underwriting and reducing jumbo loan reduction for the 30-year fixed the rate has swung widely day to day but last week two basis points higher than a week before. the five-year arm 37 basis points higher. lenders can't depend on the loans they're currently working on actually closing because of all the social distancing which messes with appraisals and lawyers and the final paperwork. that also factors in to their rates. it's really been quite the ride. carl >> yeah. hard to close if you can't be there in person. fascinating numbers on mort xwaj gauges good tuesday morning carl quintanilla with morgan brennan and dominic chu from separate locations today session high up 650 on the dow as we got to 24 k once again nasdaq going up for four days would be the longest win streak of the year, all-time high for amazon, morgan, and then banks did have a moment but they've

gone red as we've gotten more guidance on net interest income on the conference calls. >> yeah. absolutely the banks are in focus as this first day of earning season in earnest really kicks off one of the names i'm actually focused on that reported this morning is fastenal, distributors, that's what they make and they provide those distributors to quite a variety of industrial -- excuse me industries and end markets, early indicator of the state of the industrial economy, you're seeing those shares pop today in part because at a time where so many companies are cutting their dividends they actually raised their dividend and they noted that they're seeing product -- produced significant shifts in business mix and that march sales of the fastener products declined 10% on a daily basis as industrial activity slowed but their safety business grew 31% as they were sourcing and delivering critical ppe supplies to the marketplace why do i bring this up this is essentially what we're

seeing and i have a feeling it's going to be a bigger, broader theme not only through earnings season but the economic data in coming weeks and that is essentially this bye furcation in the economy right now in terms of where the spending is happening, consumer spending, also business spending and government spending. similar situation for the cast freight index. we got those latest numbers for march out recently as well and i want to pull up a chart that's shown what's happened to shipment volumes, weak before the pandemic wreaked havoc on the global economy march slid back down, shipment volumes dropped 9% year on year. improved sequentially for the second straight month off of the january bottom, however forecasting that april is going to be much worse, likely going to rival early 2009 and again what you're seeing, clear divide between winners and losers you've got consumer staples, e-commerce, home improvement, groceries, growing right now in

terms of shipments from a freight perspective, restaurant, auto and mall retail falling to practically zero volume. this is going to be a trend that we continue to talk about including later on in this hour when we have the founder of fresh direct on. some of the companies where we are seeing growth the ability to keep pace with that demand has been an issue. dom? >> absolutely, morgan. let's stay on the industrial theme and get out to phil lebeau for breaking numbers out of boeing coming to us live from chicago. what can you tell us about boeing's numbers this time around >> they're not good, dom, and not surprising given the fact that we are one year past the grounding of the 737 max that means for some of these contracts for some airlines and leasing companies this is when they're able to say, we're going to cancel that order or convert that order as you take a look at shares of boeing the reason it's moving lower because here are the number for march and for the first quarter. march orders negative 119

commercial airplanes march cancellations including 175, we knew about 75 from avalon, another 75 from other customers, so a total of 150 max cancellations. q1 orders when you take those cancellations with accounting adjustments, negative 307 commercial airplanes the backlog for the max stands at 4,079 planes. that's down 13 percent compared to the end of the first quarter last year. they also announced deliveries, commercial airplane deliveries, 20 in the month of march, 50 for all of q1. >> thank you for the latest numbers on boeing and the order situation there. let's bring in j.j. kinnahan of td ameritrade and keith from suntrust this idea we've spoken so much about the notion that we're going to see a terrible earnings season yet, morgan brings up an interesting point that fastenal comes out with pretty decent

numbers, a dividend hike industrials are supposed to be one of the worst performers this earnings season. does it mean the green shoots are in play for a possible leg higher in markets if one of the most beaten up sectors is getting some relief? >> i think if you think about the market we went from 2300 to 2800 and when we were down 2300 we told our clients it was a good time to rebalance and increase equities because the risk/reward was positive i think we have to think about where we've come to. the 2800 level i think is going to start seeing some overhead resistance around 2900 to 3,000 on this market and move into a trading range where you see dispersions start to come down when the market was at the lows everything was moving in unison and what we're starting to see and you mentioned today we're starting to see companies move on their own fundamentals. that's the transition that we're going to start to see in this earnings season and from our perspective we wouldn't be as aggressive up here

