want more space for a home office, a home gym and the kids at home, right >> exactly i mean i think a lot of housing that don't have home offices are going b to be at a disadvantage or that don't have a room that you can turn into one. thanks so much as always, a beautiful suburban location thanks for watching. kelly, great to be with you. >> the dining room table that's the office. >> all right yeah that's the new office. the closing bell starts right now. >> thank you very much welcome to the closing bell. stocks struggle iing to stay ine green with about an hour left of trade. let's have a look at what's driving the action consumerer confidence plunged as coronavirus cases surpassed one million. and tech is selling off ahead of the earnings reports this week we've got amazon, microsoft, both trading lower by about 2% and we've got google earnings

which will hit in b about an hour's time. the s&p up by just three basis points >> coming up on today's show, former national economic council dr director, gary kohn, will join us about reopening the the economy. the debate over funding for states and the small business ppp funding. plus, a flood of big name earnings set to hit this afternoon including as you mentioned, alphabet. starbucks, ford, am we'll also speak with the ceo after his company reports earnings, what consumers are doing and how much they're snacking around the world. let's focus on one hour of trade. mike is tracking the market action in what's shaped up for a volatile day meg has quarterly results from big pharma names mike, start us off with the brorder market of what you seeing >> some pretty strong opposing

currents holding the index in a steady mode. look at the s&p 500. this goes back a couple o years because i want to point out the areas that we're encountering with this rally. here we are around 2880. that takes us back to about march 10th the day before the nba canceled the season and really it became a real reality that we were going to be in shutdown mode also before the federal reserve cut rates the zero so that was the panic right there and now we've kind of lifted ourselves out of the panic. we got to right wbefore that mot when you had this liquidation phase in the markets but it also takes us back if i carry ied tht back, we go to january of 2018, so there's a lot of stuff coming along in this area including the moving average around 3,000. that's this zone we're in right now, where we're going to have hash through some small stocks and big ones back off a little bit. this is a comparison of very large stocks and the average

stocks so the xlg, that's for extra large. the russell top 50 the 50 biggest stocks has been a consistent outperformer. today though, it is lag iging a you can see, wait, this is over the entire span. today, the xlg is lagging by two percentage points. the equal weighted russell 2000, so you've had money flowing from the giants into the average stock into smaller names that's been two days of this we'll see if it's a trend or just a kind of reflex move but that's the story of the action today >> to what extent are earnings driving the the action you're seeing, especially the shift into other stocks from the megacap tech names >> i'm seeing earnings to some degree being the occasion for reassessment for big pharma or the tech names.

that stock has been bouncing off very depressed levels. to me it's a moment to decide whether the trend has gone too far in terms of where the stocks aregiving us a lot. >> industrial stocks on the move following earnings result frs the likes of 3m and caterpillar. hey, seema >> that's right. both industrial giants getting hit hard by the pandemic caterpillar seeing a sharp decline in demand for construction equipment while 3m reference d dental care and office supplies but the commentary on china from both companies was encouraging. caterpillar saying all its facilities are operating in china with suppliers doing quote, much better 3m seeing a rebound in multiple markets. automotive and electronics and others given the shortage of masks and

pressure from the trump administration, 3m continues to ramp up protection of the n95 respirators. more employees remain at work and factories come back online research says in deep recessions like this, having any business that provides tail wind is a key differentiator and those two stocks are higher today. back to you. >> thanks so much for that sara, clearly, industrials, the second best performing is sector today. energy, the best performer and that's part of the rotation that we've seen in and that mike was alluding to. i guess the interesting thing is on the energy side of things, energy managing to outperform when oil was crashing and still outperforming a little on a day like today where oil give or take is flat >> good point. still off low levels by far worse performing sector of the year. potentially some bargain hunting in that group on both types of days we're also keeping a close eye

on the big pharma stocks today following results earlier in pfizer, merck and novartis and some progress all these companies are making in fight ing the virus. meg has the details. meg. >> hey, r sara we did get to hear a lot about these companies, all of whom are working on either treatments or vaccines for covid-19. in terms of their earnings today, all the companies beating in the first quarter only merck though lowering its guidance for 2020 a wig big reason for that is that two third of the sales in its pharma business are from physician administered drugs and as people are not going to the doctor's offices for covid-19, they say that's going to impact sales by $2 billion this year. we also talked with ken frazier onthe efforts in vaccine and therapeutic development. they have a lot of respect in this space because they just got an ebola vaccine across the finish line. we asked frazier about whether the 12 to 18 month timelines for vaccines are realistic here's what he said. >> i wouldn't say it's too optimistic what i would say is that merck

has a lot of experience in getting vaccines across the finish line. the timeline we're talking about is in fact shorter than any other timeline we've seen with a successful vaccine at the same time, i think everyone recognizes the urgency of this situation and we have to look at ways beyond sort of the customary ways of doing this, but there is a certain amount of time that's inherent for example in doing clinical studies to ensure that a vaccine that you would use in millions if not billions of people, is truly safe and effective >> the world record for vaccine development is four years, guys, so 18 months would be set itinga real record. >> meg, one of the questions we' been asking on this who is to what extent does this actually in term of the outlook of these companies. in other words, they're doing such a great public service, working on these vaccines and treatments and testing and the

question is are investors just bidding them up because of the high low effect or is there going to be a direct financial impact for the company that wins this >> we think stocks react so much when we get news on treatments and vaccines, but i haven't seen real good accounting of anybody expegting to see the revenue from these things just yet what you see is analysts saying this is not going to be b a big driver for the companies either because they're going to make them available at cost or for other republicasons. so that's to be determined we are starting to see the revenue impacts in the testing companies but that's a totally different area so i think stay tuned, but it will be a r very important question down the line >> to the point on testing, what are the key headlines from the meeting last night in the white house which of course was attended by most of the key corporate players as it relates to testing in the u.s.

>> so there's that $25 billion in funding that's going into increasing testing and they're trying to ramp it up quite a bit in the united states you are starting to see the impacts of that as you look state by state new york has increased testing significantly. in arizona where we talked with somebody last night, they are doing a testing blitz to try to test 20 to 30,000 people over the upcomeing weekend and the cd is loosening guidelines so more people can be tested so this is really starting to ramp up in terms of testing for acute infection and then we're also seeing antibody testing being made more available everywhere, too, so this is starting to change >> thanks so much for that after the break, former national economic council director gary cohn will join us to discuss the path to reopening the economy and who should be blamed for issues surrounding the small business funding program a discussion around oil prices given he was a former commodities trader before being president and coo of goldman sachs. don't go anywhere. 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. we hope you find our digital solutions helpfulclear, to bank safely from home. deposit a check with your phone or tablet. check balances, pay bills, transfer money and more. send money to people you know and trust with zelle. stay safe. stay home. together, we'll get through this.

