. stock futures are higher to start what is going to be a very, very busy week on wall street with a lot of corporate earnings and data as well. oil crashing down again. it is off and another bankruptcy in the oil patch to pay attention to as well we have all those stories, including a blockbuster report from "the new york times" as well about china's efforts to cover up an initial report damaging china's response to the coronavirus outbreak welcome, everybody, good morning. it is just about 5:00 a.m. here on a very busy monday. corporate earnings galore.

all the major f.a.n.g. companies. they are set to release their numbers and guidance. thank you for joining us i'm brian sullivan let's talk more about your market setup you have dow futures indicating a gain of about 100 plus points at the upside. 200, as a matter of fact, stock futures are well in the green despite the fact that oil has come down significantly. the price of oil down again right now. remember, we are in that june contract it is off about 13% this morning, down to under $15 and change so, watch oil. there is a story in the oil patch to pay attention to as well that is diamond offshore diamond offshore, a major oil-drilling contractor, obviously like the name immris, off the coast. an offshore company has, indeed, filed for chapter 11 bankruptcy

protection the company simply not able to meet its obligations so diamond offshore has filed for bankruptcy protection. keep an eye there on that story as well. also you want to watch the stock of loews, ticker l, not the home improvement company. loews owns 50% of d.o., diamond offshore let's take a look at what we can at the global action in asian markets as well. global stocks here japan, the country's central bank pledging unlimited bond buying program to help the economy and outbreak as well i believe we have a reporter on it do we have matt or julianna? normally we do why don't we get into the guest i do know we have here, and that is ben emmons, managing director

at medley global advisers. thank you for joining us on "worldwide exchange. we appreciate it as you see the economy and the markets right now, are there parts that look a little bit undervalued, believe it or not, and parts that still look overvalued to you? >> good morning, brian thank you for having us. that's a good question as we go into earnings this week. you can look at the economy in two parts. there's a part that does really well, the big tech and industries that are in demand. i think about drug retail as one example because of this environment. i would say they're not necessarily overvalued because of demand for the services, and the other part, the leisure, hospitality, that may start to get better in the future as we reopen the economy that's very undervalued at the moment notwithstanding, there is, of course, stress there because of

a weak economy nevertheless, i think there's opportunity in the future. >> where specifically are the best opportunities right now, ben? >> i think if you think about the economy in terms of what's working, what's not working, there's three groups, actually i think the stock market has been driven by big tech because of in-demand services, the strong sector. there's a sector, if you include the airlines, is one example, with all the government support. and then the really weak support, the leisure/hospitality. the last sector, as long as it sounds strange, when the reopening happens, slowly on the way, there will be revival of big businesses take starbucks as one this week, pay attention, because that's a business that could see a big pick up. i think there is where the opportunities will be in the future and extrapolating that

out as the economy opens, there could be opportunities, too. >> do you see more macro downside ahead in any specific parts of the equity market there's a lot of calls out there, ben, that things may still be overheat. what we've seen the last couple of weeks is just a typical bear market bounce, that it's not going to be sustainable. >> well, that's the risk, of course, in terms of having a big contraction in the second quarter that i think everybody agrees with that that goes on into the third, maybe even the fourth quarter we know what the reason is we reopen the economy, we're dealing with an unpredictable virus. you know, i would not be disagreeing with that per se but it also depends on how the reopening works, state by state, part of the global economy, too. i think the economy stays weak, could get full deflation but it's pent-up demand. i'm in that camp

basically a resurgence of activity because people will have demand for auto and drug retail and internet, for example. and i think that is the driver for -- >> ben emons, thank you for kicking off our week. to a developing story that's captivated the world's attention. is north korean dictator kim jong-un alive, and if so, where exactly is he? eunice yoon covering that story from beijing good morning. >> reporter: good morning. kim jong up has not appeared in public since april 11th. today south korean and chinese officials are trying to down play reports he could be seriously ill, be isolated from the coronavirus or even, perhaps, dead. today a top security adviser to the south korean president said their intelligence indicates kim is alive and well. south korean officials have said

