Production creeping back to life Mother Nature forcing nasa and spacex to pull the plug on their launch you are watching Worldwide Exchange here on cnbc good morning welcome from wherever in the world you may be watching. I am Brian Sullivan. Thank you for spending your thursday with us here on cnbc. The stock market has been read hot. The dow has been up over 1,000 points in the last 48 hours. Making huge strides in gaining back much of what it lost and it could gain back more today dow futures are up another 140 points not the kind of market we saw in the last two days. It looks early but a little follow through again could happen today we know the dow has done well but did you know this. Small caps are reacting big time the small cap s p index is up 8 this week. And it is early. There are a greater number of stocks in that index up more than 20 this week than have fallen this week up more than 20 trading more than any amount this week. We have more of that at 5 30 we are going to show you, if can you guess it, you are smarter than we are because it is a name that no doubt will surprise you. Well get to more on that in a bit. We have that breaking news out of china short time ago, lawmakers in beijing endorsing that controversial new law that has sparked protest there and is growing condemnation among Global Leaders well get to more on what the Chinese Parliament just passed thank you, brian. It is not such a surprise given what they have described as rubber stamped 2,878 who voted in favor and what one, brave soul who voted against. The vote means that beijing is now moving one step closer to having tighter controls over the city what happened is that the top officials will work out the laws as early as june with the goal of prohibiting action. It will allow for agencies to be set up in the city there was a tweak on tuesday in the proposal which expanded the cope of what could be defined as actions that endanger National Security from beijings perspective, this has been a long time coming. A lot of people have been saying the government has been losing patience from hong kongs perspective, the protesters and people there are quite concerned about what this means for their Civil Liberties and the rule of the city eunice, what are the next steps . What is the time line . In terms of the next steps, what happens is that the top lawmakers here in china will be working out the details of the law. That could come as early as this summer in terms of what happens next more broadly, more people are watching to see what the u. S. Is going to do. Secretary of state mike pompeo said that hong kong is no longer autonomous President Trump earlier said the u. S. Is going to do something on the hong kong issue this week. There has been a lot of speculation and i would say fear on what this means whether the u. S. Will pull its trading status, the special preferal relationship it has with hong kong and what other sanctions could happen in terms of visas and freezes on transactions. A lot of people are saying in the manufacture sector, which is big in hong kong they are worried about higher tariffs they have a lot of manufacturing that use hong kong as export hub. This is american and european companies. People are worried about what this means for the way they do business supply chains there maybe restarting again thank you. Back in the united states, a rather grim milestone amid the coronavirus outbreak there are some signs of open lets get to top news stories with frank the death toll in the u. S. Has surpassed the 100,000 mark significantly more than any other country in the world the white house advisor dr. Fauci is saying the second out break could happen glachl skoe saying it may produce vaccine booster next year boeing resumes 737 max production after halting production in january. After boeing revealed it will layoff 7,000 employees this week arizona is suing google over user data practices. Stating it has taken deceptive steps. It argues the company set up android mobil software in a way that deceived owners about the protections of their personal data brian, back over to you. Frank, well see you in a few minutes. Thank you. Lets get back to the markets that have been read hot. The dow closing back above that 25,000 mark for the First Time Since back to march 6. If youve been keeping track, the dow has gained back just over 2 3 what it lost a midst the vie rarus break down midmar. Getting to dan wantrobski, thank you for joining us here on cnbc. What do you make of this rapid rebounding owe in equities has the market already priced in the rebounding expectations or do you think there might be more for equities caller good morning. I think you hit the nail on the head, you talked about small caps really coming back to life. That really happened this week one of the things we were concerned with prior to this trading was the divergence in the market you had in the lows really distinct leadership. It came from the large cap in technology, health care and consumer what happened in the coming weeks was really concentrated in those areas. A couple of days ago, we saw breath and participation improve significantly. That pushes up the small cap 600 and you look at the russell 2000 and the nyse composite close to the 1,900 stock. This calls for the retracement this sets us up well for the short run. In terms of not necessarily new leadership but new groups participating. We are seeing industrials, transports we are seeing banks rally upwards of 15 , 14 . Breath and participation is starting to increase and pushes us up over the short run in the coming months, we are of the opinion we could see larger pull backs and you could see returns of volatility. Our stance is that the lows of the Market Correction cycle are in in the direction of march 23 on 2,200 s p, you could see bigger directions so far we are looking at the pull back in the