Upstreaming Movie Service with a little help from americas dad and why california government is not worried about an exodus of manufacturers. A view of elon musk. You are watching Worldwide Exchange here on cnbc good morning, good afternoon, good evening welcome from wherever you may be watching, im Brian Sullivan thank you for starting or finishing your day with us. Solidly in the green, the dow up about 240 points that kind of move would regain about half of what we lost yesterday with the dow dropping about 400 points all the maethor averages were indeed lower maybe the stock to watch today is the one we talked about all day on monday. That is moderna. On monday, enjoying that 20 pop on the vaccine news. Late yesterday, the stock fell it ended down 10 . In part because of the report by the medical firm or research or website stat news suggesting that vaccine experts were saying that the drug trial results that moved that stock on monday simply did not provide enough data to draw any conclusions about the vaccine. They wanted more data and less words. It moved the stock well see if moderna today comes back with any kind of response of the report by stat news late yesterday, moderna down about 5 well get more on cnbc lets get you going with the quick update with matt in singapore. Interesting on the back of the losses you experienced on tuesday. We had a weak performance. We did see a number of these markets close themselves out we had a positive finish with the Mainland China market. Today is the day where we set the loan prime rate. Held steady as was widely expected on the moves. Holding that one year rate at 3. 5 in asia, closing higher. Watching earnings of lenovo. It reported more on what was expected ended up closing slightly to the down side. Profit there falling by 64 . Not as severe as predicted up tick on the pc demand given that everyone is working from home the nikkei in japan up today it had its own type of moderna news in the market fuji film shares fall down about 2. 5 perts. Testing the antiflu vaccine avigan there is a report that shows no clear link about the effectiveness of that drug we have fuji film trading lower. Thank you here now in the United States, we are hitting a milestone of sorts in our pandemic lockdown as of today, all 50 states will have instituted some kind of reopening plan connecticut being the last one to insure t to instut that process get more with rahel at hq. Lets start in chicago. Five workers at a mcdonalds in chicago have filed a class action accusing mcdonalds of failing to adhere to government safety guidelines around covid19 such as failing to provide adequate hand sanitizer, gloves, masks. Mcdonalds says the statement is inaccurate facebook will limit the menlo park offices to 25 capacity when they start to let people back in july they will put people on different shifts, have temperature checks and have sixfoot spread apart work spaces Disney Springs in orlando will begin reopening the theme park remains closed. The area will require visitors to wear masks and have temperatures checked disney will be policing anyone who breaks the new policy. Rahel, well see you in a minute thank you. Getting back to the markets. The big rally off the march lows and still remains optimistic even after that 30 bounce from those levels welcome our guest live, nice and early from minneapolis craig, it is nice to have you on you remain bullish you advised your clients to remain long and strong, they did. You still have a target on the s p 500 why the continued optimism if i look at this market, i put it in a great quote, in price there is knowledge in volume, there is truth. If you look at this market this market is clearly looking forward. It has ripped the Rearview Mirror off all the data you have on clearly points to a lot of negativity, problems and challenges. The Federal Reserve has done a great job building a bridge with policy coming out of washington to build a bridge over this pandemic we have to continue to keep looking forward. The market is one of the best forward looking mechanisms we uppublished our monthly publication and said this is a market that had a great recovery well probably enter the consolidation range. Probably 3,000 at the upper end, 2,300 at the lower end well see a healthy pop once we get through the election we think there is more upside to the price objective. We think it is still an achievable number even though we get a lot of push back our number still supports that kind of objective by year end. You stick with your convictions. Thats what we want to see what is interesting, i learned from your note this, the third fastest bear market in history took only 12 days to come off the bear market levels that bounce back was rapid and violent. What does that kind of move tell you about Market Sentiment did the bears simply get it wrong . It tells us a couple of things first and foremost, i think the fed learned coming through the 2007, 2008 crisis that they need to act and act swiftly they came in with a very Quick Response to this when you look at all of the bull and bear cycles going back, you will look at