Transcripts For CNBC Closing Bell 20240713

For the country and the economy with ian bremmer who says we should be thinking in terms of three years. Plus, well speak with Kevin Durants Business Manager about the lockdown of the sport. 59 minutes left of trade iing. Lets focus on the big stories mike is tracking todays Market Action near the highs of the session. Phil lebeau watching boeing dragging down the dow. David faber covering the executive shake up at at t and kayla on the latest round of government stimulus. Mike, first you on what were seeing slight gains, still lower on the week an upward drift here in the afternoon, but as you suggest within the range, obviously just consolidating r very, very big really historic magnitude of a rally we saw during march. April rather weve come right here, 28 20s is an interesting level in late summer its kind of rushed up last summer we were afraid of some kind of perhaps tipping into a mild recession. Here we are looking at a vastly worse recession. The earnings picture is very opaque even though were getting reports obviously for the year 2020, which is right here. About 143 for s p earnings its going down fast dont really know where the last second half is it looks like whats conspicuous here is nobodys really touched their 2021 estimates its still pencilled in at over 170,000 a share meaning it would be higher than last year and more than a 20 gain this year i dont think anybody in their guts believes that number, but it just hasnt changed we dont have enough information yet. The market is probably more expensive than it would appear if youre basing it on next years earnings. However, i dont think youre going to position this way if you look at the way the sector breakdown is, this is a survey, its sicyclicals minus defensive. You see people are positioned sectorwise more defensively than they were at the lows of twine even though the market as whole has done fine with the market in hiding, the qualify, the tech, the secular growth areas, thats probably right for some rotation and the shake up of that patt n pattern, but right now, it seems like thats the reason theyre Holding Together that actually jives with with that bank of america put out in terms of their fund flow data. They said people are holding a ton of cash. Trillions of cash. Theyre if places like gold. As you say, theyre feeling defensive and therefore the conclusion is the pain trade is higher for this market that is their take away i think its legitimate to say people seem underinvested, certainly if the market doesnt pull back. We really just have to wait and see if that really manifests in terms of the daytoday as we get cadence of earnings and economic reports talking about how u the worst, the very worst of the economic shock reports might already be in the books right now, which is kind hard b to believe. Thank so much for that. 56 minutes of the session. Up 1 . Lets drill down on boeing, which is weighing on the dow hey, phil. When you look at shares of boeing, a lot of questions regarding commercial Airplane Division and whether or not we see a, production cuts and b, a shift of the timeline when it comes to the 737 max weve got fresh reporting on this the max certification target, remember the Company Middle of this year is when they expected to be ungrounded by the faa. Thats spliping. According to people who are familiar with the plans, they are looking at being closer to late summer. This is not a dramatic shift back, but it is important. Again slipping to late summer for a max certification and one reason why is the covid19 crisis the Company Tells me the covid19 crisis is is complicate ing the process but were making Good Progress and focused on managing scheduling risks as they arise that of course subject to ongoing oversight. Remember, you dont have people working together so when youre updating the software or making other plans, everything moves slower if you take a look at shares of boeing, theyre also expected to announce cuts in commercial rates for the wide bodied planes include iing the 787. They have their First Quarter earnings wednesday this will be important of giving us a better sense of boeings Management Team expects this this company to be over the next couple of years given all the issues with the Airline Industry back to you. Thanks for that boeing down 5 the main reason why the dow is up only 0. 7 to the s p a 1 gain. Now to the big shake up at at t. The long time ceo stepping county if july hell be replaced by john stankey. Lets bring in david faber who had the story this morning a quite a few of these ceo changes of late. Where does this one stack up in terms of the level of surprise to the market . The timing may have been a surprise but not the fact mr. Stevenson was interest ed in relen quinn sh his role as ceo i can tell you and have reported previously, that people expected that mr. Stevenson would have potentially tried to step down asser early as the end of last year or the beginning of the this year. As ceo however, elliot came into the stock. That sort of changed the dynamic a bit and the number of Different Things but it wasnt expected that he was going to stay through this year and now he will be stepping down as of july 1st as the ceo taking or continuing to be executive chairman until january of next year, which they will name what is expected to be a separate person to be the chairman while stankey steps up on july 1 as ceo david, when we consider whether his legacy was successful r or not, is the key deciding factor for h that in fact yet to be decided in do we have to wait a couple of years to see whether the acquisition proves to be b a successful one or not i think thats a great question listen, hes been on the job for 13 years hes dramatically changed the nature of at ts businesses. It was almost a pure Wireless Company when mr. Stevenson took over also had a wire line to come extent, but he has made it into a very Different Company p by the way, first with the failed acquisition of t mobile, which resulted in a payment of i think it was over 4 billion in cash and then spectrum, that put t mobile into a much stronger position as competitor then with the series of deals that we all know well of course beginning with directv, which brought them into are direct broadcast satellite and has been a difficult deal to say the least. It did bring significant cash flow at the time to help taken the dividend, but we know about the erosion of subscribers thats continued at a torrid rate for directv of course so thats been difficult then time warner which unexpectedly found opposition from the u. S. Government delaying the close of the deal by over a year that was an important year as well and now finds itself like so many other median Entertainment Companies in a somewhat difficult position given the current environment. A lack of o advertising, r sports pamming, although the jewel there, hbo and hbo max getting ready to launch less than a month from now, a very important launch for the economy. David, you spoke earlier with verizon and its interesting because these are the number one and two in the wireless business its top competitor is now in such a different business. It shows the divergent strategies that stevenson pursued and i wonder where you think thats going given the whole world is about to change given the media consumption, recession and all the other things we dont know about because of this pandemic so many questions in a truly uncertain environment. We use the word so often, but we know it all applies now. Thats one reason why you may have seen stankey elevated to the top role here. When elliot came in last september, the eck peckation was they were not big fans of mr. Stankey. He has had a long career at the company. Some 34 years, but while they did initiate a process at the board of directors and we got a statement earlier from elliot saying theyre fully supportive and they did consider a lot of candidates, whittled it down to a handful. What i understand is it was a number of things it was a current environment given how difficult things were, but it was also wire executives from the top job may not know a lot b about media. Media executives we were looking for for this top job may not know a lot about wireless and everybody is going to have a long learning curve, which in the current environment is not something thats sustainable they thought and so stankey is the man. Hes supported by elliot and i think you may remember of course sara and wilf when i was out in california interview iing him towards the end of october when they announced the launch of hbo max, it has yet to lawn. I asked him specifically about hi competition for the ceo job and how he was approaching his current job then as president and coo. 