i'm carl quintanilla with morgan brennan and jon fortt from various locations. dow session high was up 378 on a very busy day for earnings consumer confidence tumbling this morning a two-day fed meeting that begins, morgan to tonight we will get a look at starbucks, ford, alphabet, and other major companies. >> i think peter at advisory group hit the discussion, noting the reasons the markets had been optimistic, the rallies in recent weeks, improved testing capacity, hopes about treatments and vaccines moving forward, all bolstering some of the reopening plans in places like most significantly in the last 12 hours, texas plus what is essentially, speaking of the fed meeting, unlimited central bank support which is the key reason you've seen the s&p come back it early october 2019 levels, but also, he notes that the economic envoorlt and how that's playing out in treasuries and high yield, the collapse in crude as well, is a very different scenario and given that fact and all the uncertainty about when we get back to an economic place similar to last october, the bar is now much higher to hurdle for equities to continue this run. i do think that that is the narrative that is playing out and shaping up with all of these earnings we're getting case in point this morning, you mentioned some of the guidance that was pulled by some of the very biggest multinational companies in the world, including some of those companies that you think some segments might actually be benefitting from this, whether it's 3m or a name like ups where they have seen a big spike in domestic volumes, all the packages that are going to consumers' doorsteps but not enough to offset the costs and the weakness in other businesses like business to business. carl >> meantime getting some breaking news this morning on boeing and for that we are going to turn to phil lebeau hey, phil. >> carl, take a look at shares of boeing moving lower on a report from "the wall street journal" citing sources familiar with the doj and regulators looking into the 737 max assembly line and whether or not there were production lapses and quality control lapses that may raise questions of a civil an criminal nature. that's the gist of the story from the "wall street journal" which is why shares of boeing are moving lower remember, guys, there has been a doj or a grand jury investigation, we should say, looking into boeing for some time, but we have not heard any reports or any leaks regarding that grand jury probe for some time the "wall street journal" citing sources is reporting that there is greater civil and criminal scrutiny taking a look at the 737 max and in particular, some of the quality control lapses that may have been taking place in that assembly process by the way, guys, we have reached out to boeing for a comment regarding this report. we have not heard back from boeing we will let you know. >> thank you in the meantime what are respondents to cnbc's latest fed survey saying about the outlook for the economy? our steve liesman has the results. steve? >> jon, thank you. two clear messages from the cnbc fed survey first, it's going to take a long time for the economy to get back, maybe as much as one or two years and maybe longer than markets are figuring second, it will take trillions more to get back to the economy that we had before from congress and from the federal reserve first take a look at the unemployment rate forecast among the 36 respondents 4.4% is the unemployment rate now. it's seen going up to 19% and hitting a peak in august 2020. it's going to elevate. unemployment will be with us for a while. back down to 11% by year end and 7% a year from this december in 2021. how much more money will it take at least 3.5 trillion from the federal reserve. its balance sheet up by $3 trillion, depending where you count it and congress another $2 trillion they've spent $2.8 trillion. we asked our respondents to grade the different financial leaders in this crisis jay powell is getting an a-minus. they mostly agree with his policies except for where the fed is buying high yield steven mnuchin gets a b-plus donald trump gets a c-minus, d-plus, surprising from a group that typically has put their economic approval of the president at 60% it's now down to 40% the lowest in our survey, as well as a decline in his expected chances of re-election. three of the four are doing well one of them, the big boss, not doing as well. >> steven, i have a question for you then about the implications you think of some of this. that's a lot of spending and at a stage like this where we're talking about the economy and keeping it from going into a tailspin, everybody saying don't worry about it, but eventually i imagine there are implications to these trillions of dollars in spending how to you expect future fed surveys to take that into account? what will the questions be >> right now, we're already asking those questions and had i known you were asking would have looked it up, but i can tell you there is not a lot of concern right now in the -- about the deficit or the inflationary implications of it it is something that i believe -- okay. how concerned are you about the impact of high budget deficits on the economy 14% not at all, 57% somewhat concerned. we're going