growth stocks are the ones obviously holding up better. amazon potential of hitting a new high. you do have to think that if you do get some light at the end of the tunnel that some of the stocks can do better from a value perspective. see you tomorrow that does it for us. all negative kelly evans picks up our coverage right now thank you, scott welcome to "the exchange." i'm kelly evans. it is a down day the first time in three days we have seen that and flipping the week and starting a different kind of note and remember earnings season, what remains of it, however that will go, it does get under way tomorrow. right now like i said 2% decline for the blue chips in the nasdaq down .8% the s&p stuck in the middle down about 1.9% oil is helping a little bit. it's managed to pull off a slightly bullish day after opec

and applies agreed to a historic production cut but still seeing caution across the energy patch and wti's only holding on to just less than a 2% gain right now. in the last hour, we did have some positive comments of new york governor cuomo saying i believe the worst is over if we're smart about coronavirus and said hospitalizations are down substantial that andal of it, so much more of the market action and kick it off with robert pisani. >> good to see you off the lows but we were higher earlier. now we are off of that the key point here is a 24% move off of the lows recently and that's a move, 24% here. laggards today, some airlines down today tranports are weak retailers are generally on the weak side. all these had great moves up last week. we're going into earnings

season hearing from dom in a minute on that jpmorgan starts tomorrow this is typical to down going into earnings season and most of the big names, 30% off their highs just 5 or 6 weeks ago. industrials are weak across the board. i think the main catalyst the downgrade of caterpillar over at boeing hurting deere. netflix highest level since 2018 back the you. >> i'm glad you mentioned deere. more on that later on. thanks. well, if you are thinking this earnings season isn't going to matter think again. we are about to learn stuff to tell us about which companies continue to weather the coronavirus and which might not. dom chu is here with more for us dom? >> the expectations probably tell you lot we don't know what will happen but it will be bad and how bad will it be take a look at the expectations right now for which sectors hit the worst in this upcoming earnings season.

according to data, if every earnings report comes in as expected, the energy sector will show a 50-plus percent decline over the same time last year industrials hit by the coronavirus and shutdowns, economic furloughing, everything else that's happening. down over 31% and consumer discretionary we know unless you're amazon or somebody with a great online omnichannel supply chain, it's down 31% those are the hardest hit sectors by coronavirus and remember the numbers don't factor a full earnings report with that particular coronavirus. meanwhile, the ones holding up the best, bob mentioned net flick. communication services, forecasted to show a gain of 7%. technology, we're using more video conferencing, virtual offices. a gain there and utilities still using electricity, natural gas, water, those are up about 2% so you'll see a theme developing, kelly. the companies and industrys that are going to be the most impacted and immune from the

coronavirus. back over to you. >> i hope the power's still on back in the home front right now, dom. >> right. >> yeah. you guys, too, i'm sure. thanks. as we begin this week, the s&p 500 is down only 19% from the all-time high in early february and up 23% from the lows in late march does the market believe the worst is over? is it right? niall ferguson this weekend warning don't bet on a quick global resurrection. for more i'm joined by eric kanutson and randall eley. great to have you both here. eric, let me start with you. i mean, are you in the cautious camp about this recovery what do you think the market's pricing in right now >> yeah. we are our mantra is safety first at this point it is good that markets have recovered to a certain extent, 25% rally we have seen off the bottom, the return of liquidity to credit markets with significant action by the fed and by now evidence of fiscal

stimulus but equities are pretty richly valued when you consider what we're going do see with earnings your reporter just said we know it will be bad we need to see equity markets pivot from underwriting the path of the infection and stimulus to actually underwriting earnings and gdp growth thursday you had an absolutely horrible jobless claims number and markets screamed fed stimulus we think that we need to see evidence of investors paying attention to the true economics, earnings, and that brings us to a view that the s&p 500 is range bound this year. i mean, perhaps front lows 2800 on the high side. >> okay. >> in this environment we are trimming equities on the rallies and looking to reinvest in safer areas. >> interesting so trimming your equity position, maybe moving into some of the investment grade credits. randall, your point of view is different. right? you seem to be all in on the stock market. >> well, while i would never say