a period of time one year out and it would suggest a measured objective almost of 3,300. Youll see this recovery will happen faster than you think people are anxious to get back to work and back to some form of normalcy at this time. Given the speed and recovery, i think the biggest pain trade is that this market is going to go higher earnings earnings at this point, you dont really have anything to bank on it you have to look out to 2021 you have to look at the charts the trade is up for investors. There will be a lot more fomo, the fear of missing out higher i think it has been 46 of companies that issued guidance have withdrawn virtually half the companies saying, we have no idea and we are not going to put it out there. When the crisis was in full swing. We bring about a trillion in cash of the totals we have i think it is Something Like 5 trillion as of about a week ago moved into cash. Is that part of your bull thesis that at some point, that giant sum of money could come pouring back into equity markets if it is not already doing so. The fear levels are climbing high that wall of worry there are concerns of outbreaks, et cetera. Youll have to have money come out of the fixed income side as money backs up and all the printing of money will have to lead to some form of inflation out there. As that comes out and off the sidelines, it will push this market higher. Where we should be positioned is, we have to keep looking at growth large cap growth as there are some very good opportunities in those names . Like wear wear specifically. We are overweight tech, computer si cyclical and overweight Health Care Stock like apple, we bought in that crisis when we were on the show back in december of 2018, we were doing the show from san francisco. Nice early wake uptime for that one. Apple looks good nvidia looks good. All these look attractive to us. These are names weve been highlighting for investors we like to name names and we like the early starts. Youve been right on the money so far we appreciate you coming on any time of day. Thank you when we come back, apple reportedly making its biggest ever content buy for the Apple Tv Streaming Service and betting big on tom hanks in the process. Plus these weird times call for some changes from everybody including a 133yearold institution what the steak house is doing which may surprise customers. Later on, retail experts layout survivors you know in retail but maybe some surprise names as well dofurew tus up 53 and we are back after this. Across america, Business Owners are figuring things out. Finding new ways to serve customers. Connect employees. And work with partners. Comcast business is right there with you. With a network that helps give you speed, reliability and security. And enough bandwidth to handle all your connected devices. Voice Solutions Like remote Call Forwarding and readable voicemail. And safe, convenient installation. When every connection counts, you can count on us. Get the connectivity your business needs. Call today. Comcast business. Welcome back 5 15 in new york city. Odd scenes there but we are starting to see more trickles of life from a place that may be the most famous corner in the world that was all but completely empty getting out there as new york city and the country tries and starts to get back to bjork and back to business we have a couple of big stories this morning big news out of johnson and johnson. The company saying it will stop selling its talcbased powder in north america following a series of lawsuits stating that talc powder causes cancer it is halting sales because demand has dropped due to Consumer Habits around what it calls misinformation around the product. It will continue to sell its cornstarch based powder in sted. A changing of the guard at united airlines. Munioz will stay on as chair united down about 60 of course along with all the airlines. The incoming ceo will be on squawk box today at 8 30 eastern. What a time to take a job as a ceo of an airline. Best of luck also in focus. Urban outfitters posting a big quarter loss majority of its stores were closed Urban Outfitters also says samestore sellers could drop as much as 60 this quarter due to what it calls a sluggish recovery in what it expects in consumer traffic watch out movie theaters another big movie is going straight to streaming. Apple has paid 70 million for tom hanks film grayhound. The release had been set for fathers day only on apple tv plus this will be the largest movie debut on the streaming service as of yet. On deck as of this wednesday, do you wa you want football to come back this fall . Well tell you what sun glass maker oakley is doing with player safety in mind. Stay tuned announcer todays big number, 17 . That is the drop of Global Carbon emissions from the peak of the covid19 lockdowns in april compared to the same period the year before according to a study by nature Climate Change emissions havent seen this level since 2006 jimmys gotten used to his whole room smelling like sweaty odors. Yup, hes gone noseblind. He thinks it smells fine, but his mom smells this. Luckily for all your hardtowash fabrics. Theres febreze fabric refresher. Febreze doesnt just mask, it eliminates odors youve. Gone noseblind to. And try Febreze Unstopables for fabric. With up to twice the fresh scent power, youll want to try it. Again and again and maybe just one more time. Indulge in irresistible freshness. Febreze unstopables. Breathe happy. New guidance for the cdc states and Companies Looking to reopen lets get the headlines with phillip mena in new york good morning. The centers for Disease Control are releasing new guidance for safely reopening schools, businesses and transit systems the cdc quietly released the document over the weekend. The document goes into much more detail than the six flow charts released by the cdc last week. The nfl is tackling coronavirus head on. According to the many he had call director of the players association, league engineers are working with oakley with modified face masks that could include n95 or other surgical materials and possibly cover the players entire face hollywoods biggest night may take a night off the film academy is considering postponing the 93rd oscars this year the plans are far from concrete and for now, there is no formal proposal on the table. Thats it. Back to you. Also, a story out today that Cambridge University in england said in the fall, they will not go back to fulltime lecturing appreciate it. Straight ahead, im not worried about elon musk. Im not saying that, those are the words of california governor about the threat of tesla leaving the state. One stock that may be the most important in the country as millions of americans put their mortgage on hold and what the ceo of moodys has to say about what will happen if those mortgages arent repaid for a long time. We have more after this. announcer americas veterans have always stepped up. But with the covid19 crisis, many veterans are struggling to make ends meet or get the care they need. Dav has helped ill and injured veterans for one hundred years, but today, the need is greater than ever. Give to the dav covid19 relief fund and help provide critical assistance to veterans in need. Go to dav. Org helpvets or call now. Your donation will make a real difference. Or call now. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Stocks looking to snap their recent slide as requests about reopening the country emerge fuelled about concerns about getting a vaccine out to the masses well go inside the process of doing just that in a race against time the shuttered economy forcing new york city icon peter lugers to throw out 130 plus years of tradition. Well speak to one of the owners of the steak house, so go get some coffee. You are watching Worldwide Exchange here on cnbc welcome back and good wednesday morning, thank you for joining us here on cnbc. Here is how your mand investments look now stock futures are back in the green. Futures indicating a jump of about 270 points averages coming off the first down day in three yesterday with the dow closing down nearly 400 points and 1. 5 move down. Markets in turmoil yes, we still got them any emphasis around a potential vaccine in coronavirus and potential treatment. There are two big stories you have to watch. One of which has to do with moderna. After dropping more than 10 yesterday. Stat news suggesting that vaccine experts are calling into question modernas handling of results. Suggesting scientists need to see more data on the company according to the report, moderna shares fell yesterday. That is a story youll hear on cnbc maybe the big stock story is wells fargo. Down another 6 yesterday. They are now down 55 so far this year losing more than half their value. Concern about millions of americans not paying their mortgages. Wells fargo important from a mortgage level but also one of the most widely owned stocks in the country. Watch financials watch wells fargo in particular. Lets find out what investors are watching on news from europe about five hours ahead of us lets get to Julianna Tatelbaum in our london news room. Good morning good morning, brian it has been a choppy trading session in europe. We opened lower on the back of that weak close on wall street but bounced off the lows and now the headline index is around the flat line. Fairly mixed picture in terms of Sector Performance we are seeing a stronger bid for the defense portions of the market tell come, food and bef, chemicals are performing best. Down side, banks, travel and leisure and autos. Deutsche bank is holding the annual Shareholder Meeting today. Suggesting that now is the opportunity for banks in this chris sis crisis to be part of the solution as opposed to being the cause. Another company in focus, rolls royce shares down 3 they have announced they are going to be laying off 9,000 employees, about a fifth of its work force most will be in the Civil Aerospace segment. Part of the plans to try to achieve cost savings of 1. 