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, i have this wonderful luxury in my life that i really dont have to work. I work because i want to work b and thats a blessing. A blessing for me. And im here because i want to do this and i want to do whats in front of me right now hes got a lot in front of him right now and a lot of work that will begin on july 1 as the companys ceo. David, thank you. The stock turned lower but just down a little bit President Trump officially signing the bill granting a new round of funding to Small Businesses, hospitals and testing efforts. Kayla. Sara, this stimulus package will send 300 billion to Small Businesses through that Paycheck Protection Program and specifically through community banks. It will add 60 billion to the sbas zdisaster relief programs it provides 75 billion to reimburse hospitals who are treating uninsured pare ed patid theres about 25 billion for tersing that will be split between federal agencies an the states, but there are a few groups not included this this package. Theres not access to capital for cruise lines, for oil and Gas Companies or the u. S. Postal service, but earlier today, the treasury secretary csignalled that help might be on the way frlt latter two, that treasury is steadying options to provide aid both to the Energy Industry and to the postal service. What remains unclear is how quickly the u. S. Economy can recover what this wha its going through and how sharply the rebound might be, but earl yes today when signing that package, President Trump said he heard from a boldfaced name whos optimistic i just spoke with tim cook of apple and he would like us to do things hes going to be spending tremendous amounts of money in our country. Going to be bringing back tens of billions of dollars into our country hooe going to build and he feels that were going to have a v you know what the v is were talking about President Trump talking about a v shaped recovery attribute ing that to apples ceo, tim cook ceos like cook have been through this in china. They have been using that playbook to attack this virus here what remains uncertain is how many corollaries there are between what china went through and what the u. S. Went there and whether like china after two months of lockdown, the economy can start fully getting back online thank you so much for that. Weve got 47 minutes left of the session. Were up just over 1 on the s p 500. For the week as a whole, still down 1. 6 . After the break, well speak with dr. Scott gottlieb b about the latest efforts to find a a kier and a about two potential treatments back in a couple of minutes. In nearly 100 years serving the military community, weve seen you go through tough times and every time, youve shown us, youre much tougher your heart, courage and commitment has always inspired us and now its no different so, were here with financial strength, stability and experience you can depend on and the online tools you need because you have always set the highest standard and reaching that standard is what were made for welcome back weve got just over 40 minutes left of the session. Heres a check on what the markets are doing. Up u about 1 , s p russell is up 1. 6 because of boeing just fractionally behind. Lets check in on some of todays individual movers. Draft king making its debut after merging with blank check company. Jason robins joined cnbc earlier and spoke b about why he decided to go public despite this challenging environment. Obviously nobody saw a Global Pandemic coming, we knew the market had an 11 plus year bull run, there was an election coming one of the nice things about the structure we chose is the spacek was raised last may. The pipe investment was committed to in the fall and from a mechanical standpoint, it was like closing an mma transaction. We had a clear measuring stick we knew where the stock was trading so we felt good about closing the transaction. Shares trading up about 9. 5 . Good day for that. Yeah and hey, theres always table tennis, which apparently is doing well. The fda issuing a warning against hydroxychloroquine this after a new study was cut short citing safety concerns the study finding primary outcomes of death and irregular heart beats amongst patients joining us now, former fda contributor, dr. Scott gottlieb. Great to have you on the show. Thanks for swrojoining us thanks a lot. Theres been a bunch of emotional swings in the market this week related to some data out of treatments like remdesivir and hydroxychloroquine there are hundreds of trials going on for antivirals and as you know, convalescent plasmas an antibody therapies and so many whats your level of opt michigan k that well find a game changer treatment soon . I dont think were going to have a game changer treatment in time for the fall, but we may have treatments that are effective against this vie vus and help mitigate severe outcomes for a certain cohort of patients therapeutic antibodies look promising. These are copies of the antibodies your body would produce in response. Remdesivir looks like it may be effective. Perhaps used early, it can mitigate severe outcomes in a certain percentage of patients there are treatments that could be available in time for the fall to deal with a second wave of this infection as we head into the fall and winter that could have a treatment effect and benefit a certain percentage of patients, theres about 70 drugs currently under active protocols with fda then about another 200 in earlier stages of development. I think well get therapeutics on the market, but nothing in sort of the near term thats going the affect this epidemic and only a handful by a sec wave should treatments and will they influence the reopening of the economy or only a vaccine should do that no, i think were going to have a better tool box in the fall as we reopen the economy in may and june, were not going to have a treatment were certainly not going to have a vaccine what were relying on is the ability to better track and trace and prevent small outbreaks. Thats what were going to be dependent upon in may and june and july and august. But my bigger concern is that we get through this reopening but we dont really skquelch the epidemic this summer is a backstop of sorts against a really large outbreak youre going to see less transfer in the hot summer months when people are outside more, when droplet transmission becomes less efficient but as we come back to work in the fall and school is back in session and college is back in session, all that smoulderring infection suddenly ignites and at that point, you want to have treatments available and better tools, better screening in place, that could help mitigate large outbreaks. Were going to face a lot of risk in the fall and winter and this coronavirus collides flu season, this is not going away were going to learn to deal with it and reduce its risk. Georgias going to be one of first experiments starting to reopen today can china tell us anything about whats going to happen p in georgia and ore states here that are going to reopen . I know we might not trust all the data necessary aily coming t by u but according to a lot of the multinational companies, theyre operate iing. Theyre open and almost getting back to normal well look, chinas having some outbreaks now in parts of the country singapores having a second wave thats substantially larger than its first. Theres infection spreading in hong kong. Japan seems to have an infection thart starting to ignite into larger fires in that country so its hard to get rid of this virus. Its very contagious and we have no cross immunity to it. Even after we get through this, probably only 5 of the u. S. Population will have exposed and develop some level of immunity so were going to continue to be at risk. What china shows us is that this is a longterm fight and were going to need to put measures in place that we can live with, that are sustainable were going to need to create some level of social distancing and were going to popularize the use of masks probably going to try to move things that are indoors outdoorw can, where we know spread is less efficient so theres ways were going to have to adapt thats going to reduce the risk until we can get to a vaccine whatever the rationale for why georgia is reopening in exactly what part of the they are going to reopen and the criticism that may have come with that, what can we learn from georgia over the weeks ahead . Are they going to be a little bit of a test case for the rest of the country, whether that was the right call for them or not i think what we can learn from georgia is not to do. What they opened up are the businesses you would open up last, not first. Even from an economic rationale, i understand theres Small Business people behind those businesses, but in terms of having an impact on their economy, it represents a small percentage of their economy, the kinds of businesses theyre reopening and theyre not businesses necessary that improve quality of life. O you want to start reopening and give people a sense of normalcy religious services you can hold outside. Gym classes. Are reopening parks. Things that give people a sense of normalcy. Nail salons, bowling alleys, tattoo parlors probably arent going to give people a sense of things rurping to some level of normalcy im not sure what the rationale was. I think they should have been b look tog reopen businesses that are more essential to the georgia economy. Maybe employed more people but they shouldnt have been opening now at all georgia still is in very much the throes of an epidemic and if you look at the model that came out yesterday, the one thats closely watched, it showed a couple of states worsening and georgia was the one that worsened the most. It shows their epidemic not peaking until the end of this month or early may so theyre very much into the throes of this have we learned anything, any Science Behind why certain people get so severely ill and others dont i know age is a fakih r tor. I know understood lying conditions like diabetes or obesity or heart conditions, high Blood Pressure all fakih r tors, but what about Healthy People in their 30s, 40s, 50s that get severely ill and people in their 80s or 90s are asymptomatic have we learned what determines that we tony were learning to treat patients better, but there seems to be a big immune component to this where some of the people getting in trouble, perhaps many, the people who are ending up intubated in the icu very sick, part of a lot f f whats making them very sick is an overwhelming immune response to the virus. So the its not the direct activity of the virus, but the immune response creates an inflammatory state in their bodies that ends up attacking their own bodies attacking their lungs. So