you use it once. >> steve weiss >> joe had a great call on the xbi. final thought, is i'm going to wait for more of a dip leer and be opportunistic when stocks are crushed. >> thank you guys very much. we appreciate it kelly evans now picks up the breaking news coverage right now. thank you, dom hi, everybody. on this friday, welcome to "the exchange." the markets are limping to the finish line after another exhausting week and the biggest week of earnings for next week the major averages are pace for the first down week out of the last three we were up nearly 200 at the highs. nasdaq up. crude is closing out the week as a teenager it's just under 17 bucks a barrel but that big winner after going negative crude today up nearly 3% it is better than minus 36 which is where the may contract

settled at the start of the week we need to keep a close eye with the rig count number give us a sense of how much supply is pulling back to correct the markets. before that, we have some breaking news out of washington this hour. the president making headlines eamon javers joins us. eamon? >> the president finished signing that $484 billion economic aid bill in the oval office and had reporters saying he made comments, one is interesting he said he talked to tim cook of apple who told him that he expects that the economy is going to have a v-shaped recovery here, bounce back very quickly, after this virus problem so that's maybe some encouraging news from tim cook of apple the president suggesting that the u.s. government might step in this order to help oil and gas companies and airlines treasure secretary mnuchin saying they're looking at

several options and saying that it can be assumed that the u.s. government is looking at taking stakes in energy companies, as one option here. the president talked according to reporters about the idea of the u.s. government buying fuel in advance and also buying airline tickets in advance as a way of helping the airline industry so that's something to watch for and then, kelly, on those comments that the president made yesterday about the use of disinfectants inside the body and uv light inside the body, those have gotten ridicule online the president said he was being sarcastic and should have been obvious to everyone. back over to you. >> thank you we'll continue to monitor the situation in washington. stocks are modestly higher as investors digest earnings on the way for week let's more from bob pisani. >> good news to pass that interim coronavirus relief package overall but we are stuck

right now. we need more news to move the market forward let's show you the sectors ahead for the week dow jones industrial up for the day. we are still down 2.1% for the week on the s&p. stuck in the middle a last couple of weeks here semiconductors doing well. there's the leadership group for the week consumer staples up today an bouncing around. not a lot of clear leadership. health care the same way energy up all week and first day of the week on the downside and investor having a lot of problems for obvious reasons number one is boeing down 15% for the week. right by the lows for the month. durable goods number not particularly good. a man reason for that is boeing. general electric to the downside, down far little while here that's sitting near 52-week lows on top of that, weighing on the industrials, as well intel on that report their earnings report of a beat but global growth head winds

outweighing the stay at home sales and giving guidance for the current gint thquarter they declined for the full year. >> we have talked about that we'll see what next weeks brings, bob. thank you. next week the biggest week of earnings. some industrial names, auto names the list goes on if you think about tuning out, you are like many to write off the whole season to due to coronavirus but one investor said the earnings are really important. take a listen. >> i would resist saying it doesn't matter this earnings season is providing us a ton of information. that's important in market of individual names so there's a lot of focus on balance sheet strength, lot of focus on cash burn, on access to

markets. that's important because it tells you how well companies will navigate this very difficult period >> joining me now more is jim paulsen and david leibovitz. david, i'll start with you and in a way the whole country's experiencing a stress test right now like the banks are used to going under. if you don't pass you might not survive. >> i think the first thing that's important to recognize is that the global economy is in the process of being locked down and what we're fundamentally dealing with here is a cash flow issue and that's why i think focusing on some of the earnings announcements and some guidance we're getting is so important. cash flow is drying up for both consumers as well as businesses and so the stadium lus packages that we have seen passed up until this point are meant to bridge the gap of today and the economy coming back online

but we really don't have a good sense as to whether they're going to be able to make that journey so i think figuring out the starting point, the first quarter earnings reports is providing us is particularly important of a sense of how we're oriented to work through this. >> jim, we are showing some thoughts on this market right now, thinking the bottom is near but to mohamed's point, i wonder if it's not about picking the low-cost sector etf but if the point of the exercise is for individual investors even to maybe determine which companies they think are safe for the long run an which might not be. >> you know, i sort of subscribe, kelly, to the other side of the argument here that it's -- i think there's not that much information in data that's just freefalling whether it's economic data or earnings data. freefalling data we know the reason behind it if you put the economy in the

