Transcripts For CNBC Closing Bell 20240713

President trump and the white just a few months ago, we were talking about labor shortages house down playing efforts on going up thats no longer the case. Another stimulus bill despite urgent pleas for more relief from the states and businesses up 1. 4 on the s p. Are you suggesting that companies have an edge in those Profit Margins not falling further because theyre laying off so many workers . Were going to tualk about that stimulus question if a in a i think they have flexibility moment, but shares of outback and if they did want to cut costs, either being claim clementining on the back of earnings. The ceo joins us to discuss the opportunistic about trying to results and whether customer rs figure out where it makes sense to invest, but when you have a huge pool of underemployed coming back to the restaurants that have already opened and well speak with afi cio people out there, all of a sudden, you dont have to bid up as much for workers as was the case a few months ago. All right mike, stay with us if you would because just moments ago, president. Why he says the department of labor has failed its duty to protect workers. Were going to get to all President Trump weighed in on whether the white house is those big stories in a moment, considering an additional stimulus bill after record job but first of all, we have breaking news on apple and josh lipton has it for us losses in april. Were in no rush. Thats right. The democrats, the democrats apple just now saying its going have to do what they have to do to start reopening some stores but i would say were not here in the u. S. Next week looking, we want to see what so specifically apple saying they have. But i cant say that were in a some stores in idaho, south rush to get the money out to carolina, alabama and alaska people we have gotten the money out remember in total, they have 51 some money is stalled because of state machines state machinery. Stores around the world. They have Old Computers and 45yearOld Computers and we 271 in the u. S apple saying in a statement that said this was going to happen. Its primary focus here providing lets bring in kayla along service and support at the genius bar to making sure its with Michelle Meier from bank of customers work, learn and play America Merrill lynch. Were in no rush, echoing what at home. They can continue to rely on larry kudlow said earlier, but those apple products customers will also be able to order online for pick up at a store. Expect to see now safety didnt we learn today theres a lot of pain out there and a lot of people need help . Measures at the stores there is a lot of pain and it that means temperature check, face coverings and social also goes against what the president said a few weeks ago distance iing and thatst going mean a limited number of visitors in the store at the same time so thats a big after the expansion of the small yes. The first word to any adventure. Business loan program was signed into law the president said the change when will other tore stores negotiations were going to begin but when allergies and congestion strike, immediately on another wave of take allegrad. Stimulus reopen but theres concern inside the a nondrowsy antihistamine tim cook telling cnbc that plus a powerful decongestant. Decision is going b to be driven white house that so much money so you can always say yes has flown out of government to putting your true colors on display. Coffers and that because of it by the data say yes to allegrad. Hes going to go city by city, was released so quickly, they county by county guys, back to you. Need some time to study exactly thank you apple stock remains higher along which programs are effective and with the overall market today. How they can make future lets turn to the other big programs even more effective stories this hour. Mike is is track iing the market they want to make sure theyre not exacerbating existing rally. Last hour of trade for the week. Problems and creating new ones were going to dive into todays with unintended consequences of jobs report and the growing debate over whether more government relief is needed with some of these packages theres going to be a pause of several weeks, but that said, kayla and Merrill Lynchs chief you should be mad your neighbor democrats are said to release a always wants to hang out. Economist. Draft bill next week mike, start us off with a rock a grab bag of democratic and you should be mad your smart fridge is unnecessarily complicated. At the Broader Market and priorities and it will likely make ice. Another strong week shaping up get sz paed to send as a symbol to the white house and to send a making ice. To be more than 5 gains for the message that this is is the but youre not mad because you have e trade nasdaq yeah, it has been and each of the last four days, the s p 500 beginning negotiating stance of which isnt complicated. Has really press ed the upside f democrats when gop leadership n their tools make trading quicker and simpler so you can take on the markets with confidence. This recent range. 2900 on the s p. Enters the conversation when the white house and treasury enters dont get mad get e trade and start trading kind of was a ceiling until the Conversation Commission free today. Today. Still about 1 below the so they can put down their recovery highs we go to about marker of what they want and try to work from there should the administration be ten p days ago but clearly a in a rush to get more out there . Firm picture of this market. Even if it is a little bit stalled out the it is holding what did we learn from this mornings numbers . Is. I mean certainly there should be the conversation underway up yes, the nasdaq has been a Leadership Group and today you see small caps, banks, value this is an inkrcredible shock stocks trying to participate i want to draw your attention to over 20 Million People displaced 15 minutes left in the the period last year from about trading day. We are now in the closing bell may through october. From the labor force have lost market zone. The s p was in this box between their job. Commercial free coverage of the big surge in the unemployment action going into the close. About 2800, 2850 and sck there rate mike is here to break down these theres a lot thats been donor crucial moments of the trading already and thats helpful and day and today weve got nancy its starting to show through in terms of stimulus checks being tangler back as well lets kick it off with the Broader Market distributed. Consumers having more purchasing stocks rallying today with all three on track to finish the power. Week higher for the first time i think theres two main points of focus one is state and local aid thats been an area thats been in three weeks and mike, were made quite clear is a potential moving up, if you come into the sign of real strife coming in the next few months then the next question is whats that second phase look like in the close yuou see that the economy . Theyve put stimulus in place to Unemployment Rate moves up, more stabilize, to off set some of than 20. 5 Million People are hit to the private sector from the decline in income, but what about creating real stimulus into the summer, the fall and unemployed, and we find out tha get iting a more sustained and healthy recovery on the other side the white house is no rush, to that point, kayla, whthes maybe well see stocks rallying. You have to be aware of the leads and lags present when the stock market went down programs expire something ppp 35 in a month in march, that and others to help bridge this gap and help some of those was basically saying we are in employed get back on payroll an economy thats probably going to get to 15 unemployment obviously its rallied back more when does that run out well there are different than half of that with the help durations for different programs of lots of stimulus, cutting off and for the Small Business program, it really depends on a the worst Case Scenario thanks businesss cash flow the period in which they have to to the fed so all those things working together helps explain difference also the market now definitely rehire some of those employees is is eight weeks in order to be able to say to the treasury is firm. Its sturdy. Department and a Small Business very low volume today. Administration that that loan still a percent below where it was ten days ago should be forgiven its been kind of sideways with a slight upward tilt for a they have to make an offer to rehire some of those employees in that time frame to be able to month. Thats to say this has flattened get that loan forgiven, but how out and has been supported by long the loan lasts is really the huge Growth Stocks with occasional buy by some of the rank and file. Depending on what a Business Needs to use that money for. So thats where we are right what its mortgage or rent is now. That is also why its a wait and how much its owes its venders on see moment because we just dont any given day or month know how much of the incremental thats a business by Business Improvement the market has built issue. In the expanded unemployment nancy, do you think the market is thinking this will be benefits, thats going to last a one month double digit for 12 to 13 weeks, so the Percentage Rate for unemployment treasury secretary said this is roughly ten to 12 week package, i dont think so, wilf. I think what were seeing is the but americans are finding their bills are stacking up especially if theyre not able to replace this income. Mike, is the market today result of liquidity pouring in so what youve got are people chasing that missed or sold at saying that as unbelievably the bottom shocking and tragic as this number is, we were expecting it to be worse . Theres an immense amount of im not sure if the market liquidity in the system. I