were finding ways to try to arrest some of that immune response and seeing some Better Outcomes with patients using drugs and there are some indications that patients receiving these kinds of medicines might be doing better. Those trials need to be turned over were going to have better data on them later into may, but it is the case, the thing thats the most different between different people is your immune System People have very different immune responses to different bacteria, different drugs and so you see a lot of originating from person to person and some people who are getting into tloubl with this may be the cohort of individuals, we dont know why, that mount on out of control immune response because its so novel in their bodies and its that that gets them very sick. Dr. Gottlieb finally were going a seg lt later on the increasing number of slaughter houses in this country that are closing because there are a number of infections there and some worries b about food shortages. Are there any concerns about passing this virus in the food supply i wouldnt be concerned about the food supply being a source of the virus its not a virus that you get from ingesting something. Something that could be passed on through contaminated survface as its not going to live on surfaces long. We need to think about protecting the food workers themselves because theyre working in spaces where theres close quarters theyre indoors and we need to make sure they have proper protective equipment as they do those jobs so those jobs b can be cdone absolutely. Dr. Gottlieb, thanks for joining us thanks a lot. Weve got breaking news on last nights nfl draft julia. Repocord ratings with over 1. Million viewers watching across abc, espn, the nfl network and various Digital Channels thats up 37 over 2019. That really speaks to the huge demand for any sports content right now. Most live sports have been shut down and its also good news for of course disney, which owns espn and abc then of course the nfl. The nfl saying 7 Million People turned, tuned into the draft live that was a fund raising campaign, but really interesting to see what will happen as we await for some details on whether or not the nfl will be playing again this fall. Back to you. What happens to the brand power of the biggest stars in sports when games and seasons go dark well discuss that with Kevin Durants manager and business part r ner ahead meat packing plants are closing down at least 17 have had to shut down while some have been able to reopen, 12 remain closed including two jenny os that announced theyll wind down this weekend. Companies such as hormel, smithfield and tyson have been hit. So what does this mean for the consumer joining us now, kate cox, editor of the counter thanks so much for joining us. First, big picture question before we focus specifically on the meat side. Flood supplies held up impressively, has it not it has so i think theres reason to be really pleased in light of everything thats happening in all of this catastrophe were all living in. The food supply is stable. Theres inconsistencies and i think were seeing a lot of that, so shortages and thats in part because of Consumer Behavior also because all the way through the supply chain from labor to logistics, were dealing with shortages, time issues and so it is often that things arent get ing to retail as quickly as they used to. Or there may be shorter you know, a shorter chain of options but so far, so good. And theres been real cause to feel confident about the nations food supply do you have any idea why this is happening at slaughter houses and meat plants versus other part of the food chain i think thats a lot about approximate imtism in those facilities, in the first you know wave here, weve seen mostly the Largest Scale facilities, like beef, pork, poultry and those are facile iie that might be employing thousands of workers and they work on the line whether its breaking down car kuses or finishing the product or packaging it and theyre elbow to elbow and in some cases, they might be moving a piece of poultry through the line at six or seven birds per second its unbelievably fast and crowded and those kinds of conditions make social distancing really impossible so proximity is a big part of the equation i think the other thing to bear in mind is that with a lot of the big packers, theyre the most significant employer. Sometimes in a Small Community and so you have not just the folks who are working inside the facility, but then communities of workers inside who are living nearby and so its hard to tell sometimes what outbreaks are coming directly from inside or whether theyre happening from outside in the community should people expegt shortages or price increases for serb me certain meats . Not immediate term, no. For a couple of reasons. We have billions of pounds of meat in cold Storage Facilities across the country weve had weve had the food Service Accounts dry up overnight. The restaurants dried up overnight. That means theres a lot of meat both in cold storage and available for retail the it is going to take again some time to break that down from constitution size to retail size and get it on the chevelle, but it will get there. I think as we get into may and june, thats where well start to see possibly some shortages and when there are shortages and pressure on the processors, particularly on their labor supply, then we are going to look at price increases on the consumer side. Right now, the folks who are really dealing with price issues are farmers. And theyre the ones taking the biggest hit. Theyre sitting on animals theyve harvested they cant send to slaughter and those are animals that every day they wait to go to slaughter costs those farmers hundreds of dollars. Kate, thanks so much for joining us thank you weve got 25 minutes left of the session. We are higher by about 1. 3 on the s p. Dow is about 1 . Still ahead, ian bremmer will join us. Well discuss what he thinks the impact of the virus will be on global politics. Thats still to come ever since weve gone mobile on the now platform, somethings gotten into the office. I hear you. Feels like theres no barriers between departments now. Servicenow. The smarter way to workflow. I know that every 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. 23 minutes left of trading stocks are higher. A 1. 3 gain for the s p 500 about a 1 gain for the dow. Technology is the leading sector, but all sectors in the s p are higher right now real estate doing the least well of the group energy is the only sector that is higher though for the week with stocks set to break their two week winning streak. And end lower. The best month for stocks in years. Quite a big difference this afternoon compared to the rest of the world week to date, the numbers kind of show that as well the u. S. Outperforming today and this week relative to the likes of europe down 1. 5 . Time for a coronavirus news update hey, sue thank you very much good afternoon, everyone President Trump has signed a 484 billion bill providing additional help for hospitals and employers hit by the coronavirus pandemic during the event, he was asked to clarify his apparent suggestion that scientists look into whether injecting disinfectant into Covid Patients would help kill the virus. I was asked a sarcastic question to the reporters in the room about disinfectant on the inside but it does kill it and it would kill it on the hands and that would make things much better another food closure Smithfield Foods will temporarily close a plant in illinois after what it describes as a small portion of workers tested positive for covid19, but that facility provides 3 of the countrys fresh pork supplies and also bacon. You can get more coronavirus coverage by going to cnbc. Com. Back to you. Thanks. We were just talking b ining at problem. 20 minutes left of trading heres a look t where we stand in the markets again, techs in the lead. Thats helping the nasdaq bounce 15. 5 . The russell 2000 is the only place youre seeing two week highs today. Its outperforming the dew ice up 261 coming up, this unprecedented earnings season, alphabet, tesla, facebook and amazon gearing up for results well ask an analyst to break down the key items to watch because werdeing the alwi a lock of visible and guidance g tt the bidding at 5. Thank you, sir. Looking for 6. 6 over there do i hear 7 . 