A move like we saw yesterday doesnt typically begin the recovery from a dow turn the likes of which weve had, does it no this is one of the greatest oneday bull markets ive seen. You had to come in at the darkest hour, if you didnt, youre coming in on total quicksand. We had a move that was so accentuated by the machines, algorithmic. They exacerbate which ever direction it is. I hate it as much when it goes up as when it goes down, it brings in a lot of people who think maybe its all clear its not all clear its almost like youre lucky if you bought yesterday and you should ring the register today weve seen prices that will hold up but everything ive heard this morning is about how were ready and open for business, but no one talking about going to where theyre ready. Boeing, yeah, thats great you want to fly . When do you want to fly again . Thats a great question, jim. When you talk about what life is going to be like once the crisis passes right or when people go back to socalled normal life, which the president indicates he would like to see as soon as 2 1 2 weeks from now or so, you still wonder what behaviors will be like will people be flying . When will people stay in a hotel in a significant way when will tourists return to any part of the country . Either within or from abroad so many other constant things we can go through i dont know the answers do you no, but this is really the focus. Weve seen the package go through. Its a great stimulus. We know that there are people weve got all the figures who will get some money. That money may help them pay its almost like lunch money for some people. Lets take the industry that was at the epicenter, you see numbers alongside south korea and taiwan you have an industry which we keep hearing about from the president which needs to be saved. But secretary mnuchin is a Good Business person. Why do you save an industry that may be years from now it will come back. Maybe it never comes back. The world has changed. Its changed for office buildings. You and i heard tom barrack talk about maybe the mortgage Industry Needs help. Will we still have huge offices when we know it turns out that zoom and webex work really well . I think its time to think about the country after we beat this its different you really believe you dont believe that we are social beings. There is a need to want to congregate and be with each other, even in the workplace granted i think many people are understanding they have an ability to work from home that perhaps they didnt necessarily fully realize previously that doesnt make it less likely that theyre not going to want to congregate with coworkers and that work is still easier done in some fashion you and i will be back together one day, right . Im looking forward to that. Were better when we do that i agree. I do like companionship. We like to Work Together we feel the program is definitely better. If im running a company and trying to find out how to meet the esg, the new world, what a great way to say i just cut my Carbon Footprint everyone is staying at home. That may be an imperative. The rents have to come down. I dont think Many Companies want to pay the same old rent when they have congregation rooms but not necessarily people being at the office. I look at behavior you can argue its too early to think about behavior do we need all the airlines . Do we need all the Oil Companies . Do we need cruise lines . I want all those people from cruise lines to get jobs im not antijob. Cruises are a great, inexpensive way to take a vacation but theres a pandemic centered on some places and some things if you cut the price to nothing a round trip to l. A. The other day, 59 round trip to l. A. You want to take that . Sounds like a bargain. Does it sound like a ticket to a hospital if there is a hospital . Ticket to a ventilator if we have ventilators thats a ticket i dont want to ride i understand that i want to talk more about what i would assume we agree on will be the continued conversion to the cloud by so many businesses because of the trends youre talking about. The overriding story yesterday, in part because it sent the market higher and this morning is the legislation we have gotten out of congress i want to get to eamon javers who has not just the details that were aware of but some details nobody is aware of yet fill us in thats right. So this is a handshake deal last night. The bill text has not been released yet were scrambling to figure out whats in this massive 2 trillion bill. Ive been on the phone texting with Senior Administration officials. Some of the details of whats in there were starting to get from sources. One is that the payroll tax cut that the president was pushing for is in this deal, but its only on the employer side. Remember, the payroll tax is paid by employers and employees. Originally it was proposed that the tax cut would be on both sides of that equation now im told by two Senior Administration officials that the payroll tax cut is in this deal but only on the employers side, not only the employees side employees would benefit from the direct checks that theyre getting, also from this enhanced unemployment insurance, but not from a payroll tax cut employers this is not free money for them they would have to pay this back, the payroll tax holiday on a staggered basis over the coming years think of it as you have to take the payroll tax holiday in 2020 and pay that money back in 21, 22, and theres a formula in there for how companies will have to do that. On the airline front, that was the major stumbling block that kept this thing delayed late into last night. They agreed to the deal just around 1 00 amt las. M. Last nigt there are direct grants to the airlines that do not have to be paid back, but they must not make layoffs through a date sert