the nasdaq looking to open up about 95 points. let's show you what's happening in europe and then show you the oil boards so many people are focused on wti. green arrows across the board. the ftse in italy up over 2.2% they try to reopen their economy. wti is at 12.70. join us tomorrow "squawk on the street" begins right now. >> good monday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber live from separate locations futures are green to start the busiest week of earnings season. we'll get boeing, caterpillar, microsoft, tesla all headed our way in the coming days with a fed statement on wednesday and more states set to reopen today. june oil down 21 as the space between stocks and crude remains exceptionally large. >> i think that the crude futures distinguish themselves

as being totally disingenuous. the jd of what happidea of whatt week with the minus 37, there's a couple of financial instruments that are wrong they are broken. we don't regard things as broken because it seems almost impossible that something could break. but the future that you see and the actual prices are very different, particularly in the out years. and i think what's going to happen is this has to go to zero again, because we don't have more space i heard the ceo of the largest tanker company on friday saying there's no room. why should this number not go to zero it should go to zero faster than it did last time >> any chance -- >> it will go to zero. >> yeah. any chance that it doesn't because we will begin opening u

some of these states >> that's certainly a hope, but there are times in life where people know that there's an instrument that is faulty. and they can shoot against that instrument and bury these people there is this financial problem that people behind the uso, they are financial people if you're a real person or a large contractor or large player and i'll have this tonight in my show, they can wipe out the uso. that's been what was going on. it's not a conspiracy, it's a reality. when you have an organization that can't take delivery, you should crush that organization every time that's what will probably happen the people in the uso are naive, they're rookies. i wish them the best of luck >> we'll keep looking at this, jim, but we have to keep in mind as a percentage of the s&p, energy companies are

extraordinarily small. this price is certainly a reflection of the lack of demand and it does give you some signals in terms of the world economy right now. you can't say much when it comes to what its real impact should be overall other than on that. but specific to the s&p. >> there are two economies going on there's the economy that does well i did a lot of tracking this weekend. 11$11.4 trillion in companies tt do well out of a total of about 25 trillion. the reason why people are so let's say confused about why the market goes up is what you said, parts of the economy that should have been hurt have been they've been wrecked and the capital -- the size of what's left is miniscule so what people think of as the stock market, particularly if they're in the s&p 500, it's not the stock market anymore there's a downgrade today of caterpillar. caterpillar is not really part of the equation. it's a big company, but not what

this index that i've designed, the mad index for covid but also about the s&p is about i think we have to be more realistic and recognize the financials are trashed when you pick up a piece today and it says the credit cards, the bedrock of what these companies make, people are not paying we know rent is not being paid i don't know how you own a financial. so there's parts of the economy that i think you can feel great owning, procter & gamble, kimberly clark, and then what do you do with bank of america? what do you do with a great american company where suddenly people are not paying? that i have not been able to figure out i don't know what to do. it's not like carnival cruise which got a terrific bailout by the federal reserve we learned this morning i thought that piece was a disgrace but you know what? we're in an era where nothing is a disgrace everyone knows it. nobody likes to say it >> gets you back to the ppp

program, the second allocation of which is going to begin today. you know, to your point, jim, if you sell anything to the consumer directly other than from a supermarket shelf, you are having a rough go of it. every banker that i speak to, as you know, the world that i occupied for a long time now who are advising clients, they're not talking at all about m&a opportunities, they're talking about the balance sheet. even those companies that you may think are looking fine or already raised capital or suspended their dividend, they're still just thinking about survival it's what they're seeing in front of them that worries them so much. it's important to keep that in mind as we watch the equity markets here perhaps only down 15% from the high when we open today. nonetheless, you have a lot of companies that are not looking towards the future with anything in terms of any sense of brightness >> let's say you're the federal reserve. do you want macy's to go under

is that more important or less important than carnival? carnival, which was a principle purveyor of covid-19, killed a lot of people. macy's hasn't killed anybody should we give macy's a loan and help them out? or are we limited? i've gotten quite cynical. when i read that carnival piece, your eyes glaze over now everything is so cynical i wonder why carnival gets the backing of the federal reserve after being an actor that i think we could all question, and macy's, which does fireworks which is more dangerous? >> those are questions we'll be wrestling with your points about the constituents in the s&p remind me of goldman's note last night, the five largest names are 20% of the index, and david's point,

in their words, narrow breadth is always resolved the same way, that's a draw down, because the five players that are killing it can't do it long enough to maintain the overall sentiment regarding earnings and valuation. >> i love kostin, i don't like to play the other side of kostin, but f.a.n.g. is what moved most of the market so i disagree with his analysis that in the end it ends badly. because what happened is there is no end. there's no end to what -- i don't think alphabet will have a great quarter, they give a lousy quarter, they give a terrible conference call, tell you how bad things are, then you look a month later and they're higher that's the notion of f.a.n.g that's not unusual during this period ibm reports a quarter, stock market at 122, goes to 116, now at 125 there's a lot of instant judgements that are overturned, when it comes to what kostin is

talking about, f.a.n.g. is set up perfectly for this era. it shouldn't be, but it is >> so then 2950, 3,000 is not out of the realm of possibility? >> no. it should be there's a piece today in the "wall street journal" that talks about you better be worried about amazon what are you supposed to be worried about? too much demand. when you have too much demand, the analysts will look through that this is very much like a tesla problem. there's a piece put out by adam jonas who loves to write about tesla. this time he's saying it could be 500 or 1,000. it could be a straight flush or two pair these things are hard to understand the fact is that tesla is something he says that we will look through there's a lot of companies, i have lots of research here everybody wants to -- everyone wants to look through the bad and everyone wants to say, look,

if it's got demand, it's going to go up in the second half of the year i don't think that's wrong the most negative piece this morning was united parcel. and it's too bad because i think that carol tomay will do a terrific job but the analysts are saying we're bigger and the gap stores will dwindle gap finances 5%, 8%? that's not doable. >> but what is the unemployment number going to look like in june how many people will we have out of work? let's assume six months later we cut that in half won't we still have an unemployment rate unlike what we've seen before? >> great depression. if you get more than 20% >> we're at 26 million we'll continue higher, one would expect for the next month. hopefully not, but i think that's a fair expectation.

>> great depression, we had 25%, but no unemployment insurance. here the unemployment insurance is higher than what you can pay your employees so, i mean, there is this kind of money out there, plus the $1,200 you got we must not forget when they expanded the unemployment insurance, what they did was make it noncompetitive to -- businesses not competitive with that we have to think about that. >> i know, you mentioned that. how long is that in effect for it's become a real issue, i guess, in terms of bringing people back. it's a strange part of it. >> i can't bring people back >> right >> i can't bring people back i can't outpay the government. you can't. >> so people really are sitting on the sidelines while they're collecting more than they otherwise would? >> yeah, absolutely. look, other people they don't get -- this is nontaxed money. you get taxed, and you have to work with other people who may

have covid, versus sitting at home and watching reruns or something -- i'm not trying to denigrate what people are doing at home, but we're allout of things to do at home >> it's not unlimited, those benefits do run out. >> they do that's why you have to be careful. mnuchin would tell you, listen, those benefits run out, will those people have jobs i will come back and say please, benefits, run out so people come back to work i think that we as business people have to start recognizing just the notion of reading a story and seeing so many public companies get ppp money and reading so many small people don't get ppp money. don't let our eyes glaze over. these were major, major mistakes made by the administration and bankers, we can't let them get away with it it's not right >> interesting guys, we'll get a break.

on the other side, we'll get to all kinds of news. adidas, apple story in the "journal" regarding iphone production, news on regeneron, gilead and more.

