to you live from separate locations. averages off their session highs. plenty of stocks to watch this morning. apple taken to a sell at goldman. pg, schlumberger out with earnings, there is a lot to digest and we will turn to bob pisani to kick off the hour. hey, bob >> well, we've had a great morning. we are off of the highs, but it's amazing what a little hope for getting people out of hospitals are going to do for you right now. i just want to point out that all of the stuff that was the laggard this week are the leaders today. a lot of concern about the russell 2,000 lagging. it's a leadership sector today banks, a terrible week frankly, worse than normal. banks normally drop going into earnings but this has been a rough week home builders, their leaders, industrials their leaders, even energy believe it or not has been a leadership group this week look at the dow leaders, carl mentioned boeing with hopes of restarting some production over in washington.

that's leading the dow right now. jpmorgan chase, rough week overall. the cardholders, mx, visa down this week, doing better. exxonmobil also on the upside. and the laggards, and this is like perfect, the symmetry here, all the stuff that's been the market leader is down. walmart, a 52-week high, new high, procter & gamble raised their dividend, merck is up on the week, health care is up on the week, united health, apple had a good week. it's down. we've been telling you how goldman has downgraded apple, maybe a surprise, but talked about lingering low sales and margins a possible delay, possible in the 5g phone everybody is anticipating towards the end of the year, and i think this is the most important thing, a shallower recovery hard thing to call at this point. everybody is all over the map on that shallow recovery apple has regained almost 65% of

the losses we've had, a little better than the s&p 500. it's trading right now at 23 times forward earnings and if you're like me and look at the earnings for next three quarters and say they're not really very real, we don't have a good grasp on that, the sell side analysts are behind the curve so there's a good reason to be skeptical about apple on a forward multiple right now finally, some of the china stocks, china related stocks, we had some earnings from l'oreal and lvmh, exposed to china both of them generally made positive comments not about europe or the u.s. but about sales so far in china as it is slowly reopening those stocks are both trading to the upside a little hope there from two big luxury makers. i've had a lot of inquiries about what's going on with oil there's your luxury brands trading to the upside. u.s. owes the big oil etf and what you own here is front month contracts, the most immediate month and a month after that there's been enormous amounts of

activity in this in the last several days huge amounts of creations. a lot of people seem to be interested in buying into it i would caution a lot of people about this the front contracts here and these are, when you really into the next contract it costs you money and you lose money going into it. these etfs are used by professionals to hedge the market, used by professional to short the market all of your retail viewers who want to know should we pile in hopeful the market would rise, i would be cautious and learn about what it takes to own futures contracts and what they call decay in the premium. get into that some other time, folks, but sometimes you have to be careful when you're dealing with the etfs and the kind of kraktz that they own. >> sure. >> back to you. >> here's the reason why, because that may contract actually expires on monday, so people are selling off that contract which is why there's pressure on the front month and

buying the june contracts, which are up significantly in value today. technical factor for sure. speaking of technicals, want to bring your attention to one thing, watching the levels in the s&p 500, i know you are, you're watching 2862, i know you are because it's the 50-day moving average, it literally touched it and then fell down. is that an area of resistance or stalling out that traders are paying close attention to right now? >> i don't know how much value there is in 50-day and 200-day moving arjz but the fact that we haven't been there in a long time, since february, i think is important. now that the market has stabilized and, you know, dom, it's been remarkably stable week for the s&p, we're essentially up 2%. that's pretty modest considering the big moves we've seen in the last six weeks or so, i think technicals will start mattering more right now any time you can get a sense of going back to normalcy or above things that used to be considered positive like being

above the 50-day moving average, yeah, i think now it starts to matter a little more >> bob, it's interesting we've had a deluge of negative data this week, negative headlines as well, yet the market really seems to be globing on to what's positive here today case in point it's a trifecta gilead's covid-19 treatment remdesivir showing early signs of success reportedly. you've got the boeing announcement about plans to resume some wide body aircraft production starting monday this white house three-phase fwloo guideline for opening america up putting those together it seems like it's raised optimism for how quickly a recovery can take root here. that said it was only a couple days ago where we were talking about the stronger likelihood that this wouldn't be a v-shaped recovery, this could be a u or or another letter out of the

