Business owners are already facing after months of lockdown and ceo response social issues facing Corporate America and the companies to do the right thing. It is tuesday, june 2. We are watching Worldwide Exchange. You are watching here on cnbc. Good morning, good afternoon, good evening from wherever in the world you may be watching. Im Brian Sullivan thank you for joining us wherever you may be. We hope you are all healthy and safe optimism from the markets looking ahead. Thats what the stock market appears to be telling us some investors clearly believe in 9, 10, 12 months, the economy will look very different than it does now with 40 million out of work and many states in various lockdown stock futures right now are higher indicating an open of 100points to the upside. Indicating at the highest level. About 3 to the nasdaq 100 hard to believe. They all rose overnight as well. A similar story. The markets are higher despite the protests that began here and now happening in various cities. The markets outweighing recovery hopes to the tune of trillions of dollars look at the german market, the dax up 3. 5 . Some of the hard hit bank stocks perhaps a positive sign for the equity markets more on the market and your money in moment. That is not your top story again today. Today, we are waking up cities torn apart as protests turned into a night of violence from washington, d. C. To los angeles. New york city imposing the first curfew in 70 years as fifth avenue wakes up to blocks of broken glass and stolen goods. President trump addressing strong action as he addresses the nation we begin with nbcs chris malone brian, good morning thats not all that has democrats and even members of the clergy criticizing the president s action they sayfederal police used rubber bullets on Peaceful Protesters just so the president can possess for a photo op outside the white house. About 25 minutes before the mandatory curfew, officers moved on Peaceful Protesters moments later, another extraordinary scene. The president cabinet members and staff walked off the white house grounds to an Historic Church protesters had vandalized the night before early this morning, the white house posted a Campaign Style video of the visit including the president holding a bible in front of the church. Democrats call the actions cowardly weak. The president using the bible and one of the churches of my diocese without permission as a backdrop for a message antiquit call to the teachings of jesus and everything our churches stand for. After the first formal statement following the death of george floyd i am your president of law and order and an ally of all Peaceful Protesters. Warning hell impose the insurrecollection act. If a city or state refuses to take the actions necessary to defend the life and property of their residents, then i will deploy the United States military and quickly solve the problem for them military police are in route to washington, d. C. On his order as the capitol emerges on the fourth night of protests with the president ial election four months away, joe biden will be in philadelphia today. His second inperson Campaign Event in two months. Back to you. Chris from washington, d. C. Thank you very much. Lets head out to minneapolis. More dramatic scenes there jay gray has been following the action im sure the action has been going on all night glad to see you are safe, my friend hey, thank you, brian always good to talk. Although the circumstance stansz not what we would like an uneasy tension here and so many other places. We are outis side police presecurity one in downtown minneapolis. It looks like a military base. Overnight, frustration and anger again spilling into the streets. Tense showdowns between protesters and police. Windows shattered, windows broken military leaders blocking hundreds outside of minneapolis. Those edges seemingly unraffling outrage on the heels of overwhelming pain and emotion. Heart ache leaving Terrence Floyd so weak he struggles to walk to the spot where his brother died once there, his strength is clear. Whats his name george floyd. Terrence demanding violence in his brothers name end. You are not doing nothing thats not going to bring my brother back at all. My family is a peaceful family lets stop thinking our voice dont matter and vote. Ultimately his brother didnt have a vote in how his life would end. Still tens of thousands. Want to make sure. Keep my brothers name ringing. His voice is heard. Reporter just an emotional time there yesterday, brian. Look, there will be a public memorial here for george floyd on thursday followed by another in houston, the city where he grew up and where hell be laid to rest. Jay, weve seen some of the scenes in minneapolis from a business perspective in terms of business, destruction, the protests what are the next steps for minneapolis . What are the next steps you are hearing from minnesota and other parts youve traveled . You know, it is really up to the community. This community has decided they want to start cleaning up. They will continue to protest. Weve seen families out in some of the hardest hit areas sweeping and pulling away what they can and trying to provide hope a lot of those people saying they are frustrated that the violence is taking away their message. Nbcs jay gray live in minneapolis. Thank you. Be well. Lets get back to our main mission cnbc despite those dramatic scenes, investors once again seeing a muted reaction to the markets. Jim cramer offering his own take last night to be crystal clear, no the stock market doesnt care about social justice you think it should. For the most part, thats just not how things work. You could see investors are myopic i could say because it tends to produce better results with us to discuss markets is erin gibbs as jim pointed out, the stock market looks past these things, however difficult or crass that may seem the reality is that the market has gone on