Transcripts For CNBC Closing Bell 20240713

From tjx to l brands to bjs as they report sales better than feared. Coming up on todays show, the view from the south. We will speak with atlanta fed president Raphael Bostic about how reopening is going in his district plus, Scott Gottlieb has called Antibody Testing a game changer. We will speak with the head of quedel and we will ask how his companys rapid diagnostic measures are up to the traditional tests we talk so often about. As sarah said, lower 0. 6 but off the sessions low Mike Santelli is tracking a volatile day for the market. Joining us to discuss big money being spent in the race for a vaccine are Chris Meekins from Raymond James and meg terrell as always mike, lets start with you. Yes s p 500 pausing right below levels everybody is walking, 3,000 on the upside, right around the 200day average look at a oneyear chart of the s p, we spent most of last summer in this relatively narrow defined range between 2,800 and a little over 3,000. So it is familiar territory. I dont think necessarily it means market stops in its tracks here often we kind of over shoot some of the widely watched levels once they get close by also, theres a lot of action below the surface. Today is another day when you have some of the big cap winners backing off. Banks also lower, but value and the average stock are outperforming. Take a look at our onemonth basis, the high data etfs, the most aggressive stocks in s p, well outperforming the regular index as well as the low volatility version it shows a riskseeking tone in the market, probably what you would want to see when the market is in rally by the way, it is fairly impressive the high beta etf is outperforming today because semi conductors are the Biggest Group in there and down 2 as a group on some of the china talk, guys. Yes lets hit some of that china talk, mike stay with us, if you would, because the tensions between the u. S. And china are ramping up again, the white house releasing a critical 20page report referring to beijings economic practices as predatory and calling out chinas Human Rights Violations President Trump also tweeting yesterday that china is holding a massive Disinformation Campaign to elect joe biden as president. This comes after the Senate Passed a bill yesterday that could delist Chinese Companies with auditing practices not up to sec standards for u. S. Stock exchanges. Although the bill hasnt been voted on yet in the house, it may already be having ripple effects. Reuters reporting that the china Search Engine baidu is considering delisting from the nasdaq and moving to an exchange closer to home but the governments critical position on china not unpopular. Evercore has been taking a look at the data, and it shows that the percentage of americans with a favorable view of china has been steadily declining since 2017 even more stark is the change since just january when the coronavirus outbreak first began to gain attention. 31 of americans now view china as an enemy, up from 23 from the start of the year. Just moments ago more news here. The journal reporting a Bipartisan Group of senators are proposing a bill to sanction chinese officials over actions taken in hong kong the law would also penalize banks that do business with the entities in china. Mike santoli, to what extent is actual policy action in the form of tariffs, potentially going back on the trade deal or Something Else being reflected in the market . I wouldnt say reflected very sharply just yet, sarah. I think it is unwelcome rumblings. This is something that given Everything Else that investors are trying to contend with, it is not something that they were looking toward the opportunity to start to worry about again. That being said, i do expect that you are going to have a campaign where the candidates are going to be competing with one another to seem harder on china than the other one so thats not necessarily a constructive backdrop, but it would take i think something more tangible, something on the trade front, something more economic aggression toward companies in the other country and things like that because right now what we really care about is we shut down the Domestic Service sector, and the Domestic Service sector coming back is the biggest swing factor it doesnt have to do with trade or the global pace of growth so it is a secondary issue, but obviously with the prospect of becoming a major one if it gains steam from here. Mike, thanks so much for that not really massively affecting the market in fact, industrials which are often linked to china news, the best performing sector, up. 2 of a percent. The u. S. Pledging more than 1 billion to Pharmaceutical Company astra zen kzeneca to het development of the vaccine and to secure 3 million doses when it is ready. It is the latest to receive funding. With us meg tirrell and policy analyst Chris Meekins. Meg, ill start with you how significant is this funding . What does it say about the relative optimism compared to some of the other companies we mentioned in terms of who is winning in the race to provide the vaccine first . Yeah, i think that graphic really nicely sums up how big of a deal this is it is twice the size of the previous grants from barta toward covid19 vaccines, more than a billion dollars what is really remarkable about it is the timelines associated with it. You know, astrazeneca partnered with oxford guaranteed 30 million doses to the uk by september. This is for 300 million doses to the u. S. By october if all of this goes well so this is a pretty massive deal and the promises being made are being made on very little data that weve seen so far, wolf. Well, on that point, meg, isnt the oxford one, the one over the weekend that showed that the monkeys that got the vaccine got reinfected yes, and you had william h e hazeltine on yesterday and he wrote a piece that we asked about this morning he pointed out while the vaccine appeared to keep the monkeys from getting pneumonia in their lungs they did find they were still infected in their noses. The ceo of astrazeneca telling us this morning they were challenged with a huge amount of virus, and as they go through human studies they may find they need to use a second dose to boost their response but he sort of discounted hazeltines take on that monkey study. Chris, how surprised are you by this move, by the u. S. Government 300 million, thats essentially one for every member of the population theyre really placing a massive bet on this. Yes, theyre placing a massive bet but i dont think it will be the only massive bet you know, the u. S. Congress gave an unprecedented amount of money to Biomedical Advance Research and Development Authority to do just this. The u. S. Government is basically saying, were willing to invest some money and lose it for a vaccine that ends up not working if we can take a bet and place it on one of the ones that does work and it advances the ball by three or four or five months down the field i think it is not going to be the only one i would suspect they would look at these types of investments and add to potentially some of the other investments to really try to get those doses ready so that if we do get a product that can reach emergency use authorization by the fda, does show some efficacy, we can get it into people sooner rather than later. Chris, where is the u. S. Relative to other countries in terms of Vaccine Development candidates and funding so that American People will get the vaccine . Because, i mean, this is a global issue. No question it is a global issue. The u. S. Really has something thats unprecedented globally. Barta, the Strategic National stockpile, project bioshield, all of these programs dont really exist in a lot of other countries. Weve seen some International Collaborations with entities like sepi and others, but really the u. S. Is the leader i think the u is placing a lot of money, more money is likely to come, more than 10 billion was appropriated by congress for these types of things. You have seen them spend about 2 billion total out of it so i think theres a lot more room to grow, and i think thats encouraging. Now, with that being said, if we were to get a vaccine before the end of the year that would be unprecedented speed, and the assumption should be for most americans youre not going to see it in 2020 it is probably at least a 2021 issue, but every step forward is encouraging right now. The government, despite all of the failures with testing early on, seems to actually be doing the right thing on vaccines. Chris, the question we always come back to about how much this actually means in the end for the companies that successfully produce the vaccine, i mean astrazenecas stock had a good start to the year. It is only up 2 or so today, despite eliciting this huge amount of money from the u. S. Government before even completing the vaccine i guess the uk listed the stock did close higher than that, but would you have expected a bigger reaction than 2 , 3 higher on the news i think the data over the weekend brought some questions into that, so i think that presented some headwinds with that being said, i think that any progress we are seeing is good. But the assumption for whether it is the treatments or whether it is the vaccines, most companies are saying theyre not looking to get rich and make their year off these vaccines. Theyre doing it for public good theyre going to cover their costs. Theyre going to make some money when we get out of the pandemic potentially, but right now theyre really looking to be effective partners and are viewing it as a Global Investment for the global community. I think in the u. S. By putting the 300 million doses and putting the money up front for that, well end up making sure the u. S. Is in line if this thing ends up working. Meg and chris, thank you both for joining us. Thanks, everybody. Thank you still ahead, georgia was one of the first states in the country to reopen on april 24th. Since that time coronavirus cases have risen by 82 but trending lower over the more recent week or so. We will sped with atlanta fed Raphael Bostic and what he is seeing on the ground in his district were back in a couple of minutes. Eliquis is proven to treat and help prevent another dvt or pe blood clot. Almost 98 percent of patients on eliquis didnt experience another, and eliquis has significantly less major bleeding than the standard treatment. 