we would be more aggressive on pullbacks. we don't think we're going back down to the lows if you haven't pulled back that's where we would be more aggressive. >> the life comes at you fast, j.j., it was about a week or so ago, perhaps, that the commentary broadly based on wall street was that we were going to retest the lows again, this was going to be a situation where you could see a leg lower in the markets and within the past couple days, goldman sachs, other strategists on wall street say you know what, the bottoms are in so can we trust what's happening right now? is the green on the screen today something you can really get behind >> well, i think, you know, dominic, as long as you have a vix just below 40 right now, starting to see some of the volatility expectations sink a little bit, i think the important thing that we're seeing right now in terms of is the bottom in, is that we are forming trading ranges for the first time also, tom nick, you're hearing people talk

about support and resistance numbers, something we couldn't do a week ago because the range were so great. i don't know for sure if the bottom is in, so to speak, but we sure are setting a nice base right now and it would take really bad news for us to fall significantly from here. i will say i think the major the economy is going to be when we start getting back to work because, as you know, it's going to take a while for the economy to sort of rev back up i always talk about the middle seat test. when are people, not that anybody ever wanted a middle seat on a plane anyways but when are people going to be comfortable enough to take a middle seat on a plane in terms of everything. as we start to rev up those are the things you have to see us get to that's a few months down the road our initial -- is our initial rev up going to be enough to please sort of the expectations that we have built in to these p/e ratios >> yeah. definitely key questions certainly something the market seems to be focused on in

general, how this economy is going to open up and how consumers are going to react to it keith, from an investor standpoint, on the one hand you've got low interest rates right now, on the other hand you have something like six dozen companies so far that have either cut or suspended their dividends right now. a lot of focus in this earning season not on the actual eps numbers or second quarter forecast themselves, but on the state and the health of balance sheets and companies abilities to weather this pandemic, at least in the near term do dividends still matter to investors? what are the prior tos as you look through the market for opportunities? >> i think the real question is 2020 is going to be a writeoff year for earnings, we know that. the question is, who are the survivors, where are earnings impaired and rebound quicker and from our perspective, we've had this kickback rally and a lot of what we call the junk rally,

normal, we think where you see more clarity and want to be positioned is more towards things like technology, which is still leadership in the market, lagged a little bit the last few weeks, everyone is doing more things from home as we know with the call today, an then with health care, think about how many billions are coming into that industry another day as another leader of the market going back to the initial conversation you will see more differentiation, not just an all or nothing market and you want to go into some areas where there's visibility and investors will focus on places where balance sheets are stronger. >> all right i mean the balance sheet thing is a key focus in certain asset classes, and perhaps j.j. this for you, we're seeing some notable convergence and divergences in the market. since the lows we saw about a week or two ago we've seen a sharp rally not just in the stock market but in the investment grade corporate bond market, also in treasuries, also in gold prices, all of those things tell you different particular thesis. what exactly do we believe in

this market right now? is it the risks assets that should be performing better or the idea we're going back towards things like treasuries, gold and maybe investment grade corporate bonds? >> well, dom, i think a lot goes towards a doctor i'-- i'll use d tepid. people want to be in the market but everybody is nervous -- nobody is putting all chips on the table. you bring up an important point, if you look at where like our clients were buying things at the worst end of this, it was those with really good balance sheets, the exxons, microsofts, boeing was one, disney they've had big balance sheets and cash on hand to survive it as we started to rally a little bit more, one of the interesting things to me is, are clients dipping their toes more in chip makers, et cetera, starting to go outside the big balance sheets, going towards obviously technology but even a little bit

outside what you would consider the main frame to cisco's oracles, old school if you will, companies that have been through it before. i think that's the really interesting thing. with that, though, are they still keeping money buying fixed income yes. it tells me that although people think we are on our way back, they're very nervous to just say hey, bottom's in, i know we're going up from here i think people are sensible enough to realize that at this level, you still are going to have volatility, so with that, some of the down moves as we have some more, which allow people to get in again at prices if they missed it the first time there's going to be pent up demand where you may see a little bit of the buy the dip mentality if we go back down >> interesting so j.j. just mentioned chips keith, the fact that we're seeing an all-time high for amazon in trading today, netflix multiyear high as well, from a tech perspective or a big tech