to have these big deficits for a long time and as long as interest rates remain low i don't think there's going to be a whole lot of concern and as long as inflation remains low. the issue of inflation is a topic for another day, but there's a lot of different views on whether the ultimate impact is inflationary or deflationary. >> i love hearing you call him jonathan it makes me smile. but in terms of -- >> is that not what we call him? >> i call him jon fortt. but it's -- but anyway the two-day fed meeting under way, there seems to be an expectation in the market that we're not going to get major announcements but more clarity on how all of these programs and how all of these efforts by the fed have been playing out so far, is that what you're expecting? or do you think there's room for some surprise here >> i don't think so. it's interesting, all of the action the federal reserve is outside of the meetings essentially. the neck big shoe we're waiting to drop is the main street lending facility a $600 billion program it's a real lending program, not like ppp which is essentially a grant disguised as a loan. the fed, i understand, is working very hard and been criticized, 2,000 comments are on this program that it received is trying to distill right now that will be the next shoe yesterday we reported that they expanded the municipal lending facility the trillions i'm talking about are the trillions expected by respondents from the fed the only place it could examine from tomorrow is the additional easing of quantitative easing. >> thank you steve. >> senator elizabeth warren and respective alexandria ocasio-cortez announcing a joint proposal to halt all m&a activity by large companies during the pandemic. joining us to discuss is ftc commissioner noah phillips and ylan mui good morning to both of you. commissioner, you are against this proposal arguing there's plenty of room in the current process for these things to be reviewed and actually merger and acquisition activity is down during the crisis, as it is, but i wonder some are proposing that the congress could change, instruct the ftc to lower the reporting threshold for the hart scott redino act so there's nor transparency going on. would you be in favor of that? >> we're conducting a study right now at the acquisitions that tech companies are undertaking, but what we've seen over the course of our experience with heart scott re dino a lot of transactions, the overwhelming bulk of the transactions we see aren't remotely competitively interesting. i haven't seen the specific legislative proposal but what we are seeing is this, m&a in this crisis is down merger review is continuing a pace this is an odd time to be calling to shut down m&a entirely, in particular, because of the important role that it can help in the economy. >> yeah. i mean it certainly seems to me if you thought there was a problem beforehand, then you're worried with m&a and big companies buying smaller companies, you're more worried about it now with some of those big companies being relatively healthy and the smaller companies potentially not. but there could be some unintended consequences to freezing or shutting down this type of activity there are companies that would very much like to be bought up by a larger company, particularly in tech. >> absolutely. what we're seeing right now, whether talking about private equity companies like sick ka mour or large companies like boeing, people are pulling out of deals they want to use that capital to pay workers to run plants and what have you. shutting down m&a activity entirely is throwing the baby out with the bath water. we're seeing a decline in m&a, the agencies are continuing to watch what's going on, merger enforcement is continuing a pace, it doesn't make a lot of sense to shut down merger activity entirely. >> commissioner phillips, one of the parts of the proposal from senators warren and representative ocasio-cortez is looking specifically at critical industries like ppe manufacturing during this crisis or, for example, hospital consolidation, the health care industry, could it potentially make sense to see a moratorium on mergers in specific sectors >> i don't think that makes a heck of a lot of sense we are looking very carefully at the health care industry and in the last few weeks we've gone to court to stop a hospital merger in philadelphia. we've succeeded in preventing pharmaceutical m&a deals we brought a monopolization case to stop a gene sequences and we were successful. we continue to be vigorous in looking at the deals in front of us and coming whether their effect is competitive or anti-competitive or competitively neutral. but to shut down all m&a, prevents the market from working and i don't think that's good. i think that prevents in many cases capital from going to pay workers to keep plants running to make important investments. we want to let that market function continue to happen. >> commissioner, you also mentioned that you twiguys are still looking at the deals by big tech companies, some of the smaller acquisitions they've made what about your existing reviews, are those continuing a pace or do you anticipate seeing some delay in those happening? >> no delay at all at the very beginning we had to adjust