off position, da the's going to freefall i think the next important point will be when data sorts to bottom which i think we're getting close to economic data in particular and part of the reason it's getting close to bottom because it fell so much so fast like everything else in this bear market i think the data might city really weak for a while and bounce around the lows when that happens i think it starts to reconnect investors, companies and policy officials back to fundamental information to start to decipher and delineate. i think it does a lot of good things including allowing investors to discriminate between who's doing better than other parts of the economy and what that means, companies it might give them a sense of a -- maybe having a sense that they can make through this crisis and

policy officials to adjust the policies to meet certain areas not recovering as fast as others. >> you would wait a quarter or two until that process of clarifying what's happening in the economy really happens david, i was going to say that i think the market's already said, yes, the economy is bottoming and priced that in and what happens next and do the slow reopenings turn into fuller reopenings or turn into shutdowns again >> i think really the key risk when we take a step back and think about it, i would agree with jim, you look at the flash pmis of yesterday, builds and expectations around what's happening with the data and it does feel like we are getting close to a bottoming out in economic activity but, you know, very much of the view that while you can turn an economy off with a light switch you can't turn it back on in the same way. you need to use a dimmer and i think that the real challenge here is going to be reopening the economy.

telling people that they can be going out again is really the only first step and think about whether people be comfortable going out? and more importantly, will they be at a position to rehire the slack in the process of being created in the labor market? the big risk to my view is that as we turn this economy back on, there just isn't sufficient demand to reabsorb the individuals that have lost the jobs over the past couple of weeks. >> jim, just a chance, if there's any companies or investment strategies you think right now you can already bet on. >> well, kelly i would take days like today that are up somewhat, to lighten up on defensive assets in your portfolio i think they're extremely overvalued the price of cash on a pe basis is infinity. the price of the 10-year bond is 200 times earnings gold, the other commodity price,

at a 50-year high. doild that on bad days which we would have i would start to add to the areas not participated in the previous bull and remain at good values and largely underowned and sick lackals, emerging, small caps, high beta type names. and have a portfolio that's positioned for recovery because i really think that's the next place this crisis is going. >> all right well put both of you. thank you for your time today. >> thank you for having us. rig counts are out we have been keeping an eye on with the massive volatility in oil. they cut ricks for a sixth book in a row at 378, the lowest since july of 2016 remarkably, even with that big contraction, it is not enough to push wti crude above $17 a barrel in afternoon trading. we are hanging on to the gains

moving towards the close next hour. a growing number of borrowers are delaying the monthly mortgage payments as the sld grips the economy. new data from black knight finds 3.4 million borrowers in forbearance plans. let's bring in andy waldon how does this track with your kind of the worst case and sort to speak best-case scenarios >> we are right on track and the good news is coming out of this daily observance of activity is we have started to see the volumes come down over the last couple of days we have gotten past the 15th of the month where the late fees are typically charged, earlier in the month you saw homeowners trying to get the plans before late fees were enacted now we are in a little bit of a lull and the question is where do we go, getting closer to the may mortgage payments due, do we see a second rise or second wave in forbearance activity? the modeling team watching that

daily rempl activity, tracking unemployment activity and tying it back to the great recession to get a gauge of what we could be seeing here. >> because that's an interesting point. i want to be encouraged that the activity lightened up but like you said it depends on what happens when the may payments come due and how people feel about the economy then i guess my question is what is the underlying condition of the mortgage market? because we have heard so much about different companies tightening standards and realtors are warning people with homes on the market, hey, might have buyer that is don't have access to the house even if they want it. >> that's exactly right and seeing waves hit every segment of the market. impacting originations, credit variability and the padding that they add to interest rates and impacting mortgage performance as we just discussed and then the housing market certainly being impacted there, as well. you are seeing some short-term impacts in terms of social distancing so number of homes being listed, number of

homebuyer demanld in the market, starting to see that bottom out in some states an pick up a little bit but a lot of impacts there and then further downstream at housing, obviously the improvement in fundamentals, right? so the improvement in the forbearance rates, the homebuyers and then participate in the housing market downstream come into play there, as well. >> all is important trying to give us a sense of is government relief helping the housing market overall or, you know, causing more chaos and potentially affecting more people than directly affected by coronavirus? to that point, fannie and freddie are buying mortgages in forbearance. it's an unusual move and charging a lot to do so. how are the fees working into higher mortgage rates if they are or willingness to participate in the program >> yeah. i think it has a number of different effects. certainly it impacts willingness to lend.