they are confident kim has been in the resort town since april 13th and separately there were satellite images shown by a d.c.-based organization that tracks north korea indicating a special train is there and could belong to kim. china's foreign ministry also weighed in saying it didn't have any new information to share about kim's whereabouts. this comes after several reports that china sent a medical team to north korea late last week. it's unclear whether or not that medical team was meant to advise him on containing the coronavirus or to advise him on his own personal health. brian? >> eunice, if something were to befall the dictator, do we know who would take over? would it be his sister or literally a fight among the generals >> well, it's difficult to say but, like you just indicated,

most of the focus right now is on his younger sister. she's believed to be a couple of years younger, a very close confidante to him. she accompanied him to the two summits with president trump again, one of the reasons why you could imagine she might not get the top job is it's very a very patriachal position some say it could be a big free-for-all if it turns out he is actually dead >> certainly a fascinating global story, one that will develop hopefully within the next couple of days. eunice yoon, thank you be well. we have much to do on this busy monday to kick off your week new details on just how bad the coronavirus is hitting the average american in the wallet. a government exposed

how government leaders in europe are vowing china softened reports on their initial handling of the pandemic and what's being reported. a very busy hour you're watching "worldwide exchange." we're back on cnbc right after this tely. yeah, everything is running smoothly with the now platform. (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you.

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nobody will be looking backwards, they want to look forward as any kind of guide abc that corporate america can provide that will be key for investors this week. there's some of the companies set to release their numbers. let's move on to our guest, mark hamrick the pandemic and lockdown is likely taking a mental toll on many of us a new study shows it's taking a toll economically, even for those who are still working. for more we're joined by mark hamrick, bankrate senior economic analyst thank you for joining us what does your study suggest about how collectively as americans we are feeling about our finances right now >> good morning, brian thanks for having me well, i think across the board what we find is a moderate to extreme concern about the state of individuals' household finances, whether it's the ability to pay bills, job security, the value of investments. obviously, these are all elevated since before the

crisis in some cases we found that the c.a.r.e.s. act has helped to, let's say, limit some of this concern, but we're talking about a majority of americans who have these concerns either at a moderate or extreme level. obviously, it's quite pervasive. >> yeah. and what is the single biggest concern? is it simply the ability to pay down their obligations, losing their job, what is it? >> basically, i would say they're almost all extremely high so, if we look at the number one concern in terms of the percentable of americans expressing that, it really is job security or the reliability of income. and then after that, the ability to pay bills just getting by, taking care of the basics and then third on the list is the value of investments nevertheless, all of these are elevated, brian. >> there's one thing, though, that is a little bit sensitive to talk about, mark, but

everyone's doing zooms and talking on the phones. the one thing i do hear from a lot of people, again, just anecdotally talking, they're saving a lot of money. they're not commuting, they're not going out to eat, there's no discretionary travel it's almost like, yes, there are economic worries but at the same time, everybody i know is like, mab, i'm saying $500 a month in new jersey transit train fees. is there any gauge on how much we're collectively saving as well because we're not doing anything >> well, i suppose if you were to look at the data and say a decline in retail sales, obviously that is money that was not spent at retail. we'll obviously get a closer look at the actual consumer spending figures as we proceed into the calendar. it's important to remember, brian, we're talking about the likelihood that unemployment in the country is getting very close to the 20% level so, it is true that people who,

the likes of us, thank god for that, are still gainfully employed for all those out there who have not sufficiently saved in the first place, and find out living paycheck to paycheck was not a sustainable strategy now that income has been taken away. >> do we have any idea gap unemployment and the $600 that congress threw in sweetener, for those that lost their job, will they be made at least partially whole? >> obviously, somewhat another question we asked in the survey was really political in a sense and that was, with respect to your personal finances, do you think washington needs to do more and nearly 6 out of 10 said yes. 32% said that washington has done enough and 11% said it's done too much. interestingly enough, this broke down along party lines where democrats tended to say that washington needs to do more and

republicans not as often but i think probably what they're looking for there is something to plug that gap of income that you referred to. >> yeah, it certainly is the greatest economic story of the last decade if not the last century. mark hamrick of bankrate appreciate it. you and yours be well. on deck, a closer look at the challenges facing main street something we just talked about as some states begin the very slow process of trying to reopen their economy. we'll speak with two small business owners right on the front lines. >> announcer: today's big number -- $3.8 trillion. that's the combined market capitalization of microsoft, apple and amazon the s&p 500's biggest companies and 16% of the s&p's total market cap all three report quarterly earnings this week

it's a challenging market.