like many other people are adjusting to working from home, but our systems are back online and we're absolutely continuing both the merger review and all of the enforcement we have been doing before we have less work because there's less m&a coming in, but there's absolutely no step down in the level of enforcement going on >> commissioner, this is morgan. just to go back to the m&a debate that is brewing right now, the flip side of that is that i think lawmakers would argue they want to see the ftc have more capability, more time and energy to dedicate the things like price gouging we've seen some allegations of in the midst of this outbreak, things like policing spurious business claims against something i know that you've been all over including in recent days what do you say to that? how much of those types of activities have you been seeing, even if you've seen a down tick in m&a, have there been up ticks in these other types of ac tiftz? >> so our reports in terms of consumer protection concerns about scams related to the coronavirus, whether they be bogus health claims in terms of cures or tests or treatments or claims of fraud related to government where people are claiming to be the government or trying to get credit card information from small businesses and people and claiming that they're soeshtds with the government and the c.a.r.e.s. act those claims are going up dramatically and we're working very hard not only as an agency but also with our partners at the federal communications commission, at the fda, doj, to stop those issues but that has not at all reduced the level of scrutiny we're applying to mergers and acquisitions or the conduct investigateions that go on at the ftc. >> we're entering a period where health care in general is going to be an active and dynamic part of our economy back to the m&a portion, what if a very small biotech company has a product that has real promise for either answering covid-19 or something else important and they want their product to get the leverage of scale and get bought, are there going to be carve outs, would there be carve outs for these bans on m&a >> well, the ban on m&a is a legislative proposal, and i've expressed some concern about that we're going to continue to reveal deals to see what competitive effect they have if they're pro-competitive, if scale allows companies to make investments in new pharmaceuticals or grow their business those are the facts we woulds always take into account in deciding how to proceed on a given merger >> commissioner, i want to go back to that question about the hsr act and some calls to lower the threshold for reporting on it i, as a journalist, perhaps i suppose tend to be in favor of increased transparency in almost every case would you specifically with that be in favor of reducing the requirements so we see more of what's been happening during this period? later we can look back and if everything is going fine as you suggest that it is, we'll know we're looking at ppp and see that companies are doing things that people didn't expect. wouldn't we want to know if something similar were happening in acquisition activity? >> sure. let me say a few things. the first thing is that what we're seeing right now is less m&a. we're seeing dramatically less m&a than we did a few months ago. that's consistent with what we've seen in past financial crises, and this crisis is more than financial but it includes a financial and economic component. the second thing is, where the thresholds are today on hart scott rhoden no the transactions that get caught in the nets are not interesting competitively. many are small purchases of equity, conversions of shares and this sort of thing so lowering the threshold gets a lot more deals being reviewed by the agency, a lot more transaction costs and time to close deals that aren't interesting. it's not clear it catches a lot of anti- -- new anti-competitive conduct. we do bring litigation to address anti-competitive transactions that aren't caught in our net we've always had that jurisdiction and had that before the clayton act, long before hart scott rhoden no we're litigating a case we didn't catch because it didn't come through hart scott and that's not our only tool what you get by lowering the threshold is a lot more work to accomplish a lot less. i'm not sure that's the answer i think right sizing and thinking about where we ought to focus better is a smart idea and that's precisely why we've got a study throughout looking at small deals in the tech sector. >> all right well, i'm sure the debate will continue and we'll see where this goes. thank you, commissioner phillips, and our own ylan mui. >> after the break, drugmaker narasimhan reporting earnings overnight. we will talk with the ceo of the company's latest efforts to tackle the coronavirus stay with us ever since we've gone mobile on the now platform, something's gotten into the office. i hear you. feels like there's no barriers between departments now. do you think everyone appreciates it? i do. huh... forgot my glasses. serivcenow. the smarter way to workflow. and... l(music fades in). hey! -hi! ♪ ♪ ♪ ♪ want to get to meg tirrell with the ceo of novartis good morning, meg. >> good morning, carl. dr. vasant narasimhan thank