Transcripts For CNBC Squawk Box 20240712

Dow indicated up by about 200 points, s p up by about 20 and nasdaq up by about 59. The dow closed above 26,000. S p was actually up about two points ant the nasdaq up about 32 treasury yields about where weve been 10year around 0. 7 . This morning, it is at 0. 715 overnight, twitter adding a warning to a post by President Trump. The tweet is a video of two toddlers running down the side walk that had been altered that said racist baby probably a trump voter. Twitter tagging that as manipulated media with a link that the original was cnbc story about a friendship between two toddlers the continued battle between social media and some of the social Media Companies and President Trump. Facebook removing Trump Campaign ads that used a banned hate group symbol to identify context. It issued a red triangle symbol used by nazis. The campaign used that symbol as it denounced antifa, a group of protesters the president has blamed for vandalism during the protests a lot of back and forth in terms of free speech, censorship facebook getting it from both sides. They are not doing enough and Trump Supporters think they are doing too much and getting it from advertisers too who are boycotting for other reasons that they are unhappy. Difficult place to be. We had that interview yesterday with the head of the Antidefamation League this comes on the heels of that effort as well there is a lot of things going on that do make the business story. Those advertisers and how much pressure will be applied in the next coming months beijing reporting 25 new cases of the coronavirus once again, tied to a wholesale food market. We think they are getting it from people but here we are with the wholesale food market again. You think in all of beijing, it is a small number. Thats the way these things start. Publishing the genome data submitted to the w. H. O you can theoretically figure out origin but i dont know if we know exactly how this happened is there salmon in the market . European strain of the genome in the wholesale food market. It is hard to make the case even the idea that it would stay on packaging for weeks as it shipped overseas is ridiculous what dr. Gottlieb has talked about is look, maybe there are conditions that are not right in these markets in terms of sanitation and safety and maybe there are practices that arent great. You are right, it may be Something Like they are saying this came from europe but it originated from china, spread to europe and now it has come back. Constantly going between europe and china, china and europe why wouldnt it be likely that it was a person. That doesnt make it anymore comforting to think about it people can spread it pretty well too. Instead of fish. In trade news, a report that china plans to accelerate purchases of u. S. Farm goods to meet the requirements of that trade deal some people are talking about an easing of sign of u. S. Tensions as a reason for the market being up again following discussion between top diplomats from the u. S. In hawaii china agrees to buy soy to corn and even ethenol chinas two biggest e commerce giants handled 136 billion on the 618 holiday alibaba racked up more than 98 billion. Also the creator of another big shopping holiday called singles day. Governments hoping up. Made me think of this. You dont get papers anymore, do you . No. The New York Post decided with all the things going on im not saying they are totally wrong but, we are coming up to where we can all finally get our hair done, fixed or whatever on monday it says time to cut loose. Sorkin, i dont know if you are being honest about cutting your own hair youve never looked better becky, is somebody coming in okay. You are doing it yourself im doing it myself i bought a new flattening iron, curling iron and hair drier. Do you get up at 1 00 a. M 3 45 to commute to my basement for all you doubters, there would belong stretches of gray roots if this was died if you had hair if i had hair and this was not a too pay, there would belong stretches of gray in here. My are hair salon is opening up on monday the one im opening. You are going to be i could see that now that i know how to do it, im opening up shop. You can come up here and get im offering a discount. Squawk discount. Ive got visions of johnny depp remember edward skcissor hands im talking a major u. S. Newspaper thought this was the headline today coming up, covid cases surging in some states governors are taking new action to halt the spread well get an update from dr. Scott gottlieb hes looking high and tight this week u. S. Equity futures have accelerated with sort of the friday frifality, i guess. 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. Talk to your financial professional or consultant there are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Welcome back arizona, california, florida, oklahoma, South Carolina and texas all reporting record high singleday increases of coronavirus. Arizona reported a spike in cases of icu beds. The governor announced a new policy that will allow local officials to require people to wear masks in Public California reported new cases with more than half coming from Los Angeles County govern governor newsome made an order to require masks florida tally of 3,200 more higher than the weakerlier new york governor is considering travel ban on travelers arriving from places like florida florida imposed a quarantine from new york travelers in march. Even rhode island didnt want to see travelers going through either so take that. Late yesterday, we should tell you nevada regulators said they would require gamblers to wear masks at gaming tables that dont have partitions and will require signage saying masks are available. In clark county where vegas is located. President trump weighing in on masks in an interview saying his problem with masks is that many people figit with them which increases the odds of infection. President said he thinks some americans are wearing these as a way to signal disapproval of him as a political statement my n95 has all kinds of stuff on the inside of it now. Stuff what do you mean it starts fraying but there is threads lots of threads. When i have it on, i do figit. The minute i get out i get it off quick. There is a lot of fidgiting with me with this thing it is probably not supposed to last that long are you still cooking it in the oven i gave up on that put it in the window in the uv light i think i sent it to you, a picture of time square with all the covid, i no longer think the outside world looked like that for a while, i was thinking it was everywhere i was putting it in the oven, i stopped i worry about that because im not sure im wiping things down from the super market as well i used to wipe individual avocados i know. I used to do the same thing and gotten lazy. When you are outside taking bike rides with the kids, you see so many people without masks on i get it it is hot. It is summer watching things happening where they are not requiring masks out in public. That is cause for concern. You get fatigued with being quite as obsessive come pulsy about everything if we order pizza, im out there with gloves on and it is like the box is radio active. It never gets in the house just want to eat whats in the box. Then in the super market, thank god everyone is wearing a mask people sneeze all the time who knows. I will tell you, i took a bike ride the other day. I was out. I took a big sip of my water it went down the wrong pipe. I tried to hold it in. I spit the water all over. People were horrified look at me i would have been too. I wasnt within 10 feet of anybody. In vegas, everybody has to wear a masks the card counters are like, yes, they wont know us or recognize us happy days are here again. I wouldnt open a bank perfect for all the bank robbers. Anyway a new study published in nature medicine says covid antibodies may last only two to three months antibodies to other covid viruss are said to last over a year comparing 37 asymptomatic people found others mount weaker response if you havent had the test yet, there are two lines. You can get a currently you have it or you can get an antibody line very faint on the individual i knew that had it so the antibody response was very faint sand seemed to indicate it was months ago joining us now dr. Scott gottlieb, former fda commissioner, serves on the boards of illumina and pfizer. Does it make sense to you the antibodies in this case would not last as long what determines that from what you know about science and medicine the circulating antibodies may not last as long it is highly variable. It may be that the cases there are t cells and memory b cells. There are a lot of different cells that may have adapted besides just is the circulating antibody studies the fact that there are 37 patients there are two types of antibodies they are looking at the igg that they didnt have a lot of it is hard to draw a conclusion from this study. It just said you didnt havea lot of circulating antibodies as the same level that are symptomatic. So many of these studies. We dont know whether it is our fault, the medias fault this was measuring circulating antibodies what do memory b cells do . What do they remember what they saw and make antibodies if they need them again . Exactly you could have memory cells in your lymph nodes you dont necessarily have circulating antibodies but you have cells that would adapt. And showing that asymptomatic people could shed the virus. It wasnt clear whether the virus they were shedding was alive. It might suggest that asymptomatic people, part of the reason they are they are not developing the immune response, so they maintain and dont develop as robust immune because they kind of live with it in harmony rather than having a revved up immune response. Thats what these suggest. Nature medicine is that different from nature . It is part of the nature family but not nature one of the best, obviously. Im sure this is a good one too. Dr. Gottlieb, you said the asymptomatic people may live with it or she hd it longer. Does that mean they are more contagious it is very unclear. It is unclear whether or not they are shedding live virus other studies have shown a similar thing. What is unclear is is it live virus, it cant really spread the infection. They continue to shed live virus. They are shedding more virus than someone who is asymptomatic the only question it answered was that it is shedding some type of virus. It shows that they could be contagious but not necessarily more contagious than somebody who is symptomatic the ceo of amc saying they are going to reopen but arent going to require customers to wear masks gs. Saying he doesnt want to, quote, be drawn into political controversy after the president says wearing a mask could be signaling a position against the president. What do you think about that i dont think this is a political issue. There are few things we can do to prevent the spread. This is one of them. Universal masking is one of the simplest steps we can take i think youll see people start to change their position there is a few that imposing masks and telling them they have to stay at home and denying their businesses and stay on an airplane you are seeing governors now requiring masks. Governor of texas now doing the same thing i think amc will do the same thing when they find nobody is showing up the ceo does they will sell masks, encourage masks and encourages masks themselves and would allow others if they didnt want to and having conversations about masking and how my mask protects you and your mask protects me. Would you go to a theater that wouldnt require a mask people show up and require a mask i think theaters will do the same thing if you go into a theater trying to be careful. You see people unmasked, youll be uncome font for theable going in again thats a highrisk setting anything in doors, poor felt operation, those are higher risk settings theyll have to make some accommodation here vug the popcorn at this point. If you cant have drinks on a plane, you cant constantly be one more question for you, doctor, do the icu rates in these states and hospitalization rates indicate it is more than just testing you can call it testing saying thats why we are seeing increase, thats not going to affect hospitalizations and icu bed spikes it is clear they are spiking. Hospit hospitalizations are one thing even california looks like it is ticking up now as well what we are seeing, hospital asati ization rate going up. The 10day lag is about 10 days. As a percentage of total cases is going down. Probably a number of reasons number one, older people, people with comorbid conditions are doing better