over the past 100 years or so. Small cap stocks there up 18 percent this quarter up a few percent this week how is the market able to disconnect like this it has been really impressive. Looking at your small and midcaps. This is very much a sentiment rebound and not based on at least strong fundamentals or positive outlook for these types of companies most small and Midcap Companies are still going to be struggling beyond these midcaps as we move through the recession and Recovery Period over the next 12 months i dont see this past one month period of a Strong Performance being a sign we can all jump in to the morris beingy and volatile stocks. Driving it in particular are some of the Software Firms that do have a good standing. There are a couple of companies i like like j2 global, man at y y Manhattan Associates the market cap scale could be more possible. I dont see it as a science to go all in and be risky and get it into the small caps squoo what is amazing is the latest part of the retracement rally. 70 close to the alltime highs. In the last few trading days, the small caps have been outperformers. People are betting on america. Companies that have almost all of their revenue coming through the sources. They are not multinational nations seeing these things around the country, it truly is a divergence it is again, a lot of it is we are expecting as america is slowly reopening, a lot of cities and states are reopening over the next few weeks. That is the sentiment where we saw the smaller caps come from as we face the reality of reopening will repressed Business Sales well still see significantly less revenues from most of the companies and slower business. I really warn investors off and away as theyve been underperforming for years. I dont see this as a turning point yet. We are not in that highgrowth face of the economy. Down the road investors pricing in a very sharp recovery well see if 10, 12 months from now, well have that couple of realworld picks for us thank you for joining us best to you. See you soon up next, what are some of the real world, right now Ideas Companies can implement real change the ceo of just capital is here. And the home builder boom. Building homes primarily out west and former sears ceo Arthur Martinez about what is ahead with equality and inclusion. We are just getting started. Dow futures are up we are back after this 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. Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. But with the covid19 crisis, many veterans are struggling to make ends meet or get the care they need. Dav has helped ill and injured veterans for one hundred years, but today, the need is greater than ever. Give to the dav covid19 relief fund and help provide critical assistance to veterans in need. Go to dav. Org helpvets or call now. Your donation will make a real difference. As protests push on around the nation, much attention is being focused on the real structural problems are that got us to this point from a business perspective, it is clear equal opportunity, equal pay a Company Looking to correct with the idea that capitalism can effect real change business, while criticized often, maybe rightly in many cases, can be a large force for structural change and structural good with that in mind, as you talk to thousands of companies, what are some of the largest structural issues Corporate America is facing right now . First of all, thanks for having me on it is really important we talk about businesss role in addressing what is happening in the world right now. Not just in the response to covid19 but the response to the death of the murder of george floyd and what is happening across the country in terms of the inequalities we are seeing covid19 and the recession we are headed into is just exposed a lot of these issues as we say. We see wealth and equality we see inequality in terms of job type black and brown communities are the hardest hit by coronavirus those jobs were the first to go. Jobs disproportionally held by black and brown people weve seen companies in different sectors hit differently. Frontline workers really baring the brunt of the coronavirus and the economic impact. So there is a lot of issues now been exposed by covid19 we think what is happening is when you think of only of business as a machine for generating shortterm profits. Thats fine, jam cramer may be right. Maybe the market doesnt care about social justice but individual businesses do and they must. We know over the last six years, well polled over 100,000 americans. They want businesses to do more. Weve seen companies that really across every industry beginning to lead on addressing the needs of all of their stake holders meaning their workers, customers. Communities they operate what weve found is that companies balance that well. Through all of that in the businesses from the return we are shifting from the market from where, you know, people didnt really matter let me jump in there for a second we have a chart showing Top Priorities for American Business fair wage is at the stop extended unemployment is coming off in two months. Unless they are extended, well see a lot of people that see a continued reduction in what they can live on right now. These frontline workers the women and men who kept our stores stocked, we never talked about before three months ago, getting these hero bonuses, those are coming off what are realworld actionable ideas that companies can and should implement right now extend paid sick leave for way beyond verizon has done that. Weve seen darden do that. Companies extend hazard pay. A bunch of companies hazard pay with an additional 2 or 3 an hour dropped away. Weve seen companies extend that, like amazon, into june companies with backup dependent care verizon provides up to 100 a day for backup dependent care not just for children but elderly parents. Ways for companies to meet the needs of their workers weve seen companies provide hazard pay 20 , 30 of companies provided hazard pay the question now is how much of that will stick around will others follow examples set by darden for example making paid sick leave permanent. It doesnt feel like the virus is over and there for employees will need that if they need to take the extra time off then Companies Providing that that will help them out and provide a better work environment. Proviefing personal protective equipment. 