lenders trying to gauge the loan is still performing two weeks from now i think that's part of the equation in terms of liquid dating, they're required to advance four months of payments if we look at homes under forbearance, that's $7 billion in monthly advances just today over the next four months so obviously impacts on origination and liquidity and servicers, as well. >> 6.4% of all mortgages are now in forbearance and at this point where do you think that peaks? >> it really depends on what we see from unemployment in coming weeks. there's still as many unknowns as knowns in the market. under a goldilocks scenario of unemployment peak where it is right now an the economy to reopen relatively quickly, could be 8% to 10% range climbing to 30% unemployment and doesn't peak until june we could be looking at upward of 15%, 17%

or higher in terms of forbearance rates. >> wow andy, thanks. >> absolutely. thank you. >> the latest recap and update coming up, states across the country have been shut for weeks and causing another major problem which is a lack of revenue for state governments. can the governors work towards a path forward we'll explore that. plus, some retailers were already on the brink before this crisis but now some who didn't need a lifeline searching for one, too. antibody tests are considered key to reopen and raising alarms an expert said it's the wild, wild west out there. ayitusst wh ike your team is operating just fine remotely. yeah, everything is running smoothly with the now platform. (bling) see, incident resolved. how did you... gotta enjoy the small wins.

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welcome back the pandemic shutdown had emptied state coffers and state officials are lobbying for more federal help as they try to figure out how and when to reopen senate majority leader mcconnell suggested letting the states go bankrupt contessa brewer joins me now with more. contessa >> reporter: these are desperate times for state and local governments across the nation. coronavirus has ramped up their spending and slashed the revenues in catastrophic ways. unemployment claims have skyrocketed, most of which the states themselves pay for. you've got lots of state and county, city governments, instituting hiring freezes or cutting jobs altogether,

furloughing workers and asking what's next? essential services here's a look at the state's rainy day funds, the operating budgets. new york, new jersey, louisiana, these are states slammed by coronavirus that have very little safety net to fall back on the house of representatives yesterday passed a new relief bill that provides nothing for states today governor cuomo just dared mitch mcconnell, the senate majority leader, to pass a law allowing states to declare bankruptcy. >> you want to send an international message that the economy is in turmoil? do that. allow states to declare bankruptcy legally because you passed the bill. i dare you to do that. >> reporter: new jersey, louisiana senators have introduced a bipartisan bill in the senate to provide $500 billion in funding for the

states, that's exactly what the national association of governors has asked for, kelly. >> oh, but it's interesting. same discussion of states as companies chchlt are the ones to fail anyway. i think, you know, you could take one approach and say it doesn't matter who was in what position and providing a certain omt to everybody but i manage it's much more complicated than that. >> reporter: yeah. you're absolutely right and that battle is taking place both in politics at the national level and then right down at the local level, as well, because all of that money from the federal government, everybody's got a stake in this, and saying but we need direct funding from the federal government, not a trickle down. >> you're right. right down to the towns needing help, as well. thank you. as the states look to reopen the focus shifts to testing, both for the virus and for its antibodies and on a call with reporters today, the ceo of roesh had harsh words for the antibody tests out there.

>> look at the performance of these and bodies and i can tell you it's a disaster. it is a disaster these tests are not worth anything or have very little, very little use. you see how emotional i am here but i find it, you know, some of these companies i tell you, this is ethically very questionable to get out with this stuff. >> rarely hear that talk from a ceo these days my next guest said any public health response was doomed to fail on testing. i'm joined by michael olsterholm great do have you here >> thank you. >> if testing isn't the answer, what is? >> first of all, the testing is a very important part of an answer but part of it but i think the real question is, what kind of testing when, where and how? as some of us have been talking about for the last six to seven weeks, we have a major shortage of testing in this country because of the lack of reagents

and the lack of the ability to get the test swabs, that's different than not wanting to test we do want to test i think the other thing you just heard from the representative from roche is exactly right. many of the tests aproofed by fda are disasters and shouldn't be on the markets and we have to clean that up to make sure that the tests used are the best ones. >> why would the fda aproprove test that is aren't reliable >> we think in a how shall i say it public relations and the political world. the cdc's inability hampered us and then the fda responded with several different actions where they opened it up under an emergency use authorization, they made it possible for companies to come on that basically almost all they had to do is a shingle saying testing and they could get their particular test at least on the fda list, not necessarily

reviewed this is a wild, wide west in testing. we have got to clean that up at the same time to do everything to assure that these reagents and that these other chemicals and so forth we need for the tests can be acquired by the states and the companies doing the testing out there in the states. >> right you are basically saying that the testing could be the way to reopen if we had it at a big enough scale and almost unimaginable scale with a company basically testing everybody every kay. on the issue of not having enough, you mentioned reagents a couple times there's a shortage of chemicals? who produces them? >> yeah. >> how can we ramp that up more quickly? >> think about just the very brief history here before the wuhan outbreak occurred in december, the world supplied bay normal manufacturing process of the reagents call it the garden hose. after wuhan happened and saw the major testing in china, the

industry had to respond in a sense with a garden hose to a now fire hose kind of level but then when the whole world caught on fire with covid virus the world wanted testing and suddenly the need for these reagents were unprecedented and didn't plan or couldn't plan for that, we didn't have the kind of manufacturing capacity so now what we're trying to say is we need a mar shael plan, should have had one eight weeks ago to say you can anticipate this. we need to figure out how to get the reagents made and not just in the united states remember the whole world wants these. so, that's what happened it didn't occur. instead of what we heard day after day after day after press briefings, enough testing now, enough testing now, enough testing now. now that you have heard from 50 governors telling you there isn't enough testing and reagents and the swabls are the problem. >> so while we face the challenges, we also know we're facing a potential economic

depression and a shortage of grocery supplies if the company is not staying open. what would you say is most important to support those efforts? does it come from the health care, hospital system? does it come from even the basic personal protection equipment? the testing issue aside, what is needed here to make working as safe as possible for everybody >> there are basically three major points we need with these we can do a lot one is we have to have the testing available, the pcr testing and testing sick people, not big surveys but as willie sutton said, why did i rob banks? that's where the money is. we know in the states if there are cases and occurring and increasing or decreasing, testing the people who need a test right now today because they're ill gives us a basis we have the capacity to respond to a surge so if we do miss it and we don't have the timely

response that holds down a comeback of the virus, these companies can hanld l it and not just supply rs for patients but also protective equipment for health care workers and the third thing we need is public health agencies that have these other kinds of surveillance programs we call them syndromic surveillance, looking for people coming to the emergency room, all good measures of something happening. if we have those we can do the break in the accelerator combination to do the reopening and same time help us know, wait a minute, things are starting to pick up. we don't have all of that put in place. >> yeah. >> that's where i have a concern. >> absolutely. and very well articulated. michael, thank you for joining me. >> thank you. >> appreciate it very much today. we're going to take a quick break. coming up, show me the money or the cash flow. we dive into a sector and hunt for companies to reinvest, return capital and pay debt right now. plus, 1 out of 3, how many

beers poured in the country is a craft beer but they're suffering. we'll speak with the founders of sam adams and dog fish head of the help they're seeking you can listen or watch us live on the go on the cnbc app. we're back in two. for your busi. 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 across all your clouds. that should clear things up.

welcome back the very latest in the coronavirus pandemic over to sue herera sue? >> kelly, thank you very much. good afternoon, everyone new york's governor cuomo challenged senate majority leader mitch mcconnell today for suggesting the states to declare bankruptcy due to the coronavirus pandemic daring mcconnell to pass a federal law allowing states to do so. >> the senate that proposed it, i say, pass a law allowing states to declare bankruptcy i dare you and let the president sign that

bill your suggestion, senator mcconnell, pass the law. i dare you >> cuomo going on to say passing a law like that sends a message to the markets that the economy will be in dire straits. some businesses in georgia reopened today but cautiously as governor brian kemp eased a month-long shutdown and many business owners plan to remain closed with deaths and infections in that state still rising we'll be back next hour for more on the coronavirus coverage, head to cnbc.com >> see you then. the pandemic put a spotlight on the stock market and the economy. one sector benefited more than others dom chu is here with more now. dom? >> look at communication services the sector overall has been a slight outperformer over the broader s&p 500 by just a couple of percentage points but it is hit hard

