Transcripts For CNBC Closing Bell 20240713

Ahead on todays show, fashion in the time of coronavirus. Well speak to anna wintour about vogues new partnership with amazon on a Digital Store front. Plus we will speak to truist ceo about his efforts now for Coronavirus Relief lets focus in on the stories we are watching Steve Liesman with the highlights from the fed minutes. Just released in the last hour and oliver chen is with us to talk about retail earnings and the big box names he likes so far. Michael, start it off with you what stands out . Yeah. The market just bobbed right back up from that lateday selloff yesterday. In fact, the low for today in the s p 500 hit about three or four times was yesterdays high. So it seems as if, you know, big money investors continue to behave in a way that suggests they feel underexposed to stocks if theyre not going to pull back a lot weve been talking a lot about this rotation theme. You have small caps up a lot and fin tech and financial all were really doing is stretching the upside of this trading range. And were hovering at this point around significant s p 3,000 a lot of stuff comes together right there. That ends up being a pull. A few significant dates where you had big news driven rallies and news about the coronavirus so first you remember that crazy march 13th late day rally when the president had that press conference with ceos, market was up well over a thousand points there was an idea that there was going to be a National Testing program. It was a little bit of enthusiasm that maybe we were getting our arms around things that rally was doomed. It obviously went to new lows over the next ten days then of course april 29th, that was a rebound high for the s p 500 come right as the remdesivir news came out that maybe it was a good treatment that also was given back in the shortterm not a disastrous way then of course monday we had the Moderna Vaccine trial. Good news that was kind of taken as an accelerant to the upside my point here is its like the trade warheadlines where on a given day, they seem to be the trigger for a lot of these rallies or selloffs. But its around an underlying trend. And the underlying trend has been the market is willing to bet that reopening means april was the low for Economic Activity and you have some momentum toward at least a lot of Companies Working their way through this phase without necessarily having disastrous consequences with their debt or anything else. So i think its important to kind of put some of those headline driven moves in a bigger context what do you say to people, the bears mostly who say this cant be a new bull market because the volatility is still so high . Its not normal to see, you know, a 900point move on the dow. Its not normal if it stays this way for much longer basically if you look to 2009 and i dont really think that this was a 2009 type event it just didnt take as long to gather up in all that. But when youre coming out of the lows, you still remain volatile for a few months after you got through those lows i think its fair to say the volatility levels have not eased back as much as you might expect given the fact that the s p is up more than 35 in six weeks. But i do think you have to monitor that to see if, in fact, were stabilizing around either these levels or maybe creating a new trading range if we base right here and go ahead. Mike, thanks so much for that were higher by 1. 6 or so on the s p 500 as we stand. The fed releasing minutes from its april meeting just last hour Steve Liesman has the highlights of those minutes for us. Steve . Yeah, wilf. From the rosy outlook of the stock market to what paul harvey used to say, the other side of the story where the fed minutes where the april meeting show the Federal Reserve saw that the coronavirus was causing tremendous human hardship and economic hardship. And was really concerned that it would weigh on Economic Activity they said some businesses, quote, some Business Models may no longer be viable in the new regime now, this is from three weeks ago, but some of the comments of fed officials recently have kind of echoed these concerns that are out there including concern about a second wave which Jerome Powell just mentioned last week. Thats why we want to take seriously some of the commentary in the minutes about additional things the Federal Reserve can do here. Including they talked about additional qe at the meeting they talked about strong Forward Guidance either date based in other words, were going to stay low and keep Interest Rates at zero until a certain time or data based until, for example, the Unemployment Rate falls to a certain level or inflation rises to a certain level. Those will be date or data base Forward Guidance the big bombshell here, the possibility of Interest Rate caps on treasuries finally, the fed staff did not see a full recovery through the year end and were concerned about the potential for secondary outbreaks. Finally, saw a better Case Scenario that was out there. I will say Robert Kaplan on squawk this morning did discuss what were going to need to do more so this idea of the stock market being relatively content with the outlook, i dont know if its based on the idea that the fed will do more, but the fed is not necessarily sharing the certainty of that outlook. Steve liesman, steve, thank you. Weve got breaking news on theme parks. Julia boorstin has more for us julia . Sara, another step towards the reopening of the theme parks in orlando reopening the parks to the task force reopening in a meeting slated for tomorrow afternoon. Now, this, of course, would potentially include dates they would plan to reopen park wills need approval from Orange Countys government before they can reopen according to the governor who did invite them to submit their plans this past friday. All of this comes as today Walt Disney World takes its first steps to reopen. They reopened part of its outdoor mall called Disney Springs with a rolling opening of the retail outlets and restaurants. But a lot will hinge on what the government says on how they can open disney chains up 4. 5 . Back over to you some light at the end of the tunnel there julia, thank you target reporting its q1 earnings before the bell today beat on both the top and bottom lines. Digital sales surged by 141 however, target paying a hefty price to stay going during the pandemic to cover increased wages and store cleaning joining us is managing director at cowan oliver, good to have you with us weve got a pretty good taste about the difference between essential stores that were allowed to be open during the pandemic target, walmart, lowes, home depot and everybody else among the essential stores, who did the best yeah, were excited about target and walmart target 140 dijal growth thats really impressive this whole theme of bifurcation, clearly the malls, jcpenney apparel is apparent. Month to month has been a risk factor too but we like walmart, target, costco drive up over 5 Million People used it at target this quarter 40 of them are new. And really reinventing retail in terms of drive up, Curbside Pickup is where were headed and this has happened in three weeks as much as it would have taken three years of different changes. So innovation here, rapid innovation, rethinking safety, and also the entire store experience this has been happening now very quickly. Target and walmart have invested in this and its really paid off. We do see it getting bigger. These are all themes were paying attention to. Are these shifts were seeing temporary or permanent the trick to Curbside Pickup is customers really love it. And they spend more often. The other issue in retail is theres a lot of consolidation happening. Youre doing less transactions but youre spending more the short answer is yes, it sticks and that enhances customer lifetime value, loyalty, market share gains. Its a nice fly wheel. As you use it, you do like it. So what does it mean for the other retailers that have remained closed . Were going to get l brands, for instance, which owns limited and victorias secret, all the trouble spots in the mall that werent allowed to be open that are going to start reopening how do they deal with the surge in online usage at places like target which also does sell apparel . I think theres aggressive that wasnt traditionally done grocery was an early innovator with this channel. So its a model that others will have to follow and youre totally right apparel is a big question mark people are not buying as many pants, really. As people stock up on Home Essentials and office. Weve seen a lot of apparel writedowns and inventory writedowns we also expect a lot of promotions in that category. It remains to be seen. Which really needs to reinvent itself lounge wear, denim, active, athleisure, those are uptrending those are all things were focused on we also think less is more, the rise of recommerce. Rethinking closing as a service. And this value story where prices matter, getting your clothes at target, costco, walmart. People love that too these are all key issues for the future of retail when you consider some of those numbers you mentioned from target and walmart and others, should amazon be nervous i guess not relative to all sorts of other retailers but relative to where peoples expectations have gotten for amazon and the part over the last couple of years where their share prices are alltime highs. Wilfred, the major theme here is the store and the future of the store as a hub. So Curbside Pickup is the genesis of physical and digital. And rethinking what retail means with merging digital and physical, are they nervous i think the future of retail involves stores. And 80 of targets online orders were fulfilled by stores. And Curbside Pickup was very successful at walmart and target so the future involves stores, the future also involves grocery and ai and all these doctors are converging so everything is up for consideration. And well probably see a lot of interesting, bizarre, relevant m a especially as apparel and Department Stores need to reinvent themselves as well. Oliver chen, thanks for joining us up next, shares of moderna on a wild right this week as the market closely watches every piece of news surrounding its vaccine candidate. After the break well speak with a former Harvard Medical School professor who says modernas ceak t announcement was ino a o giving favorable earnings without the underlying data. Were back in a couple minutes mhm, yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. Now offering zero commissions on online trades. We charge you less so you have more to invest. 