alphabet are the headlines enough to keep the market -- piggybacking on dom's question -- enough to keep the markets going at these levels or is the bar higher? >> yeah. i think the important thing is what moves the market? look today, why are we up? we have a potential, we don't have a vaccine, but we have a potential treatment that might keep people out of hospitals and keep people from getting in worse conditions the market believes that's a positive that's -- it's telling you that. look at the market you can see the futures moved up when that announcement was made after the close yesterday. helping people out, not a vaccine, just keeping people out of hospitals, keeping people from getting even sicker than they already are, that's a positive number two, any idea about when we might be able to get out of this, the rollout, you see cuomo every day seems to be able to move the markets if he has positive news or negative news about a rollout, where are we going to go interest herfrom here, what's the plan. better help on the health front,

a plan to roll out and get out of this gradually people will react positively to it and remember, they're trying -- there are analysts talking 2021 numbers, trying to get people away interest 2020, the first half of the year, and even into 2021 numbers if you look at that idea with what's happening now in the health front and the rollout, there is some reason to be a little more optimistic the data, though, because it's backward looking, we're getting, you know, april, may numbers now that are going to be horrific the headline numbers are really bad. so i think it's very valuable for us to recognize the companies that are cutting the dividends and withdrawing the guidance it's a good remind aer, a soberg reminder to balance off some of the optimism and that's why i think we have to be vigilant and keep it on both sides of this. we have to look forward but also have to realize the enormity of what we're dealing with. >> certainly you have been all

over that all week long, so bob pisani, thank you for taking the time again this morning. we've got the dow up about 400 points right now the dow, s&p and nasdaq are in positive territory for the week. second straight consecutive week of gains if we can hang on these gains right here meantime a name that did report earnings this morning, kansas city southern, ceo patrick ottensmeyer joins us in an exclusive interview. thanks for being withus today. >> good morning. thank you for having me. >> so i want to get your thoughts on earnings that you released this morning and also how the company is responding to covid-19 and keeping employees safe first, given the fact that as a freight railroad that moves not only goods in the u.s. but throughout north america, you have a lot of real-time data in terms of what those volumes look like and how it speaks to demand or maybe even lack of demand in some industries right now. what are you seeing in real-time

and how would you expect that to change or shift or recover in the coming months? >> okay. we're seeing -- you know, we have a broad, very diverse portfolio of businesses ranging from agriculture, food, chemicals, paper, autos, intermodal and what we are seeing is each one of those segments is responding differently to what's going on we've seen areas of weakness, particularly in intermodal, our international intermodal, largely in and outof mexico, largely based on trade with asia and specifically china we started to see those volumes, that business drop-off really at the end of february through march. automotives is about 10%, a little less than 10% of our business we saw that really drop off in the middle of march and continues on into april. obviously you all are very familiar with the headlines on the auto sector.

lot of plant closures, although we see based on announcements that have been made recently those plants will start to come back in the next few weeks or months, so we're trying to be prepared for that. on the other hand, agriculture, food products continues to be strong paper, chemicals we are handling packaging, product for packaging, and delivery type of materials as well as chemicals that are used in some of the solvents it's really a mixed bag and we're seeing overall declines here in the last few weeks we are very focused on trying to respond with cost saving measures, but be prepared for a recovery, whatever happens, we're not making a bet on the economy. we want to make sure we're prepared for whatever recovery we have and whenever that occurs >> yeah.

certainly you pulled your guidance for the year as well like we've seen many companies do in terms of not making a bet on the economy right now, does it feel like we're in a recession from your viewpoint? >> well, you know, i'll leave it to the economists to get too the technical definition of recession. we are definitely seeing a downturn and although if you saw our fir quarter results, there's very strong first quarter. it would have been stronger had we not seen the weakness in a couple of areas, particularly in the end of the quarter so far in april and, of course, railroads report their car loadings every week so you all have good visibility to what's going on, we're down and particularly down in the areas that i memgsed in international intermodal, although we've seen some recovery there. domestic intermodal and across the border has been strong and that's really more of a market share opportunity, but automotive has fallen to very low levels recently.

