particular i want to mention california governor gavin newsom in the next show. sorry, sara, i cut you off quickly. >> no, i was just going to say the big cap tech stock, as you say, is a huge theme and amazon was the winner on the week and so far this week it ran up 16.25% and it is why consumer discretionary, and the growthy stocks are sort of making a stand here >> a big rally up 2.7% brian sullivan's got you covered next ♪ and welcome to "fast money" and cnbc's continued coverage of the markets in turmoil good evening or good afternoon, everybody, i hope you're having a decent friday. i am brian sullivan. t.g.i.f., the markets reflecting an economy and a health and population that is slowly starting to get a little bit better every single day. the dow ending its day up 704

points it is now up 10% in the month of april, but still, down 15% on the year the nasdaq and big technology once again, the big winner it gained 1.4% today, 6% from the nasdaq this week, and many of the most beaten-up names and some of the ones exposed to the consumer and a shutdown economy riding the most rising the most on this friday well come, everybody i am brian sullivan and we have the great trader line urp. guy adami, tim seymour, jeff mills will join us in moments. there is a lot to do, by the way and chew on from the macro standpoint, but we'll begin with a deep dive into one of the world's most owned if not the most-owned stock in the world and that is apple. goldman sachs on this friday says it is time to sell apple's stock. they believe that iphone demand

will continue to fall as consumers dry up and also this is interesting, guy adami, that lack of travel, the inability to physically be with each other might cause delays because engineers and product designers simply can't get together in the same room to finalize whatever it is they need to do. your take on the goldman call on apple. >> and on top of that, maybe supply chain issues which we haven't talked about which all of this sort of flies in the face of what tim mentioned the other day, some of the news out of taiwan semi clearly a mixed bag. what's my take on it it's amazing when people say something negative about apple, you might as well be insulting somebody's first child it's incredible to me how passionate people get about this stock, just generally speaking in terms of the call, you know what i sort of like it. the markets rallied considerably you just said it leading in. we are only 15% now off the all-time high in the dow and the

s&p 500 which is remarkable. apple has rallied significantly off the lows and the level that they talked about goldman sachs with the sell rating takes us back to the previous all-time high we had in october 2018 and given the run the markets had and given the potential headwinds and the fact that i don't think people will be racing out to buy $500 phones let alone $1100 phone, leads me to believe this is not a ridiculous call. with that, quickly, i guarantee there are other analysts that come out and upgrade this name and that's just the nature of the beast. >> yeah, you know, tim, we highlighted the other day how iphone sales in china were better than expected, but i guess what i should have highlighted a little bit better is what goldman notes. they were still down 53% year over year. >> yeah. look, it's a very interesting week on apple. tuesday news again,

international iphone shipments of which 2.5 million looked to be apple in china, a very important market for them and today goldman says we're willing to throw a 17.7 multiple -- or s&p multiple on apple and a 13 spot, i think 1-7 in terms of '20, '21 earnings and j.p. morgan throws a multiple and a roughly $16.50 per-share number and that's interesting i think for investors that's where you have to line up on apple. if you believe in the multiple, do you believe in the multiple expansion we had last year one of the things goldman brings up is they see that the service revenues come under some pressure and maybe stagnate and don't grow and that's the re-rating dynamic and i know that the iphone shipments were better last quarter and that was a surprise to the upside, but it's been about services and the interesting take by goldman.

>> it is, b.k., and guy made a good point how dare you downgrade apple, but listen, analyst, you know, everyone's struggling to work in this environment they may be slower on the uptick than they are. do you expect to see more calls like this whether it's on apple or other of these big-cap tech names that everybody's been buying for the last ten years. >> i think so. you know what's interesting about this, sully, i think it is a proxy for what's going on. we had this disinflationary, inflationary shock and you shut them down and with average selling prices and asps and those are going to go down apple announced a lower-priced phone and if you start to talk about the economy, why okay, this is going to happen to every company out there. they are going to have to lower their prices for the products that they sell and so you look at apple and they're the first to do it they're the first to close their stores and they're the first to lower the price on their phones.

i think goldman made a great call here and i agree with guy you're not allowed to say anything bad about apple and it's a company like everybody else and still subject to the economic wins. >> yeah, and i had to look something up in this call because jeff mills they talked about average selling prices and asps were going down and i read this line and it said basically that the preference for less-expensive devices could push apple toward moving toward the inclusion of mm wave technology for most devices next year i didn't know what mm wave was i'm not going lie. i looked it up and it's millimeter wave technology and the point is that this price battle especially in an economy that is shaky to weak, at best, could compress margins do you agree with the goldman sachs call, yes or no? >> so, look, i'll take a longer