100 of employees want to provide ppe and a safe work place. Companies like that are real world examples of Companies Taking steps that are totally appropriate right now and also good for business. They are. Those are great points, martin we have the privilege of working from home. Companies did not know that they needed the gear three months ago. Highlighting some real world changes to help ease the situation that we have right now. Martin, thank you. Thanks for having me on, brian. Still on deck, facebook on notice what is ahead for Mark Zuckerberg after hundreds of employees staged a virtual walk out. Announcer todays big number, 90 . Thats how much the price of crude jumped in may. Making it the stbe month on record for the commodity need better sleep . Try natures bounty sleep3, a unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. 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. Technology topping your stock News Facebook employees staging a virtu virtual walkout. They believe the president s comments violate facebooks rules about insiticiting violen. Analysts telling cnbc this is only the second time apple has participated in the socalled 6 18 event uber, lyft, doordash, all temporarily suspending service in some Cities Companies have not provided a full list of impacted areas. Uber says some cities are asking the company to continue to try to operate where it can during curfew hours having a very tough time earning a living now a big impact on the stocks there. Ahead, we are back where President Trump is taking a hard line against the coast to coast protests and speak to one advisor. Dow futures up over 100, dow futures are back after this. Is creating Food Insecurity on a scale not seen in decades. An estimated 54 million americans will struggle with hunger. 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Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Americans are facing another day of peaceful protests and violent looting. President trump threatening to deploy the military. Could that inflame the already tense situation. Investors having to digest all of this. Potential of the real set backs. The stocks look ahead and keep moving higher. Its tuesday, june 2 this is Worldwide Exchange here on cnbc welcome back there is a lot to talk about the market seems to be signaling optimism looking ahead as it has done the last coupling days and weeks and saying, yes, shortcoming and highfrequency machine trading doing all the buying some say in a year, the economy will make big strides. The dow to come back 136 points. Even with 40 million out of work and many states still in some form of lockdown futures. They are not locked down theyve been unleashed the nasdaq 100 up a couple a percent from the alltime high American Cities and business facing another night of peaceful protests and potentially violent looting. If the destruction of property continues, the president threatened the military to quell shall the violence youve had amazing scenes at the white house. The protests landing literally on the door of the white house as the president steps out brian, thats exactly right ive never seen anything like this in my career covering washington neither has any living american. The president in the middle of a paean that has killed 100,000 americans or more, addressing reporters in the rose garden covered with masks because of the problem of the disease at the same time that is happening, outside the white house, you have these scenes of violent crackdown of protesters. Then the president decided he wanted to go across the street to st. Johns Church Stroll across Lafayette Park which had been the scene of major protests Law Enforcement officials clearing the area. You see the president walking across to get to the church. The president bringing a large entourage of white house officials with him for this walk across the street and posing for pictures with a bible in front of the church, simply holding the bible there. Not having a lot to say. The president with a striking gesture of walking across the park and having that park cleared for him roughly by police and then going back in to the white house after that the rose garden making the remarks that he wants to bring out the u. S. Military. Mayors and governments must establish an overwhelming Law Enforcement presence until the violence has been quelled. If a city or state refuses to take the actions necessary to defend the life and property of their residents, then i will deploy the United States military and quickly solve the problem for them but brian, a lot of governors across the country have said they dont want the u. S. Military called out. Thats an escalation and they dont want to see it is there some kind of political message you and your sources could garner with what the president was trying to send from all of that yesterday the president earlier in the day had been on a teleconference with governors saying they risked looking weak and looking like fools and he wanted them to crack down more on the protesters clearly, the president was demonstrating with his own actions having the street cleared by Law Enforcement in order to walk across the street for the photo opportunity. He was clearly demonstrating what he meant. There might be some backlash here for some of the religious figures here in washington including the bishop that oversees st. Johns has expressed frustration or even outrage with the opportunity in front of the