7 in the front 7 going once. Going twice. Sold to the onion lover in the front row next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowedout loaf of sourdough bread. Dont get mad get e trade and get more than just trading investing. Banking. Guidance. Peloton shares spiking after the company set a record 23,000 people live streamed a classy mull tan yously on wednesday the stocks up 7 . It has been a big wiper of course recently with gyms closed the stocks up more than 20 over the past two months one note out today suggest ed that theres a bit of a backlog and shortage which is bad for peloton. That the supply cant keep up, but clearly a great problem ultimately for them to have and thats apparently about a two or three week delay in new york if you want to get one, so theyre meeting the demand somewhat. Remember when we were so skeptical, couldnt believe people would shell out a few thousand dollars to work out from home. I can believe some could. I didnt know how big the Addressable Market was. This has been a big beneficiary. Its 23,000 live which is nuts if you look at the figures for classes on later repeats, i mean theyre well above that. So i mean this is its hard to phrase this this way, but its come at right time for them. They are beneficiary of course wishing not to be inthis position like everyone well stick with the theme of staying at home. A number of names in the Communications Services sector have also been standouts in the lockdown economy like netflix and eric a dom chu taking a look at the sector and specifically, how debt is playing into investor decisions. Thats right. Communications services as a whole, a sector, has mildly outperformed although still lower with the Broader Market its outperformed the s p since the start of the year. For many investors, a key focus now and in the comes months will be on the health and strength of Company Balance sheets were looking at the debt to equity ratio and it could show how reliant a company is on borrowing as opposed to raising their equity or share hold rer capital. That according to wide charts, the five companies with the highest amount of debt relative to equity in their capital structure is live nation, century link, charter communication, omni group and verizon. They have higher debt to equity ratios meanwhile, the companies least reliant on debt are Companies Like electronic arts, news corps, alphabet, facebook and Take Two Interactive each has little to no debt on the holonger term side of things so its something to keep an eye on as more scrutiny is is placed on the Balance Sheet and its health back to you. Vastly different debt to equity ratio another independent kart of how this is a slightly odd grouping still. Whether there needs to be another split to create a 12 sector but theres very different type of companies worship that group absolutely right. Just look at the way it sets up, part tech, part telecom, the same netflix in the same sector as electronic arts, its a big hodgepodge right now well see if those struck which ares start to ko ales around certain benchmarks have a great weekend. Inrrtet, well bring you unteupd coverage were up 1. 5 on the s p 500 at leaf blowers. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. 12 minutes left. Commercial free coverage of all the action going into the close. Cnbcs senior markets commentator mike here to break down these crucial moments of the trading day and today weve got charlie here as well lets kick it off with a look at the Broader Market right now major averages higher but on pace for their first weekly decline in three with just four trading days left in the month the dow on track for its best month since 2015 and the s p and nasdaq are on their way to the best month since 2011. So holding on to most of the gains weve seen from the march low, the 25 or so bounce. What have you guys been doing in your portfolio throughout the past few weeks and what would you do now weve been trying to divide up companies in terms of how theyre going to be in the longterm. There are companies doing fine doing better smuckers and progressive. But those stocks are overpriced so were not buying more then there are companies that are going to have a temporary downturn but are going to be fine zimmer does hips and knees theyve almost come to a halt, but the number of replacement hips and knees is is going to go back to norm a were finding a lot of those companies are very attractive then the last group are companies that are impaired. We think maybe permanently or at least four or five years and we are not buying those names those would be some names like the airlines and some of the travel stocks. What about carnival is that in the latter bucket this is controversial you always ask me about this were putting that in the second bucket saying it will come back its clearly going to be hurt. But the stock has been destroyed as has royal caribbean, as have a couple of others in the space. Theyre seeing people book Carnival Cruise line trips in the fall so we think that business will come back. Its been p a continuation of 2019 ease leaders as opposed to what you would see on what fell the most on the sell off brief period after the market lows when you saw the beaten down stuff that had been neglected. That gave way to the familiar leaders in the megacap growth area today, maybe theres a time when we might be having a little bit of an Inflection Point where theres internal rotation. There are banks doing better today. Semiconductors are up even though intel is down so not to broaden out whats happen ng the moment to saying its a new trend, but youre right. It has been mostly quality defensive secular growth thats been getting us here as the market here kind of drips up towards the ebb weeks highs verizons earnings in a shake up at at t hit the communications sector. Jew julias got those details for us julia. The company pulled it full year outlook as it lost 68,000 wireless subscriberers and closed 70 of its stores at t announcing its ceo will be stepping into the executive chairman roll and the current coo will replace him on july 1st. Stankey takes the helm with three major challenges the growing threat of cord cutting to the companys paid tv services at its warner media unit, an advertising recession and lack of sports programming and its mobile thety unit spending less on phones and mobile services then of course guys dont forget the company is launching its big streaming service, hbo max thats happen lg at the end of may when you consider some of these different sorry, julia, thank you very much. When you consider some of these telecom companies, theres quite a broad range of pe multiples and with it dividend yields on offer despite then on the surface appearing like fairly similar companies. What do you make of that and which are your preference . When debt to ebitda ratios are important. One of the big headlines is that a the market has been penalizing companies with debt so youre getting very disparate valuations based on Leverage Shares of zoom, which have fallen significantly over the last trend about 5 well get that in a moment after facebook announcing new video calling features down 5. 2 . Which would allow group calls of up to 50 people. It includes augmented reality features and the host will be able to lock calls and remove users. Facebook shares up 2. 3 . Mike, clearly, this is the functionality that is in demand at the moment. On one level, you can understand the move in the share prices, but on another level, you wonder how facebook wasnt already offering Something Like this first of all, zoom has fallen also you have to go back and try to remember all the other times you had a sell off in tech stocks when facebook said they were going to enter an area. Whether dating or something. This goliath will come in and step on whoevers in there hasnt always panned out no, thats right. Then facebook announced it was going to do a dating service, shares plumeted then theyve been doing a lot better. You could also argue that facebook was supposed to be the snap chat killer and you know was copying with the stories and taking market share and doing a better job and snap has always been doing better of late. Sure. Those things can coexist facebook can kind of round out its offerings. Add a feature. Dont necessarily directly monotize it, but the other kind of entrenched vertical small rer player still has enough to feed itself the. W the ti crude oil higher by more than 3 today wrapping up a historic and crazy week for the oil market which saw it settle in negative territory only to climb their way back on tuesday. 10 per barrel when the contracts expired. Since then, weve been watching the june contracts theyve rallied back to 17 a barrel a far cry from 60. But boy, has this been a wild ride what do dwrou with oil moves like this . Do you buy anything in the energy sector, which is the only positive sector for the week we believe theres such a thing as bad businesses and frankly, there just arent a lot of barriers to entry in the oil space and so its very few names we like here there are a couple Service Providers mostly, but most Energy Companies cannot make money at 17 a Barrel Energy has been a lousy investment for ten, 15 years whats the biggest expense that cruise lines have . Energy oil. So price of oil dropping dramatically is going to help margins of the cruise line nice way to bring that back in mike, in terms of the majors, clearly weve spoken about the way that they didnt trade down this week to the same level that oil prices did i thought it was interest iing what john brown told us yesterday. It just tends to mean the Bigger Companies end up taking that on. The company gets restructured. I thought he was pretty down beaten bearish about the pros peblgts including those big strong Balance Sheet majors. Absolutely. Its true it doesnt mean the assets go away that the production disappears if those investors and creditors get wiped out, but it seems as if the market broadly speaking can say we saw the worst it almost literally cant get worse than we saw on the near Term Contract we saw this week and therefore, maybe weve accounted for some of this reckoning in there but theres a will tlot of room between it cant get much worse. So i think its very dicesy. We havent gained back much of the lost market. So it seems like a bounce. A net positive sign from the group, but really not anything like a free and clear signal yeah and theres huge divergence apache up 26 . Common and chevron are flat and kinder and cabot are down for the week mike, what else are you see iin in terms of the market internals today . Theyve firmed up along with the indexes during the day earlier, it was about 50 50, up versus down volume its a little bit stronger than that right now on the advancing side not much it shows you the indexes are benefitting. Its not necessarily across the board strength i did note that high beta, so the more aggressive risk seeking parts of the market outperform ing this week, the low volatility areas, so thats a you know also a little bit of a small net positive in terms of risk appetites firming up here and the volatility index has ease d back and woor basically making new lows since the crash. Thats again confirming the stability of this market maybe means this rally is on firming footing. Even though it doesnt mean we raise higher from here weve got about one minutes left of the session. Weve just come off the session highs we touched about 15 minutes ago. The currently 230. Still up a percent s ps up 1. 