Power lunch starts right now thanks. The s p 500 is pacing for its fourth day in row of gains for the First Time Since back in february lets get over to dom for more on the big movers. Here we are best levels of the day or near that with around 1 gains as you can see. One Industry Group to keep an eye on is the banks. You can see some of those gains as of late youre seeing here kbe, its up roughly 30 in the last 11 trading days stocks on the move include dollar tree after the discount posted better than expected results. Down along with other airlines as it announced plans to reduce expected labor forces. The shares moving up about 5. 5 . Back over do you thank you despite the comeback we have seen with the s p 500 now up 39 from the march lows. Millionaires in america remain skeptical of the market. Wealthy investors betting on a slow and they are hoarding cash a majority of millionaire investors say it will take a year for markets to regain february highs one in four say it could take two years. Thats according to the Cnbc Millionaire poll that surveyed one more or more in investable assets half believe this recession will last longer in the Great Recession of 2008, 2009. They are Holding Record amounts of cash. They plan to put 19 of their money into cash. 34 into equities. They had been doing some buying. A majority bought or added to their stocks back in march their favorite stock sectors Going Forward the rest of the year health care, financials and business tech. The reason we care about this group is they owned 85 of the individually held stocks youre showing that chart of the Asset Allocation is that of the income thats coming in right now or is that of the overall portfolio thats the income coming in now. 19 Going Forward. They are already between 14 and 20 depending on the Group Despite the bearishness, stocks are on track for their best week in more than two months can the momentum continue . Utilities are out performing nasdaq is back in the leadership what do you think is going on here in. I think over the past few days, we had a very clear rotation into cyclical sectors theres reason for optimism that the data is getting less bad theres a limit to how much we truly can get back to normal while were still living in this covid world. For us, it makes sense to still focus on quality beneath the surface. We would still stick with an overweight to the sectors that have been working before like technology, health care, more defensive regions like the u. S. And asia but keeping some exposure just in case when you get the pops like we had over the past few day im looking at your thoughts on Interest Rate, they started to back up a little bit. Theyre still super low. You think that can remain so despite this record treasury we just had a sevenyear high last hour. Youre right. It looks like Interest Rate will stay low which is very good for the economy. It will be interesting to see how this plays out low Interest Rates are great for stocks stocks relative to bonds here look notwithstanding their high value, they look like thats the place to be. Where would you say people say i want to get technical about it i would look to small and mid caps which are catching up to the large caps small and mid cap, in my mind, are more reflective of the general economy. If you believe the economic rebound is coming, i would look to small and mid caps which were down substantially and really catching up and i think as the recovery continues, thats where i would look for value would you do so even with your kind of thought ons low rates knowing a big part of those are the banks and to some extent energy. I think when you hear comments like loan losses are pe peaking and the economy is recovering, that will help the banks and financials i would think the small caps and the financials are a good place to be. Just to touch on the hong kong issues, they are kind of on the back burner. They are just out of view for the markets. Do you think this stays out of focus . I think thats right. Every one is paying attention to the developments between the u. S. And china i think part of the reason that has stayed a bit in the back burner, the first reason is its not surprising anymore i think we have come around to accept that tensions between u. S. And china are here to stay. The second reason is that so far the tensions have taken place in term of rhetoric, limits to some financial flows, to some Technology Investment but they havent ratchet up to the point they become destructive. If we cross a certain thresholds, they will come back more to the fore and cause some additional volatility. Novartis is the latest company to jump into the race for a coronavirus vaccine. Me meg has the details. Another Major Company making moves into the covid19 space. Novartis will be partnering with harvard. The way this vaccine works is its delivered using a viral vector called aav to deliver the genetic code of proteins on the coronavirus. It is based on this Gene Therapy Technology so that could help with manufacturing scale up if they are successful. They have to get through human trials to figure that out. They are one of many now hitting that milestone or preaching t i that milestone we heard from merck they plan to be in human trials with their lead vaccine another big Company Making moves in this space. Its interesting to hear about the production aspect of things because the race is to find the vaccine but the next big part of it is to actually produce it at scale. Is that sort of the draw back of some of the other tech noniques that the vaccines are drawing on which is the moderna approach . We dont know yet thats one of the questions about that technology and others that havent crossed the finish line in terms of becoming approved vaccines. Well have to see how that manufacturing process works. All the companies are taking steps in testing their vaccines to get