Transcripts For CNBC Closing Bell 20240712

Expects a renewed down turn. And with the big swings in the market, weve seen the vix, the volatility fear gauge above 53 59 minutes left in another volatile week. We have great guests david giroux from t. Rowe price. And shares of wind ham hotels Geoff Ballotti will join us. Lets get to the market now and another up and down session for stocks after yesterdays massive drop mike, you may be coanchoring to day. Youre not off the hook. We need your charts and your dash boards. Walk us through the action what happened . I wouldnt have it any other way, of course heres a one year, the s p 500, that selloff yesterday was a little bit destabilizing, it seems for the tape it didnt punk tour the air that this rally is inpenetratable it did hold today. Back down around the 3,000 mark. Theyre fighting it around that level. I did highlight this zone in here a lot of this area is still in normal pullback zone the rhythms of the market seem like theyre a little upset by yesterdays pullback you mention the vix also still elevated have to watch the bond yields. Treasuries compressed in yield today. So all that working together for a little bit of a cautious end to the week. But certainly Holding Together the longer term trend. Take a look at this chart. It shows the number of overbought and oversold stocks in the s p 500 the this is on a daily basis what you saw here is this historic drop. Look at. That we were above 80 overbought stocks. This is a measure of how much theyve gone up or down. It is below 20 . Actually lost 70 in from going in the overbought reading today. Only four other times in the last 30 years have you seen that drop so it showed you just really on a one day basis you bled away a lot of the technical excesses at least. And forward going basis, the other four times, you tend to do better in stocks over the next few months although, its not a decisive backdrop. People are saying were overbought and overconfident tape is stretched. We took care of some of that yesterday. We have to see though if you need a little more of a flush. Some people are looking at a bond market for clues on this rally. But with the buying this week, with the Federal Reserve saying rates are going to be rock bottom for a few years is that a tell right now for stocks its hard know how clear it may be the bond market may be suggesting about the macrooutlook it tells you something about risk april tights. When you see the ten year note, okay, holding around. 7. Thats down from above. 9 earlier in the week. Its been a little ebbing it is probably having something to do with this. Credit spreads, more important for equities they have softened up. They widened out a little bit in the last couple days not to critical levels i think thats the variable you really want to watch in terms of Equity Outlook from here thauction very mu thank you, mike. Lets focus on the airlines. Looking to end with another move higher here. Phil lebeau has the latest on the sector phil a big day again for the airlines this time to the upside, sarah take a look at the major airlines, big four right now, all of them up between 8 and 15 . Look at what this week has been like and really the last three weeks have been like for the airlines if you look at this week, between tuesday and thursday, they were down 21 to 31 look at the move that they had, the three weeks prior to that. United up 123 between may 18th and june 8th delta, one specific stock we want to highlight, it did close the Debt Offering raising additional 1. 25 billion and then you have american this is sort of an updated guidance noing really different than what theyve told us in the past. Liquidity target 11 billion by the end of the month and then the q2 revenue down around 90 thats the expectation at this point. Finally, take a look at shares of boeing. Senators are drafting a bill that would reform aircraft certification and how that whole process takes place. Thats according to a wire report that is out there weve expected this. So thats not going have a big impact on the stock today. Remember, boeing is targeting the recertification flight or flights of the 737 max by the end of the month big, big day for the airlines once again sarah . And everybody just continues to be amazed, phil, by how fast demand is coming back. The more than expected better than expected as youve been reporting, a lot of it Leisure Travel its almost all leisure how big of a portion is Corporate Travel a percent about and who is most impacted as far as airlines and that breakdown in terms if it was a regular market prekrid h. Covid1covid. Its not you and i looking for a deal to go down to florida at the last second. Can the Airlines Make money off Leisure Travelers . Yes. But not as easy as when theyre working with Corporate Travelers. Thats the real challenge for the guys now that corporate market, its dead in the water for the foreseeable future i may start to come back in the fall nobodys banking on it in the Airline Industry phil, thank you very much talk to you again soon turning now to the coronavirus a growing trend that wall street is watching carefully. Some local governments consider reimplementing shutdowns after an uptick in cases meg has that story for us. Hi, meg. What were seeing right now is local governments implementing pauses on the reopening strategies specifically oregon states governor last night saying that they are pausing for a week. Theyre reopening plans. So every county is essentially frozen where it is in their reopening. As they are seeing counts rising the they basically say this is giving them time to assess factors that are driving this spread they saw the highest case count yesterday, 178 new cases about 5200 total in oregon nashville also seeing the delaying the next reopening phase as theyre seeing a slight increase in cases over the last two weeks. Yesterday they announced 107 new cases just in nashville alone. Now we are seeing spread around the country, in florida today, they announced a new daily high in total cases and here we have the metro areas that are seeing their case counts double at the fastest pace this is data from evercorp the fast sest in phoenix, arizona, seeing case counts double every two weeks followed by tampa, charlotte, north carolina, riverside, california, and dallas, texas. Now some of this can be attributed to increased tracing and better Contact Tracing some cant be. And with he did hear from the cdc and its first public briefing in three months today essentially they were giving guidelines about how people should go about their daily life, practicing social distancing, wearing a cloth face covering, choose Outdoor Activities the they also gave guidelines around things like going to the bank or eating out, going to different businesses, even traveling overnight. This pan dem sick ndemic is note may need to see efforts increase if they get worse. Thats what were seeing in oregon and nashville. Theres a sense out there certainly in a lot of the wall Street Research on this topic that you read that there is a percentage there is a high threshold for when governors or mayors or other local authorities will go back to some kind of a full shutdown. Is that born out by what youre seeing yet can you talk about when they may trip over that threshold. We have not talked about anybody shutting back down again. Right now its what they refer to in oregon as a yellow light signal a stop, assess, figure out whats going on, figure out if they need to change something about the way they are reopening. Not yet talking about closing back up. So much of this is it better surveillance and understanding the epidemic that is already there or is it new spread which, of course, is most concerning. Meg terrell, thank you. After the break, imagine putting billions of dollars to work amid the market meltdown earlier this year thats exactly what t. Rowe as david giroux did the we have 50 minutes left of trade. We have the s p 500 up a little less than 1 well off session highs still tracking for a loss of more than 5 on the week stay with us on closing bell. Stock slices. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. Schwab. music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. The xfinity voice remote will find exactly that. For, happy stuff. If the groups happy, im happy. You can even say a famous movie quote and it will know the right movie. Thatll do, donkey youre expecting prince charming . You can learn something new any time. Education. And if youre not sure what youre looking for, say. Surprise me. Just ask what can i say . To find more of what you love with the xfinity voice remote. Market trying to hold on to gains here following yesterdays massive selloff. Stocks had the worst one day decline since back in march. Were still on track for our worst week for stocks since march. But the more than 5 decline for the s p 500 so far our next guest placed major bet on the market during the drop in february and march, buying nearly 9 billion in stocks and so far that bet especially paid off. Joining us now is david giroux, chief Investment Officer at t. Rowe price and five time nominee and twotime winner of morning stars fund manager year of theward in the allocation category thats quite an intro, david so what are you doing now after that bold move to buy back end of february, early march with the market having rallied dramatically off of 2200 level, we have pulled back our equity position which went from 55 of the portfolio in january and february to 72, basically the market bottom. And equity is so we come off the high but dont see as much much compelling value as we did, you no he, a little bit more than a couple months ago is that allocation 61 or 62 pretty much a benchmark level for you . Im trying to get a sense of whether youre more cautious than you generally intend to be because youre not seeing as much value or is there a macro call involved in that . No macro call its more of a bottom look on stock selection. We dont see many opportunities as we did a couple months ago. That 61 to 62 , i would say that is basically very consistent with our long term average if you will over time, you know, when were cautious likewe were in januar and february, well be that mid 50s. And we really want to be aggressive like we were in early 2009 and late 2011, well go to the low to mid 70s beyond just the price action and the tremendous runup of 40 or so that weve seen off the lows, david, is there anything that about the outlook that makes you more cautious right now than you were . The only things that happened is the price war changed dramatically so we went from a situation where, you know, the sky was falling and it was just this wall of negativity that, you know, prevaded everything that we saw commentary, if you will, in the marketplace and now there is more of a Glass Half Full environment with the market at 3,000. You know, we dont invest in the market we invest in individual securities concentrating list of securities so i would say that market at 3,000 is not compelling depending on, you know, how long the recovery takes but there are still large number of stocks and sectors out there where we see attractive opportunities to generate double digit returns over a two to three year time horizon that were still investing, if you will we were fine in that january and february time frame. We were just showing examples there of stocks you added to your portfolio it is a mix of some lodging names, marriott and hilton they would have got hit hard and then you have to bet on a comeback in business as well as morsteady names and yum brands is there a theme to all of that . In other words, you have majority of companies have suspended guidance market is giving Many Companies a pass on earnings for a quarter. How are you going about figuring out whether you want to bet on the steady ones or the cyclical ones that might come back . Its all really idiosyncratic, right you correctly identify there are some names in there that are kind of steady Eddie Company thats have fallen off quite a bit. You know, like utilities have had a really tough year this year that is kind of very surprising to me if you told me that the market was going to fall as much as it did, you tell me Interest Rates went where they were and utilities would be down 5 year to date in a market that is down 6 , i would have been very surprised by that. Utilities have really derated. Utilities may be offered it is the most attractive risk reward. Maybe the market goes higher or lower. Just the multiple utilities are trading at today, even if used the market on more of a nor normalized earnings basis, utilities look very, very attractive that is one end of the spectrum. The other end of the spectrum, whether it is a ge, a hilton, marriott, you know, kind of in the cross hairs of this covid19 challenge. If you have a two to three year horizon, you still make returns, strong double digit returns. I will say that the attractiveness of the names is still quite high clearly not as attractive as they were at the market made here at the end of march one of the reasons cited for the big runup in stocks is that, you know, there is no alternative, right this week we got the message from the fed that doesnt want to see yields rise any time and looking at yield cap if not stocks where . There are other asset class thats offer attractiveness, right . You know, i think the leverage alone market where you can still buy high quality leverage loans, you know, basically three, four year to maturity pieces of paper. You can earn mid single digit returns. If the rates increase, i think the returns there look quite compelling we added aggressively to leverage loans in the down turn and we continue to add there again that mid single digit returns with much less risk than the overall equity markets still attractive to us as well is there a group of stocks that you kind of were wo have been waiting to come into your valuation opportunities on that just didnt happen whether it is the mega cap Growth Stocks that did hold up better or any other thats you would look for the opportunity in any dislocations here . Well take whatever the market offers us we were kind of overweight going in the amazons, the microsofts, the googles, facebooks we were overweight going in. Again, its those kind of names that have been kind of, you know, done very well in this environment. We have, you know, reduced our exposure for the majority of those names during the crisis. Whatever the market overvalues today which is safety, which, is you know, having a rated Balance Sheet or net cash Balance Sheet, we want to see the most value. That is not in companies that have a rated Balance Sheets or in companies that are covid19 beneficiaries. We want to take a little longer time horizon in the market and find value david, its been great getting your thoughts today. Appreciate you joining us. Thank you david giroux. We have a market flash on amazon we have the details. Mike, amazon shares are down about. 6 on pace for the second straight negative day. Now a number of headlines regarding scrutiny of the different businesses as cnbc reported, amazon warehouses will be interviewed by the new York Attorney r attorney general in a retaliation probe. California is also examining amazons Business Practices in regards to competition with third party sellers. The that one coming from the journal. Also today, a San Francisco lawsuit is filed accusing the company not properly sanitizing the workplaces or uniforms of employees at amazon fresh. We should note while shares are down, they are off the lows of the day and theyre on pace for their sixth straight positive week back to you. Thank you very much we have how many we have 38 minutes to go before the bell you see the dow is holding on to gains. About 1 s p 500 up. 6 the s p 500 was am will you please 3 at the morning highs value is, again, outperforming steady growth names. Up next, taking sides on tesla stock hitting a record high earlier this week. A pair of firms e thkiarreinng their estimates. As business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will you can rely on the people and the network of at t. To help keep your business connected. Makes it beautiful. State of the Art Technology makes it brilliant. The lexus nx experience the crossover in its most visionary form. Experience amazing at your lexus dealer. A little over 35 minutes left to go heres a check on the markets. Sort of in the middle of the range. We were as high as up 880 or so points on the dow. Lost all of that went negative. And now back in positive territory with the dow up 228 points s p 500 up. 4 the real estate stocks are actually the winners today best performing sector, Consumer Staples the worst. Lets check in on individual Market Movers at this hour tesla shares slipping on the back of a double dose of down grades morgue an stanley citing risks associated with the u. S. China trade relationship demand there and tech economy tigs fcompetit. And downing the rating to neutral and raising the prit target saying it is positive on the companys long term outlook. Tesla is down more than 5 and hertz shares spiking the company asking its bankruptcy judge to allow a secondary Stock Offering and is looking to raise up to 1 billion in new equity. There is the share price it continues to go up, mike. What do you even do with a Stock Offering in bankruptcy if youre able to raise the money . Theyre looking it to bolster to cover the debts the bond holders . For the bond holders. The moment it was announced or filed last night, it got a lot of people scratching their heads. Now that being said, even though almost always the equity ends up being worthless in bankruptcy, its not done until its done. And i think there is a lot of math that people are trying to crunch right here on the whole c capital structure of the company but its something you need to do the work on if luyou look at what they did since bankruptcy, conditions got better you have to see how this plays out. So weird, 2020 is so weird for so many reasons. But one is that hertz has become somewhat of a tell for the speculative activity overall in the market and, mike, what it says about, you know, apt tig the appetite riction. Risk. The speculative interest is the stuffer that is ba that is e dead who knows what that tells us about this year . Still ahead, supporting Small Businesses well speak with the ceo of Regional Bank m t, renee jones. And as we head to break, heres a check on bonds yields reversing trend a bit today. Moving somewhat higher in yield. Ten year still well below where it started the week. Currently yielding just around. 7 well be right back. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Because when you want to create an entirely new feeling, the difference between excellence and mastery is all the difference in the world. The lexus es. A product of mastery. Experience amazing at your lexus dealer. Welcome back a half hour to go before the close. Real estate and financials leading the way, bouncing back from big losses yesterday. Energy and materials also up on the day. Trailing the defensive groups like Consumer Staples and utilities. Technology for once a nonfactor really here are the three things driving the action risk of new lockdowns rises with the surge of coronavirus cases that threaten the economic Recovery Consumer confidence did rise but Americans Still see bad times ahead and half the country expects a renewed down turn. With the big swings in the market, we have seen the vix above 43 today and above yesterdays highs. Time now cnbc update with Courtney Reagan. Hi, good afternoon to you here is the update at this hour. The 75yearold man shoved to the ground by Buffalo Police officers has suffered a brain injury requiring physical therapy and facing a new normal in the words of his attorney the two officers involved have been suspended and charged with Second Degree assault. Jesse jackson and dick durbin marching for peace and equality in chicago following the death of george floyd. The National Football league will officially recognize june teenth as a company wide holiday according to a memo. The june 19th holiday celebrates the official end of slavery in the u. S. After the civil war ended in 1865. For more on the nfls decision go, to cnbc. Com. And South Carolina now allowing bowling alleys to reopen and it is officially lifting the occupancy limits on the states retail establishments thats your cnbc news update at this hour. Back to you, mike. Thank you very much weve got about 28 minutes left before the bell. Index is holding on to modest bounces after yesterdays big losses you see there the nasdaq just dipping negative s p 500 up about a quarter percent. After the break, plend of buzz about the Impact Retail traders have had on the market Barclays Says no the so fast. Robinhood is not behind the rally. The ceo of on line broker doe ways in next 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. [sniffing] is the salmon wildcaught . She only eats wild caught. [cash register beeps] uh, i need a price check on honey. Dont get mad. Get e trade and get more than just trading. Investing. Banking. Guidance. This moment right now. This is our commencement. No, well not get a diploma or a degree of any kind. But we are entering a new chapter in our lives. Our confidence is shaken; our hearts cracked. The kind of a crack that comes from the loss of a job; from life plans falling apart. We didnt ask for it. But we are rising to meet it. And how far weve come isnt even close to how far we can go. We just have to remember how patient we were. How strong we can be. how strong you can be. and remember this; theres a crack in everything for a reason. How else can the light get in . Tomorrow starts today. 25 minutes left of trading take a look at shares of lulu lemon. Down 6 on an update the company reporting earnings and like many retailers, took a big hit from stores that have been shut down due to the coronavirus. Ing it interestingly, they did see a surge in online sales. It wasnt enough to offset physical stores being closed as of june 10th, 295 of the 489 stores globally have reopened for business and expects to be 100 by the end of the month this is a blip on the chart for lulu lemon which in the last 12 months is up 66 versus a market thats gone up 4 in that period most of the analysts actually said it was a positive quarter and theyre not doubting their bullishness on this name because of the long term trend just working in lulus favor. It was a miss because of the store closures and almost no doubt that once the stores reopen that theyre going to be going full steam as opposed to many other concepts the stock up is 10 since february so the stock was just obviously extended before this report. Right and i told you, mike, the number of stores, i mean there are so few stores already the bet on lulu has always been one where there is room to grow. We know the category is big. Nike has so much more of the business on womens, on mens and theyre just sort of Getting Started on lululemon as long as they can continue to resonate with the consumer and see this growth, then the pie is there to expand. Absolutely. All right. After the break, one retailer makes a big dividend move and is this market bullish, bearish, or kangarooish . Those stories and much more when we take you inside the market zone you can always watch or listen to us live on the go on the cnbc app at leaf blowers. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start trading Commission Free today. Robinhood traders are not behind the recent rally, in fact, the opposite may be happening. More robinhood customers moving into a stock corresponding with lower returns. Joining us for more on how Retail Investors are playing this volatility is victor jones. He is ceo of zero Commission Trading startup doe good to see you. The. Good to be with you, thank you for having me as always. Sure thing. First off, do you youre in the same space here as robinhood. What are you seeing in terms of customer growth, customer engagement, how theyre participating in this market and whether in fact you see a lot of, you know, uninformed speculation or other trends from your client base yeah. Definitely want to address the speculation. Let me set the table for what weve seen essentially just since march. Our account base has doubled since the beginning of march and our activity has gone up significantly as well. Were at eight times the trading activity that we saw since march. I think there is two ways i think to think about that narrative. Were at elevated levels of volatility and have been throughout the entirety of that time frame and i think people are utilizing increase volatility to get out of names that are having these significant runs like youve seen them, 5 , 10 , 20 in a day. People wont hold on to the stocks to call themselves long term traders when long term averages are returning annually 10 . Theyre utilizing the rallies as well as risk in the market to close that risk on a more frequent basis we here and our parent company, we talk about trading small, trading often, especially in volatile periods of time where can you manage risk and remain nimble if i can just talk about the growth weve seen from a customer point of view much thats our growth but what does the customer actually done since march . The average balance has grown in size 125 . I think in portion that is because of market performance. But another big part of that is the commitment of this generation, our users, to saving and investing. At the end of the day, there is a lot of negative narratives out there. Th this is a positive narrative. There was whispers of potentially closing down exchanges here and early on. And that did not happen. And because of that, were seeing record amounts of participation among retail traders. No doubt. Thats a good thing. Weve been looking for the Retail Investor to return. Theyre back theyre back with a vengeance. They can afford to take more risks. Are they taking too much risk . You know, some of the name that are in the spotlight when it comes to the retail activity are highly speculative the bankrupt names, for instance a name like nikola that didnt have any revenue but surged in market cap is it just too much . You know what we agree 100 . I think one of the things that we saw to differentiate ourselves with is the fact that we have high subject matter expertise coupled with the ability to have high touchpoints with our customers you know this week on our podcast, social currency, we broke down what bankruptcy actually means there is there are a lot of new traders in this marketplace. 75 of the customers that come from dough have limited to no stock trading knowledge in the past so its incumbent upon the broker, its incumbent upon the institutions to be a partner to the new participants in our marketplace and help break down what is actually happening through the course of a bankruptcy where is an equity stake holder in line as opposed to a debt stake holder we are we are doing our part to make sure were building an informed savvy community of traders and i cant speak universally. But i can say we knew when volatility showed up in the marketplace, thats when people want to partner. Thats when theyre going to want reliability and thats what we spent time preparing for as we launched our business and we continue to service our customers. Victor, what do you make of the idea that its just a coincidence of people being at home and idle and no sports to bet on and all the rest of it . You know what i dont think its i dont think its a coincidence i do think of that the fact when you shut down sports and you shut down peoples Recreational Activities and the market is one of the only game in town, you know, i do think that has a lot to do with people actually having the time remember, when you ask people, you know, request are you not participating in the marketplace . Of course, youre going to get people that think they dont have either the assets or the experience but one of the top three is always the time a the lot of people have the time to sit down and commit to understanding and taking control of their financial future. Again, i just think this is a really good thing that we should understand how many people come on this station and talk about that time