the incredible bounce back on stocks. futures are higher by more than 200 points but why are wall street and main street telling such a different story right now? the race for a vaccine picking up and the ceos on this network touting their progress on the fight against the virus is the food supply chain at greater risk is president trump telling meat processors to keep working and boeing's bond buy.

what may be the most important stock in the market right now. the roller coaster ride that is crude oil continues last night, july falling below $18 a barrel a lot going on on this wednesday, april 29. you are watching "worldwide exchange" here on cnbc good morning welcome from wherever in the world you may be watching. i'm brian sullivan here is how your money and markets are setting up their wednesday. the dow did fall a bit yesterday but as bob pointed out, many thought it was a relatively good market day for this reason it wasn't just the four or five big cap tech stocks leading the way as they always had been. banks, small cap stocks, which had been notable underperformers were actually stand outs

some people want to see that kind of rotation today, big cap technology could be in focus. following google's quarter which wasn't as bad as some feared, stock up nearly 8% pre-market. oil on a macro level becomes the metric to watch. crude oil in the front-month contract, which is june, is trading slightly higher today. the july contract today is at 18 and change it was below 18 last night it is very clear as you look out. traders clear of demand. we'll get more on oil throughout the show also in focus. first quarter, the market expects pretty relative things likely they'll pay attention to the fed meeting and talk by jay

powell, which will be later today. what we have got a lot to do here in the states, let's see how asia fared as china makes its way back matt has more now. >> we had a cautious day of gains for the markets ahead of everything you were talking about. the fed decision and the u.s. gdp number we have the japanese market closed the best performer was the australian market. a fair number of corporate earnings there south korea up by .75% q1 net profit fell by nearly 3%. saying in the second quarter, the numbers will likely drive higher again with smartphones

and chip numbers as more people work from home and cloud spaces benefit. in hong kong higher by about a third of one percent the asian, british bank listed in hong kong, those shares spiking more than 6% despite a 12% drop in the q1 profit. credit impairments getting the fall that wasn't as bad as some were expecting. shanghai composite, you mention china getting back to business watching crucially tomorrow, more pmi crossing over >> thank you very much now that you've had your coffee here state side. we have some good news to begin your day the race for a vaccine is going faster than expected we still have some tough numbers to process around the coronavirus here in the states

let's get it all wrapped up with rahel solomon. >> good morning. so pfizer joining several other pharmaceutical companies saying they have accelerated the timetable. u.s. tests will begin next week and one could be ready for emergency use as soon as the fall pfizer is just one of the companies speaking with cnbc yesterday alerting investors of the progress and treatments developing at a rapid pace here is merck's ken frazier yesterday. >> