comes with some of these medical breakthroughs that could yield perhaps advances that lead to people moving around, feeling more comfortable, boosting a little bit those stocks that have been most beaten down, morgan >> absolutely. when you're talking about reopening, you have names like disney that are moving forward with plans or some plans in florida, you have names like apple beginning to open more retail stores in the u.s. as well also crude is one to watch and carl just mentioned it, the fact that we're seeing a bid for crude. wti the june contract expires tomorrow and what a difference a month has made as you have seen production numbers start to come in and started to see some of the driving demand return as well gas prices at the pump up by a couple cents in the last couple weeks as more and more people are starting to come out as we start to see more of these reopenings, but, of course, longer term, as we continue to talk about over and over again, it's going to be what does the treatment picture look like, what does the vaccine picture look like. you have over 100 vaccines in development. jon? >> looking decent in tech as facebook, it is up about a percent this morning, back about $210 a share on that note let's kick things off this hour with elevation partners' co-founder robert mcnamee, an early google and facebook investor. you look like you're joining us from a very classy diner booth love that. >> that's my goal. i want to just be part of this very positive attitude we have going on here, john. >> all right well, i think it's fair to say, you're facebook's most vocal kri critic in the tech ecosystem i want to get your take on the acquisition facebook is of giphy, of reported $400 million. i think it's for data and gives them quite a bit of insight into consumer behavior on other apps and just kind of a real-time pulse on people's emotions if you're happy and posting funny stuff, cynical, gifs specifically that go with that and facebook will know in real time how that's changing >> jon, 100% correct we need to get you into a diner and then we can let you do the whole talk i was involved with a company in the same category that was acquired by google and the thing to understand is exactly the point you just made, gifs are about emotional state of mind. that is something that is wildly more valuable to facebook than it is to google because facebook is all about emotional signals the notion that they're going to be able to integrate this with instagram and use it very intensely at whatsapp is going to give them more insight into what the users are feeling it's going to show who their closest connections are, because you share gifs with people that you share the emotions with. the price tag isn't the issue. the question that regulators are going to face is, you know, at what point do you simply say, i'm sorry these guys have come to monopolize categories we really can't let them extend their reach further. we obviously have not hit that point. there's into indication yet that there's going to be any pushback from the feds on this. there should be. >> can you get a monopoly on digital empathy. i'm trying to imagine what argument will be like. they know too muchabout how people are feeling and can't allow this acquisition how do you rec glats that? >> that's not the right way to look the at problem. facebook has roughly 8 or 9 major competitive advantages that are based on the data that they have and their -- these essentially the scale of their advertising effort, so in companies like snap come along ta have one great data set and up against nine or ten at facebook, that kind of barrier to entry is prohibitive. what's going on now is when new companies get going, they can get choked off and these companies can prevent investors from putting more money in and then set them up to get acquired i assume that's what happened with giphy giphy must have been pressed in one way or another and was put in an awkward position because they had to sell the company at significant discount to the last financier. >> interesting, roger. on a broader level, we've been talking the last couple weeks about how the pandemic has lessened the intensity of the tech lash and then the "journal" on friday examines out wicomes d state ags getting ready to sue google for antitrust how much is boiling there? >> i don't know how much is boiling at the doj for the state ags this has been percolating along and obviously the pandemic has slowed everything down. my impression is that the company with the greatest risk because of the pandemic is actually amazon because if bezos uses the $4 billion he's investing, you know, in pandemic-related things this quarter to somehow improve the working conditions for the employees or pay them better, that will solve his regulatory problem for a while. but in the absence of that, i think facebook has -- sorry, amazon hasreally stood out for its very anti-employee behavior. we've seen a similar thing at google where they've rolled back a bunch of diversity programs and clearly tried very hard to prevent any employee labor actions. i think those two companies are going to be in the sights of regulators at present, the u.s. anti-trust infrastructure is so weak it's not clear what they can do, which is to the to say they -- we shouldn't strengthen it and do something, but rather i think that risk has been mitigated by the pandemic and when the pandemic is over, we're going to have really huge fish to fry in terms of rebuilding the economy. think about health care. i mean, the issues of employer-based health care are being exposed in a way that i suspect will cause people to want to try a different model of health care financing going forward and the same thing is true in transportation and manufacturing. we can't make a cotton swab. that's something that i suspect from an economic policy point of view is going to percolate to the top of the heap. >> it's going to accelerate some of those trends towards more digitalization of other industries, and i also thing it's interesting you mentioned amazon given the fact that company signaled they were not necessarily willing to put jeff bezos in front