate as well, blackstone does. What are tenants doing are you getting the rent paid . Our state is in terrific shape because its really oriented towards the best sectors. The logistics and benefitting. What i say today is in apartments, office buildings, logistics where the vast majority of our holdings are, we are collecting rents i would say on average theyre down 5 to 8 for april so there is some hit, but not dramatic. If you look in the retail space where we have relatively small holdings, about 6 or 7 , thats where youve seen obviously much more in the way of tenants not paying rent. Thats a much more challenged sector, particularly the closed malls. The hotels, of course, are closed to date most tenants are paying. People want to make sure they pay the rent in their apartments and keep businesses going, so i think it is more resilient than people expected. When you look out farther, could you ever see yourself getting into retail . I mean, buying a lot of retail given that theres a huge question about what the future of those Companies Look ike . You know, i would say it depends geographically we have done a little more Retail Investing in some of the emerging markets in the u. S. The grocery centers, i would say its a little more convenience oriented the mall business has challenges so thats probably a tough one for us when were thinking about investing, were looking at businesses that are cyclically depressed, not sort of secularly challenged and so i think more of the hotel, travel leisure businesses which we think will ultimately recover, thats easier retail faces some headwinds. This crisis unfortunately has probably accelerated some of those trends. Whats the impact in terms of what the Federal Reserve has done to prop up the high yield market how has that helped you and what do you see the impact of that being and what other steps do you think the government may or may not take so i think the fed, along with the fiscal policies, have been very helpful. Weve had this enormous shock to the economy. Initially markets see stuff and were not functioning, and by the fed moving in, providing liquidity, that provided a big difference weve seen a recovery in markets. A bunch of companies have been able to access those markets Carnival Cruise lines, a whole range of businesses because of that stability i think thats very helpful. I would guess that they buy Investment Grade or triple a you get a bad domino effect that we saw after the Great Depression at the beginning of 0809. Policy makers saw what happened then i think thats been very helpful in this crisis, and i give them really high marks for the speed that they responded with what do you say to the critics out there, there was a letter that dan lowe send to his investors saying the fed has perverted this market. The last people they should be helping is private equity and other industries that effectively relay on leverage and debt so i dont believe the fed is trying to help private equity. I think theyre trying to help American Consumers and businesses by lowering the cost of funds and increasing access to capital i think thats critically important. Youre seeing Central Banks around the world respond with a lot of accommodative policy. You know, the fact that Financial Firms may have debt and get a benefit, im not sure why thats bad for the system. What we want to see is a recovery as fast as possible and making it better for businesses to be able to borrow, meet their liabilities, not have a bad domino effect, i think thats really important so i disagree with that. Okay. Fair enough. Jon, always good to see you. Please stay healthy and safe congratulations on the quarter and good luck out there. Thank you, andrew take care. Appreciate it talk to you soon becky . All right. Thank you, andrew. When we come back, the coronavirus causing airlines and Leasing Companies to park thousands of planes, cancel orders and rethink their future plans. That pressure adding to boeings own issues with the 737 max and all of this colliding as a new ceo, david calhoun, takes the reins. Well take a closer look at the ceos first 100 days at the helm that comes after this break. Now for todays aflac trivia question in what year did eli lilly introduce its diebls drug to produce insulin identical to that of the human body the answer when squawk box continues. 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. 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. Now the answer to todays aflac trivia question. In what year did eli lilly introduce its diabetes drug to produce insulin identical to that produced by the human body . The answer, 1982 the drug humulin was the worlds first drug using recombinant dna technology. When dave calhoun took over as boeings ceo 100 days ago getting the 737 max back in the areas the companys biggest challenge. Then came the coronavirus. Phil lebeau joins us to look at the dow components leader. Hey, phil. Reporter talk about having your plate full when you take over as ceo, that certainly has been the case for dave calhoun in the first 100 days. We knew when he became ceo in the middle of january that fixing the max would be the top priority nobody, nobody could imagine what would happen with the corona infection first moving the max forward, then the coronavirus production halt theyre just bringing it back into production in seattle and then you have the commercial backlog. It is still under pressure they have yet to gain positive sales or positive orders for the first three months of this year. In fact, the 737 max when you look at the backlog under dave calhoun, some of this is because of the one Year Anniversary of the plane being grounded, so lessors, airlines, if they wanted to get out of their order they could its down 13 . Total cancellations, mr. Calhouns 100 days basically the cancellations total 193. Thats not to say there havent been some areas of improvement look whats happened between boeing and the faa and the relationship with the head of the faa steve dickson, 100 better you have the 777 experts flight in late january. The 777x is not going to move the needle any time soon, but its important as the company basically moves forward with the next generation of wide bodied aircraft thats happening in late january. Finally you have dave calhoun and an increased focus on engineering. This is not going to get a lot of attention and not in the headlines. Its critically important they have stream lined and worked on focusing the engineering within boeing, especially the commercial amitriptyline airplane division, to be much more focused than it has been in the past they believe thats going to pay dividends down the road. Boeing has the annual meeting on monday and then you have the q1 results posted before the bell on tuesday a lot of questions do they bring down staffing, all of that will potentially be addressed on wednesday guys, back to you. Okay. Phil lebeau, thank you. Still to come on squawk box, a lot more to come we have the ceo of eli lilly, david ricks and the fight against the coronavirus. Here are the futures at this hour bopped around a little bit but mostly stayed well call it marginal dow now down 3pots7 in well be back after this eli lilly beating the street joining us, david ricks. Good quarter for you and it was boosted, as you point out, by wholesalers stocking up on some drugs, worried about whether they would be able to get it during the coronavirus pandemic it wasnt specifically covid19 drugs but just drugs in general with wholesalers is that the way to read it, david . Yeah, thats right. Thanks for having me on, joe obviously january 1st, the beginning of the quarter, seems like a very long time ago. I want to start by saying the results are very good but the company and our industry, our purpose has never been more clear, which is to help people who are sick i think one way to do that is providing medicines for diabetes, oncology, many people wanted reliable supply our factories are running 24 7 