Dire projections and devastation from covid19. Were down five basis points good lineup today well speak exclusively with the cfo of tyson as concerns mount about the safety of Meat Processing plants. Plus, Mike Novogratz will join us on what he makes of Warren Buffetts comments on the airlines and market, plus, well speak with tom steyer about the path forward for america specifically, he sits on californias task force to reopen the economy along with janet yellen and tim cook. Well start with breaking news from the treasury. Kayla has more from washington the Treasury Department says it expects to borrow just shy of 3 trillion in this quarter alone to fund the expenditures outlined in the cares act stimulus and also to off set the individual and Business Task revenue thats not coming this because of that delayed deadline to say this is a record amount is an understatement the last record that the treasury saw for borrowing was the quarter july through september 2008 the height of the most urgent spending during the last financial crisis but at that time, it was just 530 billion this figure is nearly six times that amount. A senior treasury official confirms this is far and away a multiple of the last record. As for future borrowings, this official did not comment on the propensity of treasury to boar borrow further if the economy is is more dire at this moment, but certainly, this is an eye popping number and it just goes to show you how deep the Financial Stress this this county are tri is is and how much the government is trying to do to fill that gap. And how much debt were taking on to do it the other big story is u. S. Versus china and the fact that the rhetoric has heated up on the said of the Administration Secretary of state mike pompeo at a time it soupd sounds like what youre reporting is we need our biggest creditor to continue to buy our debt. What are you hearing on that front . Yeah. We need creditors more than ever to step in and be on the receiving end of this debt thats going to be going to market what i get from Senior Administration officials that i talk to, they acknowledge that the president wants to return to that hard line on china, but acknowledges that now is not the right time to do it. Many officials have suggested that even if the president wanted to increase tariffs yet again, that before the election at the very least is not the right time to do so. So you could be looking at a potential second term policy in terms of those tariffs coming on and acknowledging that now is not the time to exact more pain on the american economy. Thank you very much the ten year yield ticking up a fraction at 0. 64 it was 0. 63 or so no real reaction a little higher on the day lets focus in on the other big stories were watching mike has a look at the Broader Market Warren Buffetts take on stocks in particular. Phil lebeau is tracking a big pullback for the airline after news that berkshire sold its poss and meg has the latest on the backlog against the virus. But mike, lets kick it off with you. A little show of resilience this afternoon for the s p 500 one year chart of the s p has the look of a slightly high eer bounce off the lows, but the lows of this morning and the s p are around 2800 with basically the 20day average really defines this uptrend from the lows and the fact we bounce off that is probably giving some people some assurance. Also, i would look back to the april 21st lows of the most recent pullback. Around 2720. As long as were staying above that, i dont think people are going to view that as much more than a relatively harmless consolidation and a pullback at least just now. Even if the upside seems like it might have a little friction attached to it and you mentioned this sort of bufl buffett call. A timetable of the last bear market, the last cycle when Warren Buffett was such a big presence is useful here. This is courtesy of sun trust. If you look at the timing of his famous buy american oped which i think people thought put a low in the markets, did nothing of the rt sort. Hes not a shortterm trade e. Doesnt know where the market is going. You saw big delines in the months after that. Five months later the market bottomed and he was there taking sweetheart deals as they came to hem him. Yeah, maybe not a timer, mike, but someone who has become a billionaire many times over by buying stocks when they were sharply lower. For him to say that he wasnt really finding any opportunities when we saw what, a more than 30 plunge from the market highs in march was a little bit i dont know, i think it surprised people it happened too fast. Three weeks later, it was done and so i do think that you know this idea that he wants to wait for the risk reward to be very much in his favor or he wants to buy an entire company at one bite, i think that probably put him out of the game and by his own admission, the fed came in and cushioned things and didnt leave the chance for things to get ever cheaper the way buyers like him might otherwise take advantage. Well see you in a bit. Airline stocks are plumeting today after Warren Buffett revealed he had sold his stake in the entire sector phil lebeau has more from chicago. Theyre really getting hammered and its understandable why. People are saying if Warren Buffett doesnt like these stocks and dwoent see a catalyst for the future, when do we think we see a bottom for the air loon lines . They continue to move lower. In fact, southwest is is now at a 52week low. Couple of call today that are interesting. One, youve got barclays downgrading american and delta putting them down to underweight. The concern here, debt levels as well as whats the catalyst . When do we start to see some improvement . Theres no betting whos going to be able to call it at this point. Alaska airlines is another stock to keep an eye op. It reports before the bell tomorrow morning well take a look at what they have to say in terms of not only their debt level, but their expectation looking into the second and Third Quarter to your point about debt levels, the two big capital raisings last week, 25 billion from boeing and 5 billion from delta last monday. They seem unbelievably well timed in light of the moves today and on the point of delta, im sure that Warren Buffett played everything by the book and there was no focals to deltas ceo before the disclosure over the weekend. That said as a ceo, you probably would be well aware when a 10 share hoholder was selling in a meaningful way and i wonder whether that infloused eds timing of his fund raise last week and the small window he had after securing government help before this Warren Buffett news, he certainly seized upon it and i bet hell be patting himself on the back about the timing i think the bigger reason why they timed the offering why they did and the fact they were b able to get really the amount of take on the bond offering that they had is the fact that if you look at the Capital Markets right now, especially if its on the debt side or elsewhere if youre doing a secondary offering, its really improved over the last few weeks. I think from the airline ceos per speck tiff, now is the time. That window was there, at least for the last couple of weeks see if that continues here over the next several weeks absolutely. Either way, the stocks trading low. As is the Broader Market s p is flat. Thank you. Were tracking a number of developments in the race to test, treat and vaccinate against the coronavirus following last weeks positive new us out of gilead meg joins us with the latest hey, meg hi, wilf, lets start with the news about roches new Antibody Test. Antibody tests are the blood tests to detect prior infection with covid19. It is the 12th test to get fdas green light and its got really high numbers in terms of its sensitivity and specificity. Its ability to tech false positives and negatives. 95 on the sense this comes of course as the fda has just tightened regulations for these tests, requiring all of them on the market submit their validation data within ten days they say there are 200 under review right now meanwhile, always want to give you an update on the status of the vaccine race our colleagues at nbc news reporting that the Trump Administration is looking at a slate of about 14 vaccines under the project that it calls operation warp speed with the goal to have three the to tour cleared for use early next year. Heres a status check of where Clinical Trials have begun in human testing in the United States, there are several that have started several in china as well one in germany and one in the u. K. We do exwecpect to hear news son on another in the United States from pfizer and bio in tech which started in germany, guys since youre talking about tests, meg, so it seems like there are three really in the mainstream right now the pcr virus test, anteagain and Antibody Tests do you know which Ones Companies are trying to access the ones trying to reopen for large amount of employees, which kind of tests theyre looking at . Thats a really great question i think its a mixture and its to some extent, whatever they can access because it is so difficult to get these tests and each one is a little bit different. If youre using the Antibody Test, its to determine whos already had the infection and who might have immunity although of course the science is still out on how long that immunity potentially lasts. The pcr tests, some folks might be hook iing for the point of cr machines like abbott to be b able to do the tests on site and return the results immediately so basically it depends on what theyre looking to do. Antigen tests, i heard dr. Fauci calling them a good option and providing a different way of conducting the tests, but i talked with experts who are worried about how accurate those are. So theyre not perfect thank you for that. S p just higher with just under 50 minutes left of the session after the break, shares of tyson food getting slammed today on the back of their earnings as the coronavirus outbreak presents major challenges to the Meat Industry. Theyre down 8 . Pee well speak with cfo b about those issues and how long they could last back in a couple of minutes. We hope you find our Digital Solutions helpful to bank safely from