months ahead. We would be buyers okay. But pull backs will come here is the thing. Even if you are the most optimistic we have heard with vshape recovery jp morgan came out with the best case recovery. Nobody has predicted it would go back to 3 and 4 unemployment. The market seems to be reacting like we are going back to a normal nobody is talking about that even a year out. What do you see for the long run . There is a lot of economic pain even if we start to reopen in the next months . Thats why we are factoring in any correction around 8 to 10 . What is going on here is a disconnect between the market and reality. Markets trade on sentiment and perception of future events. Right now, specifically, massive amounts of liquidity have run in we know Fiscal Relief measures have been enacted. There is more to come. As you say, the economy continues to flow. That status will get worse theyve created a playbook off the 08, 09 crash i believe this will continue to stabilize the market as this comes in worse our opinion is that the bottom has been formed. The lows are in. Beyond that, as the economy slowly comes back on line. I agree it will take years we think the amount of liquidity is too much relative to the demographic profile in the u. S the secular bull market resumes in the next couple of years. There is a big picture under the story. Liquidity is a driving force dan, a longterm Millennial Market that says be wear of 8 to 10 corrections. Best to you and yours. We are just Getting Started here when we come back, more on the china approval of that controversial law that could quash free speech and what it might mean for escalating tensions and Mark Zuckerberg speaking about the road ahead for facebook and what a post pandemic work place might look like returning to normal. We have new evidence of all of our collective hunger to go out to eat dow futures are up we areac bk with more on Worldwide Exchange after this. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. 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 and good morning. Lets get back to that breaking news out of china. China parliament approving the passing of that controversial proposal to impose what they call a National Security law on hong kong. Hours after secretary of state mike pompeo declaring hong kong no longer deserves special status posing a blow as a potential financial hub. Going on now to hong kong to elaine, a freelance journalist for the new york times. How are the protests going and what are you hearing about the prospect of future protests especially as this new security law as beijing is calling it has now been passed . Thank you for having me, brian. This has wide implications for what free speech and protests would look like. Yesterday, we saw thousands pour in and heavy Police Presence preventing people from gathering. They are preventing crowds from forming. That is much more assertive than before coming up, a lot of protesters have said they are actually at a loss to next steps there are real stock waves across the city. Coming up, we have the comem operation of the 1989 ten he men square crack down. Every year, hong kong has a candle light schedule. The only place where the victims of the massacre could be mourned locally but because of the measures imposed that only eight people could gather at a time which is extended until june 4 it could be the very first time where this landmark, iconic protest cannot be held although organizers have called for everyone across the city to light up their candles a lot of protesters are still uncertain about their plans but it is very certain well see the scale smaller than before. It seems some of the language appears vague in terms of what might fall under this law, correct . Last year, we saw people sitting in the airport peace fully, silently with signs in parks do we know what will be banned under this new law brian, you are exactly right. The language is so vague that there are a lot of fears about where the line could be drawn . The june 4 vigil i was mentioning, one of the classic slogans is an one Party Dictatorship that would be considered breaching National Security because it touches on the questions about the party. And protests at the airport, for example. It is a sensitive hub. How they will see actions like that its unclear we saw not just acts but the more vaguely termed activities that could also be seen as something that could break the law we are still waiting for details. People are worried they wont be shouting slogans they were shouting before. A lot going into effect from hong kong, thank you. Big story there. Still on deck, oil prices are rebounded, thousands of jobs are being lost in north dakota and texas. How large could that be in houston. Well talk about the face and the pace of the market ahead stick around announcer todays big number, 165 thats the increase in average video game playing while p americans are under roviconarus stayathome orders compared to the longterm average. Yes. The first word to any adventure. But when allergies and congestion strike, take allegrad. A nondrowsy antihistamine plus a powerful decongestant. So you can always say yes to putting your true colors on display. Say yes to allegrad. Just for healthcare workers fighting covid19. Learn more at massmutual. Com healthbridge 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, jimmys gotten used to his whole yup, hes gone noseblind. Odors. He thinks it smells fine, but his mom smells this. Luckily for all your hardtowash fabrics. Theres febreze fabric refresher. Febreze doesnt just mask, it eliminates odors youve. Gone noseblind to. And try Febreze Unstopables for fabric. With up to twice the fresh scent power, youll want to try it. Again and again and maybe just one more time. Indulge in irresistible freshness. Febreze unstopables. Breathe happy. Welcome back like many of you, workers