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. Welcome back 45 minutes left. Were higher 4. 5 on the s p 0 500. Lets look at individual market moves. Shares of facebook hitting a new alltime high today following the launch of its shop platform which allows people to set up free store fronts on instagram and facebook and could unlock a 1. 3 trillion market according to bernstein. Analog devices is jumping after reporting earnings that Beat Estimates this morning it posted earnings per share of 1. 08 topping analyst expectations by 5 cents according to refintive sales fell short at 1. 3 billion but up a healthy 8 today. Modernas encouraging news this week putting a spotlight on the rapid speed at which companies are working to come up with a viable vaccine. Even when that vaccine is found, how quickly can they scale up manufacturing . Meg tirrell has been looking into that question for us. Hey, sara its an important question and experts say we dont actually have the capacity to manufacture a vaccine if one or multiple of them are successful for the entire world right now but that is what these companies are working on to do it, theyre striking a lot of partnerships. Take a look at just some of them these are some of the Biggest Companies in the race. And some of the partners that theyre working with Companies Like Emergent Biosolutions which is working with Johnson Johnson or lonza. Those are known as Contract Development organizations and industry a lot of us have never heard of but are playing a large role and an increasing role in making all of our medicines. And take a look at the geographic distributions at these companiesand the size of the market here. While north america has a presence of 25 billion of revenue in 2018, asia pacific has a 44 billion slice of that market and thats projected to grow to 80 billion by 2025. Of course this just raises questions about the geopolitical concerns about where these vaccines get manufactured and how thats going to play into where they get allocated if theyre successful and theres going to be major questions about that we talked about it with modernas chairman just last hour about whether therell be enough supply of these vaccines. Heres what he said. I think no matter how many of these vaccines actually make it over the finish line, we will still be constrained by the supply a lot of numbers are being thrown out, but these are just estimates. And so, guys, some of the things these Companies Still say they need, more funding in order to Start Building up the capacity to get this done. Its such a massive scale. Fascinating angle there thank you very much. Now moderna shares have been volatile theres been criticism about whether the results were as promising as they were initially perceived. Dr. William hazelltine wrote an of sed saying modernas claim of favorable results in its vaccine trial is an example of publication by press release he joins us now. Thanks so much for joining us. I said the word data at the top of that intro. Your criticism is there was not sufficient data in their release and because of that, the market was able to applaud their results perhaps more than they should have done i would say several things about the announcement it was premature only eight people had been studied. It was not impressive and it was opaque if a cfo had tried to get away with the same kind of announcement, it would have been greeted by division and possibly investigation. But isnt the point that some of these companies, doctor, are trying to get these announcements out on purpose as fast as they possibly can for the benefit of public health, for the benefit of plans to reopen economies for the benefit of trying to get, say, treatment information out there and vaccine goes along with that too . Were in a pandemic where, you know, we have people in the Emergency Rooms fighting this right now. The question is not that were in emergency we know were in emergency but in an emergency, its even more important to be clear about what you know and what you dont know there is a process which is vastly accelerated the moment the data is put together, the moment it can be presented, its on the internet. For free everybody can see it moderna did not follow that. We dont know what happened. You dont know what happened we cant see that data let me just take the financial kp m even in an emergency thats not warranted. There are many processes we have put in place that allow global sharing of data. Thats not the issue the issue is do we know what happened and the answer is, we dont. Doctor, has this type of practice become more of a norm in recent months or even recent yea years . Was moderna acting in line with what others do with this or do you think they purposefully released this information without all the full details . This is abnormal. I hope its not becoming the new normal this is a great exception. Even before the manuscript is reviewed or accepted is now part of it in this time of emergency. That i believe is good because everybody can look at the information. A doctor can make a decision lets take remdesivir. We still havent seen the data for that it was announced that it worked, sort of. It didnt save any lives it let people get out of the hospital who mighthave gotten out anyway maybe a day or two earlier, a few days earlier but we dont know it really did. We cant see the data. And what is a doctor going to do is he going to use the drug when a paper came out the very same day that says it doesnt save lives, it doesnt have any effect on the virus. What is the doctor on the front lines going to do . Are people battling over a drug that doesnt work . We dont know because we dont see the data that is abnormal and its wrong. You wouldnt accept that well, i have two things on that i mean, are you questioning dr. Fauci who also came out and said that this was encouraging news, and, you know, stood in front of this nih study hes our foremost Infectious Disease expert in this country and the other is the fda approved it. O i assume the fda would have to have seen the underlying claims. It is not approved by the fda. That is not an approved drug well, they suggested it for emergency use. Thats right. And we dont have the data for that am i questions dr. Fauci who ive worked with for many, many years and i regard as a close friend whether he shaded what should have been done i think is a question hes obviously under enormous pressure for positive results. But i think it was not the right thing to do if you cant see the data its 21 or 22 days and we still havent seen the data. How do we know it works . Would another manuscript that came out that was published in a very prestigious journal that says it doesnt work so what is the doctor going to do dr. Haseltine, i want to come back if we step away from moderna and remdesivir specifically where do you stand on the timeline for when we will have an effective vaccine, whoever it is that ends up manufacturing it you know, let me say the first question is if were going to have an effective vaccine we dont know. People have tried to make effective vaccines for coronaviruses, the type of virus this disease is for some time. Theyve not yet been successful. Some of the data that weve seen, one paper suggests with a killed virus vaccine, you can get protection another paper from a group in england in oxford, when you actually got to see the data, none of their monkeys that were vaccinated were, in fact, protected. They all had a nasal infection yes, they didnt have as much virus in their lungs, but they still had a nasal infection. 100 of the vaccinated monkeys got infected so we dont know the answer. I cant answer that question and we dont know the answer of if we cant tell you when dr. Haseltine, we appreciate you coming on. Youre welcome. Thank you. Thank you for the perspective. After the break, the road to reopening. A major milestone today as all 50 states have now begun the process of restarting their onies. Were going to dive into what the latest data show next. A number of specific developments an coronavirus responses. In georgia the latest statewide hospitalizations for covid19 dropped by about a third in the last two weeks even though it was one of the first states to reopen the total number in cases still increasing though. In florida, another test for reopening. Overall cases are steadily increasing, but the positive test rate is decreasing. Thats also encouraging as a greater percentage of the overall population is tested that state has reopened retail and barbershops. You can see not as bad as georgia, but cases still steadily increasing. And across the country, mobile data from apple and google showing a return of Economic Activity like gas usage which is up in ohio google data shows retail activity just 18 below prepandemic levels. Transit now just 14 lower than normal despite the growing case numbers in those states. Overall painting somewhat encouraging picture for the slow reopening of the states. Yeah. Indeed and one of the factors cited for the strong markets weve seen today and this week. Up 1. 6 on the s p today 3. 8 for the week so far still ahead, vogues anna wintour will join us the fashion industry faces hurdles during the pandemic. As we head to break, heres a check on bonds yields dipping today the 10yeesh sitting around 0. 