Transcripts For CNBC Closing Bell 20240713

Lineup of guests coming. Federal reserve vice chairman will join us exclusively in a few minutes for his first interview since last weeks fed meeting. Well also pespeak with the ceoo human there is a and a massive afternoon of earnings headlined by disney, ea, beyond meat and activision and well peek with actvisions ceo ahead of his Earnings Calls after the numbers come out as i said, were at 1. 9 with 59 minutes left lets moex fowlkes on the big stories. Meg has new developments on the treatment and vaccine front but mike, lets kick things off with you in the markets yeah, another day of fairly orderly levation in the indexes. Today its a broader rally even though its been led by the big tech stocks. A chart of the s p going 50 0 going back a year, were back up to the upper end of this crash levels last september, october, sort of going back to early 2018, an area where we gave a little friction to the rallies, but clearly, a market is acting as if big investors feel u underexposed to stocks on these rally days i would want to turn over to disney in advance of those results just to get a sentiment and valuation snapshot its moderated analysts are cautious. About 60 buy ratings. A stock like disney represents a little bit of unease about the outlook for obvious reasons, but if you go back to 2018, it was actually less bullish on net basis. New sell rating today not counted here because the firm is not counted. They look at the valuation because this is one of the issues when you have cash flow, projected cash flow declining right now. Obviously theme parks closed and studios not releasing movies and you have a lot of debt from that fox acquisition, that enterprise value to cash flow measure is going to look pretty high and by the way, the peak in november was when the stock was at 150 so right now, when its around 100, it still looks rich. Thats why a timing of a comeback is really a crux for disney right now and comcast has suffered since its earnings back to the broader markets. Again, strong correlation between stocks and the treasury yield curve. Yields are rising. Risk on equities rising, too the thing i find interesting about that given the sector constru construct, banks are at the bottom again regionals are lower. Even though yeeleds are rising and thats a disconnect thats held because of the general risk on risk off environment but its confusing longterm given what banks do when yields are rising. Youre right. Now obviously were kind of scrutinizing really small changes in yield even though theyre off the lows weaker driver of bank share but i do this think it references a little bifurcation going on in the market yes, todays a broader rally, but its not really housing relating stuff not the stuff thats credit centric thats working aside from energy getting a lift on oil prices so i dont know if we can pick it apart too much more than than that, but it seems as if its a market thats hit or mis the Growth Stocks work on the strong and weak days, but beyond that, it seems a little haphazard. North ameriasdaq composite l 1 up a record high crazy. Thanks regeneral ron and pfizer with updates. Meg. Hey, sara lets start the with pfizer and the vaccine race they announce d today along with their german partner theyve started dosing the first participants in their u. S. Clinical trial of their experimental vaccine and theyre actually evaluating four different candidates in a Similar Technology to moderna. Its messenger rna theyre dosing up to 360 healthy suspects we talked with pfizers chief scientific officer about how theyre ramping up the manufacturing even now we will have to fine tune the manufacturing process but youre talking about a number of months thats why we say we starting maybe around this period now, early may, with some early preparatory work we could have millions of doses in october tens of millions end of the year and hurricanes of millions next year and pfizer isnt the first into the clinic, but it is the Largest Company now already in human trials in vaccine development. You can see a list here of the companies that have begun. Those are the furthest to the left and others that are planning to start later this year and guys on the treatment front, regeneron providing an update they are developing a new drug to treat covid19. They plan to start human Clinical Trials of the drug in jub and say we could get results one to two months after the trial begins and they are planning to manufacture hundreds of thousands of doses in case that drug b works to have ready to deploy and that could prevent and treat disease. That stock has been on absolute fire. Wanted to ask you what you knew if anything and how much credence you put in this new study from Los Alamos National laborato laboratory the finding of a new strain of the coronavirus that looks more trans missable and dangerous the con ssensus im hearing that the research is interest, but very early i also saw u a tweet from Matt Mccarthy with a different staud di theying it looks like the virus might be mu u tating to become weaker. So as viruses mute tate and we have to watch to what happen, but it sounds early and whether there are implications for Drug Development well also keep an eye on but it sounds like Early Research thanks for that weve got 53 minutes left of the session. Up a nice 1. 9 dow up by 1. 5 after the fed, our exclusive interview with rich claireda 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. Dow up by 1. 6 or 370. S p 500 there up 1. 8 and nasdaq doing well up 2. 2 and russell up 2. 2 individual Market Movers shares of Norwegian Cruise Line plunging after the Company Raised the b oblty of bankruptcy in a new filing, about its ability to continue and warning it may be at risk for default and expects that report a loss for the quarter. Down 22 wendys stock declining after the analyzed every menu and found that 18 of locations have listed all beef items as out of stock. The shares are are down 1. 2 the index dropping in april. The first time thats contracted since december 2009. Joining us now to discuss the economy and actions the fed has been taking, Federal Reserve vice chairman on news line. Glad to be on the show. Hello. Why do you think the economy is performing so much better thousand u lets talk about the economy and were living through the most severe that weve seen in our lifetimes and its not a typical downturn. Recovery could begin in the and a half of the year and that today is my forecast but what we said in our statement is this pandemic does pose really considerable risk to the outlook and the course of the economy is really going to depend upon the course of the virus and the mitigation effort, what i can say about the fed is were using our full range of tools, our rates, Balance Sheet, Forward Guidance and lending facilities to support the economy through this time and our policies we think will be very important in making sure that the redown will be as robust as possible but were in for a period of some very, very, very hard and difficult data that weve just not seen for the economy in our lifetimes. Thats for sure. So are you saying though its realistic to see a positive print on gdp as soon as the Third Quarter . I think thats certainly in the range of possiblility. Again, its going to depend on the course of the virus. Its a range of views among economists and forecasters out there, but certainly thats one thats a possibility. Thats my baseline forecast. To be appropriately humble as we are navigating through this period what about the job picture. What do you think about how high the Unemployment Rate is going to get and how many of those jobs can come back when economies reopen unfortunately, the Unemployment Rate is going to surge to numbers that again we have not seen probably since the 1940s. We know that from the initial claims data that around 30 Million People have filed for claims in the last six weeks and so the numbers well be getting soon will be very, very elevated as i said, the course of the economy will depend on the virus and a range of scenarios, but there can be a rebound in the economy once businesses reopen and people return to work. But i think realistically its going to take some time for the labor market to fully recover from this shock but thats very uncertain at this point. But i do think recovery can commence in the second half of the year in the meantime, the fed b has been putting its measures in place and so has the federal government weve seen actions like ppp and other forms of Economic Relief do you think its enough to bridge us to the reopening, to keep people on payrolls and businesses open in a meaning fu way or is there going to be to have more there if the government in terms of Fiscal Relief let me talk first about the fed then a bit about fiscal policy were using all available tools. Weve cut the policy rate the zero. Since march 17th, weve announced nine new facilities to support the flow to households and businesses we think we are building a brinl r fbridge for these facilities until the economy can recover by stepping in and supporting lending. Weve p seen some evidence that its encouraging the private sector to lend in particular, weve seen a lot of issuance in the Corporate Market the cares act was essential because you know the fed has Lending Authority but not Spending Authority so what we can do is lend money to compani companies, we cant transfer income to households and firms the cares act, paycheck protection and Unemployment Benefits and other provisions was very, very important to the economy. And it may well be the case depending on how the economy evolves that more policy support will be needed from the fed and possibly also fiscal policy. Swr just depends on how this evolves. Before this crisis, over the past five or six years, theres been a lot of analysis on how far the ecb and bank of japan have gone with their monetary po policy and some criticism in part because of the decision to buy Corporate Bonds and even equities in japan. How much do you regret the fed had to go that far this time even it was needed is it a shame that you had to go that far well, i would not use those words. I think that none of us alive today have seen a like this and under chair powells leadership, the