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Still looking at gains of 3 for the week some individual Market Movers for you right now, shares of netflix sinking after the company said it will ask inactive members if they want to cancel their subscriptions users who havent watched anything for a year must now confirm they want to keep their memberships or will automatically be cancelled netflix says inactive accounts represent half of 1 of its overall member base and have already been factored into Financial Guidance and in a rare move during these Uncertain Times collect quote debuted in a virtual ipo at the New York Stock Exchange today. Shares of the Comparison Company trading above their trargt range, 17 to 19 under the ticker slqt, up 35 , trading at 27 a share right now, wilfred how about that an ipo. An ipo, absolutely. I also want to say much respect to netflix for that move usually it is the opposite you expect from companies which is keep quiet and we will collect the money even if no one is using it the fact theyre actively willing to give up subscribers is commendable even if it is only a small percentage. Moving on. With coronavirus decimating many companys stock prices a record 46 have adopted poisoning pills by enabling existing shareholders to buy at a discounted price, up from over 45 sorry thats up from 45 over the prior three years. Here is how poison pills break down across industries with Business Services and industrial at the top of the list the media space, four unique instances. Julia boorstin joins us with a deeper dive on some of the names. Hey, julia. Thats right. There are four median Entertainment Companies depending on live events, gatherings of people and advertising that have recently adopted poison pills now, six flags, look at that stock, it is down by half this year it adopted a poison pill plan at the end of march, saying, quote, it intends to guard against tactics to gain control of the Company Without paying all stockholders an appropriate premium for that control theyre relying on advertising and live events, i heart media shares are down by about 57 this year, saying the shareholder right plan does not deter it from considering fair offers Clear Channel outdoor, spun off from i heart last year, it adopted its shareholder rights plan on tuesday and radio broadcaster intercom is down about 60 to just about a 150 150 million market cap now. It is worth noting though that to different degrees these companies were all facing challenges before coronavirus, just exacerbated because of the crisis back over to you. And mike santoli is with us for this discussion. Julia, firstly, so nothing from cbs viacom which i guess of the traditional tv companies at least is the one that jumps to mind of being very cheap and therefore might potentially consider this. Are they, in fact, out there looking, hoping someone will make an offer for them well, you have to remember, so the companies that have a Controlling Shareholder are really dont need to do this so cbs viacom, of course, has Sherry Redstone. National amusement is playing a huge role in the company the shares are down dramatically this year, but you have to remember Sherry Redstone and her role there and her ownership stake. Mike, i mean this hasnt usually been typical or popular, i should say, with the shareholder advisory firms, iss and other shareholder rights unless absolutely necessary. How should investors feel about it well, yeah, in normal times it is usually frowned upon it is seen as not particularly shareholder friendly, but when companies see their valuations go to very depressed levels, levels that they believe make them vulnerable to a hostile move, basically below where they think any reasonable estimate of longterm value sits, i think this is the logical defensive posture that you will find these companies take, especially when that valuation drop has been very rapid so, yes, typically it is not necessarily considered to be a great feature of corporate governance, but right now i think you have a lot of boards that say, this is not the time to necessarily be worrying about that exactly. Julia, while we have you here, there have been developments this afternoon on universal orlando reopening. What can you tell us there thats right. Universal orlando just presented its plan to the Orange County Economic Recovery Task force, suggesting opening the park on june 1st for employees and then bringing in guests to the park starting on june 3rd and 4 ith this was approved yu naunanimou. The task force voted to approve the plan, it was approved unanimously excepting the people who abstained because of conflicts of interest here dramatic here that the park is getting ready to reopen just within, you know, the beginning of june. So theyre going to be taking all of these precautions, doing temperature checks, mandating masks, but it is all coming up very soon, sarah. All right theres our parent company, owner of universal, comcast. It is pretty much flat, down a bit today. Julia, thank you still ahead, cnbc and change research asking likely swing state voters for a oneword description of how President Trump has handled the pandemic you can see the stark divergence of views in this word cloud. After the break we will drill down on michigan and well tell you why virus policy is uniquely important in that state ere wh President Trump is at the moment well be right back. Tempurpedics mission is to give you truly transformative sleep. So, no more tossing and turning. Because only tempurpedic adapts and responds to your body. So you get deep, uninterrupted sleep. During the tempurpedic summer of sleep, all tempurpedic mattresses are on sale during the tempurpedic summer of sleep, ever somethings gone mogotten into the office. M, i hear you. Feels like theres no barriers between departments now. Servicenow. The smarter way to workflow. [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. President trump touring a ford factory this hour in the key swing state of michigan. Ylan mui joins us with a look on why pandemic policy is important in that state. Ylan. Wilfred, cnbcs exclusive polling shows that the pandemic is personal in michigan, more so than any other state in the survey voters there are more likely to know someone who has actually contracted the virus, whether it is a family member, a friend, a coworker or just someone in their community. Voters there are also likely to be feeling the financial consequences of the pandemic 41 of the voters we surveyed said either theyve lost a job or someone in their household has, and half of the voters said theyve either directly or indirectly suffered lost wages there are signs this is shifting the way theyre responding to the outbreak michigan is not just an electoral battleground, it is also the center of the clash over how to reopen the economy armed protesters even showed up at the state capital to rail against the lockdown our survey shows michigan voters are really worried that social distancing is hurting the economy. 46 have very serious concerns compared to just 39 in the rest of the battleground. So, guys, we do find in our research though that voters there are still washing their hands, avoiding large crowds and wearing masks, but we do see some variation along party lines. Back over to you. Well, it would be interesting until the election ylan, thanks time for a coronavirus update broadly with sue herera hi, sue. Thank you, sarah. Here is what is happening at this hour. In ohio diners in restaurants are welcoming in customers for first time in two months new safety procedures are required groups must be viewer than ten people and the tables must be at least six feet apart employees have extra cleaning procedures to follow most are also supposed to wear a mask in North Carolina another outbreak at a tyson food plant 570 employees tested positive at the wilks boro ft. Lauderdalery facilitfacility the majority of the workers are not showing any symptoms production at the plant is ramping up after a deep cleaning a British Government has agreed to buy tests from roach and abbott the tests are part of the countrys plan to expand testing and tracing of new infections. You can always get more at cnbc. Com back to you. Sue, thanks as always after the break, dont miss our exclusive interview with the atlanta fed president Raphael Bostic we will ask whether he thinks the worst data is behind us and his thoughts on the path forward for the economy. Before the break, here is a check on bond yields mixed today depending on which part of the yield you are looking at the tenyear around 0. 68 . Woi felt completely helpless. Hed online. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. This virus is testing all of us. And its testing the people on the front lines of this fight most of all. So abbott is getting new tests into their hands, delivering the critical results they need. And until this fight is over, we. Will. Never. Quit. Because they never quit. Welcome back 33 minutes left of the session we are lure lower by half a percent. Data showed 3. 2 Million People filed for Unemployment Benefits last week bringing the total filing during the pandemic to 38 million. Rising tensions between the u. S. And china as President Trump lashes out at the, quote, incompetence of china and promises a strong response to the interference in hong kong. Retail names are surging from tjx to l brands to bjs as they report sales better than worst case fears states across america are beginning the path to reopening their economies. Georgia was one of the very first to reopen back on april 24th since then coronavirus cases have increased 82 , but week over week new cases in georgia have actually fallen by 7 testing has also increased in the state by nearly 300 with about 10 of those tests now coming back positive joining us now in an exclusive interview is atlanta fed president Raphael Bostic welcome back nice to see you. Hi, sara, it is good to see you as well. We just reviewed some of the Health Statistics in georgia what can you tell us about how the state has come back since the state reopened i think the punch line is it is very much a mixed bag we have been talking to a lot of businesses and i have had lots of conversations with families across the district. Some places and some people are feeling very prepared to jump back into the economy and get back to where they were precrisis, but a lot of businesses where theyre not seeing the same kind of foot traffic they were before i have talked to a lot of families, many of them staff at the Federal Reserve, who still have large concerns about whether it is safe to go out as long as they have those concerns, i think we are going to see a muted recovery. Whats your biggest fear for the economy at the moment . Is it that continued, steady reopening goes badly or is it that theres a second wave i guess what im asking is if there isnt a second wave for the virus, will we see a rebound perhaps more encouraging than initial worst fears . I have two concerns to be first. The first is short term and realtime, and it is about whether the job losses being reported are temporary job losses or permanent job losses im hopeful the relief thats come out will make more temporary than permanent and thats what a lot of workers expect in terms of how the Public Health and this virus progresses, i am concerned about flareups that happen periodically and what that will do to the psyche of the American Consumer here in georgia there was a report just two days ago that a rural county about an hour and a