3 billion pounds as part of a major reorganization back to you. Thank you. Tough news there out of rolls royce. Jcpenney is the latest retailer to file for bankruptcy but as bad as things are in retail. We know they are bad, thereof course will be winners that emerge from the wreckage giving you names and the pulse worldwide enterprises. Good to have you back on Worldwide Exchange. Seems like a Good Partnership with the names dont come on and tell me walmart and home depot are going to be winners. We know that who are some other retailers who may emerge live and maybe stronger i mention Williams Sonoma walmart told us everything we need to know first, it was food and consumers and then home stuff. Bicycles, trampolines, board games and moved back on to apparel sales again. Everybody else is now reopening. We are starting to see that happen tjx, burlington and ross stores reopen their numbers have come out quite a bit better from where we saw in the malls mall based restalers came back outside of the malls came back 85 . Williams sonoma. They are mall based but also 60 on line. I think they are going to have an advantage people like them selling for people to do things around the home. That includes patio and garden, inside your house, furniture, decor and all of that will happen as well as we continue to see people build up their offices. I do like those sectors better and mall based sectors less. However, on your survivor point, kohls will survive macys will survive and nordstroms will survive and be with us on the other side. Anybody else in that space, we are not so sure. We know neimans has already filed, pennies has already filed. J. Crew already filed. Well see reductions there we had an analyst on yesterday who said something i never thought about. Which is this, when stores are closed even if you file for bankruptcy, you can still go on. But actually shutting down a store and ripping off the name and it goes to be empty, they are shrinking those footprints those shoppers that would go there have to go somewhere else. He suggested target could be one of the winners you think kohls could be one of those retailers that picks up the traffic because moms favorite store is now not there any more they havent announced any Stores Closing theyll soon have them all back. Yes, they have to go some place. They are the big player in apparel right now. They can pick up a lot of that despite what some have said on air, they do a good job on line. Just like macys does on linline the question is will it all really go off to tj maxx or ross or to kohls im saying 20 of mall stores will close there is almost 1,000 malls. About 300 to 500 will have to be reconfigured somehow quickly, do we have any indication about, quote reopened retailers and malls are doing. I know you are a guy that probably likes to get in his car and go see these things . Any indication of foot traffic i was at costco and home depot this weekend they were going crazy. We certainly see people back out shopping if you look at the mall based retailers, they are opening 10 to 17 of last years volume on the same days. So running about 55 average off mall we are opening between 40 to 110 of last year and averaging about 85 last year. Much stronger off mall than on mall always a pleasure to get your take we appreciate it have a great day on deck new signs of hope as the number of people taking to the skies actually starts to grow again. Those positive figures when Worldwide Exchange rolls on right after this time now for a little hopium good Economic News of the day. Check this out, air travel is back well kind of it is picking up but slowly. Its on the rise according to tsa daily traveler check point data on monday,244,000 people boarded a plane in the United States. That is a nearly 200 jump since the slowest day in american air travel after 9 11 that was april 14 this year when 87,000 people went through the Security Check point that 244,000 number, a 200 jump but we still have a long way to go a year ago on monday, the same day a year ago, 2. 6 Million People went through the tsa check point. Long way to go the numbers for air travel are on the way up. We keep bringing you bits of good news when we see them reach out and let us know if you hear about any hopium. Another company telling workers they can work from home the rest of the year and ford issuing an ult mimate um to President Trump. Ford telling the white house that President Trump has to wear a mask when he visits the michigan plant tomorrow. The president who has refused to wear a mask on similar factory visits said, well see theyve suspended all nonessential visits at its factories. Vista extending work from home order and looking to bring workers back in stages following American Express and square a war of words between state of california and tesla. Governor gavin newsom brushed off concerns. Im not worried about elon leaving anytime soon ive had a lot of conversations with him we are committed to the success of the innovation and growth hes been promoting for decades. I think it is in all our interest to continue to find areas of Common Ground thats what we did in california with tesla they were accommodated and began reopening as manufacturing and logistics across the state has operated and reopened in the last few weeks brian, tesla did not immediately respond