Whats up, zoom is up, amd, shopfy, nvidia, stocks that would be categorized as stayathome stocks, companies that benefit from people using their computers, using broadband and video conferencing, Something Like that. Maybe thats whats driving the trade for the morning thus far well see where it goes from here, morguen. Thats exactly why the nasdaq is positive, albeit just above the flat line as the quote unquote stayathome stocks, and worth noting that the small caps, the russell 2,000 is underperforming down 1. 5 where the nasdaq has sort of become the stayathome stock shutin index, if you will, because of all of those tech names that are levered to the dynamics weve seen playing out in society in the last couple months, the small caps aremuch more geared towards the reopening and the prospects of reopening, given the fact they are so domestically skewed economically sensitive and tiered to what its going to be like to get workers back into jobs and the like and what that process is going to look like. Thats worth noting. The health care is outperforming today. Cnbcs covid 19 testing and treatment is up 19 . Some of the names focused on treatments, focused on vaccines and all of these other types of tests that are going to be so key to the economy and to society, ultimately rebounding in a healthful way are rallying, carl all right morgan, on that note lets get to todays markets and bring in bob peck, barclays chairman of Global Internet banking. Bob, thanks for coming on. Good to see you again. Yeah. Thanks again for having me i appreciate it. I would be remiss if i didnt start by thanking the medical responders out there and, you know, the daily heros that have really helped us live some sort of semblance of normalcy in our lives. Thanks again for having me on. Totally agree you cant mention it often enough either on tv or social media or what have you thanks for saying that we love to have you put on your old analyst hat, so what would you say about covidrelated tech names right now, the performanc they have, the way that ties to reality and the way in which it may or may not reverse as we see a consumer that gets weaker the longer this goes on . Yeah. Its been very humbling, quite honestly, carl, for a couple reasons. One, im lucky to be part of a bank that Senior Management led by our ceo moved quickly to protect the employees which was critical and all the resources of the bank to help our clinsz that need help weve been part of multibillion dollar deals in the automotive, energy, cinema space and its been a humbling experience as our clients enter these difficult times to step up and help them out. Thats been tremendous theres one, you know, small story ill tell you a company you know well thats chugging along, great topline growth and it was profitable, et cetera, and about a week or two into covid i got an elon musk from t email from the ceo that said i need you to help save my company. That company got funding and it is now well positioned being a part of this experience as a banker has been tremendous. Getting to your question about the covid tech that we talk about, which technology is levered to this or immune to the impacts and changing Consumer Behavior or actually levered to it and can benefit from it and we talk to our clients about the covid tech, covid standing for five areas, on the c, Collaborative Software and security names like slack, zoom, docusign, all names that have done well. O is for online commerce, amazon, etsy, wayfair have done well as people shop more online. V, video streaming and gaming, all those companies have done well whether netflix, activision, nintendo have done well i, the inhome services, thing about education, things like chegg, peloton, teledoc, all those types of things. And last one d is delivery right. Delivery whether that be uber, grub, hello fresh, et cetera, have all done very well. If we look, therefore, on how weve done this year, as you know, the s p is down about 9 give or take, and you know the nasdaq is up 1 or 2 , but if you look from the peaks, right, you have the s p down about 13 and youve got nasdaq down about 7 . That basket of stocks we went over was up 16 . And if we look at the run off the lows, that basket is out performed the nasdaq by 800. You can clearly see investors are thinking about those types of names, particularly when we dont know how long the pandemic will go on although, bob, by the time we assign an acronym for a basket, i mean its usually an indication that its already well absorbed into the market. Whats to prevent it from retrenching from here . Well, any name can obviously retrench and lets see what happens with the virus and get a second wave or not i think each one of these names i mentioned play to a changing trend that i think is accelerated because of the pandemic it was a trend that was occurring anyway, whether it be more individual conferencing with the zoom or medicine at home with teledoc, all of that was happening anyway this process going through the pandemic actually just accelerated a lot of that. I think even if we did have more bumps in the road, these types of names should benefit you more insulated or leveraged daily events. Bob, good morning its jon fortt i think a key to figuring out where stocks like that perform from here is maybe understanding how we got to where we are right now in the overall markets tell me what you think it seems to me that the market either got something wrong or is getting something wrong. It either underestimatesed the feds resolve, overestimated the devastation from covid19, or is now overestimating our ability to recover what do you think it is . Yeah. I mean i think you saw from peak to trough youre down 35 or so, violent moves in a short auto time the alltime high, february 19th and the recent low march 23rd. I think thats right i think what the market tends to do, as you know, its discounting mechanism. Everyone is more aware of the carnage that virus was taking playing on the country i think now what investors are doing is looking for the delta, the next change of information, start to see some green chutes and ultimately what can we look like at the end of theyear, 2020, looking at 2021. You had 2019 p e on average about 19. 