pete all right. i think we lost pete najarian. after the closing bell today, big earnings reports of alphabet, parent of google an starbucks. two stocks to watch in the afterhours session kelly evans picking up the breaking news coverage and she starts that coverage right now thank you, dom welcome, everybody, to "the exchange." i'm kelly evans and stocks are searching for direction struggling to make a fifth straight day of gains. dow up 380 at the highs but up 70 right now s&p up 1 point and the nasdaq turned negative by 61. energy is weighingon sentiment again with an another wild ride for oil. one point today we fell 20% to a low of 10 bucks a barrel right now trading just under 13 for a half a percent gain. richman fed sentiment sinks. consumer confidence the biggest monthly drop since 1973.

losing the confidence built up in this administration let's get to it with bob pisani, especially with the nasdaq lagging and big tech earnings on tap. robert >> fang is not helping us at all today. the s&p 500, we were about to break out early this morning 2920 we were up there. that's the highest level since march 6th believe it or not and drifted lower. we had comments of dr. fauci that we could be in for a bad fall 10:45 or so took a lot of steam out of things so you could see we're sitting essentially just off the lows for the day here the mega caps for the second day in a row not helping at all. all the five biggest stocks in the s&p 500, every single one of them down and happened yesterday, as well what's keeping the s&p up is bank stocks that are again outperforming today including the regionals an the industrial names that are generally on the upsid upside finally, many companies not only

suspending but laying off a quarter of the workforce and heard about furloughing in the last couple of weeks back to you. >> showing trip adviser shares up 2%. what does this tell us about what the market priced in in terms of layoffs and announcements to hear? >> it is a good sign for last two to three weeks i put up a list of companies furloughing and withdrawing the guidance and the list is bigger and bigger each day as we got into earnings season so obviously there's a lot of bad news priced in and i don't think we should let the fact that it's up 2% detract us from the grimness of the news that's going on these are real people losing the jobs, real companies cutting guidance, making it difficult to figure out what these companies are worth right now. >> yeah. no it is scary. thank you so much. one of my next guests said

he is not sure if it's a light at the end of the tunnel or an on coming train for the market let's bring in chris zack really and daryl cronk. all right, chris, i think it is you worried about if this is an on coming train. >> our point is we don't know what will happen a lot of optimism seen so far could be warranted based on the stimulus of the federal reserve as well as from the federal government however, we don't know if there's another shoe to drop later this year, if the virus does have a resurgence and just cautious making sure that we are playing it both ways you want to be taking risk an being optimistic about what may happen in the future in terms of the recovery however, you have to be careful of a prolonged recession to get a resurgence this year and we have to prepare for both cases. >> darrell, it is interesting to look at the cnbc fed survey and people expect another 3 trillion coming from the fed and congress and the economy not back to what

it was until mid-2022. does that mean that people are too pessimistic or that the stock market is too optimistic >> i think probably the latter right now, kelly we tend to think along with chris equities look overextended here we are watching very closely, i mean, if you use earnings numbers and you look through even 2020, the 2021 consensus right now for $169 on the s&p earnings which is certainly above the 164 prior peak in 2019 on average, it takes markets usually about three to four years to recoup the high earnings watermark and i think there's a lot of anticipation and possibilities of the reopening of the economy right now. one of the things that's been talked about quite a bit is a big piece of the retracement rally has come through a very narrow breadth we talk about the top three,

five, nine driving this. if you look at the bottom 250 to 300 names in the s&p 500, a lot of them have not participated well in this retracement rally so we'd like to see equities calm down here a little bit. if you look at the bond market telling you, what the commodity market is telling you and the fx marks, none particularly flashing great signals and signs right now. >> chris, as i heard i think kyle bass say this morning, you have the federal reserve to support every aspect of the economy except buying stocks outright an the market is rally even if they don't extend to equities yet, right? >> that is true. back to the tina trade there is no alternative. by easing financial concerns is providing a scenario where it's very hard to stay in cash. you still probably want to have bonds as a portfolio and ultimately risk assets are the place to be and when the fed floods with liquidity you get