dont think this market tied to mund fen talls. Was expecting it to be worse, its trading off not as bad as but this was right in the zone of the magnitude that we were expecting. We were in a period here where you have 33 million unemployment we thought but its not, its not something that is tied to earnings claims in seven weeks or though earnings season was not horrible so far. Has not been horrible. Something like that and there you know 68 are beating on really wasnt going to be of an off set in terms of net new earnings 58 or 62, sor ary on sales. Hiring to really change the magnitude of the numbers that surprises me e. Thats why i dont think there so there is some good news, but was a lot of suspense. I dont think you can say that the markets trading up the jobs even some saying the unemployment right might have been lower than folks thought report today shares of f uber are higher but i think its more o mat rer on the back of First Quarter results despite reporting that of the markfer of there was a s the ride business was down 80 in april from the year before. Stop, a shock to this economy and that it probably bottomed in the ceo sounded a note of optimism on cnbc earlier today the middle of april in the absolute worst of it and slowly were making significant maybe its coming back to life adjustments to our costs and we and this employment report more are seeing in the ride business, or less fits in with that assumpti assumption while it is down substantial ly nobody knows how fast well get back but i think that the jobs report theres no denying that, it is, itself didnt have a whole lot fresh in there versus the it seems to be b off the bottoms. Standard view. Last week, for example, bookings in the u. S. Were up 12 week on michelle, when you look at the Market Action and your dire week and Getting Better getting little bit better off of Economic Forecast next to each other, do you feel that the market is being too optimistic a pretty difficult bottom. Mike, encouraging to hear about the reopening process . That tone of relative optimism also interesting to hear his so you know, its hard to conversation about uber eats, which for a long time, have been seen as an anchor on the stock reconcile what the Economic Data are saying and the fundamentals price. Now seen as a bit of an upset. Versus what markets are aexpegt ing. S p 500 is more a function of what the Larger Companies are saying and the distribution of albeit even in this environment, its so r far from profitability still. Yeah, its unclear, wilf, how long investors are going to be pain is not the same in that in love with the uber eats respect then of course theres the consideration of stimulus and how that can off set what business its kind of bolsters overall for the economy and cheerily youre seeing in the economy theyre committed to it, but you have to take all that into consideration. The way we see the trajectory is uber is an interesting little example of what this market is that its a series of phases. Moment is like in the sense that the first is the shutdown. Uber was never really trade iin the collapse of o Economic Activity and we think thats off of current earnings ch they were talking about maybe going past cash flow positive this year, the next phase is this transition phase where you start next year. So this is a longterm story to see stabilization you start to see some the stock did crash. Improvement. Theres still residual damage to went from 40 to 14 the economy, but were moving half, theres a bit of a balance regained half of that. This crisis has gotten to lay then the last phase is the recovery and going to be tricky thats going to take some time and we dont know how thats going to look. Some people off. So youre able to build this its going to be largely a case that the rate f change is function path of the virus going in their direction and just wanting to touch on some slight silver or bronze linings its still a while before you have to prove it, so therefore, the stock can trade higher because people feel on this. One number that jumps out is that the Previous Post war high underinvested and that to me is was around 10 is where we are in a broad part of say the tech world right now. I guess weve beaten that, but even the 10 previous high, a i dont know. E iing to you lot of euro zone nations wish that was theirs and they were to hear the ceo talking about higher than that kurg during the green chutes a day after they last kris kris and those economies have gotten announced theyre laying off 14 back to normal the next question is whether the of its workforce i think certainly uber has a place in the economy previous Unemployment Rate, was whether it is a successful stock that sustainable any way or not remains to be seen. The news that weve heard from of course that was a tight labor market. The cruise lines shows that you it was very clear in the last know people are are going to return to norm al behavior. Cycle that we were in later stanls of the recovery we were starting to see some ive been using uber eats almost increase in Labor Force Participation at the end of the last cycle, which would have createded some tablization every day for the last month, so you know yes, we were in but im unlikely to do so going later stages, but by no means forward. So were then back to the model. I just, i need companies to make money at some point in order to was the economy by itself about to tip over to recession buy them for my clients. We werent seeing real signs of i was a little astonished by excesses we didnt require a shock to do that and honestly the markets it response today as well now obviously this was very large and acute and painful lets hit cruise lines. Shock. But no, i dont think just by those stocks are rallying today with the market after encouraging bookings guidance from Royal Caribbean the natural course, the economy seema has the details. Would have dipped into investors want the know if recession. Well leave it there. And when americans will start cruising again really quickly, kayla Royal Caribbean says while weve got an election in six booking volumes for the rest of months 2020 are are meaningfully lower does the administration think than last year, 2021 cruise all these jobs are going to be back by then well, youve heard them talk about how the third and fourth bookings so r far suggest a rebound in demand. However, nearly half of the quarter are going to be the quarters of rebound. Theyll be excellent then customers have requesting cash theres going to be a phenomenal recovery next year refunds for specific cash cruise that is clearly the messaging they want to build going into november voucher value d at 125 of their they obviously cant choose the deposit. Thats further pressuring its data they get, but they can cash reserves and therefore, certainly choose the policy toolkit theyve put in place to its seeking additional financing options. A step norwegian took this week try to make sure that the economy can be as good as it can be and thats what theyre studying now and thats what raising over 2. 4 billion in they want to happen this fall. Debt and equity. Thank you so much for joining us after the break, outback thank you nancy, how do you feel about the steak house brands is surging cruise lines, any of the travel today on the back of earnings. Stocks, really, on days like the companys ceo will join us this, where they get a big next to discuss the path forward rally. I guess it makes you wonder are they cheap if theyre putting for restaurants and whether hes out guidance like this that seeing any impact from meat shortages. Back in a couple people are opting to keep future bookings i thought that was super encouraging. You heard the other side of the argument, that theyre offering big discounts but the fact is that people are willing to go on cruis cruises. I think thats encouraging but not a straight up move here. We got a lot of volatility to work out of the system and we need to see people return to airlines and hotels in a meaningful fashion while i found that really enkournging just from a behavioral standpoint, when are people going to come back, how much, im not willing to step yet because theres no incentive for me to do so. But i think its really good news weve got about eight minutes left of the session and were up 1. 6 on the s p 500. Some breaking news on tesla. Phil lebeau. Hey, wilf remember when they were shutting down production out of the fremont plant just outside of San Francisco and there was this discussion at the time, who had the authority to say yes, you can produce cars, was it the state of california, Alameda County because of shelter in place orders well remember, laura got ahold of some internal emails where they said were going to start gradually bringing people back in and beginning production. Just now during essentially a zoom conference call, an update on whats going on with covid19 in Alameda County, the Alameda County health coordinator, the doctor on this call, said that they do not believe its appropriate to move forward with production at the tesla plant at this point guy, were back to where we were back in march. Across america, Business Owners are figuring things out. This question of who has the authority to ultimately say yes, you can open back up finding new ways to serve customers. Connect employees. Is it the local Health Officials and work with partners. Or is it the state of california comcast business is right there with you. With a network that helps give you speed, as it starts to open up various reliability and security. Businesses so at this point, still unclear. And enough bandwidth to handle all your connected devices. Weve reached out to tesla to Voice Solutions like remote Call Forwarding and readable voicemail. And safe, convenient installation. See whats going to happen, but when every connection counts, theyve said they plan on beginning production and get tig you can count on us. It back up again at the fremont plant. Get the connectivity your Business Needs. Thanks so much for that mike, the rebound in this stock call today. Comcast business. Is sort of knows no end. T not too far from its highs again and that sort of brief pullback from elons tweets is pret i distant r already it really is. And its also goes into that same category of theres this core group of you know perceived Disruptive Tech stories that you have a lot of sort of hot money. Its not based on macros things that are not based on whats going in the main street economy directly and also where there was never a near term expectation of being particularly generously profitable then you can assign whatever f you want on it based on rate of change, on the fact s p up 1. 