5 if you look at the p e today, on 2020, its about 21. 5, about two turns higher i think what youre seeing is investors are looking forward to 2021 in a normalized environment and ironically off those numbers youre looking at 19. 5 times sort of consistent with what weve seen bob, i wonder what you think about the ipo pipeline right now. At a time where both investors and companies themselves seem to be trying to sort out and sus out potential green chutes we got a lot of that commentary in earnings calls as of late, at least within tech and internet, the fact that we have digital car buying platform vroom filing confidentially to go public right now, is that something were going to see more of yeah. What youve seen over the last two months you had some ipos that have been almost all biotech. What the market was looking for was quite honestly last friday with the chinese cloud provide that came out and has done well, up 40, 45 or so, that may hint the market is opening a bit and what youre seeing is our clients looking for windows, late june, july, if things stabilize, with the vix below 26 or so, right now around 30, i think Something Like 95 all ipos have been done with a vix below 26 , if we can get a little stabilization around this, you can actually see Windows Start to open in the summer what i think is interesting, too, the old wisdom was, that you couldnt have ipos around november because of the election and i think that now, that thinking has now changed as the window is shorter than the full year its now from june to the end of the year i think now you will have a more fulsome third and Fourth Quarter of ipos. Once again assuming stability. Interesting that vix statistic, thats a good one, bob. Really appreciate it youve got so many radars you bring and we hov seeing you and talk to you soon. Thanks for having me. After the break, an exclusive with new disney ceo bob chapek, down a couple percent on the day so far but up a couple for the month well be right back. Its a thirteenhour flight, thats not a weekend trip. Fifteen minutes until we board. Oh yeah, we gotta take off. You downloaded the Td Ameritrade mobile app so you can quickly check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. Woi felt completely helpless. Hed online. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Welcome back lets get to Julia Boorstin who has a very special guest, the ceo of disney. Julia . Morgan, thank you so much im joined now by bob chapek, disneys ceo thank you so much for talking to us us this morning. Appreciate it really appreciate it its a pleasure to talk to you, julia. So, bob, weve seen the video of disneyland shanghai opening, operating at less than 30 capacity, but weve seen theres demand from your fans. Can you give us a sense of what bookings are looking like through the rest of the quarter and what youre expecting in terms of attendance at this park, looking into next quarter . Well, shanghai is what we call a short book market where typically most of the tickets for that week are sold within the week as you know, were significantly constraining the amount of tickets that well sell and were pretty much booked out for the rest of the week we have a few Tickets Available on certain days, but essentially everything is gone this is really indicative, i think of the love that consumers have for our brand across the world. I get countless number of emails and correspondence from guests saying how much they cant wait for us to open up because, to them, it representing some semblance of normal, maybe the new norm, and we want to open up as soon as we can across the world but were going to do so in a responsible way. Were excited for our guests, were excited for our casts. We want to get our cast back to work as soon as possible this is a first step, its a baby step, and were moving slowly but were encouraged by what we see in shanghai. In terms of what that thu normal looks like, youre operating at well less than 30 of former capacity how long is that sustainable from a profitability standpoint . Well, i look atthis as a stairstep. Were going to be very conservative, very prudent, were going to be very disciplined about how we open up and then were going to ramp up and increase the government has a 30 cap of our typical capacity in terms of the number of guests that we can put into Shanghai Disney so the plan is essentially to go up 5,000 a week until we get to the point that we know we can operate under our guidelines in a way thats very responsible and then when the government loosens up those constraints and restrictions well walk that ramp again slow and steady for us but do you think reaching 100 capacity is even possible with social distancing and the idea of trying to keep six feet back between in the park were going to see how it goes a lot of that depends, julia, on the guests and our guests have been extraordinarily diligent in terms of maintaining that social distancing so far. A lot of it has to do with Guest Behavior as much as disney operations if the guests continue to behave in the way they have i think we might be able to approach that. So what does that mean for reopening the parks in tokyo and hong kong . Do you expect guests to behave in the same way there . I think so. I think, you