Trying to bounce back after all of the major indices in the green. The dow struggling most of all just popped into positive territory moments ago. The s p trying to stay above morgan thats right i will note that were on pace for gains for the week including the nasdaq that is currently poised for a 4. 8 gain they pointed out this morning that the Broader Market it means this critical juncture right now and that given the big swings in both directions that we have seen in the s p and the Broader Market in the past two weeks leaves us right at the same level that we were at two weeks ago. There istechnical levels to keep an eye on early june highs, whether or not we break above that or on the flip side, the 200 day moving average, but i think the bottom line is that there continues to be a lot of uncertainty and a lot of headlines driving Investor Sentiment right now in terms of the marks, the tech piece of the markets, the nasdaq continuing a fourday win streak right now. Joining us is mark may great to have you on, good to see you. Good to see you on, thanks for having me. I want to get your thought on where we are in the market rice now especially where deck and big software and internet names are today. What do you think of the valuations here. We have seen seen it move up as well. Were now looking for the broader tech sector, for multiples at or near the high end of the recent historical range. The one thing to point out is that a lot of the analysts have revised their estimates down and what we have seen especially in q 1 earning season and some of the commentary more recently is it looks like while the tech company is performing better they might look a like the high end b with investors expect there to be upside to the recently revised down forecast so multiples are getting up there, but probably a bit lower than what they looked like on paper. It is interesting to hear you say that it sounds like you think, or at least from an investor standpoint that there is a thought out there that analysts have overshot to the undownside, but when we have some Tech Companies come on and say they have seen a major arrest in terms of digitization. Yeah, i think we saw data about how sustainable the lift has been, right . How many customer thats have done pick up in store, order online or pick up in store you are hearing comments about people and more workers. People working from home designing the impact and some of the companies, and we are starting to hear some of the signs. The online businesses that they are seeing in the last it is more than previously expected how much do you think they have good data, what do you think opening is Tech Companies and e commerce companies, however you want to slice it i imagine that people are going to physical retail and resuming more of their normal activities. Perhaps we see omni present action or can we get a sense earlier . I think people are doing survey work right now and there are always challenges. I think we need to see the numbers and the numbers will depend on when people start to really go back out in force. I think the second half of the year will be quite telling i think e commerce has benefitted for our investment banging clients, private capital, and even ipo clients that were working with today, a lot of them have been pretty conservative in their forecasting here like consistent with what i mentioned earlier about how some Research Analysts managed their forecasts for the Public Companies and a lot of private companies have been pretty con servetive as well not assuming the recent bump that many of them have seen is sustainable. And you know everyone is forecasting it to be pretty nomin nominal. I think the real question is more the magnitude, but so, mark, tell me about what you expect to happen to the 5g transition which, should really begin in earnest at the end of this year. Considering what we have been through so far the fact that we will still be dealing with the hopefully waning days of a pandemic. Is that going to act as an accelerant or is it going to inhibit the adoption of 5g and push it into 2021 when it comes to the clients that were working with, theyre not assuming that it is part of their business i give it to the potential drivers to fraskt for torecast t 12 to 18 months, were working on the assumption that it is not part of this i think that 5 g falls into that as well. The market is also trying to figure out and jumping to conclusions about the winner take most for the technology the existing trends get pushed in the same direction. Does that limit the dynamism on the start up front or the prospects for for the smaller upstarts i think it is a case by case basis. The companies and the auto vertical public went public recently and they are competing with the large existing public company. And that instance, they did not this it was vertical on vertical they also talked about regulating tech. So this gives those who are Funding Company thats compete with these large, you know, companies, more confidence in putting money to work. You know given that they may be strapped to compete as aggressively as they have in the past they may not recognize investment, but were not seeing any slow down as it relates to venture Tech Companies and i think a lot of it is due to ko vid having a tail wind for a lot of different deck tors i think it is a winner take most dynamic that has always been a challenge. Im not saying that goes away but were not seeing the impact of that from a start up side of things yeah, i mean whether or not it is from the start up or the bc side of things, it seems leek the svalve has been reopened. I want to know what you think about the valuations and what capital flows are looking like. Sure, we have a number of private capital race transactions in the market right now. And because there have been a number of private companies that have benefitted from what has been happening in the last three months, there are actually a lot of really good deals out there it is a barbell of deal thats are available to private equity and venture companies. There are a lot of good deals and there is a number of company thats have benefitted dramatically i would say that Home Delivery is one of those along with digital entertainment. If you fall in the middle, if youre a Good Business that is growing 30 or 40 and have a good product, it is kind of hard to stand out in the market at the same Time Companies that are doing incredibly well, there is a lot of competition fr those deals. Were seeing an interesting market there is strong multiples if youre a company, it is challenging to stand out great to get your thoughts today, thanks for coming thanks for having me. When we come back, the tech controversy of the year, if not the month. The creaty of ruby on rails. Cofounder of basecamp. He is taking a fight against appleand the app store he is going to explain why he says that apple is operating like gangsters. Yyeah yeah hey, hey yeah iredefined the wordng thschool this year. Its why, at xfinity, were committed to helping kids keep learning through the summer. And help College Students studying at home stay connected through our university program. Were providing affordable Internet Access to low income families through our internet essentials program. And this summer, xfinity is creating a Virtual Summer camp for kids at home all on xfinity x1. Were committed to helping all families stay connected. Learn more at xfinity. Com education. Welcome back creator of ruby on rails cofounder of basecamp. Developer of a new email app, h hey. Hey does not have an inapp Subscription Service theyre trying to get hanson and his team to give him some money. It is a debate that set twitter ablaze got the tech world talking about it david, thank you for being with us good morning so i have either covered apple closely. We reached out, we got a statement to them about this, but it doesnt make sense to me, david, mostly because theyre not being consistent if you want to political this with consumer apps versus business apps. If you want to talk about it as payment from win i dont understand the argument here what do you think should happen i think they should allow application makes the choice to act out. Credit card processing is 21. 8 or 22 were being asked to pay 22 more to process the payments and we chose to say no, were not interested in that we have another product for years that follows the same model. That is outside of the app store. There is dozens of our developers they said we dont care where your subscriptions are made, we want a 30 cut they say we cannot, we Just Launched a service that competes with apple air and their service, it is like were invisible and they control the sole access. There is no other way to get software on to the iphone except through the app store. If we dont have a choice of going somewhere else, they can just twist and we are forced to submit when youre using your monopoly in one area to give businesses something they cant refuse. And were saying were refusing, this is not fair just to set the sage a little bit, this is an inconvenient time at best for apple given they have their big developer conference in a few days also they are being looked at in europe for App Store Policies and unfair competition violat n violatio violations the strongest content from apple is this, if youre a retailer in the physical world and people are coming to you to shop you get a cut of the commerce that comes to your store. You end up paying for that now i will allow that they dont seem to be consistent because i can get outlook on my phone, the outlook app without microsoft having to pay apple. But does that make sense if you may something, even if it is not a 30 cut . No, apple is not bringing us any customers. We knew we could not allow apple to bring us customers. It has long been the established process. If you want apple to send you business, okay, fine, they take a cut. If you bring your own business we dont rely on apple for any of that. As long as they dont sign up for subscriptions, youre fine its not like taking a cut its saying if you make clothes, were the only place in town, not only town, in the world that you can sell this to, so were going to take a cut of all of the clothes sold in the world. That is where apple sits right now. They are part of a monopoly with goog whele where if you want tol or make software you have to be on the mobile app stores that is just preposterous. Apple could say look at our market share, in terms of units, were nowhere near a monopoly. In fact android has more they built it in such a way that most of the paying customers in the eco system are using an iphone dont penalize us for being better what do you say to that . I say its not your fault that its your responsibility. This is why we have antitrust in the first place. I dont agree that this is the worst possible time. Theyre facing scrutiny here in europe they complained about this issue before it was a problem for us i was speaking out as an industry observer that heard from other developers, and now theyre fating retaliation and now im under the same thumb apple is being investigated from the Congressional Sub Committee on antitrust and from the d. O. J. I spoke with them just a month ago about this issue just a month ago. They dont fear the europeans, congress, they dont fear the department of justice. If all of those three, what are they afraid of this is nonsense this is morgan. What are the next steps for you and for the app . It doesnt sound like you will agree to this pay structure to what happens if apple pulls it and are you now going to engage legally or in conversations with regulators about the situation i was already in conversations with regulators. The staff of the Sub Committee yesterday, im speaking with the department of justice later today. I have spoke with other Major Companies like spotify were not going to sit down and just take this this is what apple banks on. They have very good reason to do so theyused to say if you run to the press and trash us, it never helps. If you complain we will squash you and they have an immense power that they can make the biggest countries in the world scared they will be held or yanked from the apple store. Apple is going to think better of this hopefully. That