of congress to testify as well. >> that's such a bad pr move again, i think our regulatory infrastructure is so under utilized and so weak at present that he probably doesn't have that much to fear in the short run, but right now facebook is the poster child for bad behaving technology companies. the last thing bezos should want to do is give zuckerberg an opportunity to get out of the limelight. at the moment because of the political things that facebook is doing, allowing falsehoods in advertising, because of what facebook has been doing to essentially promote disinformation about covid, you know, by allowing amplification of things that are factually incorrect -- >> really? >> oh, definitely. no question. >> i've seen them take things down faster in the covid-19 era than i saw them do in political cycles so i think they deserve some credit. i mean i can't remember what all the various controversial hoax-like misinformation, video pieces are, but facebook within hours has taken a lot of those down and put tags on them. >> jon, they're doing this, the same way they took alex jones down they're trying to preserve the basic business model which is algorithmic amplification of content that inflames emotions they take alex jones down but leave hundreds of thousands of other people who are would-be alex joneses they leave up the ability for many things to happen. importantly with plandemic a piece of disinformation, harmful, spread widely, they did not prevent people from advertising to promote it or facebook groups from sharing it. i think that their behavior on this, it recognizes that the pandemic requires a more rapid individual response. the underlying problem is structural. >> i want to get your take on the facebook board which is changing over. i was impressed, interested when ken shenaults signed on to be a part of the facebook board, my impression is he's no pushover even though mark zuckerberg has all of the voting power on the board, he's not going to roll over if he has a difference of opinion. there's some reporting that he's had some differences of opinion and he hasn't lasted long on that board. >> yeah. and, you know, the facebook board of directors is in a really awful position, right, because they don't have any real power. you saw this last year when there were a set of shareholder amendments put forward and they got a majority of the non-insider vote but still nothing happened i mean mark has complete power and i think that, you know, as long as you do things mark's way, everything is going to be fine at this point there's really no power anywhere either on the board of directors, inside the company, in government, that can influence mark's behavior and, you know, he's been very successful as you can see. the stocks price reflects that, right. the numbers are very, very good. the question is, should companies be able to profit from a spread of hate speech and diggs information and conspiracy theories i would like to believe that that conversation is one the country would have out in the open and wall street has benefitted enormously because we can't seem to muster the resources to have the conversation yes, you and i talk about it, but it's not like there's a serious conversation in congress about we should not allow algorithmic amplication because at youtube, instagram and facebook leads to things that are harmful to society that conversation hasn't happened yet as long as it doesn't happen mark gets to do whatever he wants. >> yeah. i wonder, though, roger who you think is doing it right? i say that thinking of snap, which had, you know, very strong earnings report that surprised to the upside a couple weeks ago. this is a company with the way their platforms and services are structured, it doesn't seem like there is the same sort of rampant misinformation they do factchecking to a certain extent as well is that a model that you would expect or you would hope that some of these other platforms would adopt? >> you know, snap is -- i think snap really is trying to be different. i think pinterest is different apple's clearly different. i think the apple/google effort relative to the pandemic response and contact tracing is indicative of apple's orientation to private data, right, that they are really bending over backwards on that issue to balance privacy with, you know, what the technology can do, recognizing that there are limits in what smartphones can do today that basically makes the risk to privacy really high relative to the potential benefit. so i think apple's really taken a constructive approach there. i can't wait to see what zoom does, you know, having now been called out for all of the very severe privacy issues there, do they tighten it up quite clearly in their model, that company could be enormously successful without invading privacy and, you know, the pandemic has been a hugely positive thing for them. in my view, the issue with all these privacy issues is that the economic benefits of invading privacy have been gigantic however, it's binary. if you make the decision you do not want that, the model that comes after it looks different and there are going to be people massively successful in the new model but as long as you can invade privacy at will, it just -- the monopolies have such a great advantage by the time things sneak up to a certain scale what happens to giphy happens to them, they wind up selling out on terms they may not be happy about >> roger, while we have you here a couple headlines out of dow jones. uber is going to cut about 3,000 more jobs, according to dara khosrowshahi shuttering 45 offices. this would bring the total reduction to the work force to 25 what is this thinking about how much more retrenchment some of the big cap tech companies have to do? >> carl, your guess is as good as mine. what really, you know, when i look at the market today what i see is a market that's basically saying, hey, there's a real chance this is as bad as it gets if that turns out to be correct, then we know what the answer is, right. the real question is, is that a realistic assumption when you listen to medical people they don't think so what do they know about