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month and slashing the number of 2020 phones, jim, that it plans to make between july and december by as much as 20%, a combination of demand and supply factors at work they say >> look. i think this is very good actually for apple to get all the bad news out i think there's a perception that when they do report that what will happen is that they'll guide down they can guide down because of this i actually like it when you soften the battlefield, so to speak, and i don't think that -- i think you should own apple, not sell it. but i think there will be people who will be cute and say, you know what? i'll buy this thing after it goes down, and they're forgetting it has the best balance sheet in the country and forgetting it has a good dividend what's been moving stocks are balance sheets and dividends i understand exactly why someone would not like apple, particularly this news but when they go on and they say it, you'll say, yeah, i read that in the "journal." maybe this is a buy. no company is immune when you

cut numbers. i do think that apple is in better shape than others >> jim, when they miss the -- i mean, do they miss the cycle does it get made up? people who defer buying an iphone because it's not available when they thought it would be or because they don't have enough money to buy one, do they come back is that demand conserved for a later date >> i think it comes back in this country we had verizon on last week they have not been able to offer much, but verizon wants 5g, they'll have it. china has a lot of 5g. china is back. you can believe china's back from satellite projections or not. i think apple is coming in cold. but the fact is that remember, they didn't know where the bottom was last time analysts will say, you know what they said they didn't know where the bottom was, they were right. but we have 5g coming up

so i say an inconsequential number apple is a country unto itself we want a company that doesn't have to have debt and we want a company that boosts its dividend i think apple coming out of the quarter will set the table for 2021 a lot more companies are doing that well ahead of when they normally do. typically you don't set 2021 until july, but everybody is pulling it forward because of how crazy and nutty the structure of the economy is right now. >> yeah. to david's point, jim, you mentioned analysts, goldman went to sell -- recently went to sell on what they called the potentially one of the most unpredictable and interesting quarters in apple's history. on concerns about resulting weak asps, we could talk about that with apple or with tesla or a bunch of other premium products,

how much will people be willing to pay when household budgets are under strain >> the volumes are normalizing, but there is a ton of dry powder out there. what do you do with the 7.3 trillion dry powder? if you're a mutual fund, you get money in, the easiest way to do it is say i'll wait for alphabet and i'll wait for apple to disappoint, then i will go in. when covid-19 is -- we have a vaccine, these will be the ones that i want to own there's a lot of optimism after this quarter for places like alphabet and apple because the analysts have been negative going in if the analysts were positive going in, it would be a different setup, you would see the stocks go down i come back to ibm, people are negative going in and the stock is climbing. so i think what you have to do is look at how negative the analysts are, look at the balance sheet. if they can raise the dividend

or if they have a good dividend and analysts are not that crazy about it, wow, look out. that stock could fly and that's what i think this week offers. this week offers exceptional volumes, exceptional values. both >> jim, china is, of course, important to apple as we all know it's important to the likes of tesla as well. the level of acrimony between our country and china will far exceed anything that took place during those two years of the so-called trade war. you've heard it. it will continue there's got to be a risk there in terms of changing supply chains, rising an ttipothy in te u.s., isn't that a risk factor >> i think it is we saw some good numbers when they first started opening in

china. look, i think that it's a cold war, it really is. joe sy, god less him, he was willing to help everybody. owner of the brooklyn nets, a good deed doer, but there's not a lot of good deed doers when it comes to the two countries, i don't think it helps your career in the party if you're helping the united states. >> yeah. gottlieb's op-ed in the journal today about how we're basically -- we better prepare for a vaccine production on our own, there's no guarantee other countries will be as neighborly when one comes along >> yeah. that was something >> we'll take a short break and doer m dh.adas n't go away.

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underweight. they say the trading level on bonds indicates a high degree of risk and they hired restructuring people what's interesting here is once again, who is essential? is hertz essential should it be supported by the government what it looks like right now is no and that hertz offers -- it's something that i guess anybody can do and i am mystified again i think the mercurial and arbitrary way that some companies are treated as essential and others are not should be noted when it comes to hertz. as we know, if you can make this industry less competitive by making hertz hobbled, our prices will go up this is not cruise lines this is something integral to the way business is done in the country. hertz, avis, they compete. it looks like that is going to come to a conclusion so i just say we have to watch this and make sure we understand

that some industries are -- the government has accepted to be wiped out. we have to figure out which ones >> yeah. i don't know which ones. they've given us no guidelines >> hertz's largest shareholder was carl icahn the company was having difficulty given the rise of uber and lyft and that impact on its business, as well keep in mind a lot of its debt is backed up by the cars themselves, >> and those prices are going down, david. >> a restructuring for the company is said to be looked into, so it's worth keeping an eye on hertz because it's fighting for its life at this point it would seem. >> more "squawk on the street" coming back including the opening bell stay with us

welcome back, jim. to our viewers, i wanted to point out the news it on regeneron and kevzara with

clinical results, on the flip side headlines out of japan and abe saying it could soon be ready to approve remdesivir. how do we process the bio news >> i think remdesivir could help 50% to 60% of the people i keep thinking that people -- if this were cancer, everyone would be thrilled with those numbers. because it's covid, we all keep expecting, well, don't we just give someone an intravenous and they're fine the one, fuji film, is doing the best as a pill for -- in these tests. the regeneron news that was exciting was that they have a lung cancer drug that apparently -- where they stopped the tests, and may be superior to ketruda i want to lower expectations in these hospitals, they're thrilled with something that goes 50% to 60% because they lost so many people. we have to be more like that "new york times" article today,

where there was a young lawyer who got sick, he ended up surviving, but in the piece we don't know why he did. it did say that he was at one point taking remdesivir but they didn't know if he was part of the control group. until they article, we didn't think remdesivir was against a control group. so the lack of information about what goes on is just frightening. i mean, i was watching on "saturday night live," i learned a lot more about how things are going. >> are you -- are you watching with bated breath the results of these early remdesivir results >> i was i think it's been really good at mass gen and at the university of chicago really good means the dosing was correct and the date that you started was correct. we had so many people who were told, listen, come back when you feel worse, and what happens is their oxygen level goes down so

badly, they come back and die because they're not using a pulse oximeter, which you can't get. there's no pulse oximeters available. i tried to get one on amazon, they told me to come back a month and a half it's not your temperature, it's your pulse oximeter that matters. >> there's the opening bell. a shot of the tower there in times square maybe the most encouraging news is out of new york over the weekend. lowest number of deaths in a month. phased reopening could begin on the 15th testing accelerating in this country. aiming for 300,000 a day, that would be three times in about a week >> antibodies. doctors would have an antibody test immediately the bears come out and say remember, if you had t you can get it again

i know that's true, wouldn't you love to know you had it already? those would be at the vanguard of who can open things the news is not all bad, the news is mixed. everyonepresumes in new york and new jersey the worst because we've seen the worst i think by this point we all have friends who have gotten sick we have friends who have been in the hospital we have friends who have died. that's not the experience around the rest of the country. so i do feel that people are saying new york's too sensitive, but they wouldn't be -- i think they would be in our shoes if they lived here, too >> mm-hmm. >> i do think the market's reacting to the opening. i think the opening is a chance to go do something with your 1,200 bucks or your unemployment roads are still empty. great to see something open and people wearing masks, and they do physical distancing i had to say wear your mask this

weekend. i would say i got 50/50. 50% of the people told me i was not brave. i have never thought of brave versus mask. i put my mask on am i a sissy does this make me less of a person am i really less gutsy as a 65-year-old trying not to give it to you? is it perfect? no was hand washing perfect nothing is perfect nothing is perfect, until you have a vaccine, nothing is perfect. >> right the mask is an effort, jim, as you know, to make sure you don't one day end up on a ventilator, which was the topic of a "60 minutes piece" last night about gm and ford. mary barra with some eye opening remarks about how they came to alter their production process to pivot towards ventilators so rapidly. take a listen.

>> between the strength of our balance sheet with the steps we've taken in the past, we will get through this, we will learn a lot of lessons that will apply. >> what's the long-term prognosis for general motors if you're not making cars >> no one knows when things are going to get back to what i refer to as a new normal, others refer to it as a new abnormal. >> so today, jim, suspending the dividend, buybacks, extending credit facilities, significant austerity measures to preserve cash >> this is another one like ford where it's a part of the market that used to be very big that you can't own. they are beating cars -- i just find when they suspend the dividend, it crushed the banks when they did that if you suspend the buyback, people just shoot against it i don't know i'm looking for the investment case against gm and i have not

found it versus baxter, versus thermo fisher, companies involved in the process of trying to make sure our lives are new normal, new abnormal, whatever there was a couple upgrades today of car part manufacturers. i don't see a lot of people going to buy a new car at hertz, the used car prices are down 12% that's a tremendous decline. the car market is uniquely bad we have to call that out it's not like as soon as things open people can buy a lot of cars, unless they fear public transit and think that's the place they got sick. >> right though it's hard to imagine a flurry of car purchases in urban areas given the problems that brings up as well in terms of parking and everything else. when it comes to gm, it goes back to the point i made earlier, if you are a company that sells things to a consumer not off the supermarket shelf,

you willsolely focused on surie inine ining shoring up balance sheet. i missed it in all the different announcements that had taken place. >> is ford essential is it an essential company >> it would seem to me >> are they friends with the administration >> i'm not familiar with the nature of the relationship are you saying those that are are being treated better than those who are not? >> i hope so isn't that why you elected him isn't that the nature of it? i'm not lame stream, i'm not mainstream i'm puzzled by who got the aid carnival was extraordinary to me that was an extraordinary story.

an eye-opening story that made me feel -- i felt so foolish i felt it was one of those things wherever the chips fall, and now i don't think that at all. i think that -- i'm still trying to figure out who are the bankers that gave ruth chris who did that who gave it to fiesta? can i have names i'd like to know so if they do go to the supermarket, and i'm sure they have people go for them, i would love to know who they are they're shameful people. they knew what that program was about. they are shameful. and i would love to know their names. i bet you there are people at those banks who would love to give them to us. i'm available on twitter this weekend was amazing we saw these programs for what they really were thank heavens the times has a great reporter and the "journal" too. >> yeah. we know which bank gave the most to public companies via ppp, that's not a secret. the jpmorgan relationship is

powerful 13 public companies, by the way, all returning including potbelly, shack, ruth chris, autonation on friday was the big story. >> that's good i have my six people at bar san miguel, we didn't get it i'm thrilled you know why i'm thrilled? i don't want to take the bailout money at this point. now i won't get it i don't give a damn. when i read these restaurants got it and my six people -- i'm not laying them off. i have -- i have shame but i just don't understand it how did potbelly get it and bar san miguel not luck of the draw roll of the dice does anyone think it was a lottery? thank you, mark cuban, who suggested that if i get it immediately someone will say he squawked on it, he got it fine, i don't give a damn. i thought this was such an outrage. it was incredible. we really -- >> we are now in --

>> it was shameful, david. >> it could have been accomplished many would say, it's easy to say that given the rush we had to try to get money out as quickly as possible it could have been accomplished better in terms of getting the money in the hands of those companies and the small businesses that really needed it i don't know what the percentages will look like at the end of it. thankfully we have the second intai installment that will begin today. that is important. there seems like there's certain parameters around the program that will be more beneficial to making sure the money gets to those small businesses >> wasn't that the point >> it's not like they're sitting there paying their rent, they're not. you still have to wonder in terms of the entire chain, all the different parties that are impacted as a result of the cessation of business. >> why did shake shack give the money back >> why did they?

>> yeah. >> they had access to the capital markets. >> you bet anyone who had access to the capital markets shouldn't have been allowed that should have been a key criteria yes, they rushed it, but that doesn't mean they should botch it am i being too critical? you read those articles, okay, yeah, they botched it. they gave it to potbelly no i'm in the restaurant business are you kidding me you gave it to the publicly traded companies they can get credit. they don't need the government to get credit. but you criticize, it means you don't have access. you're not going to get the call bac back >> the fed's main street lending program was designed and changed to a certain extent to help some of those businesses that have a lot of employees but fit into that key area, not investment grade. that was an important moment as well that took place after ppp was

already announced and sort of put in place so some of these companies, jim, thought they would not have access to that they were looking for an opportunity to keep their people employed if you're ruth chris, you're trying to do deliveries, keep people employed. it's not like you're thriving. completely understand where your criticism is coming from after all this time, it's interesting to hear it as well certainly take it for what it is >> i thought it was the community banks. remember the community banks, doing the best job >> yep >> i want everybody -- ruth chris has a lot of employees i would have thought immediately they should have somebody who is for them >> that wasn't the essence of the program. maybe the screw up was why not have the essence of the program and why not have another program for employees, companies that have big employees this was meant for the 10 million small businesses, all

the money -- the big chunks didn't go there. so therefore i feel like i have every right to say this, because it just seemed like it wasn't for the -- i like the idea that these other guys can get money that's right it wasn't this program i like it if the people work for gm get the money, but it shouldn't be from the agricultural program >> right right. >> before we get to bob and the broader market, you know, nvidia completed the mellanox deal. the antitrust authorities gave the go-ahead and they closed nvidia one of the great performers >> this was big. this gives them the edge comp e computing, now they are in a box with mellanox, there's a mellanox piece and an nvidia chip, now they'll be combined.

it will save nvidia a lot of money. jensen huang is on tonight he said over and over again this would happen the numbers are now too low. they all have to be raised i think that stock can blow through 300. >> jim, we'll watch that tonight on "mad. let's get to bob pisani and get a market check this monday morning. >> good morning. happy monday, everybody. let's call it the hope for the lock down easing rally that's what this is, whether you're talking about the nba, maybe reopening practice facilities, maybe tesla recalling some people. a lot of hope out there that things will start unlocking at this point you can see that in the sectors moving here. semiconductors up today. all the stuff that normally would move here. banks, consumer discretionary, health care outperforming. there's your underperformer,

energy there's a couple of good reasons why energy is notably underperforming. the june and july contracts are weak if you look at the big energy names, diamond offshore, that bankruptcy filing here, hess and occidental, they're probably 50% of the revenues for diamond offshore, that company is in trouble. noble rig, some other offshore drillers that are penny stocks at this point, they're down as well another issue, of course, is uso out there. that's the oil etf, that changed the contracts that it owned. it now owns six front month contracts, july and forward, they own the 2021 contract there is selling pressure on the front month contract this is changing on a daily basis, the uso, the components of what they own in terms of where they are now, i said last week, we sold out a little bit maybe more realistically it's better to call it a

consolidation right now, rather than a retest. it's not a retest. that's for sure. the s&p 500 going into the open was 1% off the highs in april, global stocks a little less than 2% off of the highs. we're closing that gap with today's open the key this week is earnings. we've already got 25% of the companies reporting. there's been a stunningly wide dispersion in the estimate, just all over the place for the first time in 20 years i don't put much stock in store in first half earnings estimates because the visibility is just so poor. jpmorgan noted this morning in their estimate 90% of those reporting have withdrawn full-year guidance, a few are providing second quarter guidance, but when you can't figure out what's going to happen more than a month or two away, you have a lot of problems there. the markets are reflecting some that uncertainty. in terms of dispersion of earnings, the estimates for the quarters, 15% for the first