home. Deposit a check with your phone or tablet. Check balances, pay bills, transfer money and more. Send money to people you know and trust with zelle. Stay safe. Stay home. Together, well get through this. Pnc bank shares of tyson down sharply. This as the Company Continues to face challenges amid the pandemic resulting in numerous closures and hits to tysons workforce. Joining us exclusively, tyson foods cfo. Thanks for joining us. Thanks, wilf, appreciate your having me. Talk us through the level of impact youve seen in terms of Meat Processing. Where we stand today and what you can do to kind of get production back online yeah, well look first lets start with worker safety top priority i want to thank all our workers for the great job theyre doing. You asked e me what it takes to get the plants back online and of course worker safety is top of that. Weve implemented a wide number of measures to look after our workers from measuring temperatures as they come through the door, face coverings, staggered breaks. Expanded room social distancing. All of these are designed to help keep our work rers sa safekeeping our workers safe is what will keep our plants running and where necessary, weve been willing to close those and deep clean them in order to make sure we can get back to speed as quickly as possible it doesnt sound very safe. There was a headline three days ago that said nearly 900 employees at an indiana pork producing plant, 40 of the workforce tested positive for the disease. That was after a number of your plants had already closed because so many people were testing positive we have more than 400 facilities across the country and ill tell you the statistic i saw as of friday was that 80 of those facilities had no kiss at all were take iing prevention as a very, very serious measure in our company and certainly thats a big contributor to the statistic. What difference does the president s executive order make well, were very thankful to the administration for taking action there the most important result of that is it brings some standard of care or standard of operation across all of our plants, so well be operating to a common standard across the country and we think thats a great approach to keeping the food flying in our country. Of course for all of the families t farmers and people across the country we spoke stewart last week to the head o unions heres what he said about the safety issue the workers are still afraid and now their trust has been broken in those plants i dont know whether or not theyre going to go back to work because u some of them i think are not going to work because theyre afraid i was just going to ask are they going to come until they feel safe . Certainly i can tell you we know that workers are afraid and we know that education is the best way to ensure that they can come to ork work and not feel afraid one of the ways we do that is making sure when workers come to our plants, they see all the measures that are going to keep them safe. Were spending on these face coverings about 8 to 10 million a month. Thats just u part of a wide range of measures were undertaking to that i can make sure your workers are safe we just brought some Health Workers Axiom Medical on site to help look after workers and to make sure were giving them the right level of care and education. Stewart, i wanted to switch focus and ask about the demand for meat amid coronavirus. Clearly, a lot more demand for people cook iing at home and a o less from restaurants. How does that net out in terms of total demand . Well certainly we saw a pretty big fall off in Food Services as schools and restaurants were closed, but at the end of the day, people are not resigning eating less so you saw a big spike in retail. For our company that works out to be a net negative because not all of the plants can be switched over to produce food for retail, but weve certainly been very successful in a them what we feel good about is the fact that our company has a great longterm, a longterm potential and actually ifyou really looked at the issues youre facing in the current time, i describe those as more temporal and structural. So as the countrys largest meat producer, processor, what sort of shortages are we looking at and what about prices well right now, i think youve seen across the market a lot of pressure both in beef and pork and the stats i saw from the usda last week, their own estimates suggest that beef and pork production could be off around 20 or 30 theres a very, very large number i think from a pricing perspective, you know the market will determine that. We did have a call this morning on which we shared from our own company the expectation that we saw a pretty challenging pricing environment actually in chicken. Ie, chicken prices are not expensive. We think thats a good product for consumers at the moment. Stepping away from coronavirus and sort of longer term trends in the industry. Whats your latest position on plant based meats . And when you consider the that b possible foods just close to 500 million round reportedly still looking for raising more money. Is there an opportunity to partner there with one of those established brands or not . What are you thinking on the latest there well weve got a fwraet range of our own products in this space. Weve seen terrific growth we also have the ability to launch new brands. I think were going to be better off doing job by ourselves whats happening with exports . I mean your industry was supposed to be a big beneficiary of the trade deal with china and china buys some of our meat. What does ta look like right now, especially with tensions heating up again between the u. S. And china trade deals are important in making sure that food flows around the word m we could say as far as our earnings release, we had seen a big growth in exports. I think tl going to be Strong Demand around the world. We produce great food in america. A growing need for food around the planet and despite the current challenges, if you look at the longterm, youre going the see us going a big part of that growth potentially. Thanks so much for joining us today. Great thanks for having me the cfo of tyson. Weve got just about 38 minutes left of trading. Take a look at the major averages dow really well off session lows only down b about 17 points. S p is positive by a quarter of a percent. The north ameriasdaq has been t foermer all day. A russell 2000 index, down. 2. So recovering well off of those earlier lows still ahead, well speak with tom steyer who cochairs californias Business Recovery task force about the timeline to reopen that state and tomorrow, dont miss our exclusive interview with Federal Reserve vice chair rich card cl ararida. Thats at 3 00 right here on close iing bell well be right back. Imb possible foods reportedly considering raising more cash as the Meat Industry suffers setbacks and sales grind to a halt. We have that story and a very special welcome back from maternity leave. Good to see you. Good to see you, too. Thats right, impossible foods talking to investors impossible foods just closed a 500 million round back in march. That puts its valuation at about 4 billion in response, the cfo telling us while we routinely speak to parties interested in the market, we have no additional Investment News to announce. Now impossible foods has focused on the restaurant sector in carrying its products, however, starting last fall, it began selling products at Grocery Stores and other retailers and in fact, just a couple of weeks ago, the Company Announced its rolling out products at l 00 new supermarkets but it is still behind beyond meat number of Grocery Stores and in response to the pandemic and meat shortage, the companys also beefing up its direct to consumer channels. Back to you guys what would the indication be above or below the 4 billion level in march are they needed the cash or is this just a question of being opportune . You know what, thats anyones guess the company does say though that they are in a really good place to exb up and down and do all of that intense focus on the grocers and retailers and also those direct to consumer channels thanks so much for that now to another company thats raising fresh capital. Trading platform, robin hood, says its taken in nearly 300 million in a new funding round hey, kate. Despite recent outages, robin hoods backers are reupping investments in the company the start up announcing a 280 million funding round today bringing its new valuation to 8. 3 billion. Thats up from 7. 6 billion last year the round was led by previous investors who reported a few weeks ago from sources familiar in todays announcement makes that official. Some updated user numbers as well robin hood adding 3 million accounts so far this year to companies saying it saw record breaking Trading Volume but thats a double edge ed sword. The company also blaming major ounl outages on those hectic market conditions. Back to you. So i mean we just heard the report on impossible is the venture market more open than you might think during you know this intense period of economic difficulty . Its interesting. I think existing investor, robin hood for example, se coia was one of their early back eers. You look at robin hood they need certain Capital Requirements so they probably need ed ali quidty injection an tapped investors they had known and had a relationship i think that where youre seeing weakness in the market is for new deals so its hard to build that trust and go out and source deals but the guys that have invested, were seeing some double down. Kate, thank you still ahead, mike novograts will join us to discuss where hes putting money to work and whether he agrees with Warren Buffetts outlook on the market and a check on bonds for you kind of a mixed picture to start the week if youre looking at the tenyear yield, the its lore so theres the caution still. Buying bonds except for the 30year yield, which is popping today 129 amid more bad economic data. Our special coverage continues on b cnbc. Close iing bell this is decision tech. Find a stock based on your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. [female vo] restaurants are facing a crisis. And theyre counting on your