68 . Were back in a couple minutes dow up 375 points. Heres something for your radar. Argentina is barrelling toward a debt default on friday again this time Retail Investors in the u. S. Stand to lose manage argentinas biggest creditors, blackrock and a group that also includes fidelity and t. Roe price according to people familiar as of today, i can report that blackrock is pushing for the group of other bondholders to place a new offer to the argentinian government valuing the bonds at 50 to 55 cents on the dollar which does mark a blackrock stance however, t still far apart from the initial proposal on 39 cents on the dollar according to a personal familiar. So well see if a group of bondholders back their latest offer and if they can provide a default with the government on friday all this drama predating the coronavirus. The broke government has been trying to restructure 65 billion of initial bonds before friday, failure to hand over that money and reach a deal or reach a deal would mark the countrys ninth default. I think the reason of highlighting it is these bonds unlike the last fight is these bonds are in index funds and u. S. Holds them. Obviously it would be emerging Market Index Fund its a little bit of a run and in this environment the only way you get that is by taking on some kind of risk whether its default or currency or other so obviously a little bit of a lesson marked down to some degree on these funds. Its not as if itll be blind sided by these you know, definitely that is the takeaway mike, thanks so much for that sara, great stuff. Well keep an eye on that on friday time for a coronavirus news update frank hollands got it for us. Vice president mike pence visiting florida today to deliver personal protective equipment in orlando pence says 8,000 inspectors have visited Nursing Homes across the country to make sure theyre Meeting Health standards to prevent the spread of covid19 in michigan, barbers gave free hair cuts on the state house lawn its a protest against the stayathome orders that have kept the salons and barbershops closed for weeks the state house has been the scene of several protests as the state remains shut down. Restrictions will be eased in parts of Northern Michigan on friday temperature screeners are one of the new jobs thats been created during the pandemic. Mass sewing is also up go to cnbc. Com for six more indemand jobs and a look at what theyre paying. Thats the latest. Sara, back over to you frank holland, thank you very much weve got 27 minutes left of trading. Heres where we stand. Were strong across the board seeing more than 300point rally in the dow s p up 1. 6 . The nasdaq charging ahead up 2 just adding to significant gains weve already seen this week so far. After the break, what happens when that pantry loading ends . Were going to ask the head of unilever north america as the country starts opening up slowly [squeaky shopping cart] [sniffing] is the salmon wildcaught . She only eats wild caught. [cash register beeps] uh, i need a price check on honey. Dont get mad. Get e trade and get more than just trading. Investing. Banking. Guidance. Or is it . What if business as usual means putting people first. And understanding their needs . If thats your business. 365 days of every year, then business as usual is precisely what these times require. Which is why your lexus dealer will do what weve always done. Put you first. Find out how we can service your individual needs at lexus. Com peoplefirst. Welcome back breaking news on ford. Phil lebeaus got it for us. Hey, wilf take a look at shares of ford. Two ford plants that have restarted production are now both idled again this afternoon. One of them expects to be back up in the next couple of hours one is the ford plant here in chicago. The other plant in question is dearborn they had to idle it due to with one of the workers there this is not surprising thats why youre not seeing much reaction from the stock nobody in the Auto Industry expected this ramp up of production to be a smooth one. They expect to see this with suppliers and auto makers at least for the first week or so as theyre starting to get these plants back online and theyre dealing with coronavirus certainly in certain areas like in the Detroit Metro area. So just to be clear, are they testing these employees at the plant . Yes, they are and they also theres a number of protocols before they begin their shift. Then if certain things are triggered as far as temperature checks, what theyre saying in terms of who theyve been exposed to, then they will be administered thats how they determined this worker was positive for cd not only with screening as they come in the plant, but also in terms of social distancing, trying to limit interaction of workers. But guys its not just ford, its all manufacturing plants its really hard to start back up in an environment where everybody was only a couple of feet away and now youre going to be at a greater distance in many cases yeah. An issue for all employers, i would think, as theyre looking to reopen. It is thanks. You bet shares of unilever are trading a little bit higher. Up a third of 1 the company has a wide ranging portfolio. More than 100 of them from food to Household Cleaning Products to health and beauty hows the Company Holding up amid the coronavirus pandemic and do they expect the shift in Consumer Behavior to continue once this is over . Joining us by phone is Fabian Garcia thank you for joining us first, talk about the impact youre seeing across your brands and your business and the balance between people shopping at the Grocery Store and for essential goods and the hit youre taking from them not going to restaurants well, thank you so much for hosting us first of all, i want to recognize that the pandemic is a humanitarian crisis. So obviously were all impacted by it. From a business point of view, you heard the results reported we were flat as a company globally and what we have seen in the market is consumers obviously are have been stocking up and that happened through the begin og the pandemic. And obviously now things have receded a bit. Consumers with adapting to the pandemic by staying home, obviously, cooking more at home. Obviously by relying more in ecommerce and all of us have experience. We are all more conscientious and with heightened sense of cleaning you mentioned some stockpiling that may have abated it a little bit. Gauge for us the level with which that has fallen from march, say, to today we continue to see a upward trend. Again reflecting these trends im talking about month to month. In march was all about building up pantry stock. And in april consumers were still looking to fill out the stocks and products that were scarce in the supermarkets of course unilever being a company with a resilient supply chain, we were able to respond to extremely high demand in my of our categories and we were able to supply fully the product in the hygiene, food, and obviously cleaning categories. Fabian, at unilever you guys have been very looking at supplies that were cleaner which is where the consumer were going before the pandemic. Nontoxic, no parabens, that sort of thing. Do you expect that to change permanently . We have had a lot of positive reaction to the products that we offer in the cleaning area also i want to highlight that all of the unilever products in all of the categories where we compete provide consumers with great value at affordable prices i dont know how many people your audience understands that unilever is the Company Behind brands like dove bar, suave shampoo, vaseline, ben jerry ice cream, or Meal Solutions or seventh generation cleaning we have 100 brands in this country. Because of their need for cleaning, hygiene, and great there. More than we ever thought it was possible before. Fabian, thanks so much for joining us thank you this is the last commercial were going to take before we approach the close up next well bring you uninterrupted coverage of the fimites of the session when we take you inside the market zone. More important than. At t is committed to keeping you connected. So you can keep your patients cared for. Your customers served. Your students inspired. 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Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. 14 minutes left in the trading day. Were in the closing bell market zone. Commercial free action going into the close mike santoli here to break down these crucial moments of the trading day along with josh brown. Well kick it off with the Broader Markets. Erasing yesterdays losses the dow is up now 377 points the s p 500 up nicely as well. And guys, if we close here, 2972, that would mark the best level since march 6. We are wiping out the pandemic losses yeah. Really two and a half weeks when we did peak in the s p, february 19th it is a pretty remarkable move i almost wonder is this market going to have to keep grinding higher until people ask why is the market up so much given whats going on in the economy clearly nothing is interrupting the general sense right now. The incremental reopening is going to refresh Business Activity the whole story weve been kind of working at for weeks now. Theres nothing thats come along to falsify it in the shortterm and therefore underinvested investors feel like they have to at least gain exposure to that theme in parts of the market that got blasted so thats whats going on. Its also with 200 day average maybe were a little bit too close to the hot stove not to at least touch it the first time. Josh brown with this scale of rebound, have you been taking profits in any stocks or sectors . No. And what were hoping for is i dont know about revisiting the lows, but we are hoping for opportunities to add in that late february early march period we hope therell be another opportunity. Thats what asset allocators look for were hoping it happens. I think the really key thing to keep in mind here, sometimes its really simple theres two things that are worth pointing out the first is the index returns, the indices have dominated by market caps that are enormous. They determine what the direction is of the major averages and because their weights are so high, what youre seeing the index do is very misleading until you look down a few wrungs and look at the median stock and the median stock is doing better and starting to price in a reopening. But theres a long way to go the second thing and this is important back to the Asset Allocation concept if youre looking at five, seven, ten year treasuries and youre saying to yourself, okay. I know theres a 95 correlation to starting Interest Rates with forward returns on an average annual basis, well, i cant afford to have my money get put to sleep at 1 , at 1. 