3 . Nasdaq leads the charge up 1. 6 . The Sector Performance on the s p 500 sees tech up a full 2 materials, consumer discretionary, care doing well at the bottom is energy, real estate, utilities, though all 11 sectors are positive to round off the week s ps 1. 3 gain. Today equates to a 11. 3 loss for the week as a whole. That does mean outperformance rell dif the asia and europe for the sb both today and the week something to keep in mind before we start next week of course oil recovering today but finishing the week down still about 30 depending which measure you look at. Oil year to date still down 70 . As the bell rings there on the New York Stock Exchange, we are closing out the week higher on the s p 500 down 1. 4 or so for the week as a whole. The dows up 1 . Nasdaq up 1 welcome back home dtee poe, the bigst winner, but the dow is down about 2 . S p 500 ending up 1. 4 and wilfred said ending the week down 1. 3 . You saw a number of sectors higher today including technology which is the big winner. And that was the north ameriasd outperformance russell 200 up 1. 55 and that did better than the other three though everyone down for the week breaking that win streak that we saw two backtoback weeks of gains. Coming up, well have ian bremmer how long he thinks it will take for the u. S. And global economies to become fully operational again and what Foreign Policy looks like in this and then well speak to the Business Partner of kevin durant about how the coronavirus is impacting the future of branded athletes when there are no sports to watch. But first, lets talk about the market joining us, cha will i still here first though to you, mike, on what we saw today and for the week, it was kind of Less Headline heavy it was more sideways drift i would say for the better part of the last two weeks todays little rally, this levation we got got us back to the intraday high yesterday before you had that sell off after the disappointing reports about the gilead drug. So i dont take away much in terms of directional indicators coming from this, except to say it seems like a very benign seeming pullback consolidation after that big rally we did see as the march low is probably, the credit markets today didnt cooperate, the bond market is not really telling much of a torre that says were off to the races here. Im kind of agnostic on what it means here for the next little while. Charlie, as we look at the market, down 12 on the s p 500, do you really feel that the bad news flow has peaked and is priced in at this stage . I do. You know im read iing this boo about your country men Winston Churchill and london blitz its amazing after september 15th, when the germans were bombing london, they put, they took their hardest shot then the next couple of days, there were less bombs and all the polls and interviews with the london citizens showed people feeling much better. Its amazing how a reduction in pain feels good and i think were past that the worst. Both from a health and jobs perspective. I think were going to tart having businesses open um. We hire people i think were past the worst and less bad new us is enough for the market to go higher from already a big rebound. Yeah. I think its going to be good news i think youre going to see businesses opening up. I think restaurant rs going to open um. I think people are going to start focusing on 2021 and dont want to be repetitive, but i dont think were going to see a relapse of the kind of Health Scares that weve had so from here, now the one exis were going to have more bankruptcies theyre going to come faster over the next month than over the last month, but ning general, earnings are going to surprise to the upside and i think the Economic Statistics are going to surprise to the upside wbob, the market positive today by the enof the session. Yeah, up today, but down for the week, about 1. 3 for the week we had a big sector winner that was oil my pick stock of the week, apache what would have thought. Were up 24 for the week. 27 to the close despite this crazyness around oil futures, that was 4 at the start of the month. 4 elsewhere, nice to see banks bouncing back comerica bounced back. Up 8 for the week regions and h band Huntington Bank shares bounce back after a rocky start the regionals got hit a week ago tough week for boeing though down 15 durable goods numbers was due to what was going on in boeing. Tough day r for retail l brands, down 24 trying to salvage that victorias secrets deal. Gap, kohls down 15 a lot of them may not survive. The s p is kind of range bound here in the last two weeks have been in a range bound area about 100 points, believe it or not, on the s p area. A lot of debate about whether the economic climate really justifies an s p at 2800 guys, have a good weekend. You, too, bob thank you. Weve got news coming in related to those additional funds for Small Business relief from the government. Kate rodgers with the details. Kate hey there, thats right the Small Business administration and there shalre saying the sda will resume accepting ppe loan applications on monday at 10 30 adding theyre from approved lenders. This time will ensure theyve properly coded its system to account if the changes that have been made. In addition, the government out with more goins today saying that firms wont be available for ppp loans stating that hedge funds and private equity firms are engaged in speculation and such businesses are eligible to receive a loan now this is just a day after guidance was posted limiting the ability of large xacompanies ar other forms of capital, to it seems as we head into this second wave of funding through this program, the government wants to really ensure that smaller businesses that may have missed out the first time really get access to these funds. Back to you. Just to clarify on the private equity point, youre saying its private equity owned businesses dont count or just the private companies, which we wouldnt assume could apply. Its hedge funds and private equity firms doesnt say private equity owned firms right now, but if they apply, they would have to ensure that they need the loan and dont have other forms of capital they can access. Thanks for that now earnings season in full swing in a number of major tech names reporting including an apple, facebook, amazon. Joining us on what to expect, dan. Good to see you. Its going to be a huge week do you think that the outperformance of some of these stocks coming into earnings season kind of a continuation of 2019s team is a little overdone if you look at the underlying trends outside of apple, its something youre going to see next week in terms of leadership and its key especially when you look at apple where investors are really looking past the near Term Economic abyss. Thats why youre seeing narrow leadership here in faang whats your top pick . Apple i believe expectations and we just did our data points in asia i think expectations here are what id say mispriced as i look out over the next three, four quarters the 5g cycle, i think that goes into fiscal 21 and to me, thats the one on a risk reward sum of the r parts that id be looking at into earnings where the news not going to be as bad as was right now the streets expecting. Especially when you look toward the end of this year weve had interesting noises out of the social media and internet type companies. Some question marks over advertising spend because of economic pressures and then some fantastic engagement number frs the like of snap where do you think that shakes out for the likes of facebook . I think engagement is going to continue to increase. Thats why i think its a name even though theres noise, theyre going to be ones that benefit and i think youre going to see in terms of these stocks, when you look at facebook, theyre going to continue to expand some of their opportunities just like youre seeing them going after zoom and others and thats why next week, the, really the start. You look at sort of these quarters then it looks to the next two, three quarters do some companies also start to be more inquisitive. Thats another question when you look at amazon, microsoft and others on that broader cloud theme, which continues to be the rock of gibb ralter in terms of protecting i mean strong getting stronger mike is a theme youve been talking about how a lot of this rally off the lows has been driven by these big Cap Tech Companies where do valuations and for some of these companies with high hopes like dan inext week . Theyre on the richer side relative to a lot of other sectors, but because earnings seem resilient, it kind of off sets that and theyre not at their highs. Microsoft, the shares are not at their peak neither is apple one interesting bit of separation is the ad dependent companies, facebook and google had lagged amazon and netflix where youre just paying out of pocket for a shortterm. Ewe tutilities, as well as into health care, have seemed overheated so i wouldnt be surprised if they take a rest just in the near term because everybody has been hiding there, but the overall broader picture hasnt changed much charlie, do you own any of these megacap tech stocks set to report next week not a one theyre all u in that first category of companies that are doing better because of the current environment. Clearly benefitted from the current coronavirus situation. 