takeout and delivery orders to make it through. Grubhub. Together we can help save the restaurants we love. Good steady improvement. Dow and russell just negative. The low of the session of the dow zoun 362 down just a handful of points. In terms of the sector, energy very much the top performer. Oil is is continuing its recent rebound. Technology high er more than 1 . Industrials, financials and real estate remain in the red but nice to see the tilt to the green in terms of sectors which was not the case at open here are the key things drifing the action escalate iing u. S. China tensio as the white house signals a return to more con franational trade policy Warren Buffett says hes dumped stake in airlines and is moving in cash and more states moving forward with reopenings despite desire projections from covid19 zblnc now an update with frank here is the latest. At least 100 students and parents of the sump the Terror School district in South Carolina are are protesting the decision to hold a virtual graduation for seniors theyre asking them to reconsider and offer an al te alternative like a drive through or multiple small group ceremonies a plant in south dakota has partially reopened the plant shuttered over two weeks ago after more than 800 employees became infected with covid19 Meat Processing plants around the u. S. Have struggled to contain outbreaks. And florida is entering its first phase of reopening restaurant, beaches reopened with some guidelines to ensure social distance aing for more coronavirus coverage, head to cnbc. Com wilf, over to you. Thanks so much for that as we said, just about 27. 5 minutes left of the session. We are now higher on the three major indices. Up next, mike novograts will tell us whether he sees upside in the market. Plus the busiest week of earnings season kicking off today. After the close, well have results and a few othe aer e llft wee back in a few minutes. G car] [sniffing] is the salmon wildcaught . She only eats wild caught. [cash register beeps] uh, i need a price check on honey. Dont get mad. Get e trade and get more than just trading. Investing. Banking. Guidance. Berkshire hath waway way holing its meeting over the weekend despite Warren Buffett expressing optimism. He isnt making any Big Investments right now. We have donot done anything because we dont see anything that attractive to do. Now that could change. Very quick or it may not change but in 2008 and 09, truth is we werent buying those things to make a statement to the world. They may have made a statement to the world to some extent and im glad they did if they did, but we made them because they seemed intelligent things to do and markets were such that we didnt really have much competition. For more, lets bring in michael notice granovograts. What did you make of the buffett tone, the caution, the selling of the airline i hear it from a ton of investor, same thing credit markets dont look great. Fed payment, i gg so many people i know are kind of sitting here with low risk not paralyzed by any stretch, just waiting to see if the other shoe falls and the economy, we try to start the economy, does it start or not start and does gravity kind of set in on the market you know there have been some sectors that have gone done great ch others that havent post the feds intervention in high yields, its right back to the wides it was before they intervened and so you know, its a tale of two markets in a lot of ways and i think a lot of people are sitting on the shrines the one thats not is is retail. Retail really has bed been the buyers of this market. It was quite interesting mike, clearly Warren Buffett in order for it to make the end of quarter of disclosures sold some of his air lline stakes in march. Near the lows. Also referred to loans that would need to be paid off so it suggesting some of the selling was after the bailout. Either way, thats clearly selling a sector that had declined sharply already it feels therefore his tone this weekend was more than just saying oh, we bounced too quickly. Where do you stand on that if we were back towards the lows, would you be more bullish . Done a really good job of Airline Travel is going to be difficult for a while. Universities are Still Deciding are they going to open in september . Have a football season when are people going to start Business Travel again . So were in longer Recovery Time than you would in other businesses and so i think its a, its a really calm u environment because we dont have a plan yet. You know we have plan, big goal, National Goal which was to bend the curve and since then, weve kind of lost our leadership. Theres no goal. Its not were going to have nobody die and so weve got disparate ideas of what were going to do. Theres not a National Testing program. Its beyond by comprehension why we havent gotten more testing we need 5 million tests a day. Were getting about 300,000 so were ways off so i think the markets going to remain nervous for a while so what are you doing with your portfolio besides growing a mustache i grew the musk tark, my corona and i was going to keep it until the quarantine was over by christmas at this point the you know, i got kind of cautious on stocks three or four weeks ago and i just looked before i came on, they were p t pretty much at the same level three and a half weeks ago i dont think stocks are going to build up. The vix has come down. There are some positives, some negatives. Im a little bearish stocks. I still am very bullish as far as assets. This idea that Central Banks and you know fiscal agents around the world put us into a position weve never been in before with 20, 25 gdp budget deficits coming and were not sure how the world will handle that i think there will be a push to hard assets there is a very decent chance, much hihigher tht was before i own a lot of gold. I love bitcoin next tuesday where the inflation rate gets cut in half. You talk about inflation and from the fed is printing money like the its a money printing machine and then the Bitcoin Space, the money supply gets cut. 50 . And so big deal there, were seeing lots of new investors hedge funds buying in their fund i think see some announcements soon of that or investors out. So all positive stuff in terms of flowing that space. Thats where the bulk of my risk is its been a fun environment in the Bitcoin Space after a long decembsert, we now have have re activity as you know, we have lot of Retail Investors that watch the show if people want one of those types of hedges, gold orb or bitcoin, should they fear the type of thing that happened in oil markets and if not whats the key asset to buy that gives them real protection, hedge to broader sentiment . Listen, i think bitcoin did suf a big risk off in the ori n original deleverages, so when everybody got numbers of corona and sold everything they own gold at bigger retracement i feel good about those markets. A lot of leverage left those markets. So gold is principle if youre a retail investor, you can buy an etf bitcoin, a little trickier if youre a small investor setting up a point base account or any account at one of the gem any or exchanges makes sense if youre a larger investor, places like ours have funds. Places like the New York Stock Exchange orph fidelity. Those kind of investments make sense for people with more capital. Theres a hunl disconnect between the market and economy but it strikes me that so many big name investor, not just b Warren Buffett you had carl icahn, Jeffrey Gundlach are negative on stocks or waiting for them to reach new lows yet the pain trade seems to be that stocks seem to be resilient and higher how do you exprlain that . Weve never had a situation in my lifetime where we had as much economic destruction and as much uncertainty Going Forward balanced the single largest in liquidity injection in the Global Markets i think people that are more cautious say wait a minute multiple s p looks pretty darn high if we dont open it really soon its really hard to paint a picture that the economy in the next 18 months gets even close to back to where it was. Things are going to take longer. Unless theres for this virus just decides to run away which are high probablity events and so i think you know we were caught off guard in a lot of ways like how much liquidation happened in 08, it was hard to liquidate. We were trying to sell things. There was no bid so the fed would come in and give you a little help but you couldnt really sell so people had to set upside pockets and spds this time, the fed came in and said well buy everything and so powells response was 20, 30, 40, 50 times response in intensity that bernankes was in 08 and 09. So one of the republicmarket han going down is because everything got liquidated so we have this rare environment where fundamentals dont look great, but nobodys really the wrong, nobodys really caught the market no one needs to sell so i dont think the market can crash yet. I think it can grind down. Like i could be short to 2600 on the s p. Then long again. And so i think weve seen the lows of the year i just dont think theres a great story for why things are going to rocket to the upside. Mike, as always, a pleasure thanks for joining us. This is the last commercial were going to take before we reach the close. Up next, well bring you inrrted coverage of the final minutes of the session when we go inside the market zone these days staying connected is more important than ever. So were working 24 7 to maintain a reliable network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. [sniffing] is the salmon wildcaught . She only eats wild caught. [cash register beeps] uh, i need a price check on honey. Dont get mad. Get e trade and get more than just trading. Investing. Banking. Guidance. We are now in the closing bell market zone commercial free coverage of all the action going into the close. Mike is here to break down these crucial moments of the trading day and today weve got boston private chief Investment Officer here as well well kick it off with the br d Broader Market stocks rallying into the close the three major averages on track now to amass a two day losing streak. They really built momentum just in the last hour the intraday chart of the day