Washington coming up markets are slipping on fears of a 2nd coronavirus wave and were here to break down the falling stocks in the future of the u. S. Economy plus as protests have swept the nation causing much of policy debate Corporate America has moved in and helped aboard the movement well discuss and later we take a look at the state of big coin amid the growing global unrest and whether we could see an upcoming surge with a packed show today so lets dive in. And we lead the program with the u. S. Equity markets in turmoil the dow and s. And p. 500 are both on track for their worst week in more than 12 weeks the news comes as investors react to several issues facing the economy including the Federal Reserves Economic Outlook which estimates u. S. G. D. P. Will fall by 6. 5 percent in 2020 despite expected growth in 2021 in 2022 now there is also data regarding the new weekly weekly jobless claims released thursday. By the u. S. Labor Department New unemployment claims were just over 1500000 for the week ending june 5th and it should be noted that these numbers come in under the 1600000 new claims expected by economists polled by dow jones the number was better than the 1900000 new claims the week prior and then theres the fear of a 2nd coronavirus way but some areas of the United States are seeing a spike in new cases are key correspondent tribute chobits has been following the story filed this report. As most of the country is reopening businesses and stay at home waters are slowly lifting there is growing concern for a potential 2nd wave of the deadly coronavirus the number of infections nationwide now topping 2000000 with at least 21 states reporting an uptick of infections while 9 states have seen an increase of hospitalizations in other parts of the United States who they are theyve been must worried about it i think that theres a more of a return to like our previous normal and we are seeing increases there some experts say the surge of new cases is linked to memorial Day Festivities when hundreds of people packed rush pools beaches and parks during the Holiday Weekend while texas has reported 3 consecutive days of record breaking code in 1000 hospitalizations 9 california counties are reporting a spike in new coronavirus cases as well relax the lockdown restrictions also coinciding with Racial Injustice and Police Brutality protests. As tens of thousands of people take to the streets side by side every day for more than 2 weeks many not wearing face coverings the growing fear of a 2nd wave being felt on wall street the dow plunging more than 928 the open over 3 percent as the s. And p. 500 slid 2 and a half percent while the nasdaq dropped 2 point one percent airline and retail sectors hit especially hard shares of United Airlines delta american and southwest all dropping more than 10 percent in premarket trading well. Carnival corp in region cruise line shares fell more than 11 percent gap and kohls shares also fell more than 8 percent each the Federal Reserve warning the economic devastation will be felt for years to come officials indicating they expect the Unemployment Rate to end 2029 point 3 percent and remain elevated for years while output is expected to be at 6 and a half percent lower at the end of the year than it was the final quarter of 21000 so far the coronavirus induced recession has forced more than 44000000 people to seek out employment aid in just 12 weeks this is the highest number of unemployment in 90 years reporting in new york trinity each others r. T. For more on the state of the u. S. Market say in the economy we are joined by blue bus cohost christiane christie thanks for being here the dow is looking at its biggest one day loss since march and it dropped a over 6 percent at 1. 6. 8. 6. 82 percent just on thursday alone why the sudden shift in sentiment when we when we talked earlier this week we didnt seem to think that volatility was back. Looks like bad luck brentons here all over again with the diagram in minds today and this is on export 1st 3 different losing streak and about a month which is basically led by Airlines Cruise lines and retail all of which fell more than 10 percent today so it looks like instead of the reopening being the bullish narrative taking center stage we now have mounting concerns of a growing 2nd wave across the virus texas has just reported 3 consecutive days of record breaking hospitalized patients and california is also reporting spikes in confirmed cases so in light of all this and lesters are concerned that the recent protests will fuel a new wave of infections and result in persistently. Economic as the country cant fully reopen and recover so a lot of those leg down now is from investors taking profits both the s. And p. And the dow are still still you went today up more than. 40 percent from the coronavirus lows and so investors are cautiously taking gains as they continue to monitor the situation day by day so now the rotation is back in to shelter in place names and those are kind back such as zoom such as netflix and bouncers are dumping the reopening pieces and such as airlines in favor of for the more safety assets as well such as bonds and gold so were still in the early and ends of the sell off we can certainly see this to test the 200 Day Moving Average again as a weakness versus Chris Christie how much of this is actually a delayed reaction from what happened with the Federal Reserve yesterday. Well we could certainly interpret it that way like i said yesterday the market was looking for clarity on what else that will do to step in if the situation got any worse and yesterday we really didnt