horizon and risk tolerance and i do think we should understand that when young people are taking additional risk or more risk than, lets say, someone approaching retirement, there is a narrative there where the Risk Appetite is not matching what you typically see. That is not the case all the way around our customers have been, i think, responding to market stimulus and volatility in a very logical and orderly fashion. And weve been a big part of that helping to inform them in a long way victor jones, thank you for joining us thank you for having me as always 15 minutes left in the trading day. Were going straight into closing bell market zone commercial free coverage of all the action going into the close. Joining us today to break it down, the crucial moments of the trading day, aerial charlie is back well kick it off with the Broader Market stocks rising today. Dow is up 358 points after getting pummelled yesterday still tracking for a sharply lower week the dow has seen wild swings over the past few sessions its on track for the first negative week in four. Charlie, todays action peaappe to be about dip buying did it create any opportunities for you . Our value stocks are still down pretty far even before yesterday. Everybody talks about how the market run too far the average value stocks in the 2000 value index is down 20 even before yesterday. That became 24 yesterday. So after yesterday, absolutely there were some names that were even cheaper but we just want to push back against this idea that the market had run too far no it hadnt for value stocks. I mean russell 1,000 value was down about 10 over the kind of three days since monday, through yesterday. Does that tell you that just that they have become short term overextended or people are easily spook who had are late comers to this value cyclical valley yeah. Its all about, to me, my opinion, it is all about the change in the news the change in the direction of the news people panicked that we were going to change the direction of the news thats what sent the market down so dramatically. I think today sober heads, ill call them, people that have gone through the numbers, the wall street journal editorial page did a nice job on this showing the numbers really havent gotten significantly worse and thats why we bounce back today. I want to bring rob into this from Research Affiliates hes the chairman there. Rob, just talking about to a value investor, portfolio manager, saying that there is still value even though the market has run up so far so fast is this a value oriented market . Is this where you want to be i think so. Timing the growth cycle is always iffy because you dont know when cycles are going to turn but you do know relative valuation. And value is cheaper relative to growth than its ever been before in history including the peak of the tech bubble. Thats how far that rubber band stretched. And maybe what actually makes it in demand though . People have been saying that for years. Value stocks have more headwinds that are troubled, that have lower profit margins, Slower Growth rates. Thats why theyre cheap they were at a not rat discoumon in 2007 and at the peak of the tech bubble and a huge discount today. Put different way, the Growth Stocks are trading at xraf ga extravagant multiples. You can say, gosh, the stocks hurt us lately or the stocks are really, really cheap i prefer to focus on what is cheap and focus on what the long term opportunities look like and they look pretty spectacular hi, kate. Hi, mike. Restaurants that really have robust carry out and Delivery Systems have been foremaning better in this new normal. They have bifrn kdifferent ways cater to consumers will look at the four top performers in the restaurant sector this year starbucks also rebounding today. It is down 14 year to date. Earlier this week they project a 3 billion loss in q3 due to the covid19 pandemic. And casual dining names like brinker and dardon down between 30 and 50 for the year the casual sector is struggling more that has been going on long before covid19 ever it is the scenes charlie, restaurants would be seemingly a group that is right at the center of debate over how fast we get anything back looking like precovid19 normal and whether the Business Models can hold up. We talked about the three buckets. First bucket is the companys that are doing better because of covid19 smuckers, people are eating more Peanut Butter the second bucket, companies that have temporary headwinds because of covid19 but theyll spring back to life after we get through this thats zimmer, hips and knees. The third bucket is people permanently impacted by this theyll at least for the next five or six years never come all the way back im going to personally say the restaurants are mostly in bucket number two that the headwinds is temporary. This is going to take a long time and they and theyre going back to restaurants i think the best opportunities are actually not in the u. S the u. S. Stock market has rebounded to i like to use something called the schiller pe ratio. And that schiller pe ratio peaked at 31, 32 times the long term earnings earlier this year. Hit a low of about 22 times. Now its at 28 or 29 times much thats not cheap. Emerge being markets are down 11 to 12 times. Emerging markets value stocks which often are Resource Companies or Financial Institutions or the deep value side in emerging markets is trading at four times cash flow. These are really, really low multiples. And can set the stage for double digit returns on a ten year look ahead basis that seems to be a much better play than some of the u. S. Value stocks some of which came back further than any fundamentals would justify. Yeah, no kidding. Lets move on to dicks sporting goods. Reinstating the dividend after temporarily suspending it in april. Shareholders on record as of june 22nd will receive a payout of 31 cents a share on june 30th mike, stock loves it its had a good recovery here. They said the reopening is going better and theyre feeling a little better. The yeah. I think it does point out that a few months ago a lot of companies did rush to suspend the dividends not knowing if they were going to be able to have a time line to getting back to, you know, more of a revenue position, reopening stores and not knowing what the Financing Options were so for those dmpz that needed to, the credit markets have been there. It seems like youll get the suspended dividends pulled back. It doesnt seem like its outright a statement by dicks management that things are great and back to normal they had reductions in pay, should the dividend be a priority its a fascinating topic. I see it in two worlds the mute funld word world, we d like dividend. They give is atax bill we have to turn around and reinvest the money there are some places like the insurance world where they take dividends as income and can record appreciation in stock prices as income where they love the dividend changes the other thing obviously is dividends have been a signal of management confidence. Theyre confident for the next two or three years at least. Thats how theyre taking it today. Lets move on to corporate bonds. Viewed as a steady investment, they surged in value recently offering equity like turns yiel yields collapsed and bonds surged bonds sold by companies, blue chip companies, intel, coke, morgue an stanley, they have all bounced strongly since the stock market lows in march mike, an interesting story to get 40 or so like returns from the corporate bonds. What does it tell you about the environment . I mean on some level, reminiscent of other emergences from recessions. It does happen that way. These are bonds issued before rates collapsed and when the markets were bate unsettled. And now theyve gone up in price so much. People are confident that the companies are going to make good on the investments its unclear how much further youre going to have in terms of price appreciation for corporate bonds. Massive inflows. They said its going to be a buy as well. So it was great just a basis that raises the question of whether the stocks or a microsoft and amazon i mean, theyre almost trading like safe haven bonds of the companies or even of sovereign debt a lot of the popular Growth Stocks are trading at very frothy multiples when amazon announced earnings tend of april, they closed the day at 111 times the trailing 12 month earnings our chief Investment Officer did an example, a discounted cash flow model on amazon he showed that if their sales and profits grow at 20 per year for the coming ten years, meaning, the ten years from now the economic footprint is ten times as large as it is today, that would justify a multiple of about 70 times so a lot of the stocks are wonderful companies. I get my daily amazon delivery at home of whatever i want to buy. Wonderful companies. But at what price . There is a price that any loudy company is a great stock on the bond side, we have to be very careful the runup in bonds has been tremendous. As you said, 40 returns in bonds. Thats what you get in a fabulous stock in a fabulous surge. It is very much an asset where rising prices means lower yields so when you get a great return on bonds, it means lousy future returns. And people should never mistake past returns for future returns. Were in probably the only Major Business in the global Macro Economy where people hate bargains where people want more of whatever is going up the most and less whatever is getting cheap. Thats a mistake we have just about two minutes left in the trading session for the week mike, what are you seeing in the market internals take us to the close the overall market firming up in the last half hour. Kind of getting back to the middle of the days range. Pretty positive on the front well ahead of declining volume 80 . 