know, everybody across the world knows that this is a relatively important condition upon which we can continue to operate the parks. They all want to come back to the parks and Everybody Knows that covid19 is a serious matter therefore, were all playing a part of this ecosystem of safety, if you will, and were going to do our part and we need our guests to do their part too. Can you give us any sense of a timeline for even partially reopening the parks in tokyo, hong kong and then of course the parks here in the u. S. You are opening the mall outside the park in orlando, but does that mean that we will see distan disney world open in july . Were not going to comment on any date to a certain extent it will depend on guidance we get from the federal government, the state government, the local government, Health Care Experts as well as, you know, the immediate hospitals that are in the area of where we operate and what their capacities are. Were not going to comment on any specific timing, but i think it is a good sign that Disney Springs will open up in orlando. We stuck our toe in the water, if you will, in shanghai with disney town and we operated that for about a month and everything went extremely well. The guests really cooperated our operations people were phenomenal and we held to the standards that we set up and hopefully well see that at Disney Springs as well and this will be the beginning of a great n new rebirth of disney parks. What will be the hardest part for you to reopen the parks, especially the parks here in the u. S. Such a meaningful piece of your revenue is it about getting the right cleaning processes in place . Is it about training your visitors to get used to waiting in lines in a different way and not getting too close to each other . Whats the key thing that needs to be figured out for you to get those parks up and operational again . You know, along with social distancing, one of the things that were likely going to require is masks for the casts and guests i think the masks for the guests will be something that culturally is different. In asia, as you know, its fairly commonplace, even before covid, for folks to walk around in public with masks on. That is not the case in the u. S. So that will be something that will be a little trying for some of the guests particularly in a hot, humid summers that we tend to have. Yeah. Absolutely shifting gears over to your movie studio, with all theatrical releases on hold, until you release mullan in late july, are you concerned people will be wary about going to movie theaters . Its going to be a stair step situation like in our parks. Theres a lot of pent up demand on the other hand that viewers, fans of movies want to go see. Typically, if you think about the occupancy of a movie theater, monday through friday afternoon, you know, 25 is about what you get if they were to open up at 25 . It really becomes only an issue on friday night and saturday night and to a lesser extent on sunday night it really doesnt push the limits of what would typically be seen as occupancy inside movie theaters until you get to those weekend and evenings and that can be managed. Thats up to our exhibiters that we partner with. I dont think its going to be as extreme as your hypothesis. This is one of the first wide release films thats going to be hitting the theater chains in july do you wish you had held out longer on that release well, were optimistic. At disney were a bunch of optimists. Thats a very good date for this title. You have to balance peoples anxieties about going out in public with the pent up demand whether youre talking about movie theaters or talking about theme parks. As long as we can do so in a safe, relatively safe, responsible way, i think thats going to be important for the exhibiters to consider all factors when they make their decisions to open up now, before you release mullan you are taking another one of your films that had been intended for movie theaters and releasing it on disney plus in june are you considering skipping theaters and sending other ones of your films direct to disney plus Going Forward you know, we believe in the theatrical experience, particularly to launch big blockbuster franchise films. It fuels the entire Disney Company from Consumer Products to theme parks to disney plus. So we really think thats the smart way to launch our big films. On the other hand, with the luxury of having disney plus and its humongous success its had with 54. 5 million households across the world thats also for certain films in a viable and important way to premier films as well. It will be on a very deliberate basis, a film by film basis that we make that decision. But theres not going to be any hard and fast rules. I think what the situation with covid has taught us, you need to remain flexible, nimble and we will remain nimble, but we do believe in that theatrical window. Speaking of disney plus, you mentioned the 54. 