>> yeah. as a railroad you're deemed critical infrastructure which means you keep operations going and trains running as i mentioned earlier not just in the u.s. but also in our neighbor to the south mexico, which is such a key trade partner for the u.s., we've been very focused i think the markets have been very focused on how this pandemic is playing out, potential recovery is playing out in the u.s. and europe, in china and other parts of asia, but what are you seeing on the ground in mexico and how does that factor into your broader efforts to keep employees across both borders safe and keep those trains running >> okay. let me pick up on one thing you said and i'll take -- if you'll indulge me for 15 seconds and call out the railroaders, the worker, our employees across north america, we are critical and essential business in both u.s. and mexico and really want to draw attention to the

frontline heros in our business and our company that still come to work and have done their job and be prepared to keep our customers, our economies rolling an when the recovery comes we're going to be crucial helping drive that recovery. as far as your other question about the response, we started doing things here in the u.s. probably in early march, some in reaction to guidelines that we were getting from government agencies at all levels, state, local, federal, and as we rolled those sanitary procedures out, we rolled them across our entire network. it wasn't a matter of where do we need to do this because of guidelines from governments. we just did it across our entire network starting with distancing and then sanitizing everything from off buildings to locomotive shops to cabs of locomotives so that we could try to keep our

workers healthy and safe i can give you statistics. we did have our earnings call this morning and i gave some data on that call. we've had a very good health profile of our employees, both in the u.s. and mexico, and very few situations where we've had workers with symptoms and let alone with covid most of the people that we have staying at home, other than those office workers than can do their job from home which represents about 15% of our workforce, the folks that we've had respond and stay at home according with these sanitary guidelines are usually workers who are not symptomatic, but have either health conditions or age in particular in mexico that would suggest that they stay at home under the federal sanitary guidelines >> hey, patrick, it's dominic

chu here i'm curious, with regard to the ramp up of the ability to get this path forward for the economy in the united states and elsewhere, we often look forwards transportation companies as leading indicators for when we can get the economic activity back going. to what degree do you feel comfortable with supply chains and visibility into those particular types of industries that your particular operation at kansas city southern can be perhaps an indicator of the overall economy as things really start to fire up again >> i guess i think the best answer i can give to that is, again, the very close contact we have with our customers. our customer base, we are a -- obviously a b to b enterprise. our customers tend to be large concentrations if you look at our profile of our revenue base and volume, the top 200 customers represent a huge percentage of our business, so it's that contact at all

levels our sales and marketing team tends to have contact with the headquarters, the purchasing, the logistic folks, but our people in the fields are touching those plants every day and get information about what's going on at the plant level. i would say right now particularly with volumes declining, we are elevating our connection and our contact points with those customers so that we can stay very close to what they're seeing and be able to respond on the upside and the downside what we're doing is with volumes declining we're responding on the cost side, trying to rationalize and consolidate trains and save money and do things more efficiently. as i said earlier to the extent that frees up locomotives, people or railcars, keep them close so when we start to hear again all levels of those touch points with customers that things are recovering, that we are ready to go and do our part to help drive the economy back

into a growth mode >> finally, patrick, i wonder to what degree is fuel a tailwind here how long do you expect that to last structurally, do you see big shifts in share between modes as a result of this whole episode >> you know, i think on the cost side we're probably at a point where the fuel headwind or tailwind i'm sorry probably has a limited run. we have a lag in our fuel pricing on the revenue side versus the cost side, so i would think, you know, we might get to a point by the end of the second quarter, so 90 days out, we might have a bit of a tailwind benefit in the second quarter. i wouldn't expect it to be huge. you know, that will run its course kind of at current levels and then i'm sorry, dom, i forget your second question.