perspective is the bank trade alive and well is that an attractive area for investors right now? >> we would say it is. leadership, you mentioned some of the individual stocks they're where you're going to see growth, folks still using their products so that continues. also from a broader marketer perspective, something j.j. brought up, we have seen it even with this market rally one thing that will prevent too far of a bu pullback, people are positioned lightly. we saw the fund manager survey come out, lowest equity position since 2009, hedge fund exposure is relatively low. a lot of people waiting for that test i think if you get more of a modest pullback folks will jump in pretty quickly. >> all right j.j. over at td ameritrade, and keith, the chief market strategist, carl things over to you. >> dom, between that boeing news, the turnaround in the banks, obviously oil weak owl morning, we have seen the dow's

gains cut not quite in half but we're still up a few hundred points on tuesday. don't go anywhere. acing our wor, what do you see? we see a billion more people breathing free. we see access to fresh food being the global norm, not the exception. we see homes staying cooler, without the planet getting warmer. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.

the s&p is up 51 points, 2812 is the level there. meantime the milk supply chain has soured thanks to the coronavirus. jane wells explains from riverdale, california. jane >> hi, morgan. yeah, you know, it's a really

difficult problem here it's happening as the dairy industry is finally recovering after years of consolidation and bankruptcy the problem is half of the industry's revenues come from food service and restaurants and that milk market evaporated. you can't tell the cows that last week on your average day in american 4 million gallons of milk was dumped including 600,000 gallons in southern california where i am outside of fresno at roland valley farms he said the price he's getting has fallen about 30% in a month, but it's because he's having to switch from butter powder to mozzarella and everybody needs liquid milk to the grocery stores. >> when you are planning on a yearly, two, three, five-year plan it's difficult to switch from what you currently make and put it into something completely different. >> now to switch over to grocery stores also includes different

processing, different packaging. meantime the government assistance programs only allow 1% milk. the industry is asking all milk allowed in for now >> let's remove all the restrictions that limit choice for kur consumers. during this time let's make sure they have access to food. >> now, here is the unique thing about the dairy industry, guys, even though they're dumping milk they're still getting paid farmers are in co-ops that pull their profits to stabilize business, but the more milk they have to dump the lower the payments will have to be back to you. >> jane, no one gives us a view of how the farm economy has to react to some of these things as well as you do fascinating, jane. thank you very much. as a stay-at-home orders continue across the country, many have turned to grocery store delivery service, facing

days to week as the services are overrun by new customers joining us to discuss is jason ackerman, founder and former ceo of fresh direct. jason, thank you for joining us. good to talk to you. >> good to be here >> what has volume been like, do you think, for the industry overall just overs the past couple months? >> it's been pretty crazy talking to all the grocers 30% was buying on-line prior to the covid issue and today it's -- in dining food is going to home creating a surge in grocery and online it's pretty off the charts >> in terms of wait times, what is extreme right now if someone is trying to get an order? is next wednesday still reasonable >> yeah. most people that i -- >> when does the window start to tighten again? >> most people i hear it can take upwards of a week getting a

slot because there's not enough people and delivery trucks and capacity in the industry to serve the national demand so there's even waiting lists i've heard. it's very challenging to get a time slot today. that's really a big issue for customers. >> yeah. it is very challenging, jason. i live in westchester county north of new york city and you can't even get on a wait list or find a time slot i've been trying but i think it kind of begs the question or raises the question, we have this huge surge in current demand and certainly companies like fresh direct, some of the other online grocers, e-commerce companies, looking to meet that demand and build out infrastructure as quickly as possible, how much will that new increased business continue to extend and be sustainable beyond this pandemic and thus what does that mean in terms of how companies are balancing those near-term investments versus the long-term investments?