chance of protecting themselves. Younger people, higher percentage are younger people. Thats the case in texas 25 are under the age of 30. We are also doing a better job of preserving life in the hospital weve talked about that before well see death rates come down. As long atsz we can protect the Health Care System have you heard of people having dexamethasone prescribed in this country . Ive talked to doctors changing practice in the icu doctor, happy friday. Good to see you this morning relax this weekend do me a favor, are you going to put tie on tomorrow it is permanent with you you are not going to tomorrow, do you promise breath no tie i promise sounds good im going to wear one anyway i think i look better. Thank you, joe when we come back, we are marking the juneteenth holiday with a closer look at challenges felt by minorities in the marketplace. As we head to the break, take a look at the biggest premarket gainers in the s p 500. Apache leading the way and kohls right behind. Well be right back. vo since our beginning, our business has been people. And their financial wellbeing. Its evident in good times, with decisions focused on the longterm. And crucial when circumstances become difficult. That continued emphasis on people our advisors, associates, clients and communities gives us purpose, strength and a way forward. Today. And always. We hope you find these Digital Solutions helpful to bank from almost anywhere. Deposit a check with your phone or tablet. Check balances, pay bills, and more. Send money to people you know and trust with zelle. Explore all you can do with our Digital Tools from almost anywhere. Pnc bank. You have the support of a,. Probiotic and the gastroenterologists who developed it. Align helps to soothe your occasional digestive upsets twentyfour seven. So where you go, the pro goes. Go with align. The pros in digestive health. And if stress worsens your digestive issues, try new align digestive destress. It combines aligns probiotic with ashwagandha to help soothe occasional digestive upsets, plus stress that can make them worse. And try align gummies with probiotics to help support digestive health. Welcome back, juneteenth is being observed by a growing number of major company. In the call for racial equality and Research Shows how minorities view equality in the work place elon joins us with the results good morning. Juneteenth took place 155 years ago. For many black voters, america is still a land of unequal opportunity. Our polling with change Research Across six key battleground states found the overwhelming majority does not believe minorities has the same Economic Opportunities. Less than a quarter of black voters, 23 say there is an equal percent of advancing in the work place standing out because the opposite is true for latino and latina voters. 64 believe there is opportunity sat the same level of white voters that depth of discontent within the black community is a warning. 85 believe businesses can do more not on their own, latin x and white voters agree people of all races believe companies have a lot more work to do. Back to you. Elon, those numbers are stunning how does that compare to the way black voters view their Economic Opportunities within other institutions as dismal as the work place starts, opening the apiture, they are even worse. When you look at the nation as a whole, only 9 of black voters believe there is equality. What is really interesting about that National Number is that for white voters, latino voters, they agree only about a third of white voters believe minorities have the same access to opportunity when you look at the nation as a whole. What you are starting to see is a consensus that there is disparity in the way that a black voter and worker is treated. This is something that does need to be addressed head on. When did this poll take place . This was conducted over the weekend after the killing of george floyd after weve seen a lot of the protests. We started to see some announcements by businesses of investments they are making in social justice and steps they are taking we keep doing this poll all through the summer well see if some of these numbers start to move as Corporate America starts to take action as well elon, thank you it is good to see you. Thank you coming up in just a moment, well talk strategy. Futures, look where we stand 185 points up on the dow, nasdaq looks to open up 62 points higher and s p about 19 points higher take a look at yesterdays s p 500 winners and losers 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. Good morning take a look at u. S. Equity futures. Dow up about 180 points, s p up about 18 points and nasdaq up about 61 points. The market coming to a pause after some wild swings we are still working to get back to the dows 1,800 point drop from last thursday joining us now on what could be in store, our guest. Jason, good morning to you good morning. Can you fight the fed no, you cant fight the fed it feels like thats the story. Listen, i think it is clear you cant fight the fed. Theyve gone from 4 trillion to 7 trillion. For bears, it looked like things were coming your way last week with 1,800 points on the dow then the fed came out saying they were going to buy corporate, not just etfs but its own basket that set the tone for the rest of the week. It seems clear that the fed is all in here is the question. In terms of what you buy a lot of people trying to buy into the travel stocks you can make the argument you cant fight the fed, covid19 continues to spread and there continues to be real questions about the health risk and the second wave and whatnot. The question comes how do you be in this market it depends on your time horizon. Everything is going to look like a v over the next couple of months because you are coming from such a low base there is a tendency to go into more value if you have a longer term rise, be careful i think, from my opinion, the black swan wasnt the virus, it schbt the virus, it is the lockdown serious to Small Businesses that will take a long time to repair. More like growth stocks. Communication and health care is the pla is to be for the long term over the next couple of years. There are policies we can do to quicken the point of which we get back to the level of Economic Activity we saw in 2019 in the absence of those things, i think it is going to be a slow road back. Would you buy anything outside of the United States right now . Not on a longterm basis. Again, as trade, europe looks interesting because they are actually providing stimulus and doing things to ensure what was clearly some sort of rup tur in relationships between northern and southern countries in the aftermath of covid europe, there are values there there is a reason why they are cheap. Thats largely because the economic policies were set up. You dont have processions that are that deep. You dont have expansions. Europe might be interesting. Emerging markets in the short term in my opinion will clearly move with some of the cyclical stocks as things start to reopen again, i would say as you get that in the Fourth Quarter so you were talking about the highgrowth stocks that were a lot of the tech names that were already run. Multiples are now moving the question is how much more do they have to run that has to go a little bit to the time horizon story also about the facebook and out looks in the world there are questions about how strong do you think the underlying economy will be two, three, four quarters from now and whether you think advertising or subscriptions will hold up listen, andrew, everything at a certain point is cyclical. There is no business alive that isnt cyclical to a certain extent the problem we have now, if you are a professional investor, whatever that means, how do you assign a multiple to a string of cash flows you are discounting to essentially negative real rates from zero Interest Rates it is very, very difficult to come up with a good answer to that my own opinion is that this market continues high for the environment you have tens of trillions of negative sovereign debt to about 10 trillion right now. Anything that gives them a slightly greater growth rate than they would for a more perhaps traditional sector that takes you out of a recession right jason, great to see you. So much on this friday morning you bet. Joe coming up, futures indicated higher up about 180 points. Well have more to help you prepare on the trading day still ahead, biggest winners of the s p 500 this week led by eli lily you can watch or listen to us live any time on the cnbc app. Please do that, if you want to or not need better sleep . Try natures bounty sleep3, a unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. With spray mopping to lock away debris and absorb wet messes, all in one disposable pad. Just vacuum, spray mop, and toss. The shark vacmop, a complete clean all in one pad. An update now on the talks to start the baseball season, 2020 baseball season a new proposal sent to owners calling for a 70game season, not 60 that was offered by major league baseball. The plan includes expanded play offs for 2020 and 2021 that was requested by team owners ap suggests the two sides remain more than 200 million apart in salaries and pooled postseason play becky. When we come back, employers are welcoming workers back to the building but air quality in those buildings is more important than ever Trane Technology monitors those through ai well talk to the ceo next announcer dont forget to subscribe to our podcast youll get interviews, content and behind the scenes access look for us on apple podcasts or your favorite podcast app. Subscribe to squawk pod today. 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. Yeah yyeah yeah hey, hey 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. Obviously very important right now, mike, to see whats happening as businesses are trying to welcome people back and make them feel safe. What are you all doing to try and help businesses in that manner yeah, becky, its right in our wheel house. Indoor air quality is nothing new to us. Were going in and doing a lot as were designed to work. After air introduced its critically important. The expertise we bring to bear along with other technology that would kill viruses and bacteria. They think its greener and that makes it cheaper. Its cheaper to cool or heat. Its a challenge because code standards, particularly in the u. S. , take a particular building for its purpose. The codes and standards will change and will adapt. Using technology, we are not recirculating air, bringing in fresh air, adding filtration adding u. V. Lighting or other photo catalytic technology to eliminate particulates thats the thing we are talking about now. Youre on point with the energy tax on energy. We have to be very conscious and buildings derive 40 to 50 of energy if it causes more energy use working on the back end, take energy con Service Issues so a Building Owner or operator can get into air quality and reduction in the utility costs so, mike, what are you hearing from companies they definitely want to increase the number of air circulations they have to make it safer how do i know if i am a consumer, im shopping in a supermarket, a mall, somebody whos going into work, how do i know that my building is safe . I think landlords, tenants, corporations will differentiate themselves when they can show and communicate that theyve done best practices that the building is working towards a code or standard then from a maintenance perspective, having the certainty. Were doing a tremendous amount of work these days connecting buildings, using technology and automation to actually send box through buildings to determine where buildings are not functioning up to codes and standards and we can intervene and make changes and then if necessary dispatch one of our technicians. Weve got the largest hvac technician work force in the world with 6,000 company technicians. Were prepared for this. Were hiring technicians and its something that i think in every recession weve seen service has been busy, but this is a recession caused by a pandemic where i believe air quality will be an even more important factor. You know, mike, your stock came down pretty significantly obviously the market came down pretty significantly, too. I think your stock was trading, what did i see maybe 146 or something was the high and now were looking at 90. I know part of that was when you all reported earnings for may, you came in earnings with 43 cents versus 50 cents the street was expecting. Maybe not all that unusual with the lockdown and how business was not going out. What can you tell us as you see now as businesses are reopening and Companies Getting more comfortable. Stock prices would have been i Ingersoll Rand and trane it was a split i think its due to the fact that these strong secular tailwinds around Greenhouse Gas emissions. 