4 . That demand is still there you just watch and shake your shares of roku plunging after head this market is split between the yesterdays close. Company beating on revenue and reporting a 77 year over year sure bets that Everybody Knows are sure bets like a microsoft in jump in accounts but ad and alphabet and the rest that have had these premium growth weighing on the stock valuations then lottery tickets. Whether its cruise lines or today. Down 7 . Disney trading higher after peloton or Something Else that ticket frs mondays reopening at e seems like it can catch the shanghai park reportedly lightning in a bottle. Good way to put i. Safe ones sold autoout in minutes. Its been closed since january 25th and normally can see up to and lottery take into account 80,000 visitors per day but will ticket sns. Yeah. I agree with mike on that. And you know, i think there is some good news in the car reopen on monday with limited business capacity up 2. 5 today. You know we had mary saying yesterday they were seeing a v meantime, a group of state attorneys general are raising shaped recovery in china concerns about the Meat Industry thats encouraging elon has that story for us though im not in v shaped camp. I can now confirm that the state ags have been in kind of in the stair stepped discussion with the Justice Department over those concerns a group of 11 are now sounding camp i think thats right and you get this hot money thats gamble babling really and so r far, the alarm about concentration in theyve been winning so its hard to argue with but as an investor, im really looking for fundamentals to drive the Companies Going the industry as well as the potential for collusion forward. Weve got about five minutes particularly during this pandemic montanas ag told me he has left just want to have a quick look at the banks the week as a whole in particular because bank sector has been already spoken with william barr about theres the kpw banks index in this issue and he has on the middle up. 3, but huge d speed dial their margin is Getting Better and theyre making much more money and a it just underscores the fact that we need to do something its not good for cattle difuation within that. Goldman sachs best of the big producers and its certainly not good for consumers he said that 80 of the meat cap banks. If we broaden that out, its a market is control led by just similar theme and kind of makes sense. Youd expegt the investment four companies tyson foods, jbs, cargill and banks to be doing better in this national beef. We have reached out to all these environment than those with bigger exposure to potential Bad Companies and well let you know if and when we hear back loans. Bigger exposure to the interest thanks very much for that rate curve and speaking of the meat Goldman Sachs only down 20 year to date. Industry, blue moon brands wells fargo down 53. Moving higher today. But for the week as a whole, mike, its been hard to put your the company also beginning its path forward with the reopening finger on why wells has of more than 300 of its restaurants. Joining us for more, ceo of blue continued its underperformance some saying the 8 dividend moon brands p. Yield, maybe that could be on the threat of cut. Thank you for having me and the other question just appreciate it. Lets touch on the meat whether it has the wrong type of shortage issue if we may exposure at this moment. Have you found access to meat the regional banks similar to wells also underperform iing a supplies i guess your demand has been lower overall. Little bit has that helped to off set any right among the large ones clearly thats the case in terms of the shortages of supply youve wrong types of exposures there experienced . We havent experienced any consumer credit, the pure plays shortages in supply. Weve got really good partners and they have provided product in consume r credit have not for our restaurants and have performed well aside from a couple of bounces. Really done a nice job so our probably one reason and you mentioned Goldman Sachs. Supply is assured. Our prices are good. The Capital Markets business we locked into a contract last should be good, but just as a year so were in good shape. You told investors that you group, they were as oversold relative to the at the lows recently as theyve been by many, many orders of magnitude had 355 restaurants opened now and early results have been promising. Wondered if you could elaborate versus the last ten years. On that and tell us what youre so i think theres room to make up just because theyre down so much and youre seeing that seeing yeah. Across a lot of some of the what were seeing is our off value tier of the market that premesis business, our carry out theyve just really gotten very and Delivery Business did really well during this time and now as stretched to the downside. Restaurants reopen, were having whats the correlation a chance to serve our customers between how theyre trading and what were seeing in the bond market because this is a week and the reaction to our customers has been very good and where we saw record low yields weve been able to keep our off in the two year and five year. Premesis business going so we saw the fed funds go negative hopefully we can keep our delivery and carry out business which you know, might not going and open our restaurant. Necessarily mean the federal what does an openike, david,d reserve is going to go to negative rates to a year ago . They say they dont want to, but still suggest the rates are going to stay low for a long its about 25 capacity time and that commentary on the the bar, area around the bar is closed seating is further apart economy. Great point and if you look at a one and a half year chart our servers have been trained. They wear masks. They have gloves weve trained our people for proper social distancing and our menu is a little narrower but and it stands out as seeing banks and rates moving one for overall, a r very similar one, but shortterm, youre right. Not really the case because banks are behaving more like the experience what you might see a underperforming sectors so on year or so eeg days where you get a bit of a ago. Rotation and its not just the but the 25 xapsty, how do microsofts of this world that economics of that work we get above our break even are performing, you tend to see flow through then we tempt the banks perform and thats tending tat moment to be days when we Office Premise sales, which is start to see yields pick up a so important because thats a little bit so the correlation strong sales base for us as we move forward from there, were hoping that as things get better, well be able to serve more customers in our traditional correlation not as strong restaurants, but were more than banks more just behaving, is is it time for the sectors that contributing, beating our have f underperformed to play catch up and that tends to be what drives them at the moment variable costs as we open back up our restaurants even at 25 but we are seeing that because of our strong off premise business talk to us about the off its not just all banks moving as one premise business and business. How strong was demand for that jpmorgan week todate of the bi at the peak of the shutdown in six, the only one thats in negative territory albeit just in the red where as march . Has it maintained through april and may . Are there any kind of specific wells is down about 8 , but just behaving a little bit worse than underlig tastes you can talk to . I imagine steaks for example some of its peers this week. Arent typically what people want to have delivered maybe a healthy sign theyre well the steaks have been not all marching together exactly the same mike, under two minutes left of extremely popular and the trading. What are you seeing in the market internals reaction to our business has yeah, its been pretty strong been very, very, very strong we have tripled from the time we if you look at the volume split started until today, weve tripled our off premise up versus down business its been above 80 . Carry out and delivery thats pretty healthy. Even though its not a 90 overwhelming number and look at thats really helped us as a we go forward in our business the more aggressive parts of f but the steaks and pasta, the market Italian Grill and bone fish has the high beta etf against low been very, very popular. Volatility stock that has outperformed so youre we got a pretty dismal jobs seeing more risk seeking below the surface. And the volatility index, did report today and in that report, the worst hit industry was crack below 30 today and you know the s p is basically the travel and leisure and in there, same level as i mentioned ten Food Services lost 5. 5 million days ago and the vix has gone jobs chefs, waiters, you name it. What have you had to do here with your employees . From above 40 to below 30 so that tells you theres less we have not laid off one person or furloughed anybody in anxiety if look out a month or two in terms of options or our company. And so what weve been able to hedging. About 30 seconds left do is as the restaurants come all sectors are higher for the back open, we have a train ed day and the week on the s p 50 up 1. 