half from here had a big outbreak of the virus, and it is hitting that community very hard i have a feeling that the people who live in that community and near there are going to be far less eager to reengage in the economy. If that happens repeatedly, then i think the recovery is going to struggle a bit. So it sounds like you are a little more cautious than those who are expecting, you know, a swift rebound or at least a continued progress toward positive growth starting in the Third Quarter . Well, you know, i am a central banker so being cautious is natural to my person. But i will say that theres just so much uncertainty out there that it is hard to be definitively confident about any of the particular outcomes so im trying to stay measured and really focus on what kind of information im hearing in realtime. You know, so much of the data thats coming out is backward looking and we really need to get realtime information and find creative and rigorous ways to bring it together so we can tell that aggregate story. A lot of people would suggest today that the negative rates didnt really have the desired effect in europe or in japan as initially hoped. If they were embraced in the u. S. , if they had to be for whatever reason, do you think they would be more effective because of the more developed market, because of perhaps a better functioning Banking System well, you know, thats a very notional question. I have to say ive been very public im not a big fan of negative rates. I feel like we have a lot of tools that have been demonstrated to work, and i would rather us focus on getting those deployed and placed in appropriate time and let them work themselves out. So the whole notion of negative rates, i havent been thinking about that too much in terms of what that would mean for how the economy plays out. So what are you thinking about as far as what else the fed could do because we are hearing that caution not just from you but your fellow fed central bankers, and this idea that the fed could do more. Yes, i think there are a couple of things first, you know, we have shown through our facilities that theres an ability that we have to get capital out to families, to households, to local governments, to nonprofits that are in distress and need that support. We are going to remain open to doing that wherever we can but a second thing thats really important i think is the outreach that were doing to businesses, to families, to find out when where relief has gotten through, understand how thats flowing through and helping businesses and families, but also where it is not you know, weve done a number of surveys, and i talk to businesses all the time where theyre saying, well, i havent really see the relief get to me and my customers, and we are going to make sure that that word gets up to policymakers so they find ways to get relief to everyone who might be able to use it on that note, do you regret some of the highlevel political and media criticism of Certain Companies that took ppp loans . Has it meant now that weve swung in the opposite direction where perhaps some companies arent taking loans from ppp or other sources because they fear a media or political backlash . I mean we went from running out of the initial charge unbelievably quickly to really not seeing the second fully drawn down. Well, you know, whenever we do rollouts like this theres a balance that you have to strike between doing something really fast or you are going to have to do recess periodically or taking your time getting everything exactly right and then rolling out so you dont have those reverses in this instance i think it was much more important to be fast and quick with the response, so i dont have any regrets about this and the sorting out i think thats a natural thing i do think that the more important aspect here is to let people and businesses know that there is still relief money available. Theres still relief thats getting out into the system whether it be municipal Lending Facility or some of the Economic Impact payments. But make sure you get whatever relief is available to you so that we can bridge this crisis and get to the other side with our fundamentals as intact as possible. So are you urging congress to do more . Do you think the next stimulus move will come from washington or from the Federal Reserve . Well, i dont know the answer to that question what i would say is i feel like it is my responsibility when i see theres weakness in areas where fiscal policy can make a difference to let policymakers know that. Then it is for them to figure out exactly what theyre comfortable with i do think it is really important that the congress and all of us be open to the possibility that more might be needed and if we come to that decision to do whatever we can, but i dont want us to not do enough and then have regrets sixmonth from now that if we had just done a little more we might have been able to save a lot of really important businesses and help a lot of families avoid hardship so my predisposition, i think you have seen it in how the fed is operated, is to do more, to be active, to be bold, to be decisive and to really swamp this to make sure we get as strong a recovery as possible. The head of the imf, the latest highprofile person to suggest banks shouldnt be paying dividends at this stage where do you stand on that so my view is that banks should be preserving as much capital as they possibly can and using that capital to in the direction of providing support so for me i think that banks need to think very deeply about the extent to which doing dividends or paying out dividends is going to be helpful. I would hope that many of them decide that it is not exactly the best thing at this time. I think their shareholders will understand that. Were in a crisis situation. Weve been very active as a Federal Reserve to encourage banks to get out in front of this issue, work with their customers as much as possible, deploy as much capital lending as possible, and i think that this dividend issue is one way that they can do more of that. Finally, you know, the Federal Reserve and the Corporate Bond market, how comfortable are you with the fed buying Investment Grade and highyield bonds do you think this is more about signaling or are you going to become a major player like other Central Banks in this market yes, i dont anticipate were going to be a major player over a long period of time. Look, this is an emergency situation and we have to do whatever it takes to make sure that were providing relief across the board what we saw in corporate markets, in Corporate Bond markets was there was a breakdown in businesses ability to get capital, and the share has been very clear on this and i totally agree with this point, which is our job is to make sure these markets continue to function, and were going to do all we can to see that that occurs. Raphael bostic, thanks so much for joining us. It has been a pleasure, wilfred. I appreciate it. Thank you still ahead here on closing bell, the technology that dr. 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As a reminder you can watch or listen to us live on the go on the cnbc app we will be right back. We are down. 6 on the s p 500 hey lily from at t here. Im back and while most stores are open, im working from home and here to help. Heres a tip get halfoff the amazing iphone 11 on at t, americas Fastest Network for iphones. Second tip you can put googly eyes on your stuff to keep yourself company. Uh for example, thats heraldo. Hes my best friend. Oh, sorry nancy, i forgot you were there. Get the amazing iphone 11 for halfoff on at t, americas Fastest Network for iphones. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. 17 minutes left in the trading day. We are now in the closing bell market zone. Commercial free coverage of all of theaction going into close. Cnbc market commentator mark santoli here to break down the crucial moments of the day as always the dow down about 82 points, kicking off with the Broader Market major averages are all trading just a little lower today, down there you see the dow. It is down a third of 1 industrials are a standout raytheon and boeing higher in the dow but thats about it. Mike santoli, all of the other sectors are red, weighed down by technology and energy which had been on top in recent days what does the action tell you today . Yeah, i mean still as you mentioned cyclicals like industrials and value stocks are still working okay today it seems like an antimomentum day. In other words some of the laggard groups, retailers, travelrelated, a lot of the heavily shorted stocks are leading the s p 500 right now. But on top we do have that backing off of the big Growth Stocks in the nasdaq, and thats you know, we talked about it on various days here. Sometimes it is a rotation where it comes from the strong and goes into the weaker groups, and sometimes it is kind of inclusive like yesterday when everything was pretty much strong it is pretty benign action i would say in general just the s p broadly kind of hesitating right around these sort of widelywatched levels around 3,000. Stephanie link able to join us now as well, getting final trades on before entering the market zone with the rest of us. Stephanie, we are down a bit today obviously but a strong week, 3 or so higher on the s p still. Still a legitimate rally in your eyes well, i do. It is harder to buy today than it was to buy in march and in april because we are up so much, but i do think you still have the liquidity situation thats happening. We talked about m2 as 14. 5 yeartodate thats huge in terms of liquidity. We have talked about the reopening and we have 95 of the states by the end of this month that will open, and so you will start to see progress in terms of the Economic Data and then also you are getting solid data points on the vaccines and the testing i think the nuance is right though mike touched on it you are seeing cyclical outperform in the last couple of weeks actually, and i think a lot of that is because we are reopening, we are seeing better data points. We got the nihb data that showed yochlt in may. We had the market pmi better than expected. We had the phillie fed better than expected. The numbers are still horrific but better than april. I think that april and may will be the trough in terms of what we see on the economic front and thats encouraging. Still another 2. 