5 . I actually have to earn something on it. So if im willing to give Corporate America the benefit of the doubt that itll be able to climb out of this earnings hole and im saying to myself, i really dont want to be more than 30 bonds or 20 bonds. I want to have equity, then it explains perfectly why youre seeing people being back in the market despite the fact that we have yet to see maybe even the earnings trough. We might not have seen the worst of the crisis financially, but its possible that weve seen the worst of what it will do to stock prices on the topic of earnings, lowes beat their earnings estimates this morning, the Home Improvement retailer seeing same store sales surge more than 11 . Ceo Marvin Ellison speaking with jim cramer on mad money about the strength of the business theres no way we could have the sustained l eed levels of g online if we hadnt made that migration to google cloud. And we have a series of other great functionalties that youre going to see from a one click checkout search and navigation, the ability to schedule and induce do all types of visibility and order destination online were going to be rolling out pick up and store lockers. Were going to modify curbside delivery we have an array of things thats going to give us one of the best platforms you can catch more of that exclusive interview on mad money tonight at 6 00 p. M. Eastern time mike, where do you stand on the difference between lowes and home depots numbers and both to have them compared to the likes of walmart and target . Yeah, i mean, lowes has been this kind of ongoing transformation story so its little more than just the macro. What i find interesting is its now in the class, lowes is of the big dominant winners at the expense of smaller players but again, lowes stopped traded well off highs of the day. I almost wonder if the market is saying we got it we gave these guys benefit for being this strong in this environment. Maybe we have to spread our bets elsewhere if, in fact, its going to be a reopened economy so you can both say good numbers, good strategy and maybe the market already, you know, has gotten there yeah. Target also down 3 maybe on a similar kind of idea it is a new era at United Airlines scott kirby taking over as the carrier ceo. Phil lebeau with the details and with the interview today sara, when you look at United Airlines, the stock getting a bit of a bump today. The virtual annual meeting was held and scott kirby said what weve heard over the last few days they are seeing a moderate increase in bookings its a clear one fewer than 10,000 passengers per day. Where are they in midmay . A little bit better. But that bottom point there is the key one. Last year they were average lin over 500,000 people for day. In terms of when things start to get higher to a more normal level, heres scott kirby on squawk box this morning. We dont know what demand will be in the Fourth Quarter and the First Quarter. No one knows what the recovery is going to look like. And so we need to prepare for flexibility. Thats the message were sending to all of our people we hope as i said we hope that we can work with the unions to avoid furloughs and actually just use fewer hours united cannot lay off workers, have major layoffs until after september 30th thats part of the agreement they made with the treasury when they took 5 billion from the federal government they plan to shed 30 of their management jobs this fall. Guys, were now in this period here where its all about cash conservation and seeing if they can see a sustained increase in demand and by that we mean something more than 50,000 people per day. United up nearly 5 now chinese tech stocks under pressure today deirdre bosa has the latest. Take a look at chinese internet etf it took a stumble midday as a senate bill was passed by unanimous consent that could delist from u. S. Stock exchanges if written into law it would require companies to show that they are not owned or controlled by foreign government. And this is widely seen as aimed as beijing alibaba fell to session lows and looks to end the session down by about where is it there . By onethird of a percent. Jd. Com, tencent music. Also recovering quite nicely that may be because it still needs to be written into law at this point thanks so much for that josh brown, whats your take on whether or not these companies will be able to get in line if this laws does become law and whether or not the u. S. Listings are crucial to them or not so this is how you know that most of the money moving on headlines is algorithmically driven theres nobody that understands this space that was a seller on this news today. Unless they thought it was greater for all and theyd be able to buy it back cheaper from someone who doesnt know what theyre talking about. 90 of the 200 listed u. S. Chinese companies that are trading here its about a central dollars of market cap combined. 90 are audited by one of the big four so deloy, kpmg theyre already mostly in compliance now, should there be a lot of lucken coffees going around on our exchanges . No i like the senate is looking at this seriously i dont think there should be publicly traded china frauds i do think that companies are domiciled in foreign countries, china or elsewhere, understand that there are consequences to their listing. So i like it i just dont know that it applies to Alibaba Alibaba is a 600 billion company. Jd. Com is over a hundred billion dollars. These companies have made u. S. Investors money. And another thing thats important is theyre already anticipating the politics spilling over into the market situation. So last year alibaba very quietly relisted itself in hong kong youre going to see trip. Com do the same thing already in motion. Youre going to probably see jd do it. And others so its going to be a political issue more so than a financial issue. So i think people that all of a sudden got bearish on chinese growth metrics or chinese internet metrics, rather, probably dont really understand what they were invested in in the first place. Well, those stocks are coming back from a dip earlier in the session on that news lets get back to julia boors n boorstin shes got an update on the theme park openings. Thats right. While there is this Orange County meeting tomorrow where were told that the theme parks would be we just heard from disney saying that is incorrect and they are not submitting a reopening proposal tomorrow. We have reached out to universal and whether they are planning to submit their proposals we have not heard back from them we are also reaching out to Orange County to get more on the reopening task force and what is happening at the meeting this afternoon you see disney shares up more than 40 back over to you slightly off their session highs. Julia, thank you the second best performer in the dow, mike santoli, disneys been buffeted around on vaccines and reopenings its a litmus test for whether as a society and economy were going to get back to normal. Right and what is normal if you turn it into occupancy rates. Also by the way, no billion Dollar Box Office movies getting released either. Its been incorporated to some degree in the stock, but it is going to be one of those sensitive names to any fluxuation expectations far fuller return to some kind of normal commerce. Looking at the market, all sectors higher what do you see in the market internals . Yeah, theyve been pretty sturdy thats pretty inclusive as i was saying before. That you would check off and say the rally looks relatively healthy at this point even though were fading from the days highs. Did want to highlight skrus to the prior point that pej is an etf, invesco leisure and Entertainment Fund disney the second Biggest Holding here its restaurants, hotels, media companies. All the stuff most impacted by the shutdown its up 12 week to date clearly thats been a theme running due. Its also down 37 from its high so thats the terrain that were now trying to recover here and theres a lot of it in these types of stocks. It is succumbing below 30. We have a threeday weekend ahead. This should bleed lower. It should get toward a range more normal. To your point earlier, it still seems like theres aftershocks or agitation in the market just because the size of that downside shock in march was so great. Its slow to fade. Thanks so much for that we have one minute left of the session. Were high by 1. 7 on the s p 500. The dow. Up 370 points. The high was up 440 or so. Nonetheless, still a healthy gain of 1. 5 today on the dow. The nasdaq charged today its up 2 in terms of the three major indices. Energy at the top of the list up close to 4 . Oil prices up 5 today continuing a very strong rebound of later up 14. 8 just this week bottom performing sector is health care. As i said, that is still positive utilities in real estate near the bottom of the pile as well all 11 sectors are higher. The dollar today just slipping a little bit mainly because of some strength in the euro. The treasury market slips a bit. As the bell goes, though, nicely higher 1. 