i appreciate it. >> it is the best thing we can do, right mark >> i go out in the backyard with my son all the time. >> yeah. it's -- especially these days. thank goodness we put that thing up mark, thank you very much. we will talk to you again soon folks, we've been watching what's happening with the markets. right now we're indicated down stick around today's continuing coverage of cnbc's special coverage continues right now. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber come to you live from didn't locations this morning. futures are getting closer to erasing early morning losses as we get this opec plus agreement. goldman suggesting the market bottom may be in place we'll get our first taste of q1 earnings with jpm and wells tomorrow jim, last week you did say you were beginning to feel better, it does look like david kostin shares that view today >> yes i think david has been, let's

say, someone who believed that things may not bottom. and i think he's switched. he may say it's not in dramatic fashion because it's near the middle of his piece, not at the top. i do believe what we're seeing is a gigantic amount of liquidity put in by the fed, when it looked like things might go back down that mattered a lot. a lot of companies that don't have great credit are getting money. that's important we saw the retailers go up last week it wasn't because retail sales were good, but because their credit was so bad, maybe they get a chance to raise money. ge raising money a lot of companies are raising money that would not be able to raise money. that is going to be a major change to keep a lot of companies out of bankruptcy and in the same way that the oil deal might keep companies out of bankruptcy david, you know there's so much debt being issued now. and there's some opportunities for people who want to buy debt, but holy cow, is the government wide open to buying anything

>> on thursday, when we were going over the release and was still fairly new at that point, yeah, 2.3 trillion in loans to support the economy. the takeaway, many people talk about it, the high yield market. the idea that the fed will be willing to buy noninvestment grade bonds. >> that does extend into the energy industry. there the ratings may be below what the fed is able to do, jim. credit is flowing. honeywell putting in place a new 1$1.5 billion revolving facilit. these are just, you know, deals with banks but the capital markets also do with the fed's backing, certainly are a lot more generous than they might

otherwise be >> right it's rather amazing. carl, when i look at what the bottom might be, it's when the fed said we're going to do whatever it takes. and until then, i saw retail after retail that i thought would have to close. i saw lots of companies in the restaurant business, they were just trading down precipitously. the one thing that's still the fly in the ointment is exactly what mark cuban said he has a lot of companies that -- i don't want to say weren't doing that well. where doing what they should, that is grow and banks are deciding maybe those companies don't deserve the money. that was not the plan. if the banks have done that, secretary mnuchin has to come out and say that's not the mrap a plan at all. the plan was to keep companying open, hiring people and not for the banks to evaluate. most of the banks wouldn't want to take these companies. wow.

look at that >> jim, is the market trying to discount the efficacy of sba loans or have we moved on to the second step, which is what you were talking about a moment ago, the quality of demand and speed with which demand covers, maybe mid-may is a potential opening for some business. >> if you don't get small business open, then what we'll do is we'll go to costco and we'll go to walmart and we can go to target home depot, we'll go to lowe's i don't know maybe mcdonalalcdonald's. maybe wendy's. the base of the country are places we like to go it we just want to go to domino's, mine somehow something that was meant to be able to help small business with community banks suddenly is being gated by big

banks that don't want these loans? they want to bar san miguel's loan all i'm try doing is pay my employees. i have like 25 employees that i have to worry about in two places i thought for sure, you get a number, you get an sba loan, you reopen, terrific, because you reopened, you don't have to pay the workers. is that a farce? did we all get faked out if we all got faked out we'll end up going to the restaurants that have the balance sheet. that's not -- i didn't think that was the plan. >> yeah. >> geez, chase is deciding whether they want to give me a loan they'll say no they will. they say no to everything else >> if mnuchin were here now, he would probably say, look, this is seven days old now, eight days old the reason for going through banks is it was a ready network of distribution pipes with which to give money.

thousands of banks with relationships already in place >> yeah. >> it's all new, carl. that's true. we did ask about that on thursday when he joined us, of course i was hearing that the banks were asking for more disclosure than perhaps anticipated or required by sba. the main street lending program as well, mark cuban was talking about it this morning, the banks are keeping 5% of the loan you still imagine credit quality-wise, you won't lose 95% there. but perhaps that is also going to be something of a sticking point in terms of getting the money out there as quickly as possible >> yeah. seen some surveys this morning of small business owners who indicate that they are applying and in fact applying in rapid numbers, but many have yet to receive the money. now, secretary mnuchin would say, yeah, we said it would be a couple weeks it hasn't yet been a couple weeks. >> certainly don't feel like there's much hope.

if they're giving the money through paychecks and automatic data, i know that wouldn't have covered everyone maybe the sba could handle the rest my wife and i are able to handle it, but how many do? this is not working. i know the community banks are good and have the intent if we have to get a loan from chase and other people have to get a loan from city, forget it. none of these people -- we're not credit worthy, so to speak we're not gigantic companies that have great balance sheets that need a loan we're companies that, i don't know, we had a decent week last week, not so good the day before paychex knows how we're doing, automatic data knows how we're doing. chase, my bank, i couldn't get a mortgage out of them i have a decent balance sheet.

i think we're -- something is wrong. and i would have hoped that -- something is very wrong here >> jim does it -- >> jim, what is the message to your employees >> i'm sorry who goes first >> my question for you is what is the message to your employees? >> i'll cover you. i'm wealthy enough i'm grateful you'll get your money. i don't know if people feel they can make more money on unemployment, that's fine. i had lots of discussions this weekend about this i'm sure everybody did i'm one of millions of people that are trying to figure out, well, we went to our bank. did we make a big mistake going to chase i've been a client for 35 years. i don't know am i a sucker? i don't know this is -- >> no. >> no? who should have i gone to? i wish i could have gone to square or automatic data or something. >> yes, i am, i'm curious about whether it changes your view

overall of the market. just this morning in speaking to people, i mean, there's those who are getting more bullish who believe april will be the worst month or the cruellest month, may will be better than april, june will be better than may and we'll be focused on 2021 earnings, '20 will be off the table when we think about things therefore we hit bottom. there are others who say things are just not going to be back to normal any time soon the money may not be getting there as quickly as possible mark cuban saying if the money doesn't get there soon, there will be deeper problems. they'll look at that the idea of people getting back when you have major cities like new york, l.a., miami that are still going to be under quarantine of some kind. there's concern about food sources with smith fiefield foo, that pork processing plant restaurants, how many can come back into business it's funny in picking up people who are becoming more bullish

based on the overall view that things will continue to get better, and more bearish based on the idea that the market is also anticipating that, and, n. fa in fact it will be tougher getting back to business >> the bigger companies won't have a problem i don't think anyone expected that what would happen is there could be a handful of companies in charge and the companies that are small just die fortunately we have the banks this week. carl, we can ask them. here's what they'll say. everybody is going to get the numbers, it's all backed up. we'll hear the sba is backed up. there will not be an alternative. they have to say we're also going to let automatic data help us, we can see -- they have a view of what we're doing they have to let paychex do it they can't let us close? how many weeks do i have to front people i don't front people, i do okay.

we can't front -- most people can't front people mark cuban is talking about not fronting people. i know he will, he's a great guy. we're not governments. >> yeah, you mentioned the banks. it is a good opportunity to ask you how we'll process them this week prior to -- prior to prior quarters jpm and wells tomorrow does the print mean anything at this point how deeply do we need to read between the lines in the commentary to get a sense of what q2 is looking like? >> what a great question what will happen is, this may be the end of the notion of we will predict, here's the future if i were any one of these banks i would say we don't know. it's a health issue. it's a biological issue. in the same way people say it's the science that dictate it. anyone who makes a projection is going to prove wrong

they don't know what will happen i think it will be a curious earnings season. especially what's going to wells say in hey, we're brand-new? i think it will be a disappointing season in terms of trying to figure out what things will go on i'm going with what kostin says. maybe we've seen the bottom. >> all right we'll take a short break here. when we come back, lots of calls to get to on caterpillar, deere, fedex and commentary on gilead's covid-19 drug. we cannot do all the good that the world needs. but right now, the world needs all the good that we can do. to everyone working to keep america strong, thank you.