community was united that we needed under very unusual circumstances, which is the language used in our legislature that we would set up these facilities now theyre temporary. Indeed all the facilities that we have set up are scheduled to expire september 30th of this year in term of new lending. New loans we make will remain outstanding. So this is Emergency Authority this is an emergency it is Emergency Authority and at the point h that the economy has weathered and rohrered from this, we at the appropriate time will scale these programs back so its not really a regret. Its what we need to do given the nature of the shock and as i said, these are emergency facilities that are very timely and needed at this point and will be scaled back at the appropriate time when were through this difficult period. None the less, do you think u theres going to be a longterm impact on how market par participants price risk . You know i think that it would be to forecast Something Like this pandemic and again, we think this is an unusual circumstance we can discuss more the way these facile theties are are set up as you know, the congress in the cares act appropriate ed funds o the treasury for the specific purpose of vesting in these lending facilities to support the economy through this period. So theres a lot of you know, theres a lot of structure and legislative language behind these programs what about the criticism that you know, the programs that youve designed, the nine of them and the action youve taken has really helped wall street much more than main street i mean the fed is familiar with these. We saw it back in 08, 09 but the fact the market has soared while unemployment claps are soaring. The fact the credit markets have cleared up and Companies Like carnival can borrow and people are still getting furloughed left and right i think the economy is going through an as chair powell said today, this is really a heartbreaking development were seeing with in particular in the labor market so were certainly aware and attuned to that. But i would say about main street obviously is supporting the economy and these new facilities providing these programs including the main Street Lending facility that weal be launching soon and the other facilities for example in town in which case well be supporting Consumer Credit in our programs were buying a lot of mortgagebacked securities and a lot of folks in homes. So i think the broader picture is is that we are providing support to main street and we dont want to minimize the difficult challenge the economy faces near term. We are providing the appropriate support and we are continuing to the economys on the road to recovery. Especially for main street so youre clearly putting in a lot of liquidity to a lot of different xacompanies. You cant lend to insolvent companies, junk rated companies before this crisis what kind of bankruptcy picture do you think is going to emerge out of this crisis in this country . Well, i think its too soon to tell. I think its going to depend upon a number of factors here. In economic downturns, there are those events were in recession and so some of that is going to be inevitable i think our focus as policymakers is to make sure the economy recovery when it begins is as robust as b possible but we cant minimize that we are in a recession here and of course it is a global recession as well and thats an additional factor how permanently scarred do you think the u. S. Economy is going to be as a result of this pandemic well, sara, i think the honest answer is i hope its not scarred. I think that theres that risk depending on the depth of this recession and the contours of the recovery im hopeful and the fed is doing everything we can to minimize the amount if any offor scarring, but again as weve emphasized given the nature of this shock, its going to be essential that fiscal policy also continue to provide support through the economy as well and in particular, that can help to sustain the capacity of the economy through this period. If we do head to another shutdown or downturn or sec wave as so many prominent doctors say is inevitable in the fall, what else can the Federal Reserve do . You have nine programs rates at zero. Open ended qe. What other b rabbits can you pull out of the hat . Well i dont know about b rabbit but we have a toolkit that were deploying now and we can deploy more as needed in the future certainly in terms of our lending. Certainly in terms of our Balance Sheet and certainly in terms of our guidance. And you can be assured that we will be doing that is there a limit to what the fed can do well, there is not a statutory limit. Our Balance Sheet is a decision we make as a committee u under the appropriate guidelines and under the particulars, lending against credit in the expectation that we can repay o expand those lending programs. Congress appropriated more than 400 billion in the cares act for the purpose of investing in these fed lending pha a silties. And only b about half of that has been allocated now so theres certainly more that can be done on those programs as needed we appreciate the time. Thank you so much. Thank you, sara i just to add as well, we did see the market just slip a little bit during that interview. Whether its reacting directly to his comments or not we did see if we can get the intraday chart up. Theres the dow ticked down around the start of it where there was some sort of modest outlook for the economy saying that its only going to begin in the second half. The its very tiflt to forecast and this is a r srt of once in a lifetime type scenario, but as you can see, only up 1. 2 now on the dow. Meantime i thought actually his comments were encouraging in the fact that the fed is all in and even willing to do even more when it comes to expansion of f the Balance Sheet or stimulus theyve provided more programs. Not out of bullet s and that the stand ready to do so to bridge he didnt talk about permanent scarring, which many we talk to on our air, strategists, economists, say theyre worried about. The permanent shock this could have on the economy. Absolutely. Towards the end of the interview suggesting theyre ready to do r more either way, were off the highs o the sessionful still up 290 points on the dow. Meantime, breaking news on air bnb. Air bnb is laying off nearly 1900 employees that accounts for ant 25 of the its workforce. Brian chatske poke to employees today and told them of the decision he says theyre going back to its roots. That means slowing the pace of investment on things like professional hosts and bringing more hotels on to the platform a big push that it has made over the last few years he says theyre collectively living through the most harrowing crisis of their lifetime and as it began to unfold, quote, Global Travel came to a standstill he says the business has been hit hard with revenue this year forecast to be less than half of what it was in 2019. Of course in response, air bnb has raised 2 billion over the last month or so when talking about how he knew these actions were ready, he said it began clear when he faced two hard truths. One, we dont know exactly when travel will return and two, when it does return, it will look different and as you guys know, r very well, these are just the latest layoffs sadly in what weve been seeing a stripg of layoffs. There was lyft lime were hearing that uber may be next reportly dara is getting ready to make a decision in the next two weeks. Back to you. Compared to their rivals in hospitality sector like hotel, theyve come into this with a much lower head count in the first place ch im a little surprised to hear they had 6,000 employees to begin with. Full time i guess. Its been building up yeah, a lot of those are corporate employees then you have to remember that air bnb was actually ebitda profitable for two years running. According to sources, but recently, its really been expanding that push. Its been going into real estate, partnering on actual hotels something very similar to it though they dont call it hotels theyve been bringing more to it on the platform. Theyve been bringing out the super host and professional host experience so when theyre looking to pull levers in this extremely uncertain time, those are the things that have to go and a few weeks ago, brian did tell employees that layoffs werent off the b table. Im looking at the memo. Its a about three pages long. You know, a lot went into this obviously as any company decides to do layoffs, but i think its really interesting to hear what he says about the future of the travel industry that they dont know when its going to return and when it does return, it will look different so theyre getting ready for that thank you were going to stick with travel because Airline Stocks as we know have been decimated by the global shutdown, but what will air travel look like when those restrictions are lift edlifted . Phil take a look at shares of unit ed down another 4 today. This is after the company sent a mem e o to employees saying were going to be cutting at least 30 of our management and administrative jobs come october 1st and when you look at the airlines and united, three things are impacting them. Over the next six month, youve got large layoffs expected this fall big losses throughout the yearment certain ly in the secod and Third Quarter and low passenger levels theyre off about 94 . The key is going to be making people more comfortable. Not only getting on board, but also going to the airport. Youre seeing a number of changes from Wearing Masks on board to doing other things. As a result, the result is an industry in transition nobodys sure what happens next. Quickly take a look at shares of alaska and this is a company that reported earnings this morning. Guys, were hearing two voices here this is what you get when you have gremlins in studio. In the bureau. My report, a couple of seconds after i give it to you back to you. Okay. Thanks so much for that. Sorry. Some technical issues i believe at the end of that report. Thank you very much. Lets have a look at whats driving the action more states and countries around the world are moving forward with reopening despite variations in how successful theyve slowed the disease new data shows the Services Sector fell into contraction for the first time in a decade, but that plunge still slightly better than expected we are now up less than 1 on the dow. Only 230 points. Still ahead, the path forward were sports as major leagues remain on pause. Well speak with dana white about a decision to go forward with a fight this weekend in florida. Heres a check in on ponbonds yields moving higher today. Tenyear, 0. 