4 Million People though filing for unemployment claims. I mean, mike, on a day where you had an escalation in the rhetoric between the u. S. And china, certainly on the president s twitter feed and, you know, continued stories and anecdotes like we heard from president bostic of the atlanta fed, which was kind of patchy, muted reopening economically for that state i mean are you surprised on a day like today were not down even further and this is an opportunity . The headlines are there if the market wants to pull back. We had a 3 rally already for the week. Sure. I mean it wouldnt have been surprising to see that yesterday we talked about how in the very short term some of the tactical indicators like the per call ratios were looking a little overheated. Everyone is talking about that yeah, it would be logical. But i think this move about reopening has been all about kind of the incremental direction of progress being toward easing of restrictions and it is going to let off some of the pressure in some of the groups nobody is claiming that it has already gotten traction. Nobody is claiming it is visible in the numbers, so it has been a little bit of a leap toward this assumption that it is going to get better who knows . Tomorrow we could easily back off from the same exact mix of news i dont know think you can have a High Conviction about where we go from the next couple of percent from here, but ive been saying all week and even before that that the idea that were reopening and theres going to be perhaps a smoother path along that front is not disprovable in this short term, no matter what the numbers today say. So that leaves clearance for, you know, whatever the market decides to try to race toward in terms of a likely scenario. The state of the Retail Sector becoming a little clearer today as the number of Major Companies released results Courtney Reagan here with a break down of all of those hey, court. Hi, wilf. That divergence between essential and nonessential retailers becoming clearer with all of the numbers we got. Best buy was considered an essential retailer in most areas, but the ceo closed the stores she launched curb side for six weeks during the quarter she told me, quote, you think you will make a lot of certain decisions as a ceo, but life and death decisions were not one of those, especially in retail. She stands by her decision to keep the Stores Closed best buy retained 81 of the sales with curb side option. U. S. Comps fell 5. 7 online sales up 155 , and she said sales did improve as the stimulus checks arrived. Bjs wholesale is also essential. Its profits soared past expectations, comparable sales there up 27 estimates were for those to grow 6 margin is better than expected there too. Macys put on some preliminary First Quarter results, but as you can understand sharply declining sales there with Stores Closed. Sales could be down as much as 45 . Ceo jeff gannet said the reopened stores have seen better than expected sales trends, but still just about half the level of normal. Tjx, those revenues dropping 53 in the quarter, but the offprice retailer says theyre in the reopen stores so far it is seeing, quote, very strong sales. Thats a company that really has very little ecommerce presence, and what it does have it shut down during the pandemic back over to you. Courtney, if you had to pick out one factor thats been the key differentiator to good or bad results during covid, what would you suggest it is . I mean it is pretty clear and pretty obvious it has got to be essential versus nonessential, right . If you sell items that customers had to have to be able to live in this environment, whether thats a monitor to be able to work from home that you could buy at best buy or target or it is food to stock your pantry, you were a winner. If you sold something discretionary, there was little need for what you were offering during the quarter. Thanks very much for that. But if sorry, sara. I was going to point out judging by the share reaction it was the opposite because a lot was factored in. Mike, maybe we will turn to you. You know a company like macys that had to be closed, you know, talking about the future. The hypermarkets that got more than their share during the maximum shutdown period, you saw a little bit of backing off. There were full valuations you look at tjx or burlington where people have a longerterm belief in the concepts themselves, the franchises are there. It is not about some of the mall retailers where it is a matter of survival or not yeah, i do think it makes sense they have a little bit of catchup to do, even though by the way those stocks dont look terribly cheap and theyre not all that far from their highs, i kind of get why money is moving in that direction. Stephanie, to saras point we do a bit of closing of the gap in terms of the share price of winners and losers so far yeartodate whether it is in retail or broadly, sort of amazon verses banks type of question. Yes, i mean if you look at the retailers, those company that did well are the companies that also have been heavily investing over the last several years. Look at home depot, how much money they plowed into their business same thing with lowes, same thing with target, same thing with walmart and tj as well. Unfortunately tj had to close, right. So i think that the tj quarter was dismal but the guidance and the commentary was very positive and encouraging. I mean theyre seeing positive sales in the stores theyve reopened where the department stores, those that have already reopened, are still down 40 to 50 . There are definitely winners and losers and we have called out the winners for a while. Starbucks also seeing an improvement in samestore sales as 85 of companyowned stores are now open with the rest expected back online by midjune indica kate rogers here with more sounds encouraging that. Thats right, the ceo offering an update to partners and customers saying that customers are adapting to things in the new normal like modified store hours and different store operations over the last Week Starbucks has regained 60 to 65 of its prioryear comps in the United States china is seeing similar improvements reaching 80 of prioryear sales as the situation there improves to continue to accelerate business in this environment, johnson added the company is fast tracking broader store Information Set to take place over the next three years to a time frame of 12 to 18 months with more onthego options in things like drivethroughs to continue to cater to the new way customers likely will want to interact with businesses moving forward. Back to you. Kate, thank you in the meantime kate rogers sorry go ahead. Stephanie, where do you stand on starbucks it is one of the names i bought in march because i think the company has done an amazing job in just kind of turning themselves around and handling this crisis, and theyve done a really good job in china i have been watching china because theyre kind of a couple of months ahead of us in terms of the recovery. So actually the numbers, theyre 80 back to where their samestore sales were in china and were only 60 back here in the United States, right so i kind of view that as very encouraging. I think the ceo has done a remarkable job, and people want the product. So i think that it is still down 10 on the year. I still think it is very attractive. Can you extrapolate, stephanie, though starbucks to other Retail Locations or brands or other restaurants or is starbucks unique because it has such a stronghold in china with that playbook . No, i mean i think that they have done a very good job. Theyve got the dominant market share, but i do think youre going to see other players do fairly well. I mean, look, apple did fairly well in china, and i do think youre going to see mcdonalds start to see a little better nike should also do better again, it is it all goes back to may in my mind investing. If these companies had been investing over the last several years on Product Innovation and on technology, it really is very beneficial, especially during a crisis time. Shares of norwegian cruise lines and Royal Caribbean getting a boost. Seema mody has more on that for us. Hello, wilfred. They may be fighting for survival but the focus is clear, get back to sea the summer before they burn through cash. They will need to return thousands of crew members home who are still stuck at sea who the ceo told me is a complicated task. We have already managed to get a large percentage home. We have taken the extra step of coordinating to bring a lot of crew members from all over the fleet to assemble them on individual ships, and then we are using those ships to transport them home. It is, frankly, a difficult thing to do. It is very complicated it is also very expensive. Despite those challenges, Credit Suisse sees opportunity, initiating coverage of the cruise lines giving Royal Caribbean an out perform rating. The other thing that feign said was that the ships when they resume will operate at a lower occupancy to allow for social distancing on board, but then the question is what percentage and can you still cover the cost of operating the ship. A lot of questions still to be answered. Seema, thanks for that one. As we stand, stephanie, carnival, for example, down 70 or so despite a pretty yeartodate that is despite a healthy bounce itself off the bottom what is your take in can you buy these . I just cant. I really cant i cant do cruises and i cant do airlines because theyre very trading oriented as they are, right . I look at these valuations at six and seven times but nobody understands or has any clue in terms of the earnings and what they can do and when theyre going to recover i understand that people are eventually going to go back to cruising, if you will, but i think i feel more comfortable with people going back to restaurants and people going back to bars and Even Airlines if they take out the middle row. I think that that is those names are better positioned and i can model a little bit better in terms of what their normalized earnings are going to be, those sectors i prefer versus the cruises. How is the cruises versus Airline Trade shaping up, mike santoli . A group that was just as vulnerable to the crisis but also got government relief. It is somewhat similar i have to say i mean theyre basically all trading right now on the premise that theyll have enough liquidity to get through, lets say, through the end of the year so they can cover their cash burn for several more months at minimum, and then the bet is because they still will have positive equity value that they will be able to get back toward normal thereafter. So it has been similar now, within airlines i think theres a lot more differentiation. You have southwest, for example, that has always had a better Balance Sheet, more domestic focus and theoretically pretty well equipped to get through this better than some others but it is a similar bet that in fact it is not all that long were sitting here in shutdown mode for these guys. Yeah, having a good day today, the airlines. Mike, what else are you seeing in the market internals under three minutes left of trade . Very mixed but tilted toward the positive below the surface the New York Stock Exchange up versus down volume, positive skew there, just slightly. So that tells you the average stock is sort of outperforming the overall market as a matter of fact, if you take a look, the equal weighted s p this week against the market cap weighted version, handily outperforming. Everyone was kind of complaining it is too