wholesalers, retailers and patients did buy ahead some medicines reflected in the results. We also had strong underlying performance. We invested heavily in r d up 13 thats reflecting efforts to help covid19. Even the gains in sale were not increasing prices, it was down 6 price drag which is a big number 4 down in the u. S this is not so much the facial price but the discounts and rebates that we continue to expand to the supply chain weve talked about that before on the show. That continues in the background then there was a pretty big contributor from two oncology projects in china where we negotiated for National Coverage volume way up in china it led to minus 6. You have a Rheumatoid Arthritis drug and you announced youll test it for covid19 patients its partially a result of an overactive system. This influences the cytokine storm that can cause respiration to be worse. Theres reason to believe this will be efficacious . Yes a lot of doctors and scientists believe what leads to respiratory distress, ventilation and very bad outcomes isnt the virus but the bodys response. The lungs become incredibly inflamed and our own immune system turns against our body. This is not approved but part of a large nih study that will look at this in covid19 patients antiviral. Its a year and a half ago. Do you know whether its been prescribed for covid19 off label . We have there are a number of case reports that are either in publication or submitted that were aware of where doctors made that choice i want to stress, its not approved i understand. We need to do a placebo structured study. We need an antitumor effect, an antiviral effect too . Yes ang 2 is the antibody where we have a study running now lilly oncology drug we repurposed its attacking the bodys own response we have a collaboration with epcelera which we formed days after the virus started. Well file an ind that will g into studies in early summer this is similar to the convalescent strategy you talked about before its a juiced up one we take the antibodies from patients who survived covid19, we select the very best ones, one or two as i said, and we turn that into a medicine or modify that and turn that into a medicine this will have a direct antiviral effect and could be used for late stage or prevention its a very effective strategy and a promising approach were not the only ones doing this people are working around the clock at break neck speed. We didnt know the virus existed january 1st. We could be in a study in less than 6 months and, man, thats incredible. Yes, it is. Andrew you talked about the timing i just really wanted to understand the timing on the antibody drug. There are four Different Companies working on this. Where are you in how you think about thisrace and how quickly can this get to the public of course, i dont have any information about the other Companies Working on this. There are others trying this and thats good. You know and we know despite best intentions, sometimes drugs fail for unintended reasons or reason reasons we cant predict. From best we can tell, were towards the front or out in front. Thats good. If we start a study in june, we could get results late in summer were working closely with barda, fda and theyre moving at light speed. We would expect if successful a very rapid approval. The real challenge is making enough thesephisticated proteins we could well use a good portion of the globes production just for the winning product on these antibodies and we plan to do that organizing that supply chain will be complicated. So were predicting success and planning for perhaps a fall availability of this kind of approach en masse. Hey, dave, one final question actually relates to barda. You saw the news yesterday, rick bright said he was pushed out by the administration from an industry perspective, does it slow anything down, change anything in terms of how industry will ultimately work with the government . I dont know much about the details with that. From our perspective, hes not the person we were working directly with. I wouldnt expect any change most of the leaders of the hhs commissions, the threeletter organizations have been incredible in terms of, you know, being able to call us back within hours, organized meetings there is no problem with the functioning of the federal government in terms of speeding therapies, i want to emphasize that theres no problem on the industry side. People are working, as i said, at break neck speed to help solve this problem we were built for this moment and were rising to that challenge. We have dr. Gottleib on, andrew we can talk about rick bright the entire interview with dr. Scott gottleib hold on in a second. Well be on in a second. Thank you. As i was starting to say, youre close to an alltime high and thats very rare in this market. I dont know whether its something you should be happy about. I mean, obviously its good, but its just a very strange time to be watching stocks and everything else. Eli lilly, good luck and i hope some of this stuff does pan out for covid. Thank you. Of course we do, too thanks for having me on. All right. Still to come this morning, the most important number of the week weve got the weekly jobless claims number out at 8 30 a. M. Eastern time another 4. 3 Million People are expected to have filed for unemployment that adds to the 22 Million People that have filed take a look at shares of target. That stock is now down i believe by 5 . Earlier this morning the Ceo Brian Cornell told us that the retailers Comp Store Sales were up more than 7 but that was led by digital gains of more than 100 he did talk about operating margins being under pressure because of the money theyve invested to protect their employees during covid and other changes as well and a change in shoppers buying habits for items that have lower margins. Stay tuned for squawk box. Dont forget to subscribe to our podcast. Youll get interviews, original ceneent and behindthesces acss look for us on your favorite app and subscribe to squawk pod today. Welcome back, everybody. New york City Pensions are pushing to remove former exxon Ceo Lee Raymond from jpmorgans board. Its a focus in a piece in the wall street journal. Ledby controller Scott Stringe is critical of raymonds views he has served on jpmorgans board by three decades he would stand for reelection but he would ask the board to begin with a formal process to find a successor coming up, well talk testing. The latest on the battle of the spread of coronavirus and much more with dr. Scott gottleib as we head to break, heres a look at some of the scenes across america yesterday were coming right back. Life isnt a straight line. And sometimes, you can find yourself heading in a new direction. But when youre with fidelity, a partner who makes sure every step is clear, theres nothing to stop you from moving forward. A partner who makes sure every step is clear, 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 this morning take a quick look at futures weve bopped around a little bit. Were down about 50 points right now. We were up marginally before its moved around a little bit lets see where things land later today. Nasdaq off 14 points s p 500 off 2 points joe, over to you. Thanks. Georgia is planning to reopen some businesses tomorrow President Trump isnt on board with all of the aspects of the governors plan to get back to work. I told the governor of georgia, brian kemp, that i disagree strongly with his decision to open certain facilities which are in violation of the phase 1 guidelines for the incredible people of georgia, but at the same time, he must do what he thinks is right. I want him to do what he thinks is right, but i disagree with him on what hes doing but i want to let the governors do if i see something totally egregious, totally out of line, ill do it i think spas, beauty salons, tattoo parlors, barber shops and phase 1, going to have phase 2 very soon is just too soon i think its too soon. Joining us now, former