the rallies that we have gotten. rallies only take you so far and where you can have trouble and where we agree with what's been said so far which is that you have to be cautious, not a time to take drastic action but looking for better companies with better balance sheets, making it through the recession, even if it's shorter like we all hope. >> not buying energy i see or materials or industrials or at least the heavily leveraged plays there. darrell, would you be looking in those aspects like the traditional investing wisdom goes, you want to buy what everybody's hating typically, right? >> that's true, and perhaps over the long term but right now in the midst of a recession we would still be underweight industrials en, energy, materials. we would be overweight technology, consumer discretionary, health care and some financials, as well

we think those are the better up quality fortress balance sheet that is when the economy turns back on can give you defensive names, maybe the exception is financials which have taken it hard and the reality is though when they're trading at half of tangible books, when you're getting the dividend yield, we think that's a nice value play here at today's levels. >> you mentioned that you are overweight technology with the fortress balance sheets. would anything in earnings this week change your mind? >> no, i don't think so. because again, i think you will probably see decent earnings numbers, the theme so far over the last day or two but if you look at the broad season, kelly, we came in right now down 24% year over year on q1 earnings, 9% below consensus heading into the season the tech companies will continue to lead. they have the best demand and sales growth or revenue growth in the topside we expect that trend to continue

so i think you have got to stay long technology here. >> just curious. again with the ad declines, talking about that for facebook and google later on and there's other reasons to like them thank you both appreciate it. we mentioned consumer confidence plunging today. as millions of mitt romneys are without jobs here's what happened the index posted the biggest one-month describe since 1973 and second biggest drop ever that said, future expectations perked up a bit. joirning is steve oddland, govern nor of the board. the future expectations thing which did pick up. what does that tell you about as bad as the damage is that people may be see, you know, the reopening chatter and think it is not that bad forever? >> well, the conference board's consumer confidence index is the present situation analysis and then what consumers are thinking about the next six months and

what we have seen is a huge, stunning drop in the present situation. we are in a bad period we know that you are right. the consumer expectations for the next six months is actually positive, it's gone up since last month's and this means that the consumers think that this is a short-term read in the next few months crisis and that we're going to lead the way out of it. the conference board expects gdp to declean by 5.8% in the first quarter but the projection is a minus 40% on an analyzed basis an enthese are really stunning numbers but the consumers think, hey, we are going to get out of this so the key to all of this is safely reopening the economy. >> it is interesting that you highlight that almost makes me wonder, you know, do i want to bet against the consumer in other words, are the consumers going to be right that this -- as bad as that minus 40 is, we are going to have a v-shaped rebound it's not back to 100% but we could be back to 80% by the end

of the year. or do you think that's mistaken, that none of us yet realize how bad this is, that it goes on for months and quarters an years longer and takes a while for the reality to set in? >> remember consumers depend heavily in this index on the current situation and whether they have lost their job an what the waenlgs are and that expect to go back to work but there are multiple scenarios including u-shaped scenario or double u-shaped scenario with an outbreak in the fall an that's what i most worry about. we have to get it going. you won't see a v-shaped recovery unless we open the economy. you can do teleconferences and social distancing guidelines. the key is some sort of safe harbor explanation or coverage for businesses that open so that they don't have massive lawsuits in this thing.