the market and the economy i don't know we'll find out but it seems to me that there are business models out there and almost all of the ones that are based on, you know, either the gig economy or on some very clever repositioning of the old economy the way wework was set up, those are going to be deeply stressed and you may not be anywhere near the bottom if there is a second wave and if we don't have a vaccine. >> yeah. >> early next year but that's anybody's guess we don't know. i don't know how you make a bet right here i think everybody has to look at their portfolio and say, how much risk am i willing to take right now stock prices reflect a pretty optimistic outlook. >> yeah. but also there's that question of, where the heck else are you going to put your money. >> that's right. >> the fed has made that risk calculation different than it has been historically than i can recall >> great to see you guys >> let's get to deirdre bosa for more on what we were talking about. uber >> hey, jon, that's right. this comes from a companywide e-mail from dara khosrowshahi to employees and in it he says that uber is cutting about 3,000 additional jobs. this comes after further job cuts just about a week ago and it brings the latest layoffs to about 25% of the company it is also exploring selling non-core businesses including uber works, dara khosrowshahi says that uber will be shutting 45 offices and it's reevaluating bets in freight and self-driving technology guys, that is a surprise to me because self-driving technology has been seen critical to the ride sharing companies, how they eventually become profitable when that bet -- when that bet actually comes through and they have put billions and billions of dollars into it guys, more cuts from uber and the stock is up nicely on that -- on those further job cuts back to you. >> deirdre bosa, thank you for bringing us the latest. when we return we talk to the owner of a water park in arizona that just reopened don't gonyermaetray. awhe rks ll this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. 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. ♪ welcome back arizona stay-at-home orders lifted saturday from restaurants to gyms and water parks reopening for customers across the state. one such business is the arizona grand resort and spa, whose seven acre oasis water park opened over the weekend. paul gray joins us now thanks for being with us >> of course, thank you. >> all right so you have an athletic club, six swimming pools, this water park, golf course, dining operation, conference center, i could go down the list here but in terms of what has now reopened, the focus over the weekend was the water park what measures have you put in place to reopen? >> the first thing we did was reduce our seating occupancy the water park can handle thousands of people and we reduced it down to about 550 seats and we were able to spread out in groups of four so your family could stay together we opened on saturday and it went i would say perfect >> and so what does that mean in terms of people returning and using the facilities did you see as many people as you anticipated or even more come this weekend? >> it was better than we hoped, so the second the governor lifted the order our phones lit up and we're getting a lot of same day books, people extending their stay everyone, this weekend i talked to, people were stopping me saying the place looks great, thanks for being here and we're taking all the extra precautions. we screen our employees. if you don't feel good don't examine to play or work. we power wash the entire park every morning with soap and water. we have lifeguards, certified lifeguards, that are watching every inch of active water we have emts on staff. we have security officers walking around encouraging people to be careful and safe. >> good morning, it's jon fortt. i'm wondering are you screening guests if a guest shows some sign of sickness, what's your policy are you informing them of that on the way in and how will you know if it's working >> well, we're hoping the guests are educated enough by now to know to stay home if they don't feel well. if we see someone showing any symptoms we'll have a security officer have a conversation with them and we'll go from there >> what do the lawyers say if someone does get sick and tries to blame it on a visit to your facility where do we stand right now in the ongoing conversation about liability for companies regarding guests and employees >> well, i think every state government is having those conversations and legislation about those lawsuits and how do you prove it and know, so i know those conversations are being held i'm not sure where we are right now. >> yeah. as i mentioned you have a conference center and do a lot of group business as well. you're also on the board of directors for the arizona lodging and hotel association. what is the expectation, i guess longer term in terms of what that part of business, the business travel part of the business is going to look like do you expect that it's eventually going to recover or do you think that with so many people working from home, that part of the business has changed fundamentally? >> i go back to 9/11 and we were all thinking it was going to be, you know, years and years and years, and it was a slow recovery but i go back to last fall, even the beginning of this year and we were full with groups i think you eventually get back to normal. who knows how long that's going to be. the industry is going to figure out how groups are going to travel and meet again and that's a hard conversation. the entire industry is trying to figure out what that looks like. >> paul, how are you going to know if your safety protocols are working? what measures are you using either on staff or on guests to see if anything needs to be adjusted >> well, we haven't gotten to a point where we're over crowded that's my concern. i just want everyone to play by the rules. as a water park that's been in operation for 18 years we've hauls had rules. can't go down the slide if you're under 48 inches careful on beverage service, careful with food handling our life gaurds watch