Exciting growth again. The question is when and in the meantime were going to shore up that Balance Sheet and make sure weve got that cash to make sure we can pounce on the end of it one of the things were thinking about is, who do you want to be when you come out of this. All of us are thinking about that so, you know, weve got still a strong recruiting team in place, a team who is interviewing people every day so that on the other end of this, all the superstars who are out there can come work at shake shack we dont know when that day is, but we know its coming. And when it is, we want to be there, ready to allocate that capital that we have to get back to growth as soon as we can. Randy, thank you so much for joining us thanks, everybody. Keep us posted. Ceo of shake shack. Sara, that was a good interview. Well see you on closing bell this afternoon good morning, im carl quintanilla. Welcome to squawk alley joined by Morgan Brennan and jon fortt. Dow is well off the lows of minus 324 today. Were holding 2500 obviously a lot of moving pieces, jobs number, oil headlines and remarkable guests already, whether speaker pelosi, the ceo of 3m with david this morning, ceo of ux Brian Moynihan, theres a lot to watch. There is. Weve got the launch or the beginnings of the launch around these loans for Small Businesses as well, so all eyes on that, too. Speaking directly to the fact that we did have Brian Moynihan on to talk about that. Its incredible how quickly the banks are rolling out these programs right now, a process that would normally take many months and done it basically in a week its one to watch. All right lets bring in this morning david harrow, chief Investment Officer on the newsline and ed, our friend, the president of Yardeni Research good to talk to you. Hello tgif we have the weekend coming up, folks. Ed, thats right hi, ed. Hi. You were good, ed, at trying to ferret out some silver linings. If we had to build a list what would you put on it . This is a great virus crisis, three crises combined into one, its a Health Crisis, its an economic crisis and its a financial crisis im not a virologist but im looking for good news there if theres any to be had and, you know, it looks like abbott labs may have a rapid test, thats the good news. The bad news is it may take a while to get enough tests throughout i am encouraged by some news that there might actually be a vaccine coming out of some University Lab thats that has a lot of experience with sars and mers and they seem to be making some Good Progress and then i was all for masks i think we should we shouldnt go out of the house without wearing masks. If were all wearing them, i think theres some evidence that it reduces the likelihood well infect each other. Thats the Health Crisis im not a virologist i have my opinion the way we all do the good news for the markets is on the financial front this is like a war we have a health front, economic front, and weve got the financial front. And last week on monday, the fed decided the heck with the bazookas or helicopters lets get the b52s out and we got qe4 forever. Which is kind of a bazooka helicopter this is b52 money i think its stabilized the financial front quite impressively so thats a good point. David, from a stock standpoint, i see citi this morning is out saying they think deleveraging from a positioning standpoint is mostly over. So is this nowa period where w chop around between 19 and 22 k and await medical news like ed says, await news on the effectiveness of policy response well, what we believe is that and this is looking at more the european financials as you know there have been a number of programs, a number of fiscal and monetary programs, despite this backdrop help from governments and monetary authorities, these businesses have fallen 40, 50 and some instances over 50 im talking about the blue chip european financials, Companies Like a b and b or a lloyds bank and we believe that this is way, way overdone, givens the strength of the Balance Sheet and the monetary help thats happening. We think this just really provides an opportunity for when we do see the light at the end of the virus tunnel and we know the stock market tends to be kind of a predictor, but when we see the light, youll see people starting to feel good and buy some of the beaten down stocks we actually think this is a very Good Opportunity weve been, i dont know what percent, we are through the Health Portion we are through this crisis, but it will end eventually and when we see the beginning of the end you will see a strong reaction on some of the beaten down share prices as i mentioned european financials and even some of the Consumer Discretionary ed, i want to talk about the potential recovery what do you think is going to determine the shape of that . Does it have to do with how many Small Businesses survive to come out quickly . Does it have to do with what Consumer Confidence looks like on the other side of this . Well, its a really unprecedented situation we have here in some ways, were clearly getting shockingly terrible economic news, but its not surprisingly terrible, and so weve had the two weeks of terrible initial unemployment claims todays employment report was bad, the Household Employment number showed as loss of 3 million jobs but the markets arent going on a dive on this data because they already anticipated all this so the worst of the second and Third Quarter real gdps are, assuming we can get out of this thing in time for a recovery in the Fourth Quarter so the worse the second and Third Quarters are, minus 15 to 30 for real gdp at an annual rate during the second quarter, maybe half that decline in the Third Quarter, i think that does set the stage for maybe a 20 rebound in real gdp in the Fourth Quarter but this is just arithmetic. 