now up 19 points mike, are you surprised to see this given the time from buffett, the heightened rhetoric between the u. S. And china and tensions rising there, the New York Times report that that their project iing about 3,000 daily deaths by june a much higher rate and yet the market continues to climb. Yeah to me, it implies a couple of things chlts one that investors still feel a little bit under invested that the market isnt doing to come in hard overnight, the s p futures were down almost 2 so this stands a good 12hour rally that were seeing right now now that being said, its being dragged up by the all familiar huge cap growth stock. This is not really a broad move. Its not you know undermined by that fact. Just a reality one of those old style quality defensive rallies and by the way, at those lows overnight in the s p, it was another 5 pullback from the highs. Second one weve had in a few weeks and at least now, that ha helped mike, to your point, banks index is still dpoun 1 today and thats a theme not just today, but the second half of last week. The first monday o wednesday of last week, we saw this rotation into the underperformers and thats really unwound aggressively even with todays afternoon rally over last thursday to monday trading yeah, it was a very brief little shot of rotation in favor of value, cyclical, small cap. You know the more beaten up names. Maybe there will be something longer term. Happening on that front at some point, but at the moment, it seems as if weve got one of these high liquidity low growth stories again in the market where theres not enough clarity throughout for a move in cyclicals, but as you suggestion, its very whip pi and the flows kind of change day to ta. Its a very tactical market. Our legendary investor, Warren Buffett, sounded a cautious note over the weekend at the annual shareholder beat mete, saying he hasnt bought anything during the downturn around his position will be to stay a fort knox bank of america had a more positive outlook on friday it all depends on what happens next right now, youre seeing some things that will start to go up. Youre seeing retail, which was about three to four weeks, all b about provisions people grabbing everything they needed to be in a stay at home posture. Right now, theyre spending on clothing start to pick up youre seeing spend iing at restaurants grow the last few week, both Quick Service and regular restaurants off that lower base and youre see iing frankly even just the theme of the day, gas puchlss at the puch both on the merchant side, when we process r for the gasoline providers and also on the consumer side, on the cards they use weve talked a lot b about the fact buffett sold out of his airline holdings, but not his banks, which are pretty large. 10 or so. So this is sort of just a position there about now negative he is on the underlying economy. If he sold the airlines, but not the banks. Well i think thats a, thats a sentiment issue that we all have and its a challenge that we all have to balance what will thrive and survive in the second half of the year and into 2021 if you look at travel and l leisure, we expect thats going to be slower to come back onl e online i think we need to be selective in the Consumer Spend and restaurant and retail space however. I think that its great. What moynihan said about Consumer Spending coming back online and evidence of that in payments however, thats going to hit we believe that will hit a plateau in the second half of the year and were not going to get back to the previous levels of Consumer Spending so its going to be important over the next couple of months to think about things in the Financial Services industry what are those necessary things that are going to have f to continue to have to happen in the economy to move us forward in that environment, that we were hoping would start to accelerate, but obviously isnt going to given what weve seen with the virus so what types of names are you talking about . So i mean if you think of retail and look at brands like nike, theyre struggling now if you look at apple, if i think about more regional restaurant plays, i know the qsr numbers are picking back up, but i think theres going to continue to be consolidation then retailers you talk b about these low quality rallies things like l brand and gap. I dont think anybodys going to go back to the malls just because were able to. So i think we need to really differentiate on what are the sort of bear market rally stocks where as the sustainable Consumer Brands that i think are going to be able to have a competitive advantage and a mote around their business that doesnt rely on traffic. You mentioned apple now to another buffett investment apple, which is planning a bond issue. Apple plans to offer bonds with mature theties ranging between three to 30 years. Apple joining a slew of companies turning toward the debt market as the ten year hovers from its all time low. 637 . The credit market is open. Thank you jay powell and the fed for signalling its going to get involved here and unblocking that credit because a lot of companies have taken advantage sure. Absolutely. It really has essentially refreshed the Balance Sheets across Corporate America now apple of course, the markets always open for apple right now, they have several billion coming due theyre a regular issue. They have 100 billion in outstanding debt and this is somewhat retune. Apple has had a reputation of being a good timer of Interest Rates. In fact when they announced they were going to raise this money today, some were saying that treasury yields themselves ticked high e. In order, you have to make room for the new apple debt on the books a bit and of course they have tremendously advantageous borrowing rates. Under 2 you could go out almost 15, 20 years. So its going to be well received, but its emblemmatic of the fact those markets remain very much wide open. Theyve also got so much cash as we discussed last week when they reported their earnings and what they were going to do with that so why at a time when weve just revisited whether in recent years, Certain Companies were borrowing stock. Why are they doing this . Its you know, theres an argument that it creates a more efficient balance sheet. You dont necessarily want to be overcapitalized in the minds of the market theres a certain level of debt that offers a blended cost of capital thats lower as well as just giving you some kichbd flexibkind of flexibility they are a tremendous player also on the buy side of the bond market investor on the bond side as well not just in sfragt cash so its kind f a fascinating, very sophisticated Financial Company within apple so its not so much a no brainer that they would be, they would also have debt, but if they decided to pay it down, i dont think theyd be able to get down to their zero net cash goal, which is a longterm vague goal just by kind of letting the debt mature and paying it off so they just kind of maintain that level of debt holding for now. Weve got just under four minutes left the dow is flat in positive territory just about shake shack set to report earnings after the close kate has a preview for the first quarter, analysts are projecting shake shack will break even on revenues of 145. 1 million same store sales will be in focus. Shack did release preliminary results in april and said by 12. 8 for the quarter. They said its business in hong kong and china has started to increase steadily and that over all trends in the u. S. Had picked up so guidance as to what business might look like will be of interest. Back to you. Thanks so much for that and shannon, where do you stand in terms of some of these restaurant businesses . We touched on the airlines are these too hard to touch as well i think the majority of them if lets put it this way if youre really looking for something over the next three to six months and i think its early. I think the numbers are going to continue to ease downward. I would say that b global franchises as much we talk about that, if you think b about mcdonalds, think about yum brands, those are certainly going to have a broader geographic footprint and the recovery were see iing in chine spending that shack talked about in their prerelease is there in the data so i think i love mcdonalds i think its a great longer term brand but i would stay away from some of the more high priced restaurant groups. Things like ruths chris i think its early for those to be hopping in here weve got about two minutes left to go mike, what are you seeing in the market internals today well, thaf strengthened, but they started so far in the hole in terms of the to volume that its still a bit to the negative theres been improvement its getting toward 5050 up down volume on the New York Stock Exchange not quite there. So not the broadest rally. Has been mostly dominated by the large caps and Growth Stocks and thinlgs like that. Take a look here also at the s p fwens the equal weighted version. That also has shown you that split. The eagle weight has come back over the course of the day thep the vn the o volatility index, the it has giveren way. Seems sticky, but its continuing through at least confirm the levels that the equity market is at right now. Even if its fot bleeding at a rapid rate thanks for that just over a minute left of the session. Before we touch on the equity markets, just a summary of whats been happening elsewhere. The ten year flattish around 0. 36, putting on a huge day of bond market. Dollar moving a loot stronger dollar today up about half of one percent, which typically signals risk off sentiment. That was the case at the open but not at the close oil has improved throughout the session. Up b about 7 . 21 r for wti crude. Again that points to the fact that energy the best performing sector on the s p and finishing particularly strongly, the Energy Sector is up 3. F very much in the lead. The next best sector, technology up 1. 3 . Those are the only two up more than 1 . The laggards are industrials and financials both down more than 1 that equates to the s p 50 being up by a third of one percent and the dow is pretty much plat. The high was up about 40 points. The low was down about 360 the nasdaq, the best performing. Up 1. 