75 all day. Thats been good yesterday was a really pronounced down side flush, 98 negative volume. So thats bate of a comeback there take a look at the weeks action in the high beta. The most aggressive stocks against low volatility some give back here as you might expect 10 decline in those high beta sectors. Take a look at the volatility index. What is interesting is it is in retreat right now as in the 36 i mentioned yesterday, some systems say if the vix goes down three points or more off a near term peak, thats one input to a buy signal for the market or perhaps a storm is passing. Looks like right now were going to close basically registering that threshold here as the s p 500 goes into certainly losses for the week but up 1. 4 , 1. 3 now. The Dow Jones Industrial average are working on close to a 2 gain for the day there is the close. Welcome back, everyone if youre just joining us to closing bell, im sarah eisen along with mike santoli. Take a look at how we finished up the day and week on wall street things finished higher today the dow up 1. 9 . 477 points at the high of the session. We were up 887 at the high lost all that went negative for a brief period there you can see around 2 00 p. M. And then climbed our way back, strong close compared to where we were. Boeing is the biggest winner in the dow today. Wa walmart the biggest loser it was the worst week for the doij since mar Dow Jones Industrial average since march 20th take a look at how the s p 500 closed up 1. 3 what stood out today was strength in names like real estate, financials and energy. The only two sectors to actually clowe downs close down on the days were utilities and Consumer Staples tech not is not a standout it was for the week. The russell 2,000 up 2. 3 on the day. Played a little bit of catchup got hit the hardest though still looking at a decline for the stock market the s p 500 about 5 coming up, well ask the ceo wyndham resorts how his business is doing and well have the ceo of m t bank to join us. To talk about the market, ariels Research Affiliate with us rob still here and ubss angela manza joins the conversation as well thank you all for joining us mike, ill give it to you first. As always with the summary of what happened today, looked like a lot of dip buying and overall on the week and whether it changes anything it was definitely dip buying. History of more than 5 declines as we got yesterday are that they tend to be, if the market is in an uptrend and decent buying opportunity, that being said, all we regain today is about a third of what was lost yesterday. It seemed as if there was sort a defense of the flat line you see that chart of the s p 500. As soon as it went negative, people did come in there so i would say not decisive. A lot of folks thought when the Early Morning bounce dissipated that it would be kind of the down side break was going to be more pronounced. Looks like okay. The obviously a down week. It does seem as if a little bit of the character of the market changed. It is destabilizing for the bullet proof rally in place before this week all right charlie, are you worried as an investor about the rising case numbers and hospitalization numbers coming from the southwest part of the country, especially texas and arizona yeah this is important. As a percentage of tests, positive tests are actually continuing to decline on a percentage basis the increase in cases is due to more testing overall, were getting a drop in people testing positive. Hospitalizations, the number of people in hospitals continues to go down. There are a couple of places where thats not true, gottlieb called the hot spots houston being probably the worst. Even arizona, the people talk about is being a hotter spot has had basic will i a flat line of hospitalizations weve had a lot more contact between people the protests, memorial day weekend, the disease is not gone the virus is not gone. Were going to have more people getting testing positive but so far in my opinion, the data continues to improve weve got a news alert right now. At t, we have details. At t is looking to sell its Warner Gaming unit which could draw as much as 4 billion this according to sources reported by my colleague at cnbc. Com Electronic Arts and activevision blizzard have taken expressed interest in buying this unit this according to other reports on cnbc. Com and this comes as at t looks to divest assets. They have 200 billion in debt we talked about the pressure to divest the core assets co. Draw 4 billion worth noting here this deal is far from done. And no deal is assured back over to you julia, thank you. Yeah, a little bit of maybe obscured value within that time Warner Acquisition that at t did make lets get back to the markets. I wonder how youre viewing this weeks action in the context of basically the best ever rebound rally we saw over 11 weeks a pullback but how would you integrate that into your market view . Its quite funny. You know, its been an odd week. Its been an odd day i would have anticipated today is a down day. If we put things in context. Yes, were getting sober news if a fed chair. Theyre on the not so rosie outlook on the economy we are seeing concerns over a rise in infections on Coronavirus Infections but if we put night context, if we look at where we were this time last year, the s p 500 was trading probably about 150 to 160 points below where we are today. But unemployment was at 3. 6 and weekly jobless claims were at 1. 7 million compared to where we are here at over 20 million in weekly jobless claims and 13. 3 unemployment rate. So i feel the markets are ahead of themselves and not really reflective of the economic reality. Since when do the market and the investors want to have jay powell be a cheerleader for the economy . Isnt the whole thing that they want stimulus and thats been driving the entire market and so if he promises, you know, low rates for years and more qe, isnt that usually perceived as a positive by investors . I would think so. Weve had so much good news over the past couple of weeks and really talking about a more robust economy it surprised people to have a day of negative news thalt that is something driving the markets. Most investors that we work with take a long term view. And so from their perspective, you know, were looking to see how can we focus on opportunities that are opening up because of the selloff like yesterday and because of the environment that were in . And were seeing a lot of interest and a lot of more focus around the esg space and environmental social and governance and, you know, you look over the past two weeks following the horrific death of george floyd and the s in the esg i think is saying a bigger forefront and so when we start looking at those long term investments, theyre long term and open opportunistic at the same time were looking at investments that say what corporations have a good finger on the pulse of human rights, employee wellbeing, social justice, diverse and inclusion and not just diversity and inclusion from the perspective of heres a nice light in my annual report, but really Corporate Management that is taking a stance to say i want to see representation of color on my board, in my Management Group and i want to see tangible action around agency its interesting to see that the nfl is going to start celebrating june teenth and considering it a holiday we see this as an opportunity to really step into that esg space and invest Going Forward certainly subject of pronounced focus right now in this market. We have seen separately some wild swings in the market. Stocks rallying for the past few weeks. Plunging hard during yesterdays session and closing higher, of course, today. A new note today saying the swings in the marketmean were not seeing a bear or a bull market per se. This is a kangaroo market. Share prices will move in reasonable pace in both directions because the opposing forces of economic damage from the pandemic and multitrillion dollar policy reactions have never been stronger. Rob, as a kind of a historian of cycles and markets, do you find it useful to try to define what regime were in . Is this a bull market . Is it a bear snashgt market or n in between its help follow have a gauge of whether youre in a secular bull or bear market. Or even a cyclical one kangaroo market, thats a very clever turn of a phrase. But you could view the market as always behaving lukee like a ka. Its always a kangaroo market. I do think that stocks have gotten way ahead of themselves relative to the macroeconomy i wrote a peaiece march 17 calld this too shall pass. It wasnt a pollyanna suggestion that this was all going go away effortlessly and we were going to see a snap back rather, it is pointing out that the time to buy is not when the news turns good but in a period of peak fear and my observation on march 17 was were in a period of peak fear this is an interim buying opportunity. There may be more interim buying opportunities in the days ahead. And i stand by that view i think theres a reasonable chance that well see testing of the lows im shocked at how few people are