7 today staff opening the restaurants right away and so we have people the dow at the moment up 447 that can serve our customers immediately and weve had points 1. 9 right near the session highs at tremendous Employee Engagement as a result of what were doing here so its really been a smart the close. Nasdaq at 1. 5 russell lead iing the chart tod policy of our company to keep our people, to keep in and not let anybody go or furlough them. Up 3. 6 . Energy the best performing sector on the s p 500. I want to come back to the decision to reopen all of those as the close, up 1. 7 . 3. 5 for the week. 300 or so restaurants that you mentioneded. How did you make that decision strong close. Do you feel you had enough finishing you have a strong guidance from local and federal governments and then do you fear week welcome back in any way the potential for backlash or lawsuits if someone does get sick and somehow take a look at how we did finish up the day and week on wall attribute it to your restaurant in due cause no, its been very clear from street state and local officials what stocks ending near session highs, strong run. We needed to do. Up 455 points at t the close weve trained our people in a 1. 9 for the dow s p 500, every sector rising in very, very good way. To make sure that we keep the todays trade ending with a gain social distancing. We have the proper equipment today of about 1. 7 . And we feel that we bring the food and our service to our the nasdaq, which is the winner on the week, up 1. 6 customers in a safe environment. Remember, this was a week that the nasdaq went positive on the david, thank you for joining year 2020 and is now just about 7 off us thank you very having me. Appreciate it record highs for the nasdaq. 36 minutes left of trading up more than 5 for the week up next, the path forward for the russell 2000 index of small travel getting your temperature checked at the airport may become e w rm as Airlines Look to caps also finishing the week higher this is the first week all the major averages rose in the last mitigate contagion risks well discuss it right after the break. Three. The russell had a strong catch up day up 3. 6 . Come up, well have former fda commissioner dr. Gottlieb over concerns over a lack of tra transparency and how the government decides which hospitals are receiving remdesivir to try the fight coronavirus. The gilead medication approved by the fda joining us first, nancy tangler and peter. Steve liesman is also with us. To hash through the Economic Data we saw. Notably that dismal jobs report. Mike, first to you on another pretty ol id week and a solid day for the stock market what stood out most . Just a continued firm performance. I mentioned the market kind of bumped up against the ceiling a few times this week. Were still below where we were ten days ago kind of have this mix of impressions of yes the market has been sturdy, but it also has sort of flattened out. About 60 of those gains that were losses that were absorbed in march and i still think it has something to prove so the point being weve kind of ridden as far as you can perhaps on just the big Growth Stocks on the idea of incremental reopening of the economy and also still trying to burn up a lot of the defensiveness and that rush to cash that we saw u out there in the bearish sentiment. So all those things are still supportive i dont know if they comprise a reason for incremental upside from here. Talking about the jobs number, i mean some Silver Linings people suggest that indications and the underlying data that this was temporary and e may see an improvement sooner rather than later. Yeah, its a Silver Lining based on a cloud i guess is the best way to put it and that is that people answered you believe your temporarily or permanently. 78 of those on temporary layoff are those who have been welcome back unemployed or 18 on the 18 stocks near session highs. Airline stocks are getting a bid million said they were on today as one u. S. Carrier temporary layoff and if theyre right about hat its a potential good sign because generally, when people outlines plans to check passenger e temperatures before are temporarily laid off, they flights to mitigate risk tend to come back and come back phil has more details in in droves, so the question chicago. Were talking about Frontier Airlines low cost carrier out of denver, colorado and when we becomes are they right about that and whether or not employers bring them back. How quickly. Talked to the ceo yesterday, he you were interviewing some people in the restaurant said look, we believe that our business in the last hour. Passengers want this and so what going to do is be you asked them, well, we opened check iing the temperatures of 25 . So i guess that means one out of every passenger before they get on board starting on june 1st. Four workers at that particular how is this going to work . Theyre screened at the gate or restaurant if they answered will be. Temporary, they were right if you have 100. 4 degrees temperature or higher, youll be he said 25 capacity. Flagged. Put aside for about ten minutes. They want to make sure you but somehow, they said they were didnt run to the gate, for some reason it was off. On board then theyll test you again. Im assuming that means one if youre 100. 4 or higher again, out of four workers. Then youll be denied boarding but yeah, something along those from the airline industry, this will be interesting to see how u lines then hopefully they would this goes over first of all, a number of be brought back later. Airlines have said look if you nancy, do you have view on want testing of f some sort, it should be instituted maybe by how fast the economy recovers and do you have to have that view to pick out which stocks you want to be in right now . Yeah, thats a great the airports, maybe by the tsa you cant have it go airline by airline. Frontier isnt waiting so it will be interesting to see if we question i dont, i dont, im not an economist and im not a see other Airlines Follow suit and also consider some type of a forecaster further screening of passengers but were tart tog see people go to make sure they dont have back to work in arizona. The traffic patterns are picked up pretty dramatically coronavirus at least symptoms. The salons and stores are they dont know for sure if the passenger has it beginning to open starting thanks for that today. Strong end to the week for most i think its going to be different around the country of the u. S. Airlines having but i do think you have to have an informed opinion of how we come out of this on the other side started negatively following the buffett new us over the weekend. Still ahead, Scott Gottlieb if this is an acceleration of joins us with the latest on the secular trends we saw previously that were emerging, then you want to be overweight tech and battle against the coronavirus and whether the drugs are we are you probably want to be getting to the places that need them most. Overweight consumer heres a check on bonds. Mixed action today discretionary, and we are. And you probably also want to have a defensive barbell and the two year toughing a new low ours is in health care so its of 0. 1 but now 0. 15 ten year, 10. 086 difficult to know, but to steves point, we have a a client who owns hotels in north back in a couple of minutes. Carolina and theyre completely shutdown they furloughed all employees and they may stay shut down a little longer because they want them to be able to get the increased Unemployment Benefits so that they dont harm their employees. So its complicated. Steve, is there anything we can extrapolate from today about the likely implications for gdp . I find it really interesting how in some countries like ireland we saw unemployment get to 28 so huge. In other county are tris, the bank of england forecasts that unemployment will double to about 8 or 9 but gdp will collapse more significant than a lot of people suggesting here. I guess the make up and precise details of unemployment benefit really differ from country to country. Absolutely. Theres two components to gdp. People can think about this at home how much money you make is is dependent upon how many hours you work and how efficiently you work so the hours worked as one part of the calculation of our growth rate and that came in down 49 i talked to mike from jpmorgan who pointed this out to me hes not quite ready the adjust his forecast, but thats one indication of whats happening with growth. I believe j. P. Mopmorgan has it 40 for the Second Quarter so thats not far off, but maybe worse off than gdp for that quarter. Now the question becomes do hours work accelerate by the other, by that same amount on the other side that would gif you your v shaped recovery or as nancy was suggesting about the hotel operator, are they closed a little longer, come back a little slower. Im suspecting that the slope is is a little bit more shallow on the up end than it was steep on the down end here. Steve, thanks so much for that economic perspective. Lets get a deeper market perspective. Bob has look at the big movers today and this week. Bob. Big moves this week 3. 