fda commissioner dr. Scott gottleib. Hes also a cnbc contributor serves on the board of pfizer and i will lumina. Some of these businesses seem like social distancing is impossible with massage, tattoos, whatever, scott ive heard dr. Birx say that, you know, people can get very creative, but i dont see how you can get creative enough to maintain social distancing you dont have to go and businesses dont have to open. Should they be given the opportunity to open, scott well, bowling alleys. We left off some things on his list and movie theaters. If you were trying to create a list of things you didnt want to open in the early phases of trying to restart the economy, it looks like this list. I understand theres small Business People behind these kinds of establishments and you want to help them get back into operation, but theres not a lot of people employed relative to the whole georgia economy by these operations if youre trying to do the most good in terms of restarting the economy, these wouldnt be the businesses you would look at from a purely economic standpoint, let alone to the fact that these arent businesses where you put in place measures to create social distancing i wouldnt be surprised if he pulls back from this list and pushes back on this in the reopening of his overall economy. Youre not a constitutional scholar, but in terms of federalism, not as a doctor, but in terms of states, does it make sense that states and governors should be controlling this or should the federal government, you know, assert its authority what did he call it . Total authority. That was met with a lot of derision but now people would like him to assert total authority, the president no, i think the administration is doing the right thing giving discretion to governors and thats the way theyve been managing this from the utside i dont expect them to change course theres different resources around the country, different conditions on the ground theres parts of the country that havent been hard hit you look at more rural states, they might be able to restart parts of their economy or didnt close aspects of their economy going into this. You want to leave local discretion if you look internationally even to china, they didnt implement uniform measures across their country. They dealt much more harshly with wuhan the president did, i think, what was appropriate. He went to the bully pulpit and did some political jawboning to get the governor to do the right thing. You were on the record talking about dr. Rick bright and barta and being moved out of that position. You had a problem in terms of continuity in developing a vaccine. Do you think that if someone isnt on board for example with what looks like the policy, and the people there it might be more complicated than that. , would like to see them remain in that role youve met with President Trump. Youre not officially part of the whole team but there is the notion that if you are not on the i can say that, if youre not on the reservation, youre out. If you dont go along with everything a president wants, youre in danger of losing your position or youre going to be forced to backtrack comments that you maybe saw with i dont know whether you agree with the cdc director who said the Washington Post headline he said calling it, i cant remember the word he used, but it was different than complicated by the flu you know what im talking about, scott. He said it would be disastrous in the fall. He had to backtrack that it seems like people do backtrack things with things that dont align with what President Trump was thinking i dont agree with that i had many opportunities to brief the president and talk to officials in the white house and i was able to air a difference of opinion in a constructive way. Often one debates. I doubt anyone was aware that rick bright was being moved out of that role until they read about it in the newspaper. I suspect this decision was made in the Health Department and the white house was not involved in any fashion. No kidding . Thats not the narrative were hearing. Becky, do you have a question . I do. Scott, yesterday we had the ceo of labcorp on. They send it to you and swab your own nose. I didnt realize that those tests are not allowed in states like new york, new jersey, i think delaware and maybe rhode island that seems a little crazy because this seems like maybe one of the best places if you think you are infected you are not potentially exposing Health Care Workers or vice versa do you think theres any chance that will change yeah, thatle change. I suspect and i dont know the details of what the issue is, but i suspect they need to be cleared by the regulatory authorities. New york state maintains tight testing and have you to file for separate approval or clearance in that state for laboratorydeveloped tests i assume they have to do the state filings. That should change. I wish we had more time to talk singapore because im trying to figure out whether its uv light, you know this, doctor, its not uva, uvb, probably the shortest wavelength light that disrupts nucleic acids and it worked with sars. Shouldnt that be we dont know with corona, but it would seem like it would make sense that it would do the same thing. Look, i think local governments, state governments should be looking at what activities they could move outside. Things are going to be done more safely outside have religious services outside, gym classes, restaurant tables anything we could move outside well have a safer environment. We shouldnt give up on hope that this could be seasonal . If its not seasonal, then we lose another positive possibility for how we finally deal with this its still possible that as the summer comes this becomes less insidious . There will be a seasonal aspect to t. I dont think its going to be entirely seasonal. As we head into the winter, we could have a tough season. Okay. Dr. Gottleib, thank you. And thanks a lot. We were talking about how theyre going to reconfigure the inside of the planes again, arent they . Even the thin body planes. We were talking about that thats another part. Way were going to be living thank you. Appreciate it. Thanks. Okay a lot more coming up on squawk in just a moment senator mark warner is going to join us on reopening the economy and the Payroll Protection Program then at 8 30 this morning, the numbers of the week. Weekly jobless claims expected to rise and well be right back after this short break heres the thing about managing multiple clouds for your business. When youve got public clouds, and private clouds, and hybrid clouds things can get a bit cloudy for you. But now, theres the Dell Technologies cloud, powered by vmware. A single hub for a consistent operating experience across all your clouds. That should clear things up. Good morning we are about to get another look at the mounting economic pain from the coronavirus initial jobless claims expected to come in above 4 million between a rock and a hard place. The state of georgia made plans to reopen some of its businesses, now President Trump says thats not a good idea. And making sense of a truly wild week in the Energy Market with billionaire investor leon cooperman. A special interview is on the way. The final hour of squawk box begins right now good morning im joe kernen along with becky quick and Andrew Ross Sorkin take a quick look as we do at the equity futures down 63 points now we were down about 1100 combined on monday and tuesday and we gained back 500 and change yesterday. A little bit more stability that were seeing in the markets at this point, but were right at about a 50 retracement of the big selloffs since the beginning of the crisis. So were in that area where at this point nothing would surprise anyone as you head higher or back down lower. Depends on the virus crude prices also a factor in to everyones thinking. Im looking for 60 cents a gallon gasoline. Should get something out of this 15. 