church that he didnt pray, they didnt tell him he was coming. He didnt say anything, he just stood in front church. There could be some political blow back for him. Signaling that he wants Law Enforcement to get tougher sending a message to evangelical christians by holding up that bible. We are witnessing history these are the scenes a lot of our children will be learning about 5, 10, 15 years from now the often difficult scenes to watch on television are the latest course of concern for American Businesses and investors. Most of the nation still in some form of a lockdown in the new york area, you still cant go out to eat. Many he had call experts warn, dont forget, there is still a good chance of a second wave of the virus coming in the fall if not sooner than some of the protests how is it we can stay calm when p it comes to investing. Well go to victoria at g squared private investing. What are you advising your clients that probably want to sell everything and ride this out. We are advising that it is never smart to panic we have seen strive in 1968, 79, other election years that have been difficult the best is to understand your risk tolerance and make good decisions based on longterm investing. We are certainly stressed right now between the oil prices and pandemic and now sifl unrest we focus on quality and return if you are too stretched or didnt appreciate the down turn. We look to trim some profits you are in texas. I imagine many of your clients are in texas we havent talked about oil a lot. At 35, nobody in the oil patch is winning i dont need to tell you that. Facing this whammy, if you will where they would be exposed. What is the price to them . For people who may have real assets in loyalty and ownership. We tend not to be overexposed. We tend not to drink the koolaid, per se it is a good growth sector here in texas it is tough at 35 a barrel. There will be people that go under. We are expecting industry consolidation and stress as we see banks have nonperforming energy loans we want to make sure we dont taste right now. We want to look at Quality Energy companies and towards those who have capacity to open a line of credit and make it through this youll see some of the stress operators already leveraged struggle and potentially go through chapter 11 or look to have somebody buy them out through other times of express, you see how exxon became exxonmobil, et cetera with multilayered assets talk to your advise yoor and sa what is my exposure. Many people bought some of these Exchange Traded notes that they thought was safe only to find out one morning they are redeemed and find out they are pennies on the dollar. Mark Market Structure do you need to known everything you own now more than every . Absolutely. It is trying to catch a falling knife or playing with fire a lot of the big guys, they dont tauch leverage loans like that for a reason it is exciting to get the 300 upside. You really are gathering at that point. With the uso oil fund where people bought into that and they didnt understand how it worked and with that crash, there were Retail Investors if it looks too good to be true, it probably is and youll need to understand how this will function when it gets stressed another vehicle that imploded overnight. Real great practical advise. Thank you for joining us thank you coming up, the continued reopening of the American Economy now facing even more challenges what starbucks and others are doing and layoffs on one major online retailer and what one major home builder is trying to do now in the housing crisis what americas fifth major home builder is doing to make sure we have a place to life 5, 10, 15 years from now dow futures up we are back after this when you walk into an amazon fulfillment center, its like walking into the Chocolate Factory and you won a golden ticket. All of these are face masks. This looks like a bottle of vodka. But when we first got these, we were like whoa [laughing] my threeyearold, when we get a box delivered, screams mommys work mommys work. With this pandemic, safety is even more important to make sure we go home safe every single day. 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. Welcome back looking at stitch fix which is apparently saying goodbye to people in the golden state laying off 1,400 employees in california instead, it will hire people in cheaper parts of the country starbucks continues to have to adapt. It will further limit hours to pair back operations a the many stores the move will reflect expectations and sales that will not pull back from lockdowns to the fall a different story of shares between Western Union jumping following a report it would take over when pressed by cnbc on the potential deal and the combined two Money Transfer of services in the United States as the u. S. Economy looks to bounce back from the lockdown, one sector coming out on top, Housing Builders seeing very Strong Demand amid the industry shortage for sale as well as the flight from cities and suburbs the fifth largest home builder in the United States operating darling homes and william lion Taylor Morrison chairman and ceo. You are out west, we appreciate you joining us live on cnbc, nonetheless. I understand youve got new sales figures to share right now. Good morning thank you. We are very excited. Well be releasing this morning our may orders our orders are up 17 year over year, which is given our environment today, the fact that we are not open across the country, even nicer is to look at our sales pace, which is 2. 