5 on the s p 500. Were almost back to the highs of a couple of weeks ago but dont kid yourself it was a good week for the market believing the reopening is going to go well so energy did well and retail did well, but still look under the hood. Its the work at home work from home story thats really powering things and i cant emphasize this the hope for treatment and vaccine, massive fiscal and monetary stimulus, a floor under the market for the fed and what could go wrong here . Stocks are rallying today near session highs and every sector within the s p 500 is truonger stropger. Reopening may not be as great as best performer is Energy People thought people may not show up look at the stay at home strength stitch fix and ebay and match Energy Stocks continuing to group and twitter here going on. I know we tend to emphasize a rebound for the week as far as what else is working today, the strongest groups lot of f the faang stocks when this happens, but you can see include industrial, consumer this clearly where they believe the stay at home stuff is going staples and materials. To work. Megacaps still the big story for health care is lagging the week overall up only. 4 . The nasdaq is having its best we saw apple and microsoft and run since december up five days google moving to the upside. In a row here are three things driving youre talking about the five this action. Big e stocks if you throw in the u. S. Economy losing more than 20 million jobs in april. Amazon it was up almost 4 for the week when you have the five large stocks that move 4 to 5 in a elsewhere, companies and week, the s p is is genergeneran government fishes poiofficials a to be up even if Everything Else bottoming in economic pain and is is still on the flat side relative recovery in the last week and apple saying it plans to reopen some stores in the defensive stocks like merck and u. S. Next week sending those shares higher and adding to that proctor and gamble, pfizer led reopening theme thats given the but banks were a mixed story generally, they were weak market a lot of hope throughout the week. It has. Time for a coronavirus news good today update melissa lee has it for us. Good afternoon, everybody jpmorgan down fractionally, but during the round table meeting some of the regional banks like with gop senators, president key corps and fifth third, they were up almost 2 for the week back to you. Bob, thanks for that. Peter, we lost your connection, but got you back trump said he is sats fied with safety protocols at the white house. Some will wear masks close to the president. The news comes after two lets touch on some of those employees close to the differentiates bob mentioned administration have tested positive a new jersey nursing home i do you expect there to be a rotation from those longterm being hit with a 225,000 fine after 17 bodies were found secular winners or not yeah, no i actually dont stuffed into a tiny morgue federal inspectors said the expect that. I think that assessment would facility failed to implement proper Infection Control measures, putting its residents and staff at risk of serious hinening on the assessment that the markets are going to go higher or the reversion would injury or death. Nearly 200 patients and staff have tested positive for the occur from the handful of nails benefitting from social distancing and fed programs to some extent. Virus. Children are being vaccinated as a result of the pandemic like the fangs reverting the new data found that for orders other way. To me, this is really a classic childhood vaccines declined late bear market bounce in the month after the outbreak i will admit im little bit was declared a national surprised that weve seen as emergency. For more coronavirus coverage, much correlation pick up to the head on over to cnbc. Com upside with the small caps rallying as much they have today, but a lot of the russ else rallied today for example sara thank you so weve got 28 minutes left in came from small cap banks, which todays session. Have really been beaten up heres where we stand again. Strength across the board. Even now that move looks we are heading for our first up impressive, at the end of the day, its not catching up the week in the dow, s p and nasdaq. Large caps an i would expect that were close to petering out stocks near session highs. Here towards the peak of a after the break, weve heard classic bear market bounce plenty of stories about pantry so you dont have any of that loading, but there will be a new trend emerging wardrobe loading fomo, where you just change the retail name that stands to sentiment because of fear of missing out. Benefit from that and a quick programming note join tina fey for a virtual i think its driving this thats typically happens when you look at history when you get these big sell offs. Benefit program, rise up new york, to support the city and state hard hit by the coronavirus. Youll get a 25 to 30 bounce that telethon will air on monday, 7 00 p. M. Eastern time off the low. It happened in 08 in 01 so this would be nothing new for here on cnbc well be right back on closing this to be a bear market bounce bell i know that every single and you know the one difference perhaps this time is just the massive amount of stimulus that has come in response to what is also a once in a lifetime sort of event relative to the pandemic as well as and akochccompanied a oil shock. Existing fragility coming into this yes, we know youve been cautious for a while, peter. Take a look at jim cramers covid index. Its up 7 this week leaders in the index this week include ever bridge, beyond meat and peloton. Jim created this index to illustrate his point that stock picking is a better strategy than passive investing and these are some of the stocks that have been doing well and better during this pandemic nancy, how do you feel about stock pickinging in this environment . I think youre always a fan. Time that i suit up, i am. I think you know now more than there is a chance that thats the last time. Ever, you want to be focused in the Higher Quality names or higher beta name, depending on what your objective is 300 miles an hour, thats where i feel normal. So weve actually seen i might be crazy but im not stupid. Meaningful inflows in our firm having an annuity tells me that im protected. During turbulent times, that from people who were in etf models and im not den grading consider protected Lifetime Income from an annuity those. I think they have a purpose at a as part of your retirement plan. Time and are now moviing over t this can help you cover your essential monthly expenses. Us we run a concentrated portfolio learn more at protectedincome. Org. Of 12 stocks its dramatically outperformed [sniffing] our other port fofolios at ta t0 so good ideas matter in this market peter, is gold a good idea this the market . Is the salmon wildcaught . She only eats wild caught. Good question you would think it would be in a market where people should be [cash register beeps] concern ed about risk. Right now, im not convinced gold has a lot more to run uh, i need a price check on honey. Its not because im bullish of dont get mad. Eck quities, its because im get e trade and get more than just trading. Concerned about Global Growth and the use of gold as a way for investing. Banking. Guidance. Emerging market Central Banks in particular to generate liquidity. They tend to accumulate gold in the good times, sell gold in the bad times and as especially as we look at latin american currencies for example as emblemmatic of this, theyve been under extreme pressure so those Central Banks tend to sell it, generate dollars to buy their local currency so i think thats the dynamic credit swiss out with a note thats going to keep a lid on gold for a while here. Thank you both for joining us thank you up next, well ask former fda saying the reopening of some commissioner Scott Gottlieb states is showing signs of wardrobe loading and theres about whether germanys rising been a big snap back in athletic cases is aarng wni sign for the wear and footwear. U. S. Were back in 90 seconds joining us now is the author of that note, an equity resernl analyst. First, what sort of data are you looking at so we are talking to some of our industry contacts. Weve been looking at that at how the u. S. Is going to reopen after being on its back for several months up until now, were having to look for data points in places like china and korea, so we want to look at these places. The one commonality is that these places are not new york or boston even which are much more crowded and dense location so there are still some differences and we heard some very wide ranges of whats going on but in general, were hearing some categories that got pushed to the side like like apparel. It seems to be b a standout. A category that when we were told we were going to be working at home and that we were going to have you know our kids werent going to be at school, those things, that forced the consumers budget on them. You had to getting back to breathing. In new york anduin will react the same way where people a federal government coming under fire for lack of coordination rolling out remdesivir to hospitals. Is this a pick up in Services According to politico, some dock tars say the government hasnt that have not done well online given a clear outline as to why some hospitals have receive d th during the lockdown or is it an treatment and others havent the latest confusion comes as inkre mcremental pick up. More tats begin the path to ath lee sure, you would have reopening even as more cases continue to increase expected even online i think its incremental. Joining us now is scott lululemon is a good test case gottlieb good to have you on board as always there. Should we as americans feel sales up 40, 41 and the last comfortable that the u. S. Government now with all of the quarter. Fourth quarter, they said you know those trends had continued remdesivir in its hands is doling it out to certain well into the First Quarter at a hospitals . We dont know where or whether very good clip probably somewhere in the 30s. We would get it if we go to certain hospitals . I think the second, in alongside today, womens massachusetts, the hospital with the second highest case loads did not get remdesivir categories have been lifting off right and a lot of hospitals quickly. It stands