7 on the s p 500 taking gains for the week to 3. 8 dows up 1. 5 . Nasdaq up just a little over 2 . Another strong finish for the market adding to gains for the week welcome back, everyone if you are just joining us, im sara eisen with wilfred frost and mike santoli take a look at how we finished off the day on wall street dow closing higher 370 points. A gain of 1. 5 and you got some leadership there from disney which actually closed as the best performer on the dow just in the last minute. Intel, american express, chevron led with Oil Prices Higher today. The s p 500 saw every sector higher as wilfred just noted but you still got more than 2 gains. The nasdaq also closing up higher now less than 5 away from its alltime high. And the 2,000 of small caps, it was the big winner still is the big loser on the year closing up today 3 which takes it down about 19 . So far for 2020. Coming up, we will ask the ceo of the bank truist about coronavirus efforts. And later this hour, we will discuss the new Fashion Partnership between amazon and vogue. Were going to speak with anna wintour. Joining us first to talk about the market today, josh brown still with us. First to you mike santoli and how we interpret the action today which continues to be bullish. Was there any big headline or push behind it after we got that disappointment on the vaccine front yesterday . Thats exactly where i was going to start the answer is no it wasnt Economic Data driven or really even earnings driven i think its another day went by without seeing a flare up of new infections, without really getting in the way of this idea that slowly were going to allow the business to resume an what that means is the support programs put in place, maybe theres a shot that they actually are going to be enough for now. Now, all that to me is also in the context of big professional investors who have felt underexposed to the market if things are not going to have another scare. And that to me was really you could see the footprint of that and the way we did have these slow grind higher across growth and value stocks and whether it continues, i dont know you can create an argument that s p 500 tags 300 seems like the initial phase of this rebound who knows. We have to wait and see from here gets real once we get past more. Who knows. But i think thats whats been happening mostly in the last couple of weeks. S p 500 meaning 3,000 there we close at 3,000, sorry. 300 on the spy oh, sorry how important is the 3,000 level obviously closing a little below it today, mike its important to some degree now just because i mean, moving average there its kind of flattish, that average right now. So that often has been an excuse for the market to kind of scissor above and below when its been coming from a big selloff to the upside. Maybe thats why it has significance also we havent been above 3,000 in the history of the world until last october when we got liftoff toward the early 2020 highs. That was that kind of big momentum move that got so its not as if were still talking about being on depressed levels if you look below the surface, theres still a ton of stocks down a whole lot more than that because of the distribution of that index josh brown, i feel like youve been a little skeptical of this entirerally comeback and now that were sitting at levels we havent seen since march 6th, i mean, are you rethinking your position at all . Are you rethinking your ability to be bullish in this environment . No, im still skeptical im going to tell you why. Were in these stocks like everyone is. The whole world owns apple, amazon theyre the biggest waitings in everything its not like im saying dont believe that stocks are higher as i pointed out in the previous block, the stocks that are higher happen to be really big they have never been better in the environment for what they do so im happy with that part of the market the problem becomes when you start to look at things like for example the dow versus the nasdaq the disparity is ridiculous. The dow was down about 5 or so over the last year while the nasdaq is up close to 27 . Its like these are stocks living on different planets. Well, the russell and nasdaq is even sharper. Correct so i feel its very important to bear in mind in april about a third of people who were supposed to pay rent didnt. And well get the may data soon 37 its important to point out in april about 15 million credit cards went unpaid. And weve got forbearance and the banks working with consumers so theyre not going to be racked with penalty fees but this is the environment were in 30 Million People have been thrown out of work in the last five weeks we hope that for the majority of them its just temporary and theyre coming back soon but we cant know. We cant know. So i dont think it makes sense if, lets say, you panicked and you sold but if you panicked, i dont think you look at the markets now and say, oh, my god, i have to put everything back on that i had taken off i dont think its necessary i cant give individual advice i can only tell people the way to avoid that happening to you is to have a plan in advance of how youre going to behave decide what are the things that are going to cause me to sell and cause me to buy back and if its you interpreting Economic Data, youre already a mess okay so have it be something based more on your own life, your own situation. So heres what im going to tell you. A majority of investors got this right. If you look at vanguard data, fidelity data, hundreds of millions of people did not alter their Asset Allocation, did not freeze 401 k money coming in. They left everything alone it happened too fast for them to get scared in some cases and thank god. It worked out well for a majority of investors. So where do you stand then on the amazon versus wells fargo trade for the rest of 2020 i dont have that trade on. Wells fargo versus amazon. So be long one and be underweight the other. And wait for mean reversion. I dont have that trade on i dont think itll work so its not that you dont want to have any exposure to banks. Its that i dont think you want to make a bet that the environment between now and the end of the year is going to so materially change that the best company in the world all of a sudden is going to be overtaken in gains by one of the worst run banks of the last decade its just not for me its not how ive ever done well. I like big trends. I like secular growth. I Like Companies that are doing well i know there are people that like to go the other way and fade this has been a painful market for people who see themselves as faders, knee jerk contrarians. Its just not working out well right now. Weve got an Earnings Report out. Its expedia and seema mody has that a significant miss on the bottom line. Reporting First Quarter results adjusted loss of 1. 83 versus the estimate of 1. 23 loss the key metric to watch for online travel. Down 35 in the First Quarter year over year newly appointed ceo of expedia saying like all travel companies, a major reduction in business since the onset of covid19 remember, the company has taken steps to boost its Liquidity Position over the past six weeks. The companys raised 3. 2 billion in debt and equity including over 1 billion investment from Silver Lake Partners and Apollo Global those two private equity firms did gain a board seat. So the question on the Conference Call that comes up at 4 30 p. M. Eastern is whether lower cost cuts are in store and what other changes could be in the cards for expedia. That call again starts at 4 30 p. M. On the last call it was one that got a lot of attention with chairman of expedia. Sounding off calling out the work culture calling it lazy we have to see what the narrative is like on this call thanks so much for that mike santoli, this is one of those stocks thats enjoyed a rally from its lows. Its up almost 100 from its march lows and just this past week running up significantly into earnings it looks like actually a lot of stocks in the impacted areas of this area and then its had this very kind of volatile saw tooth recovery its about the direction of the incremental chak in terms of what their baseline business levels are very hard to handicap because things were not as seema was saying necessarily going great in this industry so to me its a lot of the overall market is making the case this is not anymore looking like a classic bear market bounce thats just doomed to roll over necessarily. Because its up so much in 40 days however, those parts of the markets that were impacted you havent really escaped the gravitational pull of those in a decisive or convincing way thats why i think it does seem as if there are two tiers of this market to study if you told me got more earnings out hang on, josh. Hey, josh, i do want to come back to you but first lets get to take two interactive. Weve got josh lipton on that. Josh so sara, that stock halted. Its going to be resuming trading around 4 25 eastern. But we do have results 1. 07. Bookings here, 729 million. The street was closer to 584 million. A big beat there the q1 forecast looking between 90 cents and 1. Not clear if thats comparable but bookings, big beat 850 million for q1. Analysts thought closer to 498 million. For the year, though, a bit light. Theyre looking if bookings between 2. 55 to 2. 