5 million subscribers. Youre well on your way to hitting the lower range of the 60 and 90 million subscribers you forecasted you would hit by sent 2024, were talking about four years early there can you update your guidance on disney plus for us were to the going to update guidance only to say were thrilled with where were at with disney plus and we have some launches coming later on in the year weve got in june weve got japan, weve got more european countries, in september and towards the end of the year we will launch latin america. Were very bullish on disney plus and the growth in the number of households for remainder of the year. At disney plus and your movie studio, you havent been able to shoot any new productions, especially here in california. Im wondering at what point the stoppage of production of entertainment is really going to have an impact on the kind of content youre able to put on disney plus as well as on your tv networks . As you know, we have a certain amount of inventory that weve got particularly for disney plus that is still fueling the machine. Its important to note, though, that preproduction, sort of the development phase, can still happen during these times of lockdown, if you will, and postproduction can still happen its only films midstream, right in the middle production take, for example, man da lorren, it was shot before covid really hit weve been in postproduction and there will be no delay same thing with the black widow coming out in november. Another huge piece of your business is the television business, espn is a huge part of that americans are suffering the lack of live sports right now and that is really dragging on espns advertising revenue how much do you expect espn and the lack of live sports to be a drag, not just on advertising but also to be a driver of cord cutting Going Forward . Well, julia, i think its important to note that in the month of april amongst adults 18 to 49 in prime time, we were up at espn by 11 i think that says something about the ingenuity of our team at espn and says something about the brand and the wealth of assets that we have, to be in this situation with no live sports and have ratings go up 11 in prime time i think that says something its the last dance the wnba draft, the nfl draft, we love live sports. Live sports are critical to espn, but we found a way i talked about being nimble, espn is nimble and found a way i think well be resilient what are you hearing from the heads of the different leagues about when well see games start up again, maybe without fans in the stands well, theres been countless number of discussions about different options and plans from each of the leagues. I wont comment on any one specific because i will let them do that, but were working very, very closely with a variety of different scenarios that will bring live sports back to our fans at espn now, you mentioned your ratings are being sustained at espn by the sort of more innovative sports programs are you concerned big picture looking across your networks that well see ad dollars move away from television and shift over to digital platforms like facebook and google due to the covid related recession . Theres no doubt were going to feel the impact of the advertising hit both at abc and espn, probably more pronounced at espn than abc long term, though, im not sure its really going to be anything thats going to be shocking. Theres certainly trends happening in the hashgts place and those trends will follow, but i dont see this as a Seismic Shift at all in terms of where the ad market will go, aside from, of course, the short term which we know were experiencing right now and just a final question, bob, on leadership you took this role of ceo at a time just sort of on the brink of distance faciney facing unprd challenges and disney is being hit hard by covid and the ripple effects, when you were appointed ceo, you were mentor on the day to day and your predecessor bob iger was meant to focus on content. How has that relationship worked out in the wake of this crisis well, this is an unprecedented situation and as you recall in our first conversation, we talked about disruption i knew there would be disruption in my tenure as ceo. What i didnt realize it would happen that fast nor would it happen that profoundly bob is there as an adviser for me we talk many times a day, as we do with our entire senior team because theres no playbook for this, right. Theres no playbook for worldwide pandemic that essentially shut down most of the world and certainly a big chunk of disney and we have a team approach. Were all board and working hard to figure out the right thing for our shareholders, the right thing for our cast and the right things for the guests. Disney is a Resilient Company and were going to be back stronger than ever and weve got great brand, weve got great franchises, great storytellers and i think were going to come out of this just fine. Well, we really appreciate you taking the time to talk to us this morning and keeping us postd on everything moving forward. Bob chapek, ceo of disney, appreciate it. Carl, back over to you all right julia, great stuff just covered all the bases Julia Boorstin with chapek from disney thanks. Take a short break here. The market is trying to knock on the door of session highs at 2920 back if just a moment. Welcome back, everyone im sue herrera. Heres whats happening. South korean officials are scrambling today to contain a new coronavirus outbreak after the country reported over 30 new infections sunday, the highest daily number in more than a month. Schools were schedule to reopen on wednesday, but now that may be delayed. Jack dorsey is donating 10 million to a criminal Justice Reform group, reform alliance, which will secure masks and other personnel protective gear for prisons across the country they have been at the center of outbreaks in several states. The new England Patriots owner robert kraft auctioning off his super bowl li Championship Ring as part of the allin challenge, the Worlds Largest digital fundraiser the proceeds will go to health care workers, First Responders and to feed those in need. And as always, you can get more coronavirus coverage by going to cnbc. Com. Jon, this represents the patriots comeback against the falcons and he said it shows to him that this country can come back, the ring is now going for more than 300,000 wow all right. Thats good news thank you. We have a quick programming note as we head to break join host tina fey for a virtual benefit program rise up new york, to