>> yeah. that's the million dollar question that people are asking. i think broadly if you speak to most executives across the world and what's the expectation is that it will the surveys that i've seen as we've gone from 13 is% to 30% of trial of customers, 25% of customers said they still plan on using it post the event i anticipate that there will be a sustained long-term increase in the theshhold to customers buying online. people will go back to restaurants and more of a calming at the grocery level, but i think online this is going to be a big accelerant for the industry going forward and it's really forcing most grocers today to kind of look at their infrastructure and it's a great opportunity to test new ways to serve customers even though super challenging today there are big opportunities to pivot the way they serve customers in the past >> so jason, it's dominic here, one of the things, i mean first of all i don't use a service because for me, i've been the

one in our household who gets sent out to the grocery stores and i go out for the supply runs, i control everything about what i can do. i bring wipes and wipe down everything i touch, i bring it home, i try to clean it as best as i can having somebody else do that for you brings a lot of variables into the equation about how clean your food is, or how safe it is and everything else. how do you address concerns about food delivery for people who feel as though hey, maybe i don't want somebody else touching my food and delivering it to my door i would rather do it myself and make sure? >> look, it is a tradeoff between having it delivered. you do not have to go too that store and expose yourself to the general population versus the one person that comes in there is that. most companies are really facing the same challenge for dealing with increase in demand, but also worker safety a lot of concern amongst the employee base for the threat that they're personally understand as the demand is so stressful on them. but, you know, policies of not

walking foot home, delivering at the doorstep, wearing masks and wearing gloves, are the right things i know at our current company we have, you know, pick-up at the store and hand it to the customers and they seem to really enjoy that process, than walking into the store itself. i think it's probably a safer process. >> yeah. jason, you mentioned, i'm curious what you're seeing in terms of trend within cannabis right now. a lot of reports there's been increase demand for those types of products as well. how has that been playing out? >> yeah. it's actually very similar to grocery in that regard there's been a spike in demand for cannabis we serve the medal market and with the stress at home and so forth there's been a large increase in the overall demand for the sector and in addition, people don't really want to walk into stores so we're seeing a very large increase in pick-up at the store and for home delivery and a large percentage of orders are through the

digital channels versus the store itself this is is a permanent acceleration for the digital cannabis. >> jason, in terms of grocery, what's going to be the key once economic activity starts to normalize? people start going back to the store with less fear what's going to be the key for these delivery services to maintain the customers they've gotten on this say temporary basis? >> yeah. you know, the big thing with online grocery has been the ability to serve customers with a great service and today's environment with a lot of stock not getting a complete order, late deliveries, it's a challenging environment. the test is their ability to manages the demand but also give a good service people might feel the need to use it today because of safety, but it has to be a great experience. that's going to be the real balance on how these companies are going to be focused on the balance of demand and satisfying customers. long term people will have choices to go back to the store and it's going to be those that serve customers well during this

time that are going to do the best post-covid. >> yeah. i think every consumer understand the dynamic you're describing thanks, good to talk to you, jason ackerman, founder and former ceo of fresh direct. >> thank you we're going to take a quick look at what's going on with markets right now as we head out to break, take a look at the dow industrials up 375 points. the s&p up 55. the nasdaq up about 222. for the high today, the dow industrials were up just about 650 points we'll keep an eye on those markets as they lose steam here. a quick mmcicoeral break stay with us on cnbc

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

. welcome back after being closed for the long holiday weekend european markets are set to close in a moment seema? >> losing a bit of steam here. european markets ending mixed as some is european governments are starting to modify their lockdown policies. spain is permit something nonessential work such as construction to resume, but vowing to retighten restrictions if there's another spike in cases. hard hit italy has begun opening some shops but the worst impacted areas like the lombardy region remain on firm lockdown austria has begun opening some smaller shops and hopes to ease further in may poland and czech republic loosened restrictions, schools reopening in denmark tomorrow. france and the uk extending

restrictions to may. in germany more than 600,000 companies have is applied for the country's short-term work scheme that includes reduced work hours and direct payments to companies lufthansa telling cnbc that the vast majority of its german employees are taking part and its goal is to avoid layoffs but the uncertainty of the situation means they're unsure whether the short term measures will be sufficient back to you. >> all right thank you very much. to rahel solomon and get a coronavirus update. >> good morning. the world health organization says we are certainly not at the peak of the virus. since 90% of global cases are coming from europe and the u.s. alone. w.h.o. officials also warning that imported cases are the biggest threat to china at this time joining forces to develop a covid-19 vaccine the partnership will accelerate the timeline for development by combining technologies and resources. the companies plan to start clinical trials this year and hope to make the vaccine available by the end of next

year amazon firing two employees who were outspoken critics of the company's treatment of warehouse employees during the pandemic so amazon says that the employees were terminated for repeatedly violating internal policies amazon's communications policy does prohibit employees from speaking about business practices without approval from management and walmart designating order pick-up hours at select location for first responders, customers over 60, disabled shoppers and those considered high risk by the cdc and as always get more coronavirus coverage on our website cnbc.com morgan, over to you. >> thank you for the latest. we're going to take a quick commercial break and getting a check on markets before we do, though, major averages are in the green, but off the highs of the morning. the dow up 349 points, 1.5%. the s&p is up 1.9% and the nasdaq is the outperformerup