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boeing letting the deadline expire, citing unable to agree on final terms now boeing accuses embraer of badly acting if you missed this blockbuster story in "the new york times" we tell you ho go back and look at it. scrubbing key details of the origins of the virus, covering up china's efforts to convince people that the virus may have originated with american soldiers, another disinformation campaign to spin key facts joining us is the author of that report from brussels matt, appreciate you joining us on "worldwide exchange." i read your piece over the weekend and immediately reached out. the first thought that came to my mind when i read it was watergate but perhaps on a

larger scale what has been the reaction to your piece so far? >> well, i mean, the european union is obviously pushing back and saying, we didn't edit anything in response to chinese pushback in is just the sort of normal kind of editing process we go through. what's remarkable here is this is a fight over a pretty boring document every month every month has a cool program where eu analysts go out and find state-sponsored disinformation and flag it so there's some sort of place people can go and say, wait, that's not real. that's fake news as part of that they issue these updates. one of the updates that was supposed to come early last week was going to have some pretty harsh words for russia and china for disinformation around covid-19 when word got out that one was coming, china reacted very swiftly and pushed back very hard on their eu diplomats in

beijing. we were able to get ahold of internal correspondents inside the eu officials here in brussels that showed that the reaction in brussels was, let's make changes, this is pretty controversial and they sortly tamped down and toned down the language >> and that, you feel, based on what you've seen was due economically, politically, whatever, matt, from the chinese government >> i've seen some cables that came out of beijing and the chinese didn't threaten anything explicitly they said, this wouldn't be good for our relationship the eu is a major trade partner with china, and a lot of trade money at stake once covid has passed there wasn't a threat. they did publish their report and it still mentioned china it was toned down just a little bit. rather than focus on russia and china, it was more a worldwide

look and china was put to the bottom yeah, we called out china but at the same time it allows you to see the effects of pressure when diplomats and national governments put pressure on institutions just to soften their tone >> yeah, every day it feels like, matt, for your agency, "the new york times" and others, we are getting more details out about china's cover jud-up in t. "the new york times" reported on march 13th was apparently certain media outlets in china were trying to spin the idea to their own domestic population that coronavirus was spread by american soldiers, that we were responsible, the united states >> i mean, what you're seeing here is it's important to remember that early on in december of 2019 as this outbreak was taking hold in china, the chinese government tried to tamp things down and

suppress doctors and downplay this we lost several key weeks as as a human race we lost a key month because of that the chinese government is trying to move the conversation past that and move them in towards a conversation about the really important research that chinese scientists have contributed to covid-19 and all of the masks and equipment that the chinese government is donating what you're seeing is part of this effort, let's not talk about december, let's talk about what we're doing now and reframe china's role in this as a global leader rather than one of the responsible parties. >> matt from "the new york times," i retweeted your piece urge everyone to go back and read that. appreciate your time be well. >> thanks a lot. you, too. when we come back on cnbc on a monday morning, round two of washington's small business loan program kicking off today, but

some 11th hour changes could make it harder for banks to lend we'll dig in why. first, starbucks, despite its woes there, striking a big deal in china. the venture capital firm, sequoia capital, sgit the pandemic crushing the economy, starbucks wants to keep growing erthe. we'll tell you why these days staying connected is more important than ever.

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another big bankruptcy being filed. stock futures are shrugging it off and higher dow futures indicating an open of 200 points. new worries for the $370 billion in fresh small business aid before it even becomes available. we're speaking with two small business owners who were given the green light to reopen, but will they? one top bank out with a new warning about a troubling signal that the s&p 500 might be sending you. it is monday, april 27, 2020 "worldwide exchange" on cnbc rolls on right now welcome back in. good morning i'm brian sullivan thank you for starting your week with us here on cnbc. we begin this morning with some breaking news the stock looks to extend their winning streak to four sessions in a row right now dow futures indicate that we might just do that they're higher, indicating an open with a jump of 200 points

on the dow all of this as investors brace for the busiest week of corporate results and, more importantly, guidance on one comes now and what comes next. in all this week, 142 companies will open up their books and hopefully give us a little bit of guidance as to what they see down the road. oil, of course, remains a massive story for your money as each day creeps by, and as we get closer to maxing out global storage, prices continue to be under pressure right now oil is down again about 13% and the crunch claiming another company offshore driller diamond offshore says it has filed for chapter 11 bankruptcy protection the company recently skipped an interest payment to bondholders beginning a 30-day clock to either pay up or default the company blaming a, quote, unprecedented impact from the oil price war. you also want to watch your shares of loews corp, they own about 53% of diamond offshore.

by the way, i have a new piece up on cnbc.com right now about how oil's shawshank redemption moment is upon us right now. what it needs to do to prevent the possibility of negative prices happening because they very well could. check that article out after the show. there is your morning stock setup. let's be clear, right now, the data shows one thing -- cash is king check out these remarkable stats about where people are putting their money. it all comes from fund-tracking firm epfr global last week stock funds lost just over $7 billion. they were pulled out in other words, people took out $7 billion from stock investments. much of that money, perhaps, went to bond funds bond funds had inflows of nearly $11 billion. hedge funds took in just over $1 billion despite spotty returns late will thely. look at this money market funds effectively cash equivalence had $126

billion of inflows just last week investors like you are nervous and you're selling stocks and parking your cash in cash. going to try to bring you some important data each week wow. $126 billion in cash inflows says a lot. let's move on to the state of small business. paycheck protection program is set to be up and running later on this morning, giving small businesses access to $310 billion in fresh aid from congress there is, though, one problem. the money could already be fully tapped out even before it's its begun to be lent bank of america yesterday brian moynihan called on congress to fully fund that program. >> i think it's clear that between congress and the administration and american people, we need to get all these funded and not make this a foot race just get the work done and get everybody through.

>> let's get more now on this important story. kate rogers joining us with exactly where we stand good morning, kate >> hi, brian, good morning to you. the sba says as of 10:30 a.m. eastern this morning, e-tran will open back up and small businesses can start to submit their applications for this second wave of $310 billion for the paycheck protection program. the consumer bankers association has warned the money already may be spoken for before this even gets up and running. that's due to very high demand remember, there are 30 million small businesses in this country. estimates have been as high as nearly $2 trillion for what might be needed to actually help many of them in this time. last time around, remember, 1.6 million loans ate up the first $350 billion of funding in less than two weeks some banks like wells fargo have said businesses who were already in the queue will hold their places in line jpmorgan chase has warned some businesses, the money will go quickly and if they are still in the early phases of applying,

they may want to seek out another lender the government out with warnings last week limiting virus aid to large companies saying borrowers must certify this crisis makes the loan necessary and can't access other forms of capital. hedge funds and private equity firms are not eligible for this aid. shake shack, ruth's chris, autonation and potbelly returning funds to the ppe fund. >> a couple of follow-up questions for you. number one, we're getting a bunch of 11th-hour changes from the program from washington. one is capping the maximum amount each bank can lend at 10% or $60 billion per bank. comment on that. also, more reports this weekend that a couple hundred now publicly traded larger companies have applied for more than $850

million in loans, despite the blowback about public companies or bigger companies doing that address both >> sure. we'll start with the lending cap president the sba sent out a memo saying this is prudent and reasonable to cap that at 10% or $6 billion per institution lending because demand is expected to be so high banks can submit a minimum of 15,000 applications in a bulk submission to e-tran we'll see how that is able to be processed. we'll see if e-tran works smoothly there were reports last time this suffered outages because demand was so high then with regard to a lot of these publicly traded companies now, you know, coming out that they did apply for this program, we did hear from the government last week really saying, you have to say this crisis made this loan necessary. and you have to prove that, you know, you couldn't access other forms of capital here. so, now you're starting to see