2 . The russell and dow just climbing into positive territory as we approach the close meaning all four of these indices are positive as the bell rings for the close. S p 500 up about half of 1 . Remarkably resilient market continues. Welcome, everyone. Take a look at how we finished up the day on wall street. Stronger actually. Weve spent most of the day as you can see negative well off the lows we saw around the open and finished up 26 points thanks to some strength in technology and Consumer Discretionary stocks the s p 500 finishing the day up b about half a percent. 4 that is. For the year so r far, the p is down 12 nasdaq finished up, only down less than 3 so far in 2020. Even with all of the volatility and fear over the pandemic and economy. The russell 2000 index of small cap, its been understoperformig it closed up about. 3 Just Moments Away from earnings from shake shack, avis, a grk. Plus, former president ial candidate, tom steyer, cocha cochairs californias Business Recovery task force. Well ask him how much more testing needs to be done in ha state before california can get back to business and what its going to lock like joining us to talk about the market today, jason joins the conversation still with us, shannon from Boston Private Wealth group so to you, mike, on the market, the fact we finished higher, we continue to climb, i hate to use the cliche, wall of worry, but there are a will the of worries. Without u a doubt i think theres still a wide range of applause bable outcomes that investors are looking to in terms of timing the economy. We know that but on a day when the nasdaq 100 goes up 1. 2 , the reality of the market is just very difficult for the broad take to sustain a lot of damage. Thats what happened today the market we have does get protected by those big Growth Stocks when people again feel somewhat underinvested the market rallied up more than 60 from the lows into a zone that should serve as a resistance some sort of reason to flatten out and chop around. Thats maybe what were doing now in this area between 2800 and 3,000 on the s p a lot of people are saying you know that maybe enough for now well see how fundamentals settle up. Where do you stand in terms of wanting to be net low or defensive. To be honest, im r more defensive. Some rules putting together interpretertive my opinion. A lot of investors and others arent deep enough to really make a lot of sense for people having said that, i think value on the s p 500 is is lower to the extent to which you can do that its always an art to come up with the right earnings number but you know i think this recession is going to last longer than people are thinking. V shaped recovery might be very unlikely more likely going to be u, but what youre finding is the fact theres just a lack of other alternatives. There is one big alternative, that is cash, where weve seen a lot of the big money keeping their money, including Warren Buffett, who we learned is messing with his cash pile its a, it is a great point people at the, again though, you have to look at what the other alternatives there and in a lot of parts of the world, cash gives you negative most people dont want negative. Listen, im more inclined, i think the value is lower on the s p than where it is today, but i have the way im kind of threading the need iing l is is have more of a bias growth here. Than i did coming into the year. Coming into the year, i had more of a biased towards the cyclical stocks because i thought Global Economic growth would go up in mass largely because of the trade war between the u. S. And china was over its clearly not right now its not working now and to me, i think the inves r tors are going to pay out for Growth Stocks for quite some time shannon, another one of the headlines were Warren Buffett was never bet against america. You cant argue against that but how should peoples bets be weighted at the moment does it make sense to see europe for example significantly behind the s p 500 year to date, particularly given coming into this year one year three year, five year ten years, had already seen underperformance. For those of us who have a diversified port fofolio, of coe were looking for thachl i think theres two thing that have happened that are important. We see that return of production back in china. Were seeing the Consumer Spend. Were also seeing a reopening of the economy in europe. It happen before it is here. And finally, youre seeing some evidence there could be an appetite for corona bond or euro bond i think the one thing thats been missing in the europe story and it came home in 2011 is the fact there isnt this coordinated fiscal policy so all of this Monetary Policy can only do so much, but if we actually start to get evidence theres appetite in the core for a you know, coordinated fiscal policy in europe, i really think that could be an accelerate for european stocks over the course of the next few years. Valuation certainly there. Jason, do you really think that any investors are still looking at the possibility of a v shaped recovery . I mean i hear the u most commonly some people talk about the l some people talk about the swoosh but just because the market is looking like a v, not sure i hear much in terms of the economy. Why is the market doing so much better than the economy is what im asking you know part of that could be again going back to earnings, if you look at first call earnings, theyre absolutely expecting a v. Now they keep coming down every day. For this year and for next year. But the growth rate between this year and next year is still quite high and i kind of lost track of it, but as of last year, theyre coming down every ta as of last thursday, the 2021 estimate i believe was 170 its b probably down to 160 something. Right now. And this years number is probably less than 130 for the s p as a whole but thats the only place where i would say perhaps some maybe a v. Most people arent look iing r o a v shaped recovery. They understand the damage thats being done. T going the take some time to repair just want to get to the shake shack numbers and weve got earnings fractionally ahead. Two Cents Per Share. It was estimated to be zero. The forecast was 145 million what really jumps out is they put in a covid section and addressed the Current Trends in terms of weekly sales throughout march and april. March 11th week, you still saw sales growth was up 14 . Every week since then has seen sales decline. Talking a about year over year numbers. And the worst week of that came the week of april 1st. Both were down 66 year over year as weve gone through april, that decline year over year has improved, though clearly we are still declining year over year increases of 14 bottoming down 66 end of march start of april year over year and april 29th week still seeing year over year declines in sales to the tune of 34 . The shares mike after hours down about 1. 5 theres a section on liquidity up there, which i need to go through, but clearly one of the headlines on the call will be how they addressed the fact that they took some funding and then returned it. Sure. I think that trajectory you mentioned there in terms of week to week would not be surprise ing to see a lot of Consumer Companies start to highlight that mcdonalds had something spectaculsimila the to say also visa saying that volumes basically dropped to rock bottom minimal levels around mid april. What does that tell you . That means that the country went into shutdown mode then little loosenings you could look at air traffic week over week and it looks like these gains, but till down 80 or 90 year over year so i think thats the game were in now is is tracking how fast that approach is something more reasonable in terms of a sustainable level. R very difficult to know tough looking chart for shake shack if you look at a fiveyear. It seems like the market is is saying things dont necessarily look like they can turn very quickly for this business. Having a little pop here after hours. Reversing a decline perhaps after the company outlined some positive signs they say have begun to emerge. Lets get to kate for more on their results. Saying theyll incur additional costs in investments to keep team and guests safe such as face coverings and gloves directional signage and cleaning supplies, which are all expected to be ongoing for a period of time adding that given the dynamic and unpredictable nature of this situation, the company cant reasonably estimate the impacts of covid19 on its Financial Condition or cash flows in the future. The company will continue to monitor the rapidly evolving situation and guidance from international and domestic authorities. Also note iing that theyve stad the rehiring process for some of the furloughed team members as business slowly started to improve and also pausing developmeduring this cash conversation moment adding they have a number of shacks so pausing that for the time being and obvious this loan has come up quite a bit so any more color will be of interest. Back to you. Yeah so they were able to ultimately get that money from the market showing shares thank you. Keep us posted jason, i know you cant talk individual stocks, but restaurants in general, where do they fit in terms of how hard theyre going to be impacted not just the stocks, the earnings and comeback in the longer term . Well, listen, i think kind of depends on the model but i think the more fast food it is probably the better. Because theyve bb closer in terms of disposable income, its hard to see this Getting Better anytime soon mainly because obviously the Employment Situation it will impair what people have to spend. So i think its kind of ground zero i think there are real questions about the real estate on which a lot of these shake shack and mcdonalds value the real estate on which theyre sitting after labor most of the time, real estate is is one of the big e calls for a company. Weve got breaking news sorry. On starbucks kate starbucks Ceo Kevin Johnson is out with a letter to the companys partner, its employees, as the Company Begins to reopen some locations today. Johnson says by the end of this week, 85 of Company Operated stores will be b reopened across the u. S. Adding