>> yes. >> and finally we need liquidity. we have gotten good liquidity going but needs to be extended longer through the end of the year here to make sure we get it going. if that all happens i think consumer confidence and spending will rebound by the holidays. >> we talk about the liquidity on the show, federal or congress but you mentioned the legalities and super interesting because this is going to come down in many ways to a big legal fight the journal today highlighting a lot of states trying to push more of the coverage to insurance companies to handle worker's comp claims but a frontline worker stay on the job obviously. make sure that companies stay open sounds like the president might be mulling this in terms of food makers to make sure that they can keep going without having -- without facing a big legal threat what more do you think should be done here? >> this is a big risk because how does any employer say it's okay to come back to work here and then if the trial torns waiting for one person to be

sick and then say that the company is liable for that there's got to be a federally led safe harbor guidelines to follow need masks voluntarily? if you follow the guidelines you cannot liable for this otherwise how does a ceo over s -- ever say it's okay to come back in the water? but the extension of these loans are really important, too. remember they have issued this for an eight-week period and going to extend beyond eight weeks. they should extend that period through the rest of the year, extend the forgivable period to not create a "w" where the eight weeks come back and then people lay off again. >> it's absolutely true but before you go, i mean, i just wonder about the political will, given getting it passed in the first place, that was the easiest time refilling it was a political fight. going back again, i don't know if there's going to be the will,

the way that people criticized the recipients of the ppp program and go back and say, yeah sure, 16 weeks, i don't see it. >> yeah. it's an issue, kelly, because remember, also, overlay that in an election year an you have both sides fighting here to try to use this slyly, you know, they don't want to be overtly about it but political overtone to this thing and one side not wanting to reward big business and calling it bailouts. these are employers, right big business, small business and we have to take care of them, got to avoid the bankruptcies that will happen unless this liquidity is extended. >> well said steve, thank you for jonning me. appreciate it very much. >> thank you. >> steve olland. coming up, a rare find on wall street, a sell rating on amazon and the analyst behind the bold call joins us next to explain why. could it be the first big advertising recession for

ooe?book and ggl who's the most exposed as they get set to report earnings

welcome back with breaking headlines out of washington involving the meat producers, kayla tausche here with the details. >> reporter: president trump said he was planning an executive order to maintain the u.s. food supply chain and reuters and bloomberg reporting that the order could come as

soon as today and in that the president to mandate that meat processing facilities remain open, the executive order to use the defense production act to make sure that they do so and will also outline guidelines for how some of the plants continue the productions safely coming after multiple outbreaks at facilities owned by tyson foods and smithfield foods and an executive at tyson warning that the food supply chain could be broken because of hundreds of employees being sick and plants forced to shutter but the white house is going to take matters into its own hands and invoke the defense production act to make sure that that supply chain is unbroken. >> kayla, this is scary stuff. an official says without the order the majority of plants, meat processing plants could have closed for a period of time reducing capacity to 80% that is terrifying stuff. >> reporter: it is terrifying, especially with restaurants closed, as well. with so many americans with

multiple options to put food on the table, now relying on that supply chain and more than ever on what is available at grocery stores and clearly the white house wants to make sure that that is uninterrupted. >> and like we were discussing, the executive order will provide liability protections. forcing them to stay open. thank you. the coronavirus has meanwhile been a bull market for amazon, the stock up 24% since americans started to shelter in place. my next guest downgraded the shares to the only sell rating on the street. in fact, he says if anything the outlook is still overly optimistic with me is scott mushkin scott, welcome why the down xwrad >> hi, kelly i think the downgrade is just kind of as you said, i mean, we see growth at amazon this year but a lot slower now with covid and the economic kind of unwind

that we are seeing, you look across the businesses, especially their profit making businesses like third party seller services, subscription services which is really the prime membership, aws and advertising, we think those all slow down and profits slow down. >> so, the interesting thing about amazon like we have said is bucked the trend. a lot of companies say, okay, profits are down, the stock pricing that in. with amazon it is different. is there a disconnect between what is priced in the stock today and what you think is actually possible? and do you think earnings this week could be a wake-up moment in that sense? >> i think earnings are pretty good what will the outlook look like? what will the company say? expenses going through the roof, adding a lot of employees but gets back to the prior interview and what's the consumer economy look like as we get into the fall i guess our view is that it's -- the sailing ahead could be