>> just in terms of i wonder if we're going to be looking at generational shifts in the market share between modes of transportation yeah, i think -- >> when we take stuff back -- >> intermodal is the best example with volumes being depressed and capacity on the rail network and particularly our network and even more specifically our cross-border network where there's a big cross -- a market share opportunity, our service levels have improved tremendously i think that's a big factor. if we can convince our customers and maintain those service levels at the -- at levels they're at today, i think there is a great opportunity for us to gain market share, particularly on the cross-border intermodal where our share is pretty low still and i think across the industry you know, the silvl lining of th cloud of reduced, is service levels are improving across the industry and as we grow, rail

service is going to be better as we come out of this and that's going to help the rail look more attractive to other modes and we can sustain that performance, it will result in long-term shift in market share. >> of course speaking to that, the implementation of precision scheduled railroading which you've been involved in and has been the biggest most transformational trend for the u.s. railroads of the last couple years patrick, thank you for joining us today on the heels of earnings shares of kansas city southern are up 2.5%. thank you. >> thank you market is off of the highs of the session but gilead is hanging in there as hopes are very high for the future of remdesivir 8% gain there for gilead i llan, highs for abbott labs elliy d vertex we're back in just a moment. what do you see? we see a billion more people breathing free.

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welcome back european markets set to close in a moment seema moody has the breakdown of the action overseas. seema? >> and morgan, particularly strong session in asia and it's exactly what we're seeing in europe as well stocks there sharply higher across the board as more countries unveil their framework around reopening their economies while overlooking two data points that came out this morning. a 0.7% decline in eurozone inflation and car sales in europe tumbling 50%.

italy seeings the biggest drop of 85% the auto stocks, though, are higher in today's trade with bmw leading the charge up around 5%. luxury retail among the best performing groups across europe right now. the collective focus turning to lvmh's xhentz on a recovery in china taking hold as the revenue picture starts to improve on the mainland slowly. while the stay at home plays that have worked over the past month so look at hello fresh, the meal kit company and the remote software working company team, both of those stocks are trading lower at this moment germany will start to reopen its economy, denmark will allow certain small businesses such as hair dressers, driving schools to open by next monday austria says shopping malls can resume operations may 1st. however what's key here is that these countries are still keeping their social distancing measures in place. guys, back to you. >> seema moody, thank you very

much let's get a check on the latest coronavirus headlines. rahel solomon has those at hq. >> hi, dom good afternoon, everyone senate minority leader chuck schumer says coronavirus bill talks will continue through the weekend after the small business relief program ran out of cash this week. democrats want expanded aid to include broader relief for small businesses, hospitals and state and local governments. and a group of democratic senators is accusing most airlines of refusing to issue billions of dollars in cash refunds to passengers after flights were canceled due to the pandemic carriers are issuing credits for future flights instead the senators say that struggling families need that money now michigan's governor is aiming to begin reopening the state's economy next month reopening would come in stages to prevent a wave of new infections governor whitmer hopes to begin the first phase of reopenings may 1st. the nba and wnba selling cloth face coverings online

featuring logos and proceeds donated to feeding america and u.s. in second harvest in u.s. and canada as always for more coronavirus coverage head to our website cnbc.com morgan, i'll send it back to you. >> thank you after the break, former new york city deputy mayor and current alphabet exec dan dotr hckolis best foot forward on reopening the economy. that's next. stay with us