get that message and it took the market a little time digest that it struck a double edged tone yes but we never got any real clarity on how long the treasury purchases will last whether or not they would continue to taper off so yesterday the f o m c meeting it was somewhat of a placeholder until more meaningful choices are made in the next few meetings so keeping rates at it that was expected are a thats a no and it was but now as a reopening its not going as planned the market was looking for more actionable items for the fed to execute on it order to help that stain and support the market come the 2nd wave and this really partly is a 2nd wave of the u. S. Never really got it under control the 1st place its just one day decided hey were over it and started reopening so the fed really reminded investors yesterday that there is a huge gap between the economic reality and the market reality so that reminder is basically whats are in a lot of traders to take profits today and a lot of we cant bought into the market as we reported numerous times the previous week this was the least bought rally meaning that primarily retail traders traded thats what big money institutional guys they were going on the sidelines so we cant are the 1st to come and the 1st to go out and thats rally really didnt have much substance left its. Stand kristie before we go here the latest stimulus plans are actually set to expire very soon how is the average American Household fairing in this new environment and especially as we look at concerns of of what you call actually continued wave but what people are calling the 2nd wave of about 45 seconds. Well right now i mean continuous is going to be very difficult for American Households because right now theyre already having trouble making rent payments given the high amount of unemployment and the rising cost of living so right now with the latest numbers and the 17 percent of American Households didnt pay their latest monthly rent and reported that the squeeze on household is getting worse 31 percent of households said they had little or no confidence about paying rent next month so the average consumer isnt a did i rush it. Boom bust cohost christiane hang around because we have more to talk about a little later in the show. And as the protests continue throughout the United States following the killing of george floyd in Police CustodyCorporate America has weighed in in various ways of course companies took to social media to share a positive message weve seen statements or well produced videos supporting the black Live Matter Movement from the likes of amazon Nordstrom Ben and jerrys mcdonalds and even nike almost every mainstream streaming Service Posted as well including net flix hulu h. B. O. Max and prime video netflix has even added black lives matter as a content as genre Corporate America is even putting their money where their mouth is to support the fight against an injustice and inequality bank of america has pledged 1000000000 dollars over 4 years and a commitment to support Economic Opportunity initiatives Michael Jordan nike and jordan brand pledged 100000000. 00 over 10 years to organizations fighting for racial equality social justice and access to education walmart will commit 100000000. 00 for the next 5 years to create a new center for Racial Equity and the list goes on and on with Sony Music GroupGoogle Facebook g. M. And many more promising tens of millions to the cause but we come to the question why now that didnt simulates this is an important cause but racial equality has been a huge problem this country throughout history and recently weve witnessed civil unrest in ferguson missouri in 2014 and baltimore maryland in 2015 again not to mention other protests regarding this issue over the past decade to talk about this lets bring in host of the news with Rick Sanchez Rick sanchez himself i mean rick what do you make of Corporate America getting involved making these statements making these huge donations is this Just Lip Service or is this an actual attempt to make change or is it really just for the press im not sure i think its somewhere between lip service and bullcrap. One of those i think i havent decided yet which word appropriately bribes it but look you cant change americas problem of racial inequality or any of the fundamental social problems that exist in this country from the top down it just doesnt work that way in fact i would argue you cant throw money at any problem and fix it it has to come from here it has to come from that thing that we all have inside of us that makes us realize what it is that we have to do. To understand somebody whose opinion maybe we dont share a little bit better something were not good at doing right now in this country perhaps worse than weve ever been in the history of our country with the possible exception of the civil war but let me tell you what these countries these companies that you just mentioned them for all throwing these big dollars at all these things you know what theyre doing what are they doing cover. Theyre buying cover thats what theyre doing when let me give an example so ive worked at big giant Media Companies right you probably know all of them and i thought if theres a Big Media Company in this country i probably work for it heres what they do youre ready so they dont want to be criticized by africanamericans or they dont want to be criticized by Asian Americans or they dont to be criticized by hispanic americans so they write a giant shock when they think theyve done something wrong to the Asian AmericanJournalist Association the Hispanic Journalists Association the African American association of journalists and they write him a check for 100000. 