The department of Justice Reportedly now taking a closer look at potential fraud. Boeing saying, no thank you to the government bailout taking matters into its own hands it is friday, may 1, 2020, here on cnbc. Good morning, good afternoon, good evening and welcome im Brian Sullivan thank you for joining us on this friday and applicants 427 days are now over it is may 1 but stocks are looking weak to start the month. Futures are off sharply 450 on the dow as President Trump threatened new tariffs on china partly because of the retaliation on the coronavirus pandemic and what he views as misinformation all of this as the s p and the dow closed out their best month in 33 years. The nasdaq, their best in 20 shares of apple are under pressure this friday seeing weak iphone sales around the pandemic but services did surge as everybody is sitting on the cloud. Ceo tim cook pulling apples guidance saying, quote, he has great confidence in the longterm business for apple in the short term, it is hard to see out the windshield and knowing what the next 60 days will look like then there is amazon as we all remain stuck at home and it is the outlook that is hurting stock this morning up 5 company saying if you are an amazon share hoerld, you may need to take a seat on this one. They plan to spend all of the Second Quarter profit to its response to the pandemic that stock down. In asia, stocks falling in japan. Also in australia, we saw some falling. The markets were closed. Also the case of course in france, germany, spain all closed for the holiday it is open and down about 2 topping your washington headlines. New outrage over the Small Business program known as the ppp. Bloomberg knows that the Justice Department has seen early signs of fraud where it has approved and rejected applications. Kate rogers has the story. The report says the doj has reached out to the 15 to 20 largest processors and as well as the sba we have not yet got a comment back so far, there havent been any public reports of fraud. This is after one of the programs was met with criticis when businesses like shake shack and sports programs such as the lakers were able to access the ppp. Now both of those companies have returned their loans the new process is shorter and more stream lined. A twopage application the borrower has to make a certification in good faith that the current Economic Conditions right now make this necessary. And the 7 a funding requirements exhausting other sources and saying hedge funds and others may not apply. This comes after the Banking Community was divided with regard to the banking window for those with under 1 billion in assets to ensure e tran was running more smoothly and to make sure smaller businesses could access aid the idea that this tips the hand to certain businesses when in reality all businesses of all sizes borrow are banks of all sizes. It is unclear why that concern are we talking about fraud on borrowers parts lying about the need for the money, the transactions, the forms . It is not yet clear it seems the emphasis here is really the doj honing in the sba declined to comment. A lot of the pressure is on the borrower to make that indication in good faith. We heard them say loans above 2 million will be audited. They put out the guidance saying you could return this money by may 7 and take into consideration if you are a Larger Company that you dont have access to more elsewhere and that this made the loan necessary. Guidance coming out after the fact is to clear up some of the things that may have gotten through in round one but the guidance does apply to round one and round two. That is important. It is an important program. We appreciate you joining us well see you and have a good one. Thank you. Lets get back to your markets and your money so far, about 47 or 236 of the s p 500 have reported their numbers. Of those roughly twothirds on the upside 90 companies have issued profit warnings on revenues, sales. Analysts expect s p 500 earnings will drop by about 14 those sound like tough numbers we are coming off the best month for stocks since 1987. Lets bring in Portfolio Manager from Washington Crossing you heard the earnings numbers, the guidance, if we get it pretty dismal. The majority of the country still on lockdown. People talking about this pandemic lasting quarters, if not, up to two years and yet having the best month since 1987 caller the markets reacting to the reaction, also fiscal stimulus on the globe and on the table that has evolved in risk taking that has really shored up the credit markets you had the mechanism for credit ease up, hence one of the reasons you had such a violent move to the down side. The markets have readjusted higher are you surprised by how violent the snap back has been a bit surprised overall, if you are a trader, you had to play catch up if you are an investor and you look at two to three years and you know weve always been cautious and tempered with our message, we would be buyers buying Higher Quality companies. The likes of these like home depot and Nike Companies that dont have a lot of debt on their Balance Sheet and have a tremendous amount of predictable Free Cash Flow that goes out to year three and four. The price equity based on the earnings out to years two, three and four they are not pricing their valuations or companys price target off of what is happening in this quarter or next. Nike mentioned they are