7% stay with us less let's get o

boorstin who has a special guest. hey, julia. >> carl, good morning to you that's right i'm joined now by joe, he is the president of live nation, the ticketing live events concert giant. joe, thanks so much for talking to us this morning >> thank you, julia. good morning. >> joe, this was supposed to be the biggest year ever for concerts and live events now it is entirely shut down when do you expect the concert and live event business to start up again >> yeah. that is the question that everybody asks, and unfortunately, as you listen to everybody, that's actually the question that can't be and right now. it can't be answered because so much of it depends on what everybody does over the coming month, the effectiveness of our continued social distancing, how

we develop the testing and what we put in place for tracing and treatment, all of that will determine over the next several months when it is we can start to have concerts again we look at this on two time horizons one is a year from now, 15 months from now, as we have the vaccine in place, we're highly confident that concerts will be 2021, 2022 will be bigger than ever the artists want to perform, the fans want to attend the shows. we're very comfortable and confident that as we get through this, we'll be able to get back to the normal of being able to go to theshows thanks to the vaccine and treatment. over the next year, when are the shows going to happen, where are they going to happen we're a global company and operate in 40 countries and dealing not just with the situation in the u.s. but throughout europe and asia every market is going to be different in terms of the pace that it opens. our view is we listen to the

fact and we list to the scientists, what they tell us certainly right now, people feel good that this is starting to hits the apex because that means we have a lot ways to go with the continued activities around the social distancing and the watching our behavior to make sure that we can get to a point where it is safe to be gathering and we need to take more short-term efforts in order to get to that over the next several monthsp we're planning and we'll go through the next handful of months certainly without concerts and done some things in terms of showing off our balance sheet that gives us confidence we can go through as long as we these to over the coming year without doing concerts and be able to continue and come out of it >> but joe, you know, i want to talk more about consumer behavior on the other end. in terms of your own finances, yesterday you secured an additional up to $150 million in financing, but let's say concerts don't resume for 18

months until there's a vaccine do you have enough resources to survive until then for a full 18 months >> yes we have a billion dollars of cash, we have roughly a billion dollars of untapped debt, another $2 billion of liquidity that we can access, so about $4 billion in total we can access we have a run rate of just over $2 billion a year, couple hundred million dollars a month. that's before the cost cutting initiatives we've put in place we announced cost cutting initiatives aimed at taking out about $500 million over the remainder of this year so between that liquidity, those cost reduction efforts, what we're doing to conserve cash now, we absolutely believe that we can get through to a point even if we do no concerts overs the next six months, nine months, going into next year, that we'll be able to get through to that point. >> and joe, how do you address concerns that live nation could

breach its debt to earnings ratio on loans worth $1.85 billion? is that a concern? >> we just went through an effort and the banks understand as we talked through with them q2 and q3 of this year are not representative of our business and so they've been eliminated from our covenant analysis, so we've gotten clarity on that we feel comfortable that for the next six months, no shows at all happen, we will not have any covenant issues. over a longer term than that, we'll worry about it when it gets to that point i think the general behavior and focus of the banks has been if youhave the liquidity they wor with you and get it sorted out our focus is much more on the liquidity than on the technical of the bank covenants and i think we're in a very good position. >> joe, you mentioned that you believe there will be a lot of pent up demand but there's also a question about whether consumers will be concerned

about going to crowded places into these venues, even if there is a vaccine don't you think there's a possibility that consumer behavior will fundamentally change as a result of this crisis >> i think for the vast majority of people once they have the certainty of the vaccine, the comfort they know and that they have something which is going to keep them from getting ill with this, and then in addition to that we have effective treatments, at that point i do think that there is a fundamental human need to gather and that people want to get to together in the social environments and they will go back and go to bars, i think they will go to concerts and get together in groups i do think that that will continue over time i think right now when you talk to people, there's a lot of concern, there's a lot of anxiety out there, but i think as we get through it that what we've seen from the past issues, past experiences that have come up, that people will return.