all in but we are believers that an investor should be a long-term. because over history, although this pandemic is certainly new, none of us in our lifetime have seen something like this, in history many different things happened to market and i mean even history of our lifetime 1987 also in this country the flu pandemic in 1987 -- i'm sorry 1918 as a result, we have lessons that we can learn. in a long run, kelly, i think the key facts are this people have to eat they have to support themselves. and in order to do that, we're going to use the products and services of big companies and at edgar lomax we always look for companies profitable for a long time, making lots of money and they have banked that money and put it into good liquid investments, they are built to

last. >> okay. >> at times like this, buying at lower price, we don't flee the market we pull our patience out and get ready for future profits which are going to come. >> randall, let me ask you, two of the companies you own right now are exxonmobil and jpmorgan. how important are dividends to you and for jpmorgan exxon said it will use the balance sheet to support the dividend if needed. >> that's right and that's the key thing of a strong balance sheet, in other words, having cash i think dividends are important but not everything both of the companies in two of the sectors that perform the worst year to date and part of the reason to select them. our portfolio has a lot more names but these are companies with money already and they have been profitable and whatever pressures they're going through i expect them to continue to be profitable players in the future. >> eric, before we go, you mentioned some of the credits that you like. how con tin jetblue is that on

the federal reserve support? do you expect that support to last for quite a while >> well, it is a key element of it but the federal reserve is supporting that market that's putting liquidity in the market. from a risk/return standpoint given where spreads are, we think it's a sharp play right now in risky assets and not that risky. given that fed support i'd like to reiterate randall's comment about high quality u.s. stocks that is where we are seeing best opportunity to the extent we are biassing towards equities that is, towards the high quality larger company names and u.s. equities we are also saying to emphasize one of randall's key points, take that long-term view if you believe that you will buy equities then you can take advantage of the volatility in here and get paid a lot for expressing the view that you'd buy equities at lower levels with index options, put options on the s&p 500 and capturing a

very attractive premium an a lot of wisdom there. >> very interesting. quickly, randall, go ahead. >> what was that now >> did you want to make a final comment? >> oh no i want to agree with what he said this is a time to pick up good, quality equities or securities period and the big thing is to remember patience i also wish to take this time to wish everyone the best, kelly. all of your viewers. in getting through this pandemic this is a tough time for all of us. >> absolutely. >> the business of america will go on and in the long run patient investors will be repaid well. >> very well put thank you both today we appreciate it >> thank you and coming up, a conversation on "the halftime report" with some bold statements. >> are you arguing to let airlines, for example, fail? >> yes

>> why i mean, how does that make sense in the broader scheme of the economy? >> so should we let some of the companies go bankrupt? we'll tell you what chamath had to say and results on a potential drug to treat coronavirus. we have the details and if you're looking to get a new mortgage any time, the standards are tougher than ever. stay with us every financial plan needs a cfp® professional --

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they're trading off all about 4% to 8% for united as the industry is coming to terms with the strings attached to the government bailout phil lebeau is here with the very latest for us phil >> kelly, frankly, they're not happy about it they thought the 25 billion set aside in payroll cash grants would be that, grants that did not have to be repaid. 30% of the money offered comes as a low-interest loan so as you take a look at the airline stocks and all down between 5% an %, 70% of the cash offered would not have to be repaid. other 30%, low-interest loan of treasury, no layoffs before september 30th which all of the carriers have committed to stock warrants to the treasury equal to about 3% of the value of whatever the cash grant value is when you take a look at the mayor airline stocks right now, keep in mind that fitch last

week cut the credit ratings on all of the major airlines in the united states. and why did they do that they're worried of them taking on more debt it is not uncommon to see them take out another billion, ball and a half or 2 billion or more, eater in loans or in credit lines over last 3 weeks and here's the reason why. passenger levels, they have been pretty much bottomed out arnt 90,000 to 100,000 passengers a day. in fact, yesterday was the lowest day ever according to the tsa in terms of passengers and crew members who were screened at u.s. airports way down there on the bottom 90,000 just over 90,000 were screened we think that's probably close to the bottom there, kelly, though hard to tell at this point. bottom line, look for the airlines either later today or tomorrow to say, okay, here's our decision coming to the grants. >> wow okay phil, we appreciate it thank you, sir. the airline industry is one group of companies that sven chur capitalist chamath said

should not be bailed out by the government listen. >> on main street today, people are getting wiped out. right now, rich ceos are not boards with horrible governance are not. hedge funds are not. people are it's happening today to individual americans and what we have done is disproportionately prop up and protect, you know, poor performing ceos, companies and boards and you have to wash these people out. >> for more i'm joined by henry bloodett and james pethakoukis henry, i think you find merit in chamath's comments explain. >> first of all, hello, thank you so much. kelly, great to be here and thanks for watching, everybody i think he phrased it in a very aggressive way and raised people's hack ls but i think philosophically and i say this

