An awesome day i wanted to get with you first so thanks so much. Youre very welcome look forward to talking in the future. David, well see you later. Thanks for that. Good morning welcome to squawk alley. Im Carl Quintanilla with Morgan Brennan and jon fortt coming to you live from separate locations. Interesting price, but not dramatic, another alltime high on the ndx for a second day. S p really about 100 points from going green for the year vix below 25 the 10year yielding 0. 8 very busy morning in terms of critical levels, morgan. Absolutely. I think the headline numbers are milestones you put out there, put night focus in terms of how swift the selloff was and plunged into a bear market and now how swift this rebound, this rally weve seen in recent weeks, has been as well. That being said, there is a lot and i feel like we say this every day, but so much for the market to digest right now, whether the ecb and the Bond Buying Program announced this morning, whether the initial jobless claims, ninth straight week of moderation but at 1. 9 million almost, still at extremely high levels. Really those continuing claims continue to be in focus too. Those ticked up a little bit still a bit lower than what we saw a couple weeks ago that really puts that jobs number that were going to get tomorrow from the Labor Department in focus as well, right . Yeah. But where i see some drama this morning is in Semiconductors Intel is up 2 , so is applied materials, western digital, seagate, qualcomm up about 2. 5 , micron up nearly 5 . Some interesting action there among that segment of technology, so well continue to watch that also, in the hour, were going to hear from two Industry Leaders on corporations social responsibility among amid these ongoing protests we will have an exclusive with American AirlinesCeo Doug Parker and then later, apple cofounder Steve Wozniak on Silicon Valleys response. Lets start with todays Market Action as we were just mentioning the nasdaq 100 hitting a new alltime high. Joining us chris retler and steve molinavich good morning. Good morning. Chris, first, what do you make of the semiconductor move here given where weve been with the markets in tech . Software has been doing particularly well in general, but this morning, im noticing semiconductors i think that innovation continues to move forward. Theres a technological revolution going on globally Companies Like samsung, tsmc intel continue to battle to drive that efficiency in their products and some of their end markets are certainly under pressure which is industrials, automotive, some of the medical. But other areas like infrastructure, data centers, moving around, supporting this whole stayathome economy that weve been adjusting to in the last few months, and probably will be adjusting to on a go forward basis, theres a lot of demand out there 5g is another big theme thats coming here, both from an infrastructure in a device selling thats going to start in the fall, so theres a lot of moving pieces but semis are the future and, you know, they have volatility and some up and down, but long term, we still feel very supportive of the area. Steve, i look at the market, i look at tech, and i think boy, must be hard to find a deal right now. Tech has continued to do pretty well despite the issues that weve had in the broader u. S. Economy and global economy, but is this more about hey, where else are you going to put your money . Or is this more about this crisis has accelerated the trends driving customers towards this technology to begin with . Probably some of both clearly theres a lot of liquidity in the market and theres not a lot of growth opportunities. Interest rates you put money into stock and the growth is in tech a couple numbers i find surprising, about 60 of tech stocks have outperformed and 40 above their february 19th highs, which is pretty incredible and then finally coming into the year the most expensive tech stocks are up about 40 year to date you normally wouldnt expect that in a difficult market environment but theres no question that tech has been the winner in covid. Examples like zoom and the work from home, but its also causing large cooperate corporates to realize they have to transform quickly and thats going to benefit a lot of names. Chris, certainly were talking about tech but another area is small caps weve started to see the russell 2,000 catch up in this rally how are you perceiving that and what is it signaling about the Broader Market sustainability at these levels when the small caps begin to perform with some of the larger caps, which, you know, the Nasdaq Market is up 8 , russell down about 12, 13 , theyve lagged but when it broaden out, it begins to show or what youre expecting is, you know, some more economic recovery generally, they have, you know, single product, single services. They can be more impacted in this type of a down turn weve been through it has been significant. Were seeing a catch up phase now. What i would like to see is, you know, is this recovery sustainable. How big of a v on the upside is it going to be i would like to see improvement on the employment figures which were going to begin to see over the next few weeks but clearly theres some industries that have been impacted and i dont think theyre going to recover as quickly. But weve been nimble in the small cap area and we were still very focused on technology and health care, a lot of plays that benefitted from the covid unfortunately, so but theres also a lot of small caps supporting these large cap tech plays. New materials that are being nut for semiconductors theres lots of areas that are not household names and thats where we spend a lot of our time. Steve, on china, i mean when relations were better between the u. S. And china, tech was all about the promise of china now were banning flights from there, were ending preferential treatment for hong