the manufacturing scale in place so they are ready to go if their vaccines are successful a lot of people have described this as building the plane as they are flying it which is a tremendous challenge thank you still ahead, boeing helping to lead the dow higher after announcing layoffs and one analyst says now is the time to buy. Well hear from him after this break. Plus, social anxiety for social media as trump is targeting the companies in a new executive order. Well tell you what it could mean for the stocks. Much more power lunch after this quick break. Right now is a time for action. Thats why usaa is giving Payment Relief options to eligible members so they can pay for things like groceries before they worry about their insurance or credit card bills. Discover all the ways were helping members today. Or credit card bills. Iits not acceptable oor nothing. And its definitely not close enough or nothing. Mercedesbenz suvs were engineered with only one mission in mind. To be the best. In the category, in the industry, in the world. Now, get 0 apr financing up to 36 months on most models and 90day firstpayment deferral on any model. Mercedesbenz. The best or nothing. Welcome back to power lunch. The industry continues to struggle now boeing and some of Major Airlines are laying out details about job cuts phil has the numbers for us. We heard from being yesterday putting specific numbers behind the job cuts they announced back in april as for the airlines, theyre just beginning this process. Nobody can be fired until or let go, whatever term you want to use. None of that can happen until after october 1st because of the government aid packages involved last niepght we heard from delt ceo saying well be rolling out our buy out packages that will be happening over the next several weeks once they get a sense of that, then they may make a decision in terms of what percentage of employees they still need to retain in fall versus how many will take bio packages how many involuntary layoffs will be needed we dont have those numbers yet on delta in terms of final employment as for american, the situation is they have started to roll out the packages for their employees. Theyll be getting rid of 5,000 management and administrative jobs that will be happening over the next several weeks as they sort of say we have to right size our staff and then they will move on the the pilot, flight attendantss, ramp workers, all of the union work force. The daily cash burn for all of the airlines has come down dra pratt m dramatically from april. Delta, united, southwest, they down in the range of 30 to 50 million a day. United airlines out with note to all of its customers saying its extended the ticket change waiverer it was to expire at the end of may. Now it will go till the end of june thats for people who need to change or want to change their tickets. The more the Broader Market rebounds, the starker the fact the airlines havent is. They are down 50, 60 . Just parked there. They barely recovered. What is that telling us about what will happen with these jobs they are selling off on these announcements. Its not like they are saying that will address the cash burn. Everybody knows the cash burn is there through the end of the year some of these guy, things could improve and they may be able to eliminate their cash burn before the end of the year. Theres no expectation of that happening. As a result, Everybody Knows they will have to become dramatically smaller and they still need to get more people flying right now, passenger levels down about 87, 88 compared to a year ago. Yikes, in a word. Thank yous thanks so much domestic air traveler traffic has started to tick higher those stocks still have major head winds to overcome with us is the Vice President of Equity Research at cfra. Great to have you with us. Hi. Thanks for having me you got a hold rating on delta as well as united airline. Phil was going through the efforts to stem the cash burn that each of these airlines have somewhere around 50 million per month at this point. They are somewhat handcuffed in that ta took the government money and theyre not able to lay anybody off until october 1st. Would they have been better off if they were able to take the bail out money but right side the business according to what the traffic load is right now . I think they would have been better off if that was the deal to get the government money with no strings attached. I think compared to if they had just faced this on their own with no government help, they would have been looking at pretty expensive debt costs to get through this on their own. I think in the end they are better off with the government package as it was given. Right in terms of turning this sector into buys for you. Do you need to see a rebound to traffic prepandemic levels . What sorts of the major lever here that needs to be pulled well, my estimate is that the Airlines Need to see somewhere around 90 of the revenue they had last year just to be breaking even again. Theres some that can be better than that and some little worse. On average i think thats the number if you think about it, 90 of where we were last year, were only at about 10 of that right now. Even though were well off the bottoms from april in terms of passenger traffic, we still just have so far to go. To me, the limiting factor really after the pandemic ends which i think it will within the next year with all the great vaccine developments were seen, the limiting factor really becomes kind of Discretionary Spending you know weve got a 78 or high in unemployment. Its hard for me to envision us getting back to that break even point even next year, for most of the airlines because so many people, unfortunately out of work are not going to have the money to spend on Leisure Travel like they did last year. Its goingto be really hard in my view. I think its more like 