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welcome back checking in on the major averages all in the green to finish the week at least for now. let's bring in anthony roth, chief investment officer at wilmington trust thanks for being with us today want to get your take not only on the rally we're seeing in the market right now but that we have been seeing as of late. what do you think is priced in here >> well, i think that there's more priced in than is going to happen in the short term from an

opening the economy standpoint the markets have been enthused over the last two to three weeks because we've seen a peaking in the cases and we have an open-ended fiscal and monetary backstop behind us that's great but in order to open the economy we have to have confidence and the way to create confidence on the part of employees and consumers to get people back at work and to get consumers back in stores is to have testing and to have therapeutics we are at the very beginning stages of really building out an adequate testing capability. even when we talk about the amount of teg we have today, a lot of that testing is still three or four or five day results. that's not going to cut it for the kind of certain i we need to get employees comfortable with who they're working with or to get people back in stores. in terms of therapeutics we're seeing a nice rally in the market, quite frankly the first time that we've had any hopefully hard evidence, hopefully it's indicative of

hard evidence to come, that our therapeutic tool consist kit is come together to create a level of confidence for people if they fall ill they're going to be okay >> talk to me about how this has translated to changes in your port physicfollow. >> we maintain an underweight position on risk we think the markets are head of themselves if we look at valuations relative to 2021, not 2020, but 2021, assuming $150 per share, we're actually higher than peak multiples before covid hit so the risk clearly remains to the downside which is why we remain underweight and within the equity portfolio we have maintained an overweight on technology because technology companies actually in many regards as we've seen, have -- are less levered to the bricks and mortar economy which is being shut down and are actually

higher quality companies which is across all sectors where we think investors should be looking. for companies that have really great management teams, really low levels of debt, really persistent earnings and high quality dividend pairs you see those to some degree in all sectors. you see them more in staples and utilities but also in tech and in financials. we actually like the broad diversified, big money center banks that reported earlier in the week we think they have a lot of opportunity to do well here. we would stay away from cheap value. >> got it. when you say deep value, i'm assuming you mean energy which has been and continues to be a big focus? >> yeah. energy basically any kind of companies that basically don't have the kind of quality attributes i just talked about and whose principle attractpion is that they're inexpensive on a multiples basis but they don't have the persistence of earnings

in a situation where their core business will be shocked and strong balance sheet behind them those are areas of the market that lagd for years and we don't expect them to continue to turn the corner here in this kind of environment. the reason i point that out is because typically when you go through the beginning stages of a bull market and we're up almost 30% from the lows you cereally value hard. this is a different cycle than in the past. we're not seeing those value names be able to take advantage of an economic resurgence because we're really not seeing an economic resurgence only a resurgence in multiples in the equity market not predicated on a real economic renaissance in any way >> yeah. key point. tony, thank you for joining us today. >> thanks for having me. dow is trying to hold 24k

and the s&p was trying to hold 2850 we lost both of those. session high was 612, although the session is far from over 'rba ia ment d. staying connected shouldn't be one of them. that's why we're offering contactless delivery and set-up on all devices. and for those experiencing financial hardship due to this crisis, we'll work with you to keep your service up and running. hi! because at at&t, we're always committed to keeping you connected.

new york governor andrew cuomo out with his state's latest numbers on covid-19 here's what he had to say a few minutes ago. >> total hospitalizations ticked down again that is good news. just a tick. but we'll take it. it's better than going up. again, this is one day, but it is flattening, reducing slightly depending on your point of view. a pessimist would say we're basically flat an optimist would say i think we're starting to trend down it's a personality test. net change in total hospitalizations is undeniably

on the decline the three-day average, which is more accurate than any one-day number, also says the same thing. the icu admissions is down that's not that telling to me because as i said the entire hospital is basically an entire icu ward the number of intubations is down and that is very good news because intubations, 80% of the time, wind up in a person not recovering so that's really good news the reality and the counter narrative, counter fact, number of new cases that walked in the door, covid cases, walked in the door of a hospital, is still about 2,000 per day and that is still very high. yes, fewer people in the hospital, fewer people being