as an investor to take it in the teeth if the airline equities go to zero, i don't think the government should be in the business of protecting shareholders i do think in this case it is in all of our interest to continue to have our airlines operate and the government can help out with that and help out employees but they don't need to protect the shareholders that's the key it is a core proposal us of capitalism and investing is risky. >> yeah. >> so that's my belief. >> before i bring in jimmy, one thing, chamath specifically saying put them in bankruptcy and he said and i quote, put the airlines into bankruptcy, you know, no one will be fired the industry doesn't want you to know they can go through a chapter 11 he said the employees would own up owning more and the employees won't get wiped out. if the airlines go into bankruptcy, do you believe that the employees would not be wiped out by that? >> if you threw all of the airlines into bankruptcy

together right now with all of the pressure on banks and so forth, would you have folks who could lend the money to have the airlines keep operating? i think it might be challenging so i think you can manage it the government can put money into these companies with a -- whatever restructuring terms and i think the best way to do it is what the government is doing, lend money but take equity warrants or equity ownership that severely dillutes the current shareholders this is a disclosed risk it's in the prospectus saying a pandemic could severely hurt the business everybody knew this was a possibility. made the decision to invest anyway i don't think equity shareholders deserve protest and i don't think the government to let the companies suddenly go bankrupt altogether. >> let me -- jimmy, let me bring you in with a line from the journal this weekend this was a letter from donald

budroe, businesses are destroyed today unilaterally by government command saying this is not creation proceeding destruction but destruction proceeding creation. >> it is destruction destruction. you can blame government and had government said nothing about shutdowns most people won't get on planes, not going to restaurants, not going to go to sporting events. governments i think following what the people's instincts were chamath is making a broader point and not just airline that is he thinks you have all the companies which seem to bein some financial difficulty because they made a mistake in the good times they didn't have the mother of all rainy day funds for a complete economic collapse you know listen that sounds to me like an andrew melon 1929 we need to liquidate stocks, real estate, purge the rottenness of the system and who didn't like the dividends and

the stock buybacks were not calling for a massive rainy day fund they wanted that money invested and paid to workers. they with respect saying it needed to be kept under the mattress so really can't have it both ways and this is really a once in a century thing and my concern is keeping individuals whole, businesses whole and pushing money out the door as fast as possible. >> jimmy, what would it look like chamath's core point is let the airlines file for bankruptcy if you allow that, the investors wiped out and employees don't and he said they end up running more is he right about that or would the bankruptcy take a high toll on the employees, too? >> seeing a restructuring, there are job losses where are the people going to go to get jobs? why where? nobody's hiring. it seems to me that -- also, now his statement talking about it's

okay what the fed is doing okay right now. we don't want to have a lot of uncertainty. calling for not just the airlines an making a broader point of zombie companies everywhere, that he would inject a tremendous amount of additional uncertainty into the u.s. economy certainly you would have people losing jobs. more drops in the stock market that also contributed to the financial crisis we don't need that we need the singular goal of economic policy is to get through this and not try to draw distinctions of good or bad companies, moral hazard. it is not 2009 we shall not fight the last war. >> henry >> well, the only thing i would say to that is some companies did make decisions in the last five to ten years that left them more exposed than other companies and you can talk about dividends or buybacks, tens of billions of dollars going the door and say, come on, they shouldn't have been required to protect against this

and that's true. but if they had kept the cash in the company they would be in a much, much stronger position and effectively if we just go in and give away free money with no strings attached whatsoever, is you're punishing the companies that don't need because they won't take as much, kept it, the stocks did worse in the good times and so forth and where it's complicated and again to jimmy's point i don't think you should suddenly force the companies into bankruptcy. i think the government should help it's great that we have airlines we want to keep them in place. but i don't think the equity shareholders should be protected. and i say that as an equity shareholder. >> jimmy >> good to have airlines keep airlines. 100% agreement i don't believe in free money either. >> you summed that up pretty quickly. anyway, guys, thank you both we appreciate it good discussion today. james, henry. >> thank you. >> thank you so much. coming up, how apple and google turning a cell phone into