comfortable using the word depression any time you have mid teens unemployment, thats a depression, not a recession. Yeah. Powell pushing back against that idea this week you know, finally charlie, i want to bring up the fact that on a week that market fell 5 , amazon, microsoft, apple, all ended in positive territory. I know youre not the biggest faang fan out there. But you need have some of this in your portfolio as a safety play not at this point i just i remember 2001 where everybody talked about the new economy and the old economy and those of us who didnt own pet. Com and how we were being left behind by the new realities of the world over the next two years value stocks beat the s p 500 by more than 33 these are Great Companies but the faang stocks are overpriced. Thats why the discussion of the s p 500 being overpriced misses the point that is being driven by very few stocks value stocks are still very attractive im going to give you two, Goldman Sachs trading at a 10 to book and viacom everybody hated it at 10 the were at 23 today . Its trading at six times earnings there is going to be an ncaa tournament there will be a masters. Theres going to be a quiet place too. Media is not going away. Its six times earnings. Viacom is still a very attractive stock sticking to your guns on that one. Charlie, thank you rob, good to see you angela, im sorry i butchered your name earlier. Thank you for joining us thank you thank you for having us coming up, banking on mergers. Up next, well ask the ceo of m t bank if he thinks his industry is ready for consolidation and whether his company could be a takeover target its a thirteenhour flight, thats not a weekend trip. Fifteen minutes until we board. Oh yeah, we gotta take off. You downloaded the Td Ameritrade mobile app so you can quickly check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Stocks rallying in a volatile day of trading to day to end what has been a down week on wall street bob pisani has all the details. S p 500 down 4. 8 a very good close to a bad week. There was a lot of Collateral Damage around the cyclical sectors. Take a look at the dow laggards this week. Jp morgan down and caterpillar, exxonmobil, boeing, travelers, remember, you know, flat yield curve doesnt help the insurance stocks either. Travelers down about 9 . Outperformers, only two dow stocks up on the week. That was apple and Microsoft Microsoft just barely. But otherwise, it was lashrgely defensive. Still out with Procter Gamble and johnson johnson. Retail had a tough week. That rally is over this was a favorite to pick out from the retail crowd here l brand, gap, nordstrom, urban o outfitte outfitters down double digits. We closed on the upside. I can say the buy to dip mentality, i think it is stig out there. The very rarely do we get a 6 down day only four of them forrest of this year, 5 down all of them in march you can see and all of them were above that all of these levels right now. So the buy the dip on this would have worked. What happened today . I think its still helped keep the buy the dip alive at least for the next few days. Guys, back to you. Yeah. Quite a year, bob. 65 one day losses, i think 28 in the last 70 years so its been a jumpy one bob, thank you have a good weekend. A rough week for financials. The group one of the biggest sector laggards lower for the week and Regional Banks fell by 11 . Sector has struggled year to date as well down nearly 23 . Joining us now for more is rene jones. Good to see you. Thank you for joining us good to see you, michael. First, lets talk about the business obviously, theres been just pressures from very low bond yields and Interest Rates, naturally concerns about credit losses with the jobless rate going where it has and Small Business pressures how is Business Today relative to where you thought it might be a few months ago you have to think how the economy is affected by covid19. The Service Sector is affected much more than other areas of our portfolio. So when you think of travel, leisure, restaurants, and those types of things, they were hit pretty hard. I think whats important there is the average worker there is below average wage in that space. When you look at those types of areas, theyve been hit a little harder but ppp and a lot of the programs that provide liquidity in addition to forebearance and so forth have really had a very positive Short Term Impact on those companies. I won the governors new york forward reintroduction campaign and essentially as the business has been opening up, were seeing increased payments around debit card use and credit card use. Things are moving back slowly. Youre exposed to the new york area. How much harder do you think youre hit than other Regional Banks, new york, new jersey, connecticut has been hit harder than the rest of the country on the virus. I think a couple things are really important there, sarah. You have to distinguish where the virus had the biggest impact and what the makeup of the economy is in a particular area. So in our area, some areas have actually had a bigger impact like western new york from the shutdown thats the makeup of the economy. Having said that, you know, at m t, were fortunate to be, you know, have low exposure to some of the areas that have been hit hardest. Some Service Areas are a portion of our portfolio we dont have oil and gas. We dont have airlines we dont have a lot of travel and leisure. And so as well we dont have a lot of mall based retail so weve been very fortunate there. Were looking at hospitality and staying close to our health care clients. But on the whole, i think the way were structured and underwritten gives us a lot of confidence that our clients have a fair amount of wherewithal to get through the storm. Certainly m t always, you know, been viewedas a pretty well run prudently run bank as well how you are thinking about industry structure right now, consolidation . Is this the time to think about that with valuations where they are and do you think it would behoove you to become part of a bigger organization at this point . You know, i would say, look, were in the early stages of this crisis. We have more uncertainty than we do unknowns. Thats what youre seeing in the market as we get further into the process towards the end of the year, i think well know more. And well be better positioned but historically, yes. The you know, m t has been healthy, conservative and created opportunities in for us really post down turns. And so i think at this point in time its too early to say st. Ali also want to ask you wha is going on in the country, the continued protests against social injustice i know that you have your own personal story here to tell as an africanamerican ceo. And also can help offer some solutions to what you think Corporate America should be doing right now beyond all of the words of support sure, thank you for asking. So i grew up in a mixed family my father was africanamerican he grew up in virginia he was the youngest of 13 kids and he joined the u. S. Military in 1941. And during the campaign, he met my mother in belgium and they had six kids. And we pretty much cover every spectrum of the rainbow. The army was still segregated until 1948 interestingly enough part of that change of the second gas station came from protests so we grew up. My oldest sister was born in 1946, i was born in 1964 and that time, you know, sort of shapes your perspective on things when i came to m t, i was fortunate to be part of an institution that understand the purpose of the mission and that was to essentially be part of the glue that binds a Community Together we believe that role with the churches and not for profits and the corporations and municipalities working together was the ski key to a healthy community. What is really, really frustrated about the floyd situation and the other events that have happened recently is that its just frustrating because of the pattern just continues. When i think about it, were breaking down the social fabric that sort of binds our communities together i talked about it before my sense is that there is really a lack of compassion a lack of compassion by people involved in the incidents. When it comes down to the social contract, the basic issues of i will not harm my neighbor, right, are really fundamental. And i believe that social contract were watching that social contract get broken really the only way to bring it back is to build relationships and have sustainable change if youre focused on transition and trying to do one more thing. Well, really appreciate you bringing your very unique perspective on that, renee hopefully a lot of urgency being directed at a lot of these issues and well see if some that can bring about the change you talk about rene. Coronavirus cases are spiking in several states. Coming up, well ask the sew of Wyndham Hotels how he is keeping his guests safe. You doing okay . 