total authority. president trump flexing his federal muscles against the governors threatening to take the reopening of the u.s. economy into their own hands >> wall street bracing for earnings season and one expert said it could be twice as bad as 2008 >> deliver apps under fire for price gouging amid the pandemic. it is april 14, 2020 you are watching cnbc.

good morning and welcome to the show i'm dominic chu. we begin this morning with breaking news and a possible turn around tuesday after stocks pulled back following the historic rally futures pointing to some gains the dow would open up higher by 286. nasdaq higher by 106 points if these futures would hold at opening bell watching the dow futures, you can see it has been relatively steady but we've lost a little momentum we currently sit at the lows still the dow higher by some 42 odd appointments checking the bond market, we are seeing a little movement

2-year yields down let's now go worldwide matt is in singapore and julianna tatelbaum in london a couple of other markets in asia back on line as well, today including australia and new zealand. it was a particularly positive session on the backs of stronger than expected data out of china a look at both of shanghai and hong kong markets after much trade data eclipsed expectations exports falling by 6.6% much smaller than expected.

imports only down 0.9% against an expectation of a decline. this fuelled optimism about the recovery and helped out all of the asian markets. the japanese market was the standout up by only 3% at the close of trade we are watching shares of soft bank out of positive territory up by more than 5% despite saying late yesterday it expects to possess record breaking $13 billion on the back of losses out of the vision fund which has invested in the likes of uber and wework that is expected to lose $16.7 billion it didn't really weigh the stock because a lot expect further asset proposals to come out of soft bank. looking at australia up 2%

gold emerging and pushed some of the gold minors up above 12% back to you. now after a four-day weekend, julianna tatelbaum is standing by in london with the latest good morning >> good morning. as traders get back to work, that positive momentum matt described is lifting here in europe the majority of european markets are trading higher leaders have extended the lockdowns in place but are beginning to layout exit plans in terms of the different regions, the german market with the dax up by 1% the ftse 100 is negative and the sterling dollar is negative for u.s. exports.

we have health care at the top of the stoxx 600, astrazeneca gaining strongly after that pharma giant came out saying it will soon start a clinical trial on one of the leukemia drugs to see if it is effective on the immune response to covid-19. on the down side, with err seeing pressure on oil and gas stocks as well as travel and leisure. a positive start to trade as investors get back to work after the holiday weekend. >> thank you, to washington, d.c. now when president trump says he has, quote, total authority when it comes to lifting the u.s. lockdown taking on two u.s. governors one in the nor'easter and another out west looking to make the final calls on when to send americans back to work. tracie potts is with us.

what can you tell us about this brewing battle between states and president trump? >> it is a battle. these states insist that they have authority over when to reopen and how to reopen business in their states but president trump is insisting that's his job >> the president of the united states calls the shots >> president trump says he has the right to decide when to reopen business in every state >> when somebody is the president of the united states, the authority is total that's the way it has got to be. it is total. the governors know that. they will cooperate perfectly. watch. >> right now they are not seven governors have partnered to come up with their own plans on when to ease social distancing >> california is putting

together a plan for targeting intervention and easing. >> the government doesn't get opened up via twitter. it gets opened at the state level. we are going to make decisions based on science >> legal experts agree the president has no authority he's defending how he handled the coronavirus. millions are without a paycheck waiting for money from washington >> we expect over 80 million hard working americans will get the direct deposit by this wednesday. >> the next round of covid funding is in limbo. top democrats refusing to sign on unless money is set aside for hospitals, state and lock al governments, food stamps and women and minority businesses that have trouble getting traditional loans. >> the government says it has approved nearly a million of

those small business loans but the banks and lenders give out the money. it's unclear how much of that will go out. it could be june before we know how much of that is distributed. >> traci, as many of these states took their own initiative initially to put their own lockdown orders in effect, what is the president thinking as to why he thinks he has authority rather than the states in this scenario >> he didn't go into a legal argument as a lot of the legal scholars did it is interesting because the president was deliberately very hands off shutting things down saying that was up to the states we know that this is a president very focused on the economy. there have been people who thinks it possess he may get reelected because of the state

