designed to provide the additional data needed and so we're expecting gilead's trials by the end of this month, so within the next week, and an nih study, which will be the gold standard in late may, scott. those will be the things to watch for to determine if this drug works >> we're glad you were able to jump on our program, as well meg, i should also note, that meg is going to have -- or at least, "power lunch" will have adam foyerstein from stat news he was one of the reporters on the story that said they did see the data before it was taken down off the w.h.o website so that's coming up. and i'm going to hand it over to kelly evans right now on "the exchange" as our breaking news coverage continues kelly? >> all right, scott. thanks, everybody. and hello. we begin with some breaking news on that potentially bad news for gilead's drug, remdesivir. let's check in on the stock, which had been halted for volatility and it's currently trading higher by a fraction of a percent. this is the comeback after we saw it dip much -- i'm sorry, there's gilead -- let's start over again, down nearly 5% on

the session today. you can see the spike lower after this news hit. it's lost a large chunk of its earlier gains after news of those poor results from this trial crossed the wires. dom chu will join us here to top things off with the markets, and this mover, dom, which has taken the whole market down a leg. >> let's kind of put into play and perspective here what exactly happened with those particular headlines coming out of the "financial times" with regard to that are now-seemingly leaked data to the w.h.o, with regard to the chinese trials, the first randomized clinical trial of remdesivir, the drug that had a lot of traders at least and investors more optimistic about a possible cure or a vaccine for the coronavirus. if you take a look at those gilead shares, that sharp move lower there did stop at just about of down 6% on an intraday basis when it was halted for volatility on those headlines. you can see right after trading reopened again, it bounced back, up to down about 2%, and we're just about down to 4 to 5% with

gilead the reason we want to show you that is because that particular headline and the moves in gilead stock did also have an impact on the broader market, as well. take a look at the moves here, in the dow industrials, s&p, and nasdaq they're still solidly higher for the day, but off the best levels of the day we want to key your attention specifically with the s&p 500. let's put up an intraday chart for you there. because you can see, that move there just around those headlines crossing did take a lot of steam out of the s&p 500. and as you can see, we've bounced back a little bit there, but that's the reason why those gilead headlines are so important right now, kelly, they did have a broader impact on the overall market, specifically with the s&p 500, kelly. i'll send things back over to you. >> dom, thanks it was just last week that stat news got its hands on gilead's drug trial, saying those results looked promise let's brick in adam feuer stest for more on this >> thanks for having me on, kelly.

so we, stat, published the story on these china results just minutes after the "financial times" did and this is a different study than the one that we had reported on a week or so ago so as meg terrell said just earlier on the previous show, that this was a study conducted in china, it was terminated earlier, and it failed to show any benefit for remdesivir versus the standard of care in patients with covid-19 >> so one of the things that meg said is that it's possible that remdesivir is more effective early on before the virus has really taken over the whole body do you think that that could be an important distinction here? >> meg's right, it is an important distinction. and there are definitely differences in the way the study was conducted in china versus the way that remdesivir is being studied by gilead and by the nih here so again, and i think meg pointed out that gilead has also issued a statement and is included in our story, which they are kind of disputing the results that were coming out of china and said, you know, that

in -- that in some of these patients, the data does suggest a potential benefit, particularly in patients that were treated early in the disease. >> well, where was the earlier study you reported on, where this showed more promise and how did you get your hands on that information? >> the study that we reported on a week or so ago, that was one of the studies that gilead itself is conducting and that study is being conducted around the world that's a different study we got our hands on a summary, snapshot of that study that was performed at the university of chicago. now, that study, those results will be out, hopefully, or expected to be out by the end of the month. >> so the whole public will know at least what the status is at the end of the month for that university of chicago study that gilead is conducting as part of a global study on whether remdesivir works so place this news from china in context for us

>> so there are multiple clinical trials of remdesivir in covid-19 patients. there were a couple of studies conducted in china obviously, the news today is out and that's what we're talking about. there are two studies conducted by gilead itself and another study that's conducted by the nih. so all of this data is out, publicly disclosed, by the end of may we've been told between the end of may and into may, all of these studies should have data in a relatively sharp period of time, we're going to have a very clear picture of what remdesivir does for covid-19 patients >> gilead shares are down about 5.9% right now, adam does that seem like too much of a move or not enough of one based on this news >> i was amazed at the market reaction to our report last week with the study i'm equally amazed at the reaction here. you know, i think what it just goes to show you is sort of how desperate people are for any

effective treatment for covid-19 and moving markets just shows you how people feel about this how much is riding on an effective treatment. >> and it's not just for gilead, it's for the entire public in the meantime until we can figure out how to scale testing better and how to down the road develop a vaccine, having better treatments for covid are probably the best way to get the economy back open and have people be less terrified of contracting this disease for remdesivir wib, its efficac everything for right now, what are the other possibilities in terms of being able to treat this well? >> you're absolutely right, kelly. given the fact that we'll have to wait a long time for a vaccine to protect people from infection, you know, the best hope that we have in the near-term are medicines that treat people once they do have covid-19 so remdesivir is one of those treatments that are potentially beneficial to patients we have to wait to see the data.