that hes expecting more than 90 of stores to be opened by early june under modified operations and hours. Very important point add iing the foundation of our approach comes from what we learned in china operating under revised protocals. Weve adapted these for the u. S. And our goal is is to exceed the standards outlined by the centers for Disease Control and prevention for a safe experience including heightened experience on cleaning. Johnson adds the company is is well positioned for this transformation because 80 of orders precovid r were coming through drive through, cafe delivery and mobile ordering back to you. Liking the news after hours starbucks popping two and a quarter percent. Kate, shannon, is this the kind of news you hear as an investor and it makes you encouraged . I think that starbucks is in a unique position because theyve had the position to open in china and are able to apply what theyve learned from that process in the United States i think the other thing to think about is when you go into a situation like this, we keep hearing Consumer Spending was slow iing in december and janua, but look at those shake shack earnings where they were showing same store sales increasing week by week, year over year, through much of this crisis into we moved into the shutdown period so when you look at these quality restaurants and these restaurants that have continued to grow their same store sales up into the poind of covid, those are the ones that are going to bounce back faster. Theres plenty of groups were seeing declining same store sales year over year in january and those are probably going to have that longer tail, more of the swoosh or u than starbucks and perhaps shake shack based on what they said today okay, thank you both very much for joining us. Mike and sara going to bring you news on this apple bond issue. So theyve issued a total here of 2 billion on three years. 2. 25 on three years. 1. 75 on seven years and 2. 25 billion on 30 years, so a total there of about 8 billion interesting to come to these coupons theyre paying so close to what the treasury note rs relative to any other company. Three year, paying 0. 75. Five year, 1. 25. Tenyear, 1. 65 and 30year, 2. 65 and mike, i guess it just goes to what we were talking about before the close, which is that apple can pretty much in any environment get a very attractive pricing yeah. If you dont need the money as apple doesnt, you can get it cheap. Thats definitely a lesson right here pretty well i think along the lines of what you might expect also the amount in terms of proceeds, more or les just replaces some of the mature bonds that they have on the books already, so essentially maintaining the leverage levels right now, but no doubt theres plenty of building fires that one point above tenyear say for that issue yeah, the full faith in credit of tim cook and apple ten years up next quite a lot less than italy paid for ten year debt amazing. Arent the negative yielding apple bonds. Which makes the point even more up u next on the show, were going to ask tom steyer about whether the state does have enough coronavirus testing to allow people to get back to work just outlining some new asesmeur on that front this afternoon back in just 90 seconds. Or could it play out differently . I wanted to help protect myself. My doctor recommended eliquis. Eliquis is proven to treat and help prevent another dvt or pe blood clot. 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Were getting a super competitive Interest Rate on our money. Were able to invest through the same exact platform. I really liked that they didnt have any hidden or extra fees. Sofi has brought me peace of mind. Truly thank you for helping me prepare for whatever the future has in store. Strong finish for wall street with all the major averages finishing ugh back to mike with versus value stocks what do you see . Pretty timely this was a very longterm look at the growth dominance overvalue stocks goes back decades from fidelity. Also taking a look at the current cycle which came about a decade ago with other previous growth advantage cycles starting in 1951, 1982. They lasted 17, 18 years the current cycle seems to be running ahead of those other ones which sukts if you eyeball this chart that maybe Growth Stocks dont owe you anything in the near future and maybe another version might be taking place in favor of value. However, that example there thats on this chart from 82 to 2000 replaced right now in the early 1990s, so that was just a brief backing off of growth in the early 90s slowdown recession then just picked up to go to record heights so i dont know if you want to draw broad conclusions here except to say dont be surprised if at some point down the road, the big Growth Stocks calm down. The question is is how does that happen value stocks come back or do you have a general downturn. Thanks very much for that now coronavirus cases around the world crossed 3. 5 million today, more u. S. States are moving forward with their plans to reopen the california governor Just Announced theres an array of Retail Stores can reopen as soon as this friday the state had announced business and jobs Recovery Task force to navigate its path cochair ed b tom steyer who joins us now mr. Steyer, good afternoon to you m thanks for joining us. Thank you so much for having me what is the key factor that you and your committee had focused on as to whether its right to make decisions like reopening certain Retail Stores on friday . Has the debate changed purely from preservation of life to quality of life being relevant as well . First of all, let me make it clear that the decisions are being made by governor newsome and that were an Advisory Task force to bring to bear information from the ground up in terms of people who run businesses, labor leaders and community activists. So his goal from the very beginning is to put health first. And to have us open up as fast as is safely possible. So from the very beginning and i think governor newsome has done a truly spectacular job of this has been putting the health and safety of californians first and is continuing to do so as we move into this phased reopening of the california economy. Whats your advice, tom, because when this appointment was announced, there was some concern that it wouldnt be bipartisan that you might push your agenda, clean energy and climate focus in a healthy and safe way. Let me say this we are in a true Health Crisis and in a huge economic crisis. And my job here but also my inclination and my values are to stand up for every single california worker. And every single ra kra business as we make these decisions Going Forward, were talking about trying to have a just green and prosperous recovery. But let me be clear. This is no time for partisanship, sara i believe to the core of my being that this is a time when democrats and republicans have to pull together on behalf of the safety of californians and americans and on behalf of the livelihoods of californians and americans. B there should be no question that im going to be collecting information passionately and considering every life and every job as equal and fighting for everybody. Im absolutely committed to the mission. In addition im committed to working across the aisle with everybody and i think our task force reflects that. If you look, youll see republicans and democrats. Youll see the head of the chamber of commerce and labor leaders. This is truly a representative task force to give governor newsome the best b possible information and advice real time, which is what were doing from the ground up so he has the best possibility of making the kind of decisions that we all u want him to make youre right. The its an impressive task force and its great to hear you say that politics goes out of the window at this stage what one criticism there has been or question raised there has been is that there was never a federal wide nationwide lo lockdown and states were left to their own devices as to exactly how they implemented lockdowns and went to reopen do you think its the right or wrong call do you support the local power and authority as states come to make the decisions to open or not . One, is its already happened whats happening is is happening. Let me say this. Governor newsome did a fantastic yob very early of recognizing that threat and responding to it and as we move forward, theres a balance that has been struck between the federal government and this state governments thats where we are. I think the state governments do have incredibly important leadership roles in this crisis. I think that a crisis really calls for you know leadership across the country governor newsome has done a fantastic job of preserving lives in california and i know that h as we go forward, hes going to want to reopen as fast as safely possible and those words in the Mission Statement about just, green and forward thinking where were putting the most exposed communities at the forefront of our thinking are not just words thats something thats deep in his thinking and its deep in the thinking of everybody on our t task force where is is california tom on testing . And is it where it needs to be and how critical of an issue is that for you well let me say this. The task force is really a jobs and Business Recovery group. And so testing is something that really falls in the purview of the governor and the Health Officials around the state and i know that that is something that is still ramping up but if you want to talk b about where they feel they are, thats something they should be addressing directly. I know its a big part of what they want to do, but our job is to make sure that we come out as fast as safely possible and in a way that works for the people of california and the business of california in particular emphasizing justice and the most exposed communities who are bearing the brunt of this in every way tom, were going to get the Unemployment Rate this friday. All estimates range from 15 to 20 . Its going to be worryingingly high meantime with the market close today, the nasdaq is is only down a couple of percent year to date how fearful are you that the responses from governments and Central Banks to