term point of view and i want to talk about the show last week and it was the piper survey that looked at the power of the brand. 85% of them own iphones and this is still a very powerful brand that people want to own, so that's good for the long term. they've proven they can diversify away from i bone and if you look at the chart and it's steadily above the 2 hun-day moving average and it closed above the 50-day. specific to the goldman note they talked about the average selling price and they also talked about unit sales growth and they're extrapolating their numbers based on the recession after the tech bubble and the financial crisis the question is do we think this recession is similar, and you're going to see a similar pickup in sales after this recession is over does the nature of this recession nation the snapback quicker and does the stimulus make it quicker and frankly, we don't know, but we have to look for clues. i think it's interesting if you look at international luxury sales as an example

in mainland china louis vuitton. sales have increased 50% compared to that same period a year ago so you are seeing some pent-up demand in consumers coming back to market for some of the higher-priced goods after the virus is over and is that a perfect analogy to what's going on with apple and consumers come back more quickly than we think. >>. >> and i agree with that certainly in terms of the china data, and we've seen it all week and they had bigger import/export numbers and we heard it from taiwan system i and f semi, and we went into the crisis with apple effectively not only at all-time highs and it was 90% off of the june 2019 low and the multiple it got to 21, 22 times forward and that's my biggest issue with apple. pricing perfection in this environment is really tough and when you get back up to $300 a share you're pricing perfection

even though i am of the view, jeff, that we actually do come back to a better demand cycle as we see asia come online, i think we can impnput that here. >> those are all good points, guy adami, and i'll layer on to tim's point. look at where we come from people, a lot of our viewers have owned apple for a long time they have made a ton of money in the stock and one does wonder when you are facing such an uncertain future economically or whatever else. do you trim a little bit and take some of your profits. you never go broke by taking profit [ no audio ] >> apparently, my comment, tim seymour, left guy speechless for once >> it's hard to believe. >> going back to where you were. it's impossible. we've made so much money in the

name if you've owned it for so long, why not trim a little bit and put that in the bank and look for better opportunities elsewhere. >> it's one of the stocks that investors universally and we talk about this on the show, are you a trader are you an investor and apple for me, i am an investor, i will say that on the positive side of the things that we haven't thrown into the argument today is the balance sheet and the ability through capital markets and i know buybacks are a naughty word these days and apple is entitled to them considering the free cash flow they generate. i think apple is not something you run away from and we're talking in the context of the goldman note sure makes sense. what's the multiple you put on the stock? i think people are long-term investors in apple and it's okay to take a breath here, but i don't think you want to be trading it too aggressively. there's nothing about the news today that goldman illuminated that should have you jumping out of a window on this stock. >> b.k., fair enough don't jump out the window

especially on apple because, you know, we don't know where things are going to go, but we do know that apple is not like other companies. apple is a utility you have basically two choices of phones. you have to have a phone so you're effectively buying a utility play >> you don't need to have an $1100 phone. you have to have a phone you don't to replace it and you don't have to get the very new one. the reality here is none of us know we don't know what it's going to look like on the other side and to compare this environment to any other recession we've had, i don't think that's the right thing to do. you know, people are going to save more. i don't know -- apple might be entitled to be doing a buyback, but it might not be acceptable you might see companies being rewarded for saving money and not doing a buyback. these are all things i don't know so i look at apple i look at the run that we've had.

why not take some profit at this point in time? these are the times -- you don't get bullish at the top you get bullish when things are horrible and we were on the show a couple of weeks ago and we could have this big, short covering rally and those are the times to get bullish not today. >> okay. goldman sachs selling apple and a big a-block. a is for apple we have a lot more to do in fact, we have a lot more to do on cnbc tonight not only are we going two hours live that's right jim is off today so we have a two-hour "fast money." we'll roll right into our special, continued coverage of "markets in turmoil" right here on cnbc. on deck here on "fast money," why you need to pay attention to two things with oil and what each of those things might be telling you right now. plus, an interview that you do not want to miss california governor gavin newsom's efforts on the states trying to get its once golden economy back in business

the california governor coming up live here on cnbc's "fast money. we've got a lot more to do and we'll be right back right after we'll be right back right after this achiuest room, so you can live with us. oooh, well... i'm good at my condo. oh. i love her condo. nana throws the best parties. well planned, well invested, well protected. voya. be confident to and through retirement.