but there are other avenues, other treatments that are being developed, you know, companies like regeneron are developing potentially antibody treatments is one we should see results, potentially in the fall for. and so, you know, but you're right in that, you know, before a vaccine comes, we do need -- we do need medicines to show that they're effective and safe. you know, there are medicines like the inhibitors, medicines that are currently approved for other diseases that may be repurposed to use in covid-19. those clinical trials are ongoing, and hopefully we'll get those results soon but you're right in that in lieu of a vaccine, we definitely need to see some medicine that could help people once they are infected >> adam, quickly, before you go, what do you make of this whole back and forth now gilead saying they believe the w.h.o's post, which has since been taken down, had an inappropriate characterization of this study. what does this tell you about the w.h.o's handling of the situation? >> you know, we latched on to

the accidental posting of these results on the w.h.o website the same way that the "financial times" did we were obviously working on the story at the same time this literally all happened today, just literally hours ago. and so, you know, i can't speak to the handling of data by the w.h.o. and it's hard to even say how accurate or how complete the characterization of this study is, given the fact that literally, it was just a summary paragraph of the data, posted to the w.h.o website. so we haven't seen a complete manuscript, the data hasn't been peer reviewed. we haven't seen a full study report in those regards, gilead is correct. so we have to wait to see and wait for those final results to actually be more -- you know, more fully disclosed >> adam, thanks so much, for being able to jump on quickly and explain this more to us. we appreciate it >> all right, kelly. thanks for having me on. >> adam feuerstein of sat news

gilead shares we're watching closely and the whole public is as well. the dow is coming back somewhat. up about 188 points, and all of this lands after the terrible jobs information we got this morning. 4.4 million americans applying for jobless benefits last week that brings the total since the pandemic shutdown to more than 26 million let's get to steve liesman now for a closer look at these numbers. steve? >> reporter: kelly, good afternoon. yeah, extraordinary numbers that buy themselves would be absolutely historic, but they are down now for the third straight week, suggesting perhaps we've reached the peak when it comes to unemployment claim filings, but also maybe stays still have large backlogs. here are the numbers total claims, 4.4 million, as kelly told us. prior week, 55.2 million the total past week, 26.5 million. we take the whole thing as a percent of the u.s. labor force, that's 16% you can kind of think of that as perhaps a proxy of what's happeningin the -- with the

unemployment rate. so why do we look at these numbers? it's a number of job losses, also tellinging us something about the ability of states to process the claims the number potentially receiving aid. there's a silver lining to this. more people who get claims and help through this thing. and it tells us how much work we need to do to climb out of this particular hole. what we've done at cnbc is look at this by state, over the past five weeks and you can see, quite clearly, california leads with 3.4 million. followed by pennsylvania these are among just the largest states pennsylvania, 1.5. new york, 1.4 million. and texas, 1.3 million but when you look at it as a president of the workforce, very different kind of look here. michigan, 24%. one in four. pennsylvania, pretty close right there, one in four getting unemployment as a percent of the total workforce. that's one group that seems to be doing the best jobs here's a group that's doing maybe not as good a job in terms of processing claims look at texas, look at florida

virginia just did 11%. again, we can't tell is this inability of states to process claims, or maybe they've had a better experience. kelly, as you know, we've been following florida very specifically their number came with an estimate in the claims report, an asterisk that said it was actually just an estimate. because there is such a massive backlog there, kelly >> right i don't know if that's better, to at least, you know, kind of give us a ballpark of how many are there versus waiting for it to come through the data, which could take weeks steve, we appreciate it. >> sure. >> yeah, sorry we'll leave it there we'll continue the discussion. that's our steve liesman the flood of lost jobs is pressuring states to try to reopen their economies, while washington works to mitigate the damage the president signing an executive order this week, suspending immigration for 60 days, as part of an effort by the white house to protect american jobs. for more on these developments, labor secretary eugene scalia joins me now mr. secretary, welcome, it's good to have you >> good to be with you >> i do wonder if the fact that