2022 before we see that kind of level. Collin, you have a hold rating, a sell on american and a buy on boeing. I want to go back to american for a second when we spoke with analysts, they say this company could come out of this crisis with 35 billion in debt and they have less than a 5 billion market cap what happens who would want to buy american if consolidation is the answer with that kind of debt load . If its not the answer, is it bankruptcy you almost cant understand how an airline with those financial characteristics can survive. I dont disagree with any of that its hard to imagine an airline generate profits with that kind of debt burden and much intensity on the competition as you see in the industry and especially when its not just the debt side. I think american and a lot of ways, even before you look at interest costs they run a little bit less Efficient Airline than some of their large peers. Im no expert on restructuring but i see them as among the highest risks to have to be restructured at some point collin, i want to go to boeing here because you raised your rating ongoing from a buy to a hold yesterday. You have such a dower outlook for the airlines how can you be so positive on airlin boeing when the airlines are the end user of boeings products. One of the things that helped turn a corner in terms of how i look at them as an Investment Opportunity is the production restart on the max which took place yesterday. That was a very important signal in my view that tells me that the rerertt rerertty recertification is near before that i thought the risk was too great. Its kiechbnd of a black box to figuring out how close they are. Once i saw that sort of in the works, it lowered the risk and theres still a risk for boeing. Its such a different business than airlines that i dont think it makes sense for the airlines who have customers who can basically cancel flights at will, doesnt make sense to compare them to a business like boeing who has kind of a tenyear backlog with thousands of planes where customers are contractually committed to buy the majority of those. The fundamentals of that business are still very strong if you look at airlines, the fundamentals are not attractive, in my view they both fall on similar levels in past year which i dont think makes sense. I think thats created an opportunity in boeing. Thanks for your time. Thank you for having me still ahead, take a look at the Home Building etf. The group on track for its best quarter ever during the coronavirus pandemic the boost giving it that historic move. Well tell you where traders are finding the best opportunity in the sector right now as more as more americans are left without a job, one college is pledging to help its 500 graduates find a job in the next three months the president of Colby College will join us theres more power lunch coming up i came across sofi and it was the best decision of my life. Were getting a super competitive Interest Rate on our money. Were able to invest through the same exact platform. I got approved for a loan and it was a gamechanger. Truly sofi, thank you for helping me prepare for whatever the future has in store. Sue. Good afternoon. U. P. S. Is adding a surcharge for some ground delivery packages starting monday. Hardest hit will be retailers that ship tens of thousands of packages for weak. No new york, businesses will be able to deny entry to customer who is are not wearing face coverings earlier today the governor signed an executive order putting that measure into effect similar restrictions have already been implemented in new jersey in britain, premier League Soccer will resume play on june 17th matches will occur without fans. The bbc says it will broadcast those games for free italys to league out with its restart date matches will resume on june 20th more on that story to cnbc. Com you can see how other sports leagues are planning to restart. Back to you. Lets get over to seema mody for our trading nation Home Builders stocks taking pause today from their recent rally. The group up 44 this quarter. Its best on record as positive housing data and low Interest Rates fuel investor optimism despite the coronavirus especial epidemic talk a bit more about the space and whether theres opportunity. Lets bring in the trading nation team. Im curious if whether this growing shift from cities to suburbs how that plays into the housing story and whether that creates an opportunity for those Home Builders. I think it helps support continued demand fp if you see a change in how people work and what happens in the workplace, theres more remote work then you could see a mass exodus for more expensive cities into suburbs. You already had tremendous support for the Home Builders because you had a shortage of homes going into the pandemic. Now you have low Interest Rates. The fly in this ointment is lenders are making itharder to get mortgages. That will be the challenge all the support is there its a question of how the banks become the bottleneck in this story. Matt, are you surprised by how far these Home Builders have run and whether it is time to sell well, its interesting because this is a group ta a lot of people dont realize help the entire market rally oit of that correction we had late in 2018 its not a big surprise to me. Now the one thing is i turn positive on the group in late april when it made a nice higher high the atf is really starting to get over bought here on the two stocks are getting quite overbought you got to be careful chasing it maybe i want to get back into the group is watching the price of lumber. Its a great leading indicator for housing stocks and its been stuck in a sideways range in the last week after having a nice run. That should be a sign that the housing stocks will take another leg higher wait for that to see before you really jump back in a big way. Great point on lumber thanks for