pretty rough we have a presidential election, could have covid reemerging. the fed done unprecedented things and fiscal stimulus so we think that the outlook into the back half of the year is likely to be challenging. talking about unemployment rate over 20%, economic contraction mabel in the second quarter as much as annually at a 40% rate so i guess we're just in the mind and our -- researcher and also consulting, we're talking to consulting companies and they're all really worried so i think our outlook is probably less bullish than a lot of people out there. amazon is a big company, got tentacles in everything. >> right. >> and so, our thought process, i mean, something that people probably don't know, amazon with a growing food service business and of course all the restaurants are closed amazon business prime is a big part of their business for their one piece. so this company's likely to

slow 30% when we downgraded it. it was one of our top picks. we just don't think it can avoid what's going on in the broader macro. >> sure. if i was going to ask you if reopening is a headwind for amazon they don't get that benefit of people leaving the houses. now left with lower demand, maybe in a pinch there but you are saying -- i wonder if you're saying in a pimpnch either way >> yeah. such a perceptive question in some ways, yes. that is what we're saying. part of the broader economy, they'll suffer, but if we reopen much faster than we think, not that amazon won't do well, but certainly other company that is will likely see a sharper rebound and even though the stock probably go up with the broader market, probably going up a lot less as people rotate

into name that is will benefit more some of the rest rapts and discretionary retailers. >> a final question to relate to this but i guess if amazon's not working as a great trade i wonder about all of fang and hearing from them this week and they have seen advertising reclines is it possible this is an end of an era for fang in general people say they're the only ones to win in this economy and i wopd wonder if you see it as the opposite >> all those companies, i won't try to call the end of fang. maybe above my pay grade but i would say generally speaking is looking at the unprecedented environment that we are in, it's like nothing we have ever seen and the potential outcomes are very wide. all these companies participate in the broader u.s. economy in a major way. and so, it's hard to imagine that you're going to have 20%

unemployment yet everything's going to be okay if somebody's -- advertising is a perfect example of one of the things with amazon, advertising is slowing down. and, you know, facebook had some comments on that advertising's one of the first things the companies have cut. cap-x is cut all over the place. goes to google big in that area. i would say that the companies do participate in the broader u.s. economy even though they may be relative outperformers, their businesses are likely to slow. >> it's a good point scott, thank you so much again, scott mushkin, only within on the street with a sell on amazon right now and thank you for explaining why and your views on the economy right now i really appreciate it thank you, sir. >> thanks for having me, kelly. >> ceo of r5 capital. coming up, states have already received money from the federal government for coronavirus expenses but many say it's not enough. what option dos they have now

and what's at stake? with part of the economy beginning to reopen, how are restaurants preparing and what do they anticipate demand will be we'll ask the ceo of waffle house when's getting ready to open their doors watch or listen to us live on the go on the cnbc app at&t is committed to keeping you connected. so you can keep your patients cared for. your customers served. your students inspired. and your employees closer than ever. our network is resilient. our people are strong. our job is to keep your business connected . it's what we've always done. it's what we'll always do.

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welcome back the latest in the coronavirus pandemic, over to sue herera for the headlines this hour. sue? >> thank you, kelly. good afternoon, everyone italy has confirmed more than 200,000 cases of the coronavirus. becoming the third country to do so and the daily count of both new infections and deaths rose from the day before. and italy started to ease virus restrictions a few days ago. protesters gathered on the steps of north carolina's capitol for the third week in a row today. opposing that state's extension of its stay-at-home order until may 8th. schools are closed for the rest of the academic year. and here in our area, the u.s. air force's thunderbirds

and the navy's blue angels honoring health care workers with flyovers today. the jets began in newark, new jersey, before heading to new york city and they will continue on to trenton and then end in philadelphia this afternoon. as always, for more on the coronavirus coverage, head to cnbc.com kelly, i was out in front of the building i saw them down the hudson it was so awe-inspiring. i know it was very much appreciated as you could see from the health care workers. >> every video i saw the people trying to take, frankly, doesn't do it justice. >> i know. we tried we had nbc crews shoot that for us in new york city and got lucky. >> yes, we did thank you for sharing it thank you, sue. the pandemic taken a toll on state coffers. the administration drawing a lean in the sand of what states can use the aid for. here's what treasury secretary mnuchin told cnbc earlier today.