narrow a market, the leaders are telling a different story than the average stock, and thats sort of reversed, at least partially so far this week the volatility index remains very sticky, just below the 30 level. Obviously were going into a threeday weekend. We should see this bleed away if the market doesnt do anything dramatic tomorrow, but it is still telling you that it is a very slow march toward getting past the aftershocks or the panic from march stephanie, just quickly recap as we head into the close what youve been doing. Have you been buying or are you sort of waiting now that the market has rallied so much well, you know, i was really aggressive in march and april and i i mean you could buy so many Quality Companies truly at a discount and thats what i was doing. I was looking at Balance Sheets, im looking at yields and buying that way right now im not doing that much i am picking away a little bit at the cyclical names, i have been adding to wells fargo as we talked about i have been nibbling at tjx, that has been a new position for me, but on the whole i am just trying to stay as disciplined as possible. Weve got just over a minute left of the session. The s p 500 is down about threequarters of a percent. The dow is down about 88 points or a third of 1 the low for the session was down 200 as you can see for the interday chart we are off the highs as well. We had greens on the start but it only lasted about 15 minutes or so. The nasdaq is down a full percent. The russell holding on to a fractional gain. At the bottom of the pile you have energy, technology and Consumer Staples, so slightly odd mix to see all three of those paired together at the Bottom Oil Prices are higher today by 1. 4 , albeit Energy Sector as i said is suffering. Oil, of course, has enjoyed a strong rebound of late gold interestingly soft today, down 1. 6 , a bit of profit taking there the dollar higher a little bit, 0. 3 or so as the bell goes the s p 500 higher, by threequarters of 1 , the dow down by a third of one percent and the nasdaq down shy of 1 . Lost a few points there into the close. Welcome back, everyone if you are just joining us im sara eisen here with wilfred frost and mike santoli look at how we finished up the day on wall street the do you lost just about 100 points into the close, down about. 4 of 1 , a setback in a strong week for stocks s p 500 down a little more than threequarters of 1 in the close, which still puts it up this week about 3 every sector did decline today exempt for industrials which remained higher. Energy and technology the biggest losers followed by Consumer Staples the nasdaq also lower as technology lags today. It has been the outperformer though it is still about five a little more than 5 off record highs, down 1 today the russell 2000 was the standout it was positive all day long and it closed positive, just barely into the close it has been higher but still lower by about 19 , 20 for the year, the big loser. It has made a comeback five sessions of the last six have been higher for small caps. Coming up this hour we will speak to the ceo of quidel, the company granted first fda approval for its covid19 antigen test the technology that dr. Scott gottlieb called a game changer that interview is straight ahead. Joining us to talk about the market, cnbc contributor stephanie link first, mike, how did it look to you overall . It didnt seem to be tied to anything in particular if you look at really the big leaders like the microsoft and the apples that just kind of got some skimmed off the top after the recent run, so that definitely weighed on the overall indexes, a little bit of reallocation toward the smaller stocks and toward some of the really kind of beatup names, kind of geared to reopening. So i dont necessarily see it that much of a headline move it is a digestiontype activity with the s p at these levels in the top of the range i will say though treasury yields sticky on the low side. You know, tenyear down around twothirds of 1 it hasnt been able to hold above. 7 i dont think theres a magic level it has to be at or get to, but equity steamed eemed to pret when you have a little lift. Here is what Raphael Bostic had to say about the economic outlook. I think the punch line is it is very much a mixed bag we have been talking to a lot of businesses and i have had lots of conversations with families across the district, and some places and some people are feeling like theyre very prepared to jump back into the economy and get back to where they were precrisis, but there are a lot of businesses where theyre not seeing the same kind of foot traffic they were before i have talked to a lot of families, many staff at the Federal Reserve, who still have large concerns about whether it is safe to go out. As long as they have those concerns i think we are going to see a muted recovery. Mike, weve been discussing for the last couple of weeks or so why is it that we hear from fed chair powell and get a slightly more down beat view on the economy than perhaps other economists working at investment banks, and there was Something Interesting bostic said that in my nature as a member of a central bank that might explain quite a lot it is not so much they have a different set of data perhaps than everyone else, it is just kind of a safer outlook for them to be giving at this stage. They are fully in Risk Management mode. When theres a mania in the market and the economy seems to be overheating, Risk Management means trying to restrain it. Right now, i mean looking at how all of the data just completely fell off a cliff, their Risk Management mode means assume things are going to be tough for a while. They think it is a key point it is not as if the fed has insight into what the future is going to be, but when theyre reiterating the point there are risks, we might get a second wave, we cant be sure we will have a recovery, it has a signaling effect to investors that says theyre going to air air err on the side of accommodation and why the market is not taking it negatively. In other words it is bullish that the central bankers are voe scared right now or it is comforting or a back stop psyche loologically. Stephanie, i was going to ask you, he characterized this as a muted recovery is that what is reflected in the market well, theres a lot of question marks on in the market right now. I think we all have to keep watching these reopenings. As i mentioned earlier, we are going to get a lot of reopenings by the states by the end of this month. So were going to be all of us are going to be just focused on what that curve is doing and what kind of progress were making on either side, up or down so i think the market probably is in a trading range right now as a result because we had had such a nice run off the lows, but if we are successful in this reopening i think we will gradually start to see better data i am really very encouraged by all of the comments from the retailers about the consumer and how they did come back once they could reopen or how they were very bold on digital and on ecommerce and that kind of thing. Thats very encouraging because thats 75 of our economy. We have to get confidence back into the system, and i know we will need a vaccine, but in the meantime we are taking baby steps here. Mike, i just want to come back to a broad theme about the kind of gauge out there of bullishness versus bearishness when you have the vix below 30, slightly up today, but gold down this week quite significantly. Are people actually bullish to a level we should be concerned about . I think it is actually more of nuance picture because, yes, you are seeing some indicators that people have gotten a little aggressive like i said the options trading numbers definitely show some complacency in there, and you see some surveys of professionals or the activity of some professional traders does seem as if it is getting a little on the aggressive side. But in terms of longer term investors and cash positions among kind of Traditional Fund management, things like that, it seems a little more neutral. I think it is a matter of a little bit of kind of the eye of the beholder but also what time frame you are talking about, whether it is kind of a shortterm headwind until we get something to come along to kind of tamp down some of the aggressiveness on the trading side or, you know, are other folks going to come around and start to get excited about the market, too . I think it is a little bit of a mix. I dont think sentiment is really a tremendous asset to the bullish case at the moment in other words you cant come in and say everyone is bearish right now, therefore you have to buy this market no matter what, with both hands. Though you have had some very highplo file Hedge Fund Managers speaking out saying they were. For sure. We have earnings. Josh lip ton with the numbers. Josh. Well, guys, hpe is reporting 0. 22 versus expectations of 0. 29, and revenue comes in at 6. 01 billion thats also weaker than expected the street was closer to 6. 3 billion. If you look by segments here, compute, the largest segment, down 19 to 2. 6 billion, basically in line. The company is not providing guidance at this time. I had a chance to catch up with the ceo about the print. I want to bring you guys those comments one, hpes board did authorize what it is calling here a cost optimization and prioritization plan it is a threeyear plan with an estimated growth savings of at least 1 billion the ceo as part of this plan and executive Vice President ials will take a 25 base salary cut through 2020 senior vps will take a 20 cut he told cn part of the plan is to prioritize resources from here in areas of growth. For example, he means growing his intelligent edge business. So networking gear, he thinks that will benefit from the work from home trend. Are there layoffs coming as part of this plan . He told us that it will have an effect on employees that could take different forms, the number of employees, the type of employees, where employees are located but declined to provide more specifics or hard numbers right now. Then we asked about demand and supply, what does enterprise demand look like right now obviously his Company Sells a lot of products to a lot of different customers. He said demand has been impact but enterprise has been, in his words, generally steady. He mentioned he exited the quarter with two times normal backlog. He mentioned the impact tosmal and mid size businesses. Supply chain a different story remember hpe ships three servers a minute it is a big, complex supply chain. That chain takes time to recover, he told us, though he said the supply chain is getting back to where it was guys, back to you. Josh lipton thank you. Stephanie link, how do you think about hpe shares down almost 6 given the comments on how covid19 pandemic is affecting the business josh just shared . Yes, im actually surprised it is down this much it was a really disappointing quarterer and not having guidance is challenging but we know their exposure in the smb market and we know about the supply chain issues and the stock was already down 34 i look at the Balance Sheet and it is okay theyve been 4. 