you for joining us this morning. i want to start by asking you about your outlook for the year. you guys confirmed your 2020 guidance and said on the call that you are expecting to see health systems in major markets to come back online for things other than covid-19 in the second quarter tell us how you're looking at the year ahead >> great to be here with you we were be excited to see our first-quarter results. we had operating income growth partially helped by the covid pandemic stocking but even independent of that strong performance. when we look at the dynamics in health care systems i think it's very important for patients and providers that we start to get to a normal rhythm because one of the hidden costs of this pandemic is patients that need really important care are not getting that care. our belief is that in our conversations with health care systems around the world, there is a desire for those systems to get patients back in, really try to come up with creative ways to manage the risks with respect to the pandemic, but make sure the patients get the care that they need we're optimistic that can happen in the q2 time period. future waves, hard to know, but we're optimistic with all of the knowledge that we've generated a on how to treat this virus, track the virus, how to take public health measures, that future waves can be managed hopefully better than the first wave to limit the impact on health care systems. >> and certainly part of the hope for being able to manage future waves better will be to have effective treatments and novartis has several that you are running clinical trials on now and announced a new one of an immune no mod due la torre drug similar to regeneron, different target but going after the immune response that causes the lung inflammation. what's your expectation on the outlook for that given the sort of mixed results we saw yesterday? >> yeah. first it's a high bar, to find effective medicines from repurposed drugs we know that this is a situation where we need to do everything possible to help patients in the hospital or icu and frontline workers working tirelessly to try to manage these patients and help the health care systems cope what we believe is that looking at multiple ways of tackling that severe storm that we're seeing in patients in the icu is prudent and it's important to do that wut very rigorous trials. i commend the other sponsors of the anti-l 6 studies we believe this acts further upstream to perhaps impact the storm a little bit -- more broadly and hopefully mitigate the impact this is having on patients with the jack inhibitor we have a similar hope the most important things for everyone is to wait for the results of the adequately powered randomized double blind controlled studies that will come out over the coming months. there's a lot of studies reading out, but the ones that matter are those gold standard studies and that will tell us whether we have something in this first wave of repurposed medicines then, of course, there's going to be future technologies as well we can look at. >> vasant, hi, it's jon fortt. there is a proposal floating out there to freeze m&a activity for large companies during this crisis we were just talking to ftc commissioner noah phillips about it moments ago novartis just completed an acquisition last week. what would you think of a proposal like that to freeze m&a activity and what would its effect be on you >> it's important to look at the different sectors with the appropriate -- when you look at health care and our sector pharmaceuticals we're in a healthy financial state and taking care of our employees and contributing to the pandemic response we have the opportunity to continue to look at business development licensing and m&a. we also need to be responsible corporate citizens if it's determined the best approach from the u.s. government or other regulators is to limit m&a, we, of course, would abide by it. we feel at this moment we can do very prudent business development activity that's done in a financially responsible way that serves innovation with technologies like am plea owe tech or we acquired a cholesterol lowering and get the medicines to patients faster and broadly. >> how much are you worried about or thinking about the degree to which advances come, vis-a-vis the coronavirus, and the nation's fight over the early promises where nationalism has a detrimental effect on global public health >> so i think this is an important consideration, but i'm optimistic when i look at some of the -- all of the great collaboration happening now across the industry, whether it's the gates covid accelerator we're working on, a range of different sponsors in biopharmaceutical companies which works to get manufacturing, research, development scale. as an industry we're trying to take a global perspective. we are hopeful we can overcome some of the facialism that has happened in the past during the h1n1 pandemic, there were moments where there was nationalism to hold back supply. i think this is a moment where we get a good they puttic or vaccine we need to ensure broad access to populations around the world. >> an important question and one drug that's had a ton of attention is hydroxychloroquine. novartis is donating 