>> there was a chunk of money, it is now all been sent out, to the states and the cities to cover them for coronavirus expenses and again, we've been clear that to the extent people have to use police to enforce coronavirus issues, public safety, things like that, that they could allocate it to the coronavirus issues but not lost revenues. >> lost revenue of the pandemic is going to hit a place particularly hard, where we had the flyover, new york city where contessa brewer is and joins me live with the latest. >> reporter: kelly, the financial outlook is very dim for the bright lights of this big city there is a real cash crunch coming shortfalls of $10 billion over 2 years when new yorkers need help the city's budget office predicts half a million lost jobs over the next year and the governor was talking today about how the state reopens,

construction and manufacturing not what he calls an attractive nuisance business. >> attractive nuisance in this context, you open up a facility or an attraction that could bring people from outside the region to you. you have all this pent-up demand in the tri-state region. make sure you don't open up something that's going to bring hundreds of people from the outside in >> reporter: but come on tourism is a major driver. last year 65 million visitors came here. restaurants, museums, broadway, 5th avenue shopping, all shut down and the city supported tourism bureau will furlough half the workers starting in may. there's a very dim future financially speaking for this city unless there's a big turnaround or aid. >> nancy pelosi saying she hopes to have funding for the states, the budget needs in the next round of the relief bill, a huge

fight. for now, thanks. for us it means no legoland for my son this year. there's a slash of ad spending an not alone. how much of an ad recession are wi we in for? future of education is up in the air. the president of northwestern university tells what learning could crock like an the backlash some get as they take federal funds. ♪ ♪

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welcome back to "the exchange." the markets lost the gains nasdaq's now negative. dom chu with the big movers. dom? >> markets have been all over the board. positive and negative. the dow, the s&p 500 and nasdaq

mixed right now. at the highs of the day, the dow up 378 at the low down roughly 120. the best performing sectors, economically sensitive, industrials, financials, energy. and then check out the stocks to watch today with this trio google parent alphabet, ford motor and starbucks. traders will be listening for any guidance of alphabet ford said the pandemic will hurt results substantially. for starbucks, any updates on what china operations look like as economic restrictions ease there and what the u.s. could look like for reopenings there, as well. back over to you. >> thank you as the pandemic shutdown continues, more and more companies canceling or suspended the dividends to preserve cash 80-plus companies done so this year making it the largest

number and fastest paced in nearly two decades on top of that, additional 135 companies have reduced the payouts to shareholders and now that we are on pace for the worst year since 2009, according to s&p global market intelligence and standouts committed to keeping the dividend u.p.s. will and ibm increasing the quarterly dividend u.p.s. down and ibm up on the announcements. the coronavirus outbreak has created a crisis on america's college campuses at what is supposed to be one of the most exciting times of the year and clear that some schools won't survive. scott cohn has the story scott? >> reporter: hi, kelly we are at the university of california-santa cruz. home of the banana slugs and around this time of year it would be packed with students and also anticipating students coming in in the fall and still face a may 1st decision deadline in california to get the

deposits in but of course everything now is up in the air and virtual here since the middle of march. uc system president janet napolitano said the cost in march more than half a billion dollars and the worst may be yet to come. the american council on education projects nationwide enrollment in the fall down 15% and that includes 25% decline in international students for a revenue loss conservatively of $23 billion. >> a number of institutions that were already not on the greatest financial health or foundation have to explore options that were never on the table before, which is mergers, acquisitions, spinning off certain programs or in some institutions absolutely you just cannot survive. >> reporter: at deloitte college in wisconsin, trying to be