25 of the worlds Greenhouse Gas emissions happen through hvac thats the forecast by 2030. Another 8 to 10 lostin the coal chain as food spoils. We put technology in place to reduce that by 99. 9 the Greenhouse Gas emissions thats caused us to have tremendous gas emissions in the last 5 years weve been 3 to 4 gdp that will continue to exist for us and theres something undeniable about the fact that air has been cleaner and people want clean air, clean water, fresh food that will continue to be a driver for us. We really appreciate your time with us today, mike wed love to have you back it sounds like you are going to be a business in demand as we hear more and more companies worrying about the air quality. Thank you, becky. Great to be with you all again. Thank you take care. Andrew . Thanks, becky. Coming up when we return, futures well in the green this morning after yesterdays chopping session well show you whats driving stocks higher. Well talk about that next later, were discussing black entrepreneurship and how investors can close the opportunity gap in the United States on this juneteenth holiday with 1863 ventures founder melissa bradley. Yeah yyeah yeah hey, hey stocks on track to evidence the week on a high note. What you need ahead of the opening bell straight ahead. The nation observing juneteenth an important day to commemorate the end of slavery well speak to an entrepreneur about closing the opportunity gap for black Business Owners and investors. Full steam ahead for cruise lines and entertainment companies. Look at their reopening numbers despite covid numbers rising in multiple states as the second hour of squawk box begins right now. Good morning welcome back to squawk box here on cnbc im joe kernen along with becky quick and Andrew Ross Sorkin futures are up almost 185 points on the dow this morning. The nasdaq seems like it goes up every day anyway in fact, closed higher yesterday along with the s p the dow was down a little after coming back from being down triple digits right near the close. Ended up just off fractionally it was mixed the other two averages did trade higher becky. The market has come a long way since the marleaus t march lows picking stocks in this complex market can be tricky joining us is bill smeed, the cio of Smead Capital Management and mike santoli senior markets commentator mike, im going to start with you with a broader look at the markets. Watching whats happening. The ups and downs, swings we see on a daily basis what does this look like to you . It feels like the market is digesting that big move off the lows we obviously had the 8 shakeout, and i say 8 from the highs early last week to where we opened on monday. That was quickly picked up kind of just knocking around these levels 3 to 4 below those highs. If i look at the various gauges to say, okay, should we be worried . Are there signs of vulnerability emerging, you dont really have a clear yes on those questions because credit markets still remain pretty well supported definitely looking at some of the more erratic movements in terms of, you know,quick shift in style we have those travel stocks that surge and then crack and, you know, i think Investor Sentiment is a mix of really, really aggressive of overheated skepticism its em bheded in the market bill, joe made mention that the nasdaq goes up every single day. Its up 45 off of 35 off of the s p 500 and the dow. You dont like the glam tech trade. You think thats something thats over bought why is that . Everyone is a cinderella at the ball theres no telling when it will stop the issue, this market has rewarded threemonth momentum trades i call them the misery stocks. Every say four or five days they reward the misery stocks thats the companies that are perceived to taking the most advantage of the misery created by the pandemic. But also said something really valuable most of the time people would be looking at 90 million millennials breaking out buying homes and they might turn the Home Builders and 90 million more and if the coronavirus is triggering people to want to have a home and you have way more people, that might get to be a real hot group but the truth of it is, every three or four days they come right back to the misery stocks because most people are shortterm driven mikes right the sentiment among shortterm traders is very bullish. The sentiment a among longterm is very bearish. The airlines, cruise lines, any of those guys who have gotten battered because their businesses have disappeared. No, becky, youve got it backwards. Amazon, netflix, teletime, zoom, those are the stocks they are feasting on the misery and the history of this is at the end of very long major trends, theres usually an exacerbation of the trend. So, for example, in the dotcom bubble the y2k exacerbated the move in microsoft, cisco to ridiculous levels at the end of the move its not like netflix and amazon were not popular before the misery trade started. Right okay i get it you like what you call a deurbanization trend, stocks like Home Builders like d. R. Horton yeah. D. R. Horton. Look, if the millennials start moving out of the renting position in the coastal cities, buy houses and live life, first of all, theres got to be a house. And call every friend of yours thats 70 years old that lives in their own house and ask them how anxious they are now to go into some kind of an assisted living complex there arent going to be any existing homes for sale. And so, therefore, we have to build all the homes that are going to be demanded, and that means the banks are going to have a lot more Economic Activity that leads you to wells fargo. Thats very weak because the Largest Adult Population Group has not yet bought their house for the most part. You like spg. How does that fit into the trade. Its the most successful owner of class a malls our theory is this are people ever going to be more scared about that role the answer is, no. Secondarily, are 15 to 25yearold people going to find a place to gather when this is all over you know, people under 40, almost no one under 40 dies from the coronavirus. So 15 to 25yearold people are going to find each other somewhere and school is not an option at the moment when the Movie Theaters reopen, i think people will be shocked how anxious people will be to go watch a movie and eat really good popcorn instead of the sub par popcorn we make for ourselves at home. Hey, bill, the push back is what about the businesses that Simon Property relies on, the retailers paying the rents that theyre due . I mean, theres a huge back log from whats happened over the past three months . How do you think that plays out . How many tenants go under because theyre not going to be able to make it work yeah. I watched fertita on your folks network the other day cry about that you know, no one no one cries to him about what they charge for a bottle of wine thats just business so hes just posturing by saying that look, the reality is shopping in person is still a huge percentage of total sales and people do like to shop and clothing, which by the way in this environment, has been, you know, obviously very disappointing because people are just laying around their house wearing a sweatsuit, the same sweatsuit every day. Clothing will make a comeback. You know, there are lots of amazing longterm opportunities in this market because even among the misery stocks theyre all fighting over the entertainment business we own discovery theyve got 19,000 hour library, and how come the netflix and amazons and apples arent crawling all over that stock and the answer is because everyone has got this split dichotomy. If the stock isnt going to make you a lot of money in the next month or two, people dont want to touch it. Mike, real quickly as we head into the weekend, what should we be watching . It has been really volatile markets and its hard to know whats next on the horizon in terms of today, theres a whole big options and futures expiration that might make the volumes very high right now its really a matter of whether we still kind of keep gravitating back towards the big biotech stocks which have been holding the market together as some of the other stuff takes a break. Mike, bill, great to see you both and, mike, well check in with you a little later. Thank you. Thank you. Coming up when we return, as the nation observes juneteenth, an important day to commemorat the end of slavery, well take a look at tulsa oklahoma and an area known as black wall street and the role black Business Owners are playing in business lets get a check on the markets now. Green arrows across the board. Dow up close to 200 points s p 500 up 20. Nasdaq looking to enop 63 points higher were back after the short break. Yyeah yeah hey, hey try natures bounty sleep3, a unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. Deposit checks, check balances, pay bills, and more. Explore all you can do with our Digital Tools from almost anywhere. Pnc bank. Yeah yyeah yeah hey, hey yeah bbut what if you couldg do better than that . Like adapt. Discover. Deliver, in new ways, to new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back, but bounce forward. And now, with one of our best offers ever, were committed to helping you do just that. Get a powerful and reliable internet and voice solution for only 29. 95 a month for three months. Call or go online today. About 99 years ago a successful corner of early black entrepreneur ship was burned to the ground in tulsa. One of the worst acts of racial violence 300 black people were killed in an area that was known then and now as black wall street we went back to tulsas black wall street to see how todays entrepreneurs are fairing throuh the epidemic heres andrea day with their story and our history. Tulsa is a resilient place. It is a community that has overcome a lot. There has been a lot of challenges and it has felt like people try to get rid of us but you keep on pushing forward. We came from the ashes after the massacre, after they burned down our community and once again we have risen high above. Reporter they are the new entrepreneurs of black wall street, an area in tulsa now battling covid19 and living through an historic revolution. Here i am at the start of this pandemic with absolutely no model for some online component. Reporter rico wright owns the black wall street art gallery and the struggle is real. Day after day im losing money so im having to release employees. I have bills piling up and i realized this is because we werent being creative we launched a new clothing line. I went straight to my web ma wep the website. It was mind blowing to see the revenue coming in. When youre in devastation, youre down and out. I was already consumed by covid. Thats enough on its own then it was quantified by the racial tensions. I thought, okay, now were bringing traffic here, which means it increases the likelihood of something dramatic happening thats reminiscent of the massacre. Reporter but protesters brought new hope. Oh, my goodness, the support has been astronomical, particularly white people who want to become allies. Theyre asking, what can i do to help theyre wanting to spend money with black owned businesses. They bought everything. Reporter right next door a high end sneaker shop struggling with the pandemic. I think the harder hit people are financially the less viable it is for them to invest in neekers. Before the pandemic we were really focused on getting people into our store. Reporter suddenly online sales and instagram became a life line. Started Something Like sneakerheads of tulsa where we would feature local sneakerheads it was an invitation to engage with us. One of the lessons weve taken from this time, the pandemic, racial tension, Different Things is that buy need to be vigilant. Theres no way i could ever have predicted anything like this i cant even imagine what happens next there are people on both sides that i feel a great responsibility to. People that dont believe black entrepreneurship can be successful there are people who, you know, are really banking on it, you know they really look to us, especially here on black wall street, to be leaders in this. Down the street a familyowned restaurant also working to stay afloat i grew up in the restaurant ive been cooking since i was about 8 years old. Reporter the restaurant first opened here on black wall street by her grandmother in 1974 she was confident enough to start something, to stick with it, and keep on pushing