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. Pretty decent strong finish in a day of trading. Lets go back to mike who is looking at the rush of Companies Issuing stocks and debt. Mike yeah. Sarah, obviously companies being very aggressive in tapping the markets on all the capital markets. This is a chart from jeffries. Will showing equity issuance compared to recent years very little of this is ipo go back to the mid 2010s, more kind of fattened up by a lot of initial Public Offerings this is secondary. Companies shoring up the Balance Sheets trying to pay down debt or get in a better cushion for tough times. Now look at the debt side. So much more dramatic as we all know well over 700 billion were up to about a trillion this is Investment Grade wlachlt whats going on is the markets are saying were going to keep you around Companies Say were happy to have the cash. The question down the road is when things settle down a little bit whether it ends up creating a little more of the sort of inert capital on corporate Balance Sheets or just going to cover the bills as opposed to being invested for growth and certainly its no longer the kind of buyback story where Companies Work a source of cash going into investment portfolios that market was closed basically. And then it was just straight up able to raise money. They made it a rational not to tap the markets basically right exactly. And thats why theyve been coming in it droves. Breaking news right now on hertz. We have the story. Hey, sarah. According to a court filing, bankrupt hertz can sell new stock in public markets. Again this is according to a judge in a court filing. Now shares today, they surged on the unusual plans. You see shares are down 15 . Current shareholders will not get any protection from hertzs planned stock sale and hertzs lawyer says he has no idea if there is going to be a recovery to shareholders of course, the stock has been rallying despite that risk of a bankruptcy you can see in after hours again, shares are down more than 15 . Back to you. All right thank you. I guess, mike, the bankruptcy judge gives the okay to sell what is potentially worthless stock. Well, potentially i mean, look, in theory, any stock can be worthless but right now the fact that this is a bankruptcy process, there is going to be a negotiation with debt holders, in terms of often what happens of course is the bond holders will get new equity in the company and usually either massively dilutes shareholders or wipes them out so that is the question. Youre buying shares in a company you dont know if there is going to be any value in that stock, if its going delisted or overwhelmed by new supply of equity theyll let the market sort it out. I cant tell if its really savvy smart move by hertz to take advantage of this stock move or irresponsible. Because, you know, it could be really disastrous for investors. I mean, i think its savvy. Its opportunistic and it will be a buyer beware situation, i suppose. Yeah. Meantime, movie theaters in california can start reopening today. Consumers returning to the Silver Screen . Julia is in los angeles with a look hi, julia. Movie theater stocks are on a roller coaster amc and sin mark rebounding after plummeting yesterday on concerns about whether or not consumers will return to theaters with new social distancing measures. The some small theaters are beginning to open, the major theater chains are preparing to open in early july before studios release new films again in mid july with Warner Brothers and others opening july 16th with california limiting capacity to 25 in these theaters, the question is whether theaters can be profitable chains have said they need to reach 30 capacity to reach that profitability milestone. Just as theaters start to open in california today, disney is releasing a movie on disney plus this is the first time they put a film intended for Theatrical Release on the streaming platform and universal is launching king of Staten Island for purchase today online today it was scheduled for Theatrical Release next week. The question about the future of theaters, we have seen the major theater chains decline dramatically so far this year. Back to you. Are they going to be able to serve popcorn . Im sure theyll figure out how to serve the popcorn in individually packaged way. They do rely on concessions for a huge percentage of the profits. We can expect things to be prepackaged rather than doled out in the moment. Something theyre trying to figure out they want people to buy things a lot of the concessions can be ordered ahead of time with mobile payment thats the whole experience for me thank you. Hitting the road, up next, we ask the ceo of Wyndham Hotels how his business is doing. Im kent coloma, its my job to make sure all the packages that go out today get delivered. There are people who can only get food from amazon. When you come into work, thats what drives you. My little one, i would say hes definitely proud of me. Every time he sees the blue prime trucks, he says, daddy, theres your people i know every single one of us is here busting as hard as we can go every day to make sure these packages get delivered. Welcome back u. S. Hotel occupancy rates is ticking higher in recent weeks up 39 still down more than 45 this year joining us now to talk about how the industry can stage a rebound, wyndham ceo good to you have here, geoff st wh what can you tell us . Yeah. Str, Smith Travel Research is spot on as you said. And, look, for us, were the Worlds Largest Hotel Franchise company in the economy in the mid scale space. We have 6,300 hotels here if america. That essentially never close 90 of our hotels remained open. We hit the bottom on the second week of april. The week just ended june 6th economy occupancy is well over 50 . And mid scale occupancy for americans, mid scale hotels, in the select search space is over 40 . So demand is coming back people are traveling again how high do they have to go to make money . A big question here is how far back toward precovid19 normal are we going to be able to get two questions there, mike a ways to go and cant tell you when were back to fprecovid19. But our franchise operators are these are small mom and pop Small Business owners are able to break even between 20 and 30 occupancy. And with the numbers sarah just quoted from smith travel, theyre already there. And theyve been immensely helped by all the actions that the brands have been taking that the banks have been helping them with these are owners that have relationships with their local lending institutions and the support that federal government provided. Im curious, 50 occupancy of who is coming to hotels now. Were sort inform a unique situation here in the new york area im still wiping down groceries. Not really planning any big vacation travel plans. So what can you tell us about d demographics and geography what kind of trips are they taking sure. As i said, i remained open in our case, its the every day traveler and we remained open at that 25, 30 occupancy with the front line workers, with the emergency workers, with the construction workers that have had to be out there and travel to get that from 30 to 50 , were starting to see Leisure Travel return. Were in the states that are open and to your point and the city youre in were not all open yet, across our system, were already in the economy space people want to get out of the house. People want to see family and friends. And people that want to get to a beach to some place near a national park, any outdoor amenity. It is coming back. Its coming back slowly. Its going to be a long road back but it is Leisure Travel drive to travel that is returning to these hotels. Given that your hotels are independently operated, is there a standard across your brands in terms of protocols for sanitation what are you doing if anything to sort of get the word out to customers to try to persuade them that its safe . Thats so important all the brands interest, the market we have been working alongside the American Hotel association and chip rogers and his team doing a phenomenal job with their Safe Stay Initiative and marketing on behalf of the industry no one brand should own safety its the most important its the most important brand standard that all of the brands inspect for. So were certainly supporting the industry efforts and each brand as we are getting the word out through all of our Digital Marketing that these hotels that have remained open, serving the front line leaders that felt safe, that its it is safe to travel given all of the new cleaning protocols, all the social distancing, all the new brand standards using hospital grade disinfectants that are really very visible for the moment you check in throughout your stay. The guests are feeling it. Its okay to begin to drive to and vacation again geoff, i believe most of the franchisees did take advantage of the ppp program to get relief from the federal government. Did those loans go far enough to bridge them to a recovery . To recovery the ppp loans were very important bridge providing immediate liquidity. And really hope for our nations Small Business owners. The what was passed in the congress and in senate with the ppp flexibility act was immense. And whats being proposed and talked about right now is also very important the bill were most advocating for now has bipartisan support it is Senate Bennett and youngs bill to jumpstart the hardest hit. But ppp was a real lifesaver the American Hotel and lobbying Association Found that 95 of them applied for either a ppp or an Economic Injury Development Disaster loan and that 80 of those, 95 that applied received one of the two so very important. There is still 135 billion left in the ppp fund. Were finding an administration and a congress thats listening to the industry and working with the hnla and the asianAmerican Hotel Owners Association to provide the Small Business owners with the support they need to weather the storm. It is going to be a long road back