intubated, but still, 2,000 people walking in the door and if you notice, it's hovered about the same rate for several weeks. it peaked, but 2,000, that's a very high number number of deaths unfortunately refuses to come down dramatically 630. that is still breathtaking in its pain and grief and tragedy, and basically flat again like many of the other numbers. just in terms of overall context, where are we, where are we going everybody want to ask that question every day and i understand that. we have to get to tomorrow what is the final conclusion of this ugly chapter. i still believe it's when we have a vaccine, when people know

that this virus is totally controlled that's 12 to 18 months hopefully it can be sooner maybe there's a medical treatment in between we hope. we pray. lot of medical companies are working very hard on it here in the state. >> that's governor cuomo there with some decent metrics you could argue. net hospitalizations and intubations, icu admissions. as he says to some degree, the data points remain a personality test, which you could argue the stock market is as well right now. our next guest write in an op-ed for the "new york times" i helped new york rebound from 9/11 here's how to recover after the pandemic joining us this morning former new york city deputy mayor, ceo of alphabet owned sidewalk labs dan doctoroff. great to see you again. >> great to see you too. >> your piece is great people should take a look at it.

basically you're trying to draw analogs to 9/11 through the lens of new york. back then, new york had to take the lead on public safety when it came to security and now it's going to have to take the lead, you argue, in public health. what do you mean by that >> well, if you think back to what enabled new york to recover from 9/11, the foundation of that recovery were the incredible gains in terms of crime reduction, public safety improvements that have been made in the late '90s without that, there's no way new york could have recovered because people felt safe being in the city and even after 9/11, that was intensified, the city added i think a thousand people dedicated to counterterrorism, lots of visibility signs, public presence of the police on the streets. i believe that the foundation for recovery from the pandemic in new york is actually going to be public health, that new york

is going to have to establish itself as a very visibility and clear leader globally and public health and what does that mean it's public evidence of hygiene, whether that's very visibly wiping things down or masks or temperature checks, it is preparation, which obviously as a country we were unprepared for this new york is going to i think again have to take the lead being demonstrating preparedness i think it will involve a lot of approaches to technology and that will enable the city to trace people more effectively, but beyond that may also be about connecting people. we all know how unequal the impact of this was and demonstrating that we can connect people in ways so that they can be helped or served in new and different ways will all be critical.

that's just the foundation if we do not re-establish faith in density, re-establish faith in city life, active city life, then it will be a much, much longer road to recovery than it otherwise would be >> yeah. for urban centers all around the country. you know, i'm thinking about post-9/11, i mean the city did take the lead in many ways as you suggest, but there was the advent of tsa the advent of department of homeland security, large federal bedrocks that got put into place understand neath that are you as confident that the federal response will be as robust this time >> it's hard to be confident at this point, just given the erratic nature of the federal response thus far. but i do believe that our federal government and its

leader des rately wants the economy to recover across the country. certainly we'll see new york as a real linchpin in that recovery and, therefore, we'll have to be thinking aggressively about its own policies toward public health i said, you know, cities are competitive. i looked at it through the angle of new york city both after 9/11 and starting to now, and for new york, it has to become really a global leader, but you're right, we can't do that without the assistance of the federal government at the same time. after 9/11, new york received $20 billion from the federal government to aid in the rebuilding that aid from the federal government i think to rebuild the economies of our urban centers is going to be required not just in new york, but across the country as well. >> yeah.

dan, this is morgan, to dig into that a little bit more, that is my question for you, who is going to pay for all of this, whether it is in new york or whether it is in some of these other hard-hit cities and i do ask that because we'll just take new york as an example, we already saw budgetary constraints and the state poised for a multibillion dollar revenue shortfall even before the pandemic hit and obviously those numbers have continued to balloon since then how does that play out and how does new york then become a case study for some of the other states >> well, i think first of all it will be hard to treat new york differently than other cities and probably states as well. but the federal government is going to have to design a specific program for cities to enable their recovery. just as it did for new york after 9/11 that will obviously be part of a much broader recovery program. you've heard about care for and