some states are so far behind on these claims suggests this figure of 26 million already on the unemployment rolls could double >> well, look, the 4.4 million today, kelly, was a very difficult number to see. it's a high number as steve noted, it's coming down from what we've seen before. we know the states are making efforts to process claims more quickly. at the labor department, we've been working very, very closely with the states to help them we've now distributed more than $700 million in funding to the states to help them with staffing they are increasing their staffing substantially and also to help them with their computer systems, some of which are very holold. they're working hard we're working closely with them to get these processed and of course, the president and congress did make available to all of these americans that are losing jobs substantially enhanced unemployment benefits to help them during this period of time. >> the extra $600 a week, i

mean, is a substantial amount. at what point do you think this is too much of an incentive for companies to lay people off? >> well, that concern has been expressed, kelly i think providing a generous benefit that got workers as near as we could to the income that they were losing was considered important, given the sacrifice they were making, really for our national health. you know, that said. people need to be leaving work involuntarily. we can't have people quit to take that benefit. and they're not eligible for it. we're certainly reinforcing that with the states. and of course, this is the short-term we are very focused on reopening, as the president is and bringing employees back to work and keeping them safe once they're there, as well >> what concerns, if any, do you have about the way that the ppp program has been administered? >>. >> i think the paycheck

protection program is one of the great successes in the cares act and i'm very pleased to see there will now be additional funding for it the concept is to help workers by incentivizing companies to keep them on payroll and there's just been enormous interest in the program. more than 1.5 million loans made available and from my perspective in the labor department, that's about helping the workers by incentivizing companies to keep them on payroll. there have been some -- some hitches, as it was rolled out. some criticisms, but what really stands out is how successful and how large a program this was and how quickly it was stood up. people aren't accustomed to seeing the federal government stand up this large a program in just a few week, but that's what was done >> you know, the president's announcement about halting immigration almost went unnoticed this week, which was shocking, if you consider what a big statement that it was. is that because there are still a lot of -- i don't want to call them loopholes, but obviously,

there's nurses and essential health care workers that need to be coming into this country, farm workers, as well. what was the real substance of this announcement. and although it was announced during a crisis, should we expect to see it last for some time >> well, the president, really from the time he ran for office, has been focused maybe more than anything else on preserving jobs for american workers and rebuilding our economy and even as we talk about these really very hard-to-see unemployment numbers right now, it is important to remember how extremely well we were doing under his policies, just a few weeks ago. and the president recognizes, he's so focused on the reopening, and recognizes that among the things that might make it a little bit harder for american workers to get back into jobs, is competition from people coming in from abroaded so this is a 60-day suspension of permanent immigration to make it easier, as businesses reopen

for american workers to get into those jobs so it's one important part of what we're doing to help workers right now, and to reopen the economy. >> kayleigh mcenany, the white house spokesman, says this is common sense the american people can very well understand when americans need jobs, americans must come first. i read that and wondered if we should expect, then, in a downturn or when there's an event that adversely affects the economy, if we should expect suspending immigration to be part of that going forward with president trump? >> i think what we should expect of the president is that as he looks at this economy and wants to get back to the economy that he built, which was so strong just weeks ago, he's going to be looking at all the different ways that we can build that and he's going to be very focused on the welfare of american workers. that's why we've got these substantial unemployment benefits which are also being made available to the self-employed. that's why the paycheck protection program, keeping workers on payroll was

important. and yes, looking at the ability to have americans to come into these jobs, as the jobs reopen, is just another part of that, but it was not a long-term permanent change that was made it's something being done in connection with reopening this economy in the weeks ahead which is so important to the president. and, obviously, to american workers, too >> certainly is. secretary scalia, thanks for your time today. >> thank you >> secretary of labor, eugene scalia as i mentioned earlier, stocks are bouncing back somewhat after falling at the top of the hour on reports that gilead's drug trial in china didn't go well. is this a sign that the market itself is getting ahead of itself the market is up 240 points right now. let's bring in kim forest and bradwic mcmillan with the commonwealth financial network great to have you both here. kim, i want to ask you how important you think it is that the rest of the market -- that gilead has success with this drug treatment, remdesivir, in terms with the rest of the market >> well, i think any sort of treatment is key to getting

people back out into the world and i think whenever the results were announced of the trial last week that it went really well. i mean, you could see the market react. and it was a sigh of relief that if i get this, i may not die and that sounds really horrible, but i think that's what everybody who has to go back to work is thinking is, i have to be out there, you know, i'm going to do the best to protect myself, but what if i get this and if there is an answer that's provided by that drug, you know, i think that that could get people moving again. and that is acondition, i think, to really get this economy back >> brad, then, would you also characterize this as a big setback? you know, a treatment is arguably the most important thing right now. >> i think a treatment is important, but i think the important thing here is what didn't happen. yes, we saw the markets pull back a bit, but the markets didn't go negative the leading treatment actually was reported to have set back, yet the market was still up, and