forward despite whatever was thrown her way. When the pandemic first hit it was very, very scary most of our business is from dinein customers. Reporter then the demonstrations brought in new sales. I did not expect for so much business to where you can almost like not keep up my revenue has doubled which is a tremendous blessing. Weve already had the path laid from the past we know exactly what we need to do weve put our nose to the grind. We think of creative ways to come together. I want people when they come to the city to see that this is not just a place where black people lost all of their businesses, this is a place where you can see the resilience among the people you can see that new businesses are emerging in the ashes of the old. Beyond black wall street, black businesses continue to face a variety of hurdles in getting off the ground starting at the funding stage of over 80 billion in venture funding per year, only 1 goes to black entrepreneurs and even less to black female founders. Joining us now to discuss closing the opportunity for black businesses and the syst systemic barriers for black success, Marissa Bradley cofounder of eureka, a forprofit small and Medium Business mentorship platform shes professor at the georgetown Mcdonagh School of business thank you for joining us. Thank you for having me. I think about Small Business and i think about communities. Small business is the life blood of the community, and progress in Small Business in black communities is what we need to strive for to make gains, but so far while there has been some, its really tough to move the needle hard to really see that its moved at all for a lot of reasons. Can you go over both the herdless and what you see as solutions to those hurdles sure. Well, again, thank you for having me. This is an important topic i think as we recognize juneteenth and i think all of america has had a History Lesson tulsa is one example where black businesses have been the corner stone of our communities and in many cases the corner stone of many communities we consistently have faced these hurdles of lack of access to capital. The percentage of black businesses that receive ppp is minimal and should be embarrassing part of that is because of structural barriers and we lack Bank Relationships not because we are not qualified, there are no banks in our neighborhoods. The initial ppp did not support cdfis. We know that pattern recognition in the Venture Capital space is significant. I feel more comfortable because i look like you, i know where you went to school oftentimes were working two to three jobs or running a business that literally takes all of our time and doesnt allow us to have the same social capital we do have social capital within our community. Three of the biggest hurdles are lack of access to business capital. I would say lack of support from investors and the belief in our ability to be entrepreneurs. Then i would say all of the other kind of nonfinancial barriers, poor Educational Opportunities in our communities and the like that all lead up to lack of access to us and the same trajectory many white businesses have. You point out family connections. Alumnae networks all of this brings capital more easily to people that have those. And then indirectly black founders dont have these socalled accelerator programs where, you know, theyve got to pay for lawyers, theyve got to pay for credit right. Theyve got to pay for google credit. To launch a business is more difficult, costs more money so you have difficult to gain capital and you need more capital to launch a significant business once launched, you might have a better chance with one of these companies than with a company that easily does get funded. Absolutely. You know, as a professor i did research two years ago that shows that it costs at least a quarter of a million more for a black entrepreneur to start the same exact business as their white peer for the very reasons that you mentioned we have lawyers but we dont necessarily have big Silicon Valley term sheet lawyers so we pay for those. If youre not in an accelerator program, then you dont get the ad credits that help subsidize your marketing costs its a huge hurdle the challenge as always is that black entrepreneurship and the black community is resilient during the great recession, we outperformed white businesses by 30 . I think theres a level of resilience and the social capital lets not be mistaken. We dont reach the same level of scale. Black women as you mentioned at the intro are starting businesses six times faster than their male peer. We dont have access to other institutions that could accelerate, as they say, our progress our progress is slow but we get there by the entrepreneurs that are there and their resilience and how theyre serving their community. You point out on our disrupter list, cnbc, we do acknowledge that its not very diverse. You say, of course its not. How could it be . Structurally its almost impossible to do Something Like that we have people becoming a doctor, a lawyer we have a curve. Why not able to get a loan on a curve with different metrics for getting a loan its much more difficult to get that initial loan. There are other ways i think that you had suggested to leave in ive seen so many fortune 500 and S P Companies commit money after george floyd, commit money to trying to do things why not have a percentage of that committed to vc or to funding or to loans or to making it easier . Instead i dont know what theyre going to they seem to have trouble finding effective ways to earmark some of that why not do it here right right. I agree. I think that im excited that people are aware, but awareness is top of the funnel we have a lot to do to help really impact and accelerate the black community in terms of capital. As i mentioned to the producer, im afraid im afraid because people are throwing money at the problem and not really understanding all of the structural barriers if you give me 1 million and you give a white peer 1 4 of Million Dollars my money is gone and his or hers is probably thriving so im afraid that people dont truly understand the cost of being a black entrepreneur and throwing a couple of Million Dollars at the problem is not going to solve it. Right but i do appreciate the efforts. We also have seen the 15 that people want to give to shelf space. Again, i think thats a great floor, but i think we have to realize that while you may not see us, there is over 1 million black businesses that employ 8 Million People and generate a trillion dollars so dont cap us. Dont give us a ceiling, give us a floor. Give the corporations a floor. So i do hope theres an opportunity to expand beyond beauty and health. One quick thing, when people do give money to Venture Capitals, give it to black Venture Capitalists because we can find them i think its a waste of money to give money to those who dont know where the End Investment is there are lots of opportunities for people to lean in and they need to get uncomfortable. The pursestrings are not run by people of color you commend andresa horowitz for getting involved but youre right, 2. 2 million the soft bank of 100 million is a better start but its just if it goes to a place where its not a person anyway, it seems like a vicious circle. Thats right. It has to be not just that they know how to find us but they understand what our challenges are and they have the beauty to open the doors its often not the money its the connections and accelerations of opportunities if you dont understand us and you dont understand our business, you need the capital, you need the coaching, you need the connections, you need the communit community. I dont want to poopoo whats coming out its unfair. Youre putting a price on us thats completely under valued with 1 million businesses youre probably going to fund three with 2 million or youre going to short change us by giving us 25,000 when somebody else would have gotten 2 million in and of themselves we heard almost id say we heard almost everything you said but we did have a few problems with the shot. Sorry. No, thats all right. We urge you to look at ureeka. The mentorship and the know how for doing this thanks for coming on thank you wed like to learn how to move the wheel. Thanks. When we come back, mortgage forbearance. The dow is indicated up by 195 points squawk box will be right back. Time now for todays aflac trivia question. What company manufactured the barracuda . The answer when cnbc squawk boxonnu cties bills. Fifty dollars here. Eighty dollars. A hundred dollars. I had good health insurance. Why isnt this covered . Well, then they started getting bigger. Eighthundred dollars. Eighteen hundred dollars. I saved for this. But not that much. Im glad i had aflac. They gave me money when i needed it most. Thats why aflac is here, to help with the Expenses Health insurance doesnt cover. I love that aflac duck. Aflac get to know us at aflac. Com 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. Talk to your financial professional or consultant like real bad. We cant wait to get you back so weve added temp checks, face coverings, social distancing and extra sanitizing to get the good times going again. Were finally back. And cant wait until you are too. Now the answer to todays aflac trivia question. What company manufactured the barracuda . The answer, plymouth, which was owned by chrysler corporation. The barracuda was manufactured from 1964 to 1974. Got some breaking news on the Housing Market this morning. New mortgage forbearance numbers. Want to get over to diana olick who joins us with more on that diana, good morning. Reporter good morning, andrew the number of borrowers who are seeking help has fallen. As of june 16th, 4. 6 million homeowners were in forbearance plans allowing them to delay their Monthly Payments for three months this represents 8. 7 down from 8. 8. Together the loans represent more than 1 trillion worth of unpaid principal the numbers are down by 57,000 from last week and by 158,000 from the peak week near the end of may broken down by loan type, 6. 8 backed by fan anfannie and frede loans not backed by government agencies, held by banks or private label, they seem to be more trouble those total forbearances actually rose last week by 6,000. Nonagency loans are held by borrowers who are selfemployed. They may be struggling more financially from the economic shutdown andrew thanks, diana question for you given the number of forbearances that are coming down, has lending loosened up as a result of all of this well, its definitely loosened up slightly from april when the forbearance plans first went into place and there was a lot of confusion of what the banks were going to be held accountable for, how many forbearances were going to end up with the next month now that the rules have been clarified, we understand how people can repay these thats loosened things up. The problem is sheer volume. You see purchase applications, Mortgage Applications to buy a home up around 15 from a year ago and refinance applications, that demand is up over 100 from a year ago the banks are just trying to handle this. The servicers are trying to handle the volume and that makes it a bit more difficult to get a loan now. What happens at the end of the three months so you have a couple of options. You can either repay those three months in a repayment plan over the next year or so or you do have the option to repay it when you refinance your loan in the future or when you sell your home so youre not immediately required to make up those payments that you missed. Diana olick, thank you. Nice to see you on this friday morning. It is graduation season and amid the pandemic its looked very different this year yes, we do report on many economic and human tragedies every day, but along with those crises there are so many small losses that weve all been feeling right now. Those losses can loom pretty large when it affects your family especially in the uncertain times. Wed like to take a moment to celebrate a few of the special milestones and say congratulations to some very special kids lets take a look at sienna carb she is graduating from middle school she is a new member of the National Junior Honor Society and sheas missing her graduation ceremony, a class trip to washington, d. C. Our tape producer wants to send congratulations to his niece isabel milar and to his nephew graduating from sixth grade in new york now lets take a look at ella steckelman who is the 11yearold daughter of our producer she is on her way to middle school in the fall shes missing her moving up ceremony delaney kirkwood graduated the university of North Carolina chapel hill. Shes celebrating her own children after working hard and pushing through three months of zoom classes. Our youngest graduate is evangela epiphinea we want to wish her good luck in kindergarten next year producer cameron costa is celebrating one of her best friends. We want to say congratulations to elise good. Elise would have been presenting her final portfolio at the Fashion School s mode in paris that is the oldest Fashion University in the world. Lets take a look at pamela durand pamela recently celebrated her virtual graduation from American University Washington College of law. Here she is with her husband mike last but certainly not least, best wishes to caroline obrien. Caroline and her fiance have postponed their 2020 wedding twice during the coronavirus they are now getting married in 2021 and we want to wish them the best of luck squawk box says congratulations to all of these special people well be right back. But cdw will assist your needs and implement a dell emc unity xt allflash unified storage platform. It delivers speed and efficiency, while providing simplicity and flexibility. For unified storage platforms, you need dell technologies, and it orchestration by cdw. 