76 and wed be all dressed up with nowhere to go. 60 cent gas. I can back out of my driveway and pull back in back out, pull back in, i guess. You know, if you have a young child, actually driving around is actually very good for sleep. Naps afternoon naps huh no, you drive them. Youre right. Youre right in the car seat. Theres a lulling effect. Absolutely. Absolutely been doing the same thing thats the only time weve been out. Sometimes like me talking. Or like some of our competitors in financial news. I drift off seems like sometimes. Just turn that on instead save the gas meantime, weve got some news to bring you this morning some stories that investors are going to be talking about. The big store target says Digital Sales have increased, you ready for this, nearly four fold with same store sales up nearly 5 . Becky spoke with target ceo earlier on the program. Weve just seen cyber monday occur almost every day except the volume is twice the size weve seen even normally on a cyber monday peak. Clearly Consumer Shopping patterns have changed. But shares of target are under some pressure in the premarket the company did note its quarterly profit has been hurt as well as, you might imagine this, increased labor costs. Take a look at shares of eli lilly. Revenue and an adjusted profit above wall street estimates. They saw worldwide revenue boosted by 200 million due to covid19 they said the virus could negatively impact results later in the year. Tyson foods will close the pork Processing Plant in North Central indiana as more than 2200 workers are tested for the coronavirus. Just yesterday the meat processor had announced the shutdown of its waterloo, iowa, pork plant where they had found some of their employees had tested positive to coronavirus becky . Andrew, thank you cnbc and change research pulled thousands of general election voters from six major battleground states to try to determine Economic Sentiment theres a big shift underway in battleground states. Ylan mui joins us with more on that ylan, good morning reporter the polling shows just how quickly resistance is building to some of the stringent measures in place to fight this virus take a look at michigan, pennsylvania and wisconsin in particular the blue bars on the righthand side of your screen show the percentage of voters saying that their states response has been too aggressive the top bar is when we asked the question on april 3rd. The bottom bar shows the number when we asked the question again two weeks later. That went from 9 to 47 who felt the response was too aggressive in pennsylvania and wisconsin, the percentage more than doubled to over 40 . They have a few things in com n common the shift is being driven by a change in attitude among Trump Supporters michigan, two weeks ago only 17 of Trump Supporters believed the state was being too aggressive now thats a whopping 89 . In this environment two weeks can feel like a lifetime, but we will see how those attitudes continue to evolve as parts of the country continue to open up. Ylan, thank you we havent talked to you much about this since you came back you had coronavirus yourself your family was also in the same boat youve written about it for cnbc. Com how are you feeling . How are you doing . Reporter well, i feel pretty good the kids also are feeling great. In fact, they almost came in and photo bombed a live shot here. I had to scoot them out of the room but were all feeling really good i feel really fortunate for that the big question we have now is how do we go back about our daily lives . What is it safe for us to do not being able to get one of those serology tests that you guys have talked so much about . Not understanding what the guidelines are for people who have been affected so were trying to navigate all of that right now in our own household. Yeah. Kind of keeping everybody home and trying to maintain, i guess, at this point . Reporter yeah. Absolutely its kind of funny, actually one of our neighbors yesterday had a social distancing picnic in their front yard and we didnt end up going over because i felt like, who wants to sit next to the person who had the virus, right even from six feet away, if people know you had it, maybe theyre going to feel uncertain or unsure. So we just got delivery and ate at home. Well, we are really glad that you and your family are all doing well and hopefully well get more answers to a lot of these questions soon im grateful youre okay check it out, go on cnbc. Com and read more about ylans full experience its great to have you back. Reporter thank you so much, becky. Sure. Lets talk more about reopening the economy with our next guest virginia senator mark warner is here and obviously hes been watching all of this play out. Senator warner, thanks forjoining us today. Not sure if you could hear ylans report and talking about how the numbers are shifting pretty rapidly its understandable, people are at home, not getting paid, cant open their businesses. How do we handle this . I think two things, one, clearly people are frustrated, but i also wonder if youve done the same kind of survey in georgia where the governors being very aggressive about reopening and now even President Trump is asking him to pull back my concern is reopening should be a priority but its got to be data driven. You need to see 14 days of declining cases, and my concern is if we send back people and only half the work force goes back because only half are concerned or god for bid you get the virus, i know ace former governor, you have to have this data driven. The president did ask me to serve on his task force my contribution will be we need more testing testing, testing, testing. The fact that we dont have a common data center, what is in the pipeline, what is the fda about to test, what does it look like do the testing and then come down into a reopening phase. How long do you think it will be before we get some of those things based on what you know . I dont think i have any audio here. Mark, ill try and keep talking through this maybe it will come back. I guess my question is, how long before we get those abilities, those testing abilities and that data ability im not sure if you can still hear me, senator, or if weve lost you sounds like weve lost senator warner we will try and get him back obviously he has a lot more to contribute joe, why dont i send it over to you. You can do a quick tease yeah. Well try and do that although ive got a lot to read here. Oh, hes back. Back i was practicing, too. Im back. Good, good, good. Senator warner, i dont know if you heard the last question how long before we get some of those things, the testing a bimt and data ability based on everything you know . Well, the fda has been in the process of approving both additional swabtype tests and the antibody tests i think theyre both proceeding on a parallel track. Sounds like we may have lost his audio . At least i have. Hello hello. Is it only me that cant hear we can hear him yeah go ahead. Let me go ahead in the bill that hopefully will be passed today, theres 25 billion for testing. Thats a remarkable investment clearly the testing has to be coordinated on a national level. The one thing i hope the president would not try to impose, similar to the mistaken way hes approached ppe, which is every state for themselves, simply driving up the cost of this equipment the testing level has to be coordinated at the national level. The fact theres not already a National Information site out there, ive actually started to work with Johns Hopkins university who created the definitive site on it. We have that information that will be a great guide to governors and others on reopeni reopening. Senator, sorry about that having technical issues here today. Let me ask you, we are doing this state by state because its hard to come up with a federal plan even within the states there are huge differences cases obviously are much higher in the city and in congested areas. In states where you have lots of rural areas right outside of