greatly exposed to china and that economy is far from normal. Im surprised that is on your watch, chad . Caller yeah, we own it valuation has become more attractive what nike has done, theyve been able to pivot to more of an online mode of delivery. That in it self, it operated on higher operating margins in 2022 and 2023 we do believe the pandemic is extremely serious and will have an impact into 2020. We are hoping that the Economic Activity will start to accelerate and pick up into q 3 and q 4 and the Global Economy will start to get into a modest growth trend hence the reason why we are recommending investors look a little further out got to look out these days here chad morganlander. Best to you and yours. Have a good weekend. When we come back on Worldwide Exchange, boeing shunning a handout from the federal government and more from gileads virus fighting drug and find out what corporate insiders are the most bullish on their own stocks right now including one big restaurant chain seeing huge insider buying, all as texas plans to reopen their restaurants partly beginning day. A busy hour ahead. We are back after this there are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Welcome back after seeing positive results around its remdesivir drug, new comments from gilead about getting the drug out to as many people as fast as possible getting to those top headlines with Frank Holland gilead said it will work with International Partners to produce remdesivir next year they expect to produce 140,000 rounds of the 10day treatment by the end of may and anticipate it can make a million by the end of the year. Amgen plans to test its drug otezla as well boeing raised 25 billion the number that says it will avoid taking government aid. The capital raised is the sixth largest bond offering of all time wells fargo, one of the largest home lenders says it will no longer accept applications for home equity lines of credit. Chase also said it was dropping lines of credit and tightening conditions for which it will accept new mortgages on deck, would you buy a new car right now . Well speak to the ceo of one of the largest car dealership chains and get his idea on the economic crisis. Announcer todays big number 12. 7 . That is how much the s p 500 gained in the month of april the indexs best month since january 1987 i came across sofi and it was the best decision of my life. I feel cared about as a member. Were getting a super competitive Interest Rate on our money. Were able to invest through the same exact platform. I really liked that they didnt have any hidden or extra fees. Sofi has brought me peace of mind. Truly thank you for helping me prepare for whatever the future has in store. But when allergies and congestion strike, take allegrad. A nondrowsy antihistamine plus a powerful decongestant. So you can always say yes to putting your true colors on display. Say yes to allegrad. Make it tough to take care of yourself, thats why you can rely on natures bounty. To give you the support you need. To stay motivated keep active and sleep well. Add a little more health to your day. With natures bounty. It is friday, may 1. Stocks came off their best month since 1987 dow futures now down 460 as the president threatens tariffs on china. Keep an eye on these going forward. Thats the macro market. Lets check on some individual stocks to Pay Attention to wow Western Digital taking a hit, down 11 after Third Quarter earnings missed forecast and lower than expected guidance Western Digital saying the demand for desk top weak also hurting the companys sales. In the meantime, visa beats with growth visa cfo says all the growth is coming from online spending. No surprise there. Which doubled in the last two weeks of april United Airlines posts a narrower than expected loss with the biggest crisis in aviation history. At about 96 million at the end of april but it expects to burn about 40 to 45 many illillion h talking some other top headlines including some planned strikes of companies from target, instacart and amazon new york city is shutting the subways down overnight to help battle the spread. The cloerzs will start may 6 and continue during the pandemic closed from 1 00 a. M. To 5 00 a. M. This comes as Homeless People have been found sleeping in cars meeting with Bond Investors as they consider borrowing funds from the Federal Reserve to stay up and running employees from some of the largest retailers are planning to go on strike to protest inadequate work place protection the companies have failed them during these unprecedented times. The number of coronavirus cases more than doubled in a few days at a colorado meat packing plant a week after opening its doors after two weeks of closures the number of new cases spiked to 225 on wednesday from 120 on sunday the u. S. Air force band led a collaboration with a military band from several locations to perform the historic song ill be seeing you. Marking the celebration of International Jazz day military bands, blue angel fly overs. It feels like 40 years ago we all kind of need it. We need anything. We need anything with he can get. Take care. Still ahead, new numbers out tallying up some of the Public Health costs we are seeing right now. The numbers are nothing short of staggering who knows more about companies than their own insiders. An exclusive list of what c suito suiters are buying their own stock. All as texas begins reopening