130 million doses of hydroxychloroquine but you're running a controlled clinical trial tell us about how you would assess the data you've already seen on that drug and is it difficult to run this controlled trial when the drug is being used so widely in treatment? >> look, these are great questions. i think the first thing for all of the listeners to understand there's a range of studies reading out. the design of the studies matter, the patient populations matter, the dosing matters, all of these are important factors but the design is paramount. do we have randomization, are we double blinded, are we adequately powered that's the gold standard that regulators use to determine if a drug works or not. we've had very few studies like that most of the studies on hydroxychloroquine are indicative of perhaps some benefit in some populations, a lack of benefit in other populations, but the truth is we simply don't know. our goal is to run a study that would be adequately pourd, endorsed by the fda, 440 patients, randomized to hydroxychloroquine, hydroxychloroquine plus aazithromycin and then best standard of care across the united states to see if this drug can have an impact. we are concerned about our ability to enroll, but overall we're optimistic we can get the 440 patients on therapy. we're also supporting about 13 investigator initiated studies as well as major national registries such as in switzerland or spain that are trying to track the use of the medicine and get us moredata >> well, dr. narasimhan we appreciate you being with us and eagerly await updates on those results. >> thank you great to see you. >> thanks for that always good to see you let's get to sue herera and an update this morning. >> good morning, carl, everyone, here's what we though at this hour in a webinar with the economic club of new york, white house health adviser anthony fauci cautioned against reopening the country too quickly warning it could slow down the country's recovery >> if we are unsuccessful or prematurely trying to open up and we've additional outbreaks that are out of control it could be much more than that and it could be a rebound to get us right back in the same boat that we were in a few weeks ago >> and a new poll shows most americans will avoid sports events, movies, concerts and amusement parks when they reopen to the public, at least until a coronavirus vaccine is available. the reuters poll found that just four in ten avid sports fans or moviegoers would attend those events before there is a vaccine. and sydney's beach reopened to swimmers and surfers despite the area having australia's highest concentration of coronavirus cases. people are to the permitted to linger on the sand and official are keeping tallies on the number coming in and out of gates to ensure social distancing the beach had been closed for five weeks in just the last few minutes about 20 minutes ago, majority leader steny hoyer told reporters the house of representatives will not come back to washington next week as schedule as cases continue to rise in the nation's capital as always, for more coronavirus coverage, head to our website, cnbc.com jon, over to you >> sue, thanks that's a lot changing constantly on a lot of fronts after the break, don't miss the ceo of polaris and how much of an impact did covid-19 have on their earnings wee ckn o. st wh us itw welcome back shares of polaris shooting higher this morning back towards the flat line after the company reported lower than expected q1 results. the company withdrew guidance last month due to the coronavirus. as you can see shares are up about 1, 1.5%. joining us on the results, polaris ceo and chairman scott wine thanks for being with us today. >> good morning. thanks for having us >> so, part of the reason that stock is actually moving higher this morning is because you gave some pretty upbeat retail commentary and i think that got a lot of folks' attention, given the fact that we are seeing this big spike in unemployment and what is really essentially consensus view from economists that we're already in a recession in the midst of this coronavirus outbreak what are you seeing and where are you seeing that demand >> you know, morgan, i actually agree with the economists that we likely are in a recession and we are prepared for that we've taken a lot of costs, almost $120 million of operating expense out and we planned for the second quarter retail sales to be down, partly because of the stimulus and people want to use our products to social distance and get outside, we reported this morning that through yesterday, off-road vehicles, our largest segment, was up 15% or mid teens percent through april year over year encouraged how our dealers are handling this and we've launched innovative ways with a click buy rides to make it easier for people to use, access to the dealers to buy products, but really encouraged and surprised by the demand early on in april. >> where do you think that demand is coming from? we're talking about polaris is known for the big ticket discretionary items, you sell things like indian motor cycles and boats, what do you think is fueling it right now is it a pull forward in demand, discounting, something else? >> it's not discounting because lowered our