To watch closely as the succession happens, david . Yeah. Its not unexpected carl it was done in unexpected fashion given so many things that are different right now at t was having its annual meeting and doing it remotely, virtually, and mr. Stephenson announced it during the course of the annual meeting, that as you said, he will be stepping down at the end of june to be replaced by mr. Stankey as ceo mr. Stephenson will remain on as chairman of the company until january of next year stankey will become a member of the board of directors taking the role of ceo. He is president and coo he got that promotion back a number of months but questions in terms of whether he would get the top job and whether the board of directors would support him for that mr. Stephenson made it clear that he was going to leave the company as its leader most likely this year and obviously choosing to move forward with that, despite the Current Crisis his 13 years at the helm of the company, of course, have been marked by his inquis stive nature he wanted to acquire tmobile, a huge horizontal deal stopped by the department of justice and came in for a good deal of criticism by shareholder Elliott Management this year, saying and reminding people of the 5 billion in value that was delivered to tmobile both through spectrum and through actual monetary penalties that at t was forced to pay when that deal many years ago at this point was stopped. The acquisition of direct tv which has been a difficult one in some way, added cash flow to the company, some saying enabling it to make sure its dividend was secure but at the same time the erosion of subscribers at these direct broadcast Satellite Companies is well known and then, of course, the time warner deal that mr. Stephenson oversaw as well, transforming at t into far more than a Wireless Company or delivery of satellite video but into one of the larger entertainment providers in the world. The launch of hbo max will take place soon i did sit down with mr. Stankey at the end of october. We were in los angeles when they unveiled hbo max and i did ask him about his desire for the ceo job. Do you want to become the ceo and do you feel the pressure to actually perform over this next period of time in terms of what were talking about here in order to potentially ascent to that job you know, ive been working for 34 years and i think in virtually every job that ive taken i always felt a pressure to perform and actually add value back to the business i dont think that changes or i feel any different about that. Ive got a lot in front of me to do right now this introduction of this product is incredibly important. Every job ive come into its always been what needs to change, whats something that can add value to the business and how do you focus on doing it well thats what im going to do right now and thats all im concerned about right now. What comes from it comes from it the beauty i have is i have this wonderful luxury in my life that i really dont have to work, i work because i want to work, and thats a blessing. Its a blessing for me im here because i want to do this and i want to do whats in front of me right now. Well, hes got a lot of in front of him right now as you know with that large debt load continuing at the company with the erosion of subscribers at directv perhaps has peaked at this point and with continued questions about the warner assets and the important launch of hbo max which is coming up quickly. Priced at a fairly high point, some in the marketplace wondering about that, although the current environment may be conducive for it john stankey taking over july 1st, carl, as ceo of at t. Randall stephenson, 60 years old, stepping down after 13 years. Stankey by the way, 57 david, certainly news of the morning and something that even President Trump has been weighing in on twitters just a few moments ago. Im curious about Elliott Managements role in all of this obviously theyve come out and pushed for executive changes at at t, says today that they, quote, support stankey as the companys next ceo how do you think that factors into what the priorities look like as he takes the helm . A couple months . Yeah. Its a great question that you ask, morgan. There are some who wonder, well, if elliott is on board, as they are, which i read a statement from them im trying to access again, basically saying they were supportive, there was a search undertaken by the board of directors, but we wonder what in particular is going to be the future of a directtv is there something that company can do there to potentially create value unclear. There have been plenty ofrumor in terms of what they might be able to do when you go back and look at the original letter from elliott they had a lot of suggestions for the company at that time they did kind of it wasnt an official settlement. They did come to a broad agreement, elliott signing on for what they decided to do, potentially taking costs out of the business and addressing what they said was the operational underperformance overall, but what it means with his ascension and elliott saying were supportive of it and whats to come, unclear, but some reporting to do there. Im looking at the broader picture here and randall stephenson, if im not mistaken, became the ceo of at t right at the beginning of the smartphone era, right around mid2007 i would argue that that that largely defined his time and he came up in that through the cfo track. John stankey, interestingly, came up through the cio, cto track and we have kont and 5g looming as challenges. Those will probably be pretty important, at least in the early part of his tenure in defining the job, wont they . Yeah. They will. Certainly 5g, of course, is a key cycle right now that theyre in the midst of. At t reporting earnings, giving some sense that permitting problems in the current environment may slow things a bit, but its funny for me because the company has talked so