flexible with the idea of opening this fall but being able to switch quickly between classroom learning an online learning >> the world's upside down no predictive model to understand what might happen in the fall and in fact that question two weeks ago looks different than the response right now. right now to three weeks from now may look different again. >> reporter: beloit forced to freeze tuition and pushed back the decision date and schools to june 1st but even more uncertainty in a very uncertain year to say the least. kelly? >> scott, thank you. great reporting. for more on the challenges facing academia, joined by martin shapiro, president of northwestern university. you have a lot of northwestern grads around here. thank you for joining me. >> thank you, kelly. it is an honor to be here. >> you know, one of the main things i wonder about is the parents talking about whether to send their kid back to campus in

the fall or maybe take a gap year what happens if people decide to do that writ large that would be terrible for your finances, right? >> it would. we just heard from that excellent report about how many clnlgs an universities, most of us are hemorrhaging revenues and if the students don't come back in person in the fall it is much, much worse i hear from a lot of parents, we just notified the student that is got into northwestern to start in the fall that final deposits are due tomorrow so a lot of people thinking should they gap if we're going to be line in the fall as we are now along with everyone else maybe they should gap and then come back when they can get the full experience. >> so brown i believe is trying to have students back on campus in the fall. your big ten colleague purdue trying and spoke about that yesterday with mitch daniels harvard said it will explore online classes in the fall and

maybe not mind because it's harvard. will you have kids on the campus in the fall and what are the considerations in terms of safety for doing so? >> kelly, that's the million-dollar question right there. first of all, i'm not so sure as many people gap. it might not have a lot of gap opportunities so we always have, you know, small numbers of student who is want to work in a medical clinic in africa or something else environmental work in amazon, et cetera i don't know how many of those will be open so if the gap experience is being home watching re-runs of "friends" i'm not so sure the parents and the kids gain very much from that what we're thinking about at northwestern is pretty much the same as everyone else. while it is tempting to think about the revenue aspects, you know, they're really secondary anybody, especially those schools who own their own hospitals, we don't, many parent

institutions do and completely hemorrhaging without so-called elective surgeries and so many budget problems out there. maybe no students back in the fall makes it worse but as you guess the considerations are can you test them, isolate them, do quarantined, spread them out and all that and at northwestern we are just like brown and just like purdue and i did watch that excellent interview with my colleague mitch daniels from purdue, and, you know, we all want to open up and only going to do it if it's safe and not just safe, of course, for as chris paxton president of brown said yesterday in "the new york times" op-ed, it is not just safe for the students but safe for the faculty and staff. >> absolutely. >> much older. >> exactly. >> what's going to happen to them so yeah. we have -- let me just tell you the inside baseball here, kelly. we have some -- we have some dorms that are not being used

right now because we use them as swing space. you know renovating a dorm we open it up and we could figure to put people in there and spread them out. get rid of doubles there's hotels in the city of evanston basically shut down and we could rent, exploring renting a couple floors in very close by hotels and if we could do it safely, you want to do it but i don't want it on my conscience if anybody gets sick or god forbid dies because i'm worried about the budget or bringing people back before it's safe i won't do it. >> that's fascinating to look to hotels nearby and maybe other colleges do the same i want to ask about the financial piece of this because it's come up a lot when colleges like yours, you said hemorrhaging cash, $8 million that you could have from the c.a.r.e.s act. people say you have a $11 million endowment. how do you ever have a cash crunch how would you explain to people why that endowment doesn't make

more cash available for crises like these >> it will i would guess that the avail rate, the percentage rate of the endowment, take the spend to support the current generation of students back and staff which is supposed to be 5.0%, i think almost everybody 6% or 7%. for us an extra percentage point is a million dollars north of $10 billion we're not going to accept the government money a lot of peers are not that's no criticism for those that schools that do but a lot of the budget, a lot of the endowment is restricted so the idea of somehow we could use that to cover the declines and net tuition revenues or room and board oberto the rebate for the current spring quarter closing the dorms to somehow increase the avail rate on restricted money, restricted for cancer

