breaking news, stocks set to surge as investors pin hopes on promising results for a coronavirus treatment as president trump lays out his blueprint for reopening the economy putting the ownness on the states to make the final calls. and china industry doing the first time it has to do with gdp. friday, april 17, 2020 you are watching cnbc.

good morning i'm dominic chu. we begin with breaking news and two biotech stocks surging ahead of the opening bell. first is gilead. soaring here on report patients are responding well to one of its coronavirus treatments at a hospital in chicago. those shares up by 13% pre-market trade can you see over the course of the last 24 hours, a massive move for gilead. the second is moderna. they secure key funding for the development of a coronavirus vaccine. those shares up 19% pre-market we have more about those two stocks throughout the course of the morning. now to the broader market this morning.

hopes around gilead, futures right now are surging. the dow would be implied around 600 points, the s&p by about 64, nasdaq by about 140 points believe it or not, this is well off the highs of the session right now. we'll continue to watch that let's check the etfs that track. you can see the dow etf, the diamond up about 3%. s&p 500 etf, the spider, spy there up 2.5%. and the qqq trust up about 2% there. in the bond market, we are seeing some yields as well you can see moves are to the upside 10-year note yields or two-year note fields around .36%.

10-year note around .63% amid the sea of green, we are seeing a big move down of wti crude prices 7.5% lower $18.38 we are hovering around 18-year lows for u.s. crude prices that crush continues let us go world wide matt taylor is standing by to take asian markets and that key data point out of china and julianna tatelbaum is in london with early european trade. matt, we'll begin with you >> thank you, dom. it was a strong end to the week for the asia-pacific markets the asia markets followed suit shrugged hopes with big moves out of jan and and south korea

more than 3% let's look at the china market contracting by 6.8%. this was worse than the average of analyst forecast out there that went for a decline of 6.5%. other partals in march retail sales sliding by 15.8%. industrial production was only down 1.1% on this time one year ago. take a look at what happened in hong kong. markets higher but more corporate update. sands china operating. casino in macao will scrap dividends for 2019 japan, high for the nikkei sony will be delaying release of the full-year earnings due out the end of this month. australia higher as well shares of rio tinto after

surprisingly said it shipped more iron ore despite the virus impact >> thank you, matt let's watch what is happening with europe with julianna tatelbaum. good morning >> good morning, dom european markets look to be ending the week on a high note with the main benchmark the stoxx 600 rallying the pharma space no doubt lifting the sentiment with the news from gilead or reports there of a potential treatment working. and moderna as well. and roche announcing a new antibody test. a lot of positive momentum this morning driving broad based gains in europe. every sector trading in positive territory. looking more closely, those s k

cyclical parts underperforming auto and basic resources up 4% on the down side, utilities, food and bev underperforming but still positive investors look to be rounding out the week on a high note. >> live with the latest. thank you. to washington, d.c. where president trump laid out his administration plan telling some states they can begin the three-stage process as early as may 1. nbc's tracie potts joins us with the latest there >> good morning. it is an outline from the federal government the states will still have control of when or if they start this process the president brought in democrats and republicans for

advice democrats say they are still concerned there is not enough focus on testing >> three phases in restoring >> ready for a reboot. >> we are not opening all at once but one careful step at a time >> president trump says 29 states are ready to start reopening, some before may 1 his three-phase plan a gradual return to work and public life with social distancing and schools still closed high-risk individuals stay home. resume nonee eventual tral, resume school, sports and gathering and return to normal life with caution. minimizing crowds with a focus on hygiene democrats warn there should be more concern on. >> testing, testing testing.

>> we need several million tests a day. >> if they need to remain closed, we'll allow them to do that >> jobless claims top 22 million. americans protesting >> i honestly don't know when p that check will be coming. >> the federal government has run out of money for small business loans >> democrats are brocking the move for more. >> we want to make sure if we are going to allocate it, it gets to the people who need it the most >> a stalemate on capitol hill as american prepares to open for business >> the job sit wiegs really bad in some areas. there are at least four states with 25% unemployment right now. >> one of the big parts is the health side of things.