65 . Our Retirement Plan with voya gives us confidence. Yeah, they help us with achievable steps along the way. So we can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Oooh, well. Im good at my condo. Oh. I love her condo. Nana throws the best parties. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Time to get a coronavirus news update with sue hello, everyone heres whats happening at this hour researchers say the coronavirus has already mutated and the dominant strain appears to be more contagious. The new strain is the one spreading. If it mutats again though, it could limit the effectiveness of the vaccines developed President Trump says he will wear a mask but only if required to while touring a honey well building just last week, Vice President pence was criticized for not wearing a mask while touring the mayo clinic. The New York Times reporting that a government scientist has filed an b official whistleblower complaint alleging the Trump Administration pressured him to steer contracts to clients of a welling connected lobbyist dr. Rick bright who filed that complaint was the director of the bio medical advance d are research and Development Authority until his removal in april. As always, you can get more coronavirus coverage by going to cnbc. Com mayo clinic then the company that literally manufactures the mask just wear the mask. We are all Wearing Masks these days so just join the group. Thank you as always. 25 minutes left of the session as we stand, we are up just under 200 points now on the dow so just slipping whether the rich clarida triggered that or not. After the break, shares of humana higher today. Well speak with their ceo about that move and much more, next. 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. At t knows you have a lot of things on your mind. Staying connected shouldnt be one of them. Thats why were offering contactless delivery and setup on all devices. And for those experiencing Financial Hardship due to this crisis, well work with you to keep your service up and running. Hi because at at t, were always committed to keeping you connected. 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 zblncht shares of humana are up. Announcing today it will be waiving all out of pocket costs for behavioral care for medicar advantage members. This after the company said in march they were waive iing all of pocket for coronavirus treatment and testing. Very good afternoon. Thank for joining us thanks for having me talk talk us through those measures and when they come into effect and how long theyre in effect for they dont come into effect immediately. More importantly, theyre on the basis of what our responsibility is for our members their health and well being. We started this virus when it first entered the containment phase of waiving all copay for the treatment and testing of the covid virus. Now as we enter the recovery phase, we feel its really important for our members to begin to start using the Health Care System. Specifically in the prevention and primary care and Behavioral Health whats most important about this announcement is that all of our members are aseniors and the majority of them are on fixed income less than 20,000 so waving a copay is a significant barrier of using the health care m what do you see as far as it relates to the pandemic in terms of claims. What kind of uptick in demand. Theres a lot of sick people and that number grows every day. Yeah, we are seeing it on a covid19 side obviously with the number of members using the more intense services such as the icu area and respirators but we are see iing thats one the cores is to stimulate the area that our members are are getting the proper care. Were seeing delayed care in those areas and we believe its an important part for our members as well as the providers to restart the Health Care System bruce, to what extent have your revenues been by procedures not taking place and do you foresee a full bounceback in that activity at any point many 2020 or is this something for next year . It will be slow we do think that its going to need some time before the confidence of safety and the concerns and our members and all individuals using the Health Care System will have to get comfortable with so we think it will be a slow return to normalcy weve seen a number of do doctors try to bridge that with the telemedicine what has your experience told you b about where this b works and whether this can be a permanent solution for some of our medical care we think its got great opportunity. We are excited about i one of the things were seeing is the acceleration of the virus or the virus is is giving an acceleration into some trends and thats really around opening the Health Care System up and allowing more convenient settings telemedicine is one and for a number of different specialties and including primary care and in addition the ability to use the home as another opportunity and a convenient time. So we are seeing, you ining yoo see a different Health Care System as a result of the virus going to be more distributed in the ability to deliver care. Bruce, thank you for joining us with the update thank you for having me on. Thank you. You, too. This is the last commercial break were going to take before going into the close up next, uninterrupted coverage of the final minutes of trade when we go inside the market zone you can always watch or listen to us live on the go on the cnbc app. Dow east up 145 points well cover it all in the market zone next. Sometimes the challenges of todays world make it tough to take care of yourself, thats why you can rely on natures bounty. To give you the support you need. To stay motivated keep active and sleep well. Add a little more health to your day. With natures bounty. 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. Im going to start the bidding at 5. Thank you, sir. Looking for 6. 6 over there do i hear 7 . 7 in the front 7 going once. Going twice. Sold to the onion lover in the front row next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowedout loaf of sourdough bread. Dont get mad get e trade and get more than just trading investing. Banking. Guidance. Commercial free action coming into the close. Mike is here to break down the crucial moments and today, weve got barbara durn back as well. Good the see you lets kick it off with the broader economy. Just spoke to richard clarida. Got his outlook for the economy. Listen there could be a rebound once businesses rope but i think its goin to take some time for the labor market to fully recover from the shock but thats uncertain at this point but i think recovery can commence in the second half of the year. I think the broader picture is that we are providing support to main street and but we dont want the to minimize the difficult challenge the economy faces near term but we are providing what we think is the appropriate support that we can and were going to continue to be forceful, proactive and aggressive until were confidence that the economys on the road to recovery. Especially for main street fz. So he promised that there would be more if the economy needs it, mike, but also sounded fairly optimistic, i would say, about the path i even followed up and said can we see positive growth as soon as the Fourth Quarter and he seemed to indicate yes i almost wonder if there was a slight tick down in the market and i was wondering if he was too optimistic for a market totally dependent or loves the idea of fed stimulus i agree that the idea of a positive number in the Third Quarter is on the optimistic side, but the market has been leaning somewhat in that direction. Meaning soon er versus later process of restarting Economic Activity so im not sure if thats what kind of pulled the rug out from the market in the last hour or so it also seemed like we were just drifting higher to the upper end of the range and bumped up against some levels in all the rest of it but i do think that you know he did accentuate again you dont want to minimize the median term risk to the economy, echoing what powell said halast week. Whatever the cause of it is is, very much the recent suffer, laggards that have moved a lot financials and energy was one of the best performing sectors today and financials in the red. Therefore, the russell which have been performing pretty well is now only up 0. 6 on the chart of the russell really shows that sudden profit taking about 20 minutes ago. We had two days of kind of furious outperformance by the laggards smaller stocks then it gave it back i think what it mostly says is everybody can look at the dynamic where it looks stretched. Looks like theres been a run of tremendous dominance by large Growth Stocks and how long can that last. Just not a lot of conviction behind that call because the fundamental outlook is still pretty foggy at this point so i do think thats why you have this. Reporter kind of tactical set up here when nobody really agrees on what the economic realities are. So the market just tested out a certain direction. Then sometimes does and sometimes it doesnt the resilience of the market can really be shown in the nasdaq earlier, i said that it was down a percent from the record high what i meant was for the year. So its now down a percent or two for the year and off less than 10 from the record high. What does that tell you about the market and outlook to me, it says more about the composition of the nasdaq and its really tech heavy and a lot of the names, whether its amazon or netflix, that are really driving this. Of the stay at home. And theres a lot of tech names that are secular growers that can really perform regardless of what the conditions are, so i think thats really whats going on. What mike said is people are going to be trying Different Things because nobody really knows. We have no idea what the earnings are going to be or how long this is going to take the to unfold. I think its going to take quite a while. Not going to be at the end of this year. Shares of wayfair are surging. Hitting all time highs as more consumers do their shopping online the Furniture Company also reported it has 21. 