now it's recovering. i would argue that -- not that we're past this from a market perspective, but we've incorporated a lot of the damage that's been done, and the market is now looking forward they know we're going to get there. i mean, a lot of the economic damage has been done a lot of the measures to mitigate that are in place and we know we'll get through this it's just a question of how long and this was just a trip in the road nothing worse. >> okay. kim, that said, what should investors do right now about the stock market and this idea that, you know, maybe according to the market, the economy is going to be much stronger than we think >> well, i am sure the economy is going to be much stronger than we think, it's just a matter of when and what i think you have to do as an investor is two things first, put your timeline way further out than you usually do. most people are looking at a year to 18 months, maybe, wherever they make an investment and i say three to five years is your new minimum

it's always my minimum, but i think that's really safe the second thing is any -- and i mean any company that you're looking at, you have to look at that balance sheet and make sure it can get through the next 18 months and you can't depend on cash flow and what it looked like last year. you have to look at the balance sheet and say, what if the economy doesn't get better because you don't want to buy a company that's going to go bankrupt you just can't so avoid those those are lottery tickets at this moment. and be an investor and invest in good companies >> and three to five years should be your new minimum brad, would you agree with that? >> i'll agree with some of that. i always think you have to look to the long-term, but at the same time, i think where you should be looking at is where the economy is going to be we've got the stimulus in place. and in fact, that's going to mitigate the damage. this round of the ppp program should help get us through and i actually think we could well see a faster recovery we're starting to see how the end game looks with that, you want to go with companies that are going to do

well technology, for example. consumer discretionary it's a little bit earlier to start planning the recovery, but it's not too early to start thinking about it. and if you really are looking over a longer time frame, that's where you want to be >> how much, kim, do you think -- >> i liked brad's answer a moment ago how, look, we had a big setback from arguably the most important treatment right now and stocks didn't even go negative how much more important is it to get positive news on treatments, maybe on testing, on antibody results, like we just heard from in new york this morning, where they found the general population might have 20% antibody levels, you know, developments of that sort? >> well, i think it's key. and i think the cheaper and more reliable, and maybe earlier that you can get to take something, i think that would give people a whole lot more less anxiety about reentering the world and maybe even doing things that, you know, are socially frowned upon now, like going to the movies or packed restaurants,

right? and that really would drive the economy, to get back more to normal, if we had that cheap, effective cure or, at least, thing that would get you through this -- the virus. so, yeah, i'm super excited, always looking for that. and i don't think it's outside of the realm of possibility at all, that it exists. >> and gilead just now, even, updating us and saying, the study results in china that were inadvertently posted to the w.h.o website were -- or the study was terminated early due to low enrollment. they say it was underpowered to enable meaningfully statistical conclusions. so we'll continue to hear both from the company and from others involved, the journalist and so forth, about what to take from this but thank you both for now appreciate your thoughts today >> brad mcmillen and kim forrest talking us through these markets. you're, meanwhile, looking at a live shot of the house of representatives where members are expected to start voting on an additional relief package

shortly. kayla tausche joins us now >> reporter: what you're looking at is socially distanced debating on the house floor right now as members are set to vote on that $484 billion interim stimulus package the vote this afternoon is going to be a little different you're going to see smaller groups of about 60 lawmakers voting at a time they're asked to stay in their offices until it's their turn. they will be wearing masks, as you're seeing many of them doing right now. final passage, i'm told, by aides is expected around 6:30 this evening it's what comes next that will be quite contentious the gloves are already off with senate majority leader mitch mcconnell suggesting in a sirius xm interview last night that perhaps states should be able to declare bankruptcy mcconnell telling hugh hewitt this, saying, i would certainly be in favor of allowing states to use the bankruptcy route. it saved some cities and there's no good reason for it to not be available. you can imagine that sparked some backlash among many

governors. here's new york's andrew cuomo today. >> you want to see thatmarket fall through the seller? let new york state declare bankruptcy let michigan declare bankruptcy. let illinois declare bankruptcy. let california declare bankruptcy you will see a collapse of this national economy >> the white house and treasury have suggested phase iv can come soon but with this level of political tension on some of these issues, kelly, could be a while before they reach any sort of agreement. >> oh, yeah, that one's a hot one in terms of what comes next and any relief efforts in the meantime, we'll see if that vote advances today kayla, thank you so much kayla tausche in washington. meantime, the treasury department issuing some new guidelines to limit relief loans to big companies this in response to criticism that too many of them are getting money meant for mom and pop. kate rogers is here with a closer look at how main street may be getting pushed to the back of the line and robert frank has a look at how the banks may have helped their private clients get more