>> morgan brennan here, i'm curious on the differences of postponed versus canceled? how do you decide what shows are postponed versus canceled and what does that mean from a ticket seller standpoint financially and what does it mean from a ticket holder standpoint in terms of something like a refund? >> yeah. we work with every artist and on the ticket master side work with every other sporting team and eventual organizer to figure out what to do with all these shows that are impacted. about 90% of them are in the process of being rescheduled, which means the artist or event organizer says we want to continue to have this event. about 10% have canceled. the ones that have canceled we've issued refunds to all the ticket holders on the ones that are being reschedule, it varies internationally throughout much of europe. the european governments have said let's put a pause on the shows being reschedule there is -- you don't need to issue a refund let's get through this one-time

massive event of complexity and then in the light of day we'll figure out how we will sort it out. t here in the u.s. as we get those events rescheduled we'll have an opportunity for fans to get some refunds and then go ahead and have the events. right now the complexity is i think there's a lot of misperception about ticketmaster ticketmaster doesn't sell these tickets and sit on a mountain of cash ticketmaster sells tickets and gives the cash over to the v venues where the events are held, they will hold the cash, give it to the event organizer or an artist, so in a natural course, if you reschedule and announce a new date ticketmaster has the money and they can do the one off events when that happens. when you have the volume of events you have now, before ticketmaster could issue a refund on a reschedule event, hate to go to that venue and get the money, the venues are closed

because of the current wa situation, they have to get the money from somebody else and so on down the chain. it's a pretty big process to go through and the volume is so huge, we're trying to do is follow a standard process that says as soon as it gets rescheduled and there's a date, people can determine can i go that time or not, then we're going to have an opportunity to get some refunds so far our experience has been that between 5 and 20% of the people that can get a refund when a show is rescheduled get the refund most still want to go to that event when it happens. >> yeah, always true i think if you can make it you want to go if we're really talking about summer '21 as a time where things can attempt to get back to normal scheduling, does it mean that outdoor venues are going to be even more important? what happens to their importance relative to indoor >> yeah.

clearly some of the early indications from fans is that they're feeling more comfortable going back to outdoor venues faster the ampy theaters and festivals we have will be huge events. i expect 2021 because of both the activity that will shift into 2021 as well as the pent up demand, certainly by the time that we go through another cycle of being able to be outdoors, those warm summer nights listening to music, having a beer with a friend, i think that will be back absolutely in full force in 2021. >> it's dominic here, one of the things -- i have some personal experience because my wife and mother-in-law were slated and all excited to go to the stagecoach festival out in palm desert later on this month and it got canceled. these are some big venues that attract tourists and people to destination locations. do you see a world going forward where the relationship between concert organizers, venues and travel and leisure companies

becomes even closer to try to promote some of the activity around getting people to concerts, getting them more comfortable with the idea of going to these types of events >> absolutely. i think in general what this says is everybody will have to work a lot closer to make sure we're creating the right safe environment that people feel comfortable going and whether that includes our coordination between the hotel, the events themselves, the airlines, all of that i think will start to see more -- what can we share, what can we do in common, how can we follow the same practices to make sure that people are fully comfortable when they want to go to an event like a big festival. >> joe, just a final question here is -- as you look at this next year ahead without any major events, are you working on any new revenue streams like pay per view concerts that would be live streamed are you also working on any new technologies to prepare your venues to screen people when they come in maybe taking their temperature or something like that when you

do start having concerts again >> sure. absolutely we're doing -- we started a -- we started a program we have a hub that you can come and watch concerts online right now. it's mainly as an outlet for artists to make sure they get their music out and fans will enjoy the music. it may have an opportunity to become another source for us connecting artists with fans that we can turn into a real business so we're watching that, building that now and over the next few months. in terms of the technology going forward, i think that we'll probably start by looking to what some others are doing, my guess is that the airlines will probably be on the front edge in terms of how they're thinking about using technology to screen people coming into the airports, getting on flights, using that combination of temperature checks, testing, tracing, everything else that will be used from a technology standpoint that's being developed. we'll look to utilize that same

technology, working both with our venues as well as with the other major arenas and venues around the country >> all right thank you so much for joining us, joe. >> joe, thanks so much for joining us >> we just heard the latest numbers on covid-19 from new york, specifically from governor andrew cuomo of new york dare i say some hopeful comments here's what he told us a few moments ago. >> total hospitalizations, actually basically flat, technically, ticked down, which is probably the first tick down. that's a good sign, buts basically flat, so we think we are at the apex on the plateau the number of hospitalizations went up, flattened, continuing to flatten, good sign.