a coronavirus tracker. we'll tell you what they're up to. getting the green to participate in the small business lending program and preparing for weeks and say they'll be faster and more efficient. we'll explain where the upgrades came from today and reminer to watch or listen to us live on the go on the cnbc app we're back in two. line. i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

welcome back let's get some of the biggest calls of the day we begin with fedex upgraded by bank of america to buy with $140 price target up at 123 today. up about 1%. the firm thinks the recent move by amazon to pause the shipping with amazon is good for fedex. also bullish on the integration of the express and ground networks to reduce costs and ample liquidity is a huge issue. not a huge rebound but a bullish

call for them today. a double upgrade to dunk in with a $67 price target the analyst said the 100% franchise business model is most attractive in the sector and see limited risk of mass closures. and dunkin they say could benefit from digital shares and down 2.5% today. going the other way is a terms of the upgrade/downgrade story, deere. was downgraded by goldman sachs to neutral the reasoning that's hurting the sector goldman sees pressure on the earnings greater than prior recessions because of the global broad based nature of the downturn and given the magnitude of the shock, the recovery is likely to be low for the consumers. shares down 5.5% nearly today to just under $138. well, let's get the latest in the coronavirus pandemic now.

rahel solomon has the headlines this hour. >> let's start in new york where the death toll topped 10,000 however, governor cuomo also says that daily deaths fell below 700 first time in a week and that other key figures are leveling off cuomo says he looks forward to easing restrictions, will be making an announcement later with governors in the region about a reopening plan and also warns it will not be a quick process. >> it's not going to be we flick a switch and everybody comes out of the house and gets in their car and waves and hugs each other and the economy all starts up i would love to say that's going to happen. it's not going to happen that way. >> meantime, president trump has tweeted he will make the call on when to reopen the nation's economy, not state governors trump says he'll make a decision shortly. as always, for more coronavirus coverage, head to cnbc.com

back to you. >> thank you so much. we got new data on covid-19 treatment dug remdesivir meg? >> hi, kelly people were very much anticipating the results and what we got was information on patients who had used remdesivir on compassionate use, very sick patients who were not encolluded in:call trials gill yard with results from 53 of these patients showing in a study published in new england journal of medicine 68% of them showed clinical improvement. the level of oxygen support they needed 30 poirnatients patients includh intubation and then 7 came off and 7 patients died so, of course, it is not a silver billet and limitations to the data, specifically that it's compassionate use, not a control group to compare results

against. dr. jonathan grein lead author of the study saying there's no proven treatment for covid-19. we cannot draw definitive conclusions from these data but the group of patients who received remdesivir are hopeful and that word hopeful is one people are using to describe the results and seeing clinical trial data later this month and in may and you're already hearing people talking about potential accelerated approval or emergency use authorization next month if those data look good so we're going to be highly anticipating those, kelly. back over to you. >> speaking of the treatments, one thing i follow is discussion of how the ventilators work for patients when governor cuomo said 20% come off and now doctors in new york some cases had to turn to other methods because of the ventilator shortage. do we know about whether kibld of that oxygen only treatment

will end up being at least no more harmful than the terrible experience of a ventilator, especially given the shortages of medicines you described >> yeah. well, there's a shortage of ventilator medicines and then concerns of shortages of ventilators themselves and several reports out about whether ventilators -- how helpful they are, just oxygen support as you mentioned could be helpful i haven't seen great data on that and want to dig in to be able to give you a good information and people examining the tools as we see the shortages. >> for sure. something to watch i also know we had that sort of speaking of the testing front, a stumbling block in terms of the machines that abbott sent to help with tests. what do we know about that >> yeah. so we have been seeing some reports that states and their state public health labs frustrate ds because they don't have the abbott tests to use and trying to kind of dig into

the story, i talked with the company and they have shipped more than 500,000 of the rapid tests to their customers around the country. there also was a centralized purchase from the hhs and those they distributed to the states and some of the reports that, you know, "the wall street journal report"ed on over the weekend, may be that the cdc and hhs only allocated maybe 100 tests for these state public health labs to run of the tests themselves, abbott says this is the lab instrument test, a high throughput test and shipped a million to u.s. customers and hearing sort of a disconnect between the available supply of tests and them actually being able to be run and for everybody to get one so that's a problem across the country and not just with the abbott tests but tests in general it appears. >> for sure. trying to ramp it up so quickly but even to have the shortage of test kits is frustrating