quarter, and the market believes the second quarter whether that happens or not is not clear. 18% decline for the full year. most of the top-down analysts are much worse than this, 20% to 33%. i think goldman has 33% decline for full-year estimates. these estimates are constantly revised. the two big risks are obvious now. secondary wave of infections once this is lifted on a phase basis. and growth essentially restarts at a much slower pace because the social distancing requirement still constrains any kind of activity that is out there. there's your two main risks. as for today, the markets are still believing in the reopening story. guys, back to you. >> all right bob, thank you very much jim, bob mentions the roping, we talk about it in the context of

georgia, colorado, some other states germany is the other big experiment at vw, 8,000 workers are going back today to begin making vw golfs? >> i thought that was amazing. germany did a lot of things right. i think a lot of places did things right, it's just place to place. i was in favor of the georgia governor doing what he's doing i did not favor certain industries where you can't be safe no matter what. but the idea that if you wear a mask and you practice physical distancing, it's great you're open there's been so much need and pent up demand for things. i do believe that all you have to do is have common sense can you put a mask on and will someone be touching you? can you put a mask on and will the machines be cleaned in the gym? don't stress it, but open it we need america to go back to

work but we need masks. we want to go to a store, the person behind there has a mask, you have a mask. it's not too much tos aing it cuts down, it's not perfect, like remdesivir. nothing is perfect until we get a vaccine, but america needs to be open and it needs to be open quickly. i'm not against these guys who want to open it. i'm against people who do foolish things how can you stop people from doing foolish things we're not in spain where my daughter is faced by a policeman in madrid when she tries to go to the supermarket that doesn't happen here i do want -- i think i want america open i salute the georgia governor. i wish he had not been so aggressive and picked trades that we all know you can't be safe at. >> right well, some businesses even with the loser restrictions are sitting it out in the early going like macy's, gap fda is now saying that 1,500 manufacturers registered to make

hand sanitizer, though they point out it's not meant for ingestion, inhalation or intravenous use. >> yeah. >> i want to get to rick santelli and look at the bond market and a fed meeting later this week. >> yes lots of central banks meeting this week, carl. bank of japan, ecb, our fed, and, of course, it doesn't end there. auctions we have two auctions today two-year and five-year, 11:30 and 1:00 let's look at the two-year note, and let's look at two weeks of the two-year note. on the 15th of april we had the low yield close for this cycle, that goes back seven years and that was 18 basis points intraday low was 18, 19 was the low close. if you look at the five-year low, the intraday low is 30 basis point, and the all-time low yield close is 33 basis

points if we look at a month to date of tens, what really should jump out at you on this chart is the fact that 77.57, the highs and lows on a closing basis, 57 and 54 basis points from the previous month was the all-time low yield close. finally let's look at the dollar index. as we speak, it's losing that 100 level. we lost it a couple times. looking at a two-day chart we went from just shy of 100.43 was the exact high, down to below 100. still very powerful if you were to look at a 20-year chart you would notice we don't spend that much time above 100 which gives us a glimpse of the notion that there's a lot of things going on that maybe not so much the do downside of the strong dollar, how painful it was to certain parts of the globe like emerging markets, but all things considered, our central bank is doing the most heavy lifting and

it should not be surprising that one of the channels of dollar strength is good things global investors aim for the u.s. carl, jim, david, back to you. >> rick, thank you i will take it rick santelli with the bond report we're going to have -- well, he's actually now the executive chairman of medtronic joining us to talk all about that company, of course. it's a key part in terms of ventilator and what it's overall business is looking like right in and out that's in the next hour in "squawk on the street. stay with us

s&p 2858 a lot of unanswered questions this week. how will earnings come in? what does the fed statement say wednesday? does the cdc loosen guidelines we're back in a minute i wish mym worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪ soon, people will be walking back through your door..

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so we're working 24/7 toected maintain a reliable network, to meet your growing internet needs. we're helping customers who are experiencing financial difficulties stay connected. we're increasing internet speeds for low income families in our internet essentials program. and delivering self-install kits to your door. nos comprometemos a mantenerte conectado. we're committed to keeping you connected. for more information on how you can stay connected, visit xfinity.com/prepare. let's get stop trading with jim. >> the best performing stocks in the quarter one is apache. a lot of people focus on

occidental no when apache goes down, when you see the front of oil going down, which it is, the etf frantically dropping the front future. that's the sign this has impact on the oils. the oils went up the whole times it was down to $37 a barrel. watch apache that's your gauge. find out if it's real or not >> yeah. we never even got to diamond offshore and the impact on lows this week. >> they had that modern week it was a jackup shallow. it's not where people have been looking for oil. the -- look, the big oil service companies are all really hurting. halliburton has gone up big since the quarter reported but those stocks were due in fact let's see what happens >> jim, nvidia tonight >> yeah. it's gaming but it's also wide

area computing it's the data center computer. jensen huang is our greatest business person and a true engineer his building was designed by him. he's a delight and so smart and so honest. the opposite of a lot of the business we talked about today i feel sad about that. >> i wanted to squeeze in food supply ties within a full ad in the new york times saying millions of pounds of meat will disappear from the supply chain. there's beyond meat. today it's downgraded with ubs with a sell. how much are you thinking about? >> impossible which is private has a much lower food service business i wish impossible would come public we would buy the heck out of it. their business is extraordinary. i think beyond meat has the

robin hood thing they want, and the people -- the younger generation is not as cynical as the older. they want to buy things that are eco systems. and ethan brown has told you, listen, it's not a question of the quarter. it's the question of the decade, and by the way, if meat goes up versus plant, plant's going to be bought. they've always been waiting. they can bring down the price of plant. the price of meat goes up and it's great for beyond meat >> yeah. the average beyond meat patties double the price of a regular patty, and obviously if the spread comes in, jim, the competitive pressure gets lessened >> you bet and that impossible burger i know has gmo, but wow, it's tasty. >> all right we'll see you tonight. >> thank you >> it's going to be a big one. nvidia on mad. 6:00 p.m. eastern. good monday morning. welcome to "squawk on the street," early session high on the dow

was up 156 on a busy week. the busiest week of earnings season it was pointed out it's only the second time that gaggle, amazon, microsoft and apple with all report in the same week. >> the maga trillion dollar club as they're known in reading the research notes over the weekend, a lot of strategists and traders make the point this rally we've seen, it has been strong and fast it's been impressive, especially in the face of seemingly really bad news on the economy and on the health front really does have to do with the mega cap stocks and the narrow leadership it's not the entire market, but they make up a big part of the market there was a note showing the advanced decline line has bounced in a pretty weak manner relative to what we've seen basically in all of 2019 it shows you there are winners and there are losers the winners just happen to be

really big and they're driving the mark they look at the s&p equal weight index which is lagged particularly hard. that shows you where the strength is. i guess the question we're going to ask and get answers to this week on the back of the earnings is how recession proof are the companies? we know they have strong balance sheets that's not really a question but what is their business going to look like for cloud, for advertising from google and facebook in an economic recession? and just how much are they expecting that pullback to be? >> yeah. i mean, as you point out they are the mega caps and have businesses that benefit, but they are different to a certain extent you mention advertising. we'll keep an eye on the small and medium sized businesses that are important for facebook, or amazon advertising, important because it's a significant margin business for them as well and has contributed to their

profitabili profitability. aws also a hugely important business for amazon. which we know the old regular business is doing extraordinarily well but yeah, we're going to get some real insights, particularly for the companies that either rely specifically directly on the consumer or on consumer spending and sara, you know what that looks like or certainly the expectations for continued decreases in consumer spending might befairly significant >> absolutely. if you don't have an online business, you're not bringing in any revenue if you're a retailer or consumer even if you have an online business, most of those businesses are what, 5 %, 10% of overall sales. even adidas who you're going to hear from the ceo later in the show clearly that's going to be a big issue. the retailers are going to be a big issue, and then the focus on the markets continues to be on this reopening of the economy and of certain states.