technically the number is down a tad. statistically irrelevant, but better than being up the net change in total hospitalizations if you look at the curve which is what we look at, the curve is down. when you do the three-day average, wisconshich is more ac than any one day, because this reporting mechanism is new, we just put it in over -- during the swayiituation so i wouldn'tt all the chips on any one day, but when you look at three days and the overall curve, we think it's indicative. three-day average is down. the change in icu admissions is down again the icu admissions i take with a grain of salt since hospitals are no longer what they were and they're basically all icu ward intubations is a real number, the number of people being put on a ventilator. about 80% of those people will never come off a ventilator.

when you see the intubations, that is proportionate to the number of people we will lose and that's what we've been watching all along people going to the hospital, most get treated and are discharged some is are not discharged if they're intubated about 80% of the people who are intubated will not come off the ventilator the number of new people going in to the hospital per day is also down, but we still have 1600 new covid cases yesterday so we have 1600 people new coming into the hospital, some being discharged, and the net is what we've been watching, but it's also interesting to note that you still have 1600 new

people walking into the hospital or who were in a hospital and then diagnosed with covid. so the volume is still high. that's why the hospitals are still working very hard. we have been watching for growth outside of new york city, long island, westchester, rockland, that has basically been flat there have been hot spotz here and there. the department of health has been good and aggressive in jumping on those hot spots and tamping them down, test, isolate, trace you see the numbers by region across the state, pre porti proportionately down state new york which is what we've been talking about, but looking for growth across long island, westchester, upstate is very, very low to everything else in the state. this is something else we're

watching this is the number of deaths in nursing homes and the nursing homes have been an increasing issue. the nursing home issue was flagged by the first we had in the state of washington because that is the vulnerable population in the vulnerable place. and we've been worrying about nursing homes from day one as we saw in the state of washington you see the percentage of loss of life is getting higher in the nursing homes, compared to the hospitals. lives lost yesterday, 778. that number is up and that is to me the most painful number, and it has been the most painful number every day and those new yorkers are in our thoughts and prayers. you look at the past few days and the number of lives lost, it's basically flat at a

devastating level of pain and grief, but it evidences everything else we're seeing, which is basically a flattening at this level. the statisticians will say number of lives lost is a lagging indicator, which is a nice scientific term, but it doesn't mean it just it's mot just terrible, terrible, terrible news. nothing we can do about it although many new yorker are doing everything they can to save people's lives on a daily basis at great personal cost to themselves total number of deaths is 10,834 what we have learned through this process is that our actions determine our destiny, and that's actually good news.

we changed the curve every projection -- >> that is new york governor andrew cuomo with the latest numbers on covid-19 in the state of new york, which, of course, has been such a hot spot and epicenter for the outbreak here in the u.s basicall total hospitalizations are flat. ticking down the first time we have seen them tick down we'll continue to monitor that for you. let's bring in the ceo of zenith disinfection services. thanks for being with us >> i believe the last time you came on cnbc was early february, seems like a lifetime ago to talk about your technologies and the services they provide. we have seen coronavirus come this global pandemic what has changed in terms of demand and sales of your robots.

where are they being deployed now and how they work? >> the robots, we have shipped hundreds to italy, to japan, to thailand, ecuador, spain it's a global problem. it's just beginning to hit the united states. that's where all the robots have been going hundreds of them when you look at what we do, we have a zenon lamp on the inside of our robot when you pulse it with high power, it puts out broad spectrum germicidal light. the pathogens can't activate them we have tested against mers. t it's had to problem killing those in about two minutes >> we're talking about n-95 masks for disinfection

last night the department of defense awarded a $410 million contract to another company for disinfection of these types of res p res practi respirators. how youwould you assess the ramp in terms of government spending for disinfection services? >> we had a lot of conversations with the white house, with the leaders at hhs as well as the department of defense. our hospitals have innovated dr. mark at west virginia.