promotional levels for years. the hot spots are not core lathed well with where we have most of our riding areas and most of the demand for our products we think a lot of the areas in states less impacted people want to get outside and our tag line is think outside and enjoy our products it's a way to be out with your families an those that you social distance with so we believe we're offering an opportunity for people to rec create in this environment where there aren't many options. >> to your point about the hot spots at a time where i think both the general public and the markets are so focused on the reopening of local economies right now and what that looks like on a state by state basis, 85% of your dealer are already open and operating what does that process look like and how are they handling potential customers right now? >> you know, it was -- when we pulled our guidance it was a shock to the system and many of our dealers were not able to operate. as the rules came out and we started to understand how we fit, most of our power sport dealers have been able to operate but we've helped them with what we've learned about social distancing, cleanliness, just all of the protocols dealing with covid-19, they are implementing we've helped our dealers with scheduling of customers to come in to buy products and really made it as a comfortable feeling for our customers in the buying process as we possibly can that's been helpful to us. really, the dealer closures i think they maxed out at down 27%, now down less than 15% and seeing more and more of those come back. on the boat side of the business, consumer demand has been pretty good, but we've had more dealers that were not able to open in the boat segment than the other parts of the business. >> good morning. it's jon fortt help us understand what's happening with your workforce right now. you say you've taken out $120 million worth of annualized operating expenses, on opex will be announced, what's happened with heyoffs and the furloughs imp imply you're bringing people back >> we pride ourselves on our culture and team and it's always disappointing when we have to part ways with our teammates but as we looked at the demand environment and dealt with what we believe is going to have to be taken, we did take a number of reductions in force throughout the first part of this year. we also asked those that were staying around to take a two-week furlough in the second quarter to help us manage our liquidity and cash flow. really, we've asked a lot of our employees, but as i said in my earnings speech this morning, they have really stepped up in a major way to make sure that we can deliver for our dealers and customers and really proud of the way the team has operated early on in this pandemic. >> scott, i don't know, i mean when it comes to components and supply chain, so many stories about mexico, for example, not being willing to open their factories, shortage of motors, to what degree is that a headwind >> it's a headwind carl and it started out with supply chain issues with china and we worked through those and then it was problems in italy and now problems in mexico india was in there as well we are working very hard with our partners, national association of manufacturers has been very helpful to try to make sure that we can get mexico and our supply chain and our plant there open as quickly as possible certainly if that stays shut for a lengthy period of time it could be problematic we've worked through this in every other country that it's happened and we're confident we can work through it in mexico as well >> scott, just to bring this full circle the fact that you believe we're already in a recession right now and taking these actions with the company, with the balance sheet to prepare for that, how long do you anticipate this playing out? what does miit mean from a consumer appetite standpoint if how does it compare to previous recessions you've been through with polaris >> the last recession was a little bit different because we had a good bit of lead up to it. we saw the -- when lehman failed there was a couple months, and as we budgeted for 2009 we had foresight into what to expect. this was a stoppage of commerce almost immediately which caused us to react very fast. you know, we believe that we've got a liquidity, we've got our cost situation in pretty good shape, so we are prepared to endear a fairly lengthy recession. we've publicly said we believe this is a u recovery and i don't know how long the bottom of the "u" is going to be, but we'll be ready for it we're encouraged by the early signs of demand in april and we're not confident that's going to continue, but there's more consumer strength and demand for the opportunity to get outside than we had anticipated. we're prepared for the worst and we'll be ready for the best. >> scott wine of polaris, thanks for joining us today >> thank you >> a lot of people hoping for a lower case "u. we are going to take a quick commercial break the major indices off their lows dow and s&p are positive, nasdaq slight nate.'lbeiglyegiv wel rht back. at&t knows you have a lot of things on your mind. staying connected shouldn't be one of them. that's why we're offering contactless delivery and set-up on all