1 million active customer, up 29 from last year and while Many Companies are pulling guidance, wayfair says it expects to meet r or exceed its guidance of 15 to 17 growth. Wayfair offering a stark contrast to additional retailers struggling like j. C. Penny, Niemann Marcus and j. Crew, which officially filed for brup psy on monday. But barbara, where do you stand within the retailersers and what type of exposure you want . Well its interesting on a name like wayfair because wayfair in my view has to be at the rate, the company at the right place in time. Whether its sustainable is the question because theyre an e Commerce Company outside of groceries its who has the best e commerce and whether thats walmart even nike weve seen how well theyve done in china aingd thats really been the big decision here and i think this is really even once the economy opens up fully you are really going to see a continuation of this momentum because the bricks and mortar stores, theyve got real problems because by the time they can really go back to full business, theyre going to be in serious trouble because it is not going to be a snap of the fingers where the stores will be packed social distancing and all that will continue well into next year in my view unless we discover a vaccine or they are p putic, which is not out of the question obviously, the j. Crew bankruptcy grabs a huge headline mike, if theres a distinction between companies that are hurting right now that were hurting before, you know a lot of people, j. Crew hasnt innovated since the cashmere cardigan like 100 years ago. If thats a point of differentiation versus Companies Getting dragged into this shutdown and having to close, liquidate or go bankrupt as a result of that right right now, what youre seeing in terms of the casualties, those that have filed for bankruptcy, they were bad businesses attached to bad Balance Sheets you can talk about the styling, but item going talk about how it had too much debt to carry for the business that it was producing. So all those things are true and right now, its not that huge a b problem for the market as a whole if in fact it is just kind of call of the weaker players out there in some of these impaired Balance Sheets. If it goes to the other side, which i think is what the fed program is mept to prevent, to saying dragging solvent companies into an insolvency situation because simply you have no revenues and cant make their bond payments. So right now, were in a zone where it is the kind of known kind of losers of this economy that are being pushed over the edge the longer it goes, maybe that changes, but right now, i think the its exacerbating the trends that have been and warefair a great example. It has three times the market value of williams sonoma, which is pottery barn. Lets hit disney leading a wave of earnings julia has a preview of what we should be watching investors are looking to understand the extent of the damage from coronavirus on disneys Parks Division with all the parks closed, also b on its tv division with an advertise ing recession. Guidance are overshadow First Quarter results before the virus full impact Analysts Expect earnings to drop to 89 Cents Per Share while revenue bolstered by the acquisition of fox is expected to grow to 17. 8 billion disney shares are down by nearly 30 this year. Its worth noting that over 60 of analysts have a buy or overweight rating on the stock back to you. And first time under the new ceo, julia, what can you tell us about what this has been like such an odd time for a ceo transition where so many of their core businesses have been hurt yeah. Certainly a crazy time for him i do expect well hear from bob iger hes still executive chairman but i think its worth noting that champion eck is going to work on his experience running disney ice pas park experience how theyre going to reopen them, how theyre going to weigh the fact that attendance may be diminished for a long time this is the first time that investors have really heard from him other than when they made that announcement and we sat down for that interview, so it will be really interesting to hear his perspective on everything going r forr ward disney does not provide actual guidance, financial guidance, but i expect well get direction on Different Things. Bob iger presumably wont be on the call, but a lot of people are discussing hes there daytoday, helping chapek out well, he is executive chairman so i so expect him to be participating in the call if only to be reassuring investors hes still involved. I expect chapek will take the lead hes the ceo but well hear from iger as well as the cfo on the call at 4 00 p. M. Today. His legacy as ceo, the share price locked in gains back down 20 or so net since he stood down three month ago, bob iger m well see what those numbers are. Thank you very much for that wells fargo, something crossing the tape theyre facing government inquiries into the ppp loans system im sure going were going to have lots of headlines like this to come. This is the first weve seen like that in terms of the ppp program and wells fargo. Coming across in a filing. The stock for wells fargo is down more than the other big banks. It was any way before this crossed. Down 3 down 3. 6 today and citi, the two have tracked to the upside and downside, is down 2. 3 in the regionals also down more than some of the investment banks i think it had already been moving during the session, but part of sara the broader sell off that weve seen in the last half an hour though, the banks part of that wells fargo in particular. On to adi trkadita roy. Investors will be taking a close look at how beyond meat is responding to those meat shortages with retailers like costco and rations investors of beyond meat which include brett thomas tell me hell be watching for signs of the companys innovation pipeline can meet the extra demand the street also wants to know how much the company has been hurt by the crippling of the restaurant industry. More than half of beyonds sales come from eateries if theyre beginning to be shifting more products from restaurants to retail, that will put pressure on its margins. Thanks for that where do you stand on this one, barbara . Beyond meat. Clearly structurally, benefitted late, but had run up a lot coming into this last few months it did. Beyond meat is a great story theres clearly a secular shift going on people want b to be healthier, eat less meat. The total market size has been quadrup rupe l over the next te years. Theyre into the restaurants, casual, quick service. Just in time for this downturn so weve got to see that they have to stamp out. One youve got the mcdonalds test Kentucky Fried Chicken a bunch of tests going on and they cant be going well so the question is are the Bigger Companies who are testing going to stick by them and id be interested in their commentary on the call and what they see there because you know i think in this kind of thing, you stick with the tried and true, beyond meats product is new. Customers will probably go to things theyre comfortable with. It may not tell us match up, but what we need to know is what the mcdonalds of the world will do. Three minutes until the closing bell as we mentioned, weve been losing steam throughout the hour cut our gains in half since 3 00 p. M. Financials dip iping into negate territory. Mike more on the market internals. What do you see . Theyve softened up as well as you might expect. Earlier today, volume about 75 to the Positive Side you had this wave of selling just after 3 00. Seemed to kind of take down the broad list to a fair degree so its more mixed right now. North ameriasdaq remains the eng leadership look at new highs against new lows youre still starting to print a decent number of new highs each day. For the nasdaq speckly, less so for the New York Stock Exchange then volatility index again its been kind of reluctant to really give up a lot of that premium, that little bit of anxiety and volatility thats been in there that remains the case so its an in between mode where it has this big spike on the vix chart but its not down to levels that will really suggest were back to anything like a normal cadence in market activity thanks very much for that one minute and 20 seconds left until the close. Quickly touch on some of the noneck quities asset classes. Oil has been strong today. Up some 4 or 20 . Initially, the Energy Sector was the best performer it has slipped during the day even if crude has not. Weve seen yields rise that typically has been good for equities meantime, weve seen the dollar increase as well up 0. 3 . That typically hasnt been great. Indeed, that increase happening toward the end of the session. S p 500 as we stand up just 1 the dow up 0. 65 or sa 155 points, which is much closer to the low of the session than the highs. The high of the session for the dow was up 420 points. Nasdaq just ahead of the three major indices. The russell is only up 0. 8 now. As energy and banks have suffered in the last hour of trade. So has the russell all of them sectors though we should say are higher. So financials, well just dipping into the red followed by staples and materials at the bottom. Still a positive session here on wall street extending what has been b a positive week of course so far a decent day yesterday as well s p 500 closing up 0. 