meg, thank you we appreciate it >> thanks. ahead, the outlook for the economy may be negative but the outlook for the homebuilders isn't. plus we'll check on how the small business lending program is going with the ceo of jersey mike's and he's going mtitoenon how they're trying to help the community. stay with us

welcome back to "the exchange." about half past the hour let's check in on the markets. dow down just under 500 points same for the s&p and nasdaq. nasdaq only down about two thirds of 1% but in terms of the sectors all 11 lower in the s&p and led by real estate, financials and

industrials. the weakest there with declines of 3% to 5%. three names are positive walmart, intel and chevron caterpillar is biggest loser after a downgrade this morning and another rough day for the cruise stocks. royal caribbean and norwegian both down 12% to 14% on the flip side, there are a couple of 52-week highs today. dollar general, regeneron, new mont mining and netflix and continues its run this year and shares up 22% since january 1. check in on oil, as well barely higher today, not much of a rally after the deal between saudis and russia in the books and in fact now up less than 1%. brian sullivan just spoke with saudi's oil minister brian? >> yeah. thank you very much, kelly we did a 20-minute or so interview with the saudi energy minister that was a welcomed treat. long ranging interview

tried to get it up if we can on cnbc.com for you and the point he was hammering at the beginning is the deal for a cut is larger than the market believes it is obviously the headline number that everybody's talking about is opec plus after four days of intense negotiations cut 9.7 million barrels a die but the highness' view, no, higher than that because, remember, production was elevated at the beginning of april so he told us that the cut was actually closer to 12.5 million barrels a day. listen to a clip. >> the number is way much bigger it is 12.5 million barrels my calculation is as follows 9.7 is, too. we are doing 1.3 to bring us back to the 8.5. this is as a result of our high production and throughput.

the uae is also coming by about a million and i believe kuwait made also another announcement of coming down by about half a million more than what they were doing. >> so, kelly, saying there's a lot of math there. 12.5 million from opec plus, from the highest pruroduction numbers and added later on in the interview thought the g20 with the united states, of course, bank nations, brazil, america, canada could do more than 3.7 they're semi-promising. he thought we could get to 18 million or 19 million barrels a day when all is said and done. >> wow the president continues to say he thinks it is more like 20 what do you think that's based on if we are at 12.5 from the highs according to saudi but do all eyes turn to texas now? to the american producers? >> they do and i asked him about the president's tweets by the way in the interview, i

said can we get to 20? he didn't want to correct or not correct president trump but he said, listen, if we go 12.5 million for opec plus, 3.7 million for g20, that i do a few million more through natural declines, maybe the texas railroad quota, they could, he is not saying we are getting to 20 million but made the case with me that we could get to 19 plus, assuming everybody went big. he also wanted to send a message to u.s. shale and hopefully we'll get more of the interview up very soon that this is not an attack on u.s. shale very adamant ofthis. this is not an attack on u.s. shale and unfortunate timing of a disagreement of saudi and russia march 6th when they split and the price war began and not looking for the collapse of the u.s. shale market and made the points strongly with me in the interview, as well hopefully doing more later on today and trying to get it up on

cnbc.com later on today. there's the interview with bin salmon. >> and the other side of this, real quickly, russia on the wire saying a total global oil output, add it in, why isn't oil up more today? >> well, first off, if we get to 20 million, it is go eng to surprise a lot of people might see oil move we are nowhere near there. this doesn't take place until may 1st and people have dire predictions of demanlds how long is this going to last oil had a move on the initial move a couple of days ago. i think there's the rally. could we get to 20 million maybe but, hey, kelly, if production is down by 35 million, it's still a pretty dire situation but it's not nothing. like i said, trying to get more interview up later on through the day. >> great stuff thank you. we really appreciate it.