kong. The trade deal looks wobbly. Why is the market looking past that yeah. Its increasingly clear there are deep philosophical differences that go just beyond near term trade issues and tech is the main cause of that and well see the tech supply chain [ inaudible ] to begin to move out of china that did begin to happen last year the semi cap names get about 20 revenue from china and looks like thats going to continue. There is a threat eventually china becomes more selfindependent in the Semiconductor Space so that could be a bit of an issue for now in semis they are going to buy as much as they can get from us and the market is comfortable with that. That said, valuations in tech are clearly stretched. I think theres a quality of companies is much better than the tech bubble but unless we get a v recovery here quickly there could be some downside coming at some point. Finally, chris, i wonder, has the tech narrative just become the mainstream narrative at this point and in a way is that bearish for tech if everybody believes the story or are there any kind of subnarratives within tech that are controversial enough that there are areas that investors can look into and bet on that arent just popular wisdom well, i think whats happened with technology over the past few years is technology has found its way into almost every industry and its a solution to many of the problems that were facing even think of hotels now theyre applying technology in their checkin, cleaning rooms, you know, automotive, more robotics. Technology has really filtered into so many areas of our economy how do you define tech its becoming harder from a higher growth area that you want to place money as mentioned, you know, tech is a pretty good place. Its out growing gdp, but innovation is what drives this economy. You embrace it yeah. Well, when tesla is at 883 a share, whats your crazy bet i dont know anymore thanks, chris and steve. Thank you after the break an exclusive with American AirlinesCeo Doug Parker on the crisis in america and how corporations should respond. That stock by the way up 25 in todays trade. We will be right back. Stay with us as morgan said before the break, America Airlines shares up 25 this morning. Our phil lebeau has a special guest. Hey, phil. Hey, carl lets bring in doug, chairman and ceo of American Airlines joining us from the companys headquarters in ft. Worth this morning. Well talk about the state of the business but one of the reasons we wanted you to come on today is regarding an encounter last week on a Southwest Airlines flight with a black Flight Attendant, jackie ray hill i dont want to give the whole story away we would love in your own words to tell us about this encounter. Its one of the stories a lot of people can learn from. Sure. Thanks for having me last week i found myself needing to get to panama city, florida, for family purposes. By the time i decided i was going American Airlines flights were sold out. They were sold to our capacity were selling these days i bought a ticket on southwest flying anonymously with a mask on and sitting toward the back i brought a book on board to read, particularly given the events of today, that a board member recommended to me called white fragility. Its a challenging book about how race in america and white people in particular have trouble talking about race and those that those of us that think were progressive can be a lot of the problem anyway, i was i had brought that on to read. The Flight Attendant when i walked on saw me carrying it unbeknownst to me and with a little bit of time in the flight, she was working up towards the front of the aircraft and sat down where i was in the aisle in the window and asked me about the book. Saw me bring it on and wanted to talk about it. She had been struggling with this as an individual. I started to talk to her about it and said, you know, anyway, as best i could that look, what the book talks about we need to have these conversations and then she started to cry. And anyway, it was i did my best to receive what was really a gift to me she was shes the one who started the conversation, not me i was sitting back there happily sending emails to my team, not even reading the book. She started the conversation as a gift to me and i was happy to be there to receive it she put it on her Facebook Page and i ended up sending a note to my team about it, all of which is getting public and its gotten to be what was a private conversation is now a largely public one and look, you know, that to me is is, you know, for we ceos the lesson the the only reason this private conversation is public is because of what i do you know, thats i have a voice and those of us that are privileged with leadership, have i believe a responsibility to use that privilege, that gift, to break down barriers for those that are less privileged thats what jack ray taught me and im going to keep trying to do. Without divulging all of the conversation, why is it so hard for so many people, black and whites, really all races, to talk about this . And this conversation that you had, were you struck in the middle of the conversation saying, this is exactly what needs to take place . Yeah. Look, im not the expert im learning what i know is that conversation was profound for me. It is exactly what we need i wish i was better at starting the conversation im going to work to get better at that and thats what we need to do. The conversation is important and one we need to have. Thats much of the problem its not the entire problem. Conversations themselves arent the answer getting to the answer requires starting the conversations real conversations about how people are feeling the other thing thats come out of this for me is a number of emails and conversations that ive had as a result of this have been eye opening. Again, we havent shied from this, i didnt think i was a person that