for safety in the with water. we're good at enforcing rules. we've been doing it for a long time we just have a new set of rules. they're pretty simple. stay six feet apart unless you're with somebody wash your hands. don't touch your face. stay home if you don't feel well we're hoping the public is educated but we're ready to step in and control thesituation if needed >> as the general manager of a major business in arizona right now, as the state continues to move forward with these reopenings phases, how closely are you watching testing, the development of vaccines, how critical do you think it is to this particular industry >> i think it's important for everybody, and i think everybody is watching it very closely. it's become something you just do out of habit every morning, arizona reports at 9:00 a.m. and i'm always watching what's going on with that it's vital and i think everyone wants -- is hoping for the best very soon. >> all right paul gray, thank you for joining us >> my pleasure. >> all right so just getting a check on the markets, which are rallying today and which have taken back the losses we had been seeing up through friday for the month of may. the dow is up 857 points looks like it's a fresh high 3.6% the s&p, 2956, also up more than 3% the nasdaq is actually the laggard today. it's up only 2.6%. jon? >> yeah. and as i was mentioning earlier, morgan, some of the names that are most likely to be positively affected by people getting out and about are the names that are up most. i'm looking at uber which we were just talking about announcing more layoffs, but it's up nearly 9% so far this morning. disney with the travel theme, we were talking about out in arizona is up shy of 8%. and our own parent comcast which owns universal theme parks, up better than 5% as well so while on the one hand you can look at a company like comcast as being affected by broadband and people at home, there's a part of the business that is parks as well. that's part of my read on this of course, at the same time you have other stocks that are up strongly as well like roku, a stay-at-home stock, up just under 5% lots overall affected. some of the ones up the most are travel and tourism related >> yeah. jon, but i think you really got to step back and look at the s&p this morning i mean 2956, takes us all the way back to march 6th. we've not been able to get quite to that level since early march. we've tested and tried a couple times. april 29th we got to 2955, may 12th we got to 2945. this is our third attempt at busting through that level and we started the hour talking about the many different parties that are sort of joining in to make this happen today and cash hand great point this morning, expect resistance at 2950 and dow 24,600 we're at dow 24540 we're getting into interesting areas here. >> toput that in perspective i would note the small caps and the russell 2,000 up 5.7%. the transports is up 6.2% as well these are two indexes that have been pretty hard hit and have been getting closely watched given their link to not only in the case of transports the global economy and trade flows and both of people and freight but with the small caps, u.s. economy, sort of seen as a proxy are -- for the reopening and the economic recovery over the coming months or years, depending on which camp you speak to could potentially look like we did get better than expected news out of nahb housing market index as well and then, of course, the vaccine data and the comments from the fed chairman powell who will be watching on the hill tomorrow with treasury secretary steven mnuchin carl >> yeah. interesting. as we're talking, guys, germany and france proposing to jointly raise 500 million euros in a recovery fund in a european economy, a new wrinkle in europe's ability to circlecle the wagons and raise money for stimulus and rescue. all happening in the last couple minutes or so. almost 11:30 back to headquarters and get a news update with sue >> good morning again, carl. good morning, everyone here's what we know at this hour u.s. secretary of health and human services alex azar is telling an assembly of the world health organization that its failure to get information it needed early in the outbreak, quote, cost many lives and can never happen again he did not specifically refer to china but said a member state had tried to hide the outbreak there are calls for an independent review of the organization's actions delta will resume flying several major routes in june that were suspended due to the coronavirus pandemic those routes include detroit to toronto, salt lake city to mexico city and seattle to shanghai japan's land mark park, famous for its cherry blossoms reopened after being closed for 38 days in an effort to prevent the spread of the coronavirus. as always, you can get more on our coverage going to cnbc.com "squawk alley" is back in just a couple minutes but i will send it back to carl. >> all right thank you very much. we do want to continue our discussion of what the markets are trying to tell us mike santoli. mike, a lot of things came together this morning, whether it was moderna or energy or some discussion about powell's upbeat performance last night what do you think it all means >> obviously, carl, one thing it means is that you did have a little too many people crouching in the direction of this is going to be a long haul, reopening is highly risky, maybe it's not as strong a wide range of probabilities the market implicitly is moving to a point on the spectrum where it looks like people's plan is we're going to see if we can get lucky and getting lucky with trying to reopen and having business improve from not very low levels is i think where things stand >> mike, what do you make of the fact that as i'm looking at the movers on the s&p, united airlines is up some 18.5% right behind that royal caribbean is up nearly 18, live nation up 17%. it seems to me, as we have been talking about like there's a big hope for these particular stocks that are reliant on people feeling confident getting out and moving about again, but that a dramatic move. is that sustainable? >> super cheap beaten down call