how are the president's health advisors approaching this? what is the commentary there warrant it is really safe to proceed with some of these faces in the reopening plan? >> so he says that the health advisors and that team have been on board with dealing with this. we know the cdc was involved as well we also heard dr. fauci say we could see a resurgence of this virus. that is the concern without wide-spread testing. people are out and about, business is open and then we retrse the resurgence he says if it happens, the u.s. can handle it. >> they've spoken about the quote/unquote second wave of the virus. thank you for that let's go to frank holland with

other headlines and corporate response in america. >> good morning. here is the very latest, shares of biotech giant gilead are soaring after reporting a chicago hospital treating coronavirus patients with the drug remdesivir in a trial are showing, quote, rapid recovery with all patients being discharged in less than a week the drug one of the first identified to have potential and 22 million americans have filed for unemployment in the past four weeks. facebook canceling all planned physical events through june 2021 over concerns about the pandemic saying some will be held virtually instead

back to you. when we come back, much more on the news out of gilead. we'll talk to one analysts who wants to see more results and data before drawing any big conclusions. and why shares of uber are surging. later on, testing troubles where the u.s. ranks as far as testing at large and what it means for the reopening of the ils. economy stl more ahead when cnbc returns after this

welcome back to the show you can see futures pointing to considerable gains at the highs, we were nearly 300 points higher than that. that is partly attributed to reports to a study involving patients with the covid-19 virus who were treated with the gilead drug remdesivir. joining me now, jeff kilburg, how much of this market sentiment is driven by positive developments around reopening the economy and positive drug use around covid-19? >> caller: you are right

it is a one-two punch. we heard president trump talking about this three-phase approach is really interesting to see we are just talking about reopening. we haven't been even able to talk about reopening for a long time the real catalyst is treatment seeing this in chicago, we did see positive results about 125 people in this test. 113 who were severely ill. when you see this treatment that was actually used for sars and mers years ago you are seeing gilead popping and nasdaq and s&p futures with optimism this is a one-two punch we'll celebrate in the market today. >> how much focus for investors since the real outbreak maybe back to january, february, to the shutdown in march, how much

focus has been on biotech sector >> we actually bought ibb. some of the name there's, gilead, horizon, amgen, some of these names we wouldn't favor going into an election year. now they are back in favor gilead is back owning ibb, that is the etf that could give you the broader swath and more specific names. we have a global sense of urgency into biotech we've never seen before. this is exciting for some single names but we are going to see high tide lift all boats >> let's talk about the overall market there has been a curious development over the past week or so in that the relative performance in the s&p 500, the

market cap weighted s&p 500 versus the equal weighted s&p 500 has started to move lower. meaning it continues to be a handful of very large companies driving the out size returns since the lows with he saw last month. how does that make you feel? >> caller: it is a trend we saw in 2019 but you hit the nail on the head in 2019, the s&p 500 was over up, 15% of that attributable to apple and most amazon is a big part of that this is a new normal we are seeing tech provide leadership names like moft, apple, intel, we'll continue to see them do well in this new normal. consumer behavior will be augmented in the walk of the coronavirus. >> let's take about your view seeing what is happening in the markets and over the past couple of weeks as we bounced off the

lows are you comfortable buying into this rally as with he see it today? >> caller: we are adding into this position. we got bullish a couple of weeks ago which was a lonely view. we are 700 points off of the bottom of the s&p 500. pretty remarkable. nearly a straight line up in recovery we talk about all the letters of the alphabet with regard to recovery a lot of the gain in the s&p 500 was due to the indiscriminate selling we saw in march. it pushed the whole indices lower. no reason we are under 2,200 in the s&p. i don't think we'll reach new all-time highs anytime soon. we'll see banks getting a hard time going in earnings season. seeing small caps earn as well

the rally still has some legs here >> always great to get your thoughts still on deck, a closer look at the stock of the morning. gilead sciences and why our next guest says it may be premature to declare a victory just yet. >> announcer: today's big number, 30 that's how many trading days the s&p 500 logged a move of at least 1% in either direction since the beginning of march the index is still down over 17% from its all-time high hit in february

welcome back to the show we want to call your attention to shares of apple the dow component up despite the fact that analysts havedown graded apple to a sell rating saying they are reducing the fact for the first time since february 17. we are now modelling a deeper reduction in demand and shallow recovery into 2021 that goldman call on apple could be a key focus nonetheless, apple shares are

higher in the pre-market 288.59 we are watching all of those moves on apple shares. now to shares of what is happening with gilead sciences we've been watching it all morning on reports that patients in a chicago hospital are seeing, quote, a rapid reduction of covid-19 symptoms with most being discharged after a week on that trial with me now, senior biotech analysts tyler van buren, take us through what we need to know about this gilead sciences drug, remdesivir that has become part of the business language these days >> caller: good morning. so remdesivir is a class of anti-virals being developed for covid-19 in particular, it is part of a

