About with joe, andrew and becky and the degree to which walmart can post a 74 increase in ecommerce it looks like the big guys won. You basically had them cordoned off as essential services. So many other companies, little companies, medium, small, just couldnt compete this is what happens when you have a survival of the fittest economy. This is darrwin playing out. These numbers are astounding if the stock had not run up every day, i wouldnt know what to do. Add back 60 cents for home depot and before you start selling it thats the costs they said home depot had to keep traffic back they had to hold back traffic because they were trying to do it safely. Walmart had these big stores, they were set, ready, and their dotcom, ever since they bought jet. Com has been amazing they also can do a lot of food these are Great American companies that are on fire the move in walmart is stunning ever since he decided doug mcmillan, who is on squawk tomorrow, decided to creator the earnings in order to build a big dotcom your point on traffic is good home depot traffic down 4, but ticket up 11 what was the difference in walmart and home depot to making up for those additional covid costs . I think thats a great question because i want to wait until the call to give that answer its a quandary i dont know why i know that when you do what costco did, i figure home depot are the same, you made a conscious decision to take care of the employees before you took care of the customers, maybe home depot did that. Well have to find out i do think that lowes is back we dont know what that means. I think Marvin Ellison is doing a remarkable job its no longer a onehorse race. Those stores are all different construction has shut down in a lot of places. I want to put a new roof on, as david would say, on one of my houses, and i cant. I cant get the work done. So there are places where home depot is not a factor. Right, david thats true, though where i am it was open the entire time through this period of time. Contractors may not have been able to work thats true you could go in, you could have things delivered but you werent going to be putting people to work do make that point on costco, its worth mentioning how well they treated their employees its interesting our conversation for many years now has been focused at walmart certainly as well on rising wages, on how they treat their employees, on the growing pressure on them to do better in that way costco has always done better. But to carls question in terms of what home depot was doing there, the added costs, it will be interesting to see where that came from and why that wasnt replicated at walmart or how exactly that comparison looks. One thing that jim sinegal taught us, the person who created costco as we know it, the biggest and worst thing we do is having to train people it adds about 30 to the sg a. They are dead weight and they hurt customers customers go to them, they dont know something, so they go to another store. He said the reason why he would always beat walmart is these people stay. Walmart people turn over mcmillan knew that and he changed it i remember going to a walmart in louisiana, it was the same manager i had seen a couple years before i said oh, my god, the same manager. He said no, the rages were raised its all good now. Walmart was known as a place where, yeah, really not a place to shop. Home depot and costco were always people who greeted you. You always knew the costco guy walmart joined that. Thats mcmillan. He changed the culture quickly david, you told us it could happen because the family was behind him you have the short upport of family, family around 50 or so of ownership at various points that allows management to feel as though they dont have to worry about activists or other shareholder bases getting upset when you have the support of your main shareholder and they control so much of the company the family was behind him. Longtime employees, i remember meeting mr. Mcmillan a couple of times when he ran international. They made a significant change there. One way in terms of employees, but perhaps more importantly for the business what theyve been able to do on the internet beginning with the jet. Com acquisition, which they now are going to get rid of that name, so to speak. And up 74 is a number i dont think they could have imagined having seen. I remember talking to doug, had lunch with him i pulled up his app. The top was kraft mac n cheese, potato chips, bad cereal i said what is this . What are you doing he said we have work to do holy cow, i met mark lurie later on, he said what is your problem . Let me show you what well do. One day well put food in peoples homes. I said are you kidding me . They succeeded they have done everything. By bringing in someone outside the culture who wanted to beat amazon when you met him, he had a beat amazon war room i love that. They were not going to let amazon wipe them out, they were going to beat them look what happened they are able to generate unbelievable numbers theres room for amazon, home depot, costco, theres room for target, room for lowes. Thats what we discovered this week without a doubt when it comes to price discovery, too, its worth doing. Dont just go amazon we found that in this household. You cannot assume it will be anywhere near the lowest price walmart and many others can often do that. I bought my power tower from walmart. Com. Needed to do my pullups couldnt find a place do it. Maybe you can have them come in and cut your hair nobodys cutting this hair. Are you sampson where is delilah nobody in this household is cutting the hair me and the dog are going full shag, man. You should see the dog, he looks worse than i do. Kick him. Kidding. I dont know, carl an exciting morning. Its true what stood out to me, when youre walmart and you hire a quarter of