a lot of commentary this morning on remdesivir, that drug from gilead after the company's post on friday let's get to meg tirrell >> these were highly anticipated updates. what we got wasn't a clinical trial, it was an update on 53 patients who received remdesivir under compassionate use, that's for very sick patients who are not included in clinical trials. what the results showed is that 68% of the patients showed a clinical improvement being able to receive less oxygen support essentially there were 30 patients who were

on ventilators, and the results showed that 17 of those were able to come off that intubation, but 7 patients included in the results died now, there are some limitations to this data because it's compassionate use, there are no controlled. they were not compared to anything in the study. the lead author of the new england journal of medicine article says there is no proven treatment for covid-19 we cannot draw definitive conclusions from the data, but the observations from this hospitalized group of patients who received remdesivir are hopeful. that word hopeful is a takeaway that a lot of people are taking from this update but we are going to be looking for more controlled data from clinical trials and gilead outlining when we should expect to see some of those updates from their own studies potentially later this month we should see an update a study in china was discontinued we're not sure when we would expect to see that data. an nih study is going on, that's

a rigorous, controlled, double blind study. that will happen in may. some already starting to speculate, including jeff porges, an analyst, that we could see potential approval of remdesivir in may. a hopeful update but we need more information back over to you >> yeah, meg, it's david just to point out, this is infused, this is not oral. you have to get an infusion to get this, correct? >> that's right. so, what folks are talking about is this would be for hospitalized patients who are there and the people in this trial received a ten-day course. you're receiving an iv drug for ten days in the hospital >> meg, thank you. should point out later on, in the next hour on "squawk on the street," talking to wendy holm, the ceo of ridgeback bio therapeutics who is moving in to a phase one trial for an oral

antibiotic that they hope is successful we will speak to her >> for now, jim, let's move back to the markets themselves and get a mad dash in if we can. you want to talk micron? >> the leader in this market since the bottom has been telco tech the one that i thought had the most prominence was the bounce in micron. micron has got all sorts of tech inside it. and there had been some tightness in d-rams. goldman downgrades it. it's a chilling downgrade. the reason i say that, there's so many stocks that have a great move off the bottom, you don't want the leadership picked off this one is a pick off it's basically saying, all right, we had the big move that's over. too many of these, we will go further down will we violate kostin's level

i don't think we violate the low. i read it, i said eh, i don't want these now if this is the start of downgrade season ahead of the earnings, we'll have a tough earnings season. micron, not so great >> all right we'll keep an eye on shares of micron and continue to watch the overall market and see if the s&p continues that rapid rebound we've seen, certainly last week one of the records for some time a lot more "squawk on the street" comingig bk. rhtac om, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪

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welcome back on this monday morning to "squawk on the street." neil kael kashkari made some xcs about the country's ability to reopen in the next couple of days, saying without a vaccine we could have 18 months of rolling shutdowns. >> it would be wonderful if a new therapy would be developed in the next couple of months and people could go back to work and get treatment. potentially we would have a v-shaped recovery. barring a health care miracle like that, it seems like we'll have various phases of rolling flareups as we heard from your guests from washington, different parts of the economy turning back on, maybe turning

back off again this could be a long, hard road we have ahead of us until we get to an effective therapy or vaccine. it's hard for me to see a v-shaped recovery under that scenario >> jim, too bearish? >> yeah. you have to have testing i know that nancy pelosi says testing, testing, testing. >> that's been the call. but, look, if we know we're okay, and i know -- i hear it, jim, you don't know if you're okay for the next five days. everybody wears a mask we have a lot of testing, then i think you're willing to go out if it turns out that a gilead makes it so this is not the end of -- that you can just go home for a while. i don't know i just refuse to believe that science will not get closer and closer i don't like the idea that we shouldn't all be wearing masks i'm not wearing a mask now when i go to a store, they don't have masks, where is osha? don't they have to do masks to prevent everything you know -- the perfect is the

enemy of the good. we need to just cut down the instances where we touch each other, the instances where we breathe each other's breath. if we have enough people who have been tested by abbott, which is a great test or sefid, i think we'll have people who come back. it's not going to be something that happens quickly i really do fear empty storefronts everywhere because of the choice of using banks, they're looking at a lot of things, they have a lot of people examining loans they're not supposed to. they're supposed to give us money. that didn't happen didn't happen. >> that was the point in the conversation between you and speaker pelosi late last week talking about ways in which we can ensure that we avoid a depression take a listen to that. >> we could have a depression because so many people are out of work. that's why we have to get the system really energized and

working. let's get out those unemployment checks let's get out those direct payments let's get these loans freed up let the banks be the friends to this whole system that they are. this is an era of entrepreneurship that we're never seen before because of the challenge to small businesses. >> jim what kind of onus does that put on congress the next few weeks? >> they have to understand whatever they're doing with this next tranche of money, they have to be sure that there are people who get it who want to stay in business i know it's supposed to be this tranche, but they have to make it so the community banks are the ones that should have done it the big banks. they need another conduit. i wish they didn't i know a lot of the big banks are trying no one is trying to stop small business but when you have a big bank involved, they're not going to be able to analyze it.

i think the speaker is correct, they have to put more money into the hospitals. did you see how much the teaching hospitals are losing? there's just states losing fortunes we don't want to do what happened in 2000, where the states were -- they really got hurt so therefore we didn't have enough money for everybody we have to make sure nobody gets hurt and particularly the states and the hospitals. i don't see that happening right now. >> jim, you raise an interesting point on the health care system. so many different parts of our economy have to restart. it's not like the health care system in new york, new jersey, other areas so hard hit are not operating at above capacity with those heroes on the front lines, but there are lots of hospitals around this country right now that are waiting for an influx of covid-19 patients that are not doing anything else. that are not doing the elective surgeries that pay the bills, that are not treating cancer patients in the same way or heart patients in the same way

people are putting off procedures that they otherwise would do there is an element of this that becomes important as well and restarting the health care system, so to speak, within the next four to six weeks >> that's where the money is you're right, david. i think that when you think about elective surgery, that will impact a lot of companies about to report. that was something we regarded as something steady. when it comes to earnings season, a lot of things we felt there is always going to be something that helps them and makes them more consistent take caterpillar they had a great rebound off of the $100 level a lot of that is because we believe the oil, they have a big oil mining business, that oil was going to bounce back because of the talks that the president was having with the saudis and the russians because of opec plus i come in today, i don't see oil roaring. i don't want to bet against oil. i have to believe maybe the market is not correct about it because it should have been up a little bit you need to see caterpillar get

some orders from china china is not as big as oil and gas. i just feel like, unless it's connected to china and china is spending, i don't have a good thing to say >> you saw the downgrade, right, out of b of a. >> that was painful. so true. >> target 115. looking at energy exposure, which is really embedded throughout their customer base dividend risk of some of the largest customers. retail sales obviously likely to worsen that's coupled with the downgrade of deere >> we have these points of pain in the system. the whether they be the food system maybe having some -- let's say some supply issues, whether it's driving, not coming back whether it's small business waiting for the bank loans of which could take forever, let's be honest, the sba was never

made to handle these loeps that's an important bottleneck it will happen or if it's people who just are afraid and i don't know how to deal with the people afraid. having been -- i actually -- i got some things i took out this weekend. so what do you do? you take the lie sysol, the bag, it's a sub optimal way to eat. >> yeah. so you're doing the full wipe down of your groceries >> and i take the amazon box i leave it outside >> yeah. >> it is cardboard it's covid-19 territory. >> i know. we are very uneven in our treatment in all of those different things some boxes sit others get opened immediately. just wash your hands a lot certainly one thing to keep in mind you mentioned amazon speaking of e-commerce, before we get to the opening bell,

e-bay has a new ceo. he's been at walmart, interestingly. in fact he's been the coo of walmart's e-commerce business. had worked at e-bay from 2001 to 2009 in a variety of technology and business leadership roles. the market responding well to that from what i saw in the early going. the stock does appear to be up ebay has not been hit particularly hard given its place in the e-commerce ecosystem. small it may be in some ways, but one of those companies that may benefit from this. it's also interesting, he comes from walmart -- and there's no shortage of speculation that some of these larger companies like walmart, given the current situation and how much more emphases is going to be placed on having logistics and having an e-commerce business that delivers immediately, that they may be looking for further

acquisitions i did note he came from wal-mart e-commerce and there's always question in whether walmart may be interested in buying something like this. >> the rich get richer like when the banks get bigger wow. there's the opening bell we'll see what the day brings. everybody is aware we're coming off the best week since '74. australia, hong kong closed for the holiday. in terms of the curve over the weekend, i don't know, most optimistic data point, new hospitalizations in new york state down to 53 that's the lowest since tracking beg began. we have not touched on after four days of wrangling, owe pep pl opec plus putting together a 10% supply cut >> are we over the curve no one wants to say it when what happens is we have another

spik spike. >> my daughter is in madrid. the numbers are better there italy a bit better i know people want to look at a small outbreak in south korea, but a lot of people were saying, look, could you have started it? geez, let's look forward, not backward my feeling is that things are better but i do want to see that employees have masks on. and we should wear masks everyone should have a mask. and let's get the testing. i really want to get tested. i want to know whether i had it or not i had the flu earlier this year. what was it? i think a lot of us feel the exact same way we don't know where to get tested we don't know what to do i'm just -- i think a lot of us are just saying, wow, i wish we lived somewhere else where maybe it was easier to get tested. carl, do you know where to get tested >> no. there's a cvs in georgia that

has some drive-through testing good luck getting there. morgan stanley does have a model out in which they see serology testing widely available in june wave two goes back to work mid summer potential vaccine they think october for health care workers. so people are trying to put together some picture of what the summer and fall could look like >> i think that's optimistic there's a plan at all. i wonder whether the president will fire fauci. because i think dr. fauci still has some standing. i know when i listened to the interview, he is interviewed endlessly. he finally said it he said listen, maybe something better could have happened in february does that -- is that it? i think every country in the world was just wishing they did things earlier i read the navarro memo. peter was saying this could happen i think things were pretty fluid. and i think fluid enough that

people were hoping -- look at mayor deblasio >> well -- >> mayor deblasio was the worst. >> jim >> what? >> new york city certainly could have moved a lot quicker >> they were the worst >> jim, you -- you were saying it on our air. you were talking about it if you're 60, don't go outside. you were talking about ships becoming hospitals, floating hospitals. the cruise liners. you were talking about that in mid-february >> i know. i was scared to death. >> the super bowl was the 4th. jim, you were talking about -- you were warning about the supply of drugs out of china >> yeah. i thought that if i came back and i tried to just sound the alarm that maybe people would listen and they weren't look, we can play the tape about whether i was -- geez, i came back, i was scared to death. i realized, i was wearing a

mask that looked like i was a panic guy. so i took the mask off people recognize me, they said, wow, that guy is really out of control. i came back. i ran a tape at the beginning with me and tepper saying we're all going to get it. i looked like a crazy man. i know we all want to blame whoever, but i came back people said, jim, the sky is not falling. i have a surprise party for you that is coming no i don't want to have a surprise party. i -- i don't want to get it. i gave a georgetown speak where i had to thank everybody, shake everybody's hand all of this i fell was dead wrong. people didn't listen when i look at these things, the retrospect of everyone being attacked, i say, no. i came out and said stop america. all that happened was that i was completely ridiculed i think the backward look is

wrong. >> we -- well, jim, come on. we do know from some excellent reporting and some reliable places that, in fact, there was a lot of concern in the federal government that was ultimately not paid attention to until far later than it could have otherwise have been, to what mr. fauci was talking about and to your point on whether he will be fired. >> you took away his doctorate >> excuse me dr. fauci. >> holy cow. that says it mr. fauci. >> on the testing front, i'm looking at a tweet here, new york city's health department says the city is in danger of running out of swabs for tests >> that's great. >> says only test hospitalized patients good luck in getting one of your tests soon, jim. you like so many other people -- so many people think i may have had it i wonder if i had it perhaps i did chldid. we all would like to know. it doesn't appear that will

happen soon. >> i want to know if my kids have it, those are the ones that dr. fauci says are the people who can give it to you i love my kids to get tested i would like to see them i would like to see my wife. how is they doing? i saw her at the beginning of march. >> two things. fauci is going to be taking phone call questions tonight on c-span >> really? >> at8:00. the president just now tweeting about the opec plus deal having been involved in the negotiations, the number they're looking at to cut is 20 million barrels a day, not the 10 million that's generally being reported if anything near this happens, the world gets back to business from the covid-19 disaster, the energy industry will be strong again, far faster than currently anticipated. 20 was a whisper number on thursday not the number that came out of the meeting. >> no. there's -- >> no. >> that would be good. i know people feel there was a

surprise element that could happen i don't know i just think you're going to -- if you're an oil company, you have to rely on the fed to be able to buy some debt. i keep thinking, what debt is the fed willing to step up to? david, do you have a sense of what the fed is looking at do they want to bail out companies? do they want to bail out neiman marcus do they want to say, macy's is cool how do you know what they think is good and what they don't? >> i got to -- well, i would have to go back and look at the footnotes for the announcement from thursday, jim, in terms of -- i think they stop at triple b so i'm not sure where some of those find themselves right now. some of that debt finds itself in terms of the rating obviously they're going to be buying a broad selection, right? they're levering that at 8/1, something like that? >> yeah. >> yeah. 10/1 on the investment grade, 7/1 on the noninvestment grade

i don't know specifically where those -- by the way, ford got -- didn't get ford get downgraded, too? $34 billion falling from investment grade into high yield, which is why that market needs a new buyer, believe me. it's not large enough to sustain that kind of volume falling into it, so to speak, from the investment grade market. >> we are getting some news on ford for that, let's get to phil lebeau >> talk about a monday surprise. ford really not giving guidance, we know they suspended guidance, they dropped preliminary results for the first quarter. these are preliminary results. final result also come on april 28th i think this is clear that ford and cfo tim stone are trying to send a message in terms of having ample liquidity giving everything that's going on in the auto industry. we won't get into what the first quarter results will be.