research, for phd students, athletics. i know you were an athlete. >> yeah. our girl's team lacrosse team was nothing like yours which in case people aren't familiar - >> i was at williams >> well yeah little different scale. >> that's really inside baseball or inside lacrosse but you know -- one thing about your the wnl, very few schools -- everyone's worried about the trillion and a half dollars in student loan 19 schools left that don't package loans at all in financial aid and your wnl is one of them and northwestern so i mean, my real worry is what are they doing to do, maintain their commitment, the need-based financial aid? because that's the last thing you change. >> yeah, no. that goes right back to the heart of who are the winners and losers from this student that is need aid is the

last population to arm it's been fascinating. thank you for your time today. >> thank you, kelly. >> good luck and keep us posted on the decisions he is the president of northwestern university. still ahead, as companies scale back on advertising budgets due to the uncertainty, the on lead ad giants won't be spared thaex next. georgia is one of the first states to allow restaurants to reopen, the ceo of waffle house about what that means for his business and what the future of dining looks like when "the exchange" comes right back you're turning 65 soon? yep. and you're retiring at 67? that's the plan! it's also a great time to learn about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. here's why...medicare part b doesn't pay for everything. this part is up to you. a medicare supplement plan helps pay for some of what medicare doesn't. call unitedhealthcare insurance company today

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welcome back google parent alphabet set to report earnings after the bell today followed by facebook tomorrow investors will be watching the ad revenue numbers for a sense of the impact of coronavirus on the business for more on how hard they could be hit, i'm joined by sarah fisher of axiom and julia boorstin julia, got the great numbers in

here barry diller earlier saying market spend by expedia to drop 80% or more and these companies aren't immune. >> if you look at the travel sector and how it is so decimated by coronavirus, really shut down, travel companies are among the biggest advertisers, particularly on places like google and facebook. travel was one of the biggest sectors in terms of advertising on google last year, responsible for $11 billion in total spending and now search spending on google expected to be down by 50% if not much more we heard from barry diller that expedia which he is the executive chairman of is going to be dramatically declining the spending by billions of dollars down to $1 billion from $5 billion and google feeling that and seeing facebook also when it reports tomorrow will see just how much it's exposed to that travel and then the retail sector, as well. >> yeah. you know, it is interesting, sarah, we talk so much about the

big tech companies and, you know, the trillions in dollars of market cap, they get the ad business from small businesses so you look here at how the price of facebook ads is declining, a lot of that, sara, small and local business advertising, right >> that's exactly right. when you think about how they buy the ads, they're self serve, they have no contracts with google or facebook and they're going to stop spending, they're not obligated to maintain a contract with television the other thing to keep in mind is in the beginning of this, q-1 earnings of march small businesses not able to update the creative, not able to forecast what products were coming don the pipeline so there was no chance that marketing in march. looking ahead i wouldn't expect it so much better but at least some of the small businesses i think about the direct to consumer upstarts like workout companies that can workout from home, at least these companies have a chance now to transition

some of their marketing for the second quarter. >> great point julia, i wonder how much is priced in. you know, if it matters. no one's questioning the dominance or saying vultd of coronavirus they lose market share but more about i guess testing their resilience when ad revenue dries up somewhat. >> absolutely. kelly, together google an facebook is 60% of all digital ad dollars and very possible they will grow their market share through coronavirus because what they do is so measu measurable there's certain categories where ad spending is ground to a halt. travel, of course, being foremost and restaurants, not spending only advertising right now and then the other category is just in terms of direct response versus brand advertising, brand advertising fallen off dramatically. facebook with direct response advertising a lot of those d to c brands, click here to watch this video, download that, they

do much better and much more resilient than the brand advertising and really see how it shakes out but interesting to look at advertising for the health of consumer spending environment. >> sara, before we go, anything to direct people's attention to in the reports >> yeah. to echo jaulia's point, analysts expect them to come out stronger on the other end because their balance sheets so healthy before this some of the smaller upstarts that take on advertising i think of companies like twitter and snapchat that i think more exposed here just because their businesses aren't as big. >> great point, especially with the self-service portal. remind me of how easy to turn off streaming devices. sara, thank you. julia, before you go, i want to draw attention to the movie theater stocks right now which appear to be moving higher are we seeing more reopening