65 billion though remember this is a company that does historically guide conservatively in terms of the segments, Digital Online 6 635 million thats a beat 37 the other segment, physical we tail at 162 million beating expectations quote here from the company as well while fiscal 2021 will be a light year for new releases, we expect to deliver strong results due to the diversity and strength this Conference Call kicks off at 4 30 eastern, guys. Josh lipton, thank you very much josh brown, didnt mean to cut you off. Wanted to get your thoughts on the Broader Market thats okay i think thats where you were going to go or were you on to travel stocks . I wanted to talk expedia. This company is only worth 11 billion in market cap right now. So i think its one of the biggest bargaining out there if you want to bet that americans will never travel again, ignore what im going to say. If you want to make the alternative bet which is that, yes, well wear masks for six months, then therell be a vaccine, people will bring wet wipes on the plane but overall things arent going to radically change, then expedia is a better bet than the airlines like, if you know youre going to get a recovery across the board, why would you want the companies that are encumbered by debt and now new government conditions on what they can do with their workforce, et cetera, et cetera . Expedia is a better bet. Theyre going to benefit too and its an Internet Company its a high Margin Company going into tonight, 75 of the time theyve beaten earnings theyre a very wellrun business well capitalized so it makes sense that this stock has had a nice recovery. And if you told me, josh, pick a travel stock, you cant look at it for three years were going to put it in the vault. Check it again as the world forgets about coronavirus. Like, this would be the one i want to be in. Im not in it yet, but i might even after its 100 bounce from march lows . So theres strategy and tactics. Strategically this is the name i like tactically is today the day i buy it after a monster move this week maybe not. Josh brown, thanks so much. I have a tactical question for you. Just quickly, you said at the onset i want to be really clear. Youre feeling bearish and sentiment or in thought but youre positioned bullishly . Well, we run a strategic model and practical model for clients. Our tactical model has more nasdaq and almost no s p and no international so you can infer thats the overall posture with the caveat every household has a different mix of those strat yes and no household looks exactly the same because this is not a hedge fund every client has a different investment objective and needs a different level of risk. So to answer your question, im very skeptical that the economy just wakes up a month from now and everything looks great i do acknowledge the fact that some of the comps are going to look incredible. Were going to see things Like Airlines up 700 in a month. And its going to sound great. The environment is still going to be lousy. We dont know what Investor Sentiment will be. Great to see you as always. Thanks for joining us. Up next, we will ask blackrocks Jeffrey Rosenberg whether he thinks negative rates could be coming to the u. S. In the near future and what it ulme fwod anor investors were back in 90 seconds at mercedesbenz, nothing less than worldclass service will do. Thats why were expanding your range of choices. Many dealers now offer optional pickup delivery and athome maintenance, as well as Online Shopping with Home Delivery and special finance arrangements. So, whether you visit your local dealer or prefer the comfort of home you can count on the very highest level of service. Get 0 apr financing up to 36 months on most models, and 90day firstpayment deferral on any model. And their financial wellbeing. Since our beginning, our business has been people. Its evident in good times, with decisions focused on the longterm. And crucial when circumstances become difficult. That continued emphasis on people our advisors, associates, clients and communities gives us purpose, strength and a way forward. Today. And always. Welcome back lets get to bob pisani for a summary of todays Market Action hey, bob highest since early march for the s p 500. Were approaching that 200 moving day average the right leadership today, i keep emphasizing the need to broaden out the rally. Cant just be faang stocks, folks. We need banks. We need energy we need industrials. Theres american express, a great day. Chevrons up 5 , 6 this week. Caterpillar is up 7 , 8 this week boeing up 10 or 11 and another good day today banks, energy broadening the market the stocks were a little weaker. Thats fine. They had a run earlier merck, pfizer weaker home depot, how come that wasnt good today have you looked at home depots chart . This is a v essentially. It hit a new high yesterday. Its valued so given theed ath added expense, no surprise it was there. Well have an ipo at the new york Stock Exchange. Its going to happen pricing in the next hour this is select quote they do the insurance quotation sites. Theyre going to price 25 million. Its a pretty big deal and priced for trading tomorrow. Keep an eye on that one. Big for baby boomers looking for insurance policies guys, back to you. Its odd to have an ipo at the Stock Exchange with the floor not even open for trading. Bob, thanks. The treasurys 20 year bonds met with pretty Strong Demand after being met for auction for the First Time Since 1986. Of the multistrategy fund. Jeff, thanks for joining us. What is the demand and the test of the market for 20 year bonds say about the overall environment and the Bigger Picture right now . Well, it says two things. It says, you know, first of all were going to get a lot more issuance and, you know, reopening the 20year size was bigger than expected this is just the tip of the iceberg of what were going to see Going Forward. As we look to pay for and fund this historic expansion of fiscal policy. So that being said, it went a little bit better than expected. But its the taste of stuff to come. So whats your view on u. S. Treasuries would you be a buyer of them at the moment so, you know, u. S. Treasury market is in a very different place. And, you know, the other big news outside of, of course, the treasury auction is the fomc minutes and everyone was very focused on whether wed get more clarity about how the policys going to evolve beyond just simply supporting market functioning. And we didnt really get that today. Well look for that in the future but what we have underlying support for market functioning with some discussion around what many Market Participants have been talking about are we buyers, sellers, based on the fundamentals and expectations of inflation. Were simply looking to what is the fed going to do. What rates will they tolerate. What curve shape will they want to see because this is no longer really a free market thats determining prices but really the fed using its Balance Sheet to offset the supply are you saying the bond market is totally disconnected from the market reality . No, because the economic reality is what is ultimately driving the feds policy decisions. The attainment of their objectives but theres a much, much more forceful intervention in the market today you know, in a very short period of time, we have effectively altered the structure of how monetary and fiscal policy works. You have to appreciate how large of a change it is when the fed took Interest Rates to zero and said our Balance Sheet is at the use is for the use of fiscal policy we will maintain and support market functioning we have seen an enormous expansion of the Balance Sheet in order to accomplish that. So yes, youre suspending a lot of the old ways of thinking about how investors set prices and injecting a huge new player, the unlimited size of the fed Balance Sheet. Absolutely a huge structural change we talk about what is value, what is the right level for bonds in the market. Jeffrey, what are investors doing with fixed income . Are they still treating it overall as safe haven and dont really kind of care how much its run up . Or are they kind of price sensitive and selling their bond allegations . Its interesting. I listened into the earlier speaker and he was talking about, you know, how he uses bonds and he shifts his stock allocation and bonds out of that thats a very traditional way of thinking about stock bond allocation but i think youre going to and investors are really going to have to rethink that assessment in the environment of what i just described as you have now the proximity to the lower bound. If youre using bonds as safety to offset your equities, you have a lot less of that safety in the potential for bond yields to fall. Youre much closer to the lower bounce if theres another downturn, but the degree to which youre going to get that benefit is much, much lower and so youre going to need to rethink what that mixture of stock bonds means in a world of Interest Rates much closer an the back end of the curve is closer to Interest Rates we saw after the 08 crisis it was a very different environment. Thanks so much for joining us. Thank you thanks Jeffrey Rosenberg of the blackrock system bond fund l brands earnings are out. Courtney reagan has the numbers. Hi, wilf. For their First Quarter, theyre reporting a loss of 99 cents thats wider than what the street was looking for estimating the loss would be about 72 cents revenues also missed expectations at 1. 65 billion. The street was looking for 1. 