one place some investors are looking towards in terms of financial health has to do with free cash flow,a measure of ho much money a company comes up with for interest expenses or buybacks or dividends or anything else. take a look at the particular stanldouts these stocks in the communication services sector have the most free cash flow per share. alphabet, 40 bucks a share facebook and take 2 interactive. all have some of the highest free cash flow per share and could be a better measure of health going forward another place to look at is lowest cash flow per share check out the names. live nation, 48 cents per share. news corp., disney 28 cents and then flet nix minus $5.62 of free cash flow per share, a reason perhaps why netflix is raising money in the debt markets to help finance that

gap. netflix, a stock to watch and has been an outperformer in the pandemic back over to you. >> thank you coming up, alcohol sales are surging lately spirit alone sales up 33% in the past 6 months. expired beer can cost the market nearly a billion dollars the ceo of sam adams joins us th lk wt e durywi aooathathinst needs. life isn't a straight line.

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the dow up 200 at the highs but about to lose the gains entirely up by 15 on the blue chips 9 point tons s&p little more than half a point on the nasdaq the sectors behind me, see the technology is leading the way today with a 1% gain and energy interestingly enough has just turned energy despite the fact that the price of oil is still higher by about two bucks a barrel look at a couple of the individual movers today. beyond meat up 8% and on space now for its best week ever with a gain of 41%. the company saying this week the cash position is strong and meantime zoom video up about 5%, hit an all-time high it is up 380%, nearly 5 fold, from the ipo $178 a share nearly and the company is about to be added to the nasdaq 100 in the meantime, alcohol sales have been surging during this pandemic but an increasing number of big companies are turning to the debtmarkets to raise cash. frank holland with a look at

why. frank? >> constellation brands with $1.2 billion in senior notes, the latest global alcohol producer to turn to debt financing in the coronavirus pandemic that includes ab imbev, diageo and looking to raise billions in just the last month. and it comes as alcohol sales are surging, double digits here in the u.s. and elevated globally in developed nations at least but according to morgan stanley, the alcohol companies exposed to significant revenue declines if customers trade down they get roughly a third of revenue from the premium segment and will people turn to cheaper drinkings after the economic shock of the pandemic? back over to you. >> thank you, sir. de despite sales, craft beer sales are actually cratering they're down 25% to 30% since the coronavirus crisis but unlike some companies asking for cash or loans craft xwruebrewer

seeking a tax credit joining me is jim cook of the boston beer company and sam calagoni of dog fish brewery i didn't understand that craft beer hit so hard by this you own a bunch of these brands. it is the loss of restaurant sales? >> yeah. that's exactly what it is. because basically, the bar and restaurant part of our business has collapsed. you know, pretty much went to zero we have been very fortunate. sam adams, boston beer company, we diversified with innovative beverages in addition to sam adam's so truly hart setter and reported a first quarter, our sales were up over 30% in the first three months of the year based on our ability to innovate

and drive growth that way. >> right. >> profits were off because the safety measures that we put in in our brewery to make sure, you know, we could keep running the brewery safely and took back about $6 million of that stale beer that you talked about that it was left in the bars and, you know, we don't want bars to open and be giving people stale sam adams so we took it all back we will end up doing what we've been doing for ten years which is distilling it into ethanol and blended into gasoline so you might have been driving around with a little bit of sam adam's in the tank, kelly. >> i'm learning a lot from this discussion already sam, while jim was able to lean on sales of drinks like truly, it must be hard for you guys without an offset and how did the beer go bad? people could have said come in and bring some home for you or something.

>> we have been looking far need for eternity. >> 0 go ahead, sam >> thankfully as dog fish and boston beer merged we have a complimentary portfolio. jim mentioned trily, twisted and with dog fish head's portfolio leading into ipas number one sour producing beer brand in america and distilled spirits, as well. but to comment on the earlier idea that, you know, these -- our breweries, craft breweries, will people continue to trade up in challenging economy, if we just look as recently as the la last recession, '08, we trurly an affordable luxury and company gets tighter, folks might not be able to go for a great luxurious vacation or buy a new suv but trading up two or $3 to a seeper premium 6-pack is an affordable