long about diversifying and some of us saying almost running away, i would say that and some others would from its wireless business, not fair perhaps to say that, but diversifying away from the wireless business and thats what theyve come back to when they talk about creating value at the company right now the strength of the wireless business and well see what happens right now given the inability of people to potentially pay, whether or not theyre going to be hindered in any way and rolling out 5g across the country, whether the devices will get in the hands of consumers so that they can use them all questions that mr. Stankey is going to be dealing with. Jason kilar was put in to take over warner media recently as well he has that squared away in terms of leadership. David, thanks for that. David faber on stephenson and stankey. That succession at at t. Getting breaking coronavirus news good morning, sue. Good morning, carl. This concerns a study done and published just now by the journal of the American Medical Association and basically what it is saying is that the treatment of covid19 by hydroxychloroquine and chloroquine should only be done in a hospital setting. The study that was done basically has raised some questions about the efficacy of the use of one or more or the combination of those drugs this has triggered basically it was a bad outcome the primary outcome in many patients is death. That triggered an fda response saying do not use hydroxychloroquine or chloroquine for covid19 use outside of a hospital setting. They have been shown not to be effective for treating or preventing covid19. Hydroxychloroquine and chloroquine can cause abnormal heart rhythms such as qt interval pro longation, measured on an ekg, measures the times it takes the ventricles in the heart to contract and relax. The combination of the drugs combined with zits row maya sin lengthsens the time. For patients that have underlying heart issues that is not good they say it also can cause a dangerously rapid heart rate these risks increase when the medications are combined with other medications that prolong the qt interval, such as the antibiotic azithromycin used in some covid19 patients without fda approval patients with other Health Issues such as heart and Kidney Disease are likely to be an increased risk of these heart problems and death its a big warning by the fda, the study by the journal of the American Medical Association did not show good results for either one of those drugs or the combination of those drugs with azithromycin were going to watch and see what happens, but not good news at this point. Morgan, back to you. Seue herera, thank you for te latest more on the markets well turn our attention back and joined on the Cnbc Newsline by jpmorgan Asset Management phil and Morgan Stanleys chetan ahya. Phil, ill start with you. Just taking a look at the market, the s p specifically, the fact that weve been range bound not only today but in recent trading sessions after we saw it retrace 50 of its decline, where do you see it going from here and what do you see as the biggest potential catalyst is it still medical headlines like the ones we got a moment ago from sue herera or are there other pieces, other factors that are going to continue to drive the Market Action . Yeah. Morgan, good morning greetings from the great state of new jersey. So when we as asset allocators we made a very, very short move by taking our equity allocation in our multiasset portfolios by about 20 . That was a very bearish stance at this point, though, morgan, you know, were not were not nearly as bearish as we were back then and while still underweight weve replaced almost 50 of that risk. I think its driven by the confidence around policy weve spoken as lot about it the fed stopped, you know, libor from increasing, corporate debt is starting to act as a good diverse fier congress has responded much more than what people were expecting through is Small Business loans and Unemployment Insurance thats whats being digested by the markets in terms of being range bound. The question now remains, what is the right multiple for the market given this extraordinary policy response, right, and we areassuming in our base case that q2 will mark the low point in Economic Activity in this crisis and i think thats why you shouldnt really lean as bearish and were taking our cues now in this kind of final part of the standard reopening of the economy and ill also remind you with the stock market, there is a historically compelling dividend yield versus where fixed income is right now. Treasury rates so, so low, that worked in a major way in the last cycle and i think were going to continue to point to a tailwind on stocks being so compelling versus debt and the last thing ill say as asset allocators we need to think about the right defense, both government bonds and Investment Grade credit, yielding 2 to 3 over treasuries right now. Yeah. Just to followup on that, what is the right multiple for the market where do you put it . Were doing the same calculation everybody is doing if you see a material reduction in earnings, thats worse off than where we were in the beginning of the year. What we are getting, okay, is the fed is basically buying anything thats not nailed down. If the fed walks into your store, prices are going to go up i think that the average multiple at 16 times that weve seen over multiple decades is probably too low in this environment, even with the material reduction in earnings and growth i thinks the market is looking through that and expecting that. Thats why we had the policy response i thinks the multiple should be higher than longterm average in the near term given this just extraordinary historical wartime spending from congress and the fed really buying everything they can to stabilize capital market. Good morning. I want to go back to this headline we just got on hydroxychloroquine and because its