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. The market is working lawmakers, big tech is an industry that needs to be weighted. Thanks for having me. Lets talk about the roll back its called the roll back of section 230. What would it mean from your perspective, someone who actually has a lot on the line and who has learned a lot through this industry . Yeah. You know, i think its interesting. I was reading the dojs review of section 230 yesterday and i think whats interesting is that they explicitly say that, you know, their intent is not to revoke 230 completely but, rather, to find some its quite broad they find it objectionable with no real clarity around what that even means so, you know, i think the topic has been sort of hyper politicized. Complaining about republicans trying to preserve free speech, pushing neutrality folks who are left leaning or are probably looking for more content moderation, not less i think if you look at the revi review i would agree i would agree 100 i didnt understand where all the fuss has come when you actually look at some of the things that youre talking about. Theyre saying you could lose immunity if you facilitate or solis sit federal and those seem like the same thing. Looking at it, it was not as concerning as i thought it was going to be. Yeah. And i think if you look at the stock prices of these companies that, you know, i think the markets sort of have, you know, absorbed a lot of this as well and have come to the same conclusion that, you know, its not some sort of death nell for the industry you know, a full revocation of the statute would obviously be really bad section 230 some people have called it, you know, one of the whatever. Its kind of a pillar of the internet and has been responsible for, you know, allowing really all of the user generated oriented platform businesses to exist in the first place. You know, would it make sense for the u. S. To repeal a law that, you know, allows everyone from facebook to wikipedia to exist . Probably not especially in a world where, you know, were fighting in a Global Economy against, you know, competitors in china and other parts of the world you know, i dont think thats the m. O. Of the doj. I think from trumps standpoint and the administrations standpoint, the topic is really more of a threat than it is something that has real teeth and so to me ive sort of seen it sort of blow over i dont see practically how this becomes a problem for big tech i would say if this discussion leads to greater clarity around how content is moderated on the internet, thats probably a good thing for big tech i know Mark Zuckerberg has asked for moderation rules and clarity around what the fine line is between, you know, lets say free speech and a more proactive moderation approach. That would be great for the industry so, again, i dont really see this as a problem i think its part political theater, but i think the substance of it could actually be good for the industry i was kind of thinking the same thing, just wondering if it lets off some of the political steam thats built up and maybe prevents congress and the administration from doing some other things that could have been harmful because when youre talking about regulation coming from congress and the administration in a lot of different ways, there are a lot of forms it could take but this seems like its not necessarily a terrible thing if you read the dojs review, theres nothing in there that sounded, you know, too problematic. Some of it makes a lot of sense. A lot of it is being done. A lot of these Companies Know that theres going to be at some point in the future, whether its in 2020 or later, efforts to curb the internet to some degree, especially as it relates to elicit activities thats probably a good thing and i think thats definitely a good thing. Yeah, its a great thing. For bigger companies, they have the resources and infrastructure and teams and manpower to actually implement these rules i do worry a little bit about the Smaller Companies. I run a Small Business, sum zero which is an Online Platform as well we always worry about regulations that were designed for Large Companies that then have to be implemented by Smaller Companies like ours, but i think if youre a big tech business like this is a this is not something that should be a surprise and i think its something that theyre already planning for and, again, i think the stock price and the performance of these companies reflects that. Why do you think some of the Big Companies are pushing back so stridently against this again . Again, i think theres a little bit of political theater involved and i think, you know, the what theyve said is really more sound bite than a direct response to the doj review i think its all just, you know, more theater than substance. I think what theyve responded strongly against is is the idea of a full revocation of section 230 which is not being proposed in the doj review. Obviously the politicians will paint it out that way, but i dont think any politician i think it would be political suicide to say like we want to get rid of a seminole piece of legislation that is, you know, essentially foundational to the internet that to me sounds not only crazy but i dont think that would have real support on either side of the political spectrum. Divya, thank you for your time today its good talking to you. Thanks for having me. Joe thanks, becky. Sales of cars accelerating as the economy reopens. Phil lebeau takes a look at one particular area of the markets that is hitting the gas. As we head to break, heres a look at some of the major automakers you see there. Tesla, 1,000 bucks welbeig bk. L rhtac [shouting] [clapping and shouting] [cymbals clanging] [knocking] room for seven. And much, much more. The firstever glb. Get 0 apr financing up to 36 months on most models, and 90day firstpayment deferral on any model. Take another quick break before we go, futures up over 200 points now on the dow. Nasdaq continues to outperform the s p and the dow and is up another 68 pntois. The s p is up today as well. Well be right back. Need better sleep . Try natures bounty sleep3, a unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. Bbut what if you couldg do better than that . Like adapt. Discover. Deliver, in new ways, to new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back, but bounce forward. And now, with one of our best offers ever, were committed to helping you do just that. Get a powerful and reliable internet and voice solution for only 29. 95 a month for three months. Call or go online today. Still to come this morning on squawk box, senator john bo barrasso will join us. As we head to a break, take a quick check on the futures this morning sharply higher this morning. At least relative to what we used to be used to dow futures up by 220 points this morning s p up by 23 nasdaq up by 73. Squawk box will be right back. Welcome back to squawk box. The Entertainment Industry has been hit hard by the shutdown and industry love seeing you. Its between them you would buy disney explain the distinction. Good morning, andrew. Thanks for having me i think as you look at the act of covid19 across the u. Sms. , its various sectors these companiestrying to do it the potential. To disney, its definitely something to be said about in the media, were focused on the individual portfolio of assets and the exposure of each of these portfolio of assets to the covid19 you can parse it in very different ways all in all we just they have less exposure to mass gatheri s gatherings we think these companies are going to be better positioned. Unfortunately we dont see that in the cruise sector let me ask you just briefly about disney and weve got to run. If you look at disney, for example, in terms of capacity, what kind of capacity do you see taking place there over not just what the rules are going to keep them to but in terms of interest and demand its kind of limited capacity saw what happened in shanghai. 30 , 50 capacity, youre starting to talk about mitigating some of the cash we have to incur. Thats the distinct possibility as we look at orlando and california so the plan there is really out of the companys control thats the one thing that makes it so uncertain for us to project, but at the end of the day i think companies are going to be able to, you know, show that they have a liquidity to manage cash burn over this uncertain period what do you think a stock like disney is worth 12 months from now so we just kind of feel that this stock can get way over 160 as we get more visibility on the reopening schedules. As sports returns, all of these are big events that can provide catalysts in wall street reopening production all of this will boast our content pipeline okay. Its great to see you. Appreciate it. Look forward to seeing you again very, very soon. Thanks a lot, andy. Stay safe. You bet, you too. In other reopening news, car sales are picking up but it is the used car market thats really red hot right now phil lebeau joins us with more on that front. Reporter we heard from car Bank Reporting First Quarter earnings it was a penny shy of estimates earning 3 cents a share in the First Quarter. Top line coming in at 3. 23 billion. A couple of things are happening with the used car market that makes it red hot when you look at the pricing, the dealers on the retail side are getting what theyre looking for, 21,752. Sales are surging in june. 5 of last year if not eclipsing it 40 million were sold last year and the used Car Dealerships are also benefitting from the fact that you have a tight inventory on certain new car models, particularly suvs, pickup trucks as a result people are rotating in the used vehicles you also have more people who have prime credit ratings. They are now moving into used cars at a much higher rate when you take a look at carmax, when you take a look at car vanna, i wouldnt say theyre 100 in the sweet spot but they certainly are doing much better than many people were expecting just a couple of months ago. You know, phil, i cant help but think of what might happen if theres ever an actual bankruptcy with hertz. What do you do with all of that additional supply that would be coming out of the market, all of those cars would that mabrey down prices . Even in a bankruptcy, hertz is not going to go away. You are still going to see hertz at airports. While they may have a few fewer vehicles, youre not going to see the vehicles flood the market what impact its going to have is on the automakers none of the companies are ordering new vehicles at the pace they used to. Phil, thank you states meanwhile from coast to coast reporting record increases in coronavirus cases yesterday. The spikes coming in california, arizona, texas, South Carolina, and florida. As nationwide reopenings continue Lawmakers Debate more stimulus in washington. Lets talk about the need for more government aid. Senator John Barrasso joins us thank you for joining us thank you, joe. We appreciate it. You read the news. You watch the coverage what about some of the states that are seeing an increased incident i know even dr. Fauci has emphasized and dr. Gottleib who we have on a lot, its a continuation of the first wave, not really a second wave these are states that hadnt been that affected to this point be is it worrisome, senator obviously its worrisome is it going to turn into something that makes us shut down again in your view . Joe, let me be very clear, there will not be another shutdown in