pnc bank

f the latest round of ppp funding for small businesses made available yesterday this

after round one faced krit czyz from those who claimed on certain types of questions steve mnuchin was on cnbc earlier today and addressed some of these issues. >> the banks really middleman here and the banks were not required to do the diligence i really fault the borrowers who made these certifications. there were some who put them on their website and prioritized their customers. we told them that was wrong, they took it down. i want to be very clear. the borrowers who have criminal liability if they made this certification and it's not true. >> joining us now, gary cohn thanks for joining us. >> thanks for having me. great to be here >> so let's kick off on this ppp fram if we may

interesting to see him take some of the blame away from banks but still putting a lot on certain companies that have taken these loans but perhaps didn't need the money as much as some other smaller companies out there. should he be shifting some of the blame on himself and congress for creating a program that had huge demand and not enough supply. that's really the core issue, isn't it >> there's a couple of issues here number one, remember the government tried to act as quickly as they could to get and i think they realized replacement was going to be one of the biggest keys in this environment. we didn't want to see literally 50 or 60 million people go on unemployment so a way the keep them off was to create wage ppp was b meant to create wage and employment but it was meant for those companies that had no other source of -- and ppp was

their only form of employment. i think maybe they could have anticipateded some of these situations this is a moral decision though. companies had to and i believe they had to make a moral decision to ask for this money and i got to tell you, i'm quite surprised at hearing some of the people that asked for this money. >> the l.a. lakers shake shack, which to their credit, gave it back, but now there's this blame game and there's also a question about whether the small businesses that need to keep people on payrolls have got p it why wouldn't the government just look at people's payroll data? it feels like the numbers they're talking about were pretty random when it comes to the actual scope of the problem.

the way you filled out the form, took your payroll, put it in a box. multiplied it times two and a half and that was the size i don't have of your loan. the government did look at the payroll. that's how they sized the loan but payroll doesn't tell the whole story. a lot of these companies decided to subdivide into subsidiaries or they decided to potentially ask for loans from operating companies when they had a lot of different outbreaks. remember, i came on the air long before the program was finalize and said look, if we want to get this right, why don't we just give the money to the payroll processor. let the payroll processors, they know how many companies need the money. they know how many employees they have. treasury, send the money to the payroll processors i think that would have been a clear way to do that

>> for the u.s. to get the people into the right place. >> it was designed to stop 50 to 60 million people. we're hitting 20, 30 million has the program failed and will the economic impact be really much bigger than anyone would have hoped despite this level of stimulus >> we know what's going on here. if you're in a small bakery or small restaurant or barbershop or beauty shop, that literally shut down the business and terminated you day one they did not know the loans were coming you instantly went and applied for unemployment benefits. once they get their ppp loan, they then dpo and hire you back. so if this program was going to

work we should see a spike in unemployment claims but we should see the numbers start to subside. one of the things i'm hearing and i think it's forshadowed by debate on the senate floor is that people are getting more from the government in unemployment benefits than they were getting in their wages from their original company and their company goes to hire them back, will they come off unemployment or rather stay on unemployment than be hired back that's a really interesting discussion we're going to have to have. >> no, we've heard that a bunch. >> i want to move on to the next big debate you've argued in favor of this i don't think you're a fan of the bankruptcy route as mitch mcconnell had floated.

what happen ifs states don't get the help from federal government they need? >> look, we've thrown states clearly in the middle of this situation. they're no different than small businesses in some respect here. when a economy is asked to shut down and literally instantaneously has to shut down and we tell people to stop working, the first thing they do is they collect unemployment as we've been talk iing about. the state administered unemployment the state starts filing those claims processing those claims. and they start giving out the money. which is what states are obligated to do. exactly wh lly they're doing then in this covid crisis, states are also responsible for a lot of medical bills of their residents so we have states that are being hit with huge unemployment claims, huge medical claims and at the same time, we're telling people to please stay home, don't spend money, so therefore there will

be no tax revenue and oh, on top of that, we're going to defer the federal tax filing day which for most states, will defer your income tax for your state filing to a day in the future so you're going to actually have no revenue coming through the tat states are caught in a horrible position. they're paying the benefits they should pay and we shouldn't allow citizens to get caught in the middle and we shouldn't allow states to have to -- that said, we can't take states. they were in a horrible or precarious financial position prior to the crisis b and put them into a good, sound position we have to repay states for the cost of the crisis >> what would you say to rick scott who says we managed our budget better than states like illinois or new york and some of the other blue states so we're not going to bailout their pensions and the fact their

budgets have been mismanaged >> i'm not sure how much of a blue red issue that's going to be and i don't want to get in the politics of it i think we're going to find there's a lot of states, whether they're blue, red or purple. they're going to have real state budget problems and when the accounting getting done, they're going to need money. remember, not all-states have been hit at the same time. the covid illness is moving through the country at a different speed. different places are get iting t at different times different cities and states are going to open at different times so we don't have an accurate accounting right now state by state city by city what they're going to look like. so i wouldn't be pointing any fingers right now. >> i wanted to see if you could put one of your old hats on. one of your many old hats. you were originally an options trader before you became coo of goldman, you were head of commodities. so i guess your take on what

we've seen in the markets in the last couple of weeks and how much of it has been fundamentals and how much of it has been the financial industry trying to speculate and getting it all wrong and therefore making a much bigger story out of what was already a big issue with oil prices under pressure. >> the one thing that people need to understand about the commodities market and it's unique to the commodities market is a, a terminal market and b, the market is down meaning that for every fire there's a seller and for every seller, there's a buyer. and all of those contracts need to neutralize out at the end of the contract period or the seller has to deliver to the buyer or the buyer has to take delivery you get into that telescoping window of fewer and furor days until you reach that delivery point. on who's really long the option to make or take delivery really narrowed dramatically and i think we really saw that in the

oil contract therefore, if you were short and you had oil that you needed to deliver because you had no place else to take it, you were determine d to deliver to the exchange if you were the long and you thought you were going to be able to renew your contract, you would have to find someone to step into your shoes to find somebody to take delivery of the contract i think the market worked really well and it once again showed us the value of the terminal market in a market where ultimately every buyer has a seller and every sell er has a buyer on th other side >> what would you expect gary your old shop and others like it not necessarily asking you to specifically comment on goldman sachs, so have mato have made a money trading oil contracts or lost a lot of money? do you think this was an easy way to kind of gain the uninformed retail oil trader >> so i would predict that no

big financial shock was playing in the front month of oil in the last three days of the contract. they're smart enough to know that when you get into the last three days of a delivery month, anything can happen. the volatility we saw on the may contract, no financial play really was playing those were physical or uninformed players do i think overall the industry or financial sector may be making money i don't know because the ability to speculate has been taken away from them. wu look, we've seen such massive demand to construction in the united states and around the world by telling people to stay at home. do not drive don't fly. don't do any of the things that usually consume oil and by the way, we're in a shoulder month which is between seasons where we're not in the heating season and we're not in an air-conditioning season but we also have low demand any ways. we just have a situation where

there's very, very low demand. compound that with a situation where russia and saudi arabia sort of flood the market with supply and you saw price action that actually reflected the physical market. that's what you want from your futures market >> what about the 30% or so rally we've seen in stocks over the last month it's taken so many by surprise what do you think the market has taken on >> i think the market's signalling a couple of things. number one, don't ever estimate the federal reserve. and how much money and liquidity the federal reserve has put into the market and has told you they are willing to put into the market and remember the federal reserve is not alone every other central bank around the world is doing the same thing the federal reserve is doing. so when you talk about the gdp that had been lost in the last 45 or 60 days and the gdp that might be lost the next 30 days,