7 per community for the month of may. That is consistent, maybe even a little higher than weve seen in the last three years as i look at the traffic up significantly the last two p times weve seen earlier in the month and i look at the qualifications that are a leading indicator. These were the past weve seen all year. I think the debate is how fast can the come back go on dealer foot back for cars coming back faster than some thought. Would you say the pace of people visiting your show room and sales have met, missed or exceeded expectations. Brian, certainly exceeded we released our earnings a few weeks ago when we talked about the first quarter, certainly coming into the new year we saw some of the strongest tail winds in march, it nearly came a halt as we got everybody home, each week, we saw a dramatic increase through april and through the month of may we are quite delighted. Some markets had rigorous stayathome provingss given the success we are seeing we are quite delighted if i wanted to go see the westerly in denver or the hidden creek in north carolina, how many Taylor Morrison homes could i walk in now . You could walk in most of them across the midwest. We are seeing some additional protocols. Across the u. S. , you could see in our models. People are choosing to look at our models differently we introduced an Online System weeks ago customers are making appointments either to visit in person as suggested to do a virtual tour we are able to communicate with the customers the way they like to about 80 of those folks scheduling a virtual appointment are scheduling to meet Sales Associates a sign of optimism. May sales up 17 , exceeding expectations nice to hear a little economic good news. Best to you and your team. Thank you for joining us here live on Worldwide Exchange. Take care. On deck, former sears ceo and chairman on equality and inclusion. Good news there from Taylor Morrison on the Home Building side we all could use some good news. We are back after this bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. Okay, give it a try. Between wisdom and curiosity, theres a bridge. Between ideas and inspiration, trauma and treatment. Gained a couple of more pounds. Thats good for the babies. Between the moments that make us who we are, and keeping them safe, private and secure, theres webex. Beautiful. Welcome back retailers and Business Owners waking up to scenes of destruction in the wake of the seventh night of some peace ffu demonstrations turning violence. Wellknown brands all targets. Picking up the pieces from the coronavirus lockdown and attempted reopening, these are now the site of unrest joining us now, former vice chair at sacks fifth avenue. These are very difficult scenes to watch we are watching these cities attempt to reopen. People are out of work, 40 million and now cities back under a lockdown, a different kind in the form of a curfew the u. S. Consumer has been so strong that we will look past this it is a dramatic and terrible time in history but in a year or two or three, the American Economy will look past this and recover . The economy will definitely recover but what is the new normal i think there is a very permanent shift going on on the part of the consumer the lockdown has satisfied them in their needs and wants what theyve seen is two or three years of accelerated adoption of online as a channel which has made an acceleration store productivity has become smaller. Profitability shrinks and in some cases disappears. The change here is not the attitude of the American Consumer but the channel choices that they make sure, there could be a shortterm pop perhaps speaking that other executives on air and off. Weve all been cooped up i made a bet on twitter with a friend of mine about restaurant reservations booming once we can do that. Americans have been cooped up for a long time. There has to be a pop for brick and mortar when people feel safe going out. We want to get out of the house . Yes, they do and i do too i think what well see is a very shortterm pop that will revert to a more cautious consumer not quite as they were leading up to this terrible crisis with the pandemic and now the protest there will be a shortterm behavioral pop ill agree with you on that but i think there will be a time of reset with the American Consumer understanding that theyll need a little less than they used to. Keeping up with the joneses wont be quite what it should be a gradual move towards new normal part of that is income and equality you cant pay someone a fair wage when you dont have higher profits. For years, americans have been focused on cheap incam comes may have fallen, it theyve lost their jobs to factories in china to make the cheap stuff on the shelves do you think americans would pay a little more to buy something made in the United States or at least in a fair wage nation . I think your last comment is one that matters the fair wage nation, one that doesnt seem to be exploiting workers for their own economic gains. It will be a reset of the table in terms of the lodge is call issues and the outcome of the product. There is no question that the American Consumer will respond some what better at the end of the day, the pocket book is what determines how people spend their money when it comes to the drastic income equality. Not so much about wants but needs. We may have to pay a little more to spend a little more. Great discussion i want to have you on soon this is the very important thing about the high cost of cheap on American Consumers thank you for watching Worldwide Exchange. Dow future up nearly 200 squawk box and the team will pick up coverage right now have a great day wherever you may be at calms you, helps you fall asleep faster at calms you, and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Breaking news in america overnight. Protests erupting. Officers hit by gun fire in st. Louis. In new york, store fronts shattered. President trump making history threatening military crackdown in the streets of the u. S. And this morning, finding solutions. Well talk to business and political leaders about equality and creating opportunity in a path forward for america squawk box begins right now. Good morning welcome to squawk box on cnbc. Iec im becky quick along with joe kernen and andrew ross sorkin. We are looking at green arrows