7 billion in credit facilities, so i want to hear more about that on the call but i also want to hear about china and are their facilities back up and running. Im not involved in this name. I think there are many other places in technology that you can own that are actually winning in this environment. Steph, were waiting for some more earnings from the likes of nvidia you are involved in that what are you expecting there i like the stock. I dont like the valuation it always keeps me up at night at 76 times forward although amd is at 92 times forward, so it is cheaper on a relative basis but i think it is going to be a very good quarter i think you will see solid demand from data center and cloud. You will see very good results from gaming. I think the question is it is up 50 on the year, so the expectations are quite high. I want to hear about the melanox deal and how synergistic it is going to be. I think it is 8 to the bottom line but lets see what they say. Overall, mike, how are we tracking as far as where the market is expecting earnings in the absence of guidance, how stocks are valued right now . The market seems to be acting as if it is willing to look quite beyond 2020 all together i mean it is above 20 times forward earnings right now, so forward earnings includes last threequarters here plus the First Quarter of next year thats very expensive based on recent history but with rates this low on a theoretical level, the out years are more important to the value of the stock today than if rates were high. So i think on paper you could make your case that on a normalized earnings basis things are kind of neutral. But that, of course, presumes we are getting back to Something Like last years level of earnings, you know, within a year or two. Thats obviously the big question. Yeah, that is the question. Stephanie link, thank you. Good to see you. Good to see you stay safe, guys. Up next a real game changer. Thats what former fda commissioner Scott Gottlieb is calling wide els new antigen test we will speak to the ceo we are back in just 90 seconds im 53. But in my mind im still 35. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex. Plus vitamin d for immune support. Welcome back lets have a check on todays biggest Market Movers, and the story in the marketplace today, bob pisani has that for us hey, bob. You know, wilf, it was a little bit of a choppy day we call these consolidation days where the market is not sure where it is going. I want to show you the s p 500 because the notable event happened in the middle of the day. There were headlines out there about our relations with china, beijing threatens u. S. Counter measures if sanctions are imposed. President trump was blaming china for global coronavirus deaths there are sensitive things going on with china right now, and i think it is interfering in the markets a little bit here. If you take a look at the leadership group, retail is doing good tjx, despite the fact they had a notable earnings miss, some of the Sales Numbers were encouraging. Boeing had a fantastic week. Boeing is up 15 this week banks again outperformed this is what i talk about the broadening of the market, not in a big way but regions on the upside the inconsistent point is energy where they cant get a rally going at all mega cap wasnt a big factor in the market today facebook did hit a new high. Amazon hit a new high as well, but look there, you can see it ended actually right at the lows for the day. So maybe running out of a Little Energy there i think it is important to realize the trends still very much on the upside if you look at the market internals and what is going on, the breadth continues to improve. Volatility is declining, credit is expanding and the market multiple is expanding which is a source of discussion and controversy. Back to you guys. Thank you lululemon providing an update on store reopenings like many retailers saying it is in the process of returning week by week, market by market. As of today it says it has reopened 150 locations across north america, europe, asia, new zealand and australia and another 200 or so addition allocations are set to reopen over the next two weeks. They are also outlining some of the new instore Safety Measures stock trading up a bit after hours. A real game changer is what former fda commissioner scott good leeb gottlieb is calling te antitest, which isseen as the key to unlocking the economy and getting people back to work. Joining us is quidels ceo doug bryant thank you for joining us just explain why your test, the antigen test is give and what are some of the positives and negatives of it than what weve seen, say, with the pcr test for virus or Antibody Test to see if you have had it. Sure. What we manufacture a pcr test ourselves so i can tell you that that is the preferred methodology when one is concerned about sensitivity. What we have with this antigen test is a Different Technology that uses antibodies to detect proteins on the surface of the virus, and this is just a far quicker method so that if im testing my employees here, for example, i can identify those that are positive the same day and i can also then send those folks home i can quarantine those folks, and then we ill obviously want to find out who their contacts are, thats important so the speed and the ability to frequently test, and this methodology also can be managed actually in far greater quantities. So it is a lot quicker, but i think you just said it is a little less accurate how much less accurate is it potentially . The sensitivity once we get enough data is likely to be in the high 80s, which means that you are roughly going to miss one out of ten that you might ordinarily pick up if you were sending it away to a reference lab, waiting a couple of days in order to get the answer back so if i wanted to make sure i got all ten out of ten, lets say, you know, thats what i would do but theres far greater value in finding the nine out of the ten and understanding that i need to quarantine those people right now. So it sounds like nine out of ten, so false negatives is the problem there. What would you recommend if people were to start using these tests broadly and with that kind of false negative rate, what should they do if you get a negative how do you interpret that . Well, just as you do with my pcr product. If it is a negative and the physician strongly suspects something is up, that should be reflexed to another method any of these tests will have some level of both negatives here the technology is not designed to be 100 sensitive. It is highly specific if i tell you that youre positive, then you highly likely are positive but we have a methodology that has a far greater good when we can test more rapidly and with far greater frequency. So i would say that the false negative is an issue, but i wouldnt say it is a problem i would say that we test with an understanding that we need to test frequently in order to identify people as quickly as we can to say, send kids back to school or to test Health Care Providers or First Responders. In order to do that you have to have these tests that are available to be tested in more democra democ democratized locations and more frequently. And, doug, to that point, would it be that any Large Office Building has one of these on tests and you are tested every day when you come into work or not quite that level of frequency . Well, immediately what were doing is shifting customers who already have our instrument and those are in physician offices, urgent care centers, hospital labs, physician offices, some pharmacies have them as well eventually once we have more boxes that are available and weve gotten past the initial customers we are shipping, i could see how you would have methodologies for screening people in Office Buildings but for the moment were focused on shipping previous rferentialo those customers who can test Health Care Providers, First Responders including military. We understand theres an issue in meat packing right now, so thats in a category, food safety where we think we should prioritize that as well. After that were working on a couple of pilots here in town we are working on a pilot with the schools to see if we can figure out how we do that we have a pilot also with a private Equity Company that has a number of portfolio companies. Were going to see how we can help them do the testing for their employees. So it is early days. We just shipped last week a couple hundred thousand tests, this week we are shipping another 240,000. By a week or so we will be up to a million tests a week, and within a couple of weeks after that we will be up to 1. 5 million, and then 1. 8 million per week it is at that stage that i think we can start to address employee testing. Is this still a nasal swab . Is that how these tests are administered and does that it is a nasal swab. Does it make it complicated those are painful, arent they well, there are two swabs theres a nasal pharyngeal swab, the one that goes into your sinus cavity that most people if theyve had a swab taken that way, they certainly dont want the second swab the nasal waub swab on the othed just goes on the inside of your nasal passage and it is not painful at all so i insert the swab an inch or so in, twist and remove the swab it is very quick, it is very painless and then we take the sample in a very simple cartridge, we insert the liquid into the test cart ridge a cartridge and off you go. Doug bryant, thank you very much for joining us. We expect to see a lot of those tests out there. Thank you. We just got palo alto earnings dom shoo has been tracking that for us. We have shares currently up 6. 5 on roughly 170,000 shares of after market volume this after the cloud and Cybersecurity Company reported numbers on the earnings front that beat analysts estimates 1. 17 which beasts the analyst assessment of 0. 94. The revenue is coming in better than expected. 869 million and the analyst estimate was 839 million. What is sblesing interesting is Company Offered fiscal Fourth Quarter guidance stronger than some analysts expectations. They expect total billing growth over the quarter to be around 13 , 14 , and total revenues around 14 to 15 gloegt rowth s well the ceo said basically the company will benefit from some of the trends evolving out of the covid19 paentd with regand regard to working at home and theyre poised to take advantage of the trends. We will continue to watch this the Conference Call starts in eight minutes, but for now the shares up strongly back to you. Thank you i just got nvidia numbers. The expectation was 3 billion eps 180 per share and expectation was 169 slight beat there. Gross margin was 65. 