they have decided they are going to do that to disinfect the masks. it's something that under the circumstances we're huge advocates in saying let's get enough n-95 masks. >> we watched it here's the dwe -- question i have for you what is the economics behind the robot? how much does it cost if a business wants to use it, how much do they have to pay and what exactly is the work off scenario for how one of these robots work.

if you did ten rooms, it's $10 if you do 50 rooms, it's $2 a room we see hospitals get to 62 rooms day. you can see a telephone behind me opening draw e closing drawers for institution, the pay back on investment is about 6 to 1 on with they are spending for the robot. if they spend $100 a day, chances are they will get back 4 or $500 a day. we're seeingadoption in hotel, office buildings, cruise ships, that kind of thing, it's going to be back in getting confidence back in those customer who is want to go back to those facilities and start traveling again and getting america back to work again. that's our goal. >> i think you just touched on what my next question for you is i realize the focus is primarily on hospitals and health care

facilities but what are sochl the other industries to which you're selling this technology and how would you expect that to ramp up even as the worst of the outbreak ramps down? >> we had already seen adoption within the va hospitals. approximately 58 in the last three weeks. we're now up to 68 va hospitals. ten d.o.t. facilitiefacilities they have these and said the governor of texas wants these in the capital. we're seeing a huge demand within gsa, within government institutions airports are calling us. there's an article in a national newspaper a sunday ago reviewing a hotel chain that has decided they need to do this to protect guests people want to be safe they want to demand disinfection this is way for them to do it. at $100day, there's really not any restriction or anything economic dthat prevents anybody that want a higher level of

safety to they patrons they are do it with this product. >> let's talk about human behavior we know for the most part, human humans have a short attention span they may forget about the type of crisis we're going through in two, three, five years from now. what do you think will change about human behavior has this been a significant enough event to say we have to treat sanitation and disinfect ng a more pronounced way in the coming years >> first of all, short attention span, hopefully you're not talking about me i've been talking about the same thing for over a decade. my sense is that people finally get it be there was an article from new england journal of medicine monday where they said a hospital in italy which was a beautiful facility, the hospital

became the agent of infection. this is something you and i discussed five years ago the pathogenic environments were happen half the services keep clean. we became fthere because they experienced tremendous infection rates just by disinfekcting the surfaces after this, i don't think they will do it they're not beginning to put up the environments >> right >> that's good to hear especially given the fact it's been the epicenter of that outbreak where are you making the robots and how quickly can you make them >> we're producing about six times as many as we were producing three months ago and they're all made here in the united states in san antonio,

texas. great state of texas and we have been working since, almost since a week after i was with you in february everybody that can work is here producing robots from all over the world. >> thank you for joining us. >> thank you nice to talk to you again. gentlemen, taking a look at where we are in the markets right now, major averages continue to hang onto gains today. we are off highs of the session as we have seen. financial names like jpmorgan move lower post earnings this morning. also boeing on the latest numbers, delivery numbers as well dow is up 401 points 1.7% climbed above 24k earlier. we'll get another earnings name after the bell as well that is j.b. hunt. that will be a good gauge in

terms of freight flows and trade flows. >> morgan and carl, what i find interesting is we showed a graphic of a key sector in focus this week. that's the banks you look at the big banks despite the reports we saw with regard to jpmorgan chase it seems to fit this narrative we have seen the banks seem to start theday positive but lose some momentum going into the trading day itself those financials a key thing to watch right now. >> the credit reserves, we're a story in the morning and jpmorgan did talk about the possibility that defaults could get meaningfully worse bu bullard reiterates that fed is taking some risk

in his word, some of these firms will not make it it's not a surprise but puts a dae damper on the early morning mood we will get b of a the earnings picture is just getting starting as we are trying to hang onto some of these levels let's get to the half back at hq thank you very much. our breaking news coverage of the market continues now welcome to the halftime report stocks rallying today as the conversation moves towards reopening the economy. we'll be joined in a bit by our special guest today. first we kick things off with the investment economy she's been managing partner at requisite stock. apple leading the dow higher th