something that president had touted as a game changer and now the scientific studies are showing that the primary outcome from taking it can be negative outcome can be death. Do you expect any Market Reaction from that or are we mostly looking at things like the amount of testing thats available, whether it is virus testing, Antibody Testing and the ability to get back to the economy opening up in various states yeah. I think the market is probably going to be focusing more on the staggered opening that we were discussing earlier on. Thats basically watching hows the states are beginning to reopen i think the rule book right now for the market is still to look at what had happened in china, so once the number of new cases peaked out in a few weeks you started to see actions being taken to reopen. In the white houses guidelines, if you take that into consideration, 14 days after the new cases peak and they are declining, you will see opening of several states. And so we are actually looking at 28 days, not 14 days, because phase one is not [ inaudible ] meaningful opening in 28 days we will probably if you take the data on the new cases peaking out, by middle of may, you would have about 48 of gdp. The states which are accounting for 48 of gdp will begin to see meaningful opening if you take that guideline as well as the data an new cases into consideration. So i think the market is probably going to be more focused on that and above anything that indicates that new cases are not peaking quickly or not rolling down, that will be a bigger factor weighing on markets mind than the news on therapy drugs. So chetten, i know one of the things youve written about recently is reopening in china and what Economic Activity has been looking like there. How much of what weve seen take place in that country can actually be applied to the u. S. And where were starting to see the reopening plans emerge. We are seeing a lot of similarity, actually the only difference is that the scope of the outbreak in europe and the u. S. Has been much bigger so we are kind of observing that all the activities in terms of reopening is lagging china by about three months, that is that china started to see the outbreak a bit earlier and then the u. S. And europe has had a wider scope of the outbreak. There is a lot of similarity and things which were learning and were seeing something similar going on in europe we think the Global Economy is going through a rolling bottom chinas data bottomed in february europe is bottoming in april and the u. S. Will also bottom in second half of april then we are going to see opening of most of the places or several of the parts of u. S. And europe in the month of may. The Economic Data will be recovering from month of may for u. S. And europe. Its pretty much following the china track with a different level of lag because of the scope of the outbreak. Thank you markets trying to stay out of the red today when we come back well talk to bob swan of intel on the heels of their earnings and guidance which was kind of nice to get in this environment where so Many Companies have pulled. Back in a moment it is an understatement to say that i was extremely worried. I was overwhelmed. And i didnt know where to begin. I came across sofi and it was the best decision of my life. I feel cared about as a member. Theres no extra costs for it or anything like that. Its all kinda like, through the app. Were getting a super competitive Interest Rate on our money. Were able to invest through the same exact platform. I really liked that they didnt have any hidden or extra fees. Sofi has brought me peace of mind. Truly thank you for helping me prepare for whatever the future has in store. Its all because sofi let us see light at the end of the tunnel. So thank you. Thank you. Intel shares are under pressure down about 2 after earnings we have analyst lowering price targets and raising and maintaining. Well talk to ceo bob swan next. Stay with us every Financial Plan needs a cfp® professional confident Financial Plans, calming Financial Plans, complete Financial Plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. A beat on the top and bottom lines has not been enough to keep intel in the green this morning. The company is one of the few to issue guidance this earnings season saying the Current Quarter is tracking just below the streets estimates questions on gross margin here as different analysts interpreting different ways. Joining me now is intel ceo bob swan good morning, great to see you good morning, jon, how are you today . I am doing well i am thankful that you are too lets start first with a broad look at this quarter and where intel is tell me about the workforce, how stable is it, your partners and customers, where is demand, do you see a way out of this crisis that were in . Yeah. Thanks, jon. First let me start with the quarter we just closed really it was an outstanding quarter for our company. 23 top line growth. Our operating margins expanded 10 points. Earnings grew over 60 all in all in the First Quarter it was even better than we expected when things started out. What we saw during the course of the quarter was the resiliency of our workforce we started out, when the covid19 began by really focusing on the welfare and safety of our employees first and foremost secondly, ensure that we are delivering for our customers because in so many ways, they were counting on us more than they ever have third, as you and i spoke time giving back to our community in these troubling times. Through the course of the quarter, our Global Supply chain delivered more than we expected for our customer and our employees are safe and we go into the Second Quarter having raised our outlook for revenue on the top line. So far so good to the first half of the year. As we go into the second half of the year things are too cloudy at this stage to give insight about what to expect for the full year. The first fou