at facebook have been grappling with the new normal of the work from home lifestyle. Mark zuckerberg said it is not exactly racing to get employees back to the office in terms of opening up at this point, you know, because we are in a lucky position because a lot of what we do is Software Development and you really can do that mostly from home i think opening up will be a contended resource a lot of other businesses depend on getting out in public and out openly for businesses to survive. But part of keeping them safe means folks who can stay at home being more conservative about when they return weve made a decision well be on the slow end when we are opening back up to work. We have opened up small offices for some roles well open more slowly over time to make sure the folks that really need to stay open for their lively hoods have right of way on that, if that makes sense. Just a snip it of a big interview. More on 6 00 a. M. On squawk box. In the meantime, American Airlines announced, it will slash jobs due to the outbreak and lockdowns. According to a company memo, American Airlines plans to cut about 30 of management and support staff. Thats about 5,000 jobs. They are started offering buy outs and is planning to offer volunteerly leave and buy outs for staff like flight attendants last month, airlines that took part of that grant cannot layoff employees as part of the deal for taking money nasa and spacex to try again after sour weather forced the launch to be scrubbed. Deemed a no go about 20 minutes before take off. Now to take place saturday afternoon around 3 00 p. M. Eastern. The launch will mark the first time nasa astronauts have flown in a commerciallybuilt space craft. Everybody routing for nasa and spacex on saturday still ahead, speaking to one Business Owner forced to completely flip his Business Model to stay afloat well reveal what we talked about at the beginning of the show the single best performing stock on the s p this week if you guessed it, you are a lot smarter than we are. Dow futures are up more than 100 points again a bk rlide exchange after this ights out o, ights out o, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. 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. The rally set to roll on stock futures more than 100 points now americas best Financial Advisor here with free advice. Trump takes on twitter with his war of words can he really shut down social media. Oil prices looking to stick around for a while what is the outlook for houston and texas. Well look at tough times for the lone star state. Thats coming up here on cnbc. Welcome back. It is just about 5 30 on a thursday morning im Brian Sullivan here is how your money and investments look just about half way through the 5 00 a. M. Hour stock futures are up more than 100 points dow up more than 4. 5 . Small caps up more than 8 this week weve seen a lot of money come in to equities because of the shortened week nasdaq and technology is the one sector to watch. They have been underperforming the rest of the market something we have not seen a lot of the last couple of years. At the beginning of the show, we asked you if you could not name or guess the single performing stock. The name that has gained 28 guess what, the gap. The clothing retailer stock has gained 28 only since tuesday. It is on the rise again this morning. Investors are not dancing, you probably lost a lot of money in your stock in the last few months a remarkable sign we have seen in the short coming. Gap and many of these other stocks sort of the reopened type names have really rallied over the last couple of days. Heck of a run for the gap in the short term more on the markets in a bit we want to get more on the developing story out of washington President Trump is expected to sign a new executive order today targeting the social Media Companies amid his dispute with twitter accusing it and other social media giants of conservative bias without presenting evidence against conservatives. We have more from washington, d. C. Good morning, what can we expect from the white house today brian, as you know. This is just the latest round of trump versus twitter we know the president will sign this order today still unclear exactly what it would do trump has been lashing out against twitter on twitter when the company flagged two tweets about mailin voting being misleading saying it violated policies on the election process. The president wrote, quote, twitter now shows everything we have been saying about them and their come patriots is correct big action to follow this is not the first time the Trump Administration cracked down last year, he put in an order that would have put the se krerc of regulating they never put that into action. In the last few days, republicans on the capitol hill have been slamming the media giants Kevin Mccarthy said their own Fact Checkers are bias and he sent this letter saying twitters decision to single out the president for disfavor based on political speech is alarming. I did reach out to twitter for comment. They declined. I think everyone is waiting to see what the details of the white house action will be back to you. Elon, weve heard the president talk about it. Is there any chance twitter could be shut down permanently or in the short term because of this i think shut down may be an aggressive action, perhaps too ambitious. A lot of the debate has been focused on section 230 of the election decency act and reliability on what is posted on their platforms. Changing that is something that would require action lawmakers to vote on it. It is not within the white houses purview. There is a lot of uncertainty around how this executive order could be taylors and targeted around these and perhaps one reason why the white house didnt follow through with this last year. It probably shouldnt come as a surprise according to peer