the federal reserve has provided enough liquidity and stimulus to make up for a lot of that lost gdp in the market. and number two, there are still an enormous amount of companies doing well and there are many products that we are going to need look at some of the earnings of companies we've had in the last couple of days they're showing you their products are still moving. people are still consuming their goods and services and buying what they need and so the entire economy is not shut down. we weathered the worst of this i'm fairly optimistic that we're going to get into a more normalized economy all beit slower and see more normalized patterns come back. we'll get wak to more elective surgeries. and the hip replacement companies come back. we've cut off those surgeries so of course their surgeries aren't as high as they used to be but they need to be done

that elective surgery is going to come back a lot of the stores are going to need to come back and consumers are in a position if they're getting unemployment benefits and they're getting the ppp, they're going to be in a financial position that they're going to be able to reengage in the economy. look, i'm very imp sympathetic for the people getting hurt, all the people who have lost their jobs i know an enormous amount of physical stress in the system, but this economy is resilient and it will bounce back and i think the stock market that with the fed is sort of tell lg you thing you that >> quick last question about the banks which you know well. kbw banks index down 35% year to date does that make sense to you? is this an opportunity for the investment banks like goldman? >> it's a tough environment. a tough environment for the clients. the banks are a function of the clients. they're there to serve clients

yes, they're going to need the raise debt so the debt capital markets will be quite busy i don't know what opportunities there will be in the equity capital markets. i don't know what opportunities there will be in the m and a cycle. there may be some m and a activity if you think of the business, the margins you're going to make are going to be tough and look, they're going to be a lot of low loss verves taken. remember the lending business is not a risk free business and we get reminded of that every cycle. so the large lending banks are going to have to take huge losses in the cycle. hopefully, they'll adequately reserve and if the economy turns around, they'll be able to add back some of the reserves and they'll outperform, but banks need to be conservative. >> thanks so much for joining us >> we've got about 32 minutes

left dow's up about 83 points in the middle of a range it's been in all day. dipped negative a few points as you can see. s&p 500 also sort of unchanged the nasdaq's underperforming today though technology not having a best day though it has been a big winner. after the break, checking in on the consumer shares of pepsico higher what the company'sfo c told us about change iing to the busine during the anyone of coronavirus. next

welcome back pepsico out with earnings this morning. the company beating estimates organic sales up 8%. and it also maintained its buyback and full year forecast because of the uncertainty i asked the cfo and vice chair who changes he's seeing in the business right now listen >> the difference between the two businesses, beverages and

food bevera beverage, we saw a clear surge in demand but part of that seem ed to be more household stocking not sure if there was a lot of consumption. it was people really hunkering down because they knew they'd be sheltering in place. for the snack food business, we saw a real change in consumption but two big factors that seem to be coming into play now, number one is in breakfast. lots of people eating breakfast. and then there's a lot of grazing snacking happening during the day >> a lot of grazing in my house, too. by the way, they closed their energy for rock star i asked you are people really drinking energy drinks right now if they're not going to work and the gym? they said it's a soft erakat cat especially for a lot of people who buy them at the convenience stores, but they have long-term faith in the category. by the way, pepsi less exposed

than coca-cola than its rival to restaurants and movie theatres and convenience stores didn't have as much of an effect as it did on coca-cola >> r more insight on the snacking world as well >> all about the snacks. >> all about the snacks and the other companies reporting earnings as well which include alpha a bet, starbucks coming later as well and we'll bring you those numbers as soon as they hit and doug will join us, too. 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.

zblnchs welcome back 25 minutes left of trading the s&p 500 is little changed, but you see a lot of different sectors going in different directions for instance, energy is the top performer today. up 2.4%. industrials have a nice 2% rally, so are materials. as far as the three sectors in red, health care, communication services and technology. american express is leading the dow and merck is the biggest loser. so some earnings in your opinions there as well as the overall theme. here are three things driving the action consumer confidence plunging as cases in the u.s. surpass the 1 million mark merck says it expects the

outbreak to reduce this year's sales by more than $2 billion and the nasdaq is lagging today as big tech is set to report earnings the other big cap names later in the week >> time for a coronavirus news update sue herera's got it for us >> hello, everyone here's what we know at this hour president trump is expected to sign an executive order later today using the defense production act to order meat processing plants to stay open processors will be given guidance on reducing covid-19 risk for workers and companies will get additional liability protections. the ceo of google's parents says employees who have been b working from home will not be allowed to return until at least june 1st in a memo to workers seen by cnbc, the doctor says to except a quote staggered and incremental process when it does begin. vice president mike pence toured a mayo clinic lab that's doing coronavirus testing to see how they're working to increase capacity in minnesota. pence was notably the only

person seen without a face covering in a tweet that has since been dele deleted, the clinic said he was told of the facility's mask bing policy before he arrived. and here's a look at the test of new social distancing rules in rome's subway system. riders have to every other seat open and there are circles on the platforms to help passengers stay three feet away from each other. we'll see how that progresses. as always, you can get more on the coronavirus coverage by heading to cnbc.com. sara, back to you. >> all right, sue, thank you we've got 22 minutes left of trading. here is where we stand s&p 500 is up a point as i mentioned. energy is strong hept care not so much. after the break, panera made its name selling soups and sandwiches, but now the company is offering grocery staples during the lockdown. we'll talk to the ceo about that

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zblncht welcome back just giving numbers on the ppp program cthat reopened yesterda. bank of america say iing they submitted 134,000 applications and only got 1,000 back and they have another 48,000 ready to submit and that speaks of course

to the wot l neck we've seen in terms of processing and it's been back and forth between sources at banks and at the sba with our colleague kate about who's to blame those are the numbers bank of america according to a source there providing me today in terms of the types of clients, they say of the 239,000 applications they have processed for the sba to date, 98% of companies with fewer than 100 employees, 76 with fewer than ten, 93% less than -- the headline grabbing stories whether it's the l.a. lakers or the shake shack stories are b probably the exception not the rule quick side point city confirming they'll donate net profit frs the program to the citi foundation then the citi foundation will prioritize the funds going towards small businesses that need it.

they said they give net profits from ppp fram to charity bable causes probably increases the pressure from the other big banks to follow. even if some could argue we're giving more to charity since this crisis began than we're going to make in this program. if you've got two of the binghamton banks that have done that on the pr side of things, you might put pressure on. >> and they don't want to be blamed for giving the money away from big companies or businesses that may not be deserving but it speaks to the demand out there >> of course the demand is enormous to blame the banks for morally stopping short of saying no shake shack you can't take this is is difficult to do. >> let's move on

panera fighting hunger amid the coronavirus outbreak partnering with america they'll provide a fresh meal for those in need. this initiative follows the company's launch of panera's grocery. for more, let's bring in panera's ceo welcome back nice to see you. >> thank you good to see you as well. >> how much have you pivot nd the last few weeks launching this program launch iing a grocery shop in se of your stores as the nation has shut down? also a mandated questions and i think the complex on us at this time are feeling one hand anxiety and fear but on the other hand, your families with

the sense of this and i think it is of that mind set we are looking at how to step up and do things -- it also makes sense for business and p associates. so before this high demand reactions and it's typical to go to grocery stores and high demand items they're home with it, that's when it's hard to get by so we came up fresh produce in under an hour the same day so that's what they launched