>> welcome back to "fast money," everybody. crude oil falling. another stock down 8% on the may futures contracts. they settled at $18.72 that is the lowest since 2002. i guess one upshot is gasoline prices should continue to fall, but when we talk about any commodity i want you to remember one thing especially like in oil. it is important to look at multi-month contracts because of expected production cuts along with opec as well as huge drops in drilling rig, the june and

july contracts for oil are trading at very different price points than the may contract, the front month which is what we have been showing you. so may was 18.72 and july was 25 bucks and b.k., a little bit of, i guess, looking at certain contract lesson there and i'm not going to say 25 or 30 is good, but they're better than 19 bucks. what is that contango, higher prices in the future tell you about oil and maybe the economy? >> so it's interesting because today basically, not to go too far into it, but a lot of people were selling out of may and buying into june and july. so you had this kind of weird dichotomy there, but even still, you're still talking about oil in the $20 a barrel and really to me, it's less about the intricacies about trading and i trade oil from the macro perspective and getting into the intricacies and i'm a tourist in that area, but what i do think

is interesting and something you've been highlighting for a while is this is a debt story, as well and now we have the federal reserve that is buying junk etfs so you can keep the price of that debt up, but what they can't do is replace the cash flows, so if there's insolvencies and the price of junk debt might be up and because oil is at $20, and you'll see companies go out of business and they're not going to come in what i'm more concerned about is what happens when there's an insolvency and the federal reserve owns that. >> what do we look at? the longer we stay at these prices, the worse it gets. >> fair enough tim seymour. we look at oil and gas stocks, some of them actually did okay today, and maybe they are looking at the rig counts and the number of new rigs are down 300 over the past couple of months there is some reason to be mildly, semioptimistic here, i guess. >> well, if you're investing in

energy stocks and an oil company and you talked about the futures contract configuration of essentially 20 to 30% higher out two to three months in contracts, as an investor in equities and that should be very encouraging. ultimately schlumberger reported numbers today and they're terrible numbers and they gave guidance in terms of cash flow and their ability to not only pay a dividend and it's somewhere around 13% and i won't opine on that and i think investing in energy equities in the current spot environment is crazy. crazy as in to assume the current environment is not something you want to impugn over the next two to three months and the green chutes and the term we use in march, april, late 2009 and 2010, but we are seeing chinese oil demand and this is the largest delta, incremental demand in the world. >> is someone back online or it's coming online, and i think

you have to be really careful to assume that the wti prices right now are indicative where the industry will be three to six months and saudi arabia, russia and their oil ministers on the tape today talking about their willingness to get out and make more cuts if they need, you talked about the rig counts and ultimately in commodities and there is a supply response and that is something that elevates prices because we can't exist in this environment that much longer >> what's interesting, jeff mill, let's look at slb and to tim's point, but the stock up almost 9%. not every oil and gas company is going to go away any opportunities that you guys at brynnmar trust see any form of energy anywhere >> so broadly, this is what i would say and we don't have an edge on the price of oil and that will be extremely difficult and the supply/demand dynamic means prices will stay low, and

at end of last year, is reduce exposure and sell out of the names, apache and getting rid of those and looking for exposure in more of the integrated space and i think about exxonmobil and the dividend yield and it's trading at a p-e multiple that's less than the industry and you have a ceo and a company who is instituting cost-cuts and it looks like they're serious about protecting the dividend and in the energy space you much prefer to be in names like that, names that might be more volatile as commodity prices move up and down >> jeff mills, good stuff there. thank you very much. we have slb up 9% today and i'll say good-bye to the traders for now and we'll bring them back, just a reminder, we're going live two hours tonight and there will be a live fast money from 6:00 to 7:00 p.m. with guy and tim and others, and right now we have an important interview for out west california governor gavin newsom

just announced his new business task force to help restart that economy and the biggest in the united states and by itself, one of the biggest in the world. disney's ceo, bob iger, apple ceo, tim cook and janet yellen and tom steyer and he will serve as co-chair of that task force and we are pleased to be joined now by the governor of california, the golden state, my home state, gavin newsom it is good to chat with you again. when you look at this economy, i know people are probably in your ear, we need to re-open and you're the biggest state economy in the united states tell our viewers where we stand right now and what the realistic time line might be >> we're not looking at timeliness we're looking at conditions on the ground and we're looking at data science and we're looking at the spread of this virus. we have a strategy and we laid it out in the issbeginning of te week and how we start toggling

back and forth and the proverbial light switch, but a dimmer and we focus on a phased approach throughout the nation state. it's the largest state in the union and we've been growing at 3.8 gdp over the last five years and literally up until last month we were enjoying record low unemployment and record reserves, record surpluses and obviously now with this induced recession from covid-19 weigh have owe have our work cut out for us. >> any projections, maybe not on health, but on the economy in general? we've had 22 million people nation wide file for jobless benefits and in the last three weeks and millions of those are coming, unfortunately, from california any projection of whether or not the worst economically may be behind your state? >> i don't know about that, look as i sit here quite literally a couple of hours ago we got our new claim number, 3.1 million.