funding more easily. kate, let's start with you >> hi, there, kelly. that's right, well, the u.s. treasury issuing some new guidance today, potentially limiting the access that larger companies would have to this next round of ppp funding, specifically stating that current economic uncertainty would make that loan request from businesses necessary and that current business activity and access to other sources of liquidity will be taken into account. this after a "new york times" report on an alleged two-tiered system at big banks that favored wealthier clients over main street businesses. barry o'donovan, the owner of killkenny house and pub in new jersey says he was exasperated by that news which reflected his own experience with santander. he's had a personal and business relationship with that bank for nearly 20 years. he said he thought he was top tier but didn't get access to the funds. >> to the banks, we bailed you out in 2008. we, the people of the united

states, badly yiled you out in 8 you were too big to fail >> reporter: his application is in with the bank he's hoping he will get access to one of these ppp loans in round two. for now, he's lent his own business some capital from his own nest egg we all know that can't last forever, but he's able to stay afloat in the meantime, kelly. back over to you >> that was a pretty compelling remark from him. kate, thanks so much kate rogers. let's get to robert frank right now with a look at some of those big bank clients that have received their loans robert >> well, kelly, more than 90 publicly traded companies receive funding under that ppp program, totallyi intolding $36n for many of those publicly traded companies many have been burning cash and warning of business failure way before this covid pandemic many pay their executives seven or eight-figure salaries before this and some of them say, even now,

they don't plan to bring back their laid off workers all of which has raised questions around how the banks decided who got funded now, nearly 8,500 of jpmorgan's private and commercial bank customers who applied receive funding, nearly all of them, were assisted by what some called a concierge banking service. now, only 1 in 15, by contrast, of the smaller business customers, actually received those ppp funds. jpmorgan saying in a statement that the vast majority of its loans went to smaller business clients and that it has helped ensure paychecks for more than 1 million hard-working americans it remains to be seen whether this new language which has to show that there is a need by the business and whether they cannot access other sources of capital will solve this. they did not specifically ban publicly traded companies from receiving ppp funds, kelly >> they might say, look, they have employees, too. but that's why, if there was

unlimited funding, it would be one thing, but if there is limited funding, these stories will continue. thank you, robert frank. coming up, no live sports is accelerating cord cutting and sending ratings into the you know what. a bad combo. how bad, next. plus, one area of the energy supply chain that's been benefiting from the global glut. and remember, you can always watch or lteisn to us live on the go on the cnbc app "the exchange" is back in two minutes. so you can keep your patients cared for. your customers served. your students inspired. and your employees closer than ever. our network is resilient. our people are strong. our job is to keep your business connected . it's what we've always done. it's what we'll always do. - we did it!c) (crowd cheering) - [narrator] wherever you start, snhu is where you can finish.

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welcome back the dow wiping out most of its early gains. we're still pup about a hundred points right now around those conflicting reports around gilead's remdesivir drug trial over to sue herrera for the headlines this hour. sue? >> thank you very much, kelly. good afternoon, everyone not very good news out of new jersey new jersey now has almost 100,000 confirmed covid-19 cases and more than 5,000 deaths governor phil murphy saying just moments ago that while there are some signs of stabilization, the state can't ease up one bit on

social distancing. instacart is planning to hire 250,000 more workers in six regions where demand is highest, in addition to the 300,000 new, full-service shoppers hired over the last couple of weeks the food delivery service says order volume grew by more than 500% last week, compared to 2019 staff at a hospital in spain held a minute of silence today as a tribute to their colleague who died yesterday of the coronavirus. the 57-year-old emergency room assistant was the first health care worker at segovia general hospital to die from the virus, as spain's death toll now tops 22,000 people. we'll have more numbers for you next hour. as always, you can get more on the coronavirus coverage by going to cnbc.com. kelly, back to you >> sue, thanks very much our sue herrera tonight, no hugging the commish,

no hugging and hooting crowds, just a hour-long zoom call it's a bad combo for an already fragile cable bundle julia boorstin has been tracking that story for us. julia? >> kelly, that's right the nfl draft is expected to deliver record ratings to abc, espn, and the nfl network, but the halting of all live sports is wreaking damage both on tv ratings and on the paid tv bundle a new survey finds that 64 percent people say they stopped paying for live tv or never subscribed and that number is 74% for younger americans. the longer live sports stay dark, the greater the risk americans drop live tv the same study finds that 60% of consumers say sports are the reason they are paying for the bundle and while overall tv viewing is up, sports network ratings have plummeted. last week, espn was down 42% nbc sports was down 80%, and fox sports was down less, just 12%,