to reason there are didnt get it yet. Theres about 25 hospitals that some categories in some brands have received the drug so what happened was at the time like lululemon sounds like theyre doing well through the closures they have a good website to be the fda granted the emergency use authorization effectively able to deliver that experience giving an authorization, the at home. Its incremental for some of government stepped in and said these guys if your brand is strong and were going to take ore the youre selling categories that people need while theyre at home and now weve got better control of discretionary budgets, seems pretty entire supply of the drug reasoned distribute itment but incremental. How do you square that data they didnt have a system worked out. Theyre working it out now, but there appears to be a dispute and this idea of pent up demand among which entity is going to for Consumer Discretionary products with an unemployment do that. Whether its fema or a department of health and human rate that was almost 15 in the services its inhibiting the ability to get it out to the hospitals. Month of april and possibly rising from there . Im hoping they resolve this soon because this is the way the drugs going to be made available and you could argue its a tough one to that the drug was being understand you normally get some kind of an unleash of pent up demand in distributed more freely before the approval than after. These category around this time of year even if just have Something Like cold weather in and certainly the goal of the approval was to make the drug more accessible so hopefully over the next couple of days april then we get out and you theyre going to work out how theyre going to distribute this they should be based on clinical see a big flurry of activity need which hospitals have the most it will be short lived but theres other dynamics going on here so we dont want to take cases. And dr. Gottlieb, does it one, two, three weeks of data and tell you heres a trend from make you fearful if and when a the whole country. Vaccine is discovered of how it was encouraging to see. You have to wonder is some of that might be administered presumably, there will be a mad grab for supplies of it and in the stimulus money making its way, probably to middle and low particularly if it is found by someone overseas, how is this er income families going to work . The families didnt lose their well look, these systems are job and may not feel at that much risk or theyre aisaying being worked out almost in a look, im feeling stable real time fashion and while you were heading back to work would have hoped they would have i can spend a couple of dollars it worked out in advance, on myself to get a workout shirt theyre working it out as they go in a setting of a vaccine or or pair of shoes how have these stocks other therapeutics that become available, theyre going to have anticipated this value of which performed since march and which agency is going to be in charge is your top pick so nike is the one thats performed so well. Of distributing the therapeutic up at 90 today. And what the criteria is going to be. I know gilead worked on some went down into the 50s before criteria for that based on an comeing back assessment of critical need. Its come back a long way but government should be able to even with that dynamic, when you collect that and see which hear from retailers that this is the first thing out of the gate hospitals have the most cases or that the consumer is rushing even distribute it to the states back to, it really informs you and let them decide how to distribute it within the states based on which hospitals have that the brand is very, very the most cases and have cases strong so we still very much like nike. Where the patients are clearly very much like lululemon indicated for the drug this is a problem because we have a short supply of the drug. Especially on the backs of comments of womens categories are snapping back very well. As more supply comes into the market were not going to have these kinds of challenges. What are youi seeing in state some of the ones we find interesting as well, it will be interesting to see how the beauty categories come back. By state data for those that have reopened . We like estee lauder a lot then do we have enough data yet in on the retail side, the puckett x thats the category that women terms of cases and hospitalizations youre seeing the cases tick consume every day and theyve been working at home for a up in some of the states that while. If theres a pantry load in reopen apparel and were going back out im looking at florida into the world for the first carefully. Weve seen hospitalizations tick time, thats a category that up illinois, iowa and nebraska, well boo b watching as one that could be catching up quickly even ohio has seen a small tick up in cases. Thats not surprising. Yeah. Not as many women as me have to put on make up every day but some of the trends youre we assumed all along that as we reopened, relaxed some of the talking about are were the ones that are strong before the social distancing measures and crisis ath lletic apparel. As people became more complacent to start to reengage in activity beauty do you think anything is going that you were going to see an to change as a result of the uptick in cases. Thats why what states have crisis, which could create new designed, when you look at the winners and losers in retail and Consumer Discretionary i do. We talked about this in the note you referenced earlier northeast in particular, were we get asked a lot about weeks very staged reopenings where you reopen part of the economy, bring back some workers and wait a period of time to see how much cases are going up and make sure its manageablement the trend over the month of f may is going to be towards more cases in the states as they rope the challenges weve sort of plateaued in this country in terms of the number of cases and we havent really seen the cases come down on a daily bases and in fact once you back out the new york region, cases are still going up nationally. So its a high baseline of infection that were reopening again so thats what makes this pretty challenging dr. Gottlieb, i wanted to as you about some xhebts from swedens state epidemiologist. He said he estimated 40 of people in tok home are immune, will be immune by the end of may and that quote, in fall, there will be a second wave. Sweden will have a high level of immunity and the number of cases will be b quite low and quite relative to other countries. Where do you stand on that particular argument . They have a lot of different data coming out. I saw data where they estimated anywhere from 20 to 25 of stockholm has been infected. This was publish ed in jama abot two days ago theyve had about 3,000 deaths against that in a city of around 930,000 people so when you sort of equate that over the population of new york and you say what would be an equivalent level in new york, you get to 24, 25,000 deaths in new york if youre comparing apples to apples so swedens paid a heavy price in terms of morbidity, death and disease for what theyve done and they havent achieved a level of exposure if you believe that 20 to 25 figure, thats more than new york if you look at the prevalent study that is new yorks done to look at how many people in new york have been exposed, theyre saying about 20 of new york has been exposed equivalent amount of exposure, more death in sweden on a relative bases and from an economic standpoint, there was an article in the wall street journal yesterday e sweden really isnt open for business businesses are closed because the customers arent showing up so theyve had a significant Economic Impact so im not sure that were ready to conclude the swedish model has been success l. The final point is that sweden has a lot less disease than we do if you look at the background rate of diabetes, Heart Disease and lung disease in the population, they dont have as much so they have a healthier population so theyre going to tolerate an infection like this better than us on the whole. What about germany quickly . Any headlines that have concerned you in the past week there about how well or badly their reopening is going well theyve done a good job screening their population keeping up with infections, using case based interventions trying to isolate individual people who are infected. Theyre reopening, you seeing cases going back up. Again, it shouldnt surprise people as we reopen the economy, were going to see cases tick up hopefully as we get into the summertime, thats going to be a backstop against spread. It will be a backstop of sorts theres going to be some kind of seasonal affect. The question is how power fful s that and will that be enough to mitigate the risk of reopening against the backdrop of a will the of spread. We dont know the answer to that thats going to play out in may and june thanks for joining us thanks a lot. Dont miss dr. Gottlieb and other Health Care Leaders including the ceos of pfizer, Bristol Myers and moderna on tuesday may 12th register now, cnbceventscom he will thinkreturns. Still ahead, well ask Richard Trumka about why hes been criticizing the government oos pls plan to protect workers well be right back. Connected. Ng you 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. Swithout even on yoleaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need 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. A strong session on wall street today. Mike this rally in the market really continues to go up against a lot of skepticism. It still shows theres a little caution buying into this recovery we take a glimpse of this once in a while its been pinned to zero for a couple of weeks. That means extreme risk aversion b. Its about fund flows, bond spreads. Its market based. Not what people