a Million People in the quarter, i did some math, thats 2,600 people a day new hires in a pandemic which works out to just shy of two hires per minute thats 24 hours a day. Thats remarkable execution. That is incredible. Its like a war. Its like a small scale draft. You put these people in, you have to get them to be walmart people immediately, they greet you, know what theyre doing thats extraordinary they made every store a wash house. They have all these stores, why not make them a Distribution Center i just sometimes americans are so smart jim, when you couple this early picture on retail this morning, you have the airlines higher this morning as well with southwest and some others talking about load factors looking to get hire in may, june reopenings in states like california does this price action that we saw yesterday seem valid a day later . I think it does it feels like a bear market spike when you see it that much up, but a lot of companies are just saying, look, march the third week of march was awful. Most of april was terrible we had a lot of Companies Report in april they didnt know things could get better now theres a new spirit, theres also moderna i think moderna dominated i had the ceo of dennys last night. You can comparable sales down 80 in a restaurant . Thats not sustainable thats what secretary mnuchin is worried about. But if you can get moderna and moderna turns out to be ahead of the game, theyve done it with Amazon Web Services, and they digitalized messenger, we can bridge it. Well have illness, but our hospitals are in better shape for the illness. Theyre ready. Well get through to when moderna will produce something that can work. The doctors who have been skeptical that i talk to about every single one of these things started by saying promising. Encouraging. You can craft a scenario that says trillions are coming into the market yes, well lose a lot of stores and restaurants, but maybe we can make a comeback. Its a little saccharin. I dont find that its done its nostalgic for the hold days comeback i see rigorous people saying it can be done. Im hearing those voices as well its being reflected in the price action were seeing. Jim, i dont know if you im sure given how rigorous you are, you read that letter from khosrowshahi yesterday to uber employees about the 3,000 additional job cuts. In my mind, thats an example of what were talking about the stock went up. Did you read that letter uber eats is great, but no wwhe near profitable. How about free . They love free this company is basically saying were were going to do everything we can to make ourselves insulated from having to raise new capital its not like these are good times, we dont expect good times any time soon, stock went up i think what were taking off is the not going under david, Royal Caribbean got the money. I told you about booking that Norwegian Cruise Line for your family giving it away come on. Alaska not doing that one. If it can be me, the crew, you want to come, carl, thats about it and 4,000 others . All right. Thats how you make friends. Its easy. We have a lot to get to in a short amount of time well preview powell and mnuchin on the hill in about 45 minutes. Some downgrades of disney and comcast. Kudlow is on the tape on a payroll tax cut. Faber on jeopardy last night all of that and more when ts see ctiestrtonnu onhituesday. A masters in Chemical Engineering and youre technically a genius. And it appears youre quite the investor. I like to trade. Well, Td Ameritrade has pros ready if you need help, say talking through a new strategy. Just in case things, you know, get a little rocky . Im sorry on the upside i think thats waterproof. Maybe not. Sawithout evenon yoleaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. Its the most reliable wireless network. And it could save you hundreds. Xfinity mobile. Got a fair amount of media news this morning. Netflix at an alltime high yesterday. Disney chief kevin mayer to tiktok, apple tv buying some back catalog a lot to watch this morning. Yeah. The apple tv, older shows. Thats something we pointed out about their offering, 4. 99, low price point but no library so they seem to be trying to make that a bit more robusrobus netflix is a key name in jims portfolio of covid stocks, 2 200 billion market cap, not as large as disney which had that huge day yesterday. There is a downgrade at disney and comcast today. Continued concerns overall for the old media stocks even including the likes of disney when it comes to advertising and production schedules, when it comes to what youll see in the movie theaters, theme parks, which disney relies on david, what happens if a big part of the country just said i know were supposed to be social distancing, to hell with it. There is a to hell with it component in the country yeah. They think its something that some new york governor created. I dont think its a what if. Doesnt it feel like its happening . People are ready in virtually every state . What is this mask stuff and the social distancing . Give me a break. The numbers still indicate people are getting covid, but theres a rebellion against the norms. The companies are horrified because they dont want the liability. They dont want the liability. Theres still going to it be a significant protocol regardless of what people may do and theyre willingness to congregate without masks the companies themselves will still take it upon themselves to put in place protocols, to try to maintain some level of safety, right . Yeah. That goes for disney at the theme parks and it goes for jpmorgan when they open up the Office Building in manhattan and have people arriving at 7 10, 7 15, 7 20 why . Because of elevator traffic. You have to do this when i was talking to the ceo of dennys, i said one of the gate things is you had guys they needed to corral, sop