then on the community side i think again it's time it is estimated that 55 million people would suffer from covid in the u.s. 20% of the food banks are going to run out of food and you know it's just not right. i think brands like us need to step up. go ahead >> it's amazing and we've seen the food lines just in the interest of time we want to ask about the business because the conversation in the u.s. has focused and shifteded to reopening the economies. are your stores open for dine in in places like georgia now and what r you seeing? >> so i think we have been all along 90% are open of course the dine in has been close d in those cafes and the same state governments

and also we have our own criteria of when we think we will be safe making sure that values -- so we have a -- >> mike, my other big question is on the long-term if you have to rethink the economics of your business if you are allowed to open, a slow rollout across the country, in the environment of social distancing, i mean what do you have half capacity? 25% of capacity? do the economics of restaurants still work and if people are getting used to more and more buying their

groceries and cooking at home, does that also represent a big head wind for the business in the longer term? >> you know i think the new world will have challenges but i think it will have opportunities. i think fortunately, i think what the customers want as we open up will be closer to to be assured of safety. secondly, to be assured of off premise conveniencconvenience, d wellness i think those are the four things that are going to be important and i think panera is in a unique position for those a very strong delivery, rapid pick up. curb side pick up. drive through. so we have not always in which the customers are can access safely and off premise basis and have a strong e commerce platform almost 50% are coming from e commerce so with the infrastructure of premise, e commerce and of brands standing

for food that is good for you, i think we should be able to notice strengths as we emerge out of this. >> thank you so much for joining us ceo of panera. >> still to come, we'll bring you uninterrupted coverage of the final minutes of trade when neindeheart si t mke zo 11 minutes left of the session just lower on the s&p 500.

don't get mad. get e*trade, dawg. we've got nine minutes left in the trading day and we are now in the closing bell market zone kovrnl of all mike is here as always the break down these crucial moments of the trading day and today, we've got chris here as well we'll kick it off with the broad market dow down 29 points with just two more trading days in the month, s&p 500 on track for its best monthly performance since january 1987 how critical are these last trading days of the month in

material terms of the action around rebalancing portfolios when you've had such big gains >> i think the market has a big move to digest the pattern is interesting where it's been a mean reversion type action meaning the beaten down stuff has been performing well have given ground a little bit but to no net damage at this point to the overall indexes so it's unclear if this is a little mechanical or just the relationship got too stretched but it seems like it might be a logical time for something like that to continue for bit >> you suggest some of that rotation might happen last week. tell us why you thought it was due to happen and whether you're going to gauge whether enough of it has occurred? >> when you look at the flow data, the flows to quote the good stuff, tech, utilities, staples, gold, are about as aggressive as we'd ever seen in history conversely, the flows

out of the quote bad stuff, banks, industrials, discretionary, have been among the biggest outflows in history. so when we get these really widespreads it's a time to start thinking about a reversion trade and there's a lot of elements to this and ground row we think is the banks. we've seen in the last couple of days the banks start to show up but you see in other places within tech, semis over software so cyclical tech over growth tech high beta over low beta. these are last four, five, six weeks so i think as we move into summer, investors have to be on guard. >> ups shares under pressure today after disappointing earnings frank has those details for us >> ups stock falling more than 6% after a miss on eps and pulling four year guidance they cut cap exspending by a billion dollars in 2020 but the ceo said that ups plans to remain its 4% dividend dow transports are up more than

a percent and a half on pace to close above their 50 day moving average for the first time since february 20th. the airline led by airline stocks back to you. >> where does this one go in terms of the rotation pool >> i think it's interesting in the transports the by fur kags you're seay seeing rails have been excellent and the trucking stocks are starting to break out here. in recessions, the truckers are one of the first sick cyclical p ha stort to yut perform so we welcome the improvement in the truckers in the rails i think it speaks to the broader idea that there is leadership reversion in front of us here. >> we've got a slew of earnings in front of us here in the next few minutes including alphabet, parent company of google >> this will be our first major indication of how hard digital

ad sales are being hit by the pandemic and google in particular is very exposed to the travel industry. one estimate puts travel at 10 to 15% of total digital ad revenue. small businesses are also struggling make up some 50 to 55% of sales now as brands become more cautious, so does alphabet, it's slashing marketing budgets, slowing the pace of hiring and recalibrating some investments the street will want to know the extent to which these measures are warranted and if there's more ahead back to you. >> thank you the set up look like for google especially relative to some of the other big tech names like amazon and facebook? alfa bet and facebook have underperformed by 30 or 35 percentage points so that was before the peak andly after the peak obviously advertising related.

there's cyclicality in the faang names that's now being registered in the stock so it's not going in at the highs. i think the stock doesn't look particularly cheap here given the downgraded earnings expectations i do wonder if people have already focused on the cyclicality inside of google and maybe therefore won't come as much as a surprise i think on the spending side is where the street wants to hear more information about what the spending priority looks lib for the rest of the year >> chris, how do technicals look for you in. >> we're a little troubled by t it we've had a sharp snap back rally. this is really ground zero for this reversion move. the flows are like $25 billion the record by a mile so you have these aggressive knows. a stock at resistance. i think that's a problem for this moving forward. i think you have to look at some of the laggards here to play catch up and in tech, we think semis are a better option than

some of the high growth faang names here >> mike, what do you ee? >> stronger than just looking at the indexes. if you look at volume flows, we're close to 80% advancing volume v. versus declining that's the average stock the smaller stocks doing better against the huge benchmark names from the growth area new highs versus lows, there are more highs than lows and in recent days, you've seen the new high list get back to ratios yo saw in february. in the low 30s on this sharp down trend but not really giving way today although the index

staying trap would probably leave it lower >> thanks for that just over one minute left of the session. if we bring up a chart for the dow, you can see how strong an open we had at that point we were up 378 points various pullbacks during the day and even though the afternoon looked fairly solid of gains, we're just slipping into the close and we're in negative territory. s&p 500 also in negative territory. down about 5.5% and the nasdaq is the laggard while the russell which of course had been the big laggard of the year to date performance is still higher. 1.3% the only of the major indices in positive territory industrials, energy lead the charge banks have slipped coming off a very strong day yesterday. the regional banks index still

up more than 10% for the two days so far this week. city group which had been one of the laggards still up 9.5% ch interesting to see the dollar, which had been weaker has strengthen eed to be down 0.1% as the bell goes, we are lower on the session 0.5% lower 0.1% on the dow and the nasdaq, the laggard down 1.4%. sara >> welcome back, everyone. take a look at how we closed out. american express was the biggest

winner taking step back from yesterday's rally and from an earlier gain, we got the consume rer confidence number around 10:00 a.m. and it was a bit disappointing. a record fall in consumer confidence the nasdaq underperforming all day. technology and communication services were two of the lieuing sectors and that impacted the tech heavy nasdaq. though health care was the biggest loser in terms of sectors. energy the biggest winner along with industrials the russell 2000 continuing. part of the trend about money moving into the unloved parts of the market we've got a huge hour of earnings ahead for you featuring results from alphabet, tar bucs, ford, mondelez, amd and yum china and then mondelez ceo yo n joins us to discuss whether the u.s. could be at risk of food shortages.