support the most vulnerable populations in the u. S. City and state hit hardest by the coronavirus pandemic. The telethon will air tonight at 7 00 p. M. Eastern on local new york stations and nationally here on cnbc well be right back. Stay with us this is decision tech. Find a stock based on your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. And wells fargo employees are assisting millions of customers never before across america through fee waivers and payment deferrals, helping people stay in their homes through mortgage Payment Relief efforts and donating 175 Million Dollars to help hundreds of local organizations provide food and other critical needs. When you need us, wells fargo is here to help. Snhu lets you transfer up to 90 credits [announcer] if youve tried college but never finished, toward your bachelors degree. [woman] it doesnt matter how old you are, you can do it. You can finish. [announcer] finish your degree at snhu. Edu. Marriott shares down about 5 as they give investors an update on occupancy trends lets get to seema moody with more. First quarter profit missed by a wide margin, declining 90 in april, forcing the Worlds LargestHotel Operator to address its liquidity concerns which now stands as liquidity positioning at 4. 3 billion. I asked marriott cfo about what longterm bookings look like she says Group Cancellations have been concentrated in the first half of 2020, although marriott is starting to see cancellations show up in the third and Fourth Quarters. A recovery, she says, in travel depends on the continued containment of the virus and airlines adding back capacity. Demand will first return in drive to and leisure destinations as restrictions are relaxed. There are signs of a recovery in china. Occupancy if Greater China just over 30 , up from the lows of under 10 in february. But this trend is not consistent around the world ceo Arnie Sorensen said europe will probably be the slowest to get back and in the u. S. , with fewer people getting on plane, drive to markets are performing a bit better sorensen did say new yorks reliance on Mass Transportation and International Tourism will challenge the city while chicago and san antonio cities reliant more on domestic travel, will likely perform better in the near term. Youre seeing shares trade down 5 all the major Hotel Operators moving on the report hyatt and hilton down. Ill send it back to you seema moody, thank you. After the break, elon musk taking on the state of california were going to discuss with recodes kara swisher. Thats coming up with the dow cutting losses down ayituspots st wh decision tech. Find a stock based on your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Ever somethings gone mogotten into the office. M, i hear you. Feels like theres no barriers between departments now. Do you think everyone appreciates it . I do. Huh. Forgot my glasses. Serivcenow. The smarter way to workflow. Find a stock basedtech. On your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Again, this time in california, threatening to move tesla headquarters because of alameda countys covid19 restrictions joining us is recodes kara swisher. Good morning good to see you. Hi, how are you doing im in hawaii today. Its very nice. Still flying the helicopter, which i love. Yes no no lets talk elon yeah. I have sympathy for his frustration. Manufacturers elsewhere have been allowed to open up, arguably by governor newsoms, you know, restrictions in california he could be allowed to open up, but at the same time hes damaged his credibility with tweets both on the virus itself, saying it wasnt going to be a big deal, and just kind of fast and loose with the sec he hasnt built a reputation as a careful guy. Do you think that comes into play here . I think it doesp its interesting to contrast him with jeff bezos who is sort of doing these things where theyre sort of hardening amazon for the next virus or whatever, is going to spend the money to be safe and things like that this is very elon. Hes sort of, i fought the law and the law won in this case cooperation would go a long way if he appealed to people wanting to do manufacturing, announced safety moves and very proactive that way he does like to tweet and done some tweets that are probably unfortunate for him, especially with [ inaudible ] some of them are him being elon and i dont think thats going to change if people expect that they should find another ceo to like. I think i dont know whats going to happen but hes bringing into focus the idea of what needs to be done to return manufacturing and the pain that a lot of companies are feeling. What do you think of the chances he really moves out of california you know, if anyone would do it, it would be him, i guess i dont know what else to say. Nevada, he certainly has a battery plant there and there are other options. Texas is another possibility i wouldnt doubt that he would do it compared to other people i dont think its an idle threat, but hes expressing his frustration and he does that quite a bit and uses twitter to do so. Sometimes its interesting and funny, other times he probably shouldnt be doing it, other times its elon. Im curious, kara, how do you know he hasnt had conversations or outlined at least with officials in california some of the Safety Measures and protocols he would take . Theres a tem plate there for his operations in china, right you know, he may have they went back and forth on the ventilators. He may be in talks with them the reason hes tweeting this hes been frustrated, and so he, you know, hes been talking about this issue about Civil Liberties and free i think he had free whatever he was tweeting im not paying attention i think that he is serious about these issues and so hes tweeting