to comments on his remarks well see if elon musk responds on twitter that was before or after he was selling all of his homes a busy few weeks. I still cant pronounce his kids name from manufacturing automobiles to drug vaccines drug makers are racing to not only develop treatment but ramp up production on a massive scale once they do a challenge, perhaps, unprecedented in modern many he had call times more on the challenges these Companies Face good morning good morning. Well it is not enough to just have to develop a brandnew vaccine, they will then be faced with the challenge of manufacturing them on an unprecedented scale. A lot of these companies have been striking partnerships saying we dont even have the capacity in the world yet to make a vaccine for 7 Million People they are in the process of making that right now. Look at some of these companies and how they are working together these are not all of the vaccines but some of the major players. Johnson johnson seeking more partners moderna has partnered with lonza. University of oxford has partners with astrazeneca. Pfizer, bioin tech planning doses. Gsk and sanofi is partnering as well with similar large plans with time lines into 2021. A lot of these partnerships depend on things we havent heard of before. Manufacturing organizations. This is a large and growing part of how all of our medicines get made in 2018, you can see to grow to almost 160 billion by 2025. Those are Companies Like lonza and more a lot of questions about how manufacturing will get done. One of the major ones is a lot of these technologies are brand new when it comes to vaccines. They are sort of building the plane as they are flying it. The other question is the supply chain. Weve seen it with testing, with ventilators. We are only as strong as that weakestling and we dont know yet what that weak link will be. Everyone is working on this space now. You know, politics creeps its way into everything whether sports or vaccines with so many countries and different geographies working to solve this problem, i would imagine there is a political component as well. There is a huge part of this story. Who will get the vaccines first. Looking at where some is of these are located. The biggest concentration is in asia pacific in 2018, by 2025, their concentration of the market will grow even further. Many of the largest Drug Companies in the world are in the United States and doing their own manufacturing here. That is a huge question we are already seeing those tensions start to play out concerns in the Public Health community that the richest countries will line up supplies first and who will take care of the poorer countries meg with the most important story that entire world is racing to solve at the same time always great to see you. Have a good day. Of course the pandemic and the lockdowns having an unprecedented impact on business around the world for one local new york city restaurant with a world famous name, it means historic changes to the way it does business. Beginning this week for the first time in 133 years, peter luger steak house will do something it has never done before offering delivery and accepting credit cards talking to the general manager and the grandson of the people who bought it in 1950s our entire viewing audience probably knows your restaurant why make these moves right now thanks for having me. So we had been closed up until this past monday for the past several weeks due to the covid pandemic plaguing the world obviously. When we were considering reopening, the only possible conversations involved takeout and possibly delivery. To really best serve our customers, delivery was the best option for us. Also as far as the best safety practice, credit cards only was the clear choice to us upon reopening. David, there will be a day, trust me, we all look forward to getting in an uber and going there to sit down. Do you have any conversations with the city or state of new york about when that day will be and what that day will look like we dont yet quite have anything definitive. We are hoping for the best the priority here is safety. Some leaders have said you cannot reopen restaurants until there is a vaccine ive heard others say things about a possible labor day restart with lower capacity opening. We want to do what is best for our staff and guests we are looking forward to having guests back such as you, brian, eating a porterhouse maybe in williamsburg there are places where you can go out to dinner and it sounds like a magical fantasy world . What are you hearing from the staff, the millions that keep new york city running every day that we dont talk about nearly enough the staff has been our life blood. We have hit the ground running it has been quite a nice it has been quite nice to have all of these people back it is like a family. We spend more time at the restaurant with each other than usually with our families to not see people for a month who weve spent all of these hours in the trenches with, it is a special thing. Restaurants have such a unique vibrancy in the staff and the people who come in, you cant