up, he said no, six per table really and you have to be distant from each other ill go somewhere else go somewhere where there are no restrictions i dont know its almost become voluntary there was some guy who opened a gym and was cited in south jersey i have a feeling theres not enough inspectors to keep these independent guys from not stopping the customers in the same way where its a difficult thing to enforce the mask law does it mean we get a second wave and that well have to respond again . Two weeks because we get a surge . Well know in two weeks we dont know. Two weeks. We bent the curve, people are not i talked to i talked to a guy who was the chairman of mass general, scott sperling, you know him, they have so much room in their icu. Theyre so ready of course that means all the elective surgery which, by the way, elective includes brain cancer theres so much room the hospitals can handle it. I dont know i feel like three weeks ago we were worried about dying from it now we have People Holding hands all over the place thats a good point massachusetts will start opening churches, hair salons, groomers. We forget, it was a month ago, but we were talking more about temporary cemeteries across the river from manhattan and central park it was apocalypse now yeah. You forget how much massive liquidity solvency crises that seemed to be at least a little bit more on the back burner, especially when you look at what the june expiration of oil is, how different that is from a month ago. No, they took the depression off the table. Thats what it feels like. Remarkable yeah. We will see what powell and mnuchin have to say about that progress and any additional need that may be needed for states and local. 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Dow futures down 27, were back in a minute [music] [music] especially in times like these, strong Public Schools make a better california for all of us. Thats why working together ist more important than ever. Nia at t is committed to keeping you connected. So you can keep your patients cared for. Your customers served. Your students inspired. And your employees closer than ever. Our network is resilient. Our people are strong. Our job is to keep your business connected. Its what weve always done. Its what well always do. Welcome back to squawk on the street. Yesterdays big market rally fueled in part by news of a potential vaccine or progress towards it by moderna, a company jim followed closely today they say, well, you know, maybe not a bad time to raise a little cash. I think that people who are new to the market, like 20 years, are not used to seeing the following. You have a red hot stock that needs capital in order to build what it wants to build, so sell 17. 6 million shares at this is going to be done at 76, which, by the way, is tight. Thats down 5 a lot of people are speculating saying if they didnt do this, it would have gone to 112. Why did they do this they hurt me no, this is capitalism it works this is great. Moderna could have sold a part of it to a major pharma or said we will stay independent, we like what we do, well raise money. Some say that the ceo was promotional yesterday. I know they are a bit of a promotional company. If they didnt release some of that stuff it might have leaked out, somebody would say hey. I dont begrudge these guys. Youre supposed to raise its called the Capital Markets you raise capital. Its not just in bonds they raise it in stock right right. But the optics of it, you could say are they being particularly promotional . It comes a day after they release an eightpatient study that was positive, dont get me wrong, but on the optics, it looks a little i told you yesterday when you said i said theyre a promotional company. I meant the guy i love the guy. He approached me saying what do you think about moderna . I said, its fabulous. I love the furniture he said its a biotech i said holy cow, you use Amazon Web Services to digitalize this . Youre a home run. Come on. I loved them since if youre one of the eight, maybe you buy stock, thats bad . Thats like Insider Information . I dont know i thought it was right i know the optics are not the people who bought the stock yesterday much higher would feel i say dont worry about it the offerings will be placed well it will go up. I think. Yeah. Carl, this has been a marketplace willing to accept shares this is 1. 25 billion that blackrock sale by pnc went well i will talk later about tmobile and softbanks plans to sell shares in that, but there seems to it be appetite. Novavox, another one people are skeptical about. Its interesting. The fact that companies have been able to raise so much money is almost a sub text of this loop capital downgrade at disney where they say you have 14 billion in cash but you suspended the dividend, you raised 17 billion in new great that looks great from a liquidity standpoint but it makes you raise your eyebrows in thinking what the pessimistic scenario might be. And the leverage ratios at disney are the likes of what i dont think many people anticipated that you would see its been necessary, you have to secure your future any way you can. That huge offering of debt, the did it reasonable if not cheap, with coupons im not sure we thought we would see disney approach these kinds of ratios. Theres questions as well about management you have iger as chairman. Chapek as ceo taking over the most biff cudifficult time thaty probably has seen. And now kevin mayer leaving to run tiktok my travel trust owned disney since the start of my travel trust. When it was at 80, it was painful. I dont blame the downgrade. Its like listen, remember, you need to have congregation. Theres no congregation in the theme park not allowed. Theres the opening bell. We will watch it closely powells remarks, his opening remarks to Senate Bankin