class of neucleocyde antibodies. they essentially trick the virus into not replicated anymore and interrupt the reply indication there is a number of these that have been developed and being used for testing what has been initially shown is that it is effective against sars co2 which is causing covid-19 and pretty potent in petry dishes that needs to translate into humans we are seeing little bits of data come out across the globe over the past month or two with respect to gilead's

remdesivir, in particular, i would note that it is one of the most potent anti-virals with respect to sars cov 2. another distinguishing feature is the fact that it is delivered intraveenously, when others are year als that could affect its ability to be delivered throughout the body and certainly to the lungs it was previously tested with ebola so it is shown to be safe. we have a few reports that have come out initially, there was a new england journal case report. three case reports came out after that 17 patients reported on in the wall street journal in japan and more recently, last friday, gilead came out with 53

compassionate use patients showing the mortality rate was halved in intubated patients and a third of nonintubated patients we had information leaked from a chicago hospital showing mortality rate of 25% which is very encouraging >> so many two drugs in focus now. one is remdesivir. the other is hydroxychloroquine. there are opinions that the focus on hydroxychloroquine was hampering getting data on drugs lick remdesivir. is that the case do we need more people to get testing results? >> there are a lot of good tests

out there and demand and patients to test these you are seeing hundreds, if not thousands of patients signing on to test these. we'll see more data come out over the course of the next two to three months. there are individual trials being conducted by also by nih and world health organization looking at all of them in the same trial we are going to get plenty of data on all of them. >> data is key as well as the testing facilities tyler, thank you we appreciate it straight ahead, we head back to washington, d.c. where president trump just laid out his road map for the reopening of the u.s. economy. cc tus eport whennbrern just after this.

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bracing for a rally. stock futures surging as wall street eyes the first two-week winning streak since november -- since february investors pinning results on promising side of one treatment. and president trump laying out the plan for reopening with a

three-phase plan it is friday, april 17, 2020 you are watching cnbc. welcome back, i'm dominic chu. we begin with breaking news. investors are waking up to see a lot of green on the screen a friday rally taking hold stock futures sharply higher by nearly 600 points for the dow. s&p would open higher by about 62 and nasdaq by about 137 if these numbers hold overnight, we were much higher on those markets checking now the etfs as we however around some of these limit up levels we hit overnight. the dow etf up nearly 3% the s&p 500 up 2.3% and up in

the qqq market and yields are up higher two-year up .21% 10-year note field .63% or 63 basis points and about 1.23% for the 30-year long bond in the united states treasury market. oil prices, despite all the green, wti crude $18.23. near 18-year lows. even as risk assets move up. oil prices fall, wti up about 8% and pinning hopes on report indicating covid-19 patients at a chicago hospital being treated with a gilead drug, remdesivir, are seeing, quote, a rapid reduction of symptoms with some

being released within a week of starting that clinical trial shares of gilead up sharply. checking trade in europe, numbers there very much green as well the global theme you will up by at least 3% or so at this stage, you will not see a spec of red on that european map. we also want to check the overnight action in asia where matt taylor is standing by it is very much green there as well >> absolutely. we rounded out the week with really sharp gains particularly if you look at the likes of north asia, japan and asia in the order of about 3%. your u.s. futures wither moving higher, the asian followed suit as well. we did get woeful news with respect to china gdp

they shrugged that off essentially baked that into the cake economic growth going into reverse. the number was a contraction of 6.8% the broad market consensus a number of 6.5% so it did miss to the down side there. we got other partals as well march retail sales slid. holding up by 1.1% on a year on year period. looking at other movers. hong kong was hire watching sands china there a nournsing plans to scrap the 2019 dividend. that stock moving higher on the back of that announcement. japan sitting at about a five-week high for the nikkei. sony helping blue chips out. it will delay release of profit numbers about two weeks. it was meant to release april 30

but that has been pushed out to may 13 back to you. >> thank you, matt have a nice weekend. to washington, d.c. now where president trump laid out his administration's road map to reopening. telling some states they can begin the three-stage process as early as the first of may. eamon javers with the latest this seems like it could be one of the reasons why the markets are as positive as they are. how quickly can the government get the economy reopened >> the president said some states could begin as soon as today as long as the health criteria are good and the governor there says it is okay the president earlier in the week said he had absolute authority to tell states what to do the president chomping at the bit to get the economy reopened. during later days of the week,