say. You look back early 2016 we bumped around here for a while in 08 and 09 so it didnt necessarily coincide with the market low and it was all cleared up and away from there but i think it tells you that because of what is right in front of everybody and the extreme economic damage and hardship out there, people have hard time believing it doesnt translate into paying for the Financial Market maybe it will. Maybe there will be a relapse in markets but right now, based on the historical behavioral presence out there when you have a lot skept isra, its usually r supported stocks up next, well ask president Richard Trumka about todays historic jobs report and whether the nation will ever rurn etto a normal Work Environment once the Coronavirus Crisis ends. When youve got public clouds, and private clouds, and hybrid clouds things can get a bit cloudy for you. But now, theres the Dell Technologies cloud, powered by vmware. A single hub for a consistent operating experience across all your clouds. That should clear things up. Time for a coronavirus update with melissa lee. Good afternoon, everybody california can expect to run budget deficits through 2024 the states nonpartisan analysts say they could total up to 126 billion. He says next years deficit could hit 31 billion. A new home test for the coronavirus has been approved and it uses your saliva. The fda has granted an emergency use authorization if the test developed by rutgers university. The state of new jersey has been using the tests in its testing sites. Now people will be able to collect a am sample and mail it into a lab and some say in Person Religious Services should be banned during the pandemic only a third of those polled said in person services. As always for more coronavirus coverage, head over to cnbc. Com. Thank you for that. Now states across america begin o open their economy, Workplace Safety has been called into question Richard Trumka penning an oped saying forcing workers to choose between a paycheck and their health he also sent a letter to eugene skal a area stating covid preparation has been deficient he responded today on cnbc if President Trump and i get in a disagreement about the exact means to proceed here, we think the plan were using guidance enforcement is the right approach i think whats a mistake is there are some people out there former Obama Administration people saying osha isnt doing anything thats just flatly untrue. Osha staff are working extremely hard to keep our workers safe and the American People need to know that. So do american Business Owners joining us now to talk about a path forward for workers, Richard Trumka richard, respond to that would you accept they are doing all they can even if you disagree with some of the discussi decisions . I dont have a problem with the osha inspectors. I think theyre trying to do a great b job. Its the leadership we have. There hasnt been an inspection of a low pressure facility or nursing home since february. Only last week did the secretary decide he told his inspectors to do onsite inspections then in tandem with that, he said that we wont do any inspections of anything but Health Care Facilities and Nursing Homes so all the other places that are about to go back to work will be without inspectors so its not those inspectors theyre working hard its the leadership that i have a disagreement with. And his idea of guidance rather than having an enforceable standard we try ied that for years and its never worked. And the vick tips of that are the workers. Richard, what do you think is the problem here this is why osha was created back in 1970 to make sure that companies are providing healthy and safe places for their workers. Why is that not happening . Well i think two reasons. One this administration has put osha on a starvation diet. As i said, they have fewer inspectors now than in history they have enough inspectors to inspect each workplace in the u. S. Once every 165 years. Now that ought to tell you where were at in addition to that, instead of going in and actually enforcing the law forcefully or having a standard that is enforceable, they do these things called guidance where they suggest this and that good employers do it bad ones dont and workers pay the price every time an employer doesnt. Clearly, theres a balance at the moment though richard. We saw some shocking unemployment numbers this morning. I mean where do you stand in terms of wanting to see companies have the autonomy to decide if they can open up in some way or form versus these tough restrictions and guidelines that youre talk iin about . Wait a second dont talk about tough restrictions and guidelines, talk about worker safety we want them to open up. But we want them to open up consist went the health and safety of the workers. Because if you dont, all that well do is is open up then immediately in a month or so have to close back down again because workers got infected the notion is we need more testing. More personal protective equipment. Now there were shortages of o both now we have 50 Million People out of work when those 50 Million People try to come back to work, those shortages are going to magnify so we have to make sure we have enough testing on hand we have enough personal protective equipment on hand to protect the workers that actually come back into the workforce. Thats what we need to do to prevent a second epidemic or surge so the economy has a false start. It stops up and then starts gep. The cdc was supposed to release guidelines this week, i think a 17page report on how everything from churches to schools should reasonabsponsiby reopen the white house blocked that reportedly how critical is is it that the cdc gives these guidelines whos in charge of telling businesses how to do this in a safe way thats safe for workers and customers and the broad rer public the cdc is a rep tabl organization they have scientists there that form lalated those guidelines t would put people back to work in a safe way someone at the white house said this is too stringent and they nixed them the scientists at cdc said theyll probably never see the light of day that means he wants to stampede a reopening of the economy and he wants to have workers pay the price because he wont put those guidelines in effect we dont always have an enforceable safety standard for contagious diseases. We had that. Under the Obama Administration this administration scrapped it. Weve asked them to put it back into mace. If they dont feel safe, sara, theyre not going to go back to work we wont be able to reopen the economy the way it should open and keep it open once we do open it up. Richard trumka, thank you for joining us thanks for having me on make those points up next, well ask the ceo of Hostess Brands whether it is facing supply issues as consumers stock up on their packaged goods during the pandemic Hostess Brands beating estimates this morning in its sweet baked good business. The twinkies maker saw point of sales increase by 5 and uptick in overall supermarket share, but due to uncertainty, hostess has withdrawn its outlook. We welcome the ceo now thanks for joining us. How do you make sure this isnt a tech rare phenomenon, that people rush to buy old School Brands like twinkies twinkie has been around for over 90 years. Hostess has been around 100 years so were used to satisfying consumers weve been growing for over five quarters in a row. So when consumers eat our products, they love us we do well in boom economies, during are recessions. Because were a very reliable trusted and loyal brand. So im not concerned about my consumers. Andy, what are the typical demographics for products like twinkies and do you feel like a sudden shock in crisis like this is leading that to change temporarily and do you welcome that in one sense in that in might encourage younger people who hadnt experienced the brand before to try it and maybe theyll get hooked i think our demographic is actually more diverse than you would think. We do have consumers who have loved this for their entire lifetime we have a new set of consumers that come in, millennial, new families form, that love our product as a nice luxury a good part of their balanced diet when they eat our products, twinkies, then we recently acquired a cookie business which has a different demographic. High penetration with more Health Conscious consumers. Also younger consumers and those looking for sugar free number one brand within sugar free in the cookie aisle i think our Consumer Base is more diverse than you would think. How has it been like keeping the pruk open . We were just talking to Richard Trumka about workers and making sure your people feel safe as they have to deliver this increased demand to the stores thats a great question i listened to some of that previous segment and i will tell you, when this started breaking out in february, almost i guess three months ago now, i started a task force within hostess and from the beginning, number one value was keeping our team, their families and the communities in which we live safe and the second was to service our consumers and customers then to stay informed and theres no step that we wont take were not safety. We meet at r or above standards there. Weve quickly adapted those standard we do temperature check, we have face coverings at alld our Line Productions to enhance social distancing weve supported employees with additional pay theres nothing we wont do to support our team extended leave of absences weve suspended increase in any medical premiums that they would have experienced in 2020 so at the end of the day, well get through this well come out a stronger hostess, but not at the expense and value of keeping our team member safe. Thanks so much for joining us appreciate you having me. Have a great afternoon did you grow up with this stuff . Do they eat this in the