and not just certain states but countries around the world with vw restarting the factory production in germany. it's encouraging headlines like that colorado, mississippi, minnesota, montana and tennessee, they were set to join other states in reopening businesses now and that's sort of the headlines over the weekend that i'm finding in a lot of these notes on top of georgia, oklahoma, alaska and south carolina and even jpmorgan put out a note on retail saying some of the winners could be retailers that operate in the south in the states that are starting to reopen versus ones with heavy concentration in the northeast because we're starting to see a real divergence and we're going to see an experiment for states like new york waiting more until mid may to start on construction and manufacturing, it's going to be an experiment to see the southern states open up. in georgia restaurants for dine and service are open >> especially if they can do any of this outdoors we're going to see retailers get

really creative as to how they merchandise their goods. try to keep consumers and their employees safe let's continue this market conversation and bring in wells fargo cio and citi's strategist. good to see you both >> good to see you as well >> tobias, looking through your notes this morning, i see her we suspect the s&p may be ahead of itself for now what do you mean >> look, we've done some work five weeks ago when the market was significantly lower. we thought there was a range that we were under panic territory. we're now squarely in neutral. markets have rallied pretty hard there are some significant risks out there into the trajectory of return to what we might call normal normalcy, but that's still to be determined >> are you paying attention, or

concerned about concentration in some of the large tech names we mentioned a moment ago >> yeah. we had written about this last week not necessarily four or five names but if you look at tech ya and add in communication services and the internet marketing component of consumer discretionary, it's up to about 39% of the s&p 500 market cap. any time you get close to 35%, these are nonsustainable we look at energy in the late 70s or look at the tech tmt bubble in the late 90s, and similarly financials in '07, '0 8 before everything came apart in. >> all right so kirk, what are the implications for the markets does it necessarily mean as some argue over the weekend that you have to come down to let the rest of the market catch up to those big names? >> well, not at all. i think the ramifications is

playing out. the fed created winners and losers, and the large caps and the tech stocks have led here. i think the thing i'm focussed on is the small caps which are really trailing. so i think it's a tail of two cities you the big winners that are going to survive, and then you've got a lot of the economy in the small caps that are trailing significantly so i don't think the large caps have to go down for the rest of the economy to catch up, but clearly we've got to focus on the smaller areas and seeing i that plays out >> tobias, we were talking about earnings season. revenues and earnings seem steastea steal -- stale companies aren't giving guidance or metrics so what are you looking at for valuations on the companies? >> we anticipated the first quarter would be sort of okay. the second quarter was really the disaster quarter

you're seeing not just the manufacturing sector down but also what used to be our great us buffer, service sector is hurt by work from home, shelter in place social distancing in a way we've never seen it before services used to be a buffer now they're our achilles heel. that should improve as the year progresses we anticipate an improving trend. the question is the speed and duration and god forbid hot spots and second waves and shutting down spots we reopened. that uncertainty suggests more caution in here. and i agree with the comments about we don't have to necessarily see the big caps get crushed but they probably start to underperform. >> right, but when it comes -- kirk, i'll ask you this question, to individuals selecting a particular stock they want. in the absence of earnings data that's fresh or an outlook that

can be seen, what are you telling clients to pay attention to >> well, i think you want to focus on companies with strong balance sheets that are going to survive. surviving is winning here. i think the fed made that very clear. i think you want to look at the obvious sectors in cloud computing, paper, industries, medical. it's going to be a different economy, and you want to focus on those stocks and those cities that are going to survive in the any wor-- new world i think the nature of coronavirus has accelerated the change to the information economy working at home and we're all going to have to get used to that >> if you ask me, sara, look, at -- >> tobias, i want to ask you something. the s&p a year ago, i don't recall exactly on this day what we were concerned about for the market or -- but i can tell you a lot of things we're concerned about right now, and a year ago

the s&p was trading 2.5% below where we are right now does that make any real sense to you? >> i'll flip it a little bit, david, and say if you had sat there and told me at the beginning of the year that 3.5% unemployment we might end the year at 9% unemployment would the market be only down 10%, 12% from the beginning of the year i would say probably not, but we've had a significant amount of stimulus coming both on the monetary and the fiscal side now, i would argue this is more of a replacement of stuff that fell away. so essentially it's compensation for the problems we're facing in the economy as opposed to necessarily expansionary policy. but i think that's part of the reason why markets are doing so well you've had substantial amount of stimulus which was appropriate, but again, maybe we're just a little bit ahead of where we should be at this point. we need to see if some of the fundamentals play out. i'd watch the restaurant stocks and activity to see how comfortable people really are

going out there and mixing with others when we were all young, we used to refer to somebody else as having coodys. today we are thinking in those terms broadly, that everybody has koodies. >> you talk about the fund want talls playing out. i can give you a long line of ceos who have come on who will tell you they don't expect their businesses to rebound for at least 24 to 36 months to the level they were at the end of the 2019 doesn't that call for some sort of a revision in terms of what we expect and in the multiple we're willing to pay in this market >> so interesting on the multiple side. certainly the other guest, the average forward p of the market is 16 times. if you go back to 2009 we were paying over 20 times i would say it's between there is probably right. this is such a uniquely weird

experience for some. the market will probably give you some credit. but i doubt we'll trade at the 20 and somewhere between >> kirk, oil is down another 30% today. it sort of gets at this conversation about the stock market is not the economy. it's not having a huge impact on the stock market, but it is expected to have a big impact on the economy. so what does that mean for the stock market >> well, there are clearly sectors of the economy and areas that are going to suffer like houston or the oil patch i'm of the view that the problems in the oil sector long-term are not going to have a lasting impact on the economy. the oil sector will recover. these are supply and demand imbalance. and the other thing i think is a silver lining is lower oil prices is going to keep inflation low. don't forget that the size of the fed intervention and the fed put on support for the markets is very dependent on low

interest rates and no inflation. there's a svilver lining to low oil prices keeping the inflation pressures low. >> finally, tobias, energy is the only sector that's downright now. health care is doing well. financials are doing well. where do you think the best opportunities are sector-wise for a long-term investor that is willing to ride out the short-term payment you and others are predicting right now? >> look, we think health care is clearlypart of the pandemic relief issues and there's certain things, let's say elective surgeries that are going to come back health care services are probably not a bad place to hide out right now. if i look at the longer term, i would say the banks have been beat up mercilessly. we're not looking at the same development as '08 i would look at tech hardware and chips as opposed to software and services i think there's too much concentration in the software and services crowding into the

areas where they believe they have the strong balance sheet, free cash flow i think there's just too many people crowded in there right now. >> finally, kirk, you know, as we're all groping in the dark trying to gauge the progress of the recovery, i wonder if you looking more to things that we were looking at in china in january like rush hour traffic returning, or airplane seatings, or restaurant reservations or for you is it more about watching a central bank, specifically the fed, put some policy moves into operation and the policy execution part of that >> well, i think that we're borrowing from our future to fund growth and stability. i would argue the central banks aroundthe world are doing that china is rebounding, but china, japan, ecb, the u.s. fed, tremendous supports for the market so i think we're all benefitting

from that, and the question in my mind is not the near-term but the longer term. what are going to be the lasting effects of central bank balance sheets we're borrowing from the future to fund the current stability. is that going to dampen growth over the next 12 months? so the market right now is priced for perfection. it's hard to argue that the economy and the economics can justify this level but, on the other hand, when these kinds of central banks stimulus, it's hard to see the market going down too much >> fed, fed, fed >> yeah. that's a big part of why the year on year is as unchanged as it is. thank you, guys. look forward to talking again soon >> thank you zl. >> take care financials in the top spot in the market right now. jpmorgan leading the dow the ceo of adidas on the other side of this break don't go anywhe.er we're back in two minutes on