options on a return to normalcy. all those things you mentioned right there. it's not so much that we're going back to normal but we're not going to be in freefall in travel it's not going to be this, you know, completely dormant area of the economy for a long period of time it's the way it's going to happen i think the real story here and, carl, you mentioned the s&p 500, absolutely at interesting levels testing that -- what has been a ceiling for about a month on wall street, there aren't any triple tops and you don't get that many chances to sell the high, that's the way the rules used to run, so maybe that's a good thing we're back there, but within the market is the story and that is, the kind of shelter in place, in the egg ga cap stocks able to withstand the economy are giving ground to stuff that did look cheap. this is the answer to what people have been saying for weeks when they say why is the market upbeat on the economy it wasn't. if it was then all the retailers and travel stocks that are now rallying and the banks today would have been leading the market up to this point and they've actually got a lot of ground to make up if this is going to continue. >> such a key point, mike. i wonder, earnings season is largely over now, however we get a number of retailers reporting this week, whether it's walmart or target or home depo, it does seem like i can say from westchester county in the new york metro area, many more cars on the road and from some of my family members hearing there were long lines in the big box retailers over the weekend, how crucial are the numbers that we get and the read through to the consumer and thus the economy in this idea of whether they have potentially bottomed or not? >> i think, first of all, it's going to be a tremendous amount of focus on here's what we're seeing in may as opposed to what happened last quarter. the question to me is going to be, how steep a curve are we grading on right now how cheap did the stocks get relative to what a -- anything like a normal response might be in terms of the consumer i think there's going to be a lot of that type of discussion, yes. things are improving off a low base what does that mean, though, for how quickly it begins to approximate something that looks like normal and then, of course, is it goings to just be kind of a reallocation of enthusiasm from walmart and amazon toward, you know, the mall-based stores or departments as physical retailers. that could be part of the dynamic as well. >> powell last night said that you're really not going to get full confidence back until there is a vaccine gottlieb writes there's now accumulating evidence across multiple products that we should get a vaccine, which i think is one of the most robust endorsements from gottlieb now on the progress, but does that mean the 10-year gets back to 75 basis points >> well, i mean you would think that would be just an initial stop, right, 75 basis points if really people genuinely are thinking it's going to be some version of a return to normal that would be one of the moves you would want to see as a confirmation of what the stock market is trying to tell us. i think it's pretty much a given that for people in their every day lives to feel comfortable we reopen and we don't see much of an impact on incidents of this disease or we do have a path to a vaccine and that all of a sudden builds confidence the market isn't going to wait for that the market will try a few times and maybe overshoot along the way. remember, the first time we got up to 2950 in the s&p was the remdesivir day when we had the trial results. you're going to have spurts of unthu unthuse yac-- enthusiasm. right now it's been, you know, firming up hanging around the upper end of this range while we wait to see if medical technology can follow through. >> mike, i want your latest take on something, i know you've talked about and touched on a few times and that is, microsoft and apple and their role in this market, both of them i think are within 5% of all-time highs and i can't help but wonder are they like the new replacement for bonds, for safety? because they pay dividends nobody thinks they're going away and people just don't have anywhere else to put their money where it's going to make money >> yeah, absolutely. especially microsoft what's a bond? it's a promise of very long-term stated cash flows that will be coming to you in a reliable way with that's what microsoft and apple are viewed as. the question you're getting at is, to what degree is it really people overpaying for that security potentially in the short term and not necessarily really paying up for the business that's what we don't know right now. the days when the big nasdaq stocks under performed, they're not really going down much, if at all, it's the other stuff is catching up. maybe that will change and maybe the overall index can remain stuck while some of the big cap tech corrects and other growth stocks come back while the smaller stuff rallies, but right now, there hasn't been anything chasing you out of those stocks except just the ebb and flow of where people want to be overweighted i think it's a fair point to say people have been crowded and hiding in those types of names that you don't get fired for owning in bad times. we have to see if they overplayed that hand or not. it's not as if you go to microsoft and say there's a fundamental reason to sell it right now. maybe you have people owning it for reasons besides the business >> yeah. speaking of catch up, mike, and i know you know how much i love to talk about both of these topics, but the russell 2,000 and transports today both up something like 6%. how bullish is it to see them, i guess, reigniting and playing catch-up here? >> yeah. it's bullish if it continues is the answer, morgan. >> yeah. >> and there's been many, many false starts in this area, but on the other hand, especially if you look at russell and small cap value even more so, versus everything else in the market, it hasn't been as cheap on a relative basis since 20 years ago. has that mattered? not much lately. it does seem as if there's dry powder for a bigger move like that