research, twitter users do identify as younger and more liberal and members of the media this shouldnt come but twitters own users say, yeah, we lean left there should be an expectation in some ways of that no not really a question about the users but twitter as a company. Pointing out that the president has been one of the most prolific tweeters on the platform there has been a lot of debate around whether twitter should take these steps there is a lot of confusion. These tweets in question were about elections. Both facebook and twitter have been very clear if there is concern about the election process could be somehow undermined and take the action that would cross the line. According to that survey, 10 of tweeters generate 8 of their content. Big story. Well wait to see how that plays out. Millions of americans have become unemployed amid the pandemic with the lockdown expected to tick even higher one sector hit hard is of Course EnergyCompanies Like halliburton, a patchy and baker hues have laid off thousands. Many of those may not get their jobs back anytime soon joining us from a houstonbased recruiting and Staffing Firm thank you for joining us from houston on cnbc. The pandemic has taken a big toll on energy but energy was sliding even before the lockdowns. What is the current state of oil and gas not only in texas but north dakota has also taken a big hit. Thank you for having me on. It is difficult times right now. Not just energy. Some of the bigger names have laid off here in houston, every company is virtually related to mrg. We are a recruiting firm never setting out to be an energy recruiting firm 80 of our business is energy. Weve had hundreds of thousands. A High Percentage of unemployment even more than the 80s for us, this is a very difficult time here. Houston has ridden out these waves and is arguably maybe the most important economic city in america. It has powered job growth. Even after the great recession, houston was adding jobs. Women were packing up their lives and moving to houston. Out siefd energy, what is your longterm prognosis . Right now, it is a perfect storm. We were already having a slide down before this and then the trouble with covid long term, weve been through harvey and up and down one of the down turns is that people leave workers leave, they never come back they either retire, retire early or move on to Something Else because they are tired of it well come back. We always do weve already started picking up it may not feel like that to hundreds of thousands of people without their jobs at one point, we are a recruiting firm with no one calling us for jobs. That was a reality in march. Already in april, we are back to 40 to 50 compared to what is normal for us. We are still optimistic. It is going to be a long haul. You dont take hundreds of thousands and put them back to work immediately it will take time. About twothirds of houston Public Companies are oil and gas. Crude oil is kind of the blood that runs through the citys veins. You are getting some calls what kinds of jobs are still being hired for in oil and gas right now . In oil and gas, it is more dependent on, i would say, the risk profile of the leadership no one sector for us is really strong right now oil and gas will have folks being hired in the front office. There is not much drilling going on counts have dropped dramatically as you pointed out before. It is difficult. Weve seen manufacturing jobs, pharmaceuticals, essential workers. Theyve been hired back. Grocery stores some other areas, technology we have some of that here in houston. That has picked up a little bit. I cant say there has been any one area that has been strong. It is just pockets keith, listen, that town is about as tough as the tyler rose i know houston and texas will make a come back im not sure the texans will win until they change their name back to the oilers thank you for joining mess from houston. Our daily dose of good news. Restaurants are still struggling in some places but there are signs of life coming back. Well show you some economic green chutes with restaurants. Dow futures are up 150 we are back right after this welcome back time for economic good news. Green chutes, hopium, whatever you want to call it. Here is todays however small it may be restaurant data courtesy of opentable and focusing on a few of the reopened states look at this reservations changes from last year these five states are way down off 50 , 60 , nearly 70 from last year. However, they are not down 100 or 90 that is the key like we showed you a few weeks ago when everything was shut down south carolina, their restaurant bookings were down 57 from the same day last year yes, that is a lot a long way to go Restaurant Owners are still struggling considering those restaurants have only been open now a few weeks with many limitations with social distancing and mask wearing. Maybe that data points to a faster consumer rebound than many might be expecting. Many because the stock market may be coming back many businesses saw business drop and some saw sales increase bondvet is a new york city vet clinic the Company Quickly repurposed and responded by launching Telehealth Service for pets. We are joined now by the founder of that company. Good to have you on. We all love our dogs and spend a lot more time with our dogs. I would imagine especially those in new york city what did you do and how did you repurpose so quickly your company to adapt thank you for having me our duty as a veteran Services Organization is to our entire community. As soon as we saw some of the trends and the pandemic and the risks increasing, we needed to offer an alternative to parents in new york city we launched telehealth we were allowed to offer an alternative to pet parents to get answers to their pets, for their pets the pet cant exactly speak for itself if it were a pair parrot, they could