12 and does that really take into account all the problems in the economy . The value indexes are are town 30 . So we think theres a lot of pessimism around economically sensitive names. And finally, just dan on apple. You know so Many Companies now are cutting b inting buy backs d dividen dividend whats apple going to do with the cash sm. I think theyre going to have to pause the buyback given the pressures, thats something theyll announce on the call its a quagmire because ultimately, the company is 200 billion. Going to generate another 50 billion, but i think right now, youre going to see some of those pressures. Why the Tech Companies are going to pause buybacks and thats going to be another focus going into earnings next week. Thank you for joining us. Still to come here on closing bell, well ask ian bremmer how long he thinks it will take before the ecomyno returns to normal. Back in 90 seconds both apple and google are moving forward with Contact Tracing plans. We have more detail on that. With the first phase of this Program Moving Forward in mid may, apple and google are now tweaki ining privacy and securiy concerns this is key because even though its an incredibly ambitious project and you have apple and google combining force, this only works if theres Widespread Adoption so they need people and large amount of the population, to opt in. Trust that they and the Public Health authorities wont misuse that technology. That could be a challenge. Take singapore, where there are less privacy concerns sh, the governments trace together has fallen far short of adoption target now according to another research firm, Contact Tracing project, this Program Needs about 60 adoption to b ooempb be effective so what youre seeing now is google and apple providing updates on a regular basis. Laying the groundwork, that means tweaking their apis so make sure when they are ready to launch at a wider scale, that people are going to opt in which is so critical absolutely. Thank you so much for that now while beg tech works on tracking the virus spread, the u. S. And oh countries are laying out plans for reopening of their economies but despite the push to be up and running again, our xwes says countries should be approaching the outbreak as a three year crisis. For more, ian bremmer. Good afternoon to you. Thanks so much for joining us. The theme im keep to kick off with is you think a lot of the worrying geo political themes youve observed over recent years are being accelerated because of this crisis s. That right . Sure. The deglobalization trend you saw with u. S. China tech cold war is now leading to issue of just in case supply chain moving both medical supply chain is strategically important. Going to have bailouts that will be condition ality linked to moe employees of your own local, especially on the back of 15, 20 unemployment so that trends in Global Inequality that are growing. The increase of chinese over the core developing world. The great importance in disruptiveness of technology companies. The ewan rall lateralism of the united states. All these things had been coming, but they really speed up profoundly as a consequence of the massive, unprecedented economic shock and health care shock by the Coronavirus Crisis. Where do you think this leaves the u. S. China relationship when this is all done im not sure. I wouldnt make the call yet were going to be in a cold war but were heading in that direction. There is no trust. Between the two countries, not from the u. S. , not from china. Thats not new that was true under obama as well but there was a great level of interdependence between two countries that really stopped us from wanting to get into a fight and that became less true when we started telling everyone look, dont invest in huawei theyre not letting facebook and amazon there now were saying how can we produce all this stuff in china. We should be, cant be reliant on them for ventilators and for ppe for health care and why would we want so much employment in china plus, were hitting the w. H. O. Were got all these cases and the election chinas going to be salient and certainly, the efforts to blame china given the cover up they had in the first month of this pandemic plus xi is feeling more insecure internally for having mishandled it at the beginning. So whats very clear is that right now, the two countries are heading in a direction r towards much greater confrontation and these are reports the two largest economies in the world and what about the outlook for the euro zone in how challenging is it and is debt much yulization on some level being referred to as corono bonds, is that required to get them through this difficult outlook that they have in. It may not be required to get them through it, but absent some kind of debt neutralization, youre going to have a lot more incrimination from the south that the euro zone doesnt work for them and much greater than we saw during the greek crisis and the level of leadership is nowhere close to what we had in the greek crisis mer kell is near iing the end. On top of that, this is clearly worse for the united states. Growth was lower coming into it. The expectations worse going on. Youve seen that from the imf in the last week and the big winner coming out of this is the tech sector well thats the americans. Weve got the big Tech Companies. The europeans are nowhere. So if were going the see much more disruption of the nondigital economy, that makes europeans much weaker than the americans coming out of this so all of the challenges that you see in the worst economic crisis since world war ii the europeans are actually less well positioned to handle how much of your predictions, the push against globalization and the cold war with china depend on the outcome of the u. S. Election in november . How much would your outlook change if at all it would change in the sense that and list it, not just around trade but i also think the animus is great er its more focused and treatment of the uighurs, human rights, hong kong democracy and republicans, its more on the national security. And the tech front, but these are coming together and American Companies and cdc, theyre so many fewer American Companies that think they have a sustainable economic model in china in five years time than there were even a year ago you look at hollywood. Five years ago, they thought china was the future one tweet against taiwan and they close us down so youve got a will the of problems dealing with the chinese on a whole host of issues and i dont think thats going to ease yet our challenges, our 15 plus unemployment our counxens that need stimulus. Even if biden comes in in january like were suddenly happy with a china we still dont trust and we have less than we have with them even a year ago how worried are you about how this virus is going to hit on emerging markets their curves are a lit behind the developing word. Could they be profound z its a mixed story. We saw in new york some startling numbers that 21 of new yorkers and a decent random survey, have antibodies. Meaning a fifth already got this, we didnt moe that it could be me, it could be you. What that means is that in dense areas where theyre not able to do anywhere cloels to the lock doub they have in new york, everyones getting this thing. Its going to end up being herd immunity in brazil in india in africa, in Southeast Asia if thats true, then were not going to reopen travel with these places until we feel its worked through and we have a vaccine. So youre not talking about a year and a half. Youre talking more about two and a half, three years before we can really talk about business as usual and we also know that there are a lot more people near subsistence level in the developing world than here and some are doing strong tuss now like in brazil a lot of them are and dont have the money like in india and the head of the imf and the head of the u. N. Said we need 2. 5 trillion to be able to backstop the developing world behind the scenes, they talk more like 4 to 5 trillion. Nobody believes that money is going to be there. Not when the merps and europeans are focusing on our own serious dislocations and the chinese so clearly, the biggest burden ultimately will be felt on the shoulders of the developing world. If theres one silver laining, its the fact that these populations are an awful lot younger and when the average age in nigeria c is 18 and everybody gets it, not that many people are going to die thanks so much for joining us always good to be with you still ahead, well ask Kevin Durants Business Partner how the sports world could change once the crisis ends and you can always watch or list to us live on the cnbc app. S p and nasdaq finishing higher lower for the week over to mike looking at where Investor Sentiment stands now, mike you mentioned while ago that bank of americas arguing that the pain trade is higher for stocks in other words, investors are not position ed for a rally this is the indicator that gives them a sense its the bull bear gains they keep you see it here. Pinned right about at zero for the last couple of weeks that basically means that the measures of fund flows, hedge fund positioning, credit metrics, it gets blended in to give a sense of position risk and appetite which is low. It is bullish for stocks ill just note that in 2016 in 2008 and 09 and in 2002, those were bear markets of one description or another that stayed low. In other words, kind of bounced around the zero line without the markets recovering in a sustained way. So if this is in fact something of a more prolonged bear phase were no, no saying this is a moment in time where all of a sudden, the market turns to the better, but it spoths the idea that people are still caution and therefore further rally might surprise the majority. In terms of broad bearish indicators, interesting to see the ten year dip back below 0. 