devices. and for those experiencing financial hardship due to this crisis, we'll work with you to keep your service up and running. hi! because at at&t, we're always committed to keeping you connected. new york city is in some dire financial straits as the coronavirus continues to take its toll on the economy. contessa brewer has more on that this morning hi, contessa. >> hi, carl. the financial outlook is dim for the bright lights of this big city the city's revenue is plummeting amid the coronavirus crisis, facing a shortfall of nearly $10 billion over the next two years. the city's budget office predicts half a million lost jobs over the next year. tourism, of course, is a major driver here. last year 65 million visitors came to new york, but restaurants, museums, broadway, fifth avenue, shopping, all of it shut down the city supported tourism bureau will furlough half its workers starting in may and we are seeing red flag warnings going up about commercial real estate and residential flight out of this dense urban area the mayor's establishing a task force that will tackle large and small businesses, hospitality, non-profits and faith-based groups and other areas, but he's raised questions about how to pay for what he's calling a fairer recovery as the city's fortunes falter. one more note here, in case you think well, i don't live in new york, why does it matter to me, the economic output of this metropolitan area accounts for roughly 10% of national gdp. that's according to data track research what matters here, matters to the nation morgan >> just to put that in context it's nice to see you outside in front of a city scape to tell us about all of this. >> it's great. >> contessa brewer, thank you. as we head to break, take a look at shares of southwest. the airline posting its first quarterly loss since 2011. we'll be right back. >> hopefully april will be the worst, you know, my rough estimate is that we'll burn about $900 million this month and hopefully gets better in may and june and then hopefully remarkably better in july. we can't sustain this kind of cash burn indefinitely we'll need to reduce that cash burn and that's probably a combination of continuing to reduce our flight schedule so that we're to the incurring the operating expenses associated with the flights as well as just generating more traffic and more revenue. these days staying connected is more important than ever. so we're working 24/7 to maintain a reliable network, to meet your growing internet needs. we're helping customers who are experiencing financial difficulties stay connected. we're increasing internet speeds for low income families in our internet essentials program. and delivering self-install kits to your door. nos comprometemos a mantenerte conectado. we're committed to keeping you connected. for more information on how you can stay connected, visit xfinity.com/prepare. dow has been as high as 371 and low as minus 102 as some of the gainers include dow inc, 3m, goldman, exxon, we're going to get a slew of very large names and 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still did put out the guidance which i think is very notable given pe wi we hav dozens of companies pull why did you still feel confident to put information out there what sort of data are you tracking that enables you to do that >> we started with a good quarter for us both in terms of revenue as well as earnings. we thought it was important particularly in a time of uncertainty like this to be able to share the information that we think is most important when charting a course for the future we thought that giving more information rather than less would be most helpful at this point. >> yeah, there's this belief that's emerged from a number of tech ceos that this crisis will accelerate the digitization we have seen in a number of industries is this something you're anticipating >> i think it will the crisis is changing lives and it will change the way that companies do business. eliminating single points of failure and factory and is sup r supplie suppliers. technology such as we have will play a role. >> what are those conversations looking like with some of your du customers in places like here in the u.s. where we're starting to see local economies begin to come back online in some industries that were deemed essential which i know your business is deemed essential. some businesses never closed down in the first place. what has that done in term of the technology you offer >> it varies by industry, for sure we're playing a very important role in helping people produce masks and respirators. that part of our business is running strong as we're helping people maintain and encrease production prepared foods is another area that remains critically mornts there is a degree of additional remote support, remote engineering that we think is important right now but will remain important in the world that we emerge into. >> given the fact that rockwell is deemed an essential business because it needs to support some of these critical infrastructure industry, how have you been managing safety protocols and keeping your staff and employees safe >> first and foremost, looking at implementing measures that maximize the safety of our employees. starting with