they dont need to shake down Small Software makers we spent millions of dollars, for two years, developing this application. Now were celebrating our great launch as happened here you dont need to shake down Small Software makers. And you are a rare voice, a track record developing fundamental technologies so you can afford to express, perhaps, what many other developers might feel but dont feel free to do we will see how they feel on the record lets get a check on where we stand, the market has firmed up. The s p 500 just virtually flat, up a third of a percent. Dont go anywhere, were back in two minutes. upbeat music we did it crowd cheering [narrator] wherever you start, snhu is where you can finish. crowd clapping crowd cheering here we go. [narrator] and its it. [group] yay [narrator] you did it, high five Southern New Hampshire university. [man] that gets a hug. laughing look at that masters degree, i did it i did this for my children. I am very proud of myself. [narrator] finish your degree at snhu. Edu. The cruise line stocks are lower today after posting a loss carnival was down as much as 6 at the open the Worlds Largest cruise line saying they expect to further enhance Liquidity Position they refinance scheduled Debt Securities unclear whether or not it will go back to the debt market to raise capital. Hotels and airlines are starting to see a uptick in activity, the cruise line came to a halt and the cdc said we dont have enough information at this time. Norwegian cruise line suspended cruises through the end of september. Without the green light carnival and royal carpine will likely have to do the same and miss e miss o out on the summer peek season. According to the track is the sixth most followed stock. Yeah, it is incredible the run that we have seen despite all of the ncertainty. Thank you for joining us it is time now for a news update and for that we will turn back to sue herera President Trump is calling rulings in the Supreme Court horrible, and Chuck Schumer said he cried tears of joy. The decision is amazing im so happy these kids, their families, i feel for them. I think all of america does. The brush fire in Southern Arizona has engulfed more than 1,000 acres and was just 5 contained as of wednesday night making it the largest wild fire right now in the United States several communities have been evacuated. And face masks will be mandatory for all visitors over the age of 11. And they will not be opening the elevator, so be forewarned squawk alley returns in just a minute is a lengthier recession ahead because more people are working from home . We look at our america at home series steve . John, thank you, yes, when you have idle productive capacity, that can lengthing recessio recessions part of the thinking tharnd is that it could potentially idol a lot of capacity out there in the economy and that as the economy adjusts could lengthen it 28 of americans according to our Research Survey are working from home due to the coronavirus. Some 40 want to continue working at least partly from home or theyre unsure about if they want to return. 39 thought about moving out of the city to a less dense location first you have idled office and retail space then you have debt troubles that comes from less use of that state. Third potential reduction in government revenues from tolls you can see the very beginning of a problem here. Now all of this, a lot of this will be temporary. It is a massive increase to nearly 7 for security delinquencies. Here is some that you can puddle out here you probablily is a deline in new construction you will have some reduction in rent you also will have lower Interest Rates a possible need for more space for social distancing, at least for a time, and then the big question are workers more productive, gains to the overall economy if theyre not commuting. That is a question that needs to be asked, morgan, as to whether or not we have cagains on the back all of the surveys show that wealthier americans have more opportunity to work from home. There is a potential increase in equality here. That is fascinating and i have to think there is ripple effects here it is well when we talk about shifts including things like public transportation. And Retail Investors are heavily involved in that market, too Steve Leishman if i could add one more thing, real quick, a road requires x numbers of dollars to maintain it doesnt really change that if fewer people use it. At some point the operating leverage becomes not economic for the owner, the company, or a government steve, thank you for breaking it down for us the next guests stock is higher on the year. So, which company is it . Stay tuned you will find out when the ceo joins us, next, after the break. So im gonna hold on promoting you this quarter. Cool . Drop the taco. Get in the car. Does this sentra feel like a compromise to you . Wait, what. . The handling is good, right . No compromise there. Nope watch this. Umm. Bbrie. Brie brie rear automatic braking. So if this Nissan Sentra isnt gonna compromise, why should you . Youre right atta girl. The allnew Nissan Sentra. With more standard safety features than any other car in its class. Welcome back to squawk alley. Eagle lab is on Corporate Responsibility magazines list of best Corporate Citizens Company ranked as i mentioned within the top ten the second consecutive year. Douglas baker joins us now thanks for being with us today i want to get to the esg conversation absolutely. I want to start with the fact that eagle lab is the biggest behind the scenes company, not just here in the just, but around the world right now that perhaps the public isnt aware of we see reopening and how it is starting to kick in and how it is evolving we are really dealing with industry and the touch and the extraction, food retailer, gross ri, and we see a lot and we have a an Important Role to play for a number of customers. We have some customers that never had higher demand. Like grocery stores, data centered, food and beverage manufacturers, Life Sciences health care. On the flip side we have cruise line and restaurant customers. They never dealt with more