more and more companies say they're going to either return these loans or cancel them that will give money back to the fund really think about how many small businesses could have accessed that $100 million or so last time around i think that's an important distinction, too more may return the funds. we'll definitely keep an eye on that as well >> yeah, this is a massive story. you've been all over it. kate rogers, good to see you thank you. as round two of the ppe begins its rollout, as kate just noted, investor attention continues to focus more on main street and the countless small business owners that are struggling through all the lockdowns and stay-at-home orders as new york unveils its plan to slowly reopening the state as of may 15th perhaps the brightest spotlights are two states that are already starting to do that. that is georgia and that is colorado georgia beginning today allowing restaurants to resume dine-in service and movie theaters can once again welcome the public

inside the theater after friday's phase one that allows, salons, tattoo parlors, bowling alleys to resume operations. in colorado the governor calls safer at home or a dialed back stay-at-home order where retail businesses are allowed to reopen, albeit with curbside pickup what do these various phased reopening look like on the ground with people that run these businesses joining us are two companies in georgia and colorado vince is the owner of the mystic owl tattoo located in marietta, georgia, outside of atlanta, and frank is the proprietor of ten restaurants around the denver area vince, you have the ability to open your tattoo parlor. you have chosen not to why? >> feel safe it's open i think it's way too early to go

back to work on a normal basis, we need ppe, personal protective equipment, to perform our job however, we have to escalate the measures to meet what the situation is calling for we all know this shortage is on materials and masks and all these things that the medical field needs. we feel it's highly unethical for us to try to find those items over the medical field so for us it's very important that our staff and our clients and ourselves are safe at this point we cannot get the right equipment. even if we could, as i mentioned earlier, i don't think it's the ethical thing to do. we received a number of emails - >> vince, let me jump in here if i can. you obviously would wear masks and gloves anyway doing what you

do as a tattoo artist. so, we respect that decision you don't want to go after the stuff that the first responders need what about the businesses around you. i'm sure there are small businesses all around you. what are they doing? what are the other owners you're speaking with saying >> owners that i know -- because this whole thing is confusing. there's a lot of contradictory information. you know, we're supposed to meet certain guidelines some of them are opening, some of them are not, some are trying to find out the guidelines we tried to find sources from the cdc, from the health department locally the fact is the kind of business that a lot of people have which is, you know, barbershops, you know, martial arts, tattoo parlors, massage parlors, you need to be in close contact with

your client in order to provide a service. to me it's a very hard thing to give somebody a tattoo without touching them or being in close quarters with them so, that whole interaction becomes very, very confusing without having the proper equipment. i think a lot of people are in the same situation they're very to one side or the other. some think it's not real, some think they're going to go about their lives. >> it is - >> go ahead. >> it is very real, vince. your employees is real, it's real in your community, real on georgia and you guys are conducting a bit of an experiment that the rest of the country is watching and everybody out there hopes that experiment turns out better than people think it might. vince, doing some beautiful work we look forward to you reopening. let us know when you do. best to you and yours. >> absolutely. thanks. >> let's move on to colorado

where they are also beginning the long road of trying to reopen today frank owns ten restaurants in and around the denver area and he joins us very early his time, frank. we do appreciate it because this is the business of -- business of america is business and small business in particular we appreciate you joining us obviously, the majority of your restaurants are closed some are offering takeout. what are you going to be able to do this week what changes for your restaurants and your workers >> i think the restaurant industry itself is going to be changing dramatically. i don't think we're going to be like we were i mean, this week we are still waiting to hear if we are going to be opening may 15th that's one of the things we're struggling with. also what the rules are going to be when we reopen because it is very difficult to serve someone from six feet away in the restaurant business. we're waiting to hear what the

rules will be when we reopen we are going to go and try to make a go of it in a couple of restaurants. >> how have to-go orders -- what percentage basically of the revenue is that? i've spoken with restaurant owners in my town here in new jersey some are saying, we're at 10%. some are saying we're at 80% or 90% if they don't have a bar business because there's a lot of byo in new jersey what kind of revenue streams are you seeing with the current situation? >> it's one of our -- we're doing about 5% of the business we used to do. the whole market about 3% of what we used to do we're just trying to get through this and set up a goal and try and realize what it is we're going to be doing when we move forward and reopen a business that will be substantially different than it was before.