the president really backed off of that. what we saw yesterday is the president laying out a series of guidelines for states to take whatever their governor decides that things are okay enough in that state to begin moving forward. so no time lines here. it will be up to the various governors and various times. the president said the goal here is to move gradually >> we are not opening all at once but one careful step at a time some states will be able to open up sooner than others. some states are not in the kind of trouble that others are in. now that we have passed the peak in new cases, we have starting our life again >> so here is what it is going

to look like the president laid out three phases in terms of stages to open up an economy whenever that particular state decides things are okay phase 1, gyms, large venues and elective surgeries phase 2, schools, bars and nonessential travel. >> phase 3, senior visits, staffing and occupancy can increase what stays in place, is about all these things we've learned to live with will stay in place for a lengthy period of time including social distancing, tell teleworking for those who can do it and stag in for the vulnerable >> we are getting more word on a coalition of u.s. governors that are banning together to assist in the reopening of their

specific region outside of the west coast, outside of the northeast. what can you tell us about this new coalition of sorts >> it is seven states in the midwest including ohio, michigan, minnesota, kentucky, even included in that. a group of them there that say they have to act together to figure this out in the midwest what they don't want to is create an uneven roll out where there are state lines where on one side of the state line you you are doing something dramatically different those seven governors announced yesterday they are going to move forward with that coalition. we are seeing the absence of a national mandate here. the state governors are stepping in to try to do this in a multi-state way but not from the federal government >> thank you, eamon for the

latest sticking with that eventual reopening. philadelphia fed president telling cnbc it will likely come on the heels of a staggered and gradual recovery >> caller: i think it is really more -- we are going to hit a period where it is going to be pretty bad it is pretty bad right now your hearts go out to the people across the country we will climb out of it. it will not be a sudden bounce back there will be certain industries like travel and tourism and hospitality that will take some time to recover. >> joining me now, chief macro strategist frank, you heard the comments from a sitting fed regional president. do you agree is this going to be more of a gradual recovery

>> yes, dom. thanks for having me i do agree if you look at where the economy was in the fourth quarter of 2019, it will take more like a full year to get back to that level. you had a steep slide and now it is going to be more gradual. from an asset perspective, it will be a tougher sledding here. you had a huge jump off the bottom from here, it will be more challenging. much of the rally we've seen is an acknowledgment of stepping in to alleviate a lot of the symptoms of the crisis the fed on the funding side and the government on the systemic side it will help confidence. but to get the economy back to where it was, it is going to be a longer trip. >> frank, what is interesting and it makes sense to me

the commentary from the market right now. not to say a v, u or l but to the difference of certain sek torz travel and leisure could be different. where could we see the biggest bounce backs quicker >> caller: clearly the industrials and the segments hardest hit. obviously the most upside room there. you had referred to this morning, looking at the s&p 500 versus the equal weighted. i would take it further to look at the s&p 500 versus the small caps, the 600s the small caps are still down some 30% of the year acknowledging these large companies had access to

liquidity which will make it easier to get through this where smaller companies don't. the smaller companies that can get through, clearly there is going to be more upside there once they are able to gain traction >> that will be an interesting divergence to watch for sure >> thank you for watching this morning. we appreciate it >> coming up, not just gilead getting all the love shares of moderna surging by 17%. $47 doot 50 there. we break down the covid-19 testing numbers state by state and look at where the u.s. stands compared to other countries. spoiler alert, america is lagging. we have those details when we return after this break.

welcome back the number of confirmed coronavirus cases in the united states surpassing 670,000 as more companies step up in the fight against the vie vus. frank has more >> that's right. moderna securing a federal commitment for $400 million that

will ramp up the creation of a vaccine. boeing will resume production in seattle factories as soon as monday. it closed following stay-at-home orders in washington it will implement new social distancing measures and require face coverings to prevent the spread of covid-19 shares of uber recovering after the fourth quarter lockdowns continue to go into effect across the country. when it comes to reopening the economy, a key lynch pen many are focusing on is the testing capacity we have the latest on that testing dilemma. good morning >> good morning. you are right.