this stuff, hes obviously either talked to them or and has had a frustrating conversation in his mind or he hasnt talked to them at all and he just doesnt like these laws that are in place. Hes been in manufacturing in fremont a long time, its been a big deal for that county, but at the same time, i can see him easily moving to nevada. I dont think hes a buffer in that regard. It would be tough for some of the personnel perhaps to move. Yeah. Maybe not too hard. Real estate is cheaper there move on to Chip Companies with the wall street journal reporting the Trump Administration is working with chip names like intel and tsmc to build new factories potentially in the u. S. , kara, and reduce reliance on the supply chain out of china. China right now is really trying to build not just chip manufacturing, but also intellectual property in Mainland China in the u. S. , intels already a huge manufacturer of chips, but its kind of alone in that sense. Do you think i think this is the key question theres enough bipartisan support for giving the kinds of tax breaks it would require for Big Companies to find it economical to put that here you know better than anyone about foxconn in wisconsin and all the things they promised to do and never happened. Moving this kind of manufacturing to this country is a heavy lift and it could be done, but most of whats going on is happening in asia and its been doing that for a very long time some of the manufacturing, the specialized manufacturing, could be done here theres some of the glass stuff for apple and things like that but the idea of wholesale movement of this kind of manufacturing back to the United States seems from another time it would take an enormous tax break and costs and the question is, is the prices, will consumers be able to pay the prices to use labor and get these things going in terms of the supply chain and Everything Else its, to me, a little bit of pr and something that donald trump talks a lot about, but i think that coronavirus has shown the reliance on this global economy, not necessarily just china, obviously a lot of it is in china, but shifted to india and vietnam and other places, you know that, its shifted all over the world. I think if theres one area where it really could happen it is in semiconductors ibm used to do it in new york. Samsung is doing it in texas intels got portland theyve got fabs in germany and israel its not necessarily the low cost its the availability of the talent, the right tax breaks an long period of time especially the most recent generation chip fabs, you have to have such a long runway to plan these things and be able to guarantee you will get your money back. Yeah. I think its important to think about what a heavy lift it is. Maybe we should anticipate whats going to be necessary for the future of technology that was something apple talked a lot about, the idea that we produce the really highlevel stuff here in this country and we keep the most important stuff here well see about this i just feel like these are often, you know, were going to build factories in the u. S. As if its a simplistic thing and its complicated and so many steps including the supply chain, but youre right, they could do it. The question is, will they do it or will it be some just factory thats a single factory thats more of a pr stunt than anything else yeah. Also some National Security implications, kara, especially with regards to taiwan if the u. S. Starts trying to embrace taiwan in ways that irritates china, then you have all those ag purchases at risk which is a big part of the president s calculus to getting reelect china is our rival. We talked about this in terms of technology, its going to be the chinese future, the Digital Future we have to figure out ways to get along with them and its a dicey relationship we have to be careful with, with political issues like taiwan or competitive issues you know, how do you deal with a power that is growing and has a lot of hand hold and robotics and a. I. And areas including manufacturing, important things that we need and its shown here we have to figure out, its a very dicey path, the relationship with china both as a rival and partner in so many ways its not for the faint of heart to enter these kind of talks or to make sort of broad statements its super complex Going Forward for sure. Yeah. The u. S. Is going to really have to do a better job thinking long term if it wants to compete with what china is trying to do good to see you. Looking forward to seeing you soon kara swisher. Good to see you. Okay. It will be interesting to see what the department of defense, the role that that entity plays in all of that as well well take a quick commercial break. With the markets mixed right now, the dow is down 150 points. The s p is down fractionally about 0. 2 the nasdaq is trading positive up 0 . Ayitus. 4 these days staying connected is more important than ever. So were working 24 7 to maintain a reliable network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. Welcome back new York Governor Andrew Cuomo holding his daily coronavirus update headlines to report, statewide deaths hit the lowest daily toll since march 26th and as deaths, infections and hospitalizations continue to decline, Governor Cuomo announcing friday, may 15th, is the end of the statewide closures we will continue to monitor that and bring you anymore headlines as they come after the break, the ceo of stamps. Com, were going to be right back. 