really capture it. You hope this will be the start hopefully in the transition to get there. Im sure having a luger steak at home will be nice but having a luger steak there will be magical. David, offering delivering as well and accepting credit cards. Best to you and the staff. Thank you. Thank you on deck from a Macro Economic perspective, what are some of the biggest perspectives moodys sees more next. This is a tempurpedic mattress. And its mission is to give you truly transformative sleep. So, no more tossing and turning. Or trouble falling asleep. Because only tempurpedic uses proprietary tempur® material. That continuously adapts and responds to your body, to relieve pressure. So you get deep, uninterrupted sleep. All night. Every night. The tempurpedic summer of sleep starts now, with all tempurpedic mattresses on sale, and savings up to 500 on adjustable sets. High protein. Low sugar. Tastes great high protein. Low sugar. So good. High protein. Low sugar. Mmm, birthday cake. Pure protein. The best combination to help you stay fit. Welcome back and good morning. We have all kinds of ceos and names including cocacola ceo. What a time to take the job at united airlines. Good luck there. The ceo of walmart and the fed president for the dallas fed bringing in another big name, that is mark zandi it is good to have you back on the program. Millions of americans are in mortgage forbearance taking a pause in paying their mortgage at some point, that will have to turn around. How do you see this ultimately all playing out . Businesses reopen and people get back to work the forbearance programs you are mentioning run off as long as 12 months from now. Hopefully by then, most people are back to work unemployment ends, we have a vaccine and life moves on. Thats the optimistic scenario we may have other problems if the virus reintensifies and things dont open. Well have some credit problems. Thats probably what the stock reflects is that well have problems down the road the big question as many see it based on what im hearing and seeing is what is ultimately going to happen with consumer demand those working are saving a lot of money we are not going to peter luger. We are not traveling has the economy already been damaged enough that people will hunker down and sit on their cash what do you think is the most likely outcome well get a balance here. Businesses are reopening that will provide juice to the economy. Between memorial day and labor day, well see growth come in. Well have a lot of unemployed a lot of businesses arent going to reopen. Restaurant, retail, accommodation, performing arts all of those indices will remain closed that means consumers will remain cautious then that is the virus until people are comfortable that it wont make them sick the only thing that does that is a vaccine and well go side ways here lawmakers will really think about that next are es cue package. On the other side of this bounce, that will need some help on the other side, agreed we are saddling the generation with 20 trillion worth of debt that will be a long price as well there is no good choice if you dont respond to this crisis, the economy evaporates, we go to a recession and the response is worse. There is really no good choice i do suspect, on the other side of this pandemic, we will have to grapple with this fiscal situation. At this point, we are still in crisis mode. We got to go, mark. But we keep talking about when it is over the vaccine. There may never be i hope there is. Then the curve was never stay home until everything is solved. Then the curve is dont overwhelmed the hospitals. There is a chance well live like this for the next years and just deal with it. Right . That is one of the outcomes . Totally agreed. The most likely scenario listening to the community and scientists that we will get a vaccine ear comfortable with you are right. We have a plan and possibility that we go down a darker path. Well try to leave it on a more optimistic note we appreciate your time. Thank you. Optimism, dow futures are up sqwkndheua a t gang and a big ceo lineup picking things up next across america, Business Owners are figuring things out. Finding new ways to serve customers. Connect employees. And work with partners. Comcast business is right there with you. With a network that helps give you speed, reliability and security. And enough bandwidth to handle all your connected devices. Voice Solutions Like remote Call Forwarding and readable voicemail. And safe, convenient installation. When every connection counts, you can count on us. Get the connectivity your business needs. Call today. Comcast business. Good morning, stocks and futures up big up 327 after a 400 pull back for the dow yesterday. Another big round of retail earnings on deck the new plans by some companies to bring back workers. New survey data from voters since wednesday about how the government is handling the pandemic and preparing for the resurgence of the virus. Squawk box begins right now. Good morning. Welcome to squawk box on cnbc. We are watching u. S. Equity futures. After a down day yesterday, the dow lost