we have not exactly seen what the estimate is from analysts. a couple of interesting notes. one, on april 9th, the company had $30 billion in cash on its balance sheet, including 15$15. billion in proceeds from borrowings in the last month, from two existing credit lines. tim stone goes on to say we believe we have sufficient cash today to get us through at least the end of the third quarter with no incremental vehicle production and wholesales or financing action this is ford saying, look, we have the cash at least to get through the end of the third quarter. that's if things don't improve at all and they are planning a phased restart of production sometime in the second quarter. most believe in the auto industry you're looking at may, whether it's the beginning, middle or end remains to be seen depending on where the facility is at, what's happening with the health departments in those particular areas about whether or not they think it's a good time for companies to begin

manufacturing again. at least some guidance from ford in terms of clarity, i should say, clarity in terms of its cash position. 30 billion on the balance sheet, and enough to get at least to the end of the third quarter that's separate, carl, of whether or not they have to take out additional debt ordo other typesof financing, et cetera >> phil, to be clear, considering a phased restart of some plants? >> in the second quarter and, look, they already said they're not going to be manufacturing through the end of april. almost all the manufacturers have said that there may be a few saying the end of april we'll get there i think it's likely that we will see the automakers -- talking generally here, sometime between the beginning of may and the end of may, you'll start to see them bring on their facilities, as well as the suppliers. they'll be doing the same thing. again, it depends on where the plant is and what the situation is with coronavirus in that

particular area. >> all right phil, thank you very much. >> phil, is anybody buying cars, just in general, buying cars and trucks a lot of the downgrades this morning for semis have to do with the fact they're connected with auto. and that auto is a disaster. i don't know if it's a disaster. >> jim, the expectation, if you were to run a sales pace or sales rate for april, most are saying don't be surprised if it would come in at 4 million to 5 million vehicles, as a sales pace, not total vehicles sold, but as a pace. for point of reference, most were expecting the sales pace in april to be between 16.5 million and 17 million vehicles. vehicles are being sold, particularly in the south and in the southwest. down in texas, i mean, pickup truck sales are down maybe 50% in some parts of texas now, that's not great, but there are sales going on compare that with the new york area look, you're barely getting any sales up there you guys know that no dealerships are really open

you can buy online, but that's a drop in the bucket relative to what they usually do >> very true very true. >> phil, thanks to you david, interesting piece out of ben smith and "the times" about bob iger and disney. just when you think you're out, they pull you back in. >> yeah. it was an interesting piece. there's been a lot of focus on disney we've been talking about it. many out there will say when they can reopen the parks, that's disney, that's also our parent company, comcast, which also has a number of theme parks. that will be a good sign certainly. it will be reflective of peoples willingness to potentially go back to business, so to speak. it's still much unclear how you exactly do that. iger talking to barron's last week, talking about taking peoples temperature. so many people are asymptomatic. and how many kids run a

temperature anywhere and having nothing to do whether or not they have the virus. it is interesting to think about, you know, if this had happened a bit sooner, mr. iger would have stayed on as ceo. i think certainly one would have to anticipate the board would not want to make a change the way they did, in certainly the biggest crisis that disney faced. we talked about pressure on the theme parks, pressure on espn as well given its inability to run anything at this point that actually has anything to do with live sports. you know, so many different areas. the studio being shut down now disney plus is a bright spot 50 million subs passed last week iger certainly in an important role here. they're certainly glad he didn't leave. he's the chairman. he's working closely with mr. chapek as you might imagine to

try to figure out particularly sort of how and what business looks like after you get past this crisis. >> yeah. to me, i was kind of shocked at this but then you realize the furloughs, you realize that maybe the gatherings, do you want to gather you see shanghai is not open yet. at what level are you buying an iconic brand because you know it will be around and this will not last forever this one has more of a valley that i'm willing to hold on to there's other companies today that have a valley where i don't know companies that are ls versus companies that are us. i feel better that bob is there. you know, everyone knows he's a steady hand. at the same time, do we want to get in crowds? boy, i don't want to be -- i see people, i cross the street when i see two people walking together i don't know what i would do if

i'm waiting in line for a ride for the jungle cruise. no thank you i don't want the jungle cruise i don't want it. anyone want it >> yeah. until you know for sure that you already had it, which is -- >> we need that. we need immunity we have to find out who has it this is ridiculous can't we just find out come on. let's just find out. i'm tired of not knowing whether or not i'm sick or not everybody else is. look, the reason why we're not opening has nothing to do with us we're a strong country again, which means nothing other than the fact that we're ready to go out if we think we can't get it i don't know about you guys, i have probably a dozen friends who have had it. i say okay, what are they going to do? the answer is they're going out. but there's not a lot to go out to >> yeah. >> they want to let people know. don't you want to let people

know give me a green -- >> absolutely. absolutely >> guys, let's get to bob pisani and see what's happening here as the markets reopen this monday >> happy monday. not a terrific open. 3/1 declining to advancing stocks europe is closed for the holiday. not a lot of help to us right now. we started off positive with energy on the deal announcement, but even energy has turned weaker here. banks are notably weak jpmorgan reporting shortly tomorrow, down about 2% here consumer staples weak, industrials on the weak side there's your energy stocks they were all positive at the open these are high beta energy names that would benefit from any deal at all as you can see, even they are on the flattish side right now here goldman talked about that deal saying it's historic but insufficie insufficient where are we in the markets now? we've gone through several different phases of the coronavirus. we went through the february 20th and march 23rd phase.

i call that the panic phase. we dropped 34% on the s&p 500. then we went to the rally phase, i guess you could call it relief or fear of missing out phase, we rallied 24% off the lows now where are we some people are calling it a frustration phase that we're likely to enter now where we still have negative news on the shutdown, on earnings that are coming overall, and, of course, we still every day come up and i put together lists of companies that are withdrawing guidance or furloughing people i think this is a useful way to realize this is still very much an ongoing crisis. grubhub today withdrew guidance. a bunch of companies in the last day or so announced they're furloughing people, including tupperware, groupon, live nation, and even disney world employees getting furloughed always useful to realize there's real damage here and it's hard to pick a bottom right now what are we expecting from earnings season? it's been difficult to figure out. i've never seen a dispersion

between analyst estimates like i have for q2 numbers. they are essentially useless i don't see much solace looking at the earnings guidance we have probably close to 100 companies withdrawing guidance for the quarter or for the full year how will you estimate anything about global guidance in the s&p when so many companies are withdrawing the guidance people are trying it i am somewhat heartened. noted this last week that a number of the big top-down strategists that we have on all the time are coalescing estimates for the decline in 2020, somewhere around 20% to 30%. you might say you could drive a truck between these estimates, 33% to 19% that's a big dispersion, that's better than it was two, three weeks ago when nobody had any idea what the numbers are. at least they're starting to coalesce around some idea about where things might be going. we'll get banks this week, jpmorgan tomorrow. i look at the reej nagional band what they might have to say. they'll be hit by the brunt of

the lower provisions for credit loss, which is the most important thing. i want to here about how many loan losses they have out there. flatter rates, a lower yield curve. the government programs will help, but these regional banks make demands, main loans out to the companies, to the restaurants out there. to all of these small businesses that are out there i want to know what kind of loan loss provisions they have. and they're big asset managers on top of that if you get lower value of the stocks, lower value, they get paid less on that because they're paid a percentage of the assets under management. even asset management, a growth area for all these banks, a bit of a problem there's some of the regional banks all down as we go into this i want to point out what's been going on here. there's an etf for this, kre, the regional banks, not the global united states centric banks like citi group. look at this number.

55 at the end of february. went to 27 on marchsraet's rall 37 or so, that's a modest rally off of the lows. yes, it's a rally. just remember, we're here we'ren 30%, those banks from six weeks ago. and the market is very much pricing in some negative commentary in the next few weeks. we'll see exactly what goes on the key is getting any kind of guidance at all. se c has made it clear, go ahead, tell us everything you know we will not come after you if you change that guidance a couple weeks from now. we're giving you essentially safe harbor to be straightforward with us and don't hold back. i think that's going to be good news at least we'll hear from these companies about what they really think is going on guys, back to you. >> all right bob, thank you for that. dow down about 350 let's get to rick santelli as well good morning, rick >> good morning, carl.

well, treasuries along with many sovereigns along the globe are starting to simmer down. less volatility. intraday of tens, up a bit month to date of tens, what's interesting is the way we're moving up a bit, but also realize we're 20 basis points from the all-time low close at 50 basis points and idling foreign exchange at one point was the epicenter of volatility. look at year to date of the euro versus the dollar and it's starting to simmer down and come to the midpoint of large moves as it moves right. same could be said for the dollar yen moving sideways. if i go to the board, dollar index since february 1st, i like to use high-low perpendicular midpoint with volatile markets it gives you where the next move in if you look at how accurate it's been, we'll continue to find a

midpoint in foreign exchange that is a good thing along with volatility and the demand for dollars. everything seems to be easing back a bit the one thing you need to pay the most attention to is the notion of a euro bond in europe. the ecb really needs to come up with a solution to all these countries having divergent sovereign debt and one credit reigns, supreme. german they have to come up with a euro bond it's going to be a complicated task david faber, back to you >> rick, thank you take a look at amc entertainment. er with talked about the willingness of people to go out and congregate when will they go back to a stadium or to a concert? and when will they go to a movie? amc was already levered at 5 .9 times the ebita.