72 billion. Overall comps for l brands which is Bath Body Works and victorias secret, very interesting divergence within that bath and body works comps were up 40 remember they sell hand sanitizer. While victorias secret comps total were down 13 . Again, the physical stores for this retailer closed during much of the quarter shares of l brands bouncing around just a little bit now effectively unchanged. Back over to you thanks so much for that now the new home of high fashion could be amazon possibly vogue editor in chief anna wintour will tell us why many are turning to the oinnle giant to boost sales in an exclusive interview coming up. The video game maker taketwo interactive resumed trading. They were halted for their earnings sharply higher up more than 7 after profit more than doubled in the Fourth Quarter. Revenues, bookings all coming in stronger the ceo saying in the release nearly all of our titled out performed in the Fourth Quarter as people remained home during the pandemic well send it now over to mike santoli for a look at Market Sentiment and where we stand right now. Mike yeah, sara. Its a little more upbeat. I would call it mixed at this point. Id say more neutral versus its history, about twice as many bulls. Look back in march that was a good bullish signal when it was negative basically more bears than bulls. I call it neutral. A tail wind for stocks as a sentiment indicator. Now were hitting lows at the bottom end of the range from the last couple of years this is shortterm options this is starting to surface as a little bit of a complacency signal so maybe tactically means it could become a head wind for stocks making further progress right here, guys mike, thanks so much for that interesting indeed breaking news on Aurora Cannabis shares of aurora up 16 right now after announcing an all stock deal to buy the company reliva for 40 million relivas product sold in Circle K Convenience stores and all products are 20 or less something the ceo said is key in the current economic environment. The current estimates for the cbd market is that theyll grow itll grow to about 25 billion by 2025. Again, shares of aurora rising 18 afterhours trading after announcing this deal back over to you thanks so much for that up next, we will ask the ceo of truist whether he thinks the financial industry could be set for another wave of mergers. And tonight main street in crisis the struggle for businesses in springfield, ohio. Plus pitbull stepping up for latino Business Owners and will your Summer Vacation exist this year . All of that comes up tonight 7 00 p. M. With scott wapner. soft music [female vo] restaurants are facing a crisis. And theyre counting on your takeout and delivery orders to make it through. Grubhub. Together we can help save the restaurants we love. Wthe Natural Light is amazing. Hardwood floors. There is a bit of a clogging problem. clog dancing at least geico makes it easy to bundle our renters and car insurance. Yeah, helping us save us even more. For bundling made easy, go to geico. Com zbrmplgts were back the additional 25 million will go towards bringing Technology Services to undervalued communities. Aid Small Businesses and volunteer efforts. Truist ceo kelly king joins us now. Good afternoon to you. Hey, will how are you . Very well thank you. Well get to that fill tlopic efforts in a moment, but i want to start more broadly in terms of whether or not youre seeing optimism in terms of the Economic Activity youre seeing which the broader indices particularly the nasdaq clearly pointing towards even if Bank Share Prices themselves suggesting the opposite. Yes there are some green shoots out there. I was just looking at some numbers in the last couple of da days for example, we had the highest level of production in the month of april that weve ever had with robust mortgage activity. Interestingly even consumer activity judged by looking at our debit and credit card transaction activity is down year over year, but still not as far down and if you take travel, its actually up. So its not as bleak as we might think. You know, when we look around in terms of the tragedy of the medical statistics the underlying Business Community is actually better than you might think. So we mentioned youre entering your giving at this time is that focused on smaller businesses, for example . Are those the areas that need it most that arent seeing some of that bounce you just mentioned yes well, the small Business Community represents the majority of the employees into country. It is being hardest hit by covid19 ppp is helping but theres still so much need out there. Most Small Businesses dont have the same they live week to week what were going to do is go in and supplement ppp providing financing through some of the organizations that are prepared to help some of the smallest businesses Like Community Development Financial institutions theyre set up to help the smallest businesses with some of the most difficult situations. Were going to be putting money into the cdfis to help them reach into the Small Business communities and help them a lot. Then were going to use connectivity were trying to focus on areas that are kind of forgotten so there are a number of areas in the country that theres no real connectivity for these Young Children out of school trying to learn. And so were working with some really good partners to figure out a way to get internet capability into these homes that would otherwise not have it at all. So were using this money to reach in, to help those areas that are not being helped in other ways and we are really excited about it its really good to hear, kelly. This is sara i just had a question for you back to the markets on the Federal Reserve. And the fact that were back to rock bottom zero Interest Rates. When do you think that ends and how much of a challenge is that for you on the Business Model . Hey, sara its a really big challenge for banks. You know how dependent we are generally on Net Interest Margin although im happy we have a robust nonentry line of businesses like insurance work with the fifth largest entity in the country and so forth for the Banking Industry, its extremely hard when rates stay low, it makes it very difficult to get the margins we need. They want to keep rates as low as they can theyre right about that its still the right thing to do and so i believe rates are going to stay, you know, in the general range that theyre in probably throughout this year and maybe a good ways into next year then as Economic Activity is stimulated, youll see them be able to slowly raise rates they may actually be very smart about how theyre handling this different than the Great Depression even better than the great recession. So i comment chairman powell and his team so theyre doing a really good job. The banks are working really close with them through ppp and other programs so a lot is being done which is why i am somewhat optimistic that while this is going to be hard, youre going to see a really hard Second Quarter a little better Third Quarter and tougher fourth quart canner. But were going to get through this working together. And i hope people will not lose hope because we have a real sound Financial System that is working very closely together. We have lots of tools available. And its going to work out just fine kelly, you, of course, executed one of the biggest mergers in the u. S. Banking space for many years theres rumors we may see more of the same in the coming months and the crisis provides opportunity there. How hard was it to get to the point where you and suntrust decided to merge do you expect there to be a wave of further consolidation or one or two or none well, you know, our merger precovid was a result of what i call the first crisis. This is kind of the second crisis medically induced the first crisis was a change in paradigm with regard to consumers when they decided to demand more convenience and then amazon stepped in to meet that demand it changed the world all of a sudden we found the consumer demand, the integration between touch and technology we saw the need to get ahead of the curve. And maintain the already existing level of trust we had i believe other institutions are going to have to reach the same conclusion i said it before covid and ill repeat it now. I have no specific information about any institution. But i believe youre going to see an increased level of activity that will actually be very good. Itll be good for the economy. Itll be good for the industry itll be good for the consumer its just a good thing look, theres still over 5,000 institutions in this country and im pulling for the small banks. Dont get me wrong but all of us however large we are have to find ways to meet the consumer demand. If the Banking Industry does not adapt, then others will adapt for us and so, you know, were going to change and were going to make it work. Kelly, good to see you. Thank you for joining us thanks. I tell you you have two new viewers in your station today. My two grandchildren juliet and knox and theyre watching anxiously to see your good show. Oh, congratulations thats good news we like to end it there. Nothing like becoming a grandfather. Yeah. Thank you. Coming up, amazon is the place for all your essentials from toilet paper to groceries and now high Fashion Anna Wintour joins us to explain why. Coming up. Right now is a time for action. Thats why usaa is giving Payment Relief options to eligible members so they can pay for things like groceries before they worry about their insurance or credit card bills. Discover all the ways were helping members today. Welcome back high fashion meets amazon. Vogue, Amazon Fashion, and the council of fashion designers of america launching the new Digital Store front called Common Threads vogue by Amazon Fashion. Itll focus on connecting small and medium sized fashion businesses directly to amazon consumers. And joining us now to talk more about it is anna wintour, editor in chief of vogue and conde na t nast thank you for having me so it obviously gets your attention and captures the headlines. Ann a wintour and jeff bezos comes together on a collaboration. How did it come together we launched a Common Thread right after the pandemic hit, because the fashion industry and particularly vogue and the cfda both have a history of wanting to support Small Businesses and Young Creative talent. When unfortunate incidents such as 9 11 or now this pandemic hit not only our businesses, but businesses all over the world. And we were lucky enough to have forged the Cfda Vogue Fashion Fund back in september so we just repurposed that particular niche ty and immediately started to raise funds to support Young Designers and Small Businesses obviously this was not a bailout, it was more the opportunity to give small grants to businesses and designers who really had no means of paying any of their bills or really want wanted the opportunity to stay in business or help support