joining us, first to you, mike, on what we saw today and some catalysts that got us there. i just saw an art cashin note from ubs that dr. fauci talking about a second wave didn't help the sentiment after that weak consume rer confidence number. >> i think during the day that definitely seemed like we dame kayem everybody focuses on the helpful signs. we're going to wax and wane where people feel we can accelerate, pull forward when the economy restarts then other days where it seems like we're in for a longer slide. i think it matters a lot right now, the market position coming into this week was megacap growth held the indexes together supported this move and gotten stretched. more cyclical areas and those have come back this week for a couple of days see if it develops into a lopger term trend right now, it's part of this process of figuring out if this 30% move off the lows makes

sense. maybe the mix is going to change going from here. >> so, chris, what do you say to someone that has seen this market rally 31% off the lows and they're wondering if it's too late if you have conviction that things are going to be okay as far as our economy and the outlook in the long-term >> i think as mike talks about here, we have to differentiate with the short er term call and longer the term call, which strikes me as being the most notable. this is the 25th trading day off the day. this is the best 25-day rally we've seen in 100 years. when you look at the comparables, if you're even remotely familiar with market history, the dates are going to ring a bell. 2009, 1987 1982 1974 you've only seen rallies of thi magnitude coming off major, major lows when you look at the forward returns from these dates, they're exception al over the next 12 month, but can be very k very volatile over the next 90

tas so as we move into a more challenging season, may, june, july, i think we have to be on guard for some time type of consolidation or pullback. i think we're seeing it on the leadership front with these changes but when you think about the velocity, it's only matched a couple of times in history >> we're looking at revenues beating for the quarter. 41.6 the forecast was 40.3. the eps comes in as a miss though 987 estimate was 103 traffic acquisition costs for them coming in higher than expected 7.5 billion. just look at the individual revenue lines, the relating parts of the business, search, you tube and google network members properties came in a little soft.

advertising related parts, 33.4 billion. overall, the revenue did beat so that slight miss off set where it was rea the eps that missed because of the higher traffic eck wii sigs cloud it was high r for that we'll keep having a look through this, but the revenue itself was a beat and we'll have to wait for guidance if it's still to come shares up 1.4% after hours let's bring in brent, managing director at jeffrey's. he's got a buy rating on the stock. what were you going to be focused on this quarter and what's your initial take >> 15% growth is a good number

we were looking for 8% i think there's been dire expectations for the ad market and we're not seeing that quite yet. so we'll have to get the guide we believe again that the surface number looks better than it did going in. froms we do believe again the stay at home work from home trend will benefit parts of google's business. there's a head wind in the advertising that will nationally, everyone will have an issue it will be interesting to give us what they will receive -- [ inaudible >> looks like -- it looks

like -- i just wanted to bring in a quote from the cfo of alphabet on this concern about advertising. she said performance was strong during the first two months of the quarter, but then in march, we experienced a significant slow down in ad revenues we are sharpening our focus on executing more efficiently while continuing to invest in long-term opportunities. mike, the big worry about advertising, at least one of the parts that was f a concern going in was around travel because what we heard from expedia and booking.com. these are high volume advertisers on places like google where we all go to search for trips and hotels, that they would be reduced sharply and that would impact the bottom line i guess those concerns got factored in here >> to some degree. it has factored some of that in. not just travel, but restaurants. anything kind of going out looking for a location think about how much that

represents mobile search for a company google i think we rallied in the afterhours just back to where we were in the last couple of days so not too much of a swing, but it seems like it's going to have to get through this period get through the call of figuring out you know what visibility if any the company has and then again those spending priorities. >> chris i know you're look iin at technicals, so i guess the move doesn't emphasize that. does that make you bearish on the s&p 500 give iing the waitis that exist in some of these big stocks like google an interesting point today was the spread was one of the widest in about ten years so you're already stating to see the average stock outperform here. that's something you want to see. that's very consistent with a

bottoming process and i think the trouble is when all the big stocks are concentrated in the s&p, that can be a pressure or weight on the index. what we're focused on is what the average issue is doing i think the improvement from a average issue is is a welcome change from the narrow leadership of the last several months >> google shares up almost 3% after hours. also getting numbers in from starbucks. that stock loo looks down on the immediate reaction kate >> well this is looking like a mixed q2 adjusted eps at 32 cents that's a miss. revenues at $6.00 billion compared to analysts estimate of $5.89 billion. take you through the comps numbers here very much impacted by the covid-19 pandemic. global comps down 10%. u.s. comps down 3% partially off set bay 5% increase in the avrnl

ticket that is the company's outside the market obviously a big drop there loyalty reward members it's important to know starbucks was having a very strong holiday season and forced it to close more than 50% of its stores. they're slowly starting to open back up in china they are nearly back open at 100% capacity in the united states we're going to start to see slow reopen beginning in may. we've heard about different formats of stores opening up with drif through mobile order and pay so we'll expegt to hear more on that and what that might look like for customers really wonderfing what the future of starbucks looks like operating in the pandemic particularly here in the united states. the stock is lower by about 1.5% >> what's going to be the big headline metric here is global comps down 10% >> i think the u.s. and china comps here are really key. but starbucks did come out with

preliminary q2 estimates in april so we kind of knew what it might look like, but those are typically the two big metrics to watch because that's the first home market and the second home market in china as they call it. >> thanks so much for that mike, come to you in terms of the impact on this they're saying covid-19 rates intensified in q 3 then moderate in q4. i guess everyone looking for those impacts of second waves will be b a little concern by that >> for sure. the stock had a huge premium going into h dunn tourownturn. the it was considered a global brand. huge decline then 40% off the march lows up to the current level so there's a lot to digest here and it's very, very sensitive to what your expectations are for the pace of reopening and consumer behavior and all the different issues with the large part of the economy and markets.

they warned there's not a massive move the message seems to be you're not going to flip a switch and there's going to be an all clear and your going to be back to precrisis pace of business >> back to the google results if i can quickly because we saw that trade up after hours. brent suggesting it had gotten too bearish for google we're seeing facebook and twitttwit er trade up. where does that put you whether the market was bearish for these types of stocks or optimistic? >> it's actually, the it was sort of longer term optimistic but shorter the term i think there was on guard for the potential for some choppiness and noise. the google move itself is swrus capturing what was lost today so

i don't know if it's really giving you a clear verdict on whether this is going to be b an inflection point quarter seemingly not. >> i'll just hit mondelez numbers, guys, which are out the snack maker reporting a good beat here, at least on the bottom line at 69 cents versus adjusted 66 on revenues as well. that was better than the expectation of 6.6 and here's the number that i think people are quoing to be talking about a very strong organic revenue number growth of 6.4% thanks to strong volumes in north america they make oreos and snacks, cadbury, they sell everybody where around the globe in china, so it will be a good read to see whether china's coming back and they sell in emerging markets, which was not as strong as what they saw in north america on theoretically what we've been talking about,

the pantry loading consumers going out and buying a lot of snacks. it's something we heard from pepsico in this new lifestyle. hugh johnston called it grazing. we're snack iing all day at t home so that was a theme working in mondelez' favor. they did take away their guidance like so many other companies did. they withdrew the full year guidance on the uncertainty and cloudiness and suspending their buyback program in march just reiterating that in the statement. shares after hours trading higher three quarters of one percent f m we're starting to get these consumer staple earnings last week it shows you why they've been refuge for investors during this pandemic the one place people are still spending, at the grocery store the question is is ta already baked into the valuations. >> i think baked in appropriate for mondelez it does seem as if that's the case that's why i've been looking for the companies that have been givenen credit for being stable

and having safe dividends. seems like they've had their moments. >> we've got another one just hitting the tape ford ahey, phil >> they give announcement on earnings about a week ago. in terms of earnings per share, double the loss many were exp t expecting. lost 23 cents a share. $2 billion is what it works out to coming in at $31.34 billion. why is the stock moving lower? it's about what's expegted in terms of cash burn and the second quarter ford know say iing it expects a loss of at least $5 billion so double what they lost in the first quarter. the free cash flow was negative