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let's get to jim and stop trading. >> one thing for certain, the president is winning when it comes to oil companies the stocks are up. they're worries halliburton and slumber shea aren't going to show the turn. wow. it's worked and i think people have to recognize if you short these stocks you may be going against the tide which says these companies are going to make it. so kind of positive. i thought these companies might go they're not. not bad.

some positive. levi straus had a great water. nobody cared chip bergh is sensational. i can't wait to have him on. and goodly, i'm trying to find companies doing well i refuse to be down beat the numbers have peaked. i've been waiting for that it looks like they have. when the numbers peak, you can't be as negative it doesn't make sense to stay as negative >> yeah. indeed that's what the cdc director reaffirmed on the "today show. i don't know if you saw crossing the wire, amazon is going to hire another 75,000 on top of the 10 0,000 they've already done >> why not they've wipe toutd little retailers. they don't have time little retailers are working with big banks i know they should have gone with community banks but we went with who he thought was right. we were stupid i went to college in stupid.

>> winner take all here. >> yeah. what a shame >> we'll see you tonight mad money at 6:00 p.m. eastern time if you're just joining us, welcome to "squawk on the street." it will be a busy week as we get the first taste of q1 earnings the president tweeting about this opec plus oil deal that we got over the weekend we mentioned that amazon headline others from ford sara, and then this goldman note, david costen suggesting their near term downside target of 2000 is less likely now >> i thought that was surprising especially because we talked to him last week. he did not seem convinced the market bottomed. he said all the fast and large support and the peak in infections should keep us in bottom, if he said, we don't see a wave of second infections. you were laying out the bull and

bear case and the different sides of the argument. one important point that you have to mention is the extrord action the federal reserve has taken with the latest sort of baa zu ka fired in a series of bazookas the $2.3 billion to go into high yield and the market response we saw which was a tremendous recovery in the debt of the riskier companies. it really is -- if you hear the moniker don't fight the fed. we've heard that post financial crisis and recovery. if you're a believer in that, then that is probably one of the most bullish points on this whole market, wouldn't you say, david? >> yeah. i mean, the numbers are staggering of course, sometimes we need to step back, i think, and just think about them you know better than i where the fed's balance sheet is conceivably going to be. but obviously add to that as

well the $2.2 trillion already spent by the government conceivably with not an expectation it's going to get it back we're talking so many different trillions. where the fed balance sheet? put that inperspective >> past 5 trillion in record territory and adding trillions every single week as we announce -- as we get the new programs announced they're going to take on more trillions when it comes to the mainstream lending that they're lending from the u.s. treasury as far as policy support, the fed all in and not out of bullets i think is also another important factor psychologically for the markets that continue to be creative when it comes to ways to step in. the bears would say that there still is an enormous debt problem. companies still have $10 trillion worth of debt while they're fixing the kings and plumbing with making sure everything functions properly, they're not cleaning up the debt

load there could be a reckoning if we don't get things under control which is why the health news is so important the other point i would bring up to add to the conversation of the morning is people talk about testing, testing, testing, testing is going to be part of the solution here, whether it's the virus testing or the antibody testing to see whether we're immune which does not seem like they've figured out how accurately to do that. i think we should also talk about the treatments there are hundreds of u.s. companies now working putting their best and brightest and not just companies, places like the may o mayo clinic looking at treatments it's not just remdesivir other antibody treatments and anti-viral treatments. if you think about what's going to make you confident to go back to work, if you're not immune, and experts say only 20% to 30%

of people should be immune, you're not going to do it. what if you knew there was a treatment to keep you outside the icu? people should be talking that's why it's important that we're talking to small and large companies working on that which i think also could be part of the solution i spent a lot of the weekend reading about them >> in fact, i'm going to speak to one of the companies shortly, because they're moving into human trials on an oral anti-viral that could be taken immediately after you get tested and if, in fact, you're positive or even if you think you might be, and you're right, i think there are those who believe once you have ubiquitous testing that can be done quickly and effectively and accurately, coupled with an anti-viral regime that will make this more like the common cold, then you'll have a willingness of people to go back to normal activity but we still don't know when that's going to be, sara >> right well, the hope would be that it would be sooner than a vaccine

which would be the big game changer. we're hearing that's at least a year ago mark cuban saying you can't see a full stadium arena until there's a vaccine. let's stick with the morning action slight declines and givebacks for stocks after last week's blowout week j.p. asset management joins us, samantha assarello how do you look at everything happening on the support front, the economic front and determine if we've hit bottom? >> it comes back to the co-vid data i thought that was a good point about cures and all the other pieces not just the data peaking. i would say this i think it's very apparent that there's a pretty big disconnect between the economic outlook and then what the market was doing last week. that's not anything different than the last ten years. there's been pretty big dislocations between the economic or real side and what asset prices have been doing because yes, while a bunch of

the data is getting better with respect to the virus and yes we have fiscal stimulus and a fed that's effectively has everybody in the market has their back in terms of the facilities. i would say the economic picture is grim. it's not very clear how we put 15 or 20 or 25 million people back to work in a way when this is all said and done, and at the heart of it, the consumer is the heart of the economy even if markets are up because the direction has changed and for the positive, the delta, that's i guess good. but i would say it comes back to the economy healing and to me that's the consumer and the unemployment numbers >> what was baked in, would you say in terms of the 2020 economic growth and earnings growth we're about to go into earnings season flying blind. i'm not sure any of the in your opinions are going to matter but where is the market on the outlook? >> i would say right now the market is basically priced in a scenario which is earnings growth isn't that bad.

you've already seen earnings growth estimates they were negative 15% they've gone back up a little bit to negative 8% for the quarter. slight improvement i would say the market effectively is pricing in that in the second of the year we're back at it the economy is reopened. and those unemployment numbers are trending down. what the market is not pricing in is if we get a second wave, right? if we have to shut down again, it's also not pricing in if this weakness spreads into credit markets. yes, the fed is there. at the same time you mentioned leverage there's a lot of leverage, and everything right now is just on pause. but that debt hasn't gone away i think that second scenario which is a -- it's a lot more dire and very grim that's what's being ignored right now by the market, i would argue. >> i want to welcome ubs wealth management allie mccartney samantha was talking about how she doesn't seem convinced the market has seen bottom and the economic data is going to snap

back you have so many clients you've been doing calls and web c web casts. what have you been hearing as far as the level of concerns and where the market is going? >> sure. first, it's really lovely to see you. it feels a little bit normal look, i think that last week was a very significant and abrupt move up in the market. i think that we're all for a whole lot of personal and market reasons trying very hard to be optimistic and it all really does go back to you can't fight the fed we're on track to have maybe an $8 trillion balance sheet with the fed at the end of this year. that is two to three times where we get in the aftermath of the financial crisis so this is significant right? and we have seen that materialize in terms of the liquidity and the pricing within markets. but there is a long way to go. over this three-day weekend, as much as we heard positive on the virus front, we also heard a lot