tell you how does pet telehealth work there are significant differences to the human Telehealth Companies we look to for inspir rigs. As you pointed out, pets cant speak for itself when your dog has a rash or is experiencing a bout of vomiting or diarrhea, they cant speak. We are relying on pet parents. They are taking their phones and showing us picture, live video and veterinarians are adapting to the way they are able to treat, recommend protocols not everything can be dealt with overtelehealth we are still recommending some pet parents to bring their pets in we are saving around 50 to 60 of those telehealth visits a trip to the veterinarian the interesting thing to think about vets, mo, is that covid is an animalborn disease. Ive found many vets more prepared to talk about this because covid and sars is an animal linked virus. The longterm veterinary trends arent going anywhere we love our pets we are going to do our best to look after them. In some cases, better than we look after ourselves we see the vet industry continue to be resilient. Weve seen the shortterm resilience and pent up demand start to increase. From the virus perspective, it is tough for me to say whats going to happen. What i will say speak with the Veterinary Community is we are confident with the leadership of the entire country and medical community that well find outweigh i like it leaving on some optimism there bondvet adapting and shifting business best to you and your team. Thank you for joining us thank you on deck, the rally rolls on the futures are up 140 and back above 25,000 what do you do right now with your investments we have one of americas top advisors here on Worldwide Exchange with some free advise for the best moves on your money. We are back after this stick around 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, dad, im scared. Its only human to care for those we love. And also help light their way. Its why last year chevron invested over 10 billion to bring affordable, reliable, ever cleaner energy to america. Good morning, stocks look posed over the next few days negative to dow futures. Up about 80 points but gained almost 1,100 points in the last 48 hours retracing and regained about 60 of what it lost during that march panic. With stocks up, bond up, gold up, cash up, what is up . Welcome richard. Chief partner at barrons ranked six on the year. Congrats on that barrons honor i imagine you have clients calling saying, i road it out, should i be selling on the strength what is your advise right now . Clients have to first renew allocations and determine if they have over or under skploerz roughly 20 equity and health at native investment. Most have adequate exposure to the market right now, we think the market will continue to be strong well relative to the mass liquidity of the market let me jump in there quickly. I want you to answer this hot debate you know the debate. You got people saying the economy will rebound the other camp saying this is all the fed, the hopium, sofrt fake money driving the market. How do you answer that the most significant part is fed liquidity causing the market to go higher if you take earnings estimates of 2021 of roughly 140, 145 eps we are selling at 125 worth of earnings now most of the juice will be squ s skeezed out of the lemon now more probably to do with the s p. You would expect a pull back in the macro indices correct weve seen the market pull ahead for expectations of earnings and recovery sure, that will happen in the return 2021 will face elevated levels of unemployment. The failures and the market is not priced for the negative news that will occur not now but in the future of 2021 so many ceos echoing saying the real pain wont come for 912 months because so much stimulus wont be put into the economy. With that in mind, do we need to reduce that exposure from an average perspective, do we reduce our portfolio for the next year . A couple of steps investors could take we would have very little exposure outside of the u. S. And focus on the u. S. Equities we would have zero exposure due to the structure they would face going forward. Within the u. S. , we think there is great opportunities right now. Where are those best opportunities, richard we can look at technology. We are in front of the Industrial Revolution where the pandemic has emphasized the need for all types of technology. That will be pulled forward whether cloud, automation, artificial intelligence, mobility all of these areas will lead the market higher over the next decade investors should have the allocation to these industries and how much cash should we be holding right now we dont have a lot of cash around primarily because we feel this liquidity has touched the market however, well be trimming our exposures likely towards the end of the year at some point when the market starts to look forward in 2021 and fast the unlocking of the quarantine from the pandemic great advice from barrons number six top ranked advisor. Congrats to you and your team on that you are welcome back on cnbc any time folks, thank you for joining us. Tgih tomorrow is friday well see you then squawk and the gang pick up your coverage right now there are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Good morning breaking news, beijing moving forward with the crackdown on hong kong. Taking usa one step closer to ending its special relationship with the territory well take you there live. President trump preparing an executive order on social Media Companies after twitter fact checked two of his tweets. Well bring you andrews meeting straight ahead plus futures on the rise after a twoday gain over 1,000 points thursday, may 28, 2020 squawk box begins right now. Good morning, everybody. Welcome to squawk box on cnbc. Im becky quick along with joe kernen and andrew ross sorkin. We are looking at green arrows again. Joe mentioned over