this crisis will repeat a theme of 2008 and 09, which really helps wealthy and not those that need it most . Well, i mean as youve heard me say over the last few minutes, i think governor newsome and everybody on his task force is absolutely committed to not repeating that mistake. Of making sure that we rebuild a california that is more just than the that we brought into this crisis. That we absolutely make sure that the money doesnt go to the richest people in our society but that in fact its used how do you do that . Well i think theres a lot f ways to do it. Were going to have a huge opportunity. First of all, theyre supporting people in the short run. Weve broken it down into short, medium and longterm the short is getting money direct ly to people who need it most in the long run as we make investments to rebuild the state, we have to do it with an eye to inclusion and justice and fair an fairness its not just in terms of who gets the jobs and what they pay. Theres a whole rap of things as we think about rebuilding the state, it involves bringing people into a more equitable relationship one of the more obvious ones to give you an example is the idea thats been in california for a while all year before the covid crisis which is to bring everybody online so they can participate and be part of the 21st century by being connected with real fast Internet Connection much more important now than ever the kind of thing that takes investment, which i think this governor is is committed to. And which has stepping away from california, would Bernie Sanders and his idea bradley centrs be than b joe biden i think that people have to understand that joe biden is much more progressive than hes generally given credit for and if you go policy by policy, i think youll see that he is going to be a very strong representative of the downgrade. He was ahead of his time talking about if you think he is not committed to those same ideals thank you for joining us, tom steyer, good to see you. Thank you for having me weve got aig earnings just coming out Contessa Brewer with those numbers. Contessa hi there. Adjusted earnings coming in at 11 Cents Per Share versus the estimate of 72 cents it was really driven here by declines and investments and aigs combined ratio took a hit. Comes in at 101. 5 versus 97. 4 prt quarter. That combine d ratio is what it pays out claims and related costs divided by what it earns in premiums. So it paid out more than its getting in if losses were significant here, 419 million for the quarter two third of that related to covid19 272 million went to pay on losses related to travel, contingency, commercial property trade. Credit and Workers Compensation aig withdrew its previous guidance the ceo says that the coronavirus will be the single largest loss the industry has seen but says it wont materially afgt aigs return profile to shareholders in the longterm and by the way, the company will maintain its dividends. As you can see, the stock off two and a third in afterhours trading. Contessa, thank you just want the point to another after Hours Earnings mover for you. Cheggs shares are surging traditionally, the education tech Company Issued a forecast for its Current Quarter that was well above what analysts were looking for as more people are switching to Online Learning tools. The company says its expanding krirk lum and working to cut prices even further. The stock the trading at an all time high. Hard to find a company even issuing guidance even harder to find one raising guidance and this was actually a big raise for chegg. Very impressive next, well have the cochair of fds abt e of trustees outh amove to crack down on the Antibody Test and how that could impact plans to reopen the economy. Our members understand social distancing. Being prepared and overcoming challenges. Usaa has been standing with them for nearly a hundred years. And well be here to serve you for a hundred more. Zblncht france has seen its death toll go above 25,000, making it the fifth country to reach that grim milestone. That brings the death toll to 250,000. California has become the first state to borrow money. They borrowed 348 million after getting approval for up to 10 billion in loans illinois and connecticut have gotten approval for similar loans but have not yet started borrowing. In tech, movie theatres are some of the businesses opening their doors. Staff have been retrained on new safety procedures including wearing face coverings and gloves and keeping theatres under 25 of capacity. As always for more coronavirus coverage, head to cnbc. Com frank, thank you. This weekend, state across the country began to open up this comes as the cdc forecasts the daily death toll will nearly double by june according to an internal report. Accurate Antibody Testing is one of the most important tools that helps officials assess how the virus is spreading mt. Sinai has one of the fda approved tests and joining us now the rich friedman. Thapgs for joining us. How are you these antibodies . This has been a big for us for a on our last interview, wee terrific in diagnostics and weve gotten our approval for the basic qualitative aprooif b prove but the work is going on to improve the quality to make it so that its a quantitative test givering us more mag about whether or not youre immune u and whether or not you have the right antibodies there are a lot of Antibody Tests out there. Were used to being able to go for tests and relying on them. I think at this point, we want Higher Quality information from these tests. So rich, you want to get better information can we get certain definitive information or is that still months away . No, i dont think its months away were moving ahead to get more precise information on whether r or not the antibodies that you have actually provide the immunity against the virus youre going to start hearing more about is do you have the antibodies that will neutralize the virus. Thats what were working on how is the hospital doing youre a finance guy what were starting to see out of the health care spend iing numbers economically, theyre down huge because people arent going to be b elective surgeries or procedures or even Necessary Health care that they should be getting. How has that impacted new york which has been so hard hit in your Hospital System thanks for that question. I would say that the crisis continues to no one should get any false impression the numbers have come down a lot. We went from hospitals from about 2200 patients to about 900. But were still at this point we like all of our other hospitals in the new york region, really close d for business so the magnitude of the losses are pretty substantial at all the hospitals. You know were in the process of getting emergency funding from the government that were looking forward to you know soon were part of the 3. 5 program. But id say were not out of the woods yet and were continuing to manage under difficult circumstances, but we are feeling like we want to move into the next phase. The next phase would include being able to stand our hospitals back up to be b able to get back to doing the normal business that the hospitals co, duh but were not there yet. We have a ways to go how far away are we from being in a position to where you feel like you have adequate supplies to be prepared if theres a tick up in the fall and still be doing all the types of other elective surgeries that you would have been u doing normally a year away or ready for the fall well i think that yeah its a tough question the its the question that ken davis, our ceo, is focusing on with the link in our Management Team and theyve been terrific theyre focusing on whats the transition to stand ourselves up so we can provide the appropriate safety and environment to be able to go do your normal procedures that you would be doing that have been deferred until now then youre asking the right question is are we going to be prepared for a next wave if it comes and when would that surge occur and b obviously the sooner it occurs, the more difficult it will be to be able to get all of this surgeries and other visits in you know until so no one knows there theres no tick er symbol. No one knows when this is going to happen so we need to be b prepared quickly so that preparation for now is on standing ourselves up to treat to get prepared as soon as we can to get back into normal business and then be very prepared to move quickly if a second surge happens when f ever it happens n thats what our Community Going to expect us to be b able to do. Thanks for joining us also want to bring, i just one more question, rich. Sort of related topic. Really sad story lately. A prominent 49yearold er doctor committed suicide after treating covid19 patients there are concerns about Health Care Workers, doctors and nurses on the front lines dealing with depression and suicide and really traumatic experiences what are you guys doing to help your Health Care Workers deal with that . Well this is a big topic and you know when i saw the announcement of the woman who took her own life, it really shook me up and i sent an email out to ask our team you know ken davis and dennis where we were and weve now launched a new center for resilience, restress and for personal growth. Designed to focus on the ptsd that we expect will come and has already come to our Health Care Workers. The amount of death that theyve seen in the shorters period of time has never been experienced anywhere so its a programmatic approach to this in terms of screening, of what therapies can be provided, both on a group and individual basis but we take care of our is is our motto at mt. Sinai its a very serious issue and we need these Health Care Workers who are in a lot of chutzpah and togetherness at this point, we need them to keep standing up because we dont have another team theyre the team that has to go on to the next phases. Were very nervous about this and havent completed our studies yet, but we know that a very High Percentage of our Health Care Workers, not just at mt. Sinais hospitals, but around the country, are already sufing from ptsd so were focusing on they arapis and programs to be able to work with them and this is a key part of our focus right now the first it was get iting ppe d now u its focusing on providing the necessary you know health care, Mental Health care if you will, to our front line. Its a big issue thanks again for joining us great to speak to you. Thanks. Warren buffett turned bearish on airlines over the weekend. Up next, well ask jj callahan whhiy s clients in fact are bull ish on Airline Stocks. Back in a couple of minutes. 