care five and huge infrastructure programs. i think it's a little too soon to know exactly what we will need, but there's going to have to be a national program to help cities to recover because as you point out, the budget deficits are just going to be enormous and typically for cities, they can't even have deficits so they have to cut their way to balance budgets and when that happens, you know, what i call the vicious cycle of city decline actually begins to occur because as you start cutting back on services, as you start cutting back, for example, on police protection because you can't afford it, people tend to leave cities and when that happens, the budget problems get worse perpetuating the cycle of decline. we've got to arrest that we've got to arrest it quickly instead what we want is we want to see cities growing again

because that's how they can pay for essential services which improve quality of life, attracting more people, perpetuating a virtuous cycle. that's what our planning has to think about as we move forward >> dan, our thanks everybody should take a look at piece in the "times. dan doctoroff, hope to see you again soon. >> thank you ver ♪y much dad, i'm scared. ♪ it's only human to care for those we love. and also help light their way. it's why last year chevron invested over $10 billion to bring affordable, reliable, ever cleaner energy to america.

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welcome back let's get over to rick santelli at the cme group in chicago. >> thanks. i would like to welcome my special guest bob hormat, advising managing director, his resume about four feet long, done a lot of different jobs in government, goldman sachs. bob, it's great to have you today. let's get into it. the biggest question, biggest debate in my circle on cnbc is, why are rates so soft and equities so firm what is the driving force for buying treasuries and buying stocks in your opinion >> well, i think you're right, there looks to be a contradiction here i think the buying force for treasuries is people still are unsure of the future of the

economy because the question of whether there is a -- some kind of cure or medicine for treatings the coronavirus and whether there is ultimately going to be a vaccine, are still unknown and the course of the virus itself is still an unknown thing. things are looking better in new york and some cities and some cities they're looking worse this is sort of an unknown factor and it's very unpredictable and in that environment people look for the security of treasuries on the other hand, ironically, the low interest rates, coupled with a big government stimulus and the prospect of an even greater government stimulus in the future, which is necessary, has given people some hope that economy will grow over a period of time and when you get growth

with relatively high dividend yields compared to the yields on treasuries, that's an attractive feature for stocks in many cases. >> now, another issue that many are weighing in on, and i hear it every day, is that behavior and life in general in the u.s. is going to be different on the backside of coronavirus. and that may or may not be true. but i think the better conversation to have is how behavior among countries is going to be different, think deglobalization, think about all the pharmaceuticals and questions of drugs made in other countries that may be in shortly. >> here, think of manufacturing issues weigh in on the deglobalization aftermath. >> you're absolutely right there's a contradiction here too. in one sense the notion of long supply chains and heavy reliance on other countries is going to

be questioned not only by our government and other governments around the world, but by companies. do they want to be as heavily reliant on one supplier in a distant land for vital products, be they technology pharmaceutical products, medical equipment. so the notion of bringing more of the production home or diversifying it to far greater degree will be, i think, a critical structural question, a strategic question for many companies. the other is, as we had after the oil crisis, the notion of a strategic reserve. we have a strategic reserve for medical products the congress has appropriated 16 billion dollar for that. i think we'll have to concentrate a lot more on having the resilience of strategic reserves for many highly

important products in the pharmaceutical area and others as well. the motion that was very attractive years ago just in time inventories, that will be rethought too because it turns out when there's disruptions in other countries, when other countries have to close down their capabilities to produce things and supply chains become more questionable, you want to have strategic reserves of critical products under your control if you're company. that's going to be a lot more storage capacity requirements and giving up this notion for many products of total reliance or heavy reliance on just in time inventory it will restructure supply chain thinking as inventory thinking >> very interesting discussion we have to have ongoing when we have you back. we are out of time i thank you.