6 by the point of the close today. It is the treasury market is not really suggesting that were gearing up for some kind of economic revival or animal spirits to pim ub again either high yield credit today in this week has been soft so thats also a slight drag on the bull okay. Mike, thanks for that. Now kevin durant has been one of the most high profile athlete to battle coronavirus up next, well ask his Business Partner about his recovery and whether athletes can keep their brands relevanin at world with no live sports back in a coweuple of minutes. 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 confident financial plans, calming financial plans, complete financial plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Theyre all possible with a cfp® professional. At cdwwell weve made our happy,office pet friendly. S. [ bleat ] [ cooing ] maybe a little too pet friendly. Well you know cdw can design a Mobility Solution with light powerful devices from lenovo to make your people more productive in or out of the office. Anyone have any questions before we go . Thats great cause i really need to get out of here. Snake people are freaking me out. Hey sheryl, you have a sec . Nuh, uh. For work place productivity you need lenovo, and it orchestration by cdw. People who get it. Higher by 1. nasdaq up 1. 6. Awe sector were high e energy, real estate, utilities at the bottom of the pile, but as i said, all sectors finished in positive territory. Energy the only one though to finish positive for the week the business of sports in the u. S. Normally generates billions annually, but its almost completely shutdown due to the coronavirus. Now athletes and sports teams are adjusting to the possibility of playing in empty arenas and stadiums indefinitely. Joining us now is Kevin Durants Business Partner and 35 ventures cofounder. Rich, thanks r for being here. Good to see you. Good to see you thank you for having me on first, give us an update on how kevins doing. Early diagnosis of coronavirus yeah, he was one of the first athletes was announced with having the virus, so it was really scary the its scary in general, but at that time r, it was really scary and i think kevin was dealing with the unknown but he was fortunate in that he never developed any symptoms he isolated himself for the full 14 days and hes in quarantine, but he was fortunate to get through it so what about this question of what the nba should do and whether they can be play iing in the longterm with no fans where do you come down on this im torn a bit. I think its tough its tough on everyone like it is in every business in the world right now. I think yesterday you saw chris paul, the head of the Players Union said players would need about three or four week to get back in shape and thats assuming that we get off in the next month in any way, shape r or form then you have to kind of take into question what would do, what would the effect be on next subpoeeason so i think plas are committed to doing it. I think the league and owners are r working towards trying to find solutions, but its still hard to press go on it until we know more as a society in nen general. Rich, clearly, within the nba, theres certain players involved with revenue share with the league what are the fears of how big a hit that might be . I havent heard that as a concern. B obviously i think it was announced players would be take b bing a reduction across the board. And obviously everybodys being compromised so main no way shoud anyone feel bad for the players but they have many other ways of generating rev new and if anything, theyre really concerned with how they can give back now you see a few players trying to give back and be as philanthropic as b possible. So i dont think revenue as a big concern right now. You said they have other ways of making money, rich. How do you think about wla this hurts kevin or any other players brand, the fact they qu cant play and what its going to mean in the longterm for those partnerships and sponsorships i mean you know i can speak to us. It hasnt hurt us. If anything, you know, from a content perspective, i think ath leathletes have been some of the more equipped at using social media and talking to their fans through different platform and a lot of athletes and us have reached out to our companies and brands and figured out how we can collaborate with them. A, getting out their message in terms of how theyre helping particular communities and if theres messages they want to get out just over all about the state of their company and we have brands that want to kind of incorporate their messaging now on the platforms because we get such a big audience but really depends a lot on what happens. Because some athletes arent probably focused on what they can do from a brand standpoint and worried about the every day stuff were all r wworried abou. Theres still an opportunity to continue to create content and story to tell. On that point, rich, youve been involved in making various sports documentaries in other sports related tv shows that dont rest on live sports. Theyve been a growing trend of those any way in recent years and some are being rushed to market of late how much do you think that picks up the slack for what viewers and sports fans want to see and then how quickly can they be produced will there be enough to fill the demand yeah, well i mean its tough. From a documentary standpoint or for digital content, obviously theres technology that allow us to utilize them and create content fast scripted series for instance, we have a scripted series with apple that was in development and thats been halt ed but i think in general, i think the content like that that we can create through our social platforms is stuff that fans are craving. Even with the excitement around like Michael Jordans the last dance. Around the draft last night. You can see how much the stoppage in live sports really kind of represents like what, how serious it is thats going on in the world right now and people are craving any of it so i think theres a lot of different ways athletes can keep creating we have a documentary that is coming out next month that weve been finishing over the last six week while weve been in quarantine its just more of the kind of scripted stuff and studio stuff thats jeopardized so beyond the content stuff, you also own stakes in companies at 35 ventures how else are you pivot iing in this environment were not obviously looking very actively at investing its more so about communicating with our Portfolio Companies i think a lot of them have messaging of what theyre trying to do now and i think its our job as a strategic and savvy investor and partner to help them get their messaging out and that could be in the form of creating content which were doing with some brands just in the form of using kevin and social properties to get the messaging out if it was a company like acorns or a Fitness Company thats brought their entire class online. So just trying to be b a partner that can mep in any way and thats regardless of the time were in, but now more than ever do you expect anything rich to permanently change when it comes to sports . I do. I mean in the hoshortterm, i think societal changes will affect you know how we what our interest level is in terms of attending games. I think theres been ar, Vr Technologies in development that were slowly rolling out that you may see sped up because were look iing at arenas and stadiums for the foresee nl future so i think tryingto figure out a way to engage the fan at home with r more and more offerings i think youll start to see that im hope iing that in time and e theres more confidence throughout all of society, different therapeutics and eventually a vaccine is introduced to the world, that being in a stadium, an arena, will never be replicated by being at home. So i hope all that comes back. But in the shortterm, there will be some real changes. Rich, thanks for joining us thank you guys. Stay safe. Appreciate it you, too still ahead, well ask the New York Stock Exchange chief operating officer about what criteria the cngnes hae edto see before they need to see before they reopen the floor for trading. Its a thirteenhour flight, thats not a weekend trip. Fifteen minutes until we board. Oh yeah, we gotta take off. You downloaded the Td Ameritrade mobile app so you can quickly check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. That could mean an increase byin energy bills. You can save by setting your heat to 68 or lower. Unplugging and turning off devices when not in use. Or just letting the sun light your home. Stay well and keep it golden. Time for a coronavirus news update heres whats happening at this hour. New jerseys Governor Phil Murphy is offering help to some renters. He has signed an executive order allowing the use of security deposits to cover rent payments. But the governor pushed back when asked wh it is time to reopen the states economy we had 253 people die today we saw the heat map go the wrong direction. Positive tests are still going up theyre not plateauing or going down its a fair question to ask. Were not there yet. Were not there yet. Several Public Companies informally surveyed by cnbc say they will not be return iing federally guaranteed loans even after the Treasury Department said it will be difficult for such companies to show they have no alternative sources of funds. One ceo told us it is an oversimplify kag to assume that all Public Companies can raise money in the credit markets. And Top Navy Officials are now reportedly recommending the fired captain of the Aircraft Carrier with the coronavirus outbreak be reinstated he was relieved of his command after