certain later this year. Theres some period of time in here in which the airlines have to agree well take the money and not make layoffs there is a provision here for the government to take an equity stake in some of those airlines, and taxpayers could share in the upside if those Companies Come back the president is aware and did agree to the specific provision thats in there that was highlighted by Chuck Schumer last night which prevents the entities controlled by the president , the Vice President , members of congress and others to take advantage of aid through treasury that would specifically seem to be aimed at the president s own companies that he owns the president is aware of that provision and did agree to it. One more carveout that we don have is specifically whether or not that provision would apply to aid coming from the fed or if it just applies to the aid coming from the treasury, which would be more politically directly controlled by the president himself. A lot of new details there that payroll tax cut will be for employers only not the employees. Eamon, so many questions as well before we get back to our conversation, the 500 billion being allocated for liquidity assistance, part of that is that 60 thats going to the airlines. How is that going to be distributed . I feel like theres a lot of questions in terms of language 50 million levered up by the fed, 4 trillion. Who gets it . 500 employees or more . 500 employees or less . Do you have details . I dont have details on that yet. One of the concerns democrats had about this was that the 500 billion would be under too much direct control by the treasury secretary. They wanted an Inspector General and a committee of oversight on capitol hill to oversee that, to look into that, see how it was being spent. They did get that. Treasury did agree to that in the end. So there will be an Inspector General watching over all of that to look for fraud and abuse in it. My understanding is that there would be a lot of discretion here for the Treasury Department in terms of doling out some of this money we have to wait and see what the details are as they emerge through the morning. So much to keep an eye on we appreciate you doing it for us as we all try to stay on top of this. Jim, just give me your take here in terms of what youre hearing specific to the legislation and how its going to be implemented. So much of it yet to come. I think theres some industries that are easier than others boeing up literally 50 from a goldman upgrade. A lot of that is because its so simple to give boeing money and have not a trickle down but actual payments. There are 1,700 companies that supply parts to boeing, 2 Million People getting the possibility of the restart of the 737 seeing an influx of orders of all places, china. I come back and i say that industry is easier what happened to the small and mid size business . Payroll tax cut for business for the managers, thats heinous. Its completely heinous. We help the rich people . That wasnt the purpose of what i heard from secretary mnuchin or Speaker Pelosi talk about the idea was to get money into companies to make it so the businesses stay open Kevin Johnson yesterday talked about a 30day pledge, pay whether they open or not i dont think were talking about the idea that a payroll tax cut holy cow. That will help a dry cleaner or Restaurant Owner wow. Hey, man, those people have just been had that is the key question here, how you get money in the hands of there are direct there are direct payments made, but you referenced it earlier. Some of it may be lunch money at this point how you actually are going to be able to sustain so many workers out there that weve talked about. Hair salons and nail salons, gyms you go on and on it was a great idea i hope it survives, the loan to those companies thats forgiven if they keep their people on. Now that is substantive. The idea that the payroll tax cut you know what rich do like to get richer its an amazing thing. It worked in the beginning of time i dont think that were trying to get a new social order. Speaker pelosi was under heavy pressure to get stakes in all these different companies, so when their stocks go up, cash them in, help the treasury because the treasury is paid by working people that didnt happen in return, what i hope that did not occur as part of the package was just a terrific benefit for those who are already wealthy. I think we have to focus on the fact they did come up with that loan package that loan package will make it so we can get open for business if people are willing to be with other people in a restaurant, which im not sure about yet i dont know, david. I love you, i love your family, come easter i cant see breaking bread with you no, i look forward to the day we can do that so do i i dont know when that is other then when there are antivirals that are effective so people are not concerned if they contract the virus. The day that comes, if theres a vaccine, that will erase our concerns, i guess. Right and when the warmer weather comes and perhaps the transmission rate declines dramatically in the new york area theyre in the midst of a crisis. Other parts of the country are dealing with potential overwhelming of their Health Care Systems and thats where things stand. A lot of the country is not like that no. Its the quarantine, if you were in new york, thats very daunting theres some incubators in new york that people may not have in other areas that are similar to what were seeing in madrid, which is now trying to unfortunately, may surpass milan. We have to stay focused on that. We do have the the beijing shanghai model, hong kong model, theres some reinfection there and then the milan madrid model. I dont think anyone knows which we are yet in new york, it sure does unfortunately if its