u. K. Andy, if youre still there, twinkies arent really sold in the u. K. I dont know why they are expanding. An export business in the u. K. You obviously o havent been there in a while, but the next time you get there, let me know where you found them ly theres a special place in my heart for these. Not sure how soon ill be payable to travel there. Were in more countries than you thought and have a deeper demographic than you thought up about 6 today the stock. Ticker is twnki. Up next, canceled contracts. Real estate experienced a major ndift in the wake of the paemic what that mean for the path forward in the nations biggest Housing Market ahead apartment sales fell through amid the pandemic. And more were renegotiated robert frank has the details last week, there was only one contract in manhattan that went for 4 million the last time that happened was february of 2009 now you look at deals that were in the works before the lockdown theyre getting canceled more than 100 contracts have been broken since early march with 67 in march 43 in april. Even more common are buyers in contract who are demanding price cuts brokers say the average price cuts for renegotiated dealing in april was between 10 and 15 the Upper East Side townhouse has been listed for 39 million. Went into contract before the lockdown just renegotiated and closed for 25 million or 36 from the original accusi aal asking pric. Something were going to see a lot more of. And that was after a deposit was paid correct they had that 10 down already so they had that at risk they were willing to walk away with that, walk away from that 10 deposit unless aget a price cut. Yeah. Theyre going to have to wait to open the city to see really what that market looks like cant even get inside any places thank you. Thats right. Up next, with summer, thank you. With summer quickly approaching, camps are faced with a decision to implement strict safety guidelines or close. What this might mean for parents and child care concerns straight ahead. 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 to deliver your mail and packages and the peace of mind of knowing that essentials like prescriptions are on their way. Every day, all across america, we deliver for you. And we always will. Swithout even on yoleaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need 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. Many parents are juggling work b and hope schooling during this pandemic and a new problem is approaching what will happen with summer camps. Joining us is jonathan, director, and aruba the Largest Network of jewish camps in north america. Reuben, sounds like youve already canceled why did you make that call it was a heartbreaking heartl camp means so much to so many people and yet we gathered our best and brightest professionals, experts, camp directors, medical staff and other experts in the field of camping and those familiar with this pandemic, and after going through weeks of consultation and conversations, we came to a decision that the risks associated with covid19 of both the known and the unknown risks pose a threat to our most sacred covenant with our families and all those who we serve which is the physical and Emotional Health and safety of our participants, both at our camps and along with their communities back at home jonathan, have you had to cancel all of yours yet . No, we have not, actually were optimistic that well be able to open if we get the green light from the state and what are the terms that you need to hear from them for that to go ahead and what precautions will you be taking to make sure its safe were actually working on it right now. Ive been spending the entire day developing the protocols to try to make camp as safe as possible we can mitigate the risk and were waiting for the guidelines to come down from the state of new jersey i would also like to clarify the day camp, not sleep away camp so our sets our variables are different than sleepaway camps and both industries have significant challenge e but at day camp were waiting for the guidelines to come down from the state. Were working on those protocols right now, and were hoping that well be able to open in some way, shape or form that will mitigate the risk of the virus to i cant exactly tell a parent i had a conversation with a parent today, and i said, listen, if it was polio i would tell you you willy be safe, with covid i can mitigate the risk and be as transparent as i can and give parents the choice and its our job to give parents the choice thats what i think. Ruben, how did your conversations with parents go and do you have the sense that if you would have tried to open there would have been demand weve heard from thousands and thousands of parents and alumni and leadership in our community and its been an overwhelming expression of gratitude and loss and also deep, deep heartache while theres support for our decision the loss of camp for our campers and our staff and our faculty and our parents is heartbreaking. Jonathan, if you do proceed, will you be requiring more families to sign pretty extensive waivers towards their health were going to take a look at that, and if we do proceed well follow whatever protocols our local Health Departments point out and we spoke to a lot of our families and we did data polling and over a thousand families have sent in in the three camps and we have a significant data that says a good portion of the population really wants for camp to happen. A good portion of 60 to 70 are very likely or likely to send their kids to camp about 20 are unsure and 10 are unlikely at this point and thats where the data is polling right now. If its a possibility, we want to try to make it happen jonathan and ruben, thanks for joining us. Thank you up next, shanghai Disneyland Reopening following its coronavirus shutdown and tickets already sold out well have those details when we return e is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. During turbulent times, consider protected Lifetime Income from an annuity as part of your retirement plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. Disneylands shanghai set to reopen on monday Julia Boorstin is here with that for us hi, julia. Hi, wilf. Disneyland shanghai is to gradually ramp up the number of visitor with data tickets to mine myself crowds demand and the response to the social distancing measures there could indicate whats to come for disneys tokyo and hong kong parks. Here in the u. S. Disney worlds Disney Springs outdoor mall announced it will open on may 20th and that will be a key preliminary step to see demand and also gauge behavior in the u. S. Ahead of Florida Parks eventually reopening back over to you just remind us how big a portion the total revenue earnings theme parks are for the company and shanghai within that well, so wilf, theme parks are hugely important for the company. Theyre the biggest division based on revenue last year and also the Fastest Growing in terms of profits, but the u. S. Parks are much more important than the International Parks because theyre wholly by the company. There is a revenue share agreement and in shanghai its coowned with the Chinese Government so it isnt exactly the same situation, but it will be interesting to see what happens here and people arent used to Wearing Masks in Public Places well have to see how that goes. Julia boorstin, thank you and dont miss cnbcs special report, the path forward, your business tonight at 6 00 p. M. Eastern time im doing some bonus time looking at how businesses are faring right now and how they expect to open up. Final thoughts here, will frfred mike santoli good week for the stock market how about mike santolis viral moment on squawk box are we allowed to have viral moment yeah oh, okay i wont use that, but you think youre so slick, mike, but that was a pretty that was very funny we can just watch it on repeat that really was impressive. It was the 6 00 a. M. Hour the cat wanted to be fed by the first person that was awake in the house and did not respect my hit time i disagree. I think the cat was interested in the chart that you had up there at the time. What did you do did you push him on the floor . No, no, no. I grabbed her and put her on my lap, in fact, if you watch the full clip her tail was wagging above the desk in the shot there you go. No animals were harmed in the making of that video it was a 6 30 a. M i wonder what the punishment was afterward. Pivoting to the markets, mike, clearly, shrugging off some terrible Economic Data is the theme of recent weeks including today. It sure is, and i think, you know, the market is clinging toward that end of the probability spectrum that says, you know, what if the fiscal stimulus and the fed support is enough to get us through this period obviously, coming from a very low base and lots of losses. The average stock in the market is still down by onethird in the high and there is a lot of catchup to be done even if things come back even if were at a stall point in the index at the moment i just think that the cnbc interviews with ceos lately have given us a really good, clear, realtime indication of what theyre expecting when they open up because the Economic Data is stale and thats how the market is treating it so we need to keep watching those and also from the earnings reports and the Conference Calls next week, ill be watching under armour on friday to everyone watching, a happy mothers day to sara in particular, happy mothers day and melissa lee who picks up now. Fast money starts right now. Tonights trader lineup, guy adami, tim seymour, brian kelly and when technology permits, hidden figures, the one thing missing from todays record jobs report that could have a huge impact on your money and something happened in china thats a bullish sign for disney what it is and how the traders are playin