>> sure. now square and paypal among the nonbank tech focused companies approved by the company to participate as lenders in the emergency loan program. kate rooney is here with more. is this a big deal for their businesses >> yeah. that's what we're hearing. after weeks of lobbying, square, paypal and intuit approved to distribute the loans through the paycheck protection program and paypal taking applications square and intuit plan to roll out programs this week i spoke to the head of square capital this morning is telling me they're taking applications to immediately send to sba and not sitting on the paperwork the argument for being encolluded is they specialize in lending to coffee shops and restaurants which have been hit especially hard by the covid crisis they can facilitate loans as small as $500 that banks typically won't service and sba guidance said certain steps have to be done manually and takes away some of that speed

advantage. kelly? >> all right kate rooney with the latest, we appreciate it. thank you very much. let's dive deeper into the loan process for small businesses and how some are trying to give back during this time of need joining me is peter campgrow, founder of jersey mike's get to see you i had a number 16 regular on white every day of the third trimester last time around thank you very much. you got me through have you applied for emergency loans? >> our time line started march 29th sunday night we had everybody in the country all the owners on. 475 of them. and we went through the entire process with a couple of experts and we learned the process of filling out the paperwork. so we now have it in and done and now awaiting for the sba number which some have received and most haven't there's 30 million small businesses and there's a big

backlog, of course, but we're optimistic that we'll hear something this week towards the end. >> what's the process been like in terms of what the bank is telling you? we are hearing differences, who your bank is, what they say the rules are and if you have so many different franchisees i imagine you're dealing with different banks. >> it helps if you have an existing bank relationship, of course there's a '08 and '09 they established stringent rules of checking out the business further but if you have an existing bank relationship it move it is process along quicker. so we worked through a couple of finance companies, a lot of owners have gone through local banks so so far it's moving and when i first heard about it i myself couldn't believe it to get eight weeks of payroll, look back over the year, gross payroll. paid $20 an hour, times 10 hours, this's $200 gross and that you get eight weeks of payroll to help the business

survive and hopefully it will be put out in the next week or two or three it's going to be an unbelievable thing the government is doing. >> one more question of the business to ask about what else you are doing but, you know, what is revenue like what is that trend how's it been in terms of keeping employees or furlough any? give us the color of the effect coronavirus had. >> our shops with close to 2,000, 47 states, small rosters. we have like 12 or 15 people on each shift on each store and fortunate that we have not had to let anybody go. so we're staying open for takeout, delivery. third party delivery and online ordering so keeping the people at the curb or at the door to pick up. so we're down but not as much as most incredible we have sustained i think because of the giving in the community that we have been doing and it's unbelievable the customers have really rallied and supported us. >> right many -- i would say that you're doing your part for the

community just by keeping people employed and trying to be entrepreneurial to meet the challenge. what are you doing to give back? >> so now all the stores, the mission statement as a company is giving, making a difference in someone's life and been doing that since the beginning and incredible we fed the freedom ship in new york harbor. the ship in l.a. the hoboken police in new jersey showed up as a tribute it's on the facebook and instagram. incredible just showed up with sirens and police cars because the owner there was giving for the last four weeks to local first responders and just incredible so across the country, to the hospital staff, nurses, feeding them nonstop we've given out over, you know, to put a number on it over 2 million subs so far and we expect again not to stop because the need is so great. >> no. i know that they appreciate it even like i said a lot of every day customers appreciate you

doing what you can to stay open. thank you, sir. >> thank you. >> thanks for joining me today the ceo of jersey mike's. apple an google are teaming up on a bold plan to track the coronavirus. how would it work? what are the privacy implications we'll dig into that. it is about to get harder to get a mortgage what's going on with the mortgage market and what it means for you after this

google and apple, two of tech's biggest rivals are teaming up to help with coronavirus contact tracing. this is an unprecedented partnership but also one that raises some concerns deirdre bosa has the details >> so, kelly, that is key. far contract tracing to work, it needs widespread adoption and nearly everyone in america, even the world, use an apple or a google operating system so that means that there is no app to download it is here right in the phone.

now, the method uses bluetooth technology to track if the phones within a certain distance of each other with beacons, now, of course, there is a privacy part to this, kelly. a tracking system run by big tech would have been unthinkable here in the united states just a few weeks ago so apple and google trying to get ahead of some of those concerns for one, the system would be decentralized. users would have to opt in and voluntarily report infections and personal information not collected. i spoke to one privacy expert, he notes that this service reveals far less than user information than the typical mapping dating or restaurant review apps that most americans do use regularity. critics point to the enormous reach that these two companies have already to be able to use such a system and use it so effectively and say that this