1 , again fractionally ahead of expectation and operating expense a little elevated, probably for obvious reasons expectation was about 900 million, it came in about a billion. I havent got to the individual line items for the sub sector but a slight beat on each line for a stock up about 50 yeartodate coming into this and adding 1. 5 in after hours trade, sara. All right still ahead, wilfred, we will talk more about the numbers you just brought us. What they tell us potentially about where we are in the growth cycle. Later we will speak to the ceo of genetics testing firm an tess t ancestry. Com to better understand why genetics with the coronavirus affects some people more than others 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. 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 lets send it over to mike santoli for a look at how 2020s selloff compares to other previous bear markets. Mike. Yes, sara which brings up the point how were labelling this thing obviously i wouldnt argue with anybody that said we are in a bear market, but it was not a typical one. We sliced 35 off the value of the s p from an alltime high. It is more like a crash which could, of course, develop into a bear market. Buff but i wanted to see how long weve been under a 10 loss from the peak in the s p 500 and how that stretch compares to prior ones i asked ryan deatrich to try to put that together. Since 2013 as you can see right here, this is the longest stretch of 54 days we have been at least down 10 from the high right now, down to about 13 it is obviously about twice as long as we were down below that threshold in 2018 into 2019. However, if you dial back farther back to 1980, you can barely see this episode in terms of its duration under 10 loss on the righthand of that chart. What you actually see is the really deep, long bear markets that started in 2000, 2007 which were 1,500 days, and interesting this one at 53 days would come close to nothing that we would call a bear market i think it is instructive. Most people dont call what happened in 1987 a bear market even though we were down a lot more for longer at that point. It is a little bit interesting if we get back to alltime highs before very long, i do wonder how were going to characterize this episode here because it wasnt really the way what weve come to think of as the typical bear market has unfolded obviously you have to see if it deepens into that though. Mike, thanks for that still to coming individual ya reporting results moments ago saying it is seeing progress in gaming, data center and automotive units we will break down results with a top analyst after this short break. High protein. Low sugar. So good. High protein. Low sugar. Mmm, birthday cake. And try pure protein shakes, with 24 vitamins and minerals. Andsnhu lets you transfers, up to 90 credits [announcer] if youve tried college but never finished, toward your bachelors degree. [woman] it doesnt matter how old you are, you can do it. You can finish. [announcer] finish your degree at snhu. Edu. Nvidia reporting q1 earnings moments ago. Joining us to break down the numbers matt bryson from webb bush securities. Thanks for joining us. As we said a couple of blocks ago, stock up 50 or so yeartodate it was up after hours, it is now slipping a little bit. Clearly a decent little beat on both lines and the guidance also for q2 not bad what stands out for you . I think what stands out most to me is the data number it is a large sequential increase they clearly beat expectations there. I think when you think about Growth Drivers for nvidia, yeah, gaming is certainly nice but ai, given the large growth rates, the strong margins, that that business is perhaps the most important business for nvidia. So seeing them put up a nice beat there was really impressive. Does it tell us anything, matt, overall about the Economic Cycle or is this sort of uniquely specific to nvidias areas . So i think it certainly tells you that cloud spending is up, and thats something weve heard from a number of companies and weve seen, for instance, microsofts results, intels results. I think thats certainly a big part of it i think it tells you that ai as a whole is seeing more implementations, which i dont think is unexpected. Rather it is perhaps the pace thats a little bit unexpected in terms of the broad economy, no, i think that what wedbush was talking about certain sectors outperforming, whether it be the cloud or gaming, nvidia fits nicely in those segments i dont think them putting up good results should be completely unexpected or is completely a tale of the economy. It is rather a tale of strength in certain places. What are you listening out for on the call . Certainly they laid out interesting new places theyre able to or some interesting new applications theyre able to address on the data center side, if theyre able to give any tam expectations around those those new areas that theyre addressing, and then just guidance, how melanox getsd factored into that and where melanox is factored into the reporting segments moving forward. Matt bryson, thanks for joining us with your quick talk on nvidia. Getting some breaking news out of washington. President trump actually in michigan talking about more stimulus kayla toshy has the headlines. Kayla. Reporter sarah, the coordinated message from the administration from the last couple of weeks has been they will wait and see whether more stimulus is needed, and today at a ford plant in michigan the president said he believes it is needed he said that the administration has a specific plan that will be revealed to the American People at a later date. This week the treasury secretary and Republican Leadership have suggested that they stillneed few more weeks and that certain programs from previous stimulus programs still have hundreds of billions of dollars left in them so we will see exactly what is in that white house plan that the president alludes to, but notably appearing at that site in michigan he was not wearing a mask when he was asked specifically by press who were traveling with him about that fact he said that he had been wearing a mask and goggles at a private back area at the plant, but that he did not want the press to see him wearing that asked whether it would set a bad example for the American People, the president said no. Wilf and sara, back to you. All right kayla, thank you up next, lady gaga, President Trump and you all have something in common. Your cybersecurity is being tested and coronavirus is making it a lot worse what it will all cost coming up. Tonight at 7 00 p. M. , floridas theme parks want to reopen meet the man who has a say plus, kansas citys move to help restaurants stay afloat by going outdoors, and expert advice to keep it from becoming last call for the nations bars. Thats all tonight at 7 00 p. M. With scott wapner on our special report. Closing bell will be right back welcome back time now for a coronavirus update with sue herera hi again, sue. Hello again, sara. Hello, everyone. Here is what we know at this hour President Trump says the cdc will give details on reopening churches today or tomorrow multiple reports say the guidelines have been delayed over disagreements between the white house and the cdc. Earlier today a Senior Administration official told nbc news the recommendations were expected in the next week to ten days the fda is telling 27 Antibody Test makers to halt sales until they receive approval this following questions about the accuracy of many tests currently on the market. Earlier this month the fda set tighter rules for Antibody Tests. And new yorks Governor Andrew Cuomo says that states Public Schools should begin preparing to reopen in the fall even though it is still too early to decide whether inclass lessons can be done safely cuomo says the state plans to issue guidelines in june and approve a reopening framework in july you can go to cnbc. Com for more on all of the efforts to reopen the schools. Youre up to date, wilfred. Ill send it to you. Thanks so much. Up next, the hidden cost of mpy ing from home and wh coanies may never fix it after this break vo our communities need help like never before and wells fargo employees are assisting millions of customers across america through fee waivers and payment deferrals, helping people stay in their homes through mortgage Payment Relief efforts and donating 175 Million Dollars to help hundreds of local organizations provide food and other critical needs. When you need us, wells fargo is here to help. 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Celebrity lawyer alan grubman who represents big names like lady gaga, elton johns and lebron james has been the latest victim of a major cyberattack with hackers demanding millions of dollars for files that were stolen as more people are now working from home and putting Sensitive Information on to potentially less secure share drives, what can executives do to protect their company from hackers we have run the numbers and it could cost a lot of money. Eamon javers is here to break it down for us. Thats right, wilfred hackers are having a feel day dune to coronavirus is what experts have been telling me over the past week or so everybody went home, all of the companies had five days to get millions of american white collar workers on a workfromhome basis and as a result theyre seeing these super old browsers being used never designed to carry this corporate security and now you have information from companies flowing over family home wifi routers. That will be a big problem if this lasts for any length of time for companies to fix over a period of time i asked mike covertino of rco, the Cybersecurity Firm to run the numbers and figure out what it would cost. Here is what it could cost per employee, somewhere between 247 and 1,755 per employee to get them up and running in terms of security and in getting all of that data thats running over the home wifi system into your corporate servers in a way thats safe from hackers this could be an enormous problem for Companies Going forward, and especially because working from home now we are getting all of the unfamiliar apps, we are using zoom, we are using things were not used to we are getting emails about all of that. Thats ripe territory for spear phishers people sending in links that you should look at but not really people are willing to click on the links more than they used to be because theyre getting so much stuff it is hard to sort what is real and what is not real when you are dealing with so much unfamiliar material. A field day for hackers. Thats a different example if you are clicking on a link you shouldnt be, you could bedoin that in the office as much as at home im interested in the way you mentioned a home wifi setup because what if a company has given everyone a work encrypted laptop for example with all of the protections it should have on it to use at home, but clearly that laptop is connecting through a home wifi. Is that stip ripe for hacking just because of the wifi network itself it is any encryption you are using it makes it better but because