00 now theyve essentially bought that organization which is the organization that speaks for africanamerican journalists so now lets suppose lets just say c. N. N. Not that i may have worked there but lets post c. N. N. Fired an africanamerican journalist under horrible conditions and now theyre getting heat from the Africanamerican Community for what they did or they criticized somebody or they did something you know which everybodys going to make a mistake. What they were a sense. Really done is theyve gotten cover they bought it from the africanamericans association of journalists now theyre less apt when somebody when a reporter goes to them and says what do you think of the way c. N. N. Or n. B. C. Or fox are treated that that issue or treated that person theyre going to say well you know what were going to reserve judgment because you know for the most part c. N. N. Has done a good job why because c. N. N. Just want to check for 100000. 00 that moneys not there so they can help improve racial you know integration in america its there so they dont get criticized there by cover thats what theyre doing and its interesting that you mention that because in 2011 bank of america who we mentioned is giving a 1000000000. 00 to Charity Spread out over 4 years they are they settled for 335000000 dollars for basically treating people on racial lines and equally when it comes to loans they were hired charging higher Interest Rates to write so of course they couldnt only give 100000000. 00 either because theyve already settled for 335 so 1000000000 looks much better now lets talk about the boardroom lets talk about the c. E. O. s office a little bit i have some more numbers for you i mean number one for 500 companies only 4 black c. E. O. s nor are there and when the africanamerican population makes up 13 percent of the workforce there are only 3. 2 percent of them serve in executive positions similar in hispanic communities 17 percent of the workforce 4 percent of executives you know youre not going to hear now that were going i mean is there something here to where you could put your money where your mouth is by hiring people putting them in charge of your company no im going to disagree ok meritocracy a business is there to make money its not a charity im not here to hire somebody whos green because theyre green and we need to have more green people even if that green person is not necessarily as good as the orange person im not here to hire an orange person because i want to help the orange persons of society so heres how it works in business right if you sit on a board of the Major Company you hire the person who is most qualified. Thats a meritocracy and thats the way business supposed to work heres the exception now im going to argue with rick sanchez is going to have an argument there are chances heres what we should do in business we should find ways to understand culturally how those people who are not hiring may be a good fit but we just dont know it because we only agree were see people who agree with us i only have a tendency as a as the as the c. F. O. Of a company to want to hire people who i agree with who look like me who sound like me who went to schools like me so what happens when you do that you have a tendency to hire people who dont look like people you dont agree with even though they may be brilliant thats what we have to do we have to culturally challenge ourselves to find people who are different than us but not go out there and say well today im going to go and hire a green person or yellow person or where this person or that person that doesnt work well right so what youre saying is there should not be a requirement to do this but you can make the cultural change within your business within your company to open it up to her and its not x. s and os its cultural its you look inside yourself and you say why is it last year that i didnt hire anybody from that group its because i dont know anybody from that group im not looking in that group so you have to force yourself to look at that group not because you want to go out and say ok lets go get a black person and a hispanic person major problem that doesnt work and i think the investment in education obviously youre saying you cant do it from top down right i think if they invest in the education then you could bring it from the bottom up then you could find more people of different races who do end up having those same benefits that you might have had an Ivy League Education careful because thats the governments job thats not a business is a job and if youre going to do with that you then youre basically becoming a socialist country host of the news with Rick Sanchez Rick sanchez thank you for debating yourself here on boom but. Time now for a quick break but hang here because when we return we take a look at the state of big coin amid the growing global unrest and whether we could see an upcoming surge. As we go to break here the numbers at the close. To. Play. Economics is called the dismal science for reason it is often imprecise and almost always open to see what you want to see in many ways he cannot mix remains in harmony however going on the situation. Is much more than about our politics its about the way we live for this foreseeable future marlene witnessing the recovery is so trying to bring. More years to. The my its always ok it was a. You know its an immediate what happened today thanks to just the mood at the. Smithsonian National Capital that i thought i. Said. Yes. Yes. Welcome back to the struggle is r