republicans, democrats and medical experts all agree wide-spread testing is going to be critical to get back to normal what they don't agree on is how to pay for it and who is responsible for it that is becoming a sticking point over the next traunch of federal aid. already, congress has allocated $38.4 billion for testing of vaccines president trump shifted the burden back on to the tests. >> we are going to be watching over and see that everything is working out smoothly we are in very strong communication with the governors. we'll be helping with testing. they are going to be doing the testing. it has to be a localized thing it has been since i have been involved federal government is supposed

to do testing in a parking lot in a state 2,000 miles away, that's ridiculous. >> democrats argue this is a national problem that demands a national response. they are pushing to create a strategic plan led by the federal government to ramp up testing and say that they need $38 million to do it a coordinated infrastructure to administer those tests the u.s. has tested 3.4 million. that sounds like a big number but on a per capita basis that is less than other countries notably germany and south korea, which appear to be successfully containing the virus back to you. >> we talk about the funding these lawmakers want how much will that factor into negotiations for any potential future bailout baggage

we have the $2,200,000,000,001 in the book and the sba has already exhausted its efforts. how much more money could go into this and any talks going forward? >> it already is house speaker pelosi wants the focus to be on testing, testing, testing. including this money and aid package, pelosi said, you can't just help the businesses, you have to help the hospitals treat and diagnose and identify where the virus is spreading they don't want to do something too narrow and have congress move on the other piece of this is well. this is the discussion republicans and democrats are having how deep will they have to go. talks are in stalemate and nothing is getting done. >> if you don't know, elon has

recovered from covid-19 and she's written a cover of that. it is a great read have a great weekend >> thank you, dom. what could be the worst earnings season since the great financial crisis you can always watch or listen to us live on the cnbc app we are back in just a moment the world needs all the good that we can do. to everyone working to keep america strong, thank you.

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stocks are set to surge this friday morning futures pointing to what could be a 700-point open for the dow. all in a dismal earning season so far we are early in the season so far. joining me now, lindsay bell it is great to see you in person

let's talk about your initial takes after one week of earnings we have a lot more ahead of us >> we are in very early earnings here what we've seen from the big banks so far has been pretty dismal a lot of them are taking hits and writing down credit losses because of the economic environment we are currently operating in is very weak. it is a testament to the environment we are operating in. also a sign of something we should look forward to hearing from other companies as we really get into the heart of the earnings season over the next couple of weeks. i think investors have really been expecting this to be a bad earnings quarter for the first and guidance to be expected or withdrawn, if not already, because it has been difficult.

these stocks that reported weak numbers and really gave lack luster guidance, if any at all the market may be up for the full week, i would expect as company earnings come out, we could see specific stocks react to those negative results. >> let's talk about the market big banks are largely behind us. getting regional banks trickling out. what companies should investors be focused on given that the earnings season is pretty much a crap shoot at this point >> a couple of sectors i'm focused on of course, health care there is a lot of news in that sector it has been the best performing sector since the market bottomed it is up about 32%

the numbers coming out and the messaging from those companies will be very important to think about where the economy goes for from here and how to restart the economy. also includes to how we can get started back up and running and get people back to work. also, i'm looking at the tech sector we are seeing another strong week for the tech sector throughout this. the energy sector has done really well. we haven't seen earnings come down as sharp as we have across industries some of these semiconductor names are talking about getting things back started in china that is a positive sign going forward. this is obviously a sector

investors have been flocking to. i expect this to do well and lead the market higher from here those are two i'm definitely watching >> let's talk about the outlook. what are you looking for in these conference calls that gives you an idea of what to expect in coming quarters? >> it is going to be all about -- where -- how corporate management teams think they can get back to work and what their plans are to bring employees back to work right now, the market is assuming we'll be getting back to work in the next couple of months and the economy will be back to full force by fourth quarter. any includes we can hear about how they are going to bring work force back are they bringing it back 50%, 25%, 75% of the time

that's important we are not going to get guidance >> always great to get your thoughts have a great weekend cnbc breakinmaetg rk coverage is back after this commercial break have a nice weekend.

good morning stock futures are rising jumping after a report that a gilead drug remdesivir shows promise. we'll talk to dr. scott gottlieb about what that means. china gdp falling 6.8% the first decline since it began publishing data in the early 1990s. we'll get a live report. boeing shares on the rise after it said it will resume production in the seattle area

as early as monday it is friday, april 17, 2020 "squawk box" begins right now. good morning good to see you all. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at equity futures futures are trading incredibly higher this is all about that gilead report we heard. news coming out of a university of chicago study we'll talk about it more it saw a rapid recovery of most of the 125 patients in that study. 113 had severe disease many of them walked out or left the hospital after six days, which is incredibly impressive a lot of people have been talking about this study that's the reason you are seeing futures up if you can get a