those cities that will be a big part of the problem, too do you think it needs to be on a county by county basis i think we need to look at it, both state and regionally. My state, virginia, very, very large state. I live up in the Greater Washington area. You cant just open Northern Virginia without dealing with dc and maryland on the other hand we have parts of our state, southern virginia, eight or nine hours away they might have a different reopening schedule. Even some of those Rural Communities weve seen counties with a dramatic spike so i do think you need flexibility here. There will be some regional reopenings, but youve got to have that testing equipment. One of the other things i hope we will get to is what were also going to try to do in terms of restarting the economy in terms of 1078 of the federal support because i have different ideas there as well. Yeah, i know. Why dont you explain that to us ways of reaching out and helping Small Businesses in ways that weve already seen yeah. What weve got rate now, weve got kind of a barbell approach where weve done a very Generous Program for the airlines and parts of air cargo and even with the challenges with Small Businesses, 500 and under, we have the eight weeks of payroll and a little bit of overhead, weve done frankly for nothing, the middle market. So weve got this cliff effect, if youre under 500, youve got everything taken care of if you have 700 employees, you have nothing looking at how our reaction has been and with the numbers, which im sure well see a little bit later this morning, four or five additional million unemployed, maybe we ought to take a step back since this is probably not going to be a vshaped recovery and look at actually what europe has done and actually put together a paycheck support program, paycheck security program. Ive laid out some idea and we have Bernie Sanders to josh holly, very conservative senator on the right and a whole series of opinion pages from left to right. Europeans have only seen a 2 to 4 increase in unemployment because theyve had this direct payroll support. Our plan would get rid of some of the problems around the ppp program. Ud have to actually show a 20 revenue design we would provide payroll support up and down the food chain might be a chance as we look at this covid package, if this is going to continue, this level of support for the next few months, we may learn from whats happening, what may be better approaches from abroad candidly with 6 trillion that weve already put out before the 500 billion today, when you add in the thirteen three fed lending facility, there may be a smarter way to distribute the resources. Senator, some interesting ideas and ways of refining this. We hope youll come back as we work towards this. Thanks. Andrew, my twitter thing is exploding now. You can imagine how many green twitter followers i have, and theyre outranged that youre driving around emitting carbon to try to get your kids asleep im not kidding. What about a side car on a bicycle or something then let them float . Weve done that, too. You cant do that in the rain, joe. Ive been on both ends of that we do take the back trailer but it doesnt work when its raining out. Thats the difference. I dont know. Maybe electric or something. Maybe a tesla. Then sometimes the engine helps put them to sleep. Anyway, coming up, the hard choices facing Small Businesses in the state of georgia, which is on its way towards allowing some reopenings omorrow. President trump now saying he disagrees with some parts of the president s plan big number of the morning. 4. 3 million newfilings expected big numbers. lbeack. Americas oldest lighthouse has weathered many storms. Seeing the break in the clouds before anyone else. Together, well weather this storm. Confident financial plans, calming financial plans, complete financial plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Theyre all possible with a cfp® professional. 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 this morning the state of georgia is coming under pressure some of that is now coming from President Trump. I told the governor of georgia, brian kemp, that i disagree strongly with his decision to open certain facilities which are in violation of the phase 1 guidelines for the incredible people of georgia. Joining us right now is a Small Business open be ner from georgia, diane fall of mats and barbers of suburban atlanta. Thank you for joining us sure. Thank you. Curious about your plans to reopen. Well, im definitely not opening thisfriday i cant i dont have a calendar date for opening. After reviewing the guidelines, the osha guidelines that we would be required to follow to even start this process of opening, its overwhelming getting together all of the ppe. Just the amount of supplies it would take to source supplies is yesterday i went on the internet just looking for capes because theyre saying you have to use one cape for each client, and i looked for disposable capes. Theres nothing out there. You have to have an infrared thermometer to take the temperature of your employees and each client who walks in the door this cant happen overnight. I mean, theres no way it could have happened by friday so, again, i am just not prepared to do this and really we have to restructure the business as well were a walkin only we dont take appointments okay im sorry. No, no, no. So lets just talk about sort of what this process looks like for you. Youre saying you have to restructure the business you have to get all of this different and new equipment. What the cost of that is going to look like right whether your employees want to come back to work what theyre telling you well, i have some great people who work for me theyre longterm employees. They want to come back to work, but theyre fearful, and so am i. I just think that the state is opening the businesses with the most physical contact. Salons, tattoo parlors you know, this is handson stuff and you cant being at a distance from people we can distance chairs and that type of thing, but we cant we have to be very near people so to get the ppe supplies we need, thats going to take a while. I think, too, that the numbers are just not saying its time to open up. We havent done the testing, although i did see an article in the paper today that theyre going to implement a Contact Tracing program, which thats hopeful. But i think there are a lot of people out there who dont think this is the time, and im one of them. Let me ask you though, talking to other Business Owners in your community there in the state of georgia, what are you hearing from them . Because clearly there was at least some vocal group of business even ners who got the ear of your governor to press ahead with this plan to move forward. Well, it it seems to me im in decatur which is adjacen to atlanta i dont know of any restaurant thats going to open theyre successfully operating with delivery and pickup they have a good system going. They dont see how they can open up their restaurants at this point. Ive talked to other salon owners in decatur, and theyre not opening. People and even the ones who are are waiting until at least may 1st. I dont know why that particular date but, again, back to what i said, you have to source the ppe and the supplies that youll need to open the doors right. So it doesnt sound like a lot of businesses are going to open right diane, we wish you a lot of luck over the next couple of weeks and months. Thank you we do hope to hear about your progress and where things stand so come on back and well continue this conversation thank you and good luck. Great thank you very much. You bet becky . Andrew, thank you. Still to come this morning, well be speaking with billionaire leon cooperman about his sizeable Energy Investments and what negative prices for crude oil mean for businesses and the economy. Plus, investors are expecting another seven figure job numbers loss 22 million in the last four weeks. Theyre looking for another 4. 