2.2 billion. in terror of liquidity, they boar rerowed as mu15 billio$15 . that's what they're going the need over the second, third, fourth quaurd the ride out the storm. you know the second quarter is going to be a disaster with the $5 billion expectation in terms of a loss. conference call starts top of the hour m we'll see what else they have to say about the outlook as they deal with covid-19 hitting all of their sales around the world >> phil lebeau, thank you. just round it off for us, mike, as we get these numbers, how much of it is stale information? clearly, the stocks are moving on it. so it's hard to glean a theme because it's hard to get a forward looking picture of the business, which is why our ceo interviews are so key right ow >> there's no specific single theme but i do think that something like ford there's kind of a hunkering down. a a focus on liquidity

and starbucks saying prepare for the weakness if the out years. so i think that's the theme. if you have any consumer facing business or industrial business it's essentially shut in, then it's about making sure you can have your cash it's all that relative to the expeck tase. ford was below five bucks a couple of days ago so it had pop ed the last couple of days going to give a little bit of that back on the number after hours. >> chris, thank you for joining us thanks to brent on google or alp alphabet up next, we'll talk to the mondelez ceo to break down the latest results that we just reported and the snacks that people have been stocking up on during the coronavirus shutdown. we'll be right back. save hundreds on your wireless bill

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shares of mondelez higher by more than 2% now after hours after beating on the top and bottom line posting strong volumes, especially in north america. joins you are here first on cnbc for an interview is the ceo, dirk, nice to see you. thangs for joining us. >> good to see you, too. how are you? >> i'm doing well.

relatively speaking. let's talk about the 6.4 organic revenue growth seems like north america is where you u saw the strength what did you see from consumers? >> in north america b and in europe as consumers are home, they clearly are snacking more and we've now had time to talk to consumers about that and i would say about 50% of consume ers are clearly indicating they're snacking more in europe and in the u.s. and that's what we see in the numbers. they sort of graze i heard you say. that is correct and the snacks they seem to be going to are a lot of veggies and fruits. a lot of cheese but also a lot of biscuits, crackers and didn't show up in our research, but snacks as a consequence, we've seen

quite an increase in demand. originally, we would have thought this is pantry loading, but it's been going on for six weeks and consumers are build ing a warehouse for oreo is s at home and that is the distant of this fist quarter for us >> you didn't give guidance like other companies so the question is can the strong sales continue you're say iing it's not pantry loading, it's people buying a lot and consuming it and then coming back to buy more? >> yes, that's the data that we have we need several several thousands of them around the world. there are several reasons for that the first one is that a lot of the out of home eating has gone in home and that leads to more snacking, more grazing the second thing is that snacking sharing a snack with your family with your kids

brings back a little bit of f a feeling of a comfort and you start to feel better i think they want to feel normal they want the normalcy back in their lives and having an oreo, that just feeling normal to them and i think those are the reasons why you see the increase in snacking. >> a lot of your peers and other food companies talkeded about the you know the idea of pantry loading. stocking up when this initial fear peaked of how we'd be stuck at home. did you see that and have you seen it trailed off perhaps in april while we're still in lockdown, perhaps fear and panic levels have declined >> yes, yes, we clearly see, saw an original peak where sales would be up 30% in the u.s. but that's gone down into the high single digits, which is still a

lot higher than it useded to be but that's figuring that tailing off and now we're really in normal mode i would say. >> how exposed to you to duty free shopping, convenience store, everything es, the r part of the economy that's shut down? >>exposed to that travel retail is small less than 1% of our sales. it's important largely chocolate and clearly there's been almost zero the other area that's important is the traditional trades. mainly in emerging markets, the smaller stores distributors are not allowed to attend and most of these stores closed traditional trades if you go

around the world will be around 20% of our sales and then there's also a segment which is what we call wait from home food service. less than 10% of our sales all that will come back and we see that happening gradually in europe and now the u.s. so it's going to be a temporary effect, but the feeling that efb affected by that >> what kind of behavior are you seeing post pandemic in a market like china and can you extrapolate anything from that to the western world up in the u.s. >> china has been very different. the measures they used to contain were more drastic. and then the return has been very fast. they opened back up very fast. i would add to that, our team in china has done an incredible

job. i really congratulate them for that in the first quarter, our sales in china were up 3%, which is quite amazing if you compare it to february where they were down 30%. that dwgives you an idea of how much we've come back in march and january. so i would say china was great for us also by the performance of our team, but i don't think you can use that as an example for the rest of the world. the first of all, the impact of the pandemic is bigger in europe and in north america second, they didn't use the same containment measures and three, going back to normal will not be as disciplined as it was in china so i think it will go slower >> go slower here. what about the emerging markets? looks like that was the weaker spot of the report and what do you expect for em? >> yeah, the sector down the

first quarter and will continue in the second quarter is this closure of certain of these channels traditional trade, the keys and so on which are big in emerging markets. but if you look at emerging markets, they are split up in a number of groups you have china and i just talked about china coming back. you have india most affected in the first quarter and will be affected in the second quarter with the closure there of channel. but we do expect they'll come back we have the right price points we think it will come back rapidly and the same in southeast asia then another big chunk of our emerging markets is central and eastern europe where we think also again they're up somewhat of the channels. in fact, they're not as effective at the moment, those markets. and they will come back very fast so we expect they'll return norm

normal sy of course latin america and africa and middle east will see a bigger recession. they have is severe devaluations we have the oil kriss for the middle east. so we expect that, we'll see a lingering effect and a decrease or mitigated consumption of our product. >> thank you very much for joining us >> thank you >> especially right off the heels of that report the ceo of mondelez. >> let's get back to the reaction to another report alphab alphabet dee has been digging into the in your opinions and speak to the economy. what can you tell us >> i just got off the phone with the cfo. she gave more color on what she's calling a tale of two quarters said the first two months were strong then ad declined and other lines of businesses did hold up but remember advertising

revenue still makes up about 80% of total revenue at alphabet on spending as the company custs cost, she said they are focused on the long-term opportunity and those custs doncuts don't apply the pace of cloud investment and hiring head count in that business, which is seeing a surge amid the pandemic. the cost cutting measures she said are focused on short-term levers that they can pull like that marketing freeze and hiring in some sections i also asked her about the capital returns program. she said that does stay in tact. alphabet will kopt to execute his $25 billion stock buyback program that's in place. she didn't say whether or not there were plans to expand that. remember that they have a cash pile of more than $100 billion we also asked her what she was seeing in the current quarter. she said we'd have to wait for the analyst call for more on what's going on now as the pandemic continues and that kicks off in a minute.