be safe during this critical time in our country's history. thank you for joining us today morgan, back to you. thank you. as we head to break, here's a look at the top gainers in the nasdaq 100 for the week. tesla, amd, amazon, netflix. stay with us life isn't a straight line. and sometimes, you can find yourself heading in a new direction. but when you're with fidelity, a partner who makes sure every step is clear, there's nothing to stop you from moving forward.

a partner who makes sure every step is clear, yeah, everything is runningis smoothly with the now platform. (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you. ♪ to all those on the front lines caring for our sick. stocking our shelves. bringing us packages. delivering our food.

those who are there when we need them. and the millions of americans doing their part, just by staying home. our communities are beyond grateful. at citi, we are too. even if we're apart, we'll get through this together. pga tours looking to become the first sport in the united states to restart. they planning to restart in early june without fans in attendance for now joining us is pga tour commissioner thank you so much for being here this morning

let's talk about the decision process that you went through. how much player buy in was there? sin >> since the moment we stepped away, we have spent an enormous amount of time thinking about our return that answer your question we have a policy board with four players. we've had over ten conference calls, some lasting two hours as we thought through our return. there's been a lot of player feedback our players are eager to return, excited to return. excited to inspire this country but also know in announcing the schedule yesterday we'll do so

in a safe and responsible way. >> you've also been in touch, i'm assuming these days, with the administration, with president trump about trying to get things restarted especially when it comes to prosports what's been the tenor of those conversation and what is the tone for whether or not we should get back to work in america? >> i think the tenor of the conversations have been, you know, a recognition of the importance -- the important role that sports playing in inspiring our country. the tenor has been for us to come together as an industry, which we don't have an opportunity to do often but are doing so brilliantly right now to share some of the challenges we are facing. to be able to share that with the administration, to hear from other leaders in other sports about how we're thinking about returning and get access to resources, to help us think

through these challenges is very, very helpful it's nspiring to think about the reemergence of the pga and recognizing where some of these other sports are, i think you'll see more sports returning and likely without spectators in the summer months. >> jay, you are playing a v sha shaped recovery when it comes to majors there's only going to be one this year but six in the upcoming season. how does that balance strike you? >> if you go back to that point in time when i stepped away, we pulled together, had daily conversations with the pga of america, augusta national, the rna as an industry to identify what is the best possible schedule for our players and our fans we announced ten days ago those major championships.

we announced yesterday our schedule, june 8th to 14th through the fedex cup playoffs through the end of the year. these are uncertain times. these are times we never faced before yes, you'll have one major championship through the conclusion of fedex cup playoffs and six next year. i think our are excited to know we have so many big events as we reemerge as a sport and people expect things will be different. in our sport it's the way it's manifested itself but i think it's important as a sport to come together and present a schedule that we knew our fans would love and would help our sport reemerge not just the pga tour but our entire sport >> good look with the restart of the season i know america will be watching. >> thank you good interview sports will be a big piece of getting economic mood lifted

once again although, the behavior of the indices continues to do well here capital acon has a note out about why the s&p has been so strong they say central bank response has been fast and dramatic two, the sectors that would do well in a stay at home se nacen, i.t., communication, health care are 50% of the index and that's why the s&p is up 5 of 7 and trying for its best month since 2011 >> it's such an interesting dynamic. when you tweet out the at the highs it's many of these tech stocks and health care that have been leading the way hire. we aren't as much focused on the earnings season as we have been in quarters past even though we have are a heavy slate of them coming up in next two weeks. >> earning season, also the forecast we had kansas city southern on

earlier today. we'll see more companies pull guidance as well it's these macro headlines that are driving everything right now. as you mentioned fang really fueling the rally. we seen this week with the nasdaq up more than 6% on the week >> yeah. next week coke, ibm, netflix, southwest, intel and more. have a good weekend. let's get to the half. thanks so much, carl preesh appreciate it very much. welcome to "the halftime report." big day for stocks positive gi positive gilead headline we discuss, we debate. we do that with our investment economy. they'll size up where your money will head from here. good to have all of you with us today. les