of the economy he has been very clear and he thinks he has the authority to make the decision to reopen. >> traci, there is an interesting dynamic developing right now, we know president trump and his top advisors want to find as quick a way as possible to reopen it seems there are state governors who want to do it even faster than what president trump wants to do. how exactly is that playing out as well in washington, d.c. circles? >> it is interesting and actually meshes with what we are hearing from the health experts. this is ulgt matly a health problem with business impacts. they are saying based on what this virus is doing, we may see different levels of reopening and relaxing of social distancing guidelines based on

the virus. governors are saying they want to follow the science. the scientists are saying they want to follow the science it would not be unusual to see some states reopen faster than others >> thank you very much the number of coronavirus cases has surpassed 1.9 million as some countries race to further contain the spread rahel has the headlines. >> good morning. the uk is reportedly set to announce it is extending the lockdown for three more weeks. this comes as french president said last night that he is lo country's lockdown until may 11. india pushing the lockdown to may 3. in china, the country is approving two human trials being developed by the wuhan institute of biological products under the

state-owned china national pharmaceutical group there are currently no vaccines or drugs but we know europe, china and u.s. are all trying to become the first to provide vaccine. wells fargo telling some clients to look elsewhere. in an email, the bank told customers because of the backlog it is facing, the program must be fully subscribed. before lifting the bank's 2018 error on asset caps so it could make more loans to small businesses >> thank you when we come back, check out what's happening with goldman with another outlook for the global economy as some say the crisis may be nearing its peek

increasing calls for dividend suspensions and what it means for investors. later on, one market watcher with the names to watch in a very busy hour ahead when cnbc tus tethis at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today.

welcome back to cnbc looking at the futures market. the dow is slated to open up by

about 300 and the s&p 500 up by 37 and nasdaq up by 120. a note from goldman suggesting major economies will shrink by 35%, almost four times more severe than the impact of the 2008 great financial crisis. from that note, goldman economist says though the number of new coronavirus cases appears to be slowing globally, that is probably a direct consequence of social distancing and could reverse quickly if people just went back to work. for more now, i'm joined by wedge advisors, i've got to say when you have calls like that about the idea that we could see a plunge in activity, you wonder

why markets are as optimistic as they are, what are they pricing in >> the markets are very optimistic right now they may be outrunning the fed a little bit and looking at a recovery that has not yet happened we are forgetting about the collateral damage on main street economic growth is on the margin banks lend when they are comfortable. people bid up. they return those multiples to what we saw a few months ago we don't have that right now we are going to have a different economic system of sorts where banks are going to require more collateral and not lend to these strip malls and on main street restaurants are not going to open as quickly and easily as they have been i think there is a drag that

hasn't been factored in. i'm not in the camp that this would be in a rosie recovery it will be sluggish than these forecasts are outlining. what does that mean? does that mean in the third or fourth quarter of 2020 in the first half of 2021? second half. what does that play out look like it is a low roll out it will be deliberate. it is industry by industry, it might even be region by region that would be another factor just because we are having slow downs in what were hot spots doesn't mean others will not flair up i'm concerned about what will happen with bank lending standards. i think this ppp loan program will boost for the community and regional banks to give a shot in

the arm. in an ongoing basis, they'll be struggling with the work outs and reevaluating the collateral in hundreds of thousands or the millions i don't think we'll understand how economic activity will slow or when banks slow when every bank application takes twice as long or longer and when they need higher clatd ral. >> the consensus that energy, construction, retail will be the worst earnings declines. tech and com services will hold up along with utilities. does that jive with your view overall? >> it does we are fans of the technology space right now.

communication services that's what we want to overweight and allocate. another mistake we are making is isolating coronavirus and the mark ets as if it's a one-to-one there is an energy drag that will slow economic growth in huge areas of this country it will negatively impact the high-yield market. what you outline there is a blueprint. we are optimistic on tech stocks we are investing capital on the growth side and on the economy for tomorrow when we look at drag, we see energy at the top of the list. that is a good call. >> mark, thank you very much always appreciate your thoughts. >> still on deck, how amazon is trying to return to normal when it comes to deliveries the good, the bad and the ugly

when it comes to corporate dividends and buy back suspensions. stay tuned you are watching cnbc >> announcer: today's big number, 151. that's how many s&p 500 components are actually higher the index is still down over 14% so far this year and... let's get started.