announcements? >> well, yes so the movie theater chain companies are soaring between yesterday and today. major gains, responding to the news that many states are preparing to reopen their economies. there won't be any major movies released until mid-july. >> thanks drawing our attention to it. coming up, the waffle house indicator. more than 2,000 low kacatioloca. they are about to reopen the ceo is on deck with us with the preps and what ding llinwi look like starting this weekend on the other side of this break.

welcome back according to georgia's reopening time line, restaurants are now allowed to resume dine in service in the state time to get ready for the coronavirus version of the waffle house indicator joining me is the ceo of waffle house. welcome. >> thanks. it's a pleasure to be with you >> i have enjoyed waffle house many, many times over the years. high school, prom night. we won't go into it. what's it going to look like in waffle house in georgia and other places where you can reopen in. >> happier times thinking of prom night for sure. we're really shot reopeninnot r. we're adding some limited

dining not a lot has changed because customers over the last six week vs been coming to our restaurants. they have been getting out of their cars and walking into restaurants and placing orders waiting patiently for their food at a distance from one oots and a distance from us then they get their food and they leave the difference for us now is and we're excited for this opportunity is that we now can add the ability for them to just sit at a distance and eat as opposed to eat in their laps in their car or on the tailgate of a truck. we have seen a will the of picnics in our parking lots lately that's really what we're doing it's a very slow addition of some additional capacity inside the restaurant >> it's a slow change. i think it's still a significant one. for people to sit in restaurant and maybe have table service as opposed to taking the food with them tell me a bout how that affects staffing

it was interesting to hear you say you're not opening anymore location, you're just adding that dining aspect to the ones already open >> we're taking this very carefully. we're following all the cdc guidelines we're doing the things you would expect the restaurant to do. fortunately, restaurant vs been kind of raised to live to standards for safety for our customers. where we have closed restaurants it's because the economies in those particular markets have not responded with any kind of demand we're looking at the restaurants we have open to help gauge when and where it would be appropriate to add more restaurants back online, if you will as you mentioned in the intro we're very much driven by having our restaurants open and available for people 24 hours day. we're just not there yet >> that's what i was going to say. our restaurants in many cases are famous for not having keys because they literally never

close even in national disasters. this is a national natural disaster when do you expect to be back up at full service, 24/7, 365 how many years off is that >> a lot depends on what's happening. obviously, if there was a vaccine or some sort of cure for this virus, i think it could happen quick but it doesn't seem to be heading in that direction. i think the role we're trying the play right now is to help the country and help ourselves figure out how to deal with the virus being with us for some time and how to get our businesses prepared to provide jobs and opportunities for our people we've always been there for the customers when they needed it and now we're trying to be there for when our employees need us the most i think it will be some time start welcoming more and more customers back the customers are really

behaving i've spent most of my time in the restaurants and everybody is really getting it. they're paying attention to the guidelines and doing what they should do. i know that's not 100% but most people are >> can you give me -- what percentage of your restaurants have to be full to be profitable five second answer >> half. >> that's about what we heard elsewhere. i know putting you on the spot like that is tough gives us a sense of when profits might be back. thank you for everybody you're doing. >> thank you very much come eat with us again >> i got to get back down to virginia our breaking news coverage continues with power lunch after the break. next hour we'll go inside the largest u.s. mall oeperator and how they plan to open this friday the chairman and ceo of merck joins us they cut their 2024 forecast as

a result of coronavirus. we'll talk about the fight against covid-19 stay witus h

welcome everybody. we're glad you're with us. i'm tyler mathison glad you could join us stocks giving up early gains the dow was up about 400 points at one point early in the session. if it ends higher today, it would be the fifth day in a row in the green longest winning streak since january. this despite