and what has to happen for that to be the case? the credit markets still have to remain in very good shape. you have to see nominal -- a path toward nominal gdp growth recovering these companies don't have a lot of answers if the overall economy isn't doing well along the way, health care has become the biggest sector of the russell 2,000 eclipsing financials at least neck and neck right now the character of the index is changing and will again as that gets rebalanced around the year. if you're bullish on the market, you probably want to see cyclical areas doing better, as opposed to it being the same dozen stocks in the growth area that keep working. >> mike, stick around. i want to offer a quick check on the markets. the dow continues to be up more than 800 points. that's almost 3.5% s&p 3% higher. nasdaq lagging those two but still up quite a bit, nearly 2.5% let's get to rick santelli in chicago. rick >> thanks, jon. i would like to welcome my guest, johnny fine from goldman. he's my corporate high yield guy. johnny, welcome to the show and let's get right in to it you know, before the fed decided they were going to backstop corporates, high yields, especially under the microscope, though they haven't done much yet, would you have predicted the inshoo wans bonanza and investor confidence to share in that supply? >> of course not it's clear it ignited a desire really to first of all stockpile liquidity. that was companies really repairing their balance sheets it's now created a financing opportunity that is attractive when you think about the context of history we're at the best in a decade for single a and double a rated corporate credit in 10 and 30 years and the second best in triple b credit. we're now shifting the corporate mentality from repairing the balance sheet to preparing the balance sheet for the remainder of 2020 and beyond >> okay. when you say preparing the balance sheet, let's dig a little deeper into that. these companies, many of them never suspected they would be able to move some of their paper and bring in funds at such reasonable rates how will this extra debt in the future cause potentially different behavior >>well, firstly, a lot of preparing the balance sheet segment of what we're seeing in the phase of the covid era financing, companies terming out their existing debt complexes. that means, for example, turning out commercial paper that means repaying what they drew down on in the early part of march it also entails taking any debt financing that might be due in the next 12, 24, 36 months and turning that out as well a lot of the financing that we've seen more recently has actually been leverage neutral >> now, johnny, this is going to get off the track just a little bit, but i still think it's worth digging into and that is the notion that everybody, including jay powell is very nervous about how demand will turn out in other words, we could open up cities and towns, but ultimately who is going to go out and who is going to interact with the economy from the demand side if our topic here is any gauge, it's super hard to predict and it could definitely be much better than some of the naysayers or less optimistic think, would you not agree with that >> absolutely. and the worse case scenario there is that all of these companies that have spent this time fortifying their balance sheets and preparing themselves, you have to remember corporate america in general behaves very conservatively with all the preparation that they've made for the incremental liquidity they have, if they don't need it it's essentially an insurance policy that expires worthless and they will be very quiet when it comes to debt refinancing in the coming years and that will naturally allow our market to delever as we see more robust earnings coming on tap in 2021. >> now, johnny, the big story is, and we talk about this a lot, i've heard david faber and cramer discussing, they haven't done a lot but they've had outsized effects in changing the market things are happening new credit is forming. these are really positive things is there any way that the fed can hold off or do they actually need to show a presence to keep this dynamic going in other words, is there half life to that goodwill? >> so firstly, i agree with all of your commentators have been saying regarding the efficacy of the corporate credit the fed announced. steve liesman on cnbc talk about it as one of the most fabulous central bank policies he's seen unveiled in the united states. you're right, they barely spent anything, i think last week we saw the data over the first two days of these secondary market corporate credit facility being in place the fed bought a few hundred million of outstanding etfs. i think they will continue to do so, so i think, and jay powell referenced this in his last press conference, while the signaling effect changed a lot in credit market, followin through and executing is important. they're starting to do that. i suspect they aren't going to need to do too much in terms of actual credit buying to maintain the high quality credit financing conditions we see today. >> i guess in our final minute, the big question everybody wants to ask and that is, at current levels, whether you look at the jnk or the hyg etf, it seems as though weekend see even more tightening in some of these spreads. your final thoughts on the valuations as they sit today on high yield and investment grade compared to treasuries >> so, i think what we're seeing play through right now is a significant uptick in the quality of the technicals of our market and that is, we've broken the back of supply supply right now in investment grade is close to a trillion dollars and it will be over a trillion dollars by the end of the day year to date it's all been driven by corporate america. by the end of the day today, corporate america will have financed as much in 2020 as it did for the entirety of 2019 and we're getting to the end of the supply chain at the same time, on the demand side, the flow dynamic is turning very positive and so i think we're actually a going to move into an era shortly where questions are going to be asked about where is