their businesses until at least revenue started to come back in in a meaningful way. And then at the same time, i was very fortunate to be able to talk to christine who is the president of Amazon Fashion. And suggest to her that this also might be an opportunity for amazon Common Thread to join forces in creating a store front on Amazon Fashion that would also help give support and visibility to 20 american designers who were most in need. Anna, is it a sort of partnership that you think the fashion world, the luxury world does reluctantly a little bit even if its the pandemic. Does luxury partner with amazon typically which is more mass market i think this was an Incredible Opportunity to help Young Designers who were really struggling i was listening to the guest that you had on just before me talking about Small Businesses its the same in our world its Small Businesses whether you call them a luxury, accessible, or whatever it may be that are struggling because they have no sources of revenue coming in. So not only did they support us, they made a donation to a Common Thread so this was an opportunity for the industry to help these people and help them understand there was a creative talent that needed a future to not close up shop this was really to support creativity and fashion in this country. I think they should be applauded for seeing that necessity. How do you think the longterm impact of what we are going through . You mentioned some of the Small Businesses and the fashion designers getting hurt what do you think sticks as far as what comes out of the crisis and how consumers change what they buy i think its been c catastrophic on young businesses and Department Stores. Youve read about some of the companies that are being forced into bankruptcy. So i think its really giving the industry a pause i think everybody is rethinking what the fashion industry stands for, what it means, what it should be. I think our customers, our readers, our audiences are going to want to be aligned and want to buy brands, designers that they feel are in step with their own values i think theyre going to care deeply about sustainability. I think theyre going to care deeply about what a design or a brand might mean i think theyre going to care about what theyre buying, the value and price point. I think its a chance for everybody to slow down, produce less, and really make the world over fall in love with the creativity and the passion of fashion. And maybe have a little bit less of an emphasis on things moving so quickly and an emphasis always on whats new i think fashion should last. It should be emotional it should have memories. It should be meaningful. And i think that we need to really reevaluate all of us that work in this industry how we can best present that with everyone staying at home during lockdown, anna, i think theres been a trend to shift to wearing whatever is most comfortable as opposed to what is most fashionable. Do you fear that that might have a Lasting Impact i think that when we start to reemerge and weve seen this already in some of the countries that are slowly starting to open up, it seems like everybodys first stop is to the hairdresser. And they are starting to shop again. Certainly there are going to be a lot more people working remotely that probably means more of an emphasis on comfortable clothes. But i also think theres going to be a huge desire to dress up and to have fun and to go out and to look your best. So i dont believe that only comfortable clothes are going to be all that we see on the horizon. I think theres going to be a great demand and a great yearning for beautiful clothes and creativity and selfexpression. So i think what we in the industry have to look at is, you know, how we present that best to the consumer. And i think that we have been guilty, all of us, of maybe pushing out too much too quickly and not allowing his or her to really enjoy it and value it and understand what it means anna, what has it meant for the magazine industry and for vogue and conde nast weve seen the pain that the newspapers are facing and the fact that advertisers are pulling back right now in this recession. Yes how is your industry dealing with it . Obviously weve had had to po and weve had to learn how to work in a very different way, and learn how to connect and communicate remotely, and how we can manage our shoots in a very different way. Obviously, weve all been working a lot with selfgenerated content, but i i actually think we created these vogue global conversations over the past few months and were continuing its been a great opportunity for all of the vogues globally we have 27 editions all over the world to talk about designers and ceos and retailers about what our industry should be Going Forward and indeed what the future of fashion media should be, and i think it is really a time for reflection and thinking differently and understanding that the old way simply isnt going to work as we reemerge, and i think whats been incredibly encouraging is how strong all our content is across all of our titles have been in conde nast during the pandemic and weve had such loyal engagement and 30, 40, 50 up in some cases the audiences are out there and its just how we work with them and how we stay engaged with them as we reemerge. Finally, you had to cancel the met gala, obviously, because of the pandemic and we saw a lot of celebrities instagraming about that yeah. Can you do a met gala next year if theres no vaccine i think that is a question that is impossible to answer and obviously, that will be entirely up to the museums discretion and the guidelines that we are set by the city. I mean, we have to obviously, respect and put everybodys safety safety first, but as im learning to live in a totally virtual world, if if i hope not, but if come 2021 we cannot have a physical event well just have to figure it out virtually Everything Else anna, thank you so much for joining us great to see you of course a pleasure thank you. Thank you still to come, your earnings breakdown, expedia, l brands and taketwo reporting results well dig in when we return. 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. 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Time for a coronavirus news update frank holm has it for us good afternoon, wilf, here is the very latest. Buyers are finding supplies are tight. More than 40 of homes face bidding wars during the four weeks ending may 10th, thats up from just 9 in january. Go to cnbc. Com to see how sellers are reacting to these bidding wars. Tesla has dropped its lawsuit against the california county where its Assembly Plan is located. The county shut down order for the plant contradicted state policies tesla started production at that facility earlier this month. A maryland restaurant is trying to poke fun at the social distancing the bar and grill in ocean city has bought ten bumper tables for its diners and the company that makes the tables calls it an adult version of the toddler walker it got it in anticipation of the governor opening up outdoor dining, fish tail is known for the seafood burrito. I dont know how it will work with the bumper tables, sarre a back over to you that looks goofy, but whatever works up next, shares of expedia higher after reporting reports moments ago. The companys Earnings Call moments away and well bng yriou the highlights right after the break and the stock up 4. 6 after hours. Where will you go first . Will it be familiar streets . Or perhaps unknown roads . Wherever you may go, lexus will welcome you back with exceptional offers. Find a lexus for every road at lexus. Com. No payments for up to 90 days on all 2020 lexus models. Experience amazing at your lexus dealer. However, there is one thing you can be certain of. The men and women of the United States postal service. Were here to deliver cards and packages from loved ones and also deliver 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. [female vo] restaurants are facing a crisis. 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Seema modi the stock is up after hours and it was up by 2 and now 3 on the comments of Ceo Peter Kern who tried to convey that while march and april were bad, theyre starting to see nice growth coming into may and he said there are green chutes as Summer Holidays approached and cancellations have settled down and have potentially stabilized and as more people leave the city and look for Vacation Rentals this summer,e verbo has been a hot spot. Driving further costcuts remain a priority and implementing a costcutting plan in late february before the height of the pandemic the stock up 4 , wilfred and sara seem modi, thank you very much mike santoli, green chutes is that going to be the new term on the Conference Calls as the states start to reopen and i guess the question is how much does the market get excited by that when the market has factored in green chutes here. Its the new old term, right . We did start to hear it in 2009. We do get some macro data tomorrow when we test this idea, right . Jobless claims and market pmis and housing numbers and leading indicators that will give a test finally with some numbers in may that maybe the market will find worth reacting to one way or the other. In terms of the sectors that have performed and everything is up today, but its alternated this week in terms of the underperformers and then the typical outperformers. Yeah. You can say the laggards and the cyclical stocks have definitely outperformed and not really at the expense of the old leaders and well see if that can continue as well thanks for watching fast money picks up next. Fast money starts right now. Im melissa lee. Guy adami, tim seymour, Karen Finerman and dan nathan. Beware of the breakout that is the message from one top analyst and why he says the race for the coronavirus cure could be a race for the exits. 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