so we'll jump on that. >> thanks for that meantime, a check in on all those afterhours movers from the large number of reports we've seen so far. first up there, alphabet up 3.8% strong revenue, slight miss on the bottom line, but advertising perhaps not as bad as some had thought. starbucks. ford is down 4%. mondelez there which did top expectations was trading high e, down 2%. whether it was the interview or not and advanced microsystems has just come out. it's down 5% josh lipton will explain why >> so amd reporting 18 cents on revenue. the expectation there was 1.92 billion so lighter than analysts were looking for for the year, they're looking up

revenue up b about 25% expectation is for 27.6% two segments here, computing and graphic, revenue of 1.44 billion. that's a b that includes chips for pcs. enterprise and custom division, revenue of 348 million that's a miss. that would be the chips for the center starts at 5:30 eastern. >> thanks for that tomorrow, 9:15 a.m. "squawk on the street", an exclusive interview with their ceo up next, we'll have columbia university's director of emergency health and medicine, whether states should be opening their economies before adequate antibody testing is done and much more. that's come up next. new direct. but when you're with fidelity, a partner who makes sure every step is clear, there's nothing to stop you from moving forward.

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here's what's happening. illinois governor jay pritzker reporting 142 coronavirus deaths since yesterday. that's the highest one day death toll since the outbreak began. he also cautioned people against ingesting cleaning products following a rise in calls to the illinois poison control center in california, governor newsome says this state's businesses and schools can gradually reopen once testing improves newsome says school children could return to their classrooms as early as july in north carolina, hundreds of people waiting for hours to buy cases of discounted chicken amid rising concerns of possible

shortages. the chicaken sales are schedule in various southeastern states and -- that meat companies should be propelled to equipment and daily virus testing. this in response to president trump's promise to sign an executive order to make sure meat processing plants remain open you can get more on our coverage by going to cnbc.com wilf, back to you. >> not surprised there are shortages of chicken en if you'e selling it in quantities like that >> the new adage is see a chicken, buy a chicken, but in some parts of the united states, you can only buy in bulk on certain days and those sales are scheduled. and obviously they're successful >> exactly loading up on chicken. thank you very much. some states start reopening their economies, many experts say the key to getting back to business the testing president trump announced the u.s. doing more than 200,000 tests per day.

one of the companies behind a lot of those tests is thermo fisher the company announcing they'll double in the coming weeks mark casper was at the meeting yesterday and joins us now by phone. very good afternoon. my first question is not really thermo fisher specific, but broadly, should we be satisfied yet with the state of testing in the united states or is there still r more r work to be done >> i think the collaboration has been very strong to ramp up testing and to think about over the last five weeks to be able to get5 million tests done but on the cusp of dramatically ramping up testing across the u.s. i'm encouraged by what comes ahead and of course thanks for having me today. >> so what is your capacity? how many tests can you do per day and how quickly can you

process them to get the results back >> so our role is to support laboratories in running the tests. so we make the kits that are used and we've been producing in excess of five million kits a week, which was our origin al commitment we're going to be doubling that in the coming weeks. we're helping our customers ramp up their ability to run the tests. we have thousands of our instruments across the united states and just getting those ready to go so as states want to increase testing capacity, they have the supplies to do so >> are you confident the tests that you're helping complete the you're involved with are 100% accurate >> you know, our tests are considered the gold standard and have extremely accurate results and as long as you take the collection correctly, which is you swab correctly, you're going to get a very accurate result using ours as among others.

>> kung that's the case across all of the tests that are being used out there there are worrying an eck doe tall evidence of f false negatives that seem to be happening. >> no, it's what i know having done this for 25 years is that the large manufacturers that have done this a long time when they put their brand on it, you get a very high quality result and we've all gone through very stringent fda approvals and that's been something that gives me comfort that you're getting very good eququality tests out there. >> so mark, should we all be tested so that we can isolate asymptomatic cases and track them and you know quarantine them >> the way that i think about testing is each state's coming up with the right level of testing capacity and guidelines beyond those that are symptommatic there's a set of cry teiteria ty about when you should get tested and as we get to the reopening

of the economy, i think there will be more testing done and at what frequency will be determined by employers, determined by the states and what we're trying to do is help that happen i think what we're doing in ohio is very interesting. we have a collaboration with the governor and they're using our technology to ramp up to be able to do you know about a million tests in ohio in the next couple of months, right so that really going from a standing start you know a month ago, to being able to do you know over 140,000 tests per week gives you a sense of the goals of one state in terms of what they're doing. so i think it's an interesting model. >> is it necessary and realistic for every single person in the united states to be tested will that be needed before we can be fully comfortable or is that a unnecessary and opt missick? >> inn from the volume of tests you're talking about, i think that is unrealistic in terms of you know over 300 million tests being done i think you're looking at more a

sampling methodology, tracking those positives and doing the isolation in those cases and complimenting testing with social distancing, personal protective equipment, things that as we go back to work in the workplace, you can do things to reduce the chance of spreading the infek. so i think it's a compliment to some other measures to help accelerate the restart of the economy. >> mark, thanks for joining us >> you're welcome. >> let's stick with the battle against the virus. now joining us is dr. craig spencer, he's the director of the global health and emergency medicine at new york presbyterian columbia medical center dr. spencer, so good to have you again. thanks for joining us. >> thanks for having me. >> so since we last talked, the number of icu admissions, hospitalizations, even deaths has come down in new york. that's been encouraging to see what's it like in the er is there anything that resembles normalcy coming back

>> good question because i don't know if we're going to have anything ever at least in the next couple of years that resembles normalcy there will continue to be b covid patients what's going to be important for us is is how we transition from a couple of weeks ago only seeing covid patients to now we're starting to see some chest pain parent and stroke b patients more than we were think iing about how to take cae of those patient groups at the same time and stay safe. the one thing that's really important, a message i want to share is that if you need to go to the emergency room for covid or non covid reasons, if you're having chest pains, a heart attack, a stroke, you b absolutely need to go. we have so many people showing up saying they didn't want to woman because they were worryie that coronavirus was in the hospitals. it's true. but we need everyone who has these life threatening emergencies to continue to show up otherwise people are going to be sick and die at home >> so dr. spencer, sounds like

there's still a lot of pressure on the key health care providers in terms of capacity. does that mean that we shouldn't be doing any form of reopening yet or actually is it a worthwhile not gamble to take, but test to take to see, to see where it leads us? >> we closed a lot down and we did all the social distancing and we you know, we implemented this over the past couple of months the past month really so that we were able to buy time to do the things that we needed to do which was increase the amount of testing that we were doing look into other treatments and therapies and really start to build a public health system that could approach this in the right way. we're talking about now increasing testing to have 2% of the populations tested per month. that's better, but that's not near hi enough we need probably at least half a million tests done per day if we want to open safely. this shouldn't be a state by state thing. this has to be based on the situation that's happening anywhere new york city is very different than new mexico right now.