starting today we are back on Worldwide Exchange after this its a challenging market. Edward jones is well aware of that. Which is why were ready to listen. And ready to help you find opportunity. So. Lets talk. Edward jones. Its time for investing to feel individual. Across america, Business Owners are figuring things out. Finding new ways to serve customers. Connect employees. And work with partners. Comcast business is right there with you. With a network that helps give you speed, reliability and security. And enough bandwidth to handle all your connected devices. Voice Solutions Like remote Call Forwarding and readable voicemail. And safe, convenient installation. When every connection counts, you can count on us. Get the connectivity your business needs. Call today. Comcast business. Stocks are set to sink at the open as big tech takes a sink dow numbers are down nearly 500 points amazon warning Share Holders that they should take a seat as they say what they plan to do with their cash. And is anybody buying cars right now . One sector hit especially hard it is friday, may 1. You are watching Worldwide Exchange on cnbc. Good friday morning. Welcome back it is 5 26 dow numbers down 460 points as we are about half way through the 5 00 hour. The president threatening new tariffs on china for punishment or retaliation on what he views is their role in the pandemic. He believes part of this may have come from a lab in wuhan. Stock futures are down 466 after the major averages coming off their best month in 33 years the nasdaq with its best month coming off their biggest month since 2000 seeing weak i foerch sales globally ceo tim cook pulling in with other Companies Pulling in guidance saying he has great confidence in the long continue term confidence of apples business in the short term, its hard to see out the win shield to see what the next 60 days looks like amazon seeing a surge in sales the outlook of their money hitting stocks this morning. If you are, quote, a share holder in amazon, you may want to take a seat the Company Plans to spend all the Second Quarter profit estimated at around 4 billion on its response to the pandemic. Beefing up tests for workers and boosting wages, more investment in Health Safety gear. Good for the company but they dont like it. Stock is down. It is may 1. A muchneeded holiday around most of the world, except us of course socgen shares yesterday taking a hit but the uk markets are open and lower to start their month as well. Well get the Key Headlines with Julianna Tatelbaum in london thank you, brian. We are working alongside you here in the uk most european markets are closed today. We are seeing some red on the board this morning the ftse 100 trading lower adding to the losses the benchmark broader dropping about 3. 5 the majority of stocks are trading lower. Rbs is a key outperformer. Shares are higher today. Weve heard results better than expected they put aside about 800 Million Pounds as loss against the pandemic these shares down about 7. 9 after shell historically cut its dividend for the First Time Since the 1940s. No doubt, the prospect of tension between beijing and the u. S. Weighing here we had a chance to ask the european commissioner about whether she would support an investigation into the origin of the coronavirus. We know we need a more robust data system for such situations as we see right now with the coronavirus and for building up a system that is that you can count on we need transparency we will have to work on that after the crisis interestingly, adding that she thinks china should participate and get involved in this participation all hands on deck. Brian, back to you that investigation ramping up day by day, Julianna Tatelbaum, thank you. Every friday, well bring you a list of which Company Insiders are getting the most bullish on their own stocks. It comes from insider scorer. Com and looking at how bullish every insider is at darden restaurants. 12 insiders bought 12. 5 million worth of stock that is the most ever. Halliburton making the biggest buy in 17 years. At t are third they had 1. 2 million worth of corporate insiders Delta Airlines amid all of the trouble there. And one director seeing value in buying up to 600,000 worth of shares and holdings there those are the Top Companies seeing the most insider buying this week insiders have been pretty spot on of the 15 stocks we have tracked in the last three weeks, they have the median gain of 15 . That is 3 more than the s p 500 which had a 12 gain in april, the best month since 1987. Back to washington and the developing story we are monitoring over the governments Small Business relief program. There are new reports this morning that the Justice Department is starting to see early starts of possible fraud has found issues with both approved and rejected applications the doj has reached out to Small Business association and the 15 to 20 business processors on the program with the focus on banks. They declined to comment and the doj did not return a request for comments as a new survey sheds light on the cost of opening compared to the True Health Care costs. We have more on that side of the story. Good morning good morning. Officials are facing really tough math how many jobs can they save by reopening the economy versus how many lives could they be putting at risk. A new model tries to quantify that tradeoff. The numbers are staggering in both d