>> would that be, i imagine, removing half the tops, half the tables, spacing people out, have you heard from long-term customers saying, yeah, we'll come right back out? do you think people are going to be tentative to come back out regardless of how you adjust the physical space >> i think adjusting physical space is one thing we're going to do. we do not know what our spacing will be as per colorado, as per the denver law you know, one of our restaurants has already had a tremendous amount of people inquiring about getting in for reservations. that's a very small restaurant we only seat about 55 people there. it's a higher end restaurant our bigger restaurants that seat 200 people, 250 people, those at 50% capacity, i mean, 50% of the revenue, that's going to be really difficult we're not going to need the same amount of employees, and with the ppe you're expected to

employ the same amount of people we're expected to employ people right now. we don't even know when we're going to be open it's very difficult to even get a handle on the ppp money. >> let me ask you a difficult question, frank, because there's an article in the journal about this npr did an article about this. some employees, some employers are concerned they may not be able to get employees back even when they want to because with some of the programs, the $600 sweetener, it may be tough to lure employees off the current unemployment program simply because they're afraid to come back to work their health and safety are at risk and their income is at least being subsidized in part it's a tough story but out there in the journal, in npr what are you hearing and seeing? >> that's the reality right now. there are people making more money staying home because with the subsidies from the state,

they can make more money than they were making with their unemployment we have to totally respect them for being safe that is one of our biggest concerns with reopening, is employee safety and customer safety you need your employees to feel good about what it is they're doing. we're in the hospitality business if you're not loving what you're doing, and that is what we do, give hospitality and service if they're not comfortable with that, i'm not sure you want them in the restaurant. it's a very difficult road right now. >> it certainly is it's a sticky road, a tough road people want to be safe for their families no one can blame them for that frank, i look forward to reopening as well. i've actually eaten there, frank 75 the other ones opening in the great city of denver thank you for joining us very early in colorado. best of luck stay in touch. thank you. coming up, the new concern

surrounding this country's meat supplies coronavirus hits yet another production facility. first, shares of airbus are lower this morning the company's ceo revealing it is just bleeding cash at an unprecedented speed. according to reports, he told workers in a letter to brace for potentially deep job cuts, warning that airbus's very survival is at stake. dow futures up 200 oil down 12% e ckitmo ocnn bc right after this low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. pure protein. the best combination to help you stay fit.

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welcome back good monday morning. 5:47 on a monday morning there's a shot of times square a little different than it looked a couple of months ago. looking forward to filling that place back up. meantime, we can't do that until this comes down, the number of coronavirus cases in the united states simply continues to grow nearly the 1 million mark as the death toll approaches 55,000 souls. global health officials are now expressing some new concerns regarding recovered patients rahel solomon back at cnbc hq. >> the world health organization is warning that people who have already had coronavirus are not immune from getting it again that warning comes as governments around the world map out plans to reopen, as we just heard in the last block. the w.h.o. says the idea that one-time infection can lead to immunity remains unproven and

unreliable the world's top meat companies shuttering another top production facility. jpssa is making that move following an outbreak of coronavirus in the wisconsin beef plant, adding fuel to a potential meat shortage with 25% of the u.s.'s pork capacity and 10% of u.s. beef output offline. and the nba is taking its first steps towards potentially resuming operations. the league on friday reopened team practice facilities in areas that have loosened stay-at-home restrictions. players, meantime, can return as early as this week. formula one announcing it expects to start its season in austria the weekend of july 4th. that will be without spectators. back to you. >> we may have sports on tv, rahel, but a long time before we're all together again in some kind of a stadium format thank you very much. >> sure. on deck, stocks, the markets and your money look to open their week higher. dow futures are up 200 points

route now. citigroup steve white will break down where he and his team are seeing forces in the market snoop you can watch us live anywhere on the go, but where are we going it's on the cnbc app

welcome back good morning earning season kicking into high gear this week with a lot of big names. 3m, star buctiobucks, ford, goo. 142 of the s&p 500 will release their figures. very few people will be looking at earnings. more importantly,looking for any glimmer of guidance about what these companies see ahead. investors will certainly have plenty more to chew on as well you have first quarter gdp data out this week. you have the fmoc meeting on