challenging economic situations. So our job is to help all of them where ever they are in terms of reopening were doing a lot right now in terms of helping our hotel and restaurants in particular. Prepare and reopen through the cycle. Its not always that straightforward. They have to get their team back and get retrained. They have to heighten their sanitation standards they want the public to be aware of the steps they taking soft we are doing a lot of that work we help them House Health Care workers at the height of the pandemic so we continue to step up in interesting ways i know just earlier this week you developed an announced this eco Lab Science Certified program as well. Which businesses that work with you can basically use to display and communicate with consumers about the level of sanitation and protocol going into this in terms of where youre seeing the greatest demand right now and i guess more of that how much of these types of protocols are now becoming permanent how do you see it . I think we have reawoken to the fact thatcleanliness matters. So we have announced our Science Certified Program which is really taking our 90 years of experience that includes restaurants, hotels, and the other industries but clean rooms, health care, hospitals, acute care were taking this know how and were reimagining and reapplying a lot of this technology in the hotel and the hospitality and restaurant industries. So this is not only heightened standards, it is custom training marked by field verification visits, but makes sure that standards are being continued. Many already perform at this level. And it is important that people are performing at this level it is just going out right now and being met with open arms i think that the timeliness is right we worked har to make sure we got this right and the launch has been important youre in minnesota, krecorr . And youre on the board at target yeah, both are correct. I im in st. Paul, minnesota right now. I know youre working on diver diverse conditions you said you made progress on diversity, but it has not been enough how are you benchmarking what enough is . I know that different people and Different Companies probably have different goals it is absolutely internal we have been working on diversity and inclusion for years and we made progress but were nowhere where we should be that doesnt mean that we should not double down, which we will and i think there has been a real wake up call. I think will also say there is a secondary wake up call here also we benchmark against industry, population groups, and against a whole other norm set which i dont think sets us apart. But i think what has to happen now is business vs. To recognize that we cannot create the dni culture that we want internally if we dont start addressing them so saying youre not racist is not going to get the job done. We have a stham is driving in a bad result, and being neutral is helping to drive that result i believe not only inside, but also externally. The Minneapolis Community is working to come together to keep our priorities one is Police Reform the Business Community here is weighing in, something that we have never weared in before, and were making sure that we start driving fairness and general justice as well as fairness and opportunity access thank you for joining us today. Coming up, the ceo of good rx joins us, next stay with us a grandfather of 14. A newlywed. A guy who just got into college. Thats why behind these masks, Johnson Johnson scientists are working to accelerate development of a covid19 vaccine, drawing on decades of experience responding to Public Health emergencies like ebola and hiv. For the life behind every mask, the clock never stops and neither do we. 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. Take a look at a out performer. Shares of spotify going up announcing new deals with podcasts and also Kim Kardashian west dongonyer lbeight back. 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 GovernmentGoing 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. Cool . Drop the taco. Get in the car. Does this sentra feel like a compromise to you . Wait, what. . The handling is good, right . No compromise there. Nope watch this. Umm. Bbrie. Brie brie rear automatic braking. So if this Nissan Sentra isnt gonna compromise, why should you . Youre right atta girl. The allnew Nissan Sentra. With more standard safety features than any other car in its class. Welcome back the dow and s p have dipped back into negative territory. The nasdaq is holding on to some gains. And telemedicine good rx coming in at number 20 on cnbcs annual disrupter number 50 list and Julia Boorstin joins us with the ceo. Julia . The ceo and cofounder ofgoo rx thank you for joining us today a lot of growth in your business tell us specifically how has the coronavirus pandemic impacted what youre doing in your Customer Base . It has been a tremendously impactful thing i think for all americans obviously and one of the fortunate things that we had put into place prior to the coronavirus epidemic was we launched an entire telehealth solution so you can get the care you need from your home without going out to the doctor. One of the Biggest Challenges were having across this entire epidemic is access again, were very proud that we acquired a Company Called hey doctor and so consumers can get doctor visits as low as 20 for a whole number of services and then in addition we have launched the wonderful marketplace with some of whom are fellow cnbc disrupters and its safe and easy and affordable we are to fill in the gaps that the epidemic has created and you also in the middle of covid at the beginning of march launched a marketplace for lab tests. What kind of pickup have you seen there and how much of the demand there is actually for tests for covid versus tests for other things sure. So we have a wide variety of services in our marketplace and were constantly adding new ones by the way, a funny story, it was inspired by the interview i had with jim cramer about a year ago, how come i cant compare prices on lab tests and medical and we said thats a good idea we need