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to keep customers and employees in the know. to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us. adidas reporting first quarter results today. seeing a 19% decline in net sales as 70% to 80% of the sales worldwide are closed right now because of the pandemic. we sat down this morning with kasper rorsted >> in the first two months of

the quarter, everything was really normal and then we saw a dramatic basically falling off a cliff early mid march. it led to the 70% to 80% of our businesses closed down if china and -- in a global company, that's a huge change in our business model and that meant we had to move to a balance sheet. the biggest change any of us have ever seen in running a business >> china is back online, you said, after being closed far good portion of february what are you seeing in terms of resumption of normal buying activity in stores >> we're seeing it's moral for our side before they open. we're seeing lower traffic in the store, a lower conversion rate we're seeing online by the end of the quarter was higher than normal retail was on path and our franchise partners people are slowing coming back to the stores but the conversion

rate is lower an the average transaction is lower but we are seeing a dramatic improvement. >> the average transaction is lower. are you saying there's a lasting impact you're anticipating for consumers? >> i don't think so. i think it's a temporary impact. the inventory is low and there's a lot of promotions going on i think over time it will normalize, but it's going to take a while we expect china to be back at previous year's later probably the end of the second quarter. the best model is to see how will the world come back and reopen >> what are you projecting for markets like the u.s. and europe >> our projection is minus 40% for the second quarter deteriorati deterioration. the reason is pretty much all of april '80% of the world has been closed down. we expect -- we're seeing as in china an upturn in the economy, and then as i said sequential upturn >> when we start to open stores

in the united states, how is it going to look? what are the changes for shopping >> there's in doubt social distancing is going to be a big part of it and that's what we're seeing in europe how many people you let in the store. wearing face masks and how fund wa ment tall has the shift been to e-commerce you might have somewhat going back because you want to be in the store, but the stores being full of people in the short-term, i don't think it's going to be socially accepting >> you project a 40% revenue decline. why is that not even more with 70% to 80% of your stores closed is online making up the difference >> online is growing and we expect also in china and china is a big market for us last year china was 23% of our reven revenue. if you take that, korea is about 3 to 4 % those are coming back. and last year e-commerce was 13%.

that's expanding a and then we expect gradually opening in different markets >> what's going to happen to retail overall your company was doing well going into this, but so many mall-based retail were suffering. now with the complete shutdown, i think there's questions about whether some of the big stores open back up >> i think that's a very important point. there's no doubt that a number of the stores aren't going to open up. that's where you'll see the profound change to online. we'll continue to have a very strong retail landscape. and what i think will happen for the sporting goods industry in the medium term, there's no doubt the coronavirus has made people think much more about their health and how -- how healthy lifestyle do you live that will eventually be an up side that's medium-term if you've been confined to a small space for six, eight, ten

weeks, there's nothing else you want than going out and moving, running or walking i think sporting goods as hard as it sounds will eventually benefit from the consequences of the coronavirus. >> kasper rorsted, ceo of adidas in terms of which products are benefitting, interesting tidbit. sales of the sandals people usually wear around the pool in the summer growing hundreds of percentages at people work from home obviously not nearly enough to make up for the huge decline in sales that they are seeing globally with 70% to 80% of their stores closed. and just on the conversation of the balance sheet which is really front and center for so many companies this quarter, and there were some questions about adidas, because kasper confirmed they did take out a 3 billion loan from state-backed loan from a german bank just to protect themselves and to access liquidity as much as they could during this

ongoing shut down. he said they have 2 billion euros of liquidity of cash to get them through the year if fe needed they're paying their rent now and their bills. though, they are, carl, facing like so many of these other retailers, not getting paid on time from their clients, from their suppliers. and also dealing with a number of their stores virtually shut down the stock tells a story. it's down 30% over the last three months nike, only down 12% over that period >> yeah. i wonder when he talks about stores reopening and sort of wanting sporting goods in the wake of all this, because you've been in your house for two months, i wonder to what degree pricing becomes a more powerful dynamic vis-a-vis adidas versus lulu or under armour >> i can tell you he mentioned there are lots of promotions going on right now in china to get people back into

the stores, in the u.s., if you go on adidas.com you'll see loads of sale prices so clearly that's going to be a big part of the recipe and that would suggest prices come down until they get to a more normal period of business i asked when do you expect your business to go back to where it was before the pandemic. he said absolutely no idea one of the reasons we scrapped our annual guidance, and it's very hard to tell. they're looking at the epidemiology models like the rest of us they're trying to brace for all sorts of scenarios including a "w" shaped recovery if we go into lockdown on a second wave but right now it's just unclear. >> our thanks to -- >> sara, you said they aren't -- >> go ahead, david >> they aren't paying rent, you said they have large spaces in some serious urban areas that are pretty expensive, but they are paying their landlords >> they are paying their landlords. it was something i specifically asked them to confirm, because

over the quarter when this first started to shut down in germany, which is their home base, they had stock. they took advantage of a german government program which allowed for companies and retailers and small businesses to stop paying their rent much like we're seeing here. but they were criticized harshly on social media and in the press because they are such a big powerful company and immediately, then, sort of reversed course and are paying their rent fully and they do have the access to capital as i mentioned through that bank loan so they're feeling okay about the situation right now given the lack of revenue coming in. let's move onto our etf spotlight today. we're looking at the consumer discretionary continuing the consumer theme. ticker xly is outperforming the s&p with a 16% gain so far for the month. it has been a strong april for the top holdings got to talk about amazon here. it's up 24%. and that, of course, is the biggest waving home depot and mcdonald's doing

well dow is up 210. pushing higher as far as the overall market, it's up 1%, and technology is helping fuel the gains with the nasdaq up 1.1% banks at the top of the pack today. we'll be right back. since my dvt blood clot i wasn't sure... was another around the corner? or could things go a different way? i wanted to help protect myself.

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featuring the emmy award-winning voice remote. access to your favorite apps, including netflix, prime video, youtube and hulu. all without changing passwords and inputs. the most 4k content and movies and shows on any screen. the best entertainment experience all in one place. welcome back let's get to sue herera for an update on all things coronavirus related. >> good morning. here's what's happening at this hour british prime minister boris

johnson has returned to work full-time after recovering from a three-week fight with covid-19 johnson says britain is make progress greagainst the virus b people must stay vigilant so there's no second spike in infections >> we're beginning to turn the tide this is the moment of opportunity. this is the moment when we can press home our advantage it is also the moment of maximum risk >> the number of air travelers going through tsa check points hit a high on sunday nearly 129,000 people, but that's still down 95% from the two and a half million travelers on the same day last year. the fda says it registered more than 1500 additional makers of hand sanitizers this as more companies seek to address the surging demand the fda is reminding producers

they must use denatured alcohol to help prevent small children from ingesting the product in march, calls were up 79% from lower levels as more, get more on our coronavirus coverage by heading to cnbc.com. carl, over to you. >> thank you very much watching the markets on this monday we're holding 2865 when we come back we'll check in with the executive chaman irof medtronic, omar ishrak don't go away.