9 . Sara and welcome back, everyone. Theres the bell second day of gains. For the major averages well off the session highs and really lost a lot of steam throughout the final hour of trading there. The s p 500 managed to close higher little less than 11 all sectors were positive all day and at the close, ten out of 11 sectors Green Health Care was the outperform rer. Financials just dipping into the red into the close closing down just a fraction the nasdaq also having a good day. Faang related names continue to power this market higher nasdaq earlier in the day made a run at going flat for the year, but then lost steam there toward the close and were down more than 1 now for the year more than 10 off record highs nasdaq, no question, the outperformer lately. The russell 2000 index of maul caps which has been outperforming closing the day off the highs. Investors turning their attention to what will be a wild after hours session disney, activision, electronic art, beyond meat, mattel and Virgin Galactic set to report results in the next few minutes and well ask the ceo of Activision Blizzard of how sells are impacting with so many people staying at home right after those results hit. Plus, well discuss a path forward for sports when were joined by ufc president , dana white. Hard to think of a sport that has such close contact joining us to talk about the market today, barbara is still with us. First to you mike on just the continued resilience i didnt see a major catalyst for the market though people still continue to point to new headlines around states and countries reopening like california. Like new york. Like negermany and hong kong. Right just really the focus on the incremental Movement Toward reopening that seems like it can buoy the market on a given day but no real hard news on when its going to happen so i dont think you had a great explanation. If you view it to consolidate that big rally in april, it makes more sense to see this weve got earnings out. Electronic arts. Lets go to josh for those numbers. Josh not clear if thats comparable to the 98 cents the street was looking for bookings coming at 1. 21 billion. The streets estimate was 1. 19 billion. Looking at the q1 forecast, 93 cents. Again, made it clear whether thats comparable to the 36 cents. Bookings, the forecast is 1 billion for q1 for the year calling for eps of 335. Were not clear whether thats going to be comparable to 496, but the bookings estimate, 5. 55 billion. The street was at 5. 37 billion digital net revenue, 1. 22 billion. That would include Live Services so thats in game transaction Subscription Services as well as mobile and digital down loads. Packaged goods at 168 million. I checked in with oppenheimer, i asked andrew what are some of the big trends he wants to hear about. One thing, as traditional live sporting events get canceled, what kind of impact does that have on eas bread and butter on the sports f s franchises well be on that call at 5 00 p. M. Earn. Back to you. Josh thank you. Shares down b about few Percentage Points here after hours. It looks like a Strong Quarter cheerily people clearly people e are gaming and streaming was this just a case of the set up it was stropg into earnings . Probably. It was at a new post crash high. It has been on a decent run. Also its acknowledged they have tail winds here during this phase aingd one nd i think one s things is peoples willingness to bet on the exception to the rules, the right place at the right time barbara, do you know these types of stocks stay at home is the theme, theyve run up a lot . Yes, i still do because i do think have to have a viewpoint about how quickly an economy will open and i think its going to take a while longer its not evenly shaped the consumer will spend less save more. Some jobs wont come back so youll things like this have more traction than normally. Theres profit taking after hours. The same thing will probably happen to activision i think after the company does its update one thing you want to hear about is their vstrategy for keeping these players. We want to know how many new ones my guess, too, is on the sports franchise youll get more traction there because people will want to see their teams but i think these are names you can stay in. Profit taking is normal. But you dont need to sell here. Eas down about 2 or so after hours. Activision blizzard numbers are just crossing. Looks like a decent beat here so perhaps better ea numbers. Rev nigh came in at 1. 5 billion eps, decent beat there adjusted, 76 Cents Per Share forecast was for about 38 Cents Per Share. Also getting guidance Going Forward, the q2 guide strong as well the forecast was, expectation was 1. 3 and ep is s zero 64 per share where as the expectation was 039 and full year guide better than expected although perhaps not as strong for the full year guide as it was for the q2 guide and q1 numbers. Activision, up 1. 8 compared to ea down a couple of percent in the afterhours trade and i would mentioned to mike, the set up was stronger so beating strong expectations in a strong set up it seems. Yes it appears that way. Its been kind rule for the while. Maybe questions on the more distant guidance a front loading of bookings. Call of duty. Modern warfare a a big part of the story. Well get to that in a second with the ceo, but disney earnings are out julia. Disneys earnings missing estimates comeing in of 60 cents per hair thats 29 cents lower than analysts estimates for that eps number revenues beating estimates coming in at 18. 01 billion versus 17. 8 billion and here in the release, disney breaks out the cost of covid saying they estimate that the covid19 impact on operating income at the parks and products segment was approximately 1 billion primarily due to revenue losses as a result of closures. In total, they said the estimate that the covid19 income the Current Quarter income from continuing operations was as much as 1. 4 billion that includes the park segment as well as lower advertising revenue. Media net works and direct to Consumer International driven by a decrease in viewership reflecting covid19s impact on live sports and high er debt expense. Im going to continue to dig in here they say that includes a loss of revenue at studio entertainment due to theatre closures but want to quickly note here that the revenues the Media Networks are up 28 that was driven by strength in broadcast with tv ratings up there. Studio entertainment revenues up 18 where as we saw significant declines in that direct to consume r division and as well a 10 decline in revenue at the Parks Division the operating income, we saw the parks being operating drop by 58 . And studio entertainment havent dropped by only 8 remember that covid was really only felt in the last couple of weeks of this quarter. Ill continue to dig in and be back to qulyou with more. Quick question. Do we know anything about reopening plans in florida in disney world now that they have started giving guidance on their phases and i wonder how critical thats going to be to how analysts are pegging these numbers going. Well look, i think that well probably learn a lot more in materials of forward plans in the Earnings Call coming up. But right now, we dont have any insight into plans for reopening florida or reopening the park here in california i think theyre much further along in terms of reopening the parks in shanghai and hong kong just because theyve already been taking steps in opening up the malls that are adjacent to those parks, but we dont know yet how quickly they could open up those parks and a lot of analysts have been weighing in about the risk of opening too early when it could potentially not be Cost Effective to have the park open if attendance is significantly diminished so perhaps well learn more b about that on the call thank for that. Well dive deeper into disney in a moment just want to bring you beyond meats numbers a nice little beat here. Revenue coming in 97 million the forecast was for 88. 3. Making it fractional eps profit of three Cents Per Share was expected to be a slight loss per share. That revenue gain, 141 year over year. And most of that pace coming in the u. S. Which still accounts for most of o the sales and clearly, this is the quarter end in march and theyve removed guidance for the rest of the year so we dont quite know how lockdown has gone but its interesting to see both retail and food service growing very fast in the u. S. Year over year, both around 155, 160 year over year and the encouraging thing for them of course is that still the bulk of their revenues do come from retail in the u. S. Even though those food service things arent growing and retail may well have held up a lot better in the quarter that theyve suspended guidance for than food service but we have to wait for the call for that in terms of the march quarter, a decent beat on both lines. The share is up about 3 or so and clearly an interesting one with some of the partnerships they have in Food Services there as well, mike. Yeah, for sure. Obviously you know this is one of those stocks where it wasnt really relying on earnings or Current Business and its all about what people are pwilling o pay for this grand future so i think the way it trades up and these numbers not as important as whether in fact it gets its following back in the market lets hit Activision Blizzard because that stock is higher after hours. Just posted a strong earnings beat moments ago driven by momentum from their call of duty franchise. Joining us for more, the ceo thank you for joining us its good to have you here fresh off those numbers. Clearly. You guys are see iing a big benefit. Thank you u. Clearly youre seeing a huge befrt from the stay at home economy. But the lifting of guidance i mean what give yous confidence that you going to continue to see this strength in your business well i wouldnt attribute the overperformance entirely to wrus wo just work at home. We delivered a great new call of duty experience in war zone. Weve got new content for a lot of key franchises so once we had a chance to assess the frequency of release of content, the likely release, we got confidence well be able to see momentum across our franchises now going beyond this year, theres still a lot of uncertainty but for now, we have a lot of confidence that our momentum in our franchises will continue but is it fair to say the stay at home aspect has benefitted you if we look at the scale of the beat for q1 and the scale of the increase in guidance for q2, it stands out a much more pronounced fashion are you expecting a front loading year in that sense we have a significant amount of content thats going come out for the back half of the year. We have a new call of duty u, a new world of warcraft expansion. Its hard to know how much is as a result of people being home. How much is a result of just fresh new content. Its both. But we do have confidence for the back half that the titles that we have in development, the