of caution as it relates to the labor market and getting back up to full running. what i will tell you is when i talk to my clients who are in the economy in the supply chain, they say the same thing to me which is they're feeling cautiously optimistic. they are getting supplies where they need to be. their communications, everything they have set up technologically. but they -- >> we'll work on your shot you were freezing a bit. at home technology samantha, why don't you bring in energy to the conversation it's orchl a group that's positive leading the market today after another historic agreement what we think should be an agreement or at least a commitment from opec plus including the united states to put production how much of a lasting impact do you think that's going to make >> so for right here right now,

i thought it was good news that they were able to come to a deal i mean, this doesn't fix structural oversupply issues in the long run but right now if we can reduce volatility in that piece, i think that's supportive for the rest of the market and for the economy. in the u.s., just in oil and gas extraction, we employ about 100,000 people but i would argue there's a lot of spending that's done. it's not a long-run if i can it was a step in the right direction. it doesn't seem sustainable that saudi arabia and russia would continually cut their production, but they made agreements for two years out it looks like there could be a floor on the oil price that's a good thing right now. >> would you, then, take it a step further and recommend to your clients to be buying the energy stocks bauds they'ecausee been the hardest hit >> i know energy stocks have been moving a lot. the question is is energy about

you trap it's been cheap from a valuation perspective for a long time. where we would focus right now is a quality theme if there's going to be good quality companies with good quality balance sheets within energy, that's a yes in our view right now. but the oil price is just a little too volatile and there's downward pressure over the long run. i think oil companies and big energy companies need to rethink what they're doing are they going to be involved in green energy i would be bullish on the energy sector in the longer run, but that remains to be seen. >> huh samantha, thank you for calling in jpmorgan asset management. thank you to alli as well. we'll have her back on david. >> sara, thank you on the other side of this break, we'll be joined by wendy, the ceo of ridgeback bio therapeutics o f're moving into trialsor anral anti-viral to treat the

co-vid virus we're back at this

welcome back time for our etf spotlight we're looking at financials. look at the bank etf, kbe. down more than 30% j.b. morgan chase and citi group along with the overall market. we'll take a quick commercial

break. stay with us as we explore another company that's working on an anti-viral treatment to covid-19 we'll be right back.

welcome back while a vaccine to inoculate against covid-19 may be as much or more than a year away, there is hope that anti-virals to treat the virus will be available sooner for more on that story, let's bring in the ceo of ridgeback biotherapeutics in they are moving into human trials in the united kingdom for the oral anti-viral that would treat covid-19

wendy, what can you tell us in terms of your expectations here in treating what i know is going to be first, healthy patients in your sample? >> david, thank you for having me on the show i'm happy to give you an update on the potent oral anti-viral against many coronaviruses including the virus that causes covid-19 running through a recent timeline, we received update clearance a week ago to initiate human studies with 2801. on thursday, the mhra, the uk's fda, gave us the approval to go forward with the human studies the next day we screened 80 people and dosed our first person with the drug this morning. in the study we're looking to confirm -- and we're also looking to find the proper dose needed to achieve the blood levels that we know will kill the virus.

i must say that all of this is a result of the tremendous effort by the fda and the mhra who worked tirelessly and efficiently to put a multimonth process into -- >> i want to stop you there if i can. i think timing is what everybody is focussed on you're moving very quickly you're in trials now you've just begun. what are your expectations in terms of moving from what i know is a period where you're trying to understand the dosing to actually using this in people who have the virus >> to answer your question easily, we plan on doing the phase one work and confirming dose in the next few weeks and then moving to patients immediately. and this is being done with a team of people from ridgeback bioand people working around the clock seven days a week through easter, passover, good friday to

make this happen >> and the fda is also focussed on the protocol and watching these tests? working in conjunction with both the uk i know is where you're doing it but the fda has signed on >> the fda has been tremendous the commissioner has been helpful. we plan on initiating studies in the u.s. very shortly. >> why are you positive on why do you think you have a chance here >> so the data that we have to look to is our animal data which in many lethal coronaviruses in all that we know of, this drug is incredibly active it's an oral drug. that's really important. because if you really want to fight a virus, you have to fight it at home our goal is to keep people out of the hospitals, and out of the icu. the only way to do that is with an oral drug going to your doctor, you don't feel well and you get a five-day

treatment course, you stay home. we're hoping to turn this vicious virus into the common cold >> in order to do that, and everybody hopes you have success here, you also would need, id think to manufacture at scale. given the timing constraints, the need for this is as soon as possible, what are you doing in terms of ramping up manufacturing? >> so ridgeback has a history of manufacturing at risk, and when i say at risk, that means manufacturing in advance of efficacy data. we did that with our ebola antibody and will do that here >> there was money allocated toward this in the cares act is that available to you are you willing to undertake what i would assume is a costly ramp up at risk the whole way? >> we're grateful to the

president and congress for passing a cares act. this is a perfect effort of bipartisan effort to provide funding for diagnostics and treatments and vaccines. we've been on the phone with congress people and senators focussed on success. we submitted a full proposal to the federal government in advance of the cares act, but we have not heard anything back >> you haven't heard anything in terms of funding available for you to ramp up in anticipation of the drug showing success in trial? >> correct but the reality is that we will do whatever we need to do to support this drug and help with this virus we want to beat the virus. america wants to beat the virus. the world wants to beat the virus and we'll do our part. >> what about mutations? you hear about this as a possibility. that the virus will constantly be mutating. if your anti-viral shows some success, will we know it will be successful come the fall as well

if, in fact, it's available as an oral medication >> so the beauty of 2801 is it works across coronaviruses every coronavirus we've tested it on, it works. >> and finally, just back to the timeline you're hoping to move in to trials with people who actually have the virus when? >> our goal is to get into patients by may. >> by may. okay >> wendy, appreciate you taking time with us good luck, obviously we certainly are rooting for you. thank you. >> thank you so much, david. wendy -- >> let's get an update on the coronavirus. good morning >> good morning. good morning, everyone a sailor aboard the uss theodore roosevelt aircraft carrier died of coronavirus this marks the first death resulting from the outbreak aboard that ship 585 people, more than 10% of the

ship's crew tested positive for the virus. pelosi and schumer say they will not back down from their demands for added stimulus spending they want more money for hospitals and states to be added to the request for emergency funding for the small business loan program many spain police are handing out 10 million masks to people returning to work for the first time in two weeks. the focus is on factories and construction office workers are strongly encouraged to continue working from home. finally, boris johnson focusing on his recovery. not government work after getting out of the hospital yesterday. this is according to a spokesman. johnson thanked the national health service for saving his life no word on when johnson expects to get back to work. happy to hear he's out of the hospital and focusing on his recovery back to you. thank you.