3.1 million just since march 12th you're talking in just a few weeks, a deluge of unemployment claims i'm here in a restaurant in sacramento, mulvaney's by the way, i have a business background i got into politics through way of business and i opened businesses and have a blind trust right now and it's been a cause of my life and a point of passion. with the stimulus, as important and powerful and potent as it is, those tpp the-- i hope they able to do justice to the restaurant sector in the next round. it's just fundamental and critical so that i can answer affirmatively they think the worst, the peak is upon us or behind us. >> yeah. i'm glad you're at mulvaney's kind of a legendary spot in sacramento family owned we look across california or whatever state it might be,

governor and we see all these small businesses, people that have broken their backs for generations trying to build a nest egg and a business for themselves, now losing 20, 30, 40, 50 years of family work over a two-month period and the tpp, we've talked about it, pretty much full and congress is arguing for it and what is your message to congress and to the small business owners in your state that are just struggling to stay afloat after being punched in the face out of nowhere? >> i love the way you set that up these are dreams at risk of being snuffed out. we talk about california being the state of dreamers, doers, entrepreneurs and innovators and we pride ourselves on being on the leading and cutting edge and it's people that put everything on the line and take the risks that folks like this do. this is the spirit and the pride, not just the economy. these are not numbers and not gdp. this is community and as you say, families and generational

families and you're right, in a few quick moment, just a few weeks all of that potentially will peril and a state, even a nation state, the fifth large effort, and $3 trillion a year, we can't do enough within the state to help subsidize those supports and we're doing as much or more than anybody and the government in the next round of stimulus it's essential to put aside our differences and get the dollars down to the smallest of small businesses all across this country >> you know, i think you would argue and so many would argue not only in america, but around the world, governor, the key to coming out of this is a vaccine that's widely available is testing. i can see a day where, you know, we're going to a 49ers game at levi stadium and someone puts a thermometer to your head and you can go in and you can't. or mulvaney's when they take your temperature at the door and you can prove, look, i've just tested and i'm negative.

you can kind of see that world based on where china is now. how closer we to mass testing? you've got 5 5 million citizens you've got to deal with? >> we're nowhere near where we need to be on testing and let's just be straight with folks. a few weeks ago we were talking about re-agents and extraction kits and not having enough capacity to do the diagnostics and now the biggest challenge is the swabs and the media. the biggest point is we're getting point of care testing and the adoption of a lot of innovation and entrepreneurial spirit including thor isology test and the blood-based test and the prevalence, and to be able to isolate and quarantine people, that will allow us to advance our economic recovery and allow us to do it in a safe and responsible way. let's just be careful at this

moment and we're so desperate to get out of our homes and to get to places like this, to reconnect with family and friends and let's not runt 90-yard dash and this country has come so far and we're starting to bend the curve all across this nation let us not begin regretting that we pulled the plug too early. >> i think you have 15 million on eye gave you washington and oregon thrown in there >> a lot. >> 40 million. i didn't even want to correct you. >> thank you i appreciate that. it's been a long nine-day week once again here, governor newsom you are trying to deal with an ongoing crisis and i would imagine there is planning for the future because there will be a future we will come out of this and i know we can have time lines and you just said that, but can you give us a window into what kind of planning you will be starting or with regard to restaurants will have 50% capacity and they

have to take half their seats out. business ideas that you guys might be thinking about or just kicking around >> you have to begin with floor plans. the ability to practice not social distancing because you want people to once again associate with each other in a much more community-based way, but you want physical distancing and in the absence of being able to physically distance in businesses large and small, retail and otherwise then it will take longer for us to ultimately start to toggle and start opening things up, but you're right we're in a world where you will be tested and you will have that thermometer test before you walk in you'll have the ability to sit around a restaurant like this and there will be waiters got earnly comi potentially wearing masks and until there's dynamic treatments and until ultimately there is the herd immunity and the vaccines that we're all hopeful for. by the way, california with gilead and not just researching

and advancing the trial, but manufacturing here in california and genentech and that is one of california's great resources and so we hope we are in the front of that curve, as well and as we come out and the treatment of the vaccine side then the economy will start to appear at the kind of scale where the physical distancing becomes less and less significant and ultimately will get to the point of some semblance of normalcy. >> yeah. and i'll wrap it up with this, obviously, because you have in your state facebook and google and the irony is that before all of this came about there were a lot of fights about privacy and sort of, you know, personal data that's been going on for years now we're talking about literally contract tracing and following people around with mobile and internet-enabled thermometers and this is probably more of a congressional argument, but listen, they're

probable coming to you too because they're in your state and what are you hearing about privacy concerns and how do you balance this all out >> if i was talking to you last year and the big debate in this state and this country was the work california was doing to lead in the privacy space. we were referring to some of our data, collectors as data frackers in a pejorative term, meaning there was a lot of consternation and you guys have covered this ad nauseam. it's predicated those partners are aren't maintaining our policy and we have the chief data officer and one of the ctos during the administration and they're advising us, and it is so pleased with the work mark was doing with the open arces is, if a nonindividual or programize