could only be the start, a slippery slope where they collect more data for other uses in the future. >> this is one of the trickiest national conversations i think we have between how to reopen for coronavirus, needing this partnership and not having it be too intrusive. let's put that aside and ask you about the news from amazon today that the company's to start to resume shipping of nonessential items. what do we know? >> we know that they're allowing more nonessential items into fulfillment centers and more likely to get them and a signal that amazon is becoming more like amazon. this is the company, remember, that pioneered two-day, within-day shipping and absolutely inundated by the number of requests, the demand that it's been seeing from customers and a shipping essential goods, this is the start of getting back to normal and to do so amazon has been hiring by the thousands. hiring about 100 thousand dollars workers over the last month and this morning

announcing that it's looking to hire another 75,000 workers to get these deliveries going again. back to you. >> interesting again, maybe another sign of a step towards normalization thanks. up ahead, mortgage loans are getting harder to come by as lenders tig lenders tighten standards. what does that mean for the housing industry speaking of housing, wall street is bullish on the homebuilders kb home down 14% today ghnce tell you why confide mit be on the upswing. stay with us were in jeopardy.e career as i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

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welcome back it's a big week for home builder data with confidence and housing due out the sales have stalled

dramatically some are saying the builders could be a bright spot in the economy. diana is here with the details from washington. >> reporter: the coronavirus is hitting the home builders. 96% of builders polled by the national association of home builders said it was hurting i home buyer traffic more than three quarters cited problem for the willingness of workers to report to projects. analysts point to outstanding housing fundamentals through february and said if the outbreak of kcovid infection is contained soon, it might help in this recession we think a rapid reacceleration could help provide a much needed booster shot for the economy in the rocess lenar said friday while sales were slowing, its balance sheet

is strong and said we are taking all appropriate steps to reduce construction costs >> we'll talk about that in a moment what's with the big declines today? >> reporter: that's the broader market we're seeing the itb over the last five days up over 6%. while it's falling with the rest of the market today, it has been pretty strong over the last week that's because mortgage rates are falling back down. the builders are seeing some demand though a lot less traffic. some are experimenting with drive through closings they are really work to make that process easier. >> thanks. we appreciate it

applying for a mortgage will be tougher jpmorgan raising borrowing standards. you now need a credit store of 700 and 20% down how will this impact the whole industry joining me is andy andy, it's good to see you begun. white are they tightenin standards so much? >> it's pretty usual behavior. any time do you see an increase in risk or uncertainty in the market, the first thing that tends to take place is they step back on the risk they are taking on >> won't they make more money if they put out more mortgages? >> typically yes i think what you see in that announcement is they are shifting the resources from the purchase side over to the refinance side they are dealing with duelli du risks. they have a purchase risk. on the refi, they are

refinancing out and losing the revenu revenues they are killing two birds with one stone. >> for the rest of the housing market it's terrible news. i wonder if someone will step up in that void can they step up now >> that's exactly right. the large banks havebeen very risk averse ever since the financial crisis if you look back before covid. the average credit store was in the 750 range. maybe that 700 credit score sounds worse than it really is they haven't been participating in that lower end of the market in recent years. >> finally, do you think that -- for the housing market in general, ha we're seeing will put a break on even the small amount of activity or have less of an overall effect >> looking at the housing market over the near term, i think it's point to take a bifocal view, maybe not as much.

we have seen a decline in foot traffic in folks homes. you're seeing a decline in listings out there already this may have a marginal impact on near term housing fundamentals if do you look over the long run, potentially, i think maybe what you're seeing from some of these companies is they are trying to get a better feel for what we see in nemployment in come weeks what the risks are downturn and they can adjust. >> you have some alarming numbers where you talk about how many delinquencies we could see on mortgages if we get an unemployment rate at 2%,delinqd. what effect will that have across the industry. they are all pretty well in line we're seeing in neighborhood of

1.5 to 2 million homeowners that may have become delinquent or in need of those forbearance plans. we're seeing that level falling within a couple of weeks i think everybody is waiting to see where unemployment goes from here and where the forbearance and risk numbers go. >> and see if that worsens the problem of mortgages existing for people who need them andy, it's good to see you thanks wee appreciate the info. our special breaking news coverage will continue after this break tyler mathison will join me for power lunch. we'll talk former pimpo chief economists he sounds optimistic derek, seems like your team is operating just fine remotely.

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good afternoon welcome back to our breaking news coverage of the markets in turmoil. we continue for a new week of "power lunch." stocks are selling off to start this post-easter week following last week's historic ral plip the dow is down about 400 points, give or take as investors brace for earnings season there are 33 s&p 500 companies that will report their profits or their losses. ford out with warning this morning ahead of its report, those shares are