wednesday with an unprecedentedly large balance sheet, growing news conference with fed chair jay powell annual sales data, see how car dealers are doing even with the pandemic raging on, apparently people are still buying cars we we have annual meetings from boeing and berkshire hathaway as well it's going to be a very busy week on many, many levels. we begin this morning with breaking news. by the way, let's talk about the stock market looking to do four sessions in a row of gains dow futures are higher right now, despite the fact that crude oil is down about 12% or 13% you want to watch oil. it is off. by the way, there was another bankruptcy in it is oil patch. offshore driller diamond offshore announcing its intention to file for chapter 11 bankruptcy protection. simply, too much debt load and facing what they call unprecedented hit because the oil price collapse as well

also watch shares of loews, owning 53% of diamond offshore back to the markets. steve whiting of citi private bank joining us. good morning good to chat with you again. >> good morning. >> good morning, i think how do you and your team sort of see the markets right now with just unprecedented amounts of lack of visibility upon us >> well, look, i think the question that we pose is that is this the right time and is it the right price? in terms of timing, the fact that equity markets typically rise six months before fundamentals turn, it's essentially right on time. if you look back at 2008, for example, where there were two, roughly, 20% rallies that gave way to new all-time lows, that was, again, well ahead of the actual bottom in the economy

we had a second half 2009 recovery by the time we got to march, we had enough visibility that the economy would turn in a few months time. we take a look at it now i mean, there are different paths you can imagine for covid and the economy, but it seems very likely that six months from now, in fact, the third quarter of this year, activity will be somewhat higher than it is in the second quarter the timing is just right the question is, did we fall enough, we're falling 35% at the absolute low, and we think that earnings per share for s&p companies, for example, will be down more than 60% in the second quarter of the year. if you take a look at the composition of the market, the u.s. market is really driven up by digital services, where that's in technology, it's driven by health care, staples more than any other market we think there actually is an opportunity for laggard sectors like small cap in the next year, year and a half, again, to have

a much stronger return the one thing you could probably do, if you have a bit of patience, we think that just being in the most defensive, best position sectors, it's probably time enough now to take a little bit of an asset allocation and take it and put it in some of those places >> we have about a minute left in the show. we had a data point earlier in the show, steven, $126 billion going to money market funds, basically cash last week at some point that cash will have to be reallocated you think it will go to stocks >> look, i think you can't bounce back when you haven't dropped, so i think it is going to be, again, in some of the catching up sectors. you've been talking about oil. that's a place we would want to stay with the highest quality producers, the highest quality securities because of the really concentrated hit to that one sector >> steven wieting, citi private

bank thank you for joining us on "worldwide exchange. we have to leave it there. we'll leave you with the market in the green, at least for stock futures. up to 80 oil down 15. we'll see you tomorrow on "worldwide exchange. across america, business owners are figuring things out. finding new ways to serve customers... connect employees... and work with partners. comcast business is right there with you. with a network that helps give you speed, reliability and security. and enough bandwidth to handle all your connected devices. voice solutions like remote call forwarding and readable voicemail.

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good morning futures pointing to a solidly higher open this morning as we prepare for the busiest week of earning season that guy looks mad prices are set to tumble, in fact -- i don't know be why we're talking about that set to tumble. oil prices are down. crash has taken a familiar name in the energy sector -- taken out one of those details straight ahead. plus, we'll talk to dr. scott gottlieb some of the states about to begin the first phase of reopening this week.

monday, april 27, 2020 "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. we have a big lineup of guests starting in a few minutes with the latest on the pandemic from dr. scott gottlieb later, fanatics executive michael ruben will join us and mohamed el erian, tom friedman, and new jersey governor phil murphy all of those names to get to coming up. furs, let's get to the markets. u.s. equities, dow indicated up by 250 points. s&p up by 30 points. the nasdaq up by 111 last week was the first down week we had seen for the market in three weeks if we see gains from the markets today, the dow like it is up right now, that would be the fourth day in