3 million today. Well get th nbeatumr coming up in a few minutes squawk box will be right back. E no. E 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. The best entertainment experience. S xfinity x1. Coming up, the most important Economic Data point weve been getting jobless claims more than 4 million claims are expected that is the number to watch. We will bring it to you in just a moment after this short break. 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. Welcome back to squawk box. Rick, give it to us. Its exactly as expected, 4,427,000. Initial jobless claims, 4,427,000. 4. 5 million was the guest estimate by all of the happy, optimistic economists. They were pretty spot on continuing claims, 1 million im sorry, boy, we wish, 15,976,000 thats a rise from 11,976,000 last week, which was slightly revised to 11,912,000. So lets redo this 15. 976 million on continuing thats versus 11. 916 and just think about this for a minute, joe. The Biggest Record initial claims week was the 27th of march. It was 6,867,000, which was exactly seven weeks after the lowest level since 1969 at 201,000. And i think when you think about it in those terms and imagine that big Circuit Breaker that we turned off, to call this the most important number i just think is silly well, rick, be that as it may. We booked eight people to talk about this number. I understand it thats why i said it before we get to the panelists. Jason furman, former council of economic advisers chairman, alex grills, a resident fellow at aei, our own mike santoli and steve liesman. Steve, were going to get you to go first i was going to say, do you want to give up your time and well put dr. Scott gottleib back on its all about the virus, isnt it what are we going to do . We cant open up yet reporter i think thats right, joe whether people are getting claims some people are getting too much in the way of claims and an issue of whether or not some people are not getting enough. Interesting editorials in the wall street journal about whether or not the right incentives are in place. I did calculations to find that theres a goodly chunk of people that are getting benefits below the level that they would get in their wages. The other issue out there that im looking for right now is the statelevel data two things were watching for. These are important policy issues one is you have a lot of states with a lot of unemployment, and those states have high claims levels other states may also have high unemployment but their individual bureaucracies are unable to process pensions been a lot of sort of comment or criticism on whats happening in florida. There was a statistic earlier in the week where there were 1. 5 billion applicants one of the things im watching, im going to look at whats happening while in florida yes, thats shot up. Thats shot up from 180,000 to half a million so people are now able to apparently apply for Unemployment Benefits in florida. California has done a good job has come down steadily that is at half a million. Let me look at new york which is one other place that had trouble. See, they came down again. 394 to 204 i dont know if, joe, that means the problem is Getting Better in new york or the problem of processing claims is getting worse. Right. Thats been one of the struggles weve had in understanding the data thank you, steve. We want to get to the rest of our jobs panel and weve already introduced them. I want to start with jason furman, Harvard Kennedy school at least youre giving the money back, jason. Did you make that decision at least youre doing that do you have audio or you just cant believe i even asked you about it first time its happened in one of these sorry about that i thought you were like, oh, this guy is such a jerk. No, i was kidding about the harvard elusion to wow, i thought he was not going to answer anyway, jason, what can we do here you heard steve did bring up some interesting points about exactly where the unemployment is going look, i think the Unemployment Insurance is actually one of our most important programs for our health, for our workers and for our businesses let me explain all three we dont want to shut down the economy. We want a lot of people not working. This helps that happen we want to make sure theyre not suffering a lot during it. The 600 bump is an imperfect way to do it its too much for some, too little for others. Unfortunately their Computer Systems wouldnt allow for the perfect which to do it then we want businesses to be there. The biggest variable cost for businesses is labor. This enables them to furlough employe employees, save the costs for now and put them in a better position to resuscitate themselves once Scott Gottleib has solved this problem and businesses are able to come back i think in some sense these numbers are telling us what we already see with our eyes and its telling us we have a program to help people and help businesses get through this, we just need business to be there on the other end for all of it to work. Alex, are you buying what jason said that he didnt have audio . I think he really didnt like that question. Anyway, alex, do you agree with everything that jason just said on those are three pretty good points. Sure. I agree for sure that im glad that we have a ui program. No question. We need this type of insurance we even need it when the economy is doing well. We absolutely need it in times of crisis, like the one were in you know, jason called the 600 bump in benefits an imperfect policy but one that helps raise the floor. I think thats an interesting question about whether how to design the level of benefits so we need to think about this program and want people who need it to be able to be processed quickly, of course, and the Unprecedented Demand is putting strains on a system that quite frankly we knew was not up to par. Many of these Computer Systems at the state level are quite antiquated the states are setting the benefit formula and theyre setting the minimum benefits when i set those i may think some states set those levels too low, but its for the states to decide its interesting that the federal government came in with such a large increase in that floor to offset some of the states that have low otherwise low benefit formulas that allows them to have lower taxes and the residents of the states choose those policies, but we want the program to work and i think, you noerknow, sadl what were seeing is the programs are working well. Were seeing tens of millions of people processed and were going to see that for the next few weeks as the backlogs are getting processed. The other key statistic to watch in this dataset is the continuing claims number and the insured rate i think last week that the percentage of the work force that was claiming benefits, receiving benefits was around 8. I think now, i dont have the release in front of me, but my mental math tells me its over 10 thats something weve never seen before, too i think it will leave indicators to what were going to see at the end of the month when we see the jobs report. Rick, did you have did you want to Say Something . W reporter yeah, real quick. I like what steve and the gang are talking about now. How we apply the policies that we are implementing to save the economy from the shutdown, those are good things. It really goes in tandem with what im seeing in the market. There isnt a lot of movement in Interest Rates, because there shouldnt be it would be dumb to say jobless claims are down 30,000 from their highs a few weeks ago. Those are irrelevant this is really a policy way to look at it just as steve said. Theres really not an Economic Significance to these numbers and i wanted to throw that n. I was a bit flippant and that using it where it should to help an economy where we know jobs are disappearing because we shut it down. I want to get mike santoli in mike, we see each other a lot. I always like to just hit you with something maybe youre not expecting. If