to mikes question. We appreciate the update, geoff. Thank you for joining us tonight. Thank you for having us on. The. Geoff ballotti, orange county, california, no longer requiring residents to wear masks in public. Coming up, well ask dr. Scott gottlieb whether the country is relaxing restriction its too quickly amid a spike in Coronavirus Infections incomparable design makes it beautiful. State of the Art Technology makes it brilliant. The lexus nx experience the crossover in its most visionary form. Experience amazing at your lexus dealer. Time now to get a cnbc update with Courtney Reagan. Courtney hi. Good afternoon, sarah. Here is your cnbc update at this hour some key republican lawmakers say theyll block most of the ambitious Police Reforms democrats are seeking. Instead, they plan to approve a limited set of Police Accountability measures. The Dallas Police department has been temporarily banned from using tear gas and other less lethal weapons the federal judge issued a three month ban after two demonstrators injured during recent protests sued the city. The cdc says the u. S. May have to go back to strict social distancing restrictions like the ones in march if Coronavirus Infections go up dramatically. Go to cnbc. Com for more on the story and a poll on americans view of Current Health restrictions and Major League Baseball has sent a new salary offer to players according to the Associated Press the league reportedly offering players 80 of the pro rated salaries and a 72game regular season starting july 14th. The Players Association has reportedly proposed an 89game season with no decrease in their per game pay mike, youre probably happy to see them play ball again. I would take either one at this point lets hope they sort it out. Thats 80 or 90 games well never get back appreciate it. Up next, another round of lockdowns. Utwnes weighing in on reimposing shdo measures. Well discuss with dr. Scott gottlieb after this. You cant predict the future. But a resilient business can be ready for it. A Digital Foundation from vmware helps you redefine whats possible. Now. From the hospital shifting to remote patient care in just 48 hours. To the university moving hundreds of apps quickly to the cloud. Or the City Government Going Digital to keep Critical Services running. You are creating the future on the fly. And we are helping you do it. Vmware. Realize whats possible. The cdc reiterating the importance of social distancing and hand washing recommendations today, warning that if cases go up dramatically, more mitigation efforts like what were implemented back in march may be needed again joining us now is dr. Scott gottlieb, the former fda commissioner and cnbc contributor, sits on the boards of pfizer and ilumina for his friday afternoon update. The dr. Gottlieb, how much worse is this been pan demdemic getti . Give it to us straight as to what is happening in the overall country right now . I think were seeing pervasive infection across the country. Were averaging about 20,000 infections a day which is probably more like 150,000 to 200,000 new infections a day were diagnosing one in ten infections i dont think it will get a lot worse but not a lot better much what youre going to see is a rotating series of outbreaks in different cities. Hopefully the cities take aggressive measures to contain the outbreaks. Texas and houston now has an outbreak under way phoenix, there is an outbreak under way in arizona there is an joit break under way in South Carolina. Other states you see rising cases. Not entirely unexpected. I think what the states need to do is do good track and trace work to isolate the sources of the outbreak and try to take some limited measures to contain them so if its certain settings, certain communities, certain activities, there is a source of a lot of the spread, they need to intervene strategically to contain the outbreaks. I want to ask you about a headline i saw today were continuing on this reopening theme to talk about the return of air travel in this country. The first time weve seen the numbers since the beginning of the pandemic would you get on an airplane right now . Is it safe i think you can protect yourself on an airplane. Ive been giving some advice to the airlines about what they can do to protect passengers i think if you take precautions on the airplane itself, you wear a mask, high quality mask, you dont take things from the flight attendant, youre mindful of, you know, using good hand hygiene, clean your immediate area around your seat, i think can you reduce your risk be the last to board so try not to get in a crowded situation. The risk on traveling isnt necessarily sitting in your seat on the airline its coming and going. Its getting in a crowded situation as you board so try to avoid those kinds of jams and you can reduce your risk remember, youre generally facing forward on an airplane. Respiratory droplets are landing on the seat in front of you. There is note wide dispersion on an airplane. Would i fly . I would fly if i had to fly. I wouldnt be flying recreationally right now if i had to fly for business or had a purpose recreationally right now if i had to fly for business, id be comfortable flying but id be taking a lot of personal precautions as well. I want to get your thought on the scrutiny being done among the finance types looking at data in phoenix and houston and saying oneoff factors whether it be people returning from mexico or theres a few meat packing plants in one area and trying to essentially say theres not sort of organic fresh outbreak or intensity of covid. Is that valid or should we be concerned by the raw numbers if you look at these situations in particular states, there are reasons why you have outbreaks. That said, epidemics get started because there are reasons why you have outbreaks its a spark that lights a flame that burns into a large fire that spark can be a meat packing plant, it can be people returning from mexico. It could be a nursing home so theres a focus for the initial infection. Its up to the state to get it under control. In arizona in particular, the local counties are doing the Contact Tracing. The state may need to take that over and provide more aggressive oversight. There are local factors in all these states causing the outbreaks, but the outbreaks could lead to larger spread. I dont see that happening we have much better tools. We have much more widespread testing in place states do have the capacity to keep these outbreaks contained with regard to the hot spots that were talking about, are those that get sick and hospitalized likely to fare better than those in new york because of time and less son le more Treatment Options new treatment option remdesivir will help youre likely to see the same rate of hospitalizations but less severe courses in the hospital you dont intubate patients as dpr aggressively you hydrate them more. Anticoagulation has been a big innovation a lot of these patients were decompensating in the hospital because of big blood clots this disease seems to make platelets sticky and cause blood clots. Weve learned that theres been innovations in care i think were going to do a much better job of preserving life as long as Health Care Systems dont become overwhelmed if we have a true second wave in the fall and another big epidemic, thats going to tax the system. Good to talk to you up next, the art of scoring some cash. Companies around the globe find ways to make ends meet amid coronavirus concerns but British Airways is pulling out all the stops with its latest method of making cash 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. And their financial wellbeing. Since our beginning, our business has been people. Its evident in good times, with decisions focused on the longterm. And crucial when circumstances become difficult. That continued emphasis on people our advisors, associates, clients and communities gives us purpose, strength and a way forward. Today. And always. Up next, one surprisingfoo winner of the shutdown plus, British Airways lloupus t all the stops to raise cash. Right now is a time for action. Thats why usaa is giving Payment Relief options to eligible members so they can pay for things like groceries before they worry about their insurance or credit card bills. Discover all the ways were helping members today. Yeah yyeah yeah hey, hey companies have scrambled to weather the financial storm. You could auction off your multiple dollar Art Collection thats what British Airways is trying to do the airline has a large Art Collection, much of which sits in its airport lounges the company is reportedly using so sothebys for the auction. British airways has said it wouldnt rule anything out i wanted to mention we got some new nielson data on friday about the changes in food prices while the rest of the clothe in consumer packaged goods starts to return to normal, sales not growing as sharply as last week. Oat milk is still surging in popularity up 225 last week versus the same time last year. Thats been a Common Thread across all of the nielson data Hand Sanitizer and oat milk. People are slamming me on twitter for saying i dont understand it. Fast money begins right now. And Courtney Reagan in tonight for melissa lee. Brian kelly, jeff mills and mike ko beware of the bounce why investors need to be laser focused on this key level. Plus, Airline Stocks taking flight today one of our traders says buckle up, theres more turbulence ahead