medtronics, acompany at th center of many conversations involving our response as a country to the covid-19 virus. omar ishrak has joined us a number of the times as the company's ceo. today it's day number one as the

company's executive chairman while i certainly want to go to a discussion about ventilators and the production of those, i thought i'd start off on medtronics' business right now you gave us an update on april 21st what are you seeing in terms of demand from hospitals, hard hit as a reduction in non -- unnecessary or elective procedures and perhaps they're pulling back from future orders what is the impact that's having on your business and how long do you see that continuing? >> well, a number of things. first, it's great to be back, and i want to congratulate the new korea. i -- ceo. going directly to your question. obviously as we mentioned in the recent release, we've had a significant impact in procedures based on hospital procedures going down what i want to emphasize is there are a number of these procedures which contribute to a significant portion of our business they are actually urgent

procedures, not elective these are for heart attacks, strokes, things that have to be done and care is to be given to the patients without which the mortality rate will increase we are seeing increase in mortality nonco-vid related. we are working very closely with hospitals who are ready to accept those patients. we feel there's a fear of patients of visiting hospitals and hospitals want to ensure patients if they have an issue, dial noi9-1-1 and get to the hospital they need that treatment i think that's what we're focussed onto make sure that patients who need care get care. we're doing everything we can with all our capabilities to address that issue hospitals are prepared to take this on and we have to help them and have those patients get the care they need it is extremely urgent the elective procedures are a

little longer term the recovery there will happen as well. >> it will you know, you obviously reported u.s. weekly revenue declined about 60% year on year on average. the rest of the world down 40% to 50% numbers of which, i'm sure you never anticipated like so many other people who run other companies never anticipated. how long do you think the rebound will take? >> well, you know, that's obviously difficult to predict, and almost impossible to be correct about it at this point we do think that in health care, especially thor gent cases, the ones i just mentioned, the recovery will happen quickly it will have to. the mortality rate are increasing at a rate that is not acceptable by anyone and i'm sure that we will work together to address that problem. we just cannot let that happen we think in the urgent procedures which are critical to recovery will be relatively quick, and that will happen in

the u.s. and western europe and other countries around the world. the elective procedures we're working onto also provide sites of care which are safer. to provide hospitals and physicians with capabilities that they can do that's much more difficult like i said, to predict than we're probably -- or will probably take a little longer the other point i want to make medtronic has a good balance sheet informal we'll see through this and we'll emerge stronger and better and we think that, again, the urgent procedures are the ones that are the highest priority and then we're working with our physician partners and hospital partners to set up sites of care so that the more elective procedures can also proceed. remember, they're elective, but they're necessary as well. i mean, no one is doing this for no one, and over a period of time, that will become pretty important. >> yeah. no doubt and very important, obviously, for the hospital systems as well as we know which certainly need

some help. >> indeed. >> but when you're dealing with a lack of visibility as the company's executive chair now and your new ceo is dealing with that, do you have to pull back in certain areas are you continuing r&d at the same level and production at the same level i know t and e has been cut because no one is traveling or come down, but how do you approach it given you don't know what the future holds? >> first, we make health care products, and all these products are for patients' benefit, and a lot are urgent the urgent procedures' manufacturing is being maintained at the levels before. that's required. and the safetiy for employees are critical we have procedures in place to maintain the appropriate social distancing and other procedures. and so in the manufacturing area, you know, we've kept us going at close to our original rates. prepandemic rates in most areas.

equally our sales people are going in and supporting physicians they're doing that without any compromise at all. obviously with the procedures being done by the rates you talked about earlier, that work is somewhat limited. our production rates are going at pretty much up there. now, you know, over time we might have to reduce it a little bit, but we'll watch and see r&d we're focusing on to the degree that r&d can be done without having to go to work people are getting programs done through remote work. that's holding quite well. in areas that they have to go into work where the lab work is necessary and they have to work with each other, we're trying to prioritize that as people return to the workplace, those areas where we can accelerate their dpra graduated reentry into the workplace. so r&d areas can be remained

we have a lot of revolutionary products in front of us. we're excited about launching things that impact patients and we don't want to delay those clinical trials have been slowed for obvious reasons and over time, we'll bring them back. but r&d programs are pretty high priority for us. >> omar, it's sara a few weeks ago there was a lot of panic about how many ventilators we had in our hospitals here in new york, and across the country are there any shortages still going on are there any states that haven't been able to get the ventilators that they need and globally is this an issue still? >> well, i think the u.s., the situation has stabilized as the needs have become more understood and it looks like there are enough out there however, the use of ventilators and the appropriate -- the right ventilator for the right patient at the right time, those protocols are still being

developed, and that's why you see a mortality rate that differs from state to state to some degree which this application of ventilators and the protocols has they're being developed will improve over time that's the kind of work in the u.s. we're still allocating according to clinical need, but that process is progressing in asian countries outside the u.s. where the pandemic hasn't fully hit, those countries are highly underprepared to take this on. if it reaches the state where icus or critical care is required we're doubling up in our manufacturing to support these countries where the populations are much larger. they're building icus from scratch right now and have a high demand for ventilators, and we're in the process of trying to fulfill them. you know, the third party partnerships that we've created from our open source agreement, we talked about a few weeks ago, that has really moved very quickly. you know, we mentioned the production rate of about 1,000

varie ventilators a week out of our own factories by june. that number through our open source partnerships will increase, maybe double that number by june or july and through that we hope to serve these emerging markets where not only do they need ventilators but training in helping set up the icus and we need to be prepared. they have the potential of a much larger crisis that is always there we hope to prevent it and hope it doesn't happen, but we must get prepared >> absolutely. you reference this, but there's a new study out that showed of the 12% of patients with covid-19 in the new york area, new york's largest health system that did have to have ventilators, 88% of them did not survive. why are those numbers so high? >> well, first, these patients are in critical state. and also those numbers vary

according to state think the numbers in florida are a little better than that. we found the usage of ventilators earlier in the process is probably warranted. that's leading to better results and also the weaning spreproced from the ventilator is important. the protocols we're learning it's a new disease it's something that is new to the system it's not exactly the same kind of treatment protocol as pneumonia and flu. those protocols are being established. and as they're being accompli established, we think the death rates will reduce, and that the success rate, in other words, will improve and use of the right ventilator at the right time is extremely important. and in other states we're beginning to see some of that impact having said that, you know, even if the rate is 80% or 60% or whatever, the death rate, you still have 20 % or 40% of people who live we have to provide ventilators to patients, because we have to do everything possible to make

sure that we've put in every effort to improve the survival rate but i do think the protocol, establishing the protocol, is something that is happening rapidly in the u.s and something that will help that death rate sort of go down over time. >> speaking of that, i wonder our viewers wake up every morning and try to look at the number or the metric that's going to tell them how we're fairing versus the prior day, and for some people it's the number of tests. some others it's case load it's the global deaths you must be privy to much more granular and proprietary data. is there one number you look at first? >> no. i don't know if you have much more granular data i think the only thing that we look at is in working with our physicians you know, what working and what's not and some of that data around death rate is something that we do look at but that's not daily that takes time to accumulate. and sort of correlate that with

the procedures that happened outside of that, we're just looking at the same models everyone else is and trying to do proper allocation of the ventilators to the right geographies where their need is the greatest and so we are looking at the university of washington data, the other data that everyone else is looking at to make sure that these ventilators are moved to the right place and we also have a loaner pool it's our own sort of rental equipment and so on. we also use it and deploy it in the same way so those are the two things we look at. the death rates are -- sorry, the way in which the pandemic is increasing in different areas, and through that, establish our allocation process and the other is look at protocols. and look at the death rate and see if you can make sense of the protocols and try to train people to use the right protocols to improve that death rate in various states >> and finally, omar, you know,

you mentioned it's a learning process and we are still learning are you surprised how little the medical profession seems to know on the frontlines at this point about how to effectively treat the virus? >> well, look, this is something new. and i think the medical profession, you know, is highly qualified. they're the best in the world and they're doing everything they can i'm not that surprised because it is something that hasn't happened before. in fact, the other way around, i've been impressed at how innovative the physicians in particular have been with the limited resources, limited data to do the best they possibly can. under a lot of pressure. so i -- you know, we have full support of the physicians and are actually highly impressed by the work they're doing, and you know, this is a situation which is completely unknown. it happens all of a sudden, and you've got to use your best judgment with the best data and make decisions on the spot given the circumstances, i think

the physicians have done admirably well, and our support goes out to all the frontline workers out there for the work they're doing. >> without a doubt no doubt about that. omar, always appreciate you joining us thank you. >> thank you thank you very much. dow 24,000 is back we'll try to hold that as the dow is going for the first 4 k win streak life isn't a straight line. and sometimes, you can find yourself heading in a new direction. but when you're with fidelity, a partner who makes sure every step is clear, there's nothing to stop you from moving forward.