it is on the wifi it is an added level of vulnerability is what im told one of the things they flagged for me which i thought was interesting is the idea of your childrens video game systems, so the nintendo or the xbox is often using the same wifi that you are using. So hackers can get into the Gaming Systems and then from there get on to the network and from the network get into the corporate data the same concern about childrens social media. Im told that Cybersecurity Firms have seen hackers putting things out on social media aimed at kids, links that would allow them to get into the wifi and then into the routers and figure out where the corporate data is. So theres a lot of weaknesses to working from home im standing in my living room, guys, talking to you and this is all running over my home wifi, not to make myself a target for hackers. But, you know, we are doing all of this corporate work off our systems that were never designed for this one of the things i was told is that a lot of companies have actually taken their Corporate Security Team because there was a mad rush back in march to do this so quickly, the security teams were just trying to get laptops out the door, get people up and running, just they were designated to go work with the i. T. Teams, not working on security, just getting this up and running in the first place, all of the bandaids and mouse traps they had to set up to make it all work. All of that means that they werent as focused on security over the past couple of months. Eamon, i like how and a lot of the system is vulnerable. I like how you said it is your childrens play station i know it is you playing fifa late into the night. I do play the occasional fifa my son is better than me i never play him. Thanks, eamon up next, dna testing in the age of a pandemic. Ancestry. Com is leading a new study to explore how different people respond differently to the coronavirus. Were going to talk to the ceo of ancestry about how it could help lead to new ways to prevent and treat the virus 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. Welcome back a key question we still have about the coronavirus . Why it strikes some individuals with deadly symptoms but leaves many others unaffected Genealogy Company ancestry is working to uncover clues with a new study comparing the dna of people who have tested positive to discover genomic similarities joining us is the ceo, Margo Georgiadis what makes you believe that the answer is in ore genetics, what makes some people symptomatic and others not. This is a fantastic time, for us a contribution we can make at ancestry with the largest Genomic Network in the world with 16 million members, we can activate the network to gain a massive dataset that can enable researchers to identify and validate the kind of connections you are talking about. In a few weeks we have had half a million, 500,000 members already participating in the survey it is a live survey, so people come in and they participate whether they had symptoms or not. That can help us identify insights into covid19 and why some people have severe reactions and others do not. So you have all of that data already, but they have to opt in to be a part of this correct people sign up for our network and over 70 of our members sign up to participate in research studies. In each one of those one of those cases we reach out to them and we tell them what the research is about and they opt in to participate. So in this case with just a couple of contacts over half a Million People, everybody wants to help each other right now, and so people are activating as a community and everyones trying to collaborate. Were also working to share our research for free with any arc credited medical Research Organization working on the fight because this is a time when we all need to collaborate and share information so that we can make faster progress on this important disease. Margot, are there other diseases that youve studied where you found a link between genetics and the severity of the disease . At ancestry, this is the first geneticwide study that were pursuing were a billion dollar Subscription Company with 3. 5 million subscribers. Dna has been an important part of enabling tens of millions of people to get started more rapidly on the Family History journey and its just now with all of the things going on with covid that this interest in digitization of health care and how do we understand the more personalized preventative risks whether its covid and other things in our lives and were happy to be at the forefront of this new arena for healthcare, as well. When it comes to covid, some people clearly, as we all know have been more susceptible to the disease taking hold than others are the factors, though not linked more to your health, your diet, your age than necessarily genetics so there are definitely strong comorbidities with diabetes, Heart Disease and those are obviously very strong packers and there is a rising body of evidence and we have lloyd marner and our board theres been a lot of Research Done with important genetic links with the people who are otherwise healthy who have had Adverse Reactions and we can identify that and just imagine a world where if were in china or italy, we could have understood those genetic profiles that are most at risk and that would have helped us support our communities and mitigate the impact of this important disease very quickly and so we need to be part of taking the resources we have to make a difference for the advancement of science theres a tragic case in new jersey with the onset of this crisis where Seven Members of the same family tested positive. Four of the people in the same family died and three more of them had to be hospitalized. Are those the types of clues that youre looking into where youre making this sort of calculated fact that this is going to yield some results . So its definitely possible that we could discover what is causing some of those linkages as with any scientific journey, right, well find more ends than we find fountains, but at the ka scale that we are able to find information, many Research Done for a thousand people and thats a large sample and the fact that we have half a Million People in real time in the moment that this disease and people can go in, back in to the study and update if they have a second occurrence or if other things happen and so were going to have the largest data set thats really ever been captured that will enable us to study and more rapidly understand this and it is hard to know at this time exactly what were going to find and the Early Research indicates that we should be able to find important linkages margot, thanks for joining us. Thank you for having me up next your wall street look ahead, alibaba and the stock has been hurt with a new conflict from china well dig in after the break vo since our beginning, our business has been people. And their financial wellbeing. 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. You know, the chef here trained in france. Mmm, it shows so good. Oh hey, did you say you needed help with investing . Because i know someone whos really great. And you trust him . Totally. Yeah. We went to school together. Ill check him out on investor. Gov. So, whatll it be . Ill just have the burger. Before you invest, get the full report. Check out an investment professionals background for free on investor. Gov. Before you invest, investor. Gov. Lets take a look at how we finished up the day on wall street stocks fell today, but did finish off the worst levels of the session. The dow closed lower by 101 points and a loss of less than half a percent the s p 500 did lose. 8 and every sector finished lower except for drills and technology the loser. The nasdaq down 1 and the russell 2000 finished higher, about y but it has been an underer with former all year and the Stocks Holding up with a gain of just about 3 wilfred . Alibaba set to report results tomorrow deerd deidre bossa has that. Hi, d. Its expected to see a gradual recovery in the core ecommerce business and there is an overhang and those are the political tensions that had been weighing on the stock and other big chinese adrs alibaba fell 2 in todays session on the senate bill that could delist Chinese Companies from u. S. Exchanges and remember that alibaba is already dual listed, one here and one in hong kong last quarterly earnings, ceo daniel jeong said that alibaba was, quote, being tested and that was in the depths of the covid outbreak in china and investors will want to know what it looks like initially on the other side wilf all right, deidre bosa, thank you. Mike santoli, your final talk as we head into the friday as deidre referenced ramping up around securities and stocks, Companies Like alibaba with a massive, megacap company and thats different than a Luckin Coffee and im not sure that the u. S. Wants to let go of Companies Like that, but that might be whats happening. Its certainly different. Obviously as deidre said they did relist and from the day alibaba came public there were questions about how it treated various Financial Arrangements and how it reported results and it really hasnt held it back in terms of gaining the valuation that it has right now and i do think the tensions are a wild card in general and i think if the market got up to where it needed some kind of an excuse to say lets dial back on risk and that could serve as it, but right now the market is hesitating because its digesting this rally of 32 in eight weeks. Mike, the other thing is thats been crossing the wires i think it was implied in the market and President Trump saying about ten minutes ago that if we do have a second wave we wont shut down the economy again. I guess aside from the terrible second wave and thats encouraging for market participant, at least. Certainly encouraging i think its encouraging if theres not even a question if whether, in fact, we have to shut things down because infection rates get so bad, and i do think the market is going on the premise that for now it doesnt seem that if in the next few months well have to worry about that scenario, and its a huge question and i know thats a huge question of what the fed is saying and whether the companies will invest and hire people back because they wont know. Sara, as i said a couple of weeks ago i love the closing bell logo in your background and only beaten by mikes with the drawing of cnbc on it. Ive commissioned back from our resident artist here who lives here so, yeah was that your daughter . I knew that i like it a lot shes amazing. Hopefully were not infringing on trademarks. You dont need the expensive screen install like sara had a little chalk and a slate. We are out of time. Thanks for watching, everyone. Melissa lees got you next fast money starts right now and im melissa lee. Tonights trader lineup, guy adami, karen finerman, and tim seymour and steve grasso how you can ride on had reopening play and what center shar