20 looks amazing, but thats amazingly good after amazingly bad. Then i think the real issue for the stock market is 2021 as long as from here on we dont give up hope that 2021 is going to be a better year a recovery year, where earnings maybe dont go back to where they were in 2019, but recover a lot of what was lost this year, i think the market is going to make is working very hard to form a bottom here between 2300 and 2400 on the s p 500 and i think we can end up the year above that i sure hope so. That would be good weve had such a mixed batch in terms of some of the numbers getting put out in these types of discussions on our air. David, one of the other things thats in focus right now for the market is, dividends and share buybacks you mentioned european equities. Bae, a very big, prominent defense contractor in europe was one of the latest this morning to freeze its dividend it does seem like for better or worse these types of payouts, these types of programs are falling out of favor right now i get it for good reason, especially depending on the industry and the sector youre looking at, but when you look at the relief measures in the c. A. R. E. S. Act and what that could mean in terms of companies that get government assistance, are we going to see a reshuffling and rebalancing from investors based on some of those changes and longer term do you think theyre here to stay well, i think certainly if a company is in need of capital or if they are accepting aid from the government they need to be very, very prudent with distribution policies. However, if a company has a very, very strong Balance Sheet, i think the company and managements and boards have to think about their shareholders and who are the shareholders this is what i think the media sometimes and the politicians forget the people who own these stocks are retirees, are people who have money in their 401 k , endowment funds, charitable organizations, that have money invested in the stock market i think we have to think really twice about hammering too hard on companies that have strong Balance Sheets who want to pay dividends. Stock buybacks, another situation. Something that we can set aside for now, but when were looking at Dividend Payments and the fact that many people actually look forward and rely on Dividend Payments, we have to introduce some balance into this discussion i think just automatically to have regulatory authorities Pressure Companies not to pay dividends in 2020 is not the right reaction i think you have to look at it case by case and where a company does not need aid, it has a strong Balance Sheet, i think they should not be discouraged from paying their 2019 dividend. Then i think the second part is when the storm is behind us and i anticipate a lot of these companies will end up fine afterwards, then i think its time to revisit paying those 2019 dividends and weve heard from some of our companies thats what they hope to do later in the year well see what that yield does over time, guys david, ed, have a great weekend. Good to see you both thank you. Thank you for having us and we just heard the latest numbers on Coronavirus Infections in new york from new York Governor Andrew Cuomo here he is moments ago the curve continues to go up. The number of tests has reached a new high we did over 21,000 tests thank you to our great Health Department we have over 10,000 new cases. 102,000 total tested positive, 14,000 hospitalized, 3700 icu patients, 8800 patients discharged, thats good news number of deaths highest single increase in the number of deaths since we started 2300 to 2900 deaths. You see the totality for new york state, 102,000. New jersey, california remember when this started new york had airports that were designated entry zones this is an international destination, International Hub we had people coming from across the world sooner and at a higher rate than anyone else. Total hospitalization, 1400, thats also a new high daily icu admissions is down a little bit but you had more deaths, you have more people coming in to hospitals than any other night also more people going out which is obviously the ebb and the flow thats coming in and out of the Hospital System. That was new York Governor Andrew Cuomo moments ago recapping some grim statistics out of the state of new york 102,863 Coronavirus Infections now deaths up above 2900 from around 2300. Nearly 600 more deaths in the past day as the crisis continues, President Trump going after 3m in a tweet last night, the president writing, quote, we hit 3m hard today after seeing what theyre