this country and this economy we are much better able to deal with it. We are closer to a treatment dexamethasone. We know what to do more people are coming out i expected a bit of a spike as more people came back to work. We need to get america going, our economy going, people back to work. We are back in wyoming more activities, parades, rodeos, businesses are open. All of these things are good signs and were going to continue in that direction i continue to see some increase in cases but were not necessarily seeing an increase in hospitalizations or deaths. The number of deaths has continued to decline so we need to continue on this direct effort to reopen the economy, get america back to, would its the best thing we can do for our country and for the economy and we have the capacity now. Hospital beds, testing, all of those things, treatment to deal with the disease much better. Okay. So we stay open and we have some stimulus money left to use is there in your view a need for even more . Not at this time, joe were going to reassess in about a month. Im going to be meeting with the chairman of the Federal Reserve in days because he has called for some of that there are a couple of things we need to do if there is additional legislation number one is Liability Protection for our teachers, for our Small Businesses, for our health care workers, you dont want the sue and settle lawyers to come and bring a new pandemic upon us so that would be part of it if there is an additional piece of legislation, i think we need to take a look at infrastructure, roads, bridges, highways, things that actually put people back to work all across the country i chair the committee in the senate thats done that. Weve come out with a bill 210. All the republicans, democrats, including Bernie Sanders has supported that so there are things we can absolutely do if we need to do more to help the economy, but one of the big detriments. We see help wanted signs out here in wyoming and around the country, its the fact that we continue to pay people under the Unemployment Insurance benefits program. People are getting paid more to not work than to work. We see 2 3 of these people on this program are getting paid to stay home. When the government decided to shut down the economy, we needed to do something that would make a real difference and help and hold those people harmless but were now at a point where its a disincentive where we need to get people back to work and that expires on july 31st. The bonuses for going back to work, i think senator portman is involved, is that going anywhere do you support Something Like that is that going to become law . Well, i saw rob talking i think to becky yesterday about it he talked about it for the last month. I dont see that becoming law right now. You know, nancy pelosi wants to extend this 600 per week benefit all the way into 2021. This costs about 80 billion each month of spending, of Additional Debt onto the country. We want to make sure people who cant go back to work because of Health Conditions or because of the fact that their job isnt coming back, we want to help those people, hold them harmless but to continue to pay more if you stay home than going to jobs, target is paying now 15 an hour to start but yet if those folks are staying at home, they can make its comparable to making over 22 or 23 an hour for not working. So we have the incentives wrong. That has to end the end of july. Andrew . Hey, senator, wanted to ask you a bit about the liability issue for employers and wanted to raise whats become a bit of a controversy around amc, the cinema chain, the ceo saying he is not going to require customers to wear masks in theaters going to encourage it but not require it says, by the way, one of the reasons hes not going to require it is because he believes its political. You heard the president yesterday make comments that he believes Wearing Masks are somehow a signal of political view against the president by not wearing a mask in the theater, even though employees may wear masks yourselves, you could argue, youre the doctor, that youre putting the employees at some level of danger would you provide Liability Protection for a theater like that i have a lot of concerns about that i know you were discussing that with Scott Gottleib earlier. Youre talking about a confined space where people are there forex tended periods of time and breathing the same air its like being on an airplane i was on two flights yesterday getting back to wyoming. When that happened i think peoples increased risk is there and people ought to be Wearing Masks in those situations. If hes in the business of trying to get people come and see the movie, i think people are going to be reluctant to spend their money to go and sit in a confined space for a couple of hours breathing the same air as folks who arent Wearing Masks. Part of this and i talked to one of the Federal Reserve chair men this past week about how do you get back to people with disposable income spending that where those dollars are spent, and people have to feel safe as they go out and back into the community, back into entertainment, entities. All of those things are important as people make buying decisions. So i think that you want to make sure that youre providing Liability Protection for businesses that are following the prescribed guidelines and make sure that we just dont have all of it an explosion of lawsuits if somebody says, gee, i went and shopped in that store or i went to that school or i went to that doctor and now i have coronavirus i think we have protection that is not there today. Senator, wyoming. Bring us if we havent followed it that closely, in the last three months what have we basically seen a lot of room. Bring us up to date on what youve watched in your state. Sure. Everybody in america has been impacted by coronavirus. Some more by the disease the impact has been more dramatic on our economy. Agriculture, tourism economy all of those things have gone flat line as a result of the coronavirus, people not traveling, the issues of beef and whats happening with the packers and all of those issues. The agriculture component. You were reporting when Energy Prices went negative at a time when putin and saudi arabia were trying to flood the market with energy the demand for energy dropped dramatically as planes werent flying our impact has been on the economic side. I was at a rodeo they have not had a new case of coronavirus in two months. So its foolish to have the economy shut down in a place like that. Thats why its so important that we reopen, get people back to work. Now that we have the kpa it is to do it because people can find patience were tasesting the capacity is there. The Hospital Capacity is there we need to get america working again and now is the time. All right doctor senator, thank you. We appreciate it its good to see you it sounds like watching squawk box all morning long. We appreciate that, too. Support our sponsors as well, senator. We appreciate that. Theres a lot to learn by watching squawk box, especially you, joe. Becky pretty much too. Andrew sometimes. Oh, man oh. Oh. I had no idea you were going there but thank you for coming on today to the afore mentioned senator, thank you see ya. He always engages and i appreciate that very, very much. When we return, were going to talk about juneteenth, which is today. The anniversary of when the last africanamerican slaves learned they were free it comes amid the largest demonstrations in decades. Well talk about the role of businesses fighting injustice and what they need to do beyond the press release. The futures on this friday morning right now are in the green. 302 points higher on the dow nasdaq looking to open u points higher. S p 32 points up youre watching squawk box o gets, the clouds eventually clear, and better days follow, and well still be here, like always. For over 168 years, massmutual has been helping people weather storms, big and small. Let us help you prepare a plan to protect your family, your loved ones, and your future. Find a financial professional at massmutual. Com bbut what if you couldg do better than that . Like adapt. Discover. Deliver, in new ways, to new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back, but bounce forward. And now, with one of our best offers ever, were committed to helping you do just that. Get a powerful and reliable internet and voice solution for only 29. 95 a month for three months. Call or go online today. Futures up 300 points. Up 300 points on the dow nasdaq indicated up 87 and change s p indicated up about 33. Becky . Joe, thanks. Corporate america is making an unprecedented move several Large Companies are observing juneteenth which honors the end of slavery and making it a paid holiday jane wells joins us from one center of commerce that is marking the special day. Jane, good morning good to see you. Hi, becky yeah, all the dock workers at all 29 west coast ports including here are taking an eighthour work stoppage today for juneteenth up at oakland where its mostly black, theyre having a march and caravan. There is systemic racism at times still even within the union. Weve had incidents of hanging nooses that weve since addressed and just here and there weve had some evidence of systemic racism showing its ugly head here where we work every day. Reporter Corporate America is all in on this. Here are a few of the Many Companies saying that juneteenth will be a paid permanent holiday including target which will pay working employees today time and a half other companies are still open but canceling meetings like amazon which will offer workers a variety of time to reflect on the day. In gm where the work will continue, they will stop for 8 minutes 46 seconds in recognition of the death of george floyd the ports in this union, dock workers are allowed one work stoppage a month they are all happening to take it together today. Back to you. Okay. Jane, thank you and thank you for that report. Its remarkable to see whats happening around the country and were going to continue that conversation right now a little bit more about what the Business Community can do and what they are doing to try to step up and address inequality and justice. We have lisa lu. Shes also coauthor of the business for Racial Equity pledge. Theyve gathered 1,000 signatures from executives and ceos good morning thank you for joining us tell us about this pledge before we get into some of the larger issues taking place across this country. Well, first, thank you, andrew thank you for having me and making space on your show for important conversations like this so the business for Racial Equity pledge, the seeds of it started a couple of weeks ago during the nationwide protests and utpouring of grief over th death of george floyd and every other black life cut prematurely short by a fatal encounter with the police ive been a Business Executive for 25 years a Senior Executive and advisor to the c suite leaders and boards ive seen my fair share of pr polished thoughts and prayer type statements come out and thats what i expected instead as you just shared, it seems like this time is a little different. The statements were bolder and leaders were starting to make statements that show theyre ready for change i gathered a group of other executives, all members of a group called the leadership now project. Its a group of Harvard Business School Graduates together we wrote this pledge and it covers three areas where businesses who want to walk the walk and not just talk the talk around racial justice, things that they can pursue, specifically in the areas of policing, voting and economic inclusion. So, you know, you talk about getting beyond the press release. What do you think that really is going to look like how are you going to measure the commitments that so many of these signatories are going to have. Ill talk to you. Right up front we have an ask for business around policing we want businesses to use their considerable clout and sway that they have as job creators and as contributors to the Political Landscape to get things like Police Reform and accountability on the agenda. That is where at the state level and the local level where these issues and where laws around Public Safety and Law Enforcement are made and business can have very big voice there. The second area is really in voting you know, were asking for business to really put pressure on states to ensure safe access to the ballot box. You know, listen, since the Voting Rights act was gutted a few years back, its actually been getting harder, andrew, in a lot of states for feel vote, especially for black voters to vote and thats been