his letter pleading for help was leaked. You can get more on our coronavirus coverage by going to cnbc. Com back to you. Sue, thank you. Up next, the path forward. The New York Stock Exchange chief operating officer joins us next his take on what life after the coronavirus lockdown could look like for floor trading thats right after the short break. Its only human to find inspiration in nature. And also find answers. Our search to transform. Farm waste into renewable natural gas led chevron to partner with california bioenergy. Working to provide an alternative source of power. For a cleaner way forward. Say hi. A pandemic has the possibility of bringing us together in ways none of us would have been able to expect. Im so small said the mole. Yes said the boy, but you make a huge difference. Its been over a month since the Stock Exchange shuttered its Trading Floor and theyre awaiting a hint for a b possible reopening. But what would it take for traders to get back to business on the floor the coo of the nyse group along with bob pisani. Michael, thanks for joining us michael, Stacey Cunningham told us a while ago she wants to open the floor as soon as possible. As soon as its safe can you tell us if theres any specific dates being discussed for roping the floor and what specific criteria are you using to determine whether its safe good to see you, bob and we are fully committed to reopening the Trading Floor as soon as its able to be done in a way that reduces the risk for our employees. And for the training floor community. Weve been able to transition to a an electronic configuration flawlessly and the nyse dmms continue to maintain their regulatory obligations so we have the markets for nyse listed securities and in fact, weve been able to raise capital for over 13 companies. Raised about 4. 5 billion just since the Trading Floor closeded last month so the nyse continues to operate and operate smoothly, but reopening is still very important because when you compare the market qualify before the floor was closed with the quality after, you can see impeerically that the nys e Trading Floor saves investors millions of dollars a day. I can give you two examples m the presence of michael, i just want to get to the point about the criteria and i want to get to the point about reopening in a minute, but one of the things that weve talked about is medical testing here i know there was temperature testing going into the nyse a month ago. What kind of new criteria might be used here would you require a coronavirus test antibodies in what would it take to make people feel safe to come on the floor well i think what [ inaudible accurate speculation about when the floor would be open and to set the record straight, theres no reopening date yet established, but if you could anticipate how we will reopen, if we dont know exactly when that will be its like ly that we would reope in sort of a mirror image to how the Trading Floor was reduced in terms of head count and in terms of establishing a very rigorous screening process on the perimeter of the building. So you know i know if that will be in go ahead. Yeah. So let me get to a next point here youve told me in the past that electronic trading has been going very, very well overall. I guess this begs the question with the floor closed, is it really necessary to have the floor at this point . I know you have an opinion on that can you tell us is there really still a reason to keep the nyse floor open yeah, its a great question and what were able to do now in a way that we wouldnt have anticipated months ago is actually look at this as a natural experiment of how does market quality compare before the floor was closed and after here are two examples of data points you can use to evaluate that performance if you look at the quoteded spreads, the width of the bid offer u spread for nyse listeded securities, when the Trading Floors opened, we titaned that spread by about 30 . That reduces the implicit trading costs for institutions and saves investors real money secondly, nyse auctions priceded more accurately when the floor is open. Similar to analysis, we found that difference to be about ten basis points we got to go there, but i get your point pricing is more accurate when the Trading Floor is open. Thats clear youve made that clear michael, coo of nyse group thanks very much and of course lets hope the floor opens sooper rather than later back to you. All right, bob. Thank you for that we do have some breaking news on auto nation kate with the details. Kate hi, sara. Cnbc has swrus confirmed that auto nation says it will be b repaying its Paycheck Protection Program loan the Washington Post reported the company got nearly 95 million in ppp aid auto nations contact tells us the company was eligible and applied on behalf of the 7,000 employees that had been furloughed caused by covid19. A auto nation intended to rehire all 7,000 associates under the program. They added all those ppp used oy for the companies, employees and nothing else and added when the sba had issued new guidance on april 23rd autonation called a Board Meeting at 11 00 a. M. And decided to cancel all ppp applications and was given may 7th. The Washington Post had added in its original report that this company has 26,000 employees in separate states and had the state i. D. Tax number and another big Public Company deciding it will hand that cash back, guys. Are they now not going to rehire those 7,000 furloughed workers . That was not a part of the statement that we were provided. If we get more details on that we will certainly let you know, but i think this is just another case of this new guidance being issued yesterday and Bigger Companies that were able to access this aid looking at whether or not they should have taken it in the first lace apla now some handing it back over. We had this debate yesterday. The guidance has changed and its hard to blame in light of that thanks so much for that. Up next your daily good news rundown. Beyonce teaming up with jack dorsey on the fight against the Coronavirus Crisis and the impossible foods on the u. S. Od supply and thats tonight with jim cramer at 6 00 p. M. Eastern time it is time for whats become one of our favorite segments our good news rundown highlighting the positive moments amid the pain of the coronavirus. Beyonces Charitable Initiative bey good donating 6 million an it will provide for Mental Health and Wellness Services tonight theyll be crashing fans zoom parties the group telling 5 million followers to text their zoom links and meeting i. D. S to have the chance for brothers to pop in on the party. Thats a zoom bomb that people will not complain about. Well, certain people. It depends Online Education Company Coursera offering 2,500 courses for free and it will focus developing skills to help fill in demand jobs tipping their entire 1,200 stimulus check to staff. According to the owner, the tip will be enough for every employee including those not working to get 100, at least. Up income, the new frontier in social distancing one Healthcare Company is shaking up how it shakes up covid19 test samples. Well explain after the break. Risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. For a prospectus co [female vo] restaurants. Are facing a crisis. And theyre counting on your takeout and delivery orders to make it through. Grubhub. Together we can help save the restaurants we love. The mayo clinic shake up how it transports covid19 test samples. Ylan mui with the details. Think of it as the ultimate in social distancing the mayo clinic is using selfdriving shuttles from its mobile testing site in florida to its lab about a mile away its a partnership with the startup called beep the shuttles run three times a day carrying a total of 200 test samples. No one thought that this would be the future of selfdriving cars ask it could be the start of a whole new market. We are thinking, of course, of everything that can be delivered to hospital again, in the shuttle. It can be also medicine and drugs and for medical staff. Guy, they tell me there have been no accidents so far back over to you ylan, it sounds like a very positive case. We hope it works now a big week for earnings to come next week well hear from adidas, boeing, microsoft, tesla, ebay, amazon, mcdonalds, apple, visa, many more, im glad we didnt script every Single Company reporting this week, but that was a taste of them. Mike, what are the key things were watching out for some of those big tech names have run up incredibly welcoming out of these earnings. On one level that sense will get tested that these are bulletproof stocks that everyone has to own for any environment, but i also think overall the earnings season will be a little bit of when the market will further go into the direction of individual corporate fundamentals and having stocks move against each other as opposed the market having one big blob its not been decisive in recent weeks. And im going to be watching for one of the stocks of the year reporting earnings next week which is clorox of 25 . The question for so many of these companies that are benefiting as a result of this pandemic like clorox is our Consumer Behavior going to be altered forever . Are we always going to be buying bleach wipes and in my family, wilfred and mike, that will be the case. Not injecting it or consuming it. Correct thanks for watching stay healthy melissa lee has you covered next. Welcome to fast money, happy friday, your trader for the hour, guy adami, tim seymour, and jeff mills. Something thats only happened two times before carter worth will be here to explain. Plus beyond incredible and well tell you what sent shares of beyond meat soaring today and the chart of the week and how this mystery stock got the