shied from these conversations but if you dont have the courage to start them, they stay in the background. When you do start them, it makes a huge difference. These are conversations that need to be had. Hi, doug, good morning. Its jon fortt im wondering what does a ceo do next what do you do next . Because as you just mentioned, it seems that the conversation itself isnt the end goal. The conversation leads somewhere. It leads to some kind of action. What do you see as the problem or the challenge that the conversation helps you solve at American Airlines . Yeah. It highlights where, indeed, the challenges and barriers are so we can fix them. What i know is, from the conversations ive had already, there are just barriers that exist that are not as evidents to those of us who benefit from the barriers as there are to those who are who dont benefit from those you need to talk about them to appreciate them better i think as ceos we need to start first with our own companies and make sure were doing things in our own companies, which all we want to do, i know we all want to do that, that will make a huge difference. But then collectively to business, needs to Work Together to help, you know, make change in the country we, you know, through our lobbying efforts, and other issues, we can Work Together to make a change as well. But again, it starts with a conversation thats not the end, but knowing what to do and exactly what the right steps are requires some conversations to take place first doug, i appreciate you coming on today to talk about this. This is morgan im not personally a religious person but when i hear stories like this it feels like a god moment to me, these types of encounters i appreciate you sharing that with us. What does that mean in terms of policies that are in place at American Airlines or that you would potentially now be looking to put in place based off of that conversation and based off just of what were seeing in Society Overall . First off, again, were really proud of the work weve done at American Airlines. We were one of the First Companies to put in place for all of our employees implicit bias training. Thats been important. A number of other issues i wont go into. This is not work we ignored but work we embraced whats next . Frankly again, im not certain what i know is what were doing is not enough. What ive asked is for our black leaders to get together and come back to us and help us figure out what we need to be doing more anyway, im not exactly certain the answer to that, morgan what i know is were going to go do it. Im happy to report back to you later as to what exactly were coming up with, but i assure you this, im going to personally be involved in more conversations on this. Our leaders are going to be personally more involved i know that as we do that we will come up with even more than what weve done so far and im excited about it doug, just less than three years ago that the naacp issued a travel warning to africanamericans saying look, theyre concerned about the safety and well being of africanamericans flying on American Airlines and as you mentioned, youve put in a chief diversity officer, office of inclusion, and taken concrete steps to say how can we do better not just within our customers but within the airline. You have a huge organization and turning around a ship and changing the culture is difficult. Has it been tougher than you expected since you started making those moves in terms of hiring ken charles or making the office of inclusion and trying to expand awareness and sensitivities . You know, before the last couple weeks i wouldnt have said it was tougher. Indeed all that work really important work that has had really positive impact what i think we all are now seeing as a country is that those initiatives, while helpful, are insufficient. We need to do more it hasnt felt harder. What ive learned its not enough we need to move faster and breaking down implicit bias is a huge part of it, but we need to be even more deliberate about making sure that were breaking down the barriers. Implicit bias is one of them there are others there are structural barriers in place that keep, you know, these disparities in place i know we can work at American Airlines to fix those and other companies will work to fix those within their own and what were learning is we as a country need to work harder i mean, not i dont think that, we know that were seeing it today. We need to do more work in this regard i was fortunate to have my eyes opened and the rest of the country i know is having their eyes similarly opened. We need to do more the programs we have in place are gret but not sufficient. When Corporate America wants something, they lobby for it, right. They look to washington if they want lower taxes, if they want subsidies to manufacture in the united states. To what degree is Corporate America going to look to washington and lobby for this . Lobby for not just individual change by company but collective change in ways you cant do alone or even with the Business Roundtable yeah. Thats i agree. And i do believe you will see us, again, come together, certainly ive seen a number of ceos come across your show in the last couple days saying similar things we have all come to the conclusion that this is that we as that we as corporate leadership need to come together to help this situation and that that starts with taking care of our own shops, which will make an enormous difference, thats not insignificant, but it includes banding together to go make sure that we are lobbying our government to do weighats righs a country and we will do that. While we have time here, i want to ask you, make an awkward transition here, to shift into this question the one question we have about business how are things right now we know you put out the july schedule and that calls for a lot more flightss. Your stock is