itsnot going to be one of these type numbers, you have a feeling, a gut feeling on what the next da point or development is that moves this market up or down what do you think its going to be is it going to be a therapeutic . Is it virus related . After watching the markets for, what, youve been watching 60, 70 years sure. Whats it going to be in your gut . I think its going to be yes, it would be a therapeutic if were looking for a step function change, it filters directly into not just when States Reopen but a sustainable policy thats like a bolt from the blue i think the market is tracking numbers like this, not for today, but to see what the trajectory of the spike peek is in the economic stress indicators market is in a hurry we did it with the infection data they want to see how far this comes off in continuing claims in the next couple of weeks. Becky wants in. I was thinking hopefully its Something Like that and not something that look, there could be a financial accident out there lets say immunity is not permanent with the antibody or the virus mutates. Theres some horrific black swan things that probably are negative, too m jason, how does it impact the jobless claims coming out of a state like georgia where theyre reopening or kroid do colorado we have people on twitter asking it doesnt change anything, but if youve been furloughed by your employer and your employer brings you back to work, that takes you off Unemployment Insurance claims of course, claims are just new claims theyre always positive. Theyre reporting a gross number, not a net number so you wont see somebody that goes off Unemployment Insurance by looking at the initial claims. Thanks, jason thank you alex, mike, rick and steve. Now going back to you. Okay. When we come back, were going to check in with jim cramer as we make our way towards the opening bell then billionaire investor leon cooperman will join us to talk about this weeks slash in oil prices check out the price of crude oil, much improved over what weve seen wti now up by 18 to 16. 27 a barrel stay tuned, youre watching squawk box on cnbc dad, im scared. Its only human to care for those we love. And also help light their way. Its why last year chevron invested over 10 billion to bring affordable, reliable, ever cleaner energy to america. Expedia is raising 3. 2 billion in new capital the Online Travel company is going to be selling 1. 2 billion in privately placed preferred stock and 2 billion in new debt financing. Apollo and Apollo Global and silver lake will be providing the equity portion of that investment representatives of both those firms will join the boards of expedia. Andrew okay meantime, want to get to cnbc headquarters jim cramer joins us now. Weve got the jobless numbers to chew on this morning, jim. Weve got the target numbers and that interview becky did with Brian Cornell. What are you looking at this morning thats making you feel good or bad . Im very encouraged they said april is going to be not good cfx was good but then they gave me a mixed feel near the end of the quarter. Were getting that over and over again, good but then mixed then we add in target. We hear great things digital, maybe sales not good, then bad we are really flummoxed. Is it the lead story in the New York Times where we find out again, boy, did we know so little about this illness . I think were getting too bleeg gered about the fact that we dont know anything and were not at all, lets say, optimistic about any of the many trials that are going on, not just for vaccines but for antivirals i think we should be a little more optimistic about antivirals last week was something where we decided the university of chicago med school had luck with remdesivir our negativity about april is going to be turned and maybe the georgia governor was a little too aggressive maybe things arent so horrible. I struggle i dont want to i just dont think its as horrible, the unemployment number is clearly bad, but maybe theres some good news coming medically that i think is not being talked about enough so the question i asked you about, we had the ceo of eli lilly on, most of the drugs that are being worked on, its hard to see how they would make it out into the wild and the public in any kind of meaningful way until, frankly, you know, really the Fourth Quarter of this year. Maybe thats enough and in terms of changing peoples building the behavior come the end of the summer people are going doing back to normal, no dr. Fauci made us feel horrible about how we will feel in the fall. These are unwatchable. Id rather turn them off and focus on 1984 ncaa finals. But i would say, i would say that we are waiting for gilead news and that would not be something thats fourth uarter that will be something that will maybe be implemented the hospitals are talking about, please come back dont feel like its a death sentence to come in and get your knee done. Im looking at better news medically except when i pick up the New York Times and you have all of these people like david rich, trying the ra drug really david ricks is such a serious guy. We have the smartest people in the world who dont work in social media, of course, computer scientists working on this problem i refuse to believe theyre just a bunch of knuckle heads theyve got to know more is it about more than are we going to have a hair salon open in georgia we can only hope, jim. Moderna is the earliesearlie is it okay to be hopeful . Thats what im asking should we take that off the table and be one text away from not killing ourselves . We all want to have hope. We have to have a realistic time line i need the hope. Jim, some businesses wont be back andrew is cutting his own hair now. Will you go and pay someone . I mean, some of these businesses are thats about the only breakthrough ive had since my mom was dying 35 years ago, i lost a month and a half from when she was dying. Youre set. It was the only blessing. I want to be optimistic. I dont want to be one text away from telling someone my daughter worked with suicidal kids for a long time i dont want to be the swiss idol 55yearold we have ads on if you are 65, basically, nice to meet you. No im actually hoping that gilead has something. Thats got to be our default position, jim. Doesnt it . I will be in a plane going somewhere i want to go, soon at some point. Yes. Im doing it. Im going you know what, my wife sent me a picture of me in italy. She goes, will this ever happen again . I came back and i came back an. Im the dreamer, that i might go to italy some day . Im sorry. Excuse me for thinking that life didnt end on february 1 or now january 23rd or in some sort of laboratory that may or may not have leaked some virus that made it so a bat and a bowl of soup is killing us. Not going there. Sorry. All right, jim. I did cut my own hair it was horrible. You should look around at whats happening at all the different stations a lot of people have roots suddenly coming in a lot of these people. Vin lindsey vonn today, did you see her on brian sullivans show im worried i have not ever changed involving this area right here me neither. Just powder. We have makeup people every day, i just bless them we have to go thanks, jim. Remember, youre only one phone call away from, i dont know youre right. Thank you. Becky. Joe, im taking the fiveth on the roots discussion its been a wild week for the markets. The dow falling more than 1,000 points between monday and tuesday. And then rebounding 450 points yesterday. And then its really been the oil market we have been watching so closely we saw the price of the front oil crude contract go negative for the first time ever, meaning you had to pay somebody to take the oil off your hands today, another 4. 