doing with their masks p act all the way, big surprise to many in government as to what they were doing. Will have a big price to pay p act, seeming to refer to the defense production act, how he referred to it in the past on twitter. We spoke with 3ms ceo mike roman on squawk on the street and he pushed back hard saying 3m is going above and beyond to support the United States without abandoning other countries entirely take a listen. The idea that 3m is not doing all it can to fight price gouging and unauthorized reselling is absurd. The narrative we are not doing everything we can to maximize delivery of respirators in our home country, nothing could be further from the truth we are doing everything we can to maximize our efforts and to fight covid19 and to support the Health Care Workers here at home in the u. S. Carl, you were a part of that conversation mr. Roman seeming to me to do everything he could not to directly hit back at what the president is saying, but going point by point both on whats happening with those masks and respirators and what 3m is doing net importing into the United States right now and how, if they are forced to do some things that the administration seems to want them to do, it could hurt the availability in the u. S. , carl yeah. Remarkable the difference in tone, guys, between the statement that 3m put out, on the wires and which we tweeted out, and what he said to us on air. Not just about the relationship with the administration, morgan, but about gouging in general or some of these supplies and respirators, unethical and despicable is how he put it to us yeah. Definitely some strong words used there and said net importing respirators to the u. S. And the respirator production by 3m is going to double by year end, but in general, weve heard from the ceos now of some of the very biggest multinational Industrial Companies all u. S. Based in the world on cnbc in the last 12 to 18 hours and theres been a lot of similar themes running through those conversations, the Coronavirus Response efforts and how theyre gearing up production around prevention and also, you know, treatment, but also were hearing about all of the furloughs and the layoffs that are starting to happen within the broader industrial sector as well, right now, going back to the march jobs report, 18,000 jobs lost in manufacturing. A very small number versus the leisure and hospitality sector where we saw the lion share of losses you have Companies Like ge furloughing more of their aerospace and aviation workers these are the jobs, even though a smaller part of the economy, are outsized in terms of pay the one area i would say is holding up within industrial right now is actually defense and thats something greg hayes, the now ceo of raytheon technologies, which officially merged today and it was also on cnbc, talked about as well, that the military contracts are holding up as other areas Like Aerospace are cratering. Were going to take a quick the jocial break as you can see all mar averages are lower. Stay with us ptions trading, and, ptions trading, and, it feels like im just wasting time. Wasted time is wasted opportunity. Exactly. Thats why Td Ameritrade designed a firstofitskind, personalized education center. See, you just oh, this is easy. Yeah, and thats oh, just what i need. 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For more information on how you can stay connected, visit xfinity. Com prepare. Welcome back big tech using Artificial Intelligence to battle the spread of coronavirus and joining us now is the cofounder and ceo of c 3 ai tom seeboll. Great to see you you cofounded seeboll systems long ago, kind of sold that to oracle youve been in tech and in Silicon Valley a while, since the mid80s. You ha youve seen a lot of crises. Tell us now how is tech weathering this one . How long lasting do you expect the effects to be, both to startups and Larger Companies . Oh, i think this will be a very significantly deleterious economic event in fact, its not an economic event. Its a biological event with Enormous Economic deleterious economic consequences. I would expect to see the long tail of this in high tech be quite substantial with basically any company thats not in a position to generate cash. We can see that, you know, they will be in a lot of trouble and likely out of business because there will be no sources of capital. How Many Companies do you expect that to be in terms of share of the market . Well, i have seen this a few times in recessions in, you know, after 2000, in 1989 when we went up and down Silicon Valley and the buildings are transparent and unemployment is very high and commercial real estate is cheap and were going to see a clearing of the market again. I would expect, you know, five to eight out of ten of the Software Companies weve seen swirling around in the last seven years will likely be out of business. Wow dotcom bust all over again sounds like. I want to talk about what your company is doing to try to combat this in partnership with microsoft and some Research Institutions tell me what you think youll be able to accomplish and how soon . Theres three efforts were involved in the at c 3 ai. Were work