keeping our eye on this selloff on wall street dow down about 450 still to come, meg whitman we'll take a quick commercial break. stay with us

welcome back to "squawk on the street." checking the markets after strong rally last week giving a little back this morning and we continue to move lower with the dow down about 450. the nasdaq down a percent. as far as where the pain is this morning, the hardest hit groups are the banks. down 3.25% utilities and -- the market investors and people on our air continue this debate of whether we've seen the bottom and

whether with the peak flattening we hope in the u.s. in terms of covid-19 and all of the policy support that could be a reason to buy the market and look toward the other side or if it's a bumpy road to recovery economically, company earnings and of people wanting to leave their houses you asked about the fed's balance sheet. we've surpassed $6 trillion. that's representative of just how many big guns the fed has pulled out during the course of this crisis in terms of supporting the bond market the funding market even the muni bond market they've intervened in. that's a curve that continues to steepen at an exponential rate and one that investors like to see for now happening which is just a sign of stimulous and how all in the fed is. >> and on the way up to as high as $8 trillion by the end of the year i think that's a widely held

potential view there sayre are, you point out those who are viewing things positively and then there are those concerned that it's hard to understand exactly how we all get back to it i obviously there are many regions of the country that are not suffering nearly as greatly as we are in the greater new york region. but nonetheless, there's still a question as to the willingness of people to go about doing tasks they once did. we don't know the answer there fully in terms of how willing people are going to be to entertain go back to entertainment of some kind go back to restaurants and sporting events. get on airplanes, go to conferences and conduct business regularly. it is still a large question as are so many of the others. i'm looking through my notes in terms of how many retailers will reopen how many people paid rent for april? what is the china supply chain going to look like how much does that have to

change so many different questions that you come across during the course of the day as people try to understand what life looks like when we do get to the other side, so to speak. >> absolutely. and the question is how quickly can we rebound if we start to open parts of the economy pieceme piecemeal. president trump saying may first is the target. what does that look like the consensus in the economics community is third quarter we'll start to see growth. but it's low the numbers have been moving lo lower. it will rebound in the second half of 2020 that's the big question mark as well as what earnings will look like and how far they'll be down for 2020 and whether the market is right to focus in a 10 % decline versus 30% as it was pointed out which tends to typically happen in a recession. there's so many unknowns we've never been in a situation

like this before >> meantime, in an effort to help flatten the curve, a well known grocer is instituting new hours and suggested times for shopping stew's is asking customers to come earlier in the day or later in the afternoon and asking all customers to wear face masks joining us once again is the president and ceo of stew leonard's. it's great to see you. good morning >> good morning. how are you today? >> we've been talking about trends in got traffic and how the world is going to look different in the next few months talk about the policy measures you've been instituting and to what degree are you seeing compliance from shoppers so far? >> well, it's completely changed shopping you were just talking about how it's going to go back to normalcy again people are coming in and buying twice as much as they used to buy. eggs have doubled. butter has doubled cream has doubled. you can definitely see that

people are home cook right now and they're shopping less frequently but with bigger shopping carts another thing that we've done, we have all our team members wearing masks every single day everybody working at stew leonard's does that. also wearing gloves and we do this super steep cleaning every day with a two hour blitz. as one of our adviser doctors told us, probably the cleanest place you can be right now is at stew leonard's >> the toed show has doug mcmillen on. he said in five days he sold enough toilet paper to supply every american they say buy what you need, and then they say we're having

shortages on pork. >> you're going to see certain suppliers have crunches. overall, i mean, look, the food is plentiful that we're getting. i've talked to our people growing fruit in california, corn in california i've talked to everybody around the country, egg farmers there's plenty of food in the chain. don't forget all the restaurants are closed now so all of the food that was going to restaurants is now coming in to the supermarkets. whether the supply chain is handling it right is another question we're getting direct right from the farmer we don't see any shortage even in pork right now. >> but you mention that some supply chains were vulnerable. is u.s. meat one of them what other specific can you tell us in terms of where you might be a little bit worried that if we start to see more closures of production facilities it could be a problem >> well, that's a big issue

right now. getting the product produced the only tightening we've seen is chicken right now people are buying a ton of chicken. as far as fish goes, it's coming in from the docks fine the meat we haven't seen any problem with the egg supply, eggs have crept up a little bit in price, but other than that we haven't raised any prices. we haven't changed any prices. so we're not seeing any crazy things going on in the market. but the supply chain is definitely a challenge >> grocery employees have become heros. they have to come to work every day and they're on the front lines and they have to feel safe in their jobs. what's morale like and what have you been doing for their employees to make sure that they feel comfortable doing this? >> that's a great question and you know, i've been in this business 50 years now. it's a family business and one of the things people are

really important to us one of the things we are just complimenting them all the time for the great job. we're protecting them as much as we can plenty of hand sanitizers, masks. we're teaching them about social distancing they do have to work together. they sit apart even in the cafeterias and we're giving them 2 an hour raise, and everybody, and we've taken care of the managers we're trying to keep our people motivated and look at the big picture here we are doing america a service right now by providing all this food, the fresh meat and fish, but also we can flatten the curve here at stew leonard's if we can educate our customers on social distancing. by the way, i did a little youtube video on safe shopping i took a shopping trip through stew leonard's and showed you the viewers today, how you can

shop safely when you come to a supermarket. >> how do you think behaviors will change for good after this and are you going to operate the store differently or the same way you are now even after the virus has passed >> you know, that is a great question i'll tell you one thing we're looking at now is i think the whole delivery aspect of food has changed. it used to be people wanted to come to the store. we'd have big demos. it was like a farmer's market in here we've had to stop all the demos. you put plexi glass up in front of the service areas and also right now people don't mind getting curb side pick up, as we call it cow side we have a big cow out there. or delivery at home. i think you're going to see this -- a big increase i think in home delivery and just picking groceries up at the food

store in the future. >> staew, last one what do you recommend people wipe down when they bring the groceries in the house how much human hand has touched a product in the prior three days usually >> well, we have a doctor for in long island who works at a major new york hospital on covid-19 patients advising us he told us when you get a package home, you bring something home, you don't have to, but wipe it down it's just good practice. the main thing we want to do is make sure our hands are clean and we don't touch our eyes, nose, or mouth when i come home at night, i literally take my clothes off even before i walk into the house and wash them right away they say you don't really have to, but it just makes me feel better and the other thing is i just wipe all my packages down that i bring in from the outside. and the most important thing,

you know, a lot of town and cities have banned plastic, and wipe down those reusable shopping bags. you know, when you come back in the zerstore, those are really d tips and people should not freak out about going freesh ri shopping i'm in the store every single day. i would have my mask on if i wasn't talking to you right now. but you can navigate your way through a grocery store. see? we're keeping everybody six feet away we limit only 50% of the customers to come in to the store at once. we're trying to do our part to flatten that curve >> stew, we appreciate it as always it's great talking to you. thank you very much. we'll see you again soon stew leonard junior. >> check out that youtube video. >> absolutely. >> how to safely shop for gre h

grocerie groceries. energy and oil are a bright spot brian sullivan joins us with more some context around what we saw this weekend >> well, what we saw was supposed to be a relatively easy decision we get together, have a virtual meeting, a couple hours everybody out. four days later opec plus which is 23 nations opec 13 plus another 10 finally got to a deal so much around this. the g-20 meeting on friday as well of course, that's the united states what's the actual number i think that's what everybody is trying to figure out i've done some math. i was on a call last night here's where i think we are with oil. okay, opec plus 9.8 million barrels a day cut for the next months 8 million and then 6 million next year. g-20 is murkier. i call them the bank, banc nations.

brazil, america, norway, canada. those countries, they don't have an opec. they don't have a national producer, mostly, brazil is the closest along with norway. it's not like the u.s. can say exxon, you cut this and you cut that we can't do that it's against the law what we're look ageing at is ane 3.7 million barrels based on natural well decline from them 9.7 plus 3.7, 13.4, maybe get to 14 million barrels a day unprecedented in modern times. but when demand is down 25, 35 million barrels a day, that's still really bad math, but i guess it slows the pain. >> hard to be in a place where production cut is half of what demand is taking on.

>> as we head to break here meg whitman is going to join us. remember the streaming app, quibi? it launc it launched last week. we'll get the latest numbers on the other side of the break. when we first opened our doors, it didn't take us long to realize ... ...we weren't in the car business. at lexus, we were in the people business. we needed to be helpful . . .