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. Find a stock basedtech. On your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. But when allergies and congestion strike, take allegrad. A nondrowsy antihistamine plus a powerful decongestant. So you can always say yes to putting your true colors on display. Say yes to allegrad. To staying connected yourrs way youre just a tap away from personalized support on xfinity. Com. Get faster internet speeds with a click. Order xfi pods to your home in a snap. Or change your Xfinity Services with just a touch. All in one place. Youre only seconds away from all of that on xfinity. Com. Faster than a call. Easy as a tap. Now thats simple, easy, awesome. Breaking news on l brands. Hi, dom. L brands is down about 16 aftermarket. 420 shares of aftermarket vol yul. This after the company has said they have reached an agreement with private equity firm to terminate their previously announced transaction where they were going to they were going to buy victorias ecret of the terms of that, the deal had not been disclosed however, l brands says they remain committed to establishing both companies bath and body works and the victorias secret franchise along with its other related entities to be separate companies to stand on their, by themselves so well see right now what the go forward process is to make each of those companies its own separate entity again, terms undisclosed, but a very Interesting Development there with regard to what theyre doing with victorias and previously announced acquisition. Back to you. Looks like what theyre doing is theyve given in them which actually wanted to block the deal and mike i know youre here as well. Because of whats happened with covid19 the fact that stores have been closed people have been furloughed. Whole different situation than when they went into by majority of victorias secret looks like l brands has caved. The interesting part is yes, thats what happened, but why was consideration given up what was given up with this deal what was paid . Did something happen with how they decided to neutrally part ways they did not disclose as to exactly what happened. Well actually i just got a statement from is Sycamore Partners saying Neither Party will be required to pay the other termination fee or other consideration as a result of the mutual decision to terminate the agreement. Ill continue to go through this but it looks like they just confirmed here that that deal was done and is dead that sycamore would buy 55 stake. Thats really all thats in there. No termination fees for required just going add that one of the reasons youre seeing a negative reaction with l brands, people really did think there was a chance this deal would go there through even though the circumstances had changed because apparently, victorias secret had some language in a contract saying a pandemic would not necessarily require as a change jim stewart has reported on that maybe they had some legal standing but decided not the fight it out at this stage yeah and l brands for its part says more information on how theyre going to turn around victorias secret coming may 21st when l brands has its earnings theyre going to put the cfo of the company in charge interim basis which is of course the weak brand under l brands and one of the reasons the stock has been to weak dom chu u, thank you after the break, Td Ameritrade out with its latest read on activity nts making surprising buys last month well discuss the names right after the break. At leaf blowers. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. And wells fargo employeese are finding ways to do our part. Need help like never before by helping people stay in their homes, through mortgage Payment Relief efforts. Helping local businesses in their vital role in the american economy. And helping hundreds of local organizations provide food and other critical needs. When you need us, wells fargo is here to help. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Were back Airlines Getting hit hard today comes as Warren Buffett announced the steal of his entire stake in the airlines he held a nearly 10 stake in american, delta, southwest and united the Airline Business and i maybe wrong but i think it, it changed in a very major way. The futures much less clear to me among how the business will turn out through absolutely no fault of themselves. He was selling. Whos buying new data from Td Ameritrade shows a number of their Retail Investors were buying travel d leisure stocks jj, good to see you. Thats a sort of stand out part of your monthly survey that a lot of your inves r tors were buying Airline Stocks over the course of april. Yeah, the measures what our clients traded its a little bit of a bifurcated report. There was the part that brought travel and cruise stocks and really the base of our clients actually bought stocks that are more dow oriented. Exxon mobil, at t, disney et cetera, but with the other money or whatever you will, they look at their longterm businesses that will come back, it was absolutely the airlines. United delta. American we saw the clruise lines on there. It was our millennial clients that brought the cruise lines. Now the other population has caught one buying Royal Caribbean and handled this no one in their right mind i think people are buying these and saying, this has to be a longer time frame investment i dont think youre buying these thinking the investment is coming back immediately. The airline buffet versus retail seems like a microcosm for whats going on right now, professional Institutional Investor investors, versus the Retail Investors who have been buying these gifts and buying over the last few weeks what do you make of that split. As i said, the exposure of our clients decreased a little bit this month compared to march, in march, the team is going to take a few more chances if you will. This month, outside the arlg and cruises, they state as i said to those highly correlated stocks i do think our clients are putting money to work and come out of the fewer fixed income trade in combining some equities i was actually surprised with that sarah, because i thought that with us going off like we had, we would see more diversity in the stocks that were bought one other interesting fact this month, there was only one tech stock on there, that being microso microsoft. Our millennium population bought apple. Kind of a strange you would think as we go higher, people would take more risk, if you will, whats under the technologies very interesting, keep us posted on the trend. One group of College Students making a big push to prevent food waste amid the coronavirus. How theyre helping food banks right after the break. California phones offers free specialized phones. Like cordless phones, phone ringing big button, and volumeenhanced phones. Get details on this state program. Call or visit and accessoriesphones for your mobile phone. Like this device to increase volume on your cell phone. phone ringing get details on this state program call or visit a look at positive stories in the wake of the pandemic. Taylor swift sending nurse Whitney Hilton a box of gifts ahead of her 30th birthday to thank her for her work in new york a customer leaving a large tip, giving the 1,300 tip to frog and bull restaurant a group of University Students launching a website called farm link to connect farmers with food banks. To prevent food waste during the crisis theyve saved 50,000 onions and 10,000 eggs from going bad callahan mclaughlin began to shift at the stand 9 30 each morning. Goes for 45 minutes after Ryan Reynolds called him a hero on twitter. The canadian version of the marine will he get a call from the queen . Up next, your wall street look ahead, disney the big earnings report. Whatever you need to be watching in that one next tomorrow, we have an exclusive inteiew thrvwi Richard Clarida dont miss that interview. 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. We hope you find our Digital Solutions helpful to bank safely from home. Deposit a check with your phone or tablet. Check balances, pay bills, transfer money and more. Send money to people you know and trust with zelle. Stay safe. Stay home. Together, well get through this. Pnc bank its a busy day for earnings tomorrow, disney which just got hit from a big down grade. Julia bore step orsten is here preview. Downgrading the stock to neutral and concerns about longer than expected impact from covid. And Morgan Stanley nearing its forecast the more conservative outlook on Disney Parks Disney parks are the division thats most impacted by covid. And its also the companys biggest divisionby revenue theres also bad news for disney, which includes espn. And the studio with movie theaters shattered the good news is that disney is growing faster than anticipated. It is also impacted by production shutdowns guys, back over to you well see if the 15i78 happens with disney. Final thoughts closing not far for the highs. In the green by the close which is not the case last night no, and its not its unusual to see in a period where were seeing such strong economic declines and earnings declines were going to get a jobs report on friday for the month of april. Thats going to look very ugly as weve seen from the millions of claims that have piled up the disconnect between the markets and economy i think continues to be a major neem, and also the retail Institutional Investor on where the market is going and what theyre doing. Lots more to discuss, melissa lee will continue the discussion next fast money starts right now. Guy adami, tim seymour coming up on fast, the Airline Stocks grounded after Warren Buffett throws in the towel on the group. Should you follow buffets leaf . Also, the forth may not be with disney
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