content we have in development is on track. And so thats whats given us the ability to say were going to pass on the overperformance one of the questions that analysts had going into this report was whether youd see a delay of new u releases given that so many Game Developers have to work from home and how disrupted business has been. Are you saying thats not the case what were seeing is based on our present evaluations, the content we have planned for the back half of 2020 is on track and you know, these are unusual circumstances. But for this year, we feel very good about where our schedules are and our release schedules are and you know our Development Processes involve studios from around the world so you may have a content release that is worked on by people in romania and poland in the u. K in madison, wisconsin and southern california. So a lot of these processes have been in place. Now its different having individuals working at home, but so far, we dont really see anything thats going to cause us to have concern about the back half of the year. So many people are missing live sports. Have e sports benefitted from that do you think . Definitely i think this was the first year that our e sport wrs going to be plied in local markets in the local cities and we started out by doing that you know its unfortunate were not able to do that for the balance of the year, but we were able to then quickly take the programming back to what we had done historically, which is all online so our schedules for the overwatch leelg, call of duty, will continue and i think that knowing that theres so many holes in the programming schedules for broadcasters, and there isnt the same opportunities to watch live sport, i think that there could be more popular cultural aacceptance and interest you think in the longterm, you see a major shift or is sit a temporary bump well our focus has always been that 12 to 35yearold. And the audiences for traditional sports are much older than that. You know i think the thing that weve seen is that between the amateur and professional e sport opportunities, just aspirationally, theyre much bigger audiences of people who can watch and play than you see in traditional sport and so were in the earliest innings of the success of professional e sports, but i dont see any reason why were not going to see continued momentum over the next five to ten years in e sports becoming a real spectator experience that is enjoyed by hundreds of millions of people is there anything else youve noticed about Consumer Behavior over the past few weeks in terms of engagement perhaps . Spending more hours playing these games . And what youre gleaning as temporary and what could be more permane permanent . To be honest with you, ive been spending the bulk of my time focused on Employee Health care, safety how are we recon figuring our spaces not just for the shortterm impact of coronavirus, but longterm, i think one of the things that will distinguish an employer is what they do for their employees and families what you do in terms of safety i think the days where providing food in a cafeteria or skydiving lessons, those are not meaningful and important to employees anymore. The provision of highest Quality Health care and real safety is what i think is going to be crucial for you to attract and retain the best talent and what im spending most of my time on. What about mobile engagement like candy crush has that seen an uptick . I guess people have more times to play games at the moment, but perhaps if theyre not commute, theyre preferring to youz their tvs and computers as opposed to mobiles. No across the boards, all the franchises have seen increases in users gaugement, and so b i cant tell you how much is attributed to being at home. Theres definitery an impact with people being home we offer a form of entertainment thats very social so when people are in a place where they are separate and they dont have the ability to connect socially, having this social lens that you know you view through entertainment is something i think is really valuable right now. And thats a big part of why our consumption is up. Wanted to focus on the comment you made about taking care of your employees i know a lot of other ceos are thinking about this, too, and providing them health care what about working from home what do you have, you have thousands of employees is this an industry where you know if its going well as it appears to be going, you could see a more permanent shift toward working at home, less people having to go into the office the filter for me is going to be safety and health and so if we make a determination that it is safer for our employees to be working from home, then we will encourage them to work from home i think right now we have not seen an enormous amount of disruption but its only been a couple of months i think we really do need to see what happens for the balance of this year and then get a better sense of work processes, the tools that we need to manage the type of work that we do. So but right now, i think it is going to be all about what can you do to provide the highest levels of safety and that means testing. Thats going to mean more Emergency Care you know weve gotten a number of places today where we do have nurses or some doctors on staff. Tha going to be something as a program were going to expand. Weve now expanded our telemedicine programs for our employees but i think you know health, wellness and safety are going to be the things that distinguish an employer and those are my and the companys priority right now we appreciate your time fresh off of those earnings. Thank you very much with the stock moving up after a big beat lets get to pinterest earnings out there julia has those numbers as well. Pinterest reporting that its loss was ten Cents Per Share thats a penny more than the nine cent per share loss that analysts had been expegting. Revenues though beating expectations at 272 million versus the 270 million expected and the companys monthly active users at 376 versus the forecast of about 363 million so 367 million about just a couple million more than than anticipated. We see the stock falling dramatically, down nearly 10 . Some comments about margins. The company saying our cost of revenue has generally grown with users rather than revenue, which in this environment puts pressure on Gross Margins saying we expect to continue to grow operating expenses in the Second Quarter year over year but at a slower pace compared to the First Quarter. Of course the company pulled guidance expectation but this commenta commentary, the pressure on margins sends that stock lower thanks for that weve got also mattel out. Courtney has the numbers hey, court so mattel reporting a loss of 56 cents the street was looking for a loss but of just 41 cents. Revenues down 14 . Also worse than expected at 495 million compared with 652 million plus consensus u the company is withdrawing its previous 2020 forecast not on expect ed here though it points out the liquidity it has is expected to be sufficient to effectively manage through the covid19 disruption as it continues to execute the strategy there is a note that significant gross margin improvement, actually highest First Quarter gross margin since 2016 but really all the major segments down infant toddler preschool down 28 . Dolls down 11 and barbie and American Girl are in that group. Back to you as shares fall about 5 for mattel. I think there was a little bit of a bright spot in vehicles including hot wheels, but that may just be my thing just 1 there you go. One positive category there. Mattel weve got Virgin Galactics results. Morgan brennan has the numbers morgan good to see you thats right Virgin Galactic report iing a n loss of 60 million. This was narrower than the 73 million we saw in q4 not going to give you estimates because theres only two out there. Keep in mind this is a company that hasnt yet launched its commercial Space Tourism service so its not yet technically operational. Revenue was 238,000. Cash and cash equivalence on hand at the end of march 419 million to down slightly from what we saw at the end of 2019 some of the key points here for Virgin Galactic. Strong interest in the one small steph initiative this is that initiative for refundable thousand dollar down payments for people interested in buying a ticket to go to the edge of space. To be able to be in line in the cue in the next tehran ch of ticket sales are released later this year. Over 400 deposit payments receive d from individuals in 44 county trays as of the end of april and if they can convert all these customers, thats going to represent over 100 million worth of future revenue. Ticket price dependent also that registration of interest no down payment there. Inflight reservations increased by 1,200 as of the end of april. That was a 15 jump since february 23rd of 2020. Notable of course because youre talking about ticket prices that are 200 to 250,000 and potentially upward and happening at a time when this pandemic is is sweeping the world and we have recession setting in. Lastly, ill just note the company also saying that it has entered into a space act agreement with nasa to facilitate the development of high speed technology. So think super sonic, hyper sonic air travel, point to point around the world using its rocket technology, something that wall street is very bullish on longer term. Theyre now going to work with na is sa on some of those capabilities shares are up about 3 after hours. Thanks for that and again, weve seen earnings making a difference difference between ea and blizzard standing out bob, quick final comment to you with all these movers maybe on disney and where you stand there. Last time i looked it was up about a percent after hours. You could frame it as not as bad as some were fearing the cable and broadcasting part outperform thg traditional old part of the business i think theres a number of unknowns right now that think the market is going to have to see in terms of how to proper evaluate big segment of their business and the movie business even when theatres open up, theres going to be a lot of social distancing. Id love to hear how they plan the monotize that. The streaming numbers ooempb if they are large rer than we expect thats a ways off and the theme parks are not going to be able to be at capacity so we want more guidance to understand how long this will take. What the earnings likely c lly d be because they are not going to snap back i cant see before the end of next year so wheres the great valuation for discounting this Slower Growth that we are going to see. Barbara, thank you very much for joining us still ahead, much more on the earnings disneys Conference Call get underway shortly plus the future of fights. Coming up, well ask ufc president dana white b about how the Company Plans the keep fightgh s d nsafefi back in 90 seconds 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 saving you up to 400 a year. 