the margin of dollar of supply coming from, while demand dynamics will be exceptionally good in the coming months >> excellent thank you, johnny fine i can't wait to talk to you again as we continue to reevaluate and, of course, mold a new type of security industry post-coronavirus thank you for your time today. morgan, back to you. >> thanks for having me. >> rick santelli, thank you. just want to flag some headlines we're getting. new york city could begin to reopen in the first half of june, according to mayor bill de blasio outlining details of what that could look like in the coming weeks find more details on cnbc.com. the s&p trading above 2950 right now. best gains of the month on a daily basis for all of the major averages travel stocks also seeing some big moves today and our seema moody has the latest on that >> morgan, some big moves here the prospect of a vaccine hitting the market earlier than expected is lifting travel stocks the general consensus from analysts is that a vaccine will lift confidence in travelers, those in the baby boomer generation who may have preexisting conditions and don't feel comfortable challenging with just social distancing measures in place. they will want a vaccine before getting on say a cruise or staying at a hotel but it's important to note that the state of the economy will also have an impact on the travel industry according to experts i've spoken to royal caribbean, looking at that stock currently the best performing name on the s&p 500 up about 17% the online travel names booking holdings on pace for its largest percentage increase since august of 2010 and expedia is set to report results on wednesday. commentary from their new ceo peter kern will be in high interest given the news from moderna among others carl, for now, sending it back to you >> all right seema, thank you very much travel names have been in focus all morning long including some new guidance on delta airlines q2 flying schedule stocks up 11%. let's get more from phil lebeau this morning hey, phil. >> carl, delta is going to be flying a few more routes that in the past they may have trimmed down or dropped but let's be clear here, they're still going to have 85% fewer flights than they did last year this is not like a huge addition of flights but it is an indication that della, like other airlines, are judicially adding back capacity we talked with oag, they're noticing it was up 6% last week. so you're starting to see a few more aircraft return again, still way down compared to last year by the way, look at this delta, you know, it's up 11% look at united up almost 18% guys, this speaks to the optimism that people have that if potentially we could see a vaccine maybe later this year, early next year, who knows when, that really is what the airlines need in order to say to people okay it's time to start flying again, it's time to get back out there again. that's part of the optimism behind the airline stocks moving higher >> thank you i want to bring back in mike santoli. all leads me to wonder what scenarios are the market pricing in at this point i mean, people are worried about a second wave, but people are excited about possible vaccines early. if the numbers in states that are opening up of hospitalizations or god forbid deaths start to rise is that a risk for the market? >> i think it's a headline risk. i think the market is getting itself positioned to where it thinks that maybe the summer is a window where it's unlikely you're going to see an exacerbation of the infection situation and all the bad indicators that we've been consumed with. there's this period of time where the bull case is kind of hard to disprove because of the likely timing of any second wave beyond local areas i think the market is trying to get comfortable with the idea that april was the low in economic activity by a long shot you incrementally get better from there maybe corporate earnings, by the way, for this year don't matter at all, maybe for the fourth quarter they matter a little bit, is next year something close to 2019 levels of earnings that's i think the question we're going to be arguing about. we're right around the time of the year when attention turns toward the subsequent earnings anyway. i still think the market is not pricing in a very happy, calm scenario that is all about optimism, but it is incrementally less negative and probably looking for the opportunity for activity to improve over the next several weeks and into the summer. >> well, it is convenient, then, mike, we're going to get home depot and walmart tomorrow and then a bunch of specialty retail through the course of the week, which will be able to give us the closest thing we can get to of real time color, right, of the consumers appetite to go back to a store, the consumer's ability to spend on whatever ticket they put down, so the next, i don't know, 48, 72 hours will be key. >> right they're going to have a lot of characterizations of that type of activity and i do think that's going to be crucial and also, you know, one thing we were bracing for was this chain of default and business failures and some of that will come, but if this is a shorter period of a stoppage of the economy than we thought before, you have less of that wear and tear on the collective balance sheet of the country. i think that's the other thing that has to maybe be adjusted in terms of expectations. >> yeah. and then, of course, mike, can't talk about the rally today and not talk about what we're seeing in crude as well my goodness, what a difference a month has made when tomorrow you have expiration of the june contract for wti and i believe it is trading around $33 a barrel right now we saw that go historically negative a month ago the last contract, i mean, how -- how much is the market reacting still to what we're seeing within the energy complex? >> it is amazing i don't know reacting to it part of the bull case for stocks was that positioning just got cleaned out in march and that sure happened in crude a month ago. you basically just got all the speculators out of it in the very short-term, and right now you're back up to levels which used to