luxury and a beautiful thing. >> yeah. a lot of times it just tastes better so jim mentioned distilling some of the expired beer into ethanol. you're producing hand sanitizer. is that right? a lot of spirits companies are doing so. >> yeah. none of us thought we would, right? mike tyson said everyone has a plan until they're punched in the nose and we were punched in the nose here and didn't turn around and leave the ring. you know, i'm proud of the way the company not just reacted but engaged in this moment, whether it's restaurant strong program that jim can talk about or as you mentioned with dog fish head we used our strength as a distillery since high proof ethanol is the central ingredient in the world health organization's defined recipe for hand sanitizer and quickly pivoted, started to make sanitizer. today we are macking enough per week in the facility to clean over half a million hands. number one customer is state of

delaware, keerping the police departments, the fire departments, the hospitals in hand sanitizer is critical and taking the profits to the state and using those profits in a fund we started with an organization to provide financial relief for families that work in the hospitality industry put out work by covid. >> it is a great gear shift. jim, there might be other people drinking in the interviews but you are the only one to watch that happening and -- >> i thought i was off camera and sneaking a beer. >> product placement there i see. you know, i wanted to ask you about the relief program, the ppp. is that something you qualified or thought about applying for it subsidiaries sales are up profits are down what options do you have to weather this crisis if you need capital? >> well, i think, you know, we're pretty well capitalized with -- we have never really borrowed money at the beginning of this we drew

the credit line down but the best way to weather it is to actually, you know, grow and remain profitable and we've been able to do that and that's enabled us to do stuff like our restaurant strong program. we have contributed over $2 million to a program to disperse money to help the -- to bar and restaurant workers who have been laid off in this so we have been able to, you know, help out others which is really very characteristic of what craft brewers do. we are all very mindful of the connections to the communities that we serve. >> yeah. i know in the communities rely on them. my hometown of virginia, it's been a huge part of the growth lately we'll leave it there for now, gentlemen. thank you for describing the efforts to help with covid. >> cheers. >> thank you, kelly. >> sam cook and we appreciate it and sam. coming up, many retail

companies are on the brink of bankruptcy before the pandemic and healthier names needing help, what the next moves could be. venture capital was flush with cash last year but it's drying up. stay with us

welcome back bankruptcies were rumored before the pandemic but now bankruptcy attorneys are beginning to field companies of previously healthier retailers. courtney reagan has more on the story for us courtney >> more than one professional in the retail restructuring and bankruptcy area used the term tsunami to describe what may be coming and not the ones already in trouble, i'm talking about healthier retailers to consider the possibility of bankruptcy. these business models were not built to have stores closed for lengths of time. if you've got zero cash flow

coming into store which is where the majority of those sales are coming in, you have still got fixed costs that you have to pay. this is going to be real trouble for a lot of names yes, names like dick's sports goods, american eagle saw an acceleration online when stores closed and warned that could be short lived and it is all leaving them to figure out how much longer to last with stores closed and when they open no one really knows how shoppers react and if they feel comfortable coming back in lawyers, advisers, bankers fielding calls and say it's not ideal to file now. the clock starts to run and the best way to pay creditors quickly is having the liquidation sales at the stores that are going to close. and if the stores are already closed, you can't very well have those sales. so they are thinking that once the economy gets back up an running you're going do see a rush of retailers filing for

bankruptcy you want to be among the first to have the sales, too back over to you. >> courtney, i thought yesterday that was a fascinating discussion with you and tyler object how they wait and not taking the silence the wrong way right now. when people finally return to the office in general, the office they return to could look very different jane wells joins me with a look at what kind of changes could be coming our way jane >> reporter: your office may look like our office right now it is mostly empty designers built in around 200 square foot per employee of total office space and expect that number to go back up as skin designers running programs to de-dense-ify the employees. longer term the new office with

touchless elevators and voice command toilet stalls. >> and i think some of the ways our clients are also looking at achieving this is perhaps opening satellite offices so that they can have the same number of employees but they're if two separate locations. >> reporter: so, but surveys show employees enjoy working from home. like me. and that will be part of the future, as well. >> and i have one client here in the d.c. area that thinks 69% of their staff may continue to work from home. and -- but might be on a two or three-day basis and enough of a time there's real estate implications. >> reporter: yeah. that is a question for the future but, kelly, neither designer believes the office is going away completely, unfortunately. >> i -- jane, as soon as everyone comes back, i'm going home kevin o'leary said he was