(music fades in) hey! -hi! ♪ ♪ ♪ ♪

but right now, the world needs all the good that we can do. to everyone working to keep america strong, thank you.

welcome back let's check some of the headlines outside the world of business nbc's phillip mena has more from new york >> good morning. tensions are riding high in east asia after north korea fired multiple missiles. this is the second high-profile weapons test amid stalled nuclear talks and the spread of coronavirus in the country the south is recovering here after being hit with tornadoes the violent weather began late sunday and moved up the coasts at least 20 were killed and many more left homeless power was knocked out in the region >> senator bernie sanders is endorsing former vice president joe biden.

sanders told biden we need you in the white house saying he will do all he can to make that happen back to you. as we haeead to break, watching shares of roku after the company estimated it added 3 million accounts since december. also expecting 49% increase in first quarter streaming hours adding the outlook due to the uncertainty. roku shares up 12% pre-market. we are back after this

stocks looking to mount a tuesday turn around as investors remain on edge about the coronavirus. several states launching new plans to reopen their economies after the outbreak but president trump arguing that he calls the shots. >> when somebody is the president of the united states, the authority is total that's the way it is going to be the governors know that. >> earnings season kicks into high gear as investors prepare to learn the impact of the covid-19 crisis. it's april 14, 2020. you are watching cnbc.

welcome back i'm dominic chu live at cnbc global headquarters kicking off with a possible turn around tuesday after stocks pulled back after last week's historic rally. the best week for the s&p 500 since 1974 futures pointing to some gains 335 implied opening for the dow. and s&p roughly 39 points and nasdaq higher by 125 points as well watching actions in dow futures, it has been positive but we've moved towards a lower end range. 305-point gains for the dow futures as they stand right now. the bond markets with slight

moves. two-year note yields slightly higher around 24 basis points or .24%. 10-year just below .76%. companies are facing growing calls to suspend dividends and buyback programs last week alone, 20 u.s. companies decreased or re-evaluated kicking off today, what does it mean for you and your in investments? joining me now, s&p senior analysts howard, thank you for joining us let's talk dividends, are they safe given all of the uncertainty in businesses?

>> no. they are not safe at all liquidity is the main issue now. we don't know the impact on the economy. companies need to take steps to maintain liquidity short run, they can deal through it, there is enough cash there in the higher caps however, if it continues, dividends are not as high as the company. the buy backs are on the back burner now liquidity is now king. >> that must mean. there is a certain large segment of the population that looks to company investing because of the regular dividend paymentsthat actually increase over time. when it comes to who will cut dividends, what type of industry and companies are the weakest in determining those payments >> what we are seeing are the

companies currently impacted the most those that are cut off in sales. the usual ones within consumer groups, travel related, hotels, these are the ones hurting the most we've seen about 61 companies actually do cuts and suspensions on more travel than cuts those being hit need to do it right away it is not a step by step motion. on the broader market, we expect to see cuts but not as many suspensions because most companies can live through the shorter term the talk of opening up over the summer is a positive item which companies feel they can live through the dividend payments for this quarter at least at this point if it goes on longer, there is a

situation. let's talk about whether it does go on longer there are companies with a long track record of paying or increasing dividends over time is there a common at among them or are there better places to look for you can use something like ar is owe craft cats that are 25 years in a row it is part of their culture to return money to share holders. typically, they do it at a set point in time. certain month based on the board meetings with now being a strong time to do it as earnings will start to come out. that means typically reduce the amount that they are increasing.

they give a small increase but they give them during good and bad years. 2008, 2009 where they saw 17% of the overall market the companies continue to pay although they reduce the amount that they actually do increase each year, so you are getting someone. as long as that continues. >> thank you for talking about that, we appreciate it going worldwide. matt taylor in singapore and julianna tatelbaum in london where they are back to work after a long holiday weekend for easter matt taylor, we'll start with you. >> thank you a strong session across the

asian pacific markets, despite the negative lead in from wall street in the prior session. we did see a number of markets returning from the easter break. it was all about the chinese data spurring on a lot of the gains. yes, markets were higher but the shanghai market closing higher amid expecting exports and imports falling 6.6% against the expectation of a decline. the chinese may avoid the hard

landing and we get the gdp up from last year the yen around the 107 level and japanese market up with trade. softbank up despite saying it will report a full-year loss on its vision fund. worth $100 billion with investments in uber and wework expected to lose billions over the year back to you. to err will i trade with julianna tatelbaum from london with the latest there. good morning >> good morning. after the long easter holiday break, investors are back to work and european markets are trading higher overall this comes as leaders have extended their lockdowns there are talks around laying out exit plans

investors looking to the future there. the dax is outperforming this morning. german markets getting a strong bid trading the negative territory which is against the uk exporters sector wise, we have health care right at the top within the health care, astrazeneca is trading sharply higher that company came out and said they will soon start a clinical trial to assess the potential of a leukemia drug to treat covid-19 share holders there with good news travel and eisure, the worst performing in the stoxx 600 after a very strong performance last week.