be considered really low prices, but it seems like there has been a ton of progress >> the only other thing, mike, amex is out now saying that employees who are able to work from home should continue to do so for the rest of the year. so it is not going to be a clean black and white flip of the switch that we all suddenly start flying again and going back to -- go back to our offices. there is going to be resets within companies that will be hard to aggregate from an investor point of view. >> yeah, and it totally is unclear what equilibrium we find in all that. maybe there will be multiple of those equilibrium points we'll stop at for a while and maybe it will be in phases. i don't think anybody should be all that confident about how it plays from here, both in a positive or negative direction, but no doubt that companies, by the way, companies are also doing opportunistic cost cutting right now, and there is definitely a bigger reassessment of balance sheet aggressiveness and people are borrowing debt just to cover costs right now. all that has to play out but right now, it is much more about a little bit of relief on the near term. >> all right mike, thanks for that. helping us understand pretty important market day today as the dow is up 800 points back to march 6th level on the s&p. 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if you've bought gold in the past or would like to learn more about why physical gold should be an important part of your portfolio, pick up the phone. and call to receive the complete guide to buying gold, which will provide you important, never-seen-before facts and information you should know about making gold, silver and platinum purchases. pick up the phone and call america's gold authority, us money reserve. with nearly two decades in business, over a billion dollars in transactions, and more than a half a million clients worldwide, us money reserve is one of the most dependable gold distributors in america. welcome back microsoft and fedex announcing a multiyear partnership combining the digital logistics network of fedex with the ai and azure cloud of microsoft they didn't announce a dollar value on the deal. fedex cheap operating officer raj supamanian talked to me about the collaboration. you don't have to strain to think about why these two might buddy up amazon is microsoft's prime rival in the cloud, and amazon is building up its own logistics capability that competes with fedex. bigger picture, though, i asked what his existing business to business customers should expect from this partnership. >> well, high value where it is, you know, far more products or healthcare products, whether it is aerospace, whether it is technology products, fashion those kind of b 2 b shipments, inventory is so critical that we are able to then intervene this issue and now also launching sensor based logistics, not just tracking and tracing, being able to monitor temperature, monitor light, monitor certain packages if it is necessary and intervene if needed to make sure that the package arrives to the right place at the right time. so it is taking the tracking and tracing and everything we have to a whole other level with the latest in technology from microsoft. >> hopefully seeing some problems before they happen. i also asked how this partnership fits into mic microsoft's browader cloud strategy. >> this is about business resiliency if this global pandemic taught us anything, no business is 100% resilient. those that are fortified with digital capabilities are more resilient than others. and so previously companies would have had to cobble together their own data sources, mash it up with others to try to get the level of supply chain visibility and eefficiency we're bringing here. by microsoft partnering with fedex, you have the cloud and the logistics provider that provides transport for more than 99% of the world's gdp across 220 countries, mind you, coming together to provide capable and efficient supply chains for businesses of all sizes. >> finally we also talked about fedex systems and the time of covid-19 aside from the surge, the company has seen in shipping medical and healthcare products, what it means for the future of online shopping. >> we are seeing profound increase in the online e-commerce to put it in perspective, before the pandemic, roughly 15% of retail in the u.s. was e-commerce, and april forrester research said roughly 25%. we made investments on e-commerce what is going to happen in the next three years happened in a matter of three weeks. all the things that we were doing, as part of our strategy, positions us extremely well, including this effort with microsoft. we are reimagining our future at the intersection of the physical and the digital. >> morgan, fedex up almost 9% this morning amid the broader market rally. >> yeah. great report, john and really fascinating to see this is taking place between these two behemoths. i said it before, companies like fedex and u.p.s. are very much tech companies under the hood or would like to be in terms of what it means to monitor the supply chains and i'm curious what something like this partnership is going to look like versus the u.p.s. venture where to go. i would imagine all the die nync we have seen scabber baited this shift. >> small business, they report that a third of stopped operating entirely, a third moved all their sales online so to the degree they send fewer packages, we'll see what that means for operating margins at fedex and u.p.s. at large. so tomorrow, we have powell, walmart, home depot, a big day to the judge back at hq. >> carl, thanks very much. breaking news coverage of the markets continues right now. welcome to "the halftime report." the top story this hour, stocks surging on vaccine hopes and a fed chairman who says there is no limit to what the central bank can do to help the economy. we discuss that today. and what it means to your money with our investment committee with me as always, joe teranova, kevin o'leary is back. great to have everybody here on a big day. straight to the boards i want to show you where we stand.

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