Reopening process going. Look, it does feel that there is a very self confident sense by governors that its time. I think that the president is so oriented towards its time, and the president is soed ed ed eet in having a vaccine by years end, that theres an element of two different worlds here. Theres the real world influenced by the president saying open it up, people want to do it, and the stock world influenced by Warren Buffett who said i sold the airlines because that industry has fundamentally changed. Its a big gulf. Really the largest ive seen amazing. David . Sorry, carl weve been talking about that for weeks. The many phone calls that you or i will have with Business Leaders who are focused on maintaining their liquidity, focused on just being around to fight another day come the end of the year. The many ceos who join us on air who constantly talk about their businesses not coming back to the levels they were prior to the virus for maybe two or three years. Now they may be
Vornado, Regency Centers and kimco down 40 this year on growing concerns about their tenants ability to pay rent as most nonessential retail remains shuttered across the United States back to carl eric, thank you very much good morning welcome to squawk alley. Im Carl Quintanilla with Morgan Brennan and jon fortt is back after a week off coming to you live from separate location. Major averages off of the morning lows dow was down 500, now down half of that. A big week of earnings, ibm tonight, netflix and others in the days to come and then, jon, oil is a major story as the front month contract does expire tomorrow. It is thats had a big impact on the markets overall. Im looking at all kinds of retail and ecommerce as well, making some strong moves in the past when i was off and over the past month as well, guys that is where well start this morning. Lets bring in heath terry, Goldman Sachs internet analyst good to see you. Yeah, good to see you too, thanks, jon. So as i was just sayi
Congress is negotiate its next round of Coronavirus Relief for the economy and weve seen a stunning move in oil crude was higher by 2 now down 9 as we await the final details out of the opec meeting. Energy sector now word on the s p. Yeah, been a real reversal there. Coming up on todays show, dan niles tweeting a warning about the rally. Hes going to join us with the risk he sees at these levels, plus, well speak with max levchin. Well ask what his micro loan customers are buying amid the shutdown and his read on the state of start ups right now lets focus on the big stories were watching today though. Steve liesman has detailes on te feds big moves and kayla is following the battle for more stimulus on capitol hill but steve, were going to go to you first to talk about the fed. Yeah, morgan, just quick moves the fed has announce nd the last hour. The its reduce uing the purchases of treasuries and mortgages. Treasuries down from 30 to 50 billion a day. Down to 15 from 25 apparently,
Gone red as weve gotten more guidance on Net Interest Income on the conference calls. Yeah. Absolutely the banks are in focus as this first day of earning season in earnest really kicks off one of the names im actually focused on that reported this morning is fastenal, distributors, thats what they make and they provide those distributors to quite a variety of industrial excuse me industries and end markets, early indicator of the state of the industrial economy, youre seeing those shares pop today in part because at a time where so Many Companies are cutting their dividends they actually raised their dividend and they noted that theyre seeing product produced significant shifts in business mix and that march sales of the fastener products declined 10 on a daily basis as industrial activity slowed but their safety business grew 31 as they were sourcing and delivering critical ppe supplies to the marketplace why do i bring this up this is essentially what were seeing and i have a feelin
White hou on remdesivir and looking past chinas first gdp contraction in 40 years oil below 18 is something to watch. That report out of stat news reflects how much hope there is, whether its remdesivir or Something Else for an effective treatment going into the fall. It does it may also reflect thin trading having spoken to a number of people this morning who are wondering whether or not you can have big moves in the market with just a billion dollars of futures being bought, which may seem like a lot, but is not. Because, you know, you have a lot of Fund Managers who tighten risk, they took down their net exposure, perhaps they didnt kel quite a sell quite as much its unclear how much buying power is needed to move the market in a significant way. Remdesivir itself is important were all hopeful that it is going to actually have an impact on the outcome of the disease for those who get very sick and end up in the hospital but it is not going to be what we call a chain terminator it is