made all the much hard here, Citizens United is getting easier and easier for businesses to have meaningful influence on Public Policy so one of our believes is that regular people feel like they have less say at the ballot box, theyre going to be turning to business even more because they know they have influence to sway on issues that they care about whether thats racial justice, climate change, gun control, everything else. To step up to protect everybodys right to vote and then the last part of the pledge is really asking for businesses to double down on areas of diversity, equity and inclusi inclusion. These are things that are on companys radars and if theyre not on your radar, they should be this is diverse hiring practices, Board Diversity if youre an investor, look at how much is going to black entrepreneurs, how much is going to black fund managers, black Venture Capitalists like the guests you had on earlier. Thats whats in the pledge. Thats what were asking for businesses to do like you said, weve been really heart jebd to see incredible, incredible support from across the Business Community in finance media, tech, real estate i think people are really hungry for change. Lisa, let me ask you this i consider this and you consider this an apolitical issue the things you just laid out, yet all of them to some degree are political. Some ceos worry about the politics we were just talking about how the ceo of amc theaters think wearing a mask is political. How far will ceos go and what you will tell them about the politics of this its a great question look, theres a difference between an issue being politicized and an issue being political. To me, something as simple as Public Health should not be political. You know, you mentioned my work. You know, i run a Strategy Consulting firm that helps leaders make these kind of decisions. One of the things we say is driving for Business Performance doesnt mean checking your good judgment and your common sense and values at the door so thats one thing i would say. You know, and then the other thing that i would say is that, you know, when business puts its muscle behind something, change happens. Meaning business can actually help to lead and say, hey, politicians, these should not be political issues protecting the Public Safety, protecting Public Health, making sure that everybody can vote, these cannot and should not be political issues its precisely because business does have a big voice that i think they have an opportunity and the influence to change that narrative. Then, lisa, i wanted to talk to you a little bit about the efforts the companies are making to diversify board rooms, management and the like. Something that ive heard in the past two weeks, you know, a lot of companies have stepped up in the past couple of weeks and have named a number of africanamericans to certain boards, have hired or promoted certain people and then youve heard on the other end, i want to be sensitive in how we talk about this, ive heard people say, is this tokenism . Theres a lot of debate about how to go about doing this sure. I mean, you know, i would say look at the data, right . There is plenty of data out there that proves that businesses with diverse boards, with diverse Senior Leadership teams do better and thats for a lot of reasons its because youre bringing more Consumer Insight into the room it means that you are bringing more creative friction into the room and making better decisions and it means youre making sure that you dont have blind spots so, you know, i think the businesses that are smart and got on top of this early are seeing success if you arent thinking very thoughtfully about how do you bring, you know, the full and often Untapped Potential of all kinds of workers into your all kinds of workers into your work force, all kinds of directors on to your board, then youre missing out and id say its more of a tax on your business by not doing it and an accelerant when you do do it. Lisa, want to thank you for joining us this morning. Want to thank you for what youre doing we hope to have you back to hear about your progress. I appreciate that thanks so much, andrew. Coming up, President Trumps expecting a quick snap back from the coronavirus obsession. Earlier he tagged Morgan Stanleys chief economist whos also bullish on a vshaped recovery in just a few minutes well see about the Movie Theater chain amc plans to open at 450,000 locations. Heres what the ceo adam aaron told jim cramer on mad money last night were the second most popular out of Home Experience second only to going out to eat at a restaurant thats why we have a Bright Future and well make it through the conaro much more squawk box is on the way. Well come right back. Many dealers now offer optional pickup delivery and athome maintenance, as well as Online Shopping with Home Delivery and special finance arrangements. So, whether you visit your local dealer or prefer the comfort of home you can count on the very highest level of service. Get 0 apr financing up to 36 months on most models, and 90day firstpayment deferral on any model. Welcome back to squawk box. The futures are powering higher. Were at 276 points higher the s p looking up 28 points higher and the nasdaq up 82 points higher. See whether it holds for the week, becky. Andrew, thanks. When we come back, a special look at some data that we dont normally see that data could give us better insight into how businesses are weathering the coronavirus then Morgan Stanleys chief economist why he sees a vshaped recovery check out the biggest premarket gainers. Major indexes are on pace for the biggest week in five marathon and apache leading the way this morning squawk box will be right back. Usaa was made for right now. And right now, is a time for action. So, for a second time were giving members a credit on their auto insurance. Because its the right thing to do. Were also giving Payment Relief options to eligible members so they can take care of things like groceries before they worry about their insurance or credit card bills. Right now is the time to take care of what matters most. Like weve done together, so many times before. Discover all the ways were helping members at usaa. Com coronavirus as recovery rolls on, wall street is watching any data it can get its hands on for any evidence in pickup in activity Steve Liesman joins us now with some new numbers and his road back barometer wow, is that new you come up with really the greatest no wonder theres liesmaniacs everywhere the road back barometer. Reporter yes joe, here we are following all of this High Frequency data. The road back barometer is looking pretty good. Good news in there but there are some caveats and ill go through here lets start in the back of the road back barometer. Apple mobility what we do is we have the search percentages from driving, walking, and from transit. People looking to see how to get different places thats at an alltime high seven day average we try to smooth out the volatility. 94. 6 in the back thats an alltime high for the index. Introducing home base here thats the one in the middle a lot of economists are following that that did a good job of predicting better job numbers in may. This Software Company helps Small Businesses, 60,000 Small Businesses with a million employees do scheduling, timing, all kinds of stuff theyre down 26. 7 from january. Thats an alltime high. Its the big caveat there. I changed the number of this too openings that had gone the other way. Its back. Well take a look in the next chart at what that looks like. Heres the yelp circle as you see that big dip in the middle there, thats when we last reported on this. It had gone negative it was store openings. Were back to store closings all 50 states had net store closings and all 50 metro areas that we follow had net store closings not sure whats responsible for that well have to continue to monitor that now lets look at the home base data, and you can see the steady improvement from the bottom there. This is employees working as measured by home base. Thank you very much for this data with a little caveat at the end. It looks like the rate of change of improvement has slowed a little bit i looked at texas and arizona, two states that have outbreaks, recent outbreaks, and they have leveled off a little bit so well have to monitor it to see what kind of effect that has on bringing back employees its ultimately good data, guys, but with some caveats that we have to monitor. Becky, just a reporters notebook here. I have been involved in a process about six or eight months before this thing hit of trying to bring some of this High Frequency data to air here. Ive done a couple of reports on it here we are, necessity being the mother and wall street is using it to trade on it is High Frequency, it changes a lot, its very volatile. Its giving an overall impression of an opening thats relatively modest right now in its pace. Steve steve, one question. Go ahead, becky sorry just a question on the yelp store openings or store closings, whatever you want to call it. Are those temporary closings or do you think theyre permanent excellent question. So according to yelp, this is these are stores that are closed that it would expect to be open. In other words, theyre not permanently closed stores as far as we can tell so, yes, its temporary and they would expect to be open. Now that number you saw of 7 upon point 6, its been as high as like 100 in march. So its come way down, the pace of closings. I we had the run in early june i changed the name of it to store openings and there we are back to closings we just have to monitor it as soon as it changes well come back on with the High Frequency rate steve, we have an important interview coming up with a vrecovery type guy. I just want to comment good. Like old times yesterday with rick. I got a lot of comments on all of that and a lot of liesmaniacs were taking your side. My question is, i call them the and they like the liesmaniacs versus the santellians. Do you like that or should we go with santelli . What would be a better moniker im thinking the santelli. It almost sounds like the boring colle borg collective. You should ask rick that would be his thing. You love liesmaniacs. You love liesmaniacs. I abide it. I abide it thank you i appreciate it. Becky thank you, joe. While some are questioning the shape of the economic recovery of the coronavirus, Morgan Stanleys chief economist is calling for a quick snap back and President Trump is a fan of his work on monday the president tweeted a quote from his weekend note which said we have greater confidence for a vshaped recovery given recent growth data and policy action chayton, well get to the tweet in a moment. What do you see out there that convinces you that this is going to be a sharp vshaped economy becky, thanks for having me the most important thing, this will be a shorter recession for three reasons. This is not an endogenous shock trying berd by huge imbalances it is because private debt has risen significantly, then it takes much longer. Second is that youre not going to see as much deleveraging pressures as we had seen and then finally the most important thing is policy decisions or policy actions have been decided, advisable and we do think it will be effective we think it will be effective. Thats the framework that we have kept in mind and now we are getting the data, which is confirming that we are recovering quite quickly when you think of a v, you know, its not just a reverse check mark with a sharp bounce back, you have to get back to the other side of the v and realize that youll be back at levels from proecoronavirus. When do you think that will happen for Global Economy were expecting that by Fourth Quarter of this year we are seeing a pretty good recovery in asia and that is one of the key reasons why its driving that quick recovery in global at global level. For dms were expecting it to happen by Fourth Quarter of 2021 i must say the data that were seeing since weve made this forecast could happen earlier. When you say dms, im assuming you mean developed markets happening by the Fourth Quarter of 2021. China is the big reason you have seen this in asia. Chinas economy has come back. They took extreme steps and they have with every flareup do you think the recovery will be different in europe than the United States because were democratic societies and we havent taken the same measures . Well, that is probably one of the reasons for delayed recovery in u. S. And europe, but the other thing is they are also more exposed to services sector, which has been hit most by covid19 so, for example, chinas manufacturing is 40 of industry its 40 