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. Disney is hire after hours i come to you first of all one of the key factors weve been focused on coming into this partly as well off the back of comcast numbers was whether people were cord cutting the traditional Media Networks, broadcasting lines seem to be theyre of enough strength thats a great point and one of the things well be looking forward to on the june quarter this morning talking about advertising down 30 comcast with nbc wanting to advertising moving out so thats going to be a big hit for the meeting in the june quarter and interest in cord cutting as well comcast reported worse than expegted video subscribers, so overall heading into the quarter, we thought that the impact of the coronavirus would be roughly awash on cord cutting. Just kind of continue at these trends and that seems to be whats happening so far. Tom, you know this was a company that was trying to remake itself. Not just in terms of transitioning into a new ceo but getting into the streaming business and was see iing really early strong success and now the setback in terms of the parks and the Consumer Products and sports and how long of where that putting disney in terms of its race the compete are netflix and amazon on streaming . Well first of all, i wouldnt get caught up in this quarters results. This quarters results is going to begin to reflect the magnitude of the issues that disney is having right now theyre in a crisis. Nobodys hit more than they are in terms of theme park closed. Sporting events not happening. Movie theatres closed. And the issue that you have to focus on is is their going to come out of this crisis. Nobodys quite sure when when thats going to open up but when they come out of this crisis, theyre coming back into a mess what i mean is crises accelerate trends and trends before coming into this were bad the crisis is only going to accelerate those trends. Cord cutting theres no good news on cord cutting. Its accelerating to the extent of we might get a better sense of from the Earnings Call. But its accelerating. Revenue from the cable and satellite is going to begin to diminish as the rate increases there. Viewership which i think is is astoundingly poor given that we have a shelter at home period here and we still were seeing broadcast and cable ratings decline in prime time despite that obviously advertising revenues are going to continue to climb reflecting that. And so what youre dealing with overall is some major deterioration that theyre still going to have to deal with your question, sara, as a new ceo sits here having to deal with this crisis moving into a mess, does he cut strategic investment, costs or double down and got a hell of a winning team on the streaming side that has shown what disney plus might be. Do you need more resource there, put more shoulder behind it . Say to kevin, go at it even more aggressively with the kind of things that can really demonstrate that disneys going to be on a transformtive path than what happens to these kinds of companies is is they caught caught up with trying to deal with the downside and problems and you forget a about the fact that your only way out of it may be faster transformation certainly some of the themes longterm there that apply mike, if we can look past whats happening over the course of the last few months because of corona, one thing that jumps out is the year over year increase in direct to consumer, which has gone from 1. 1 billion the same quarter last year to 4. 1 billion so just going up in absolute multiples, which speaks to the structural shift that iger successfully executed over the prior 12 months that had lent to such a premium multiple before this crisis right so before this, it was considered disney has a satisfactory answer on staking the claim on the future of home entertainment. I dont think if you sit there and ask yourself longterm are disne disneys franchises permanently impaired i dont think youd say yes unless you think people r arent going to go to movies permanently. In a recession, disney becomes a Theme Park Company people trade it that way as vertizing as a negative kicker and its not just when the parks reopen its when consumers have the where with all and the confidence to tart filling up those parks and giving them pricing power. Thats a high fixed cost business thats just the way the stock is going to trade whether r or not thats really about the permanent value of the company far down though i was just going to point out the fact that even though the stock has fallen 30 , youve seen competitors fall much worse. V viacom, discovery, cbs, theyre county way more than that for the year thats true disney showed it had the guts to go in transformation was gets a will the of transformation for this even though thats disapated. But just keep in mind yes, parks are going to come back movie theatres are going to reopen the key things that drive disneys film production, theyre going to get back to film release but when you think of cord cutting and what were around now, 80 million or so, were going to pretty quickly get down to 70 million subs. Disney from the Median Networks in terms of fees is get iting about 18 to 19 per user what that translates into is if you lose 10 million of those, which they will as cord cutting continues over the next ten years, im sorry, the next couple of year, you have to get 30 million full priced disney plus subs just to break even on that 10 million of loss at 18 to 19 a sub from all their other media network. Thats just to deal with the 10 million loss and cord cutting loss is is going to ontinue. So what theyre up against is huge and they have to consider do they double down. Do they put more behind hulu i dont think this is a story anymore b about disney versus netflix. This is a story of disney versus disney the old disney versus the new one. Houf are you going to take from the old and realize those problems arent going away and are going to accelerate on you and put more and more shoulder behind the transformation into the new disney thats going to be the tension they deal with how they resolve that is going to have everything to do with future value of disney thank you for weighing in disney shares down less than 1 . Up next, much more reaction to beyond meats earnings report. Whether the company could see an increase of demand amid the shortages happening right now many this country. The stock is up more than 4 theres a look at some of the mixed action going on for some of those movers. Every Financial Plan needs a cfp® professional confident Financial Plans, calming Financial Plans, complete Financial Plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Shares of beyond meat popping. Hi there. Yes, it was a solid beat on the top line 97. 1 million in rev now compared to estimates of 88. 3 million but the big number that a lot of investors are looking at are those gross profit and those increased quite a bit. Gross margins went from 26. 8 last year to 38. 8 the company says its because theyre selling more product because of more product launches, more distribution points and things like labor and packaging. The company suspended guidance because of covid19 but another note bable point that investors watching is the break down between retail and restaurant sales. The nus net revenues of 72. 5 million. The breakdown was about 50 million in retail sales. That could be good because grocers are exploding in growth because of this pandemic thank you joining us for more analysis here on beyond meat, kate cox, editor at the digital food magazine, the counter, as well as mike. I was wondering that niese fad foods would disapate now that were in a pandemic and people went back to canned soup and bached cereal but it appears people are still vest interested in this. I think so and i think beyond meat may be benefit iting from consumer conception where the meat packing supply chain is under duress its certainly benefitting from the idea it may have a more Sustainable Business model that we may be able to get access to it with greater ease than we can traditional meat right now and a processed food. Im not surprised given how much food service and restaurants tank nd the last month that say saw greater growth in grocery. How long does this, do these products keep so saras point in a moment of stocking your pantry, youd shift to canned goods. If its a debate between regular meat and beyond meat, does one stay good to eat for long er its sold as a frozen product in most cases so it would last as long as traditional meat light last, is several month to a year if its packaged really well their balance in the u. S. Is still tilted towards retail even though theyve announced some of the restaurant partnerships Going Forward. Yeah so thats a backstop i still think its a very 2019 top of the market story. Its a bet on how big the category can get its knot really a candidate to make up for any near term shortfalli ins so i do think ths why its very much a story and sentiment driven situation, but nothing has really happened to also the other hand disturb the longterm outlook for beyond at this point we just got news today that impossible foods is going into 1700 kroger locations. Well talk to the ceo b about that tomorrow morning, kate, but weve never tested fake meat in a recession. How, what about the price points i mean we are heading into a place where were looking at double digit Unemployment Rates. Lower wages. All sorts of economic pain what does this category look like i think this is where the conversation shifts slightly