because nascar is a virtual i-racing as well as horse racing these declines are weighing on disney, fox, as well as comcast and at&t, which are exposed to both cord cutting issues as well as those sports rating declines. back over to you >> so they've tried different types of things. espn had the horse competition, julia. are they doing this big golf match ygolf matchup? espn bumped forward the michael jordan documentary it's just not moving the needle, is it? is it all going to depend on the nfl season, at this point? >> well, look, there are a lot of hopes that the nfl season will stay as scheduled, but i think what's interesting here is espn is trying to create a routine of airing different major league sports games that are old or old matches and trying to make it a regular thing. so you have football one night, baseball another, basketball another. but still, even if they get some fans to tune in, they're not going to get the same ratings that they used to. and interestingly, you mentioned

the michael jordan documentary that's gotten huge ratings, but it's still not as much as you would get from a huge blowout game so we'll see what happens. i'm hearing from a lot of sources that they have a lot of discussions about either trying to get basketball or baseball to start up again this summer without fans in the stands and that's something to watch. >> yeah. i think brady and gronk could save the cable bundle. it's all up to them, julia, to tampa bay. hopefully they can get that season off and we'll see how they go with the draft tonight julia boorstin, thank you so much coming up, new home sales falling sharply last month and that might just be the beginning. the shock that could still hit the housing market is ahead. meanwhile, oil is clawing its way back after its historic collapse earlier this week but one sector of the industry is booming it's the tankers we're going to talk to the ceo of one of the world's largest ship owners, next. as we head to break, let's take another look at the markets. the dow hanging on to a gain of 161 points, pretty consistent arlf a percent gains across the bod today, again, slightly off the highs of the session we're back in two.

welcome back to "the exchange." let's get a check on the markets and some of today's biggest movers with dom chu. >> markets have lost some ground in momentum as we head towards the mid-afternoon. we are currently up about a half a percent on the dow, s&p, 500 and nasdaq at the highs of the day, the major indices were up about a percent and a half or so that translates into roughly 409 points at the highs for the dow. sectors have been mixed, though. check out what's happening with energy, on the back of those higher oil prices, you have industrials and materials rounding out the top on the laggard side of things, you've got utilities, real estate, and consumer staples they are the ones lagging the market overall some stocks to watch today, you've got target after the big

box retailer said online sales have surged, given the coronavirus lockdowns, but that many customers are on tpting toy lower profit margin items. shares of apache, the second best performer in the s&p 500, as oil and gas exploration companies gain and keep an eye on shares of intel. the computer chip maker and dow component reports earnings after today's closing bell it could be one of the more volatile stocks in that after-market session, kel. >> thank you, sir. well the plunge in crude isn't just going to crush investors. it's also going to be a job killer and a budget buster for states like texas, oklahoma, alaska, and north dakota just check out the drop for wti's recent high of nearly $75 a barrel back in late 2018 all the way down to have $16 and change today scott cohn is here to take us through the state-by-state impact scott? >> yeah, and it is a significant impact, kelly. you know, not only are these states dealing with the effects

of the coronavirus, they are also now losing a part of their lifeblood, which is oil. take a look at texas, which is the largest oil producing state. yes, they diversified their economy over the years, but their tax base not so much so when oil industry producers cut back, it hits this state hard >> it crosses all socioeconomic bounds in the state and it can't help but have a really dampening effect on what has been, i think, arguably, the most successful state in the country in the last ten years. >> take a look at severance taxes. these are taxes that states levee based on the market value of the oil $5.8 billion in texas brought in last year. that's about 5% of revenues. in north dakota, 2.6 billion or 8% new mexico, 1.5 billion or 6%. oklahoma, $1.1 billion or 9%

in alaska, that $888 million represents more than half of the state's annual tax revenues and the state has already reduced its projections for next year by an amount roughly equal to that. and that does not include other things like royalties, property taxes, and kelly, of course, all of those jobs. >> yeah, and that's the focus for them and for so many other industries right now scott, thanks! scott cohn with the state-by-state impact. and those states may be feeling the pain from the collapse in the oil price, but tanker companies could benefit somewhat from the scramble to secure storage for this oil surplus for more, i'm joined by kenneth veed, chairman of tk tankers and l&g partners kenneth, it's great to have you here are your ships turning into storage vessels? >> hi, kelly thanks for having me some of them are i would say, the way to think about our company is we are in two primary businesses we're in energy transportation, that is kind of long-term.