a solid structure trade. >> thank you live in london with the latest there. back on wall street. earnings season gets under way jpmorgan schas and wells fargo goldman sach, bank of america, citigroup, morgan stanley, et cetera will follow later on this week banks follow recent challenges with interest rates near zero percent and the coronavirus sechbding the u.s. economy into a free fall. they expect earnings to drop 23% on the quarter and tumbling near 40% over that time period. how bad will it be for these banks? >> the key title to credit is

unemployment the second is what is going on with business. we have a lot of small and medium enterprises we've wiped out maybe a half to a third of services i've doubled provisions we've see. the unemployment numbers will be worse. >> when you say provisions, what you are saying is that these banks will have to reserve or a lot for bigger credit losses down the line because of the credit risk associated with businesses not being able to pay or consumers borrowing and not being able to pay? so what besides that will be the biggest driving factor behind bank performance in coming months >> after unemployment, i think

you have to look at interest rates, they are not necessarily helping overall earnings for banks. the yield on assets have been falling as to the cost of funds. there is a variety of factors coming into play, they'll have a load as they deal with all of this and have to scale up the ability to scale up customers. in this case, mortgages they'll have to double head count to have to deal with managing assets in forbearance or default or who knows >> there is a large universe of different types of banks out there. big money centers. those more posed to construction and lending. where are we looking with regard to where the real outperformers

could be and the real underperformers in this environment? >> i think the banks with the larger consumer exposure like city come to mind. large banks like bank of america will have broad issues because they have broad portfolios you look at goldman sach, they mostly trade their numbers are down they are struggling to find new business because nobody is doing anything in the bond market, mortgage sector, those are the only things that are liquid these days overall, consumer names will be under more scrutiny than those with institutional focus

>> let's preview those markets some of the wisdom is market volatility is for these guys is that the case this time around >> it could be in theory look at jpmorgan they've made money on all these rallies. the same for morgan stanley. big trading house but with the risk comes the risk and the reward with this volatility, it is very difficult to make a decision about direction. the most successful traders don't do that. they trade the spreads that's what i'm looking for. especially morgan stanley. they really got beaten up the end of march i'm looking to see what is going

on with morgan stanley >> first on the cnbc interview, wells fargo chief to discuss earnings taking place with earnings times. several food delivery companies facing accusations of exploiting the coronavirus for profit resuming allowing third party sellers to ship items and priorities shipment of goods due to the covid-19 outbreak back after this.

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. welcome back the death toll in the u.s. continues to rise now at more than 23,000 as the number of cases moves close tor to 600,000 overall. >> u.s. airlines approaching a decision to accept the terms of an aid package the package requires each airlines to repay 33% of the funds it receives. the government would also receive warrants which could be turned into stock. groupon will layoff or

furlough 2,800 employees the closure of restaurants, bars, event venues and spazs has significantly impacted >> and class-action lawsuit accusing delivery services of exploiting their dominance but i am posing processing fees on restaurants. the suit also says those fees ultimately trickling down to customers with higher menu prices >> sticking with coronavirus and the response, governors of washington state, california and oregon are working on a joint plan to reopen the economy for business once the coronavirus has subsided following a similar pack of the governors of six northeastern states including

new york, new jersey and connecticut. but president trump is pushing back saying he gets the final say on when states actually reopen for business. contessa brewer joins us now what prompted this new coalition of governors >> take the eastern governors, they think they have a better shot of success working on this together you mentioned that power struggle the president tweeting yesterday that this decision does not belong to the governors that it is his decision. the governors pushing back yesterday saying, look, the president didn't take responsibility for shutting down the states >> tell me what are the roles? what is my responsibility? what is the federal responsibility you want to shift responsibilities, fine i'm open to that