as much as Governor Cuomo is talking about, well be on the milan madrid path, we wont be on the beijing path. Its worth knowing which one we are before we decide to play happy days are here again. Yeah. Obviously the shortage of ventilators is a key part of that and other equipment as well and still waiting on testing though it is finally really ramping up do you have testing in your area not as quickly as wed like right if we tested like in south korea, then i think i would be willing to give you a high five like we did every morning for the last five years. But id like to see the tests. Right you to im contactless with everybody, including my wife, which is odd, contactless with your wife and kids, s suboptimal that is suboptimal. Sorry to hear that its amazing how you dont like your same when youre going to bed with the facetime im starting to do the facetime happy hour. Have you been doing that i did a facetime birthday the other day. We all did zoom. I might as well invite eric in, the ceo of zoom. I recommend it. Jim, when we come back from this break, you and i will talk a bit more about stalks, the oldfashioned way we used to given the moves weve seen squawk on the street is right back life isnt a straight line. And sometimes, you can find yourself heading in a new direction. But when youre with fidelity, a partner who makes sure every step is clear, theres nothing to stop you from moving forward. Welcome back to squawk on the street as we count you down to an opening bell in about 12 minutes from now the floor of the New York Stock Exchange remains closed. We remain in different locations as well. That doesnt stop us from doing a mad dash this morning, jim nike, i know, is a feature, having reported earnings as well first, david, what day is it . Its hump day thank you i need some normalcy without normalcy and continuity, its too rough to be able to handle these times nike, rather extraordinary quarter last night reminded me of the days before covid. One great thing about this clinic, you learn to do a conference call, he talked about this, china. People got back to work and retail traffic began improving today 80 of stores in china reopened the numbers are very good in china. Which is why you will see this stock up one thing thats amazing, they very quickly shifted to an online strategy where necessary, but theyve given you a template about what can happen when you have a Worldwide Company with a great Balance Sheet that has tremendous reach and a product that people want i recommend anyone reading this to sense there is a path for a lot of International Companies that make products that are in strong demand. The path is the nike path. This is going to be studied one day in Business School they still have Business Schools now that we have they probably proved to be too expensive its absolutely the clinic were looking for. It made me feel like, you know what business will come through this. Not Small Business i predict many bankruptcies, but big business with big Balance Sheets nike, starbucks, theyll win you mentioned starbucks as well yesterday Kevin Johnson talking to us about how china is coming back online. We didnt get the traffic numbers from him but it is following a similar trajectory in wuhan, people are just starting to open up. We hear and see pictures of night at china, it looks like people are being forced to do things forced to shop i dont know im waiting for Shanghai Disney to open. Disney has enough clout, they can say you know what . Its not yet right disney is trying to put not that nike is doing anything wrong. Nike, you can do online. Starbucks, welcomed in that community. Disney does not want to be in a situation where they start it and someone gets sick. I commend them they certainly are under presh v pressure from the government to open and theyre forgoing revenue in favor of customer safety and health. Well come back to names like disney which along with others had an up day yesterday. Right now the market not looking nearly as strong, it is a mixed picture given the performance of boeing nike also going to be up sharply. Were back after this. We have an opening bell in about nine minutes i know that every single time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. During turbulent times, consider protected Lifetime Income from an annuity as part of your retirement plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. You should be mad they gave this guy a promotion. 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. But when allergies attack,f any the excitement fades. Allegra helps you say yes with the fastest nondrowsy allergy relief and turning a half hearted yes, into an all in yes. Allegra. Live your life, not your allergies. Welcome back jim, at the beginning of the show you were talking about how this crisis will change behavior for the longterm. I briefly mentioned something that has come up in a number of conversations for those who are looking for opportunity. The conversion of the cloud. We talk about it all the time. We talk about it in our normal days, its been a key theme of yours for years. That will pick up the pace given all the things associated with that totally ive been dealing with a bunch of companies that are very oriented towards that crowdstrike. Cisco. Cisco is a behemoth, theyre talking about huge numbers minutes being used on their video. Also if youre in singapore or india, doesnt matter, youre on one chat things will thing. Thats cloud based if youre brickandmortar, it gets worse and worse the layoffs. The Stores Closing if you look at the stock prices. Im a huge believer in david simon. I wish he would come on. Hes great don wood, too. Steve tanger, 6 stock, is that model where you want to go i think amazon can go to 3,000 in this Market Amazon Web Services must be just c