one top strategist says the ground opening of the economy will play a big role in determining whether stocks can move hheigr from here. more "squawk on the street" on the other side our members understand social distancing. being prepared and overcoming challenges. usaa has been standing with them for nearly a hundred years. and we'll be here to serve you for a hundred more. ♪

welcome back to "squawk on the street." stocks are moving higher this morning with most sectors in the green. energy has been an outlier lower today as oil continues to plunge financials are outperforming today led by stocks like huntington banks shares, citizen's financials, raymond james and keycorp. insurance related sectors are leading the way with principal, ashurnt, and globe life and prudential big banks are up more than 3% including jpmorgan, wells fargo, citi, and bank of america. sara, back to you. >> thank you we'll take a quick commercial break. checking in on how the markets

are trading. we're seeing gains after weakness last week the overall market, s&p is up 1% the dow is up 223 points nasdaq is up almost a percent. financials, real estate, and consumer discretionary in the lead consumer staples and emergency are negative 173 s&p companies report earnings this week a fed meeting as well and the focus continues to bon ae slow reopening of the economy stay with us at leaf blowers.

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as you may know by now, hundreds of publicly traded companies have received ppp loans. robert frank is with us with a look at who got some of the

loans, who is returning the money and why the returned money isn't necessarily going to small business hey, robert. >> good morning, carl. more than 200 publicly traded companies received those ppp funds and the total amount for those public companies $862 million. that's according to new sec filings compiled by fact square. the backlash against the publicly traded company receiving money that was intended for small businesses escalated over the weekend with new details about the two largest receivers of ppp funds, now companies affiliated with texas hotel owner monte bennett received over $126 million in ppp funds, ashford hospitality trust, a reit that owns dozens of hotels under the ritz-carlton, hyatt regency or other brands, received ors processed $76 million through

117 separate loans, treating each hotel as a separate borrower braemar hotels received $34 million. ashford saying it plans to keep all the funds received under ppp which were the result of the application process and other specific requirements established by congress. then you've got auto nation which is, of course, the mega dealership received at least $77 million from ppp it used separate tax i.d.s for dozens of more than 300 dealerships the company sayings after a "washington post" article all the funds would be used only for 7,000 employees and nothing else and that it is now returning those funds. in addition to auto nation we have 12 other companies that so far have announced plans to return the money totalling $95 million those include ruth's cyst steak house, shack shake, the investment management company, the sba saying eventually all this money will be recycled and go back into

other loans, but it's unclear whether it goes into the first $310 million program, $350 billion program or whether it will go into the new $310 billion program that start today. either way the sba saying some way or another the $95 million returned will go back into the system, but again, we've got over $860 million that went out to publicly traded companies most of that is staying with those companies. guys >> yeah. you would hope it goes back into the system for small business. robert, thank you. robert frank for more on the new round of ppp funding made available within the past half hour, we are joined by the president and ceo of consumer bankers association, richard hunt welcome, richard so how many of these kinks, the fact that it's going to big companies and those that may not be the intended recipient, the small businesses on life support, how many problems will

be fixed this time around? >> well, thank you very much and a very good morning. keep in mind, 96% of all loans distributed in the first batch went to those businesses seeking $1 million or less yes, you hear stories about people where the program may not have intended to go, did receive them, but yes, we're working with sba and treasury and congress those moneys that have been returned, hoping to get out into the accounts of small businesses we're working night and day, 24/7 to see if every single person in this country who is affected by the virus can receive money immediately. we just started the second batch. little bit of a rough start. we think it is better with the sba e-tran system. that's our number one goal is to get money into the hands of the people who need it the most. >> is there enough money for that >> i don't know. the secretary of the treasury said yesterday it would be turned a success if all the

money is distributed this was a very much in demand product person we think every dollar is accounted for already. when this is evaporated, we'll take another look and see how many loans are still in the pipeline we think there are more loans in the pipeline than there were distributed during the first go around >> what can you tell us about the community banks participation versus the large banks? has it been easier, smoother >> yeah. it's a totally different banking module between community banks and large banks. there are 5,000 lenders who are participating in this program. some people had more stringent and know your customer regulation overhaul than other people do. look, this is great. small banks, regional banks, large banks, even fin techs and credit unions joining together to make sure we get money out to the american business person as soon as possible

i think while there's been some glitches, this will go down as one of the best periods of time for the banking industry this program did not exist over a month ago. the sba usually does 58,000 loans per year 58,000 per year. we're looking at probably doing $3 million from $20 billion in the dispersements to $600 billion. more loans in 12 days than in the previous 14 years. >> sir, am i better off if i'm a small business looking for the money now going to a small community bank, as opposed to a larger lender? am i going to get my money more quickly? >> well, if you're not in the application process now, the odds are not very good you're going to get an application approved in this several of our bank have already told potential applicants not to apply with them because they're not sure they can make sure they can get everybody through their current system congress did appropriate more

money to community banks and banks between 10 and 50 who may be at the lower expense. i think the lower have their hands full processing what they have that's why they process existing customers first, they knew them and could process the loans so there would not be a bottleneck for non-customers coming into the banking industry >> richard, finally, i know there's been anecdotally some issues finding the link on-line for new applicants today any advice for people who are in the market for these -- this relief and in the end, are we going to look back and say that execution was the real problem here or the lack of funding overall? >> sure. look, i know today is monday morning and everybody can monday morning quarterback be but surely we can look at what did we get right and not get right one of the things make we should have done, congress should have done, only allowed those loans understand a million dollars and let the larger loans go to the main street lending program.

lot of investigatory committees will be happening after this is said and done. the number one objective at this moment is to get the money into the hands of the small business person >> and did you say that if you haven't already submitted a loan it's too late? >> it may be too late for this batch. we have 3 million applications in the process to be dispersed it's going to be tough if you're not in the system to do it this program came about a month ago and we're going to take a pause when this money has run out and see how much demand is still left and then congress may have to reappropriate. >> richard hunt, thanks for joining us keep us posted >> thank you. >> from community bankers association. carl >> thanks very much. good morning welcome to "squawk alley." i'm carl quintanilla with morgan brennan and jon fortt. ahead of a busy week, earnings season, busiest of the season,

fed meeting on wednesday, reclaimed dow 24k, and now the best month stat we've been watching on the s&p has to go back to december of '91 to see a better month than the one the s&p has put into place so far this month >> yeah. just to put it in perspective not only how far and fast the markets fell coming into the end much march but how quickly they've rallied which speaks to the fact you have two camps of investors right now. you have the folks that believe we could see a re-test of those march 23 lows, that's still on the table, especially as we get more data points including some of the ones we'll see this week, earnings, more guidance pulled, some of those numbers in freefall and what could that mean from a fundamental basis and the fact that you have the first read on gdp for the first quarter as well. jobless claims, some of the other key stats and thens the other camp of those really looking past to what's baked in as very painful and devastatin