we should have different plans we should have different criteria for how we're approaching that that being said, we need to be thoughtful on things that work bread and butter public health, which is testing way more testing than we're doing now. to make sure we can open up to some sense of a 234u normalcy safely because if we just open up relying on a small amount of testing, we're going to be back in the same situation in a few weeks and months and into the next year. >> dr. spencer, is as you've seen more and more of these covid-19 patients, is this illness at all becoming predictable? in order, can you tell when a patient comes into the er just how sick they'll be based on their symptoms and labs and what course they'll take? >> that's an interesting question because i worked in west africa during ebola and the first couple of kay i was there, i didn't know who was goin to be

ma l malaria, ebola but you get in tune in the span of a couple days. i think what's hard with covid, it can present as everything and anything yes, cough, fever, shortness of breath, but sometimes, it's ab dom nabl pain. sometimes, it's headache, vomiting sometimes it's old people, sometimes it's young people. i think we're getting more in tune with what our patients look like but we're finding when we test people with nontraditional covid symptom, we're still doing cat scans and x-rays and finding out they have covid as well. >> thank you zblncht we have breaking news to get to on the federal reserve. steve liesman has the news steve. >> yes i guess this is from the department of first world problems but the jackson lake lodge where the federal reserve has for many, many ryears held the jackson hole summit every

august is now closed and the kansas city fed who puts on this event says it's considering a alternative b possibilities. don't know if perhaps they're going to cancel it i guess we remarked this because the fed has met somewhere in jackson hole for most of that time since 1982 and like a lot of other things, normal life is disrupted at this key meeting by the federal reserve maybe disrupted as well. my guess is they'll find a way to do it perhaps use a virtual background of the mountain, sara. >> steve -- >> it's not until august feels like a lifetime away >> and maybe >> in the future and this is more to be honest a swipe at the likes of davos i've not been to jackson hole, but maybe these types of things forever in the future will be held in more reasonable cost efficient places because let's face it. it's slightly ridiculous every time these are in the most expensive places

>> no, no, no, steve, i'll push back on that and steve, you have been, too. it's rustic. >> i bet it's wonderful, but why should they always be in these places it is a waste ov money no two days about it >> wilf, i think you're right the optics, which are beautiful, are probably bad for the fed i will say it's a relatively inexpensive, relatively rustic location it's a dumb reason that they're there. jackson hole, wyoming happens to be at the corner of the tenth district for kansas city they held it there it's believed because paul vo volcker who was a fly fisherman, it was held there to lure him there and it's been there ever since. it's been home to you know, the legends in the central banking world. i get it but there's also maybe still, i think you could appreciate a room for tradition. >> that's an interesting back story and it's not as absurd as

davos, which is the singleheartedest place to get to in the world with i don't know how many tens or hundreds of thousands of employees but i'm just raising that point in general. >> i'm not bringing up the fly fishing for any particular reason no reason i would bring that up. >> i know, steve thank you. yum china earnings out kate >> against all odds here, really strong q1. analysts were looking for them to lose 18 cents per share revenue, 1.75 billion. more color, the company says 99% of its stores in china are either fully or partially open they have about 10,000 delivery b contributed to 35% of sales this quarter the company seeing that contact lsz delivery has been a big success there and also temporarily suspending share repuchlss and dividends. the stock is higher by just under 4% now back to you.

>> thanks for that earnings have been b coming thick and fast over the course of the hour. we'll break down all the key movers, why they're moving, when we come back

welcome welcome back a lot of after-hours movers. alphabet, up three% after hours. missing on the bottom line and beating on revenues and 13% sales growth was seen as better despite the fact that coronavirus is hurting the overall advertising market, something that was acknowledged in the report. starbucks beating on revenues and the stock is down 1.5% and ford missing, projecting an adjust the loss of $4 billion in the second quarter on the coronavirus. mondelez withdrew its full-year outlook and saw organic sales growth and amd, the second-quarter revenue guidance

came below expectations and the ceo will be on "squawk on the street" tomorrow morning >>. >> the market has reopened and you had some fed action and the markets liquefy. this say historic look for default rates of high-yield bonds going back, and you see the spikes, recession, recession, bad recession. >> and this is goldman sachs' projection of what they believe it will look like this cycle and this year and next, that's getting up toward 12% default rate so not too much lower than we saw here in 2008 and 2009 and take a look at an effective yield and this only goes back five years and the yield did have the massive spike up 11% and if, in fact, the default rate gets back to where they thought it would, it would be surprising they were at 8% yield

where we did want have the massive default rate and the question is will we see the wave of defaults and this is the issuance of high-yield debt and this was a week ago and we're above that right now so clearly the market has been refreshed and the investors want this paper can we bridge high-yield issuers to where the economy reopens that is the big question right now and that would basically mean that goldman sachs' projection for default is slightly pessimistic versus what we might get we'll have to see. >> all eyes on the fed for that. mike, thanks >> they haven't bought any yet, sara they just said they will. >> well, the signaling effect. >> we'll have much more on today's after-hour earnings after the break. that's why td ameritrade designed a first-of-its-kind, personalized education center. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now, you're binge learning.

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>> we're getting some breaking news out of hollywood on the academy awards julia boorstin with the details. >> new eligibility rules for the academy awards now films do not need to be released in theaters to be qualified or to win an oscar this is for this awards year only and streamed films are eligible for oscars and the

films must meet eligibility requirements and when theaters reopen then they will go to the prior rules which means films do need to have a theatrical release to qualify for the oscars and this is a big deal for netflix. so it will be interesting to see how long this lasts and whether perhaps it could become a permanent change despite them saying it is only temporary. >> it was such a huge debate over the last -- >> despite steven spielberg. >> imagine if one of what would have been purely streaming releases films wins and sweeps across the board this year it's going to be hard. it's going to be hard to reverse the decision and say next year they have to be in theatrical releases julia, thank you very much. >> finish the thought. finish the thought. >> no, i was going to say, it will be interesting to see whether this encourages more studios to release films this year rather than waiting because they wanted their films to qualify. so this might be designed to

make sure there isn't a huge backlog of films with studios holding back to make sure that their films could potentially win an oscar >> julia boorstin, thank you for that. >> tomorrow a huge day of earnings and the key names we're watching when we return.

>> welcome back. guy, i mean, we've been saying that earnings perhaps wouldn't have been that important given that it's all changed over the last couple of month, but we learned again today that they influenced stock prices and another big day tomorrowwith the likings of microsoft and boeing, front and center >> yes microsoft, boeing. we have facebook, as well. so it does seem that two of the sort of favorite glamour growth stocks coming out and we'll see if again, a lot of that was baked in and those stocks have

been backing off in the last day or so. >> i would only add that we also have a fed meeting tomorrow and a virtual news conference with jay powell we know the fed has been all in here very active and intervening in markets and just recently going into the muni bond market. any comment on the economy will be newsworthy. >> we are out of time on "closing bell. thanks for watching. melissa lee is next. >> welcome back to "fast money." guy adami, tim seymour and steve grasso an earnings palooza, alphabet, starbucks, ford and amd, we are digging in on each of these big names plus morgan stanley's mike wilson is with us and why he says we have turned a big corner when it comes to werings and horton hears a who, and what sent that stock soaring today.