of gdp. We know in the u. S. Its much smaller. That is one other reason why you are going to take longer to come back look, just see the development in europe and i think the northeast states in the u. S. Will probably follow the european situation but i was just observing, steve was talking about the mobility indicators if you look at the transit mobility which is my focus in terms of returning back to normalcy, for france and germany, this is nearly back to baseline were seeing a pretty good recovery in europe regarding the retail sales data for u. K. That, again, was a big surprise. Yeah, i think im seeing the recovery is broadening out across the world what were seeing lately is those countries which are lagging and those sectors which are lagging are also beginning to recover fast. Chetan, were you surprised to see the president tweeting your work i think i focus on what i do and so from our work perspective, we are still confident on our call. Are you on twitter . I am on twitter but im not active i can imagine that must have been an awful lot of attention to get poured on you. Exactly i had to start thinking about shutting down the account. The traffic was quite huge. Yeah, i bet chetan, one thing you mentioned was the policy response to this because youre convinced that this is going to be different because we havent seen the sort of normal imbalances that we would see during a recession i just wonder about the knock on effects of the shutdown itself and what that means for businesses, particularly smaller businesses how do you think that kind of ripples its way through the economy, whenever you have a shock, what kind of policy response we need to have what i identified is you need to watch three things, the timing, scale, and coronation. The timing once you get the shock going, you need to come in quickly for policy response. You cant wait for defaults to happen in a large manner second, in terms of scale, youve got to have it to be cautious and do more, not less and third in terms of coordination, youve got to have both fiscal and mon tear ri together if you think of u. S. And in europe and japan the response was quite lag. In the case of u. S. We did not see this scale of policy response so i think thats what is going to take care of the problem that we would have had if you were to have no quick policy response. For example, like if you just think of the fiscal support in form of cancers that we have given to the households, thats kept the top line going for the companies. The consumers are able to spend. Therefore, you are avoiding the huge problem in the corporate profitability and consequencely smaller deleveraging compared to gfc. Chetan, thanks for your time this morning good to talk to you. My pleasure okay. When we come back, a lot more we just heard about the possibility of a vshaped recovery coming up, an argument from the other side an investment strategist will talk tos about his take. Hell tell us why there wont be a big stay tuned. Watching squawk on cnbc. Dont forget to subscribe to our podcast. Youll get interviews, original content and behindthescenes access look for us on apple podcasts or on your favorite podcast app and subscribe to squawk pod today. Gw 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. But inside every etf. There are untold hours of careful construction. Youll get interviews, original in client portfolios. Tap Untapped Potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment objectives, risks, charges and expenses. Om for a prospectus containing this information. Read it carefully. 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. Welcome back to squawk box. Futures up just under 300 points on the dow i dont know if weve mentioned it but we were down for a little while on the delivery month. Now we have a four handle. Meantime, overnight twitter adding a warning to another tweet from President Trump posted a video of two toddlers running down the sidewalk. It appears as though cnn posted it that said racist baby, probably a trump voter the video came and twitter manipulated the media. They said the original video was from a 2019 cnn story about a french two toddlers and theyre going on about censorship, social Media Players and their influence and politicians influence and everything else. Becky . Ive seen that video a bunch of times its the sweetest video. It makes you think so much about everybody coming back, especially kids, and getting to see their friends again after a lockdown like that sweet video. Its nice to see it. Sorry to see it get turned and used in this way because its a video that ive seen many times in the lockdown thats made me pretty happy. When we come back, jim cramers first take on the trading day. Then are we about to see new lows for the tenyear yield. Stay tuned squawk box will be right back. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. To deliver your mail and packages and the peace of mind of knowing that essentials like prescriptions are on their way. Every day, all across america, we deliver for you. And we always will. Ever somethings gone mogotten into the office. M, i hear you. Feels like theres no barriers between departments now. Servicenow. The smarter way to workflow. Welcome back to squawk box. Want to get down to cnbcs headquarters jim cramer joins us now. Jim, its great to see you as to see you. As we head into this friday, we have green arrows. I think were going to have somebody else in just a moment whos got a little bit of a bearish view but as you walk into the friday, what do you do look, i think that this market has weird queues that it takes from it always surprises me when you see the oils lead because we always think that the consumer does better with lower gasoline prices but the consumer isnt driving that much. Its okay. We find ourselves saying, look at chevron but this market is craving bullishness. We had a little bit of a set back yesterday the market was down at the opening and came back. People just want to buy stocks we have analysts come on over and over again who warn us about how high stocks are. There are two pieces about apple and their Worldwide Developers conference theyre loving and price target boosting oil on apple can send the market on up. I got one for you, i dont know if youre watching, spotify is up. Holy cow everybody they sign moves the stock 25 bucks its incredible. Dont forget, people were worried that used autos and autos were going to be down. Youve heard phil. Not only is it doing well at home, its doing well again in cars and does that make sense to you, though . No. When you add people and you pay the amount that they do, the pay back is not as instantaneous as they think however, this market likes to react to broad names that have a lot of appeal and when they add them, then each time the stock goes up and i think that its kind of like in a netflix mode, when netflix adds a show and it goes higher. Its one of those things what are you doing for the weekend . I dont even know stop it stop it. Dont do that. We never have a plan. Why dont you do a campfire maybe well do a hike we could do a campfire i like that. Do you want to come up youre invited and i will be here. I want you to be happy. We do smores the market is fine. What do you got going on . Im fishing after this, man im going fishing. Okay. Im going fishing and were going for flute, not for striper. See, were doing something the pandemonium of the pandemic, we have to work at it, we do. We have to work at it. Lets just work at it we have to work to get out of it jim, have a fabulous weekend, we will see you in just a couple of minutes. Joe, over to you, my friend. Cramer doesnt know, i tried to go up there and you came down here knowing i was up there. Call his bluff seriously. They made me work last friday they made me work today. Ive had one day off this year frozen margaritas, come on. We do both of those things with the campfires if you have smores without chocolate you know that hu, that stuff rocks. Its got nothing in it whatsoever, and its vegan its so good for you we are open were pledging to lose money until mnuchin says we dont have to lose money. Our opening out on the sidewalks . We have a margarita stand. You ever put jalapenos in margaritas what time is it thats a stretch to start now. Its always the same time. Thanks. We should all go up to andrews, you know what i mean the tenyear treasury yield has slipped a bit this week as investors watch the rise in coronavirus cases. The yield is sitting at 0. 735. Joining us now president at investment srikumar your prognosis is so awful, that i hesitate you to heres where we are new lows on the yield, new lows on the stock market, below the march 23rd lows and no vshaped recovery, almost no recovery at all because of the second wave, have i got that right . You have all three of them right, spot on and i think they all go together theres no vshaped recovery because unless you have a bottom in terms of the coronavirus incidents and the discovery of a vaccine, you dont have an end to the Health Crisis second, this country is opening up and that is causing the equitymarket to go up really sharply. But opening up the economy without having a vaccine, without having a health cure, is not a positive, but an eventual negative you are trading temporarily higher equity prices for the much lower equity prices at a later point in time. What are we going to see youre going to see the valley tomorrow, youre going to see the republic contention a few months later all of this with people sitting together not having masks, and i think the illness is going to spread and once that happens, there is going to be an impact on the equity and the bond market look at what is happening in beijing, joe they decided that the first wave was over and they declared a victory. But earlier this week, beijing had to partially shut down many of the flights had to be stopped. It has not ended unless it is really, really ended that is the case i see continuing to be between 60 and 75 basis points as weve been doing in recent days. And then suddenly when you find the second wave is having an impact, the tenyear plunges recall thats what happened in march even though the day ended at 54 basis points on march 9th, the intraday low was 39 basis points and the change is going to be dramatic. Weve been talking about the tenyear i dont know whether its three years. Its at least two years. And its uncanny how correct you were about it. You normally all along were not forecasting equity prices. I know youre an Investment Strategy you got to think of everything but you were absolutely right on the ten year, but im glad i didnt take your advice on stocks and im not sure im going to take your advice now on stocks have you always been just as confident on being able to forecast equity prices as bond prices in the last three years, obviously, you would have missed a huge rise in stocks and you would have missed a huge rise 45 , just sticking to your bearish call on the or bullish on the ten year for the last three months. Let me answer you in two parts, joe first of all, i focus more on the treasuries than i do on the equities as a global macro economist, i look to the bond market to give me an idea of where the economy is headed. Youre correct weve had a divergence between the economy going at a pace in the last decade, compare that with equity that is have shot up, the valuations have increased. What was the cause of this, was a sharp stimulus in the fed increase, in the quantitative easing and that is continuing right now. Im saying, yes, you are correct in saying that the equities went up and i missed it because i didnt think the fed would be so irrational but right now the fed is increasing its Balance Sheets so sharply, so quickly that we have a disaster in front of us. So im not an equity strategy. It comes as a subsidiary to my look at bonds. That is definitely something a lot of people are talking about. And it could be the mother of all days of reckoning if that does come true and you will be vindicated along with a lot of other people well have to stay tuned and i hope youre not as right about that as you were about the ten year well hand it to you well have you back and talk more about it as we do this. Thank you. Thank you very much becky, andrew, im afraid to make plans with you. Come on up well socially distance. Happy fathers day, guy make sure you join us next week sidewalk sqwauk on the street is next good morning, and welcome to sidewa sqwauk on the street jim, you and i have had an interesting week as well, of course, as we get ready to wrap up trading, our viewers can see, were set up for a higher open with the s p futures looking up as much