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Were excited for our guests were excited for our cast we want to get our cast back the work as soon as possible this is a first step its baby step were moving slowly but were very encouraged by what we see what an interview this morning. As talked about the opening of Shanghai Disney. Says baby steps adding maybe 5,000 additional capacity guests per week no real guidance on disney plus. We really covered the water front on a big day for disney in china. Yeah, absolutely. Some really interesting commentary on espn as well given theres no Live Programming and saying they dont have play book for this a new ceo coming in in the time of pandemic navigating Something Like this. The pandemic is resulting in stronger demand for packaged delivery a big beneficiary has been stamps. Com which is up 140 year to date. This despite the financial viability of the u. S. Postal service. Ken, thanks for being with us today. Absolutely. Thank you. We started this hour talking about the role that this idea of stay at home stocks have played in the recent rally of the nasdaq i would add stamps. Com to the list you did see a big positive impact whether it was a new customer or an increase in package volumes. Have you seen that continue to carry out into the current quarter. As states begin to reopen, how sustainable is it . Yeah, in the month of april we definitely seen a continuing fact we have seen it accelerate april was our Customer Acquisition was up 300 and our package volume was up 50 year over year. We have been a beneficiary of the move to online i think we see it, its potentially, you know, we dont think its a one time glitch i think theres going to be a general behavior change in terms of people looking at a new way of purchasing thing os online i think part o is the familiarity with our service as well as the aspect go ahead. Sorry i was just saying we see it as both an initial thing but once people try new ways of doing postage, of doing shipping i think theres a longer term implication of adoption once you try it, you continue down that path you offer mailing an sh inin shipping across the world. Obviously, that Quasi Governmental Agency is in view given the fact its warranted it could run out of money by the fall theres this brewing fight over how to help the agency what is your expectation how are you plan ning in the event there will be major changes. They have a lot of changes. Like the rest of the public were concerned about their l g longer term. They have been losing money for some time, as people moe theres a difference between cash flow and gap earnings as every one knows. The way they recognize their earnings is on gap basis and the payments they havent made are not part of the cash they have been building cash over the last five years they do have about 10 billion dollar on their balance sheet. I think it should sustain them for a while. Theres been a drop in advertising mail theres been a drop in other types of first class mail. Thats the majority of their revenue. They faced a lot of changes with their workers on the front line. They had a lot of coronavirus cases as well as some deaths, unfortunately, theyve got a lot of changes i think were comfortable. We feel like theyre such an important part of the economy and important part of the u. S. Fabric that we dont see the congress not funding them ultimately thats my main question is what should the Postal Service be is it an essential service an sort of essential piece of the u. S. Economy that needs to be subsidized and doesnt have to be profitable all the time or is it kind of a quasi governmental enterprise that should be profitable if its like rural broad band then people should expect it needs to be subsidized so in a pandemic people can still receive speciessential goods. If not, why not just privatize it what do you think . I think theres a difference between privatization. Theres been companies in the world that have privatized it. I think theres adjustments they can make in the past theyve tried to do those things like shutting down post offices reducing the number of delivery days per week. Clustering mailboxes i think theres ways to reduce costs. First class mail has been declining for 20 years i dont see that changing. The coronavirus accelerated that proce process. I think its going to be a massive restructuring that has to take place as well as government subsidies that will have to come into it are higher parcel prices inevitable and what does that mean for your business we support 40 carriers in the u. S. Were not totally dependent on the post pal service when you tack about parcel price, you got to talk about u. P. S. And fedex you have to talk about different sizes and weights. Its a more complex question than like pricing. Parcel prices, i think its a very competitive market. I dont see that going up a lot. If it went up a lot, it depends on the competitive situation we have a partnership with u. P. S. , u. S. P. S. People need to ship parcels and theres been a huge up tick. Yeah, we have seen that and we saw that in your results as well ken mcbride, thank you for joining us today thanks for having me. Guys, its been a pretty interesting session here as were close to session highs assignme it seemed like it might have coincided with some of these headlines out of new york. New york and the new york area likely to be on the tail end of that. Dont expect that to open up any time soon. Yeah. Not quite to fridays high which was around 2932. Lets get to the domino in the half all right. Thank you very much. Our breaking News Coverage continues right now. Welcome to the show. Front and center this hour stocks in the red but pairing losses as the u. S. Economy begins to reopen the nasdaq trying to push higher above the key 9,000 mark positive for the year and aiming for its longest winning stretch since december but how long can stocks keep trading higher with all of the uncertainty that still remains out there. Should i vestnvestors brace