our employees that are in our manufacturing facilities around the world, we have made dramatic changes in the work flows to increase social distancing to implement special deep cleaning procedures and then for those who can continue to work from home, then we encourage that portion of our work force to do so. many of us have been working from home for over a month and a half now >> yeah, we were talking to the ceo of polaris a short while ago and he said he believes we're in a recession. it could be a u shaped and they're preparing for that to play out for a longer than maybe expected period of time. how do you see it right now through the lens of rockwell automation and those different manufacturing customers that you do work with >> we have taken a significant amount of cost reductions to align our structure with current demand but we also adopted as a fundamental philosophy a preservation of talent because that's our most important asset and to be ready to come back and participate in the recovery is crucial for us now we have modelled various shapes of the recovery and we believe that we have plans ready to implement regardless of what shape that recovery ends uptaking >> i'm curious you think the future will look like especially now as things like social distancing and some of these newer safety protocols maybe take route and become a much more permanent practice? >> it's a good question. there's still going to be people in the factory of the future it's people who are valued for their decision making skills and who are comfortable interacting with the technology. it's both. to be able to compete effectively but also have the decision making and the creativity to create new lines of business. that's going to be more important to be add to adjust to rapidly changing demands >> blake moret, thank you so much for joining us today. >> thank you it's been a very busy morning. all the earnings we have gotten plus the treasury secretary was on squawk talking about what's become a political flash point and that's the execution of those small ppp loans. >> it is unfortunate there's small number of companies that's kraets e created a lot of publicity that took loans i think it was inappropriate for most of the companies to take the loan it was clear there was a certification. we don't think they should have been allowed to. we put out an faq clarifying the certification and said if they paid back the loans in two weeks so we could reprocess that money, they would have no liability. otherwise they would have liability. >> it's been a tough balance, john getting that money out quickly because businesses were obviously bleeding cash and we're having to decide whether or not to keep their employees you got to get the money out there quick but the oversight will become more of a building story as more money is dolled out and the broad consensus is more money will be needed. >> yeah, i don't know about you but i was a little surprised that the treasury secretary framed things the way he did suggesting that certain types of businesses that could technically apply for the funds shouldn't have when ever folks talk about taxes and tax breaks people tend to say if you get that break, go ahead and get it why should it be didn't for the funds. i think the onnous is on the people crafting the legislation, the people putting forth the legislation to target it in the right way. if people expect third-degree to -- expected this to go to small business then it has to go to small people what people expect is small. i don't think you can blame the businesses if i doesn't work out the way you crafted it >> they were just grabbing every source of liquidity they could the other source has been about how our lives will change whether we're flying or shopping president is on the tape saying they working with testing programs >> the process is you show up through the back of the store and there's a table set up with a person wearing a mask holding a thermometer. as you approach this table we're trying to maintain six feet of distance we ask you a series of questions about how you're feeling, whether or not you've traveled if you pass that, we take your temperature. if it's under 100, you can go to work >> sounds like some of the practices we have been see ng china for a china for a while now? >> it does i'm thinking ant about las vegas sands. the fact that pandemics are, like it or not, woven into the social fabric of many asians companies and there's lesson we can learn there. going back to the jet blue interview that not only are the folks, the crews on planes but the passengers that will be riding those planes are going to be mandated to wear face masks as well. you'll have to think if that becomes a broader industry as well >> we'll get google tonight and starbucks and ford let's get to the domino. thanks very much, carl our breaking news coverage continues right now. welcome to the show. stocks struggling to carve out a fifth straight day of gains. the nasdaq in the red. the dow is coming under pressure from boeing following reports the play makers is facing a possible criminal investigation. the dow is up almost 380 points at its highs earlier on this hour the investment economy

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