if were looking at it as comparable to traditional meat which mike said and i agree, it didnt, its nowhere near that scale. But one thing is that because its a processed food that means a lot of its production is going to be mechanized so even though they may be suffering from product losses because theyre doing social distancing, much of their operation is going to be mechanized where as slaughter production is very human labor intensetiive so thats one plac they may save on costs which then means at the store, we see things stabilize anyone in this category is going to be able to adapt in the system which were going to see for many months suffering. The flexibility may give it a leg up lt thats not as true with the traditional meat supply chain. Thanks so much for joining us meat shares trading about 4 or so higher after hours. Dont miss an interview with ethan brown. Hell been on mad money tomorrow night here on cnbc still ahead on this show coming up, you can see it there, dana white, ufc president , will join us to discuss going ahead with a fight this weekend no less back in a couple of minutes. Disneys Earnings Call just getting underway julia. Disneys new ceo announcing that Shanghai Disney will open on may 11th. Saying they will open it using social distancing, use of masks, temperature screening and other Contract Tracing and Early Detection systems. Theyre doing this based on interest in the park adjacent to the, theres a mall adjacent to the park and theyre seeing interest there so thats an e oping on may 11th. Well be listening for more details on when the rest of the, pars are set to reopen thapgs for that nearly every major sporting event has been canceled or postponed sh, but the ultimate fighting championship is ru returning this weekend ufc is to take place in jacksonville, florida on saturday in the first of three shows for the month of may joining us now to talk more about this and his plans for the path forward, dana white very good afternoon to you thanks for joining us. Thanks for having me. Talk us through the plan both for this weekend, the month ahead and then youre kir kind headline grabbing plan for fight island were going may 9th, this weekend, and well have three fights that week were going to go saturday, wednesday saturday and well be back on schedule and as far as fight island, ive secured an island where i know its going to be hard to get people from out of the country into the United States so were building the infrastructure on fight island right now which will hopefully be done by mid june and i can start doing International Events in june because we are a global company. How is this safe . I cant think of a sport that involves more contact. Yeah. Well health and safety isnt something that just popped up with the coronavirus with us its smomething we think about every weekend. So you know we sat down with our doctors and we said how do we figure this out. Obviously number one is you get rid of the crowd number running the event more than in half, and we make sure that these athletes are healthy and safe just like we do every weekend. So i guess, dana, youve acquired testing kits and each of the athletes and the staff, the reduced staff would have been tested. How did you acquire those tests and what type of tests are they . Are you confidently theyre definitively accurate . Yeah, were as confident as we can be. I mean, if you look at going into an event like this we always try to figure out how do you make it safe how do you make sure you have two healthy athletes competing obviously now we have to make sure that everybody around them is healthy, too. So were doing two different types of testing and were going to make the thing as safe as we possibly can why are you Going Forward with this so soon, so early just as we start some states reopening when all of the other sports leagues have not started playing yet . We had an event in brazil right when this thing started. We did it with no fans and the event went off well. Everybody was safe and everybody was healthy. I would have continued to keep doing fights straight through this thing if it was possible. Dana, it sounds like provided its safe which it sounds like it will be, sport, although i dont typically watch ufc normally with that in mind, are you expecting way, way higher viewership than normal because those of us that might like sports from football to baseball or cricket not many other viewers like cricket, but whatever, the sports they typically watch we havent got to watch and youre putting some live sports on i dont know. You know, three months ago i could have answered any questions about my business, you know i dont know now you know, i can tell you this, im dying for live sports. Im not really a tv guy. I would watch just about anything right now if it was live yeah, i would imagine that this event will do very well. How much damage will it be not having it in a live stadium with fans . Atmosphere is key to a sport like ufc will it be a much less impressive experience, do you fear i think that that live fans is a big part of any sport. I think its what makes it so exciting and so fun, when theyre live or watching it on tv, but the reality is were in a position now where you cant have fans there. I think people just want to see some live competition. Thats what i think. What about the fighters are they as confident as you are that theyre going to be safe and taken care of . Was there any hesitation where you had to convince them to do this everybody thats involved in this event from the fighters to the staff working it are all people that want to fight and want to be there nobody is being told they have to be a part of this event. So, dana, just pivoting back on closing thoughts, do you feel that youre lucky, the type of sport you have relative to some others that youre able to come back live at the moment . I know youve been on various discussions with some of the president s advisers how much do you feel for sports like nfl or baseball which feels like a lot further off before they can come back because theyre team based as opposed to individual based yeah. Theyre going to face the same challenges as i did. I submitted a 30page document to the governor of nevada and the governor of florida. I would be willing to share that document with any of the other sports leagues yeah, i feel bad i think they can. Listen, its expensive youre going lose your live gate which is millions and millions of dollars youre going to lose a lot of money, and its going to cost you a lot of money now to put on the sport to make sure that its safe it can be done the question is are they willing to do it well, i would imagine theyre also trying to comply with doctors orders. I mean, were in a state in new york where we havent even well have a soft reopening on may 15th things have not fully opened in this country, dana it sounds like youre more on the youre more fighting for faster reopening, safer, faster reopening rather than keep this shutdown going longer to try to control the outbreak yeah. I im with lets figure out solutions. We need to figure out solutions, and i feel like there havent been a lot of you know, throughout this entire thing so lets lets figure it out. Listen, i have a family, too, and i care about my people, and i personally am not looking to get sick or die either so but i also feel that we have to start finding solutions when do you think the fans can come back . Thats a tough one. I mean i think when testing gets to a much higher level, im hearing about these tabs that you can lick and it immediately tells you if you have it or if you dont. I think if that type of testing starts to come, we can start looking at fans again, but testings going have to get a lot better. Some say not even until vaccines dana white, thanks for joining us. Thank you thanks for having me good luck with the big event. Up next, eniarngs roundup well break down the afternoons biggest movers right after this quick break. More news on disney Julia Boorstin has the details julia . Thats right. Disneys cfo, Christine Mccarthy announcing moments ago that the board has made the decision to forego the payment of its dividend for the first half of the year this is all part of the companys plan to shore up its finances and make sure that it has the cash to sustain it right now and also managing its cash outflows theyre confident in managing the crisis from the cash flow standpoint, she said back over to you, sara so much to get out. Mike, the facts that the dividend yield about 1. 6 or so for disney and a decent enough yield relatively significant decision there disney was a company where you never had to worry about the cash position and the Balance Sheet and they did pretty steadily raise the dividend and it wasnt a pure yield stock even though it was considered healthy. I do think there was attention of the leverage levels after the fox asset purchase and things like that that maybe this is being taken as a vm positishortm positive and given a buffer before the businesses come back online. When you take a 93 profit tumble and i wonder how much of it was in the stock. The stock isnt moving that much after hours. It was down for the year also a couple of downgrades this week sort of front loepded a little bit of the anxiety and it was a 150 stock. Clearly, people have been focused on the potential negatives here for a bit. Meantime, you have activision trading nicely and ea moving in the opposite direction and mike, very quickly the markets clearly losing steam, but still another positive session hanging in there, i would say up toward the upper end of the recent range and every day is a new catalyst or a new little impulse for this market. So we have to see how we open tomorrow oil is a big story we are out of time on closing bell. Melissa lee has you covered next. Im melissa lee, a barrage of big name earnings and well break down the major movers straight ahead plus the nasdaq closing in on going positive for the year, but is this titanic tech turnaround headed for a giant iceberg and later, would a baby, a bonus and Beverly Hills have to do with elon musk have to do . Stick around and find out. Disney, the stock bouncing off afterhours lows and the Company Making a major announcement and lets get to Julia Boorstin with th