we have a ten-year contract, around $10 billion of forward fixed revenues that's very stable that's kind of a floating l&g pipeline from time to time, we do store gas there. but most of the time, we transport it and on the oil business, which is a business we've been in since 1973 so we've been -- we've seen quite a few economic, oil, and tanker cycles over the years what we are doing there is essentially also being floating pipelines, and from time to time, when we have situations like we're having now, where there's more oil produced than what's being consumed, we're seeing tankers being used for storage. but it's a bit more of a nuanced picture, i would say because already in the fourth quarter, we saw that our rates were very strong we saw earnings very high in historical terms, and it's just continued up >> it's continued up >> yes

so first quarter is going to be stronger than fourth quarter and second quarter looks even stronger >> why is that because fundamentally, you're still moving crude around that people have no demand for today. so are you simply moving around the backlog of production and trying to figure out where to put it >> if you think about it, right? there are three types of crude oil tankers that the world is looking at vvrcs, that can carry 2 million barrels. there are those that carry 1 million. and those that carry 700,000 barrels. we have focused on the sous maxes and afro maxes and basically the way that the market works is a supply of ships versus the demand for those very ships and what we have seen over the past couple of years is that we are probably sitting at 80 percent utilization of those vessels. when we got into q4, we saw it come up to 85, 86%

and what you're seeing now, because more and more of our customers are using our tankers for storage, is that utilization is coming off. and that's driving up rates. >> so if anything, you guys have to be worried about what happens once the market normalizes and once they are no longer trying to turn ships into storage vessels, but just use it to transport things more generally. it's a nice position to be in, very few companies other than maybe those that sell toilet paper could enjoy that benefit right now. >> that's true and just to give you a sense of the magnitude of this market, right? in fourth quarter, tk tankers, which is our tanker business, generated annualized free cash flow of $400 million based on today's rates, we just booked a couple of tankers at $100,000 a day we're generating closer to 750, $800 million of free cash flow and if you look at the market cap of tnk, that's about $800

million. we have just over $800 million of debt at the end of the year and so, this is -- this is a kind of market and the reason why people become ship owners. >> the bear market for oil is a bull market for the tankers right now. kenneth, thanks for joining us to explain >> thanks for having me. kenneth hvid is the ceo of teecte teekay group and check our interview with the ceo of paterson-uti business, i look forward to speaking with andy hedricks. also, we get to some of the street's biggest calls and the street's biggest new amazon bull and a new cnbc survey takes a look at the states that could be hate hardest by the pandemic and president trump's job favorability rating there. "the exchange" is back after this since 1926, nationwide has been on your side.

we've been there in person, during trying times. today, being on your side means staying home... "nationwide office of customer advocacy." ...but we can still support you and the heroes who are with you. we're giving refunds on auto insurance premiums, assisting customers with financial hardships, and our foundation is contributing millions of dollars to charities helping with covid-19 relief. keeping our promise to be on your side.

welcome back let's get to some of the calls

of the day biogen was cut to sell by citigroup, citing its fda filing delay by a key alzheimer's drug. they set it doubted the approvability of the drug in the first place. raymond james also downgraded the stock today. it, too, did not think biogen's drug would make it to the market the shares are hanging on, though, relatively speaking. only down 2%, trading at 294 this afternoon next up, evercorps getting cautious on the whole media sector today, downgrading the likes of viacom and "the new york times." but staying positive on disney for the long-term. on disney, evercorps did slash its target, but said the headwinds related to covid have now been priced in it also seize upsides to disney plus subscriptions the longer people stay at home. disney shares are higher to 101. and goldman is unseating jeffrey's as the biggest amazon bull on the street, upping its price target by 300 bucks to 2,900 and reiterating its position on their conviction buy list goldman seeing increased demand for retail, amazon web services,

and amazon's ad businesses they're saying the pandemic tailwinds will steepen the curve of amazon's long-term growth rate those shares are up about a percent and a half today meanwhile, a recent cnbc poll found michigan and pennsylvania are the top battleground states for job and wage losses. ylan mui joins me now for a look at what that could mean for residents there and their views of president trump ylan >> well, kelly, our survey with change research does show that's where the economic pain is concentrated take a look at the percentage of voters who have lost their jobs or been furloughed or live with someone who's been affected. nationally, 1% of voters have personally experienced a job loss or furlough 23% say someone in their household has, but in michigan, those numbers are higher 24 and 27% in pennsylvania, it's 22 and 27%. and even for workers who still have their jobs, they say their wages are getting whacked. in michigan and in pennsylvania, just over a third of voters say