to do that here we are with the incredible Robust Service when it comes to labs, people are interested in covid assessments and we have the basic elements of medical care, whether they be, you know, basic blood tests or std tests so its really kind of a reflection of what you would have seen. But its moved online and many of the tests can be completed at home now too so its just incredibly easy and im really excited about the future of telehealth and we want to make sure that the consumers can get there and find an affordable solution. Hi, good morning, its jon fortt. I have used good rx before it seems like magic or like cheating you know, you kind of hand over your phone and get a scan and then a discount. How does it work and does it scale . How many different areas can you disrupt with whatever the secret sauce is that allows you to do what you do . Sure. So we started good rx about sorry, about a decade ago. At first we were really focused on trying to help you save o generic drugs. Thats where the crazy price insanity is. A drug that should cost 5 costs 500 and we have expanded into brand drugs and the telemedicine as well. We work with drug manufacturers, work with Insurance Companies and we work with pharmacies to make sure that consumers can get a fair price its just amazing to think that in health care there was no way to compare prices. Like you could on tvs or plane tickets or anything else so really with good rx, you type in the name of the drug, we show you the price and all of the various discounts available at pharmacies near you. Then if its a coupon on good rx, show it at the pharmacy. We show medicare copays and our sole goal is to get you an affordable price at the best way possible. Yeah. Doug, it does seem like if there was one word to sum up what the company is driving at its transparency. Im curious, now it seems you make money from advertising or working with pharmacy benefit managers as well are you profitable and do you have plans to go public . We are profitable company, we have been profitable for some time you know, my whole focus ill be honest is helping americans especially now right, im so proud of the fact that we saved americans 20 billion, 5 billion since which last talk back in 2019 were helping 17 million americans per month. And so im very pleased with that i dont have any comment in terms of what were doing financially because my sole focus right now is really on trying to help as Many Americans as possible especially now. Doug, im curious when you look at your future, youre competing potentially with amazon more and more you want to make sure you can continue these deals with the pharmacies whats the biggest threat or competitor as you look to grow and what are other verticals that you can expand into sure. So as i mentioned before weve expanded into the verticals. Prescriptions is about 10 of the market and so were trying to get into the other 90 with the labs and test marketplace and with the medical marketplace that we talked about in terms of competition, honestly when i think of competition i think of americans who dont know that this exists. So many people i talk to, yeah, thats great for uninsured americans but i have insurance i dont need this when the reality is that Everybody Needs these tools. Insurance is not paying for what it used to pay for in the past and americans need to be active Health Care Consumers. So my competition is just americans who think the old way of doing things is right i mean, i think the ultimate thing that i would say would impact or business is if we became a Single Payer Health care system and i would hang up my hat if we figured it out in the country. Sadly i dont think were close to that at that time and you have to be about active Health Care Consumer until them. Among the many reform proposals thats discussed is some kind of transparency and clarity around drug pricing, around all of the rebates, and this this opaque confusing system that consumers have to deal with . We support anything that gets consumers even more information is a net positive because ultimately it gives the consumers the health care they need i think threequarters of americans are now simply just not going to the doctor or changing their health care behaviors because they think they cant afford it as a part of the epidemic and some of the layoffs that have come so were all about transparency. We support any Government Action or of course our own actions here to try to get more information into the hands of consumers so they can get, again, convenient and Affordable Health care. Doug, as we talk a lot about racial inequalities in america, and what needs to change, what is changing, as you look to the other end of this crisis, can health care change can it be more equitable you know, one of the incredible things that i have learned over the last few months is that racism is really a Health Care Crisis in many ways. The disparities between the care and the outcomes for white americans versus people of color is awful and honestly embarrassing theres no reason for basic things, whether its diabetes or high Blood Pressure where africanamericans have it worse and the number of deaths is far times higher like from covid so the perfect synergy with what im trying to accomplish i want to make Health Care Affordable to all. Not only are we doing our core business but doing a number of philanthropic things, some of which well announce shortly to say, look, well do anything it takes to make sure that minority communities have access to the health care they need. They cant get the care they need all right thank you, doug. Thank you also Julia Boorstin. With the dow and the s p now dipping into negative territory, nasdaq holding on to gains by its fingernails. We go to scott wapner and the half. John, thank you welcome to the halftime report. The state of stocks and the virus is still spiking in key states we debate the markets with our Investment Committee joining me is josh brown, megan shue from the Wilmington Trust and michael farr is the ceo of farr, miller and washington. Good to have everybody with us lets begin with a check on the markets. Mi