looking across the portfolio of companies to save a bunch of money restricting office space by 20% and i think this is happening, right >> reporter: well, what you may see in the short term is teams come in on alternating days or twice as much office space or if you have half the team in, using the full space for it. you see? short term you need all that real estate because you can't have everyone in there allality the same time. >> jane wells, we very much appreciate it. looks good. coming up, early stage funding is dwindling fast and foreatening future pipeline r the big tech players that's ahead

funding for start ups is

drying up as covid-19 puts investors on edge. kate joins me with a look at the fall out this will cause kate >> hey, kelly. early stage start up funding is taking a hit during covid. that could you describe dent larger company's growth in upcoming quarters. seed stage funding has already dropped 22% globally since january. retail travel and hospitality are taking the biggest hit acquiring new start ups has been a way for larger companies to snap up new technology and talent start ups may fail before they can attract corporate buyers we are hearing companies pulling back spending until covid clears up i'm told big tech still have cash on hand for deals likely now at discounted valuations investors tell me start-ups and online learning are still raising money in this environment. kelly. >> is there any sign that people are looking to new kinds of companies as a result of

coronavirus? >> it seems like the sectors are sort of changing like we said telehealth and automation seem to be bigger there's things in fintech. we saw stripe raising a new round of capital and they cited coronavirus. they say this shift they thought would take several years happened in matter of weeks thanks to covid. >> thanks so much. for more on how coronavirus will reshape silicon valley, let's welcome in duncan davidson to pick up on what kate was saying, you also think there will be a rotation? >> ecommerce amazon might become a $2 trillion company digital ads, i think old media really will be in trouble here retail if people can get buy without the ads in the local newspaper, why do they keep advertising remote collaboration, that's an obvious category i think the two that are less

obvious are the gig economy. it's thriving. people thought it was on it last leg. the final one is reindustrialization and what some people caught the fourth industrial revelation which is the next big thing coming out of this >> he's pick up on that. he said it's time to build manufacturer and hardware is not something silicon valley has been known for should that change >> i think his piece is terrific you think about the tech sector. it's probably more important to the economy than the auto sector that's been driving this place for 100 years. we don't have a strong voice at the table. he's exactly right we shouldn't just repair roads and fix bridges. we have to build the future. i think what he's getting at fundamentally is if we're going

to do this, reindustrialization of america and prepare for the fourth industrial revolution it's going to be more ai, more robotics taking a lot of things like 3-d printing and putting it into scale operation in this country. tech has a real part to play in that >> some say the venture capital model itself is part of the problem because it looks for lotto tickets. for a lot of companies especially software bets says a couple will pay off and they will have 90% gross margins and be at almost unlimited scale. as ben thompson has suggested this week, does that model needs to change to something that looks like traditional investor to where there's lesser upside as a result. >> it's the core driver of growth in this economy it was hardwares and disk

drives in the '90s, it was software and the internet more recently it's all kinds of things it's spread broadly across the economy. there's no problem with the industry rotating itself back toward industrial things and toward real fangs and away from software i don't think so it's the right industry to be agile and move quickly to finance this next wave of innovation >> i guess my point is, is that lucrative enough all those things building out the economy, will it be lucrative enough to attract a lot of capital >> yes it's just not here yet i think the boom in the venture world from 2024 or 2032 will be

bigger than what we seen in the last decade and probably rival what we saw in the '90s. >> any time we're talk about 2032, we're really -- can you give us a quick, quick word. >> i think right now, what we see is an acceleration of current trends zoom may be over valued but the direction of remotte collaboration too many, no question remote learning. universities may have a total change into more teaching online versus people going to the universities themselves. i think right new look at what's real surging and think of that as an lergs that will continue >> amazon to two trillion becomes a result of this it's great to speak with you thank you. >> take care our breaking news coverage rolls on after this break. we're going to talk to the billionaire ceo whose company

got $4 million from the ppp program. a look at the plarmarkets. dow hanging on, clinging to an 76 -- 86 point gain. we'll be right back. every financial plan needs a cfp® professional --

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welcome, everybody our breaking news coverage continues on "power lunch. stocks are heading higher after another wild week of trading up and down. we started the week with a strong rally we're probably going to finish lower, however, for the first time in three weeks. have the marks gotten a bit ahead of themselves? we'll explore that topic t