explain to me what i do, what they do, who does purchasing, who pays, who does testing >> this testing is a big sticking point here. the governor says he does not have capacity to do this wide-spread testing that will be necessary to reopen the economy and the money is running out the national association of governors lobbied for $500 billion in the next relief bill. these states preside over 47 million americans, roughly 17% of gdp up and down the i 95 corridor, it is important to coordinate transportation you've got people living in one state, working in another state. they have to reopen schools together if they've got kids at home, they can't get parents back to work it is important each of these

states will reopen a working group. with a governor and health official to go at attacking these. >> this will be debated among legal circles right you no the states themselves were the ones that imposed their own shelter in place restrictions. there has been no national lockdown issued or invocation from the government saying the nation needs to shelter in place. so how does the reopening happen if not by states when president trump hasn't yet put a national lockdown into play >> you are asking the very question governor cuomo said yesterday. he said, look, are you going to look at the amount of transportation workers, the

school lunches to feed those school children, how are you going to coordinate cross border transportation issues. i heard from a county executive, which has more coronavirus cases even than california there the executive says, look, economies work regionally. it is best for us to decide regionally which industries should be back up and running and which are ready to go back there is a lot of people who think they know best about when we go back. >> all right states versus federal rights on deck, markets look to bounce back as investors engineer up for earnings season. laying out names to watch amid that coming season you can always watch or listen bcs ckn st mcnbc app cn iba iju aoment. derek, seems like your team is operating just fine remotely.

yeah, everything is running 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.

welcome back to the show a live shot of new york city, specifically times square in manhattan where things are very, very quiet taking a look at futures market, we are going to see green at the opening bell if these futures hold the dow opening up roughly 320 points, the s&p higher by 37 and nasdaq by 122 points all about earnings this weekend. jpmorgan, wells fargo, bank of america, citigroup, johnson and johnson are the big names in charge there joining me now, chief investment officer. this idea now that this earnings season is some what important takes on a whole new meaning but how much clarity are you

expecting out of all of these reports? >> good morning. it will be interesting to watch for sure it is one of the more pivotal earnings seasons we know economies are in session. more important is how the balance sheets look and access to credit lines and pointing to how businesses will fair in the next three to six months where these large companies will provide and looking at how solvent these will be.

people only focus on balance sheets in times like this when there is a crisis. you mention large-cap companies. companies you think will weather the storm better than others >> we do, we've been overweight technology really the energy in consumer for some time. the megacap companies like amazon, google, microsoft, visa, costco and big retail. these are companies we've owned many years and continue to own for the long term. some is of those will see a boost to the sales and earnings. like amazon, i don't know about you but i'm siege more packages show up on my doorstep since i've been working from home. we think amazon will see a nice boost in volume. they've been hiring quite a bit. microsoft and others announced a

large bump in cloud usage and in the teams chat app there are businesses that have done very well costco has done well we've seen things grow these are businesses with longer term tale winds in addition to the short-term bumps than other the year term. >> let's talk a little about energy one of the best performers this month. what is the outlook for energy >> energy will be the function of a commodity price if oil goes up, most of the energy stocks should follow. those oil stocks will likely move in that direction as well you have to get the commodity right. there are certain companies in the oil patch that will perform better than others it is difficult to own an energy

company if the commodity moves with you we don't really have an edge there, we don't do much investing in energy, for that reason >> thank you we appreciate it cnbc's market coverage picks up after this break

good morning, stocks are set to surge at the open giving back what they gave back yesterday from last week's big rally new york governor cuomo is striking a tone of cautious optimism saying mitigation efforts are working, the worst is open. positive news out of europe as well a look at the first quarter since coronavirus came our

shorts jpmorgan, wells fargo and more "squawk box" starts now. >> good morning. i'm becky quick along with joe kernen and andrew ross sorkin. as joe mentioned, we are higher this morning the dow is indicated up 320. it was down 328 points yesterday. so giving back everything it gave up yesterday. s&p now looks like it is indicated up about 37 points after losing 28 points yesterday. the nasdaq indicated up about 123 after losing 58 points yesterday. we'll continue to watch this getting into earnings season that will be really important today. i don't know if anybody is expecting much out of the earnings or forward looking guidance, we'll get commentary from companies today let's look