someone in their household has lost wages and that compares to about 27% nationally now, kelly, there was some good news in this poll. nearly half of workers in those states say that they have received their coronavirus relief checks. kelly? >> ylan, we haven't heard as much lately about those checks we know there are a few glitches when they were first sent out, depending on the people's status with irs refund advances and so forth. does this suggest that they've actually gotten out to a good portion of the public where they were promised? >> it does you know, i was a little bit surprised by how high the number was, particularly in these battleground states. so it does look like people are getting those relief checks. one interesting note, though, in the poll, is that even amongst people who approve of president trump, a plurality of voters felt that they did not like the fact that he signed the check personally >> i know that was a whole thing. all right, ylan, thank you

again, maybe a preview of how people will feel come november ylan mui with the latest there meanwhile, new home sales for the month of march saw their steepest drop in nearly seven years. and according to a new note from bank of america, there could be more pain ahead. that's next. as we head to break, take a look at the dow winners today exxon and chevron are helping to lead the way, up as oil continues to rebound, 'lbeacafr isuick break. ♪ ♪ ♪ ♪ ♪ ♪

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welcome back the housing market is in for a substantial shock. as bad as the data has been lately, much worse is to come. bank of america is predicting new home sales will drop 51% from their recent highs. joining me is michelle meyer

tell us how long do you think for the drop and is there any chance it doesn't get that bad >> sure. we're forecasting that, a 50% decline in new home sales. housing starts a bit more existing probably less than that. we're going to see a sharp decline. probable by midsummer we reached that low and then we worked towards getting to a recovery to the end of the year. it's hard to see how you don't have a sharp decline in housing activity and as a result of the job losses, income shock, negative shock there's a lot of things that aren't working favorably for housing in the near term >> maybe it's easier to talk about the near term from the shutdowns and the halt in activity

what do you think happens longer term what happens now >> you raised a few really good points first ask to compare it to the housing. this is a very different housing market heading into the last housing recessi recession, it was a very large share of the economy there were excesses in terms of construction and leverage. that's not the case today. the housing market is pretty lean you're going to see a decline in demand because of the nature of this recession i do think that means the future looks more promising in that we will be in an environment where inventory will be low. home building will be low relative to fundamentals, relative to household information rates. you get a recovery it might be slow in the beginning given the nature but

the fundamentals suggest a brighter future ahead of housing especially relative to what we had in the last housing bust where it took years to get to a recovery >> i'm getting mo inting more w about the mortgage industry because thank bank ey aren't do helocs do you see this pushing people out of cities and into the suburbs and would anyone like to buy my neighbor's house? >> there's a question about the structural changes and how people's preferences are adjusting. urban centers are highly populated and dense and not good for pandemic a lot of people have started to think about relocation and if that leans to more permanent preference changes we had a number of structural changes in the housing bust in the opposite way people moved from the outskirt

sbo into the cities. that seemed to be the preference to renting to smaller properties to urban areas it's possible that now starts to switch on the back of this pandemic you do have to think about how preferences adjust because housing is so personal >> i wonder about people who might say i wonder if i could keep my job that pays big city money and i could live somewhere cheap. what do you think in terms of the lower price segment that had been the strongest going into this is it the strongest going out or does it suffer the hardest hit >> when you think a bt tabout t staj stage it was the higher market finally have highs of income gain after the last recovery unfortunately, that's where you're probably going to see the biggest hit, initially given the

more budget constrained nature of those households and they won't have the income for the down payment or have the willingness to take on such debt or burden at the moment to purchase a property. i do worry initially about the lower end of the market getting hit first but at tend of the day, if you have such a big adjustment demand, it's really hard to not see that on an aggregate basis. >> great stuff we appreciate you guys digging into it and trying to come up with some of the longer term effects. thanks for joining me. our breaking news coverage will roll on with power lunch after the break as energy prices plunged and more rigged shutter daily. the oil sector is getting crushed. the ceo of patterson-uti energy will join us the dow giving up almost all of its gains. it's up less than 100 points the s&p and nasdaq have turned

negati negative we'll have much more on that in power lunch. stay with us here's the thing about managing multiple clouds for your business. when you've got public clouds, and private clouds, and hybrid clouds- things can get a bit cloudy for you. but now, there's the dell technologies cloud, powered by vmware. a single hub for a consistent operating experience

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welcome back welcome to my house. our breaking news coverage continues now. stocks are well off their highs at this hour the dow giving up almost all its gains now. up about 100 points, 111 as chick i check my screen down there we will have a full explanation on