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welcome back last week the short form entertaining streaming company launched the product, quibi. we talked to meg whitman about it she joins us to fill in on how the week went. it's good to see you under these unusual circumstances. i thought of your company, of course, given it would have seemed that it was well-positioned to capture people who were on the move. and we are in an economy right now in which people are not on the move they're home did that hurt the launch at all or were you still pleasantly surprised? >> well, first, great to see you again. as you said, under these unusual circumstances. but it didn't hurt us at all we had 1.7 million down loads in the first week it exceeded our plans and

expectations and the app is very popular. i have have a to the say it's one of the most successful launches of a completely new brand and app. and interestingly, we did see that people are watching quibi 7:00 in the morning until 7:00 at night in the inbetween moments. we thought it would be out and about commuting, well it turns out people have inbetween moments at home. between zoom calls and taking care of the house. we don't think it hurt us. we're delighted by the launch. >> and what are your expectations from here imean, obviously you want to try to have this behavior in those using it you are offering it, i believe, at a discounted or free rate for some time. always a question as to how many people will stay in the service. do you have any sense for that or is it too early >> it's very early we decided when co-vid hit we

had to make a host of changes around the launch, but if you signed un, we'd give you 90 days free trial we thought it was the right thing to do during this unusual time that resulted in a great chart we were the number one entertainment app in the google play store and number two entertainment app in the app store. only behind tiktok, and so we'll see where we go from here. this cohort will know when they -- three months from now, we'll have indications early on. we know people are watching a lot of content anyone who starts a show 80% watch it through the entire first episode which is unprecedented. and they're also doing a lot of sharing. if they like the show, they'll share it with a friend we are seeing the beginnings of word of mouth. >> right now, you've been preparing --

>> lost you. >> i think we lost david go ahead >> it's sara eisen i'll jump in with a few of my own questions. i know you built this platform for mobile only. are you considering given the new realities, expanding it to ott or smart tvs as well >> so we thought about that up front, but we really wanted to get it right for mobile, but now the current situation we're talking to the engineering team about -- we had always planned to be able to cast to your tv, and so we're going to see if we can accelerate that in the engineering road map we'll eventually get there it was never a part of the launch if we'd known about co-vid, maybe it would have been >> yeah. no, it's changed a lot of realities for so many businesses meg, what about the advertising market do you have concerns there with warnings already out of so many of the social media giants and

others about the recession we are now in and how that's going to impact advertising? >> yeah. you know, we sold out our year one advertising to ten incredible category sponsors so they are super enthusiastic about advertising on quibi, you probably know our patented technology is called -- interestingly, they are making advertising using turnstile. they're excited about a new way to reach this audience while they're focussed on their mobile phone. listen, we're set until april of next year. obviously we'll start selling year two advertising in the fall we'll see what the environment is like. if we're on the path we're on and reach the audience the advertisers want, maybe we'll be at the top of the platforms they continue to advertise on and listen, you know, they're excited about our top shows. if you go to the app, you can

see trending which is our most viewed apps. ones that are rising and they're great shows like flipped and most dangerous game and murder house flip and punked and survive. lebron's james' documentary is one of my favorites. the advertisers appreciate the diversity. >> all day long we talk about what it's going to be like to reopen various businesses. a restaurant, factory, office space. what is the scenario for a production set what kind of precautions need to be taken how much of a crew can you get on and when does that start filling your backlog in terms of product? >> well, the good news for us is that we bank a lot of content before we launched because we weren't sure exactly how much we would want to pull forward or what. we were good about getting movies and chapters and our

unscripted and documentaries really banked. we have enough content of that kind of show through november of this year. so we're in good shape there and then our daily essentials which is daily news, sports, weather, e-sports, gaming, those are produced every day and you know how you're doing tt it's working and it's high quality and i think it's working really well. it does create challenges as you know the movie industry in general is shut down like every other business, no one is clear when the sets will open up. we hope soon and i know that all of the community in hollywood hopes that as well first priority is take care of people's health and make sure everyone is safe >> yeah. the other question from me, meg, we've seen a lot of analysts research on media companies in gent general and across product categories people are loading up on pantry items and news country

content. as this goes on and household budgets come under strain, they will stop pantry loading on alcohol and cable and content. how much do you worry about strain on subscriptions as we move into the late summer, let's say? >> sure. listen, i think the economic situation for many people in this country is quite challenging. so we have two choices, 4. $99 90 days free for the next three months people will decide what is necessary, what they enjoy they will certainly be belt tightening and you will see what happens. it's impossible to predict, but i think the fact that this is mobile only, very personalized and relatively inexpensive i think will stand us in good sted there's going to be tough roads ahead, i'm sure. >> how do you think about the question as to how many streaming services are too many?

how many are we going to want to pay for with so many new ones like yours coming on-line in. >> yeah. lots of streaming services long form content made for the television set we think we're different it's mobile only i suspect the consumer will pick one or two long-term services like the great brands out there and pick a music service for sure, and i think they'll pick quibi because there are three different use cases, three different kinds of content, three time availabilities. if you have an hour and a half you might want to sit back on your couch and watch tv but moving about your house or out and about you want to be on your mobile that's the niche we think we fill it's interesting, i don't think people make a choice between a music service and ott movie service. both fill a portion of their life and we think that will be a third one in that group.

>> finally, meg, there's been some reports about legal action demanding that the company be forced to stop using technology that you allegedly stole from this interactive video company can you talk about turn stile and what should investigators know >> turn style was invented at quibi by our own engineers and we got a patent. you know this, when a new company launches, these kinds of suits happen we believe it's meritless and we're going to fight it and we feel like we've got a really good case. what i can tell you, we have a patent and we invented this by ourselves. >> meg whitman, quibi, can't wait >> great thank you very much for having me it's great to see you all again. take care. >> we lost david on that one

quick programming note as we head to break, don't miss an exclusive with billionaire investor leon black, 4:00 p.m. eastern time he does not do broadcast interviews hardly ever, but we will talk to him about the markets and his philanthropic efforts to support health care thdodos n yk. e w wn 530 we'll be right back. being prepared and overcoming challenges. usaa has been standing with them for nearly a hundred years. and we'll be here to serve you for a hundred more. ♪ and we'll be here to serve you for a hundred more. when you take align, you have the support of a probiotic and the gastroenterologists who developed it. align naturally helps to soothe your occasional digestive upsets 24/7. so where you go the pro goes. go with align, the pros in digestive health.

just want to give you a quick check on shares of gilead, their experimental drug remedies ver over the weekend, an uncontrolled data group study in compassionate use for 53 patients all of which were hospitalized and seriously ill

with covid-19. the upshot was 68% of them showed improvement 18% were saying that was a better outcome than what was expected helping gilead stock and important for the overall market again, don't miss our rare and exclusive interview with leon black of apollo. quk le srtne"sawaly"tas xt at&t has connected us every day for over 100 years.

and we're here for you - especially now, doing everything possible to keep you connected. through the resilience of our network and people... we can keep learning, keep sharing, keep watching, and most of all, keep together. it's the job we've always done... it is the job we will always do. yeah, everything is runningis smoothly with the now platform. (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you.

chloroquine. welcome back stocks falling today with every s&p sector trading lower among the worst performers this morning, real estate, still outperformings the s&p on a year

to date basis. a few of the health care reits reading lower like well tower. there's weakness in shopping operators including simon property and vornado, down between 5 and 7% carl, over to you. >> thank you very much good morning, everybody. welcome to "squawk alley." i'm carl quintanilla with morgan brennan and dominic chu. we look at the market down about 520, worse day since april 1st a lot to watch the oil deal, of course, this goldman call out of david kostin, some downgrades of deere and caterpillar and now the president saying on twitter it is the white house that has the authority to open or close states, not the governors. that's going to get interesting. >> that is going to get interesting. that is increasingly the focus of not only the american public but of investors in the markets is how and when we're going to start to see the e