4 million jobless claims joining us is lee kuperman, ceo and chairman of Omega Family Office its good to talk to you thanks are having me. I hope youre safe and healthy and doing whatever you can to help people in a disadvantaged position thats the right message, and youre right i think we are all lee, lets talk about some of the things we have seen develop since the last time we talked to you a couple weeks ago maybe oil is the price to start. What holdings do you have in oil . Well, we own guys that can make money at 25 a barrel people like wpx energy, magnolia, these are all, you know, free cash generating companies. Have no problems servicing their debt, et cetera. Plus, im a great believer in the notion that the solution to low oil prices is low oil prices im a capitalist in that orientation. You need 50 a barrel oil to bring in supply. And well get back there probably some Time Next Year you know, in 1980, the Energy Stocks were 20 of the s p today, theyre maybe 3 of the s p. And i think you have any contrari contrarian bone in your body, you have to consider Energy Stocks excuse me but i say i listen to dialogue im kind of in line with jim cramer im optimistic about solving the virus problem. Im optimistic that the economy will start opening up in may but frankly, im very concerned about the long term implications where what we have gone through. And i put together a list of ten things that bother me about the long term, even though i think the market did make a bottom, but i believe that what were going through has very lasting implications in the long term. So let me share with your viewers, your listeners, my list of ten items number one, capitalism as we know it will likely be changed forever. When the government is called upon to protect you on the downside, they have every right to regulate the upside so capitalism is changed second, the country is moving slowly to the left taxes have to go up. Quickly if biden wins, slowly if trump wins but taxes have to go up. Capital gains taxes, the ability to roll over real estate taxes, all that stuff has to be eliminated, for the good, by the way. Also, i have indicated in the past consistently low Interest Rates are indicative of a troubled economy and should not be viewed positively if you have negative Interest Rates in japan, in europe, yet their price earns ratio are lower than the u. S. Price earnings ratio i would say that the level of Interest Rates is not in itself bullish. I think also, fourth item on the list, demand is likely to come back slowly. If you think of a sporting event or a concert, i cant imagine theyll come back until we have a vaccination. Everybody will have to have a vaccination card and if you want to access to a sporting event or a concert, you have to show your vaccination card to get admittance i think we come back slowly. Business is going to be incur substantial Compliance Costs sixth, laults of equity issues to replace lost capital. Stock that i thought well of in the airlines, perfect example. They bought back billions and sold a billion at 20 youre going to see a lot more of that because companies have to replace lost capital. Stock repurchase, which has lifted eps is largely over Profit Margins with a historic high in january, when this storm hit. Profit margins had to to be mean reverting. I think thats a factor to weigh on the market. My ninth thing, i just observe credit is cheaper than equities. The high yield index energy is about 7. 25 , that equates to a 14 multiple on earnings and were well above that. Finally, its interesting, and becky, you probably have more insight than me, but you know y have studied Warren Buffett who is the greatest investor of our generation hes always been a buyer around weakness, not a seller on weakness, and i notice he cut back on airlines a couple weeks ago. Hes been very quiet, and charlie monger said something publicly theyre having difficulties figuring out whats going on if buffett and monger cant figure it out, who am i to make a judgment my bottom line is i try to figure out what fair value is. I think its a 17 multiple, which is high and recognizes the complex, the makeup of the s p has changed, and more of these Technology Companies a 17 multiple on normal earnings with 150, thats 25. 50 i givemyself an overshoot in both directions so i use 2200, 2800 the market is about 2800 i think its done its job for now and i would be very conservative for a lot of individual stocks are attractive, not just energy, but energy and nonenergy, but i believe the market doesnt hold any great excitement for me at the current time the market is adequately valued. Sorry if i went on too long. No, no. Theres a lot to dig through on that ill tell you quickly, Warren Buffett has not commented on it. Hell be making comments on the Berkshire Hathaway annual Shareholders Meeting ill be asking questions from shareholders from him for about an hour that morning and well be watching that closely so well get his thoughts then. Let me ask you, going back to the beginning on this, getting back to urOil Companies, you say you think theyre all in good position does that mean they dont need loans from the government, they dont need aid from the government the ones were involved in. There will be lot of bankruptcies in the Energy Business, but thats whats going to happen. Whats really going on is theres a shortage of demand, with the economy shutting down, shortage of demand the market is saying the economy is going to come back. If the economy comes back, supply and demand will tighten up the market is doing its job, and there will be a lot of bankruptcies in the Energy Business a lot of supply taken out, which will be positive for the guys who survive. We own the survivors and we own ones where lightning can strike. What i mean by lightning can strike, theyre bite sized they can be bought by a major, a wpx, parsley, magnolia these are companies that have low cost profiles, generating cash flows, servicing their debt its about 6 of our portfolio not, you know, the major participate of our portfolio you say that theres nothing really exciting for you in equities when youre looking broadly at some of these things, that you would be conservative and you think markets are fairly valued here. What would it take to change your opinion other than a big pullback in stocks is there anything extraneous that might change your mind . That we come back more rapidly and in a better way than i think likely look, you know, theres a lot of things can change, but i get down to, you know, whatis the proper valuation of the market and i think normalized earnings and reasonable multiple gives me 25. 50. And you know, i would overshoot to 2800. This morning, were slightly over 2800. But i guess i would change my mind on the down side if the economy didnt come back look, we have an epic battle right now in the market. Its a weak economy versus massive stimulus the market has dropped, peaked at 35 , come back at 28 im of the view, you know, tom friedman wrote a comment for the New York Times a few weeks ago, maybe a month ago, about more harm being done by the shutdown than benefits im kind of of that view we have to stop the panic and end the total isolation. We have to go back and start working on the economy and what would change my view is if we come back more quickly and this becomes more of an old nightmare. I dont think its going to happen, but you know, that would change my mind and im flexible i want to make it clear, the s p doesnt excite me at this level. But i find individual situations are very attractive. Particularly credit. You know, my largest position is a credit position, not an equity position i would love to ask you more about that, but were completely out of time this morning, lee. Please come back soon. I would like to hear about that credit position. You stay safe and healthy and to your viewers as well. Thank you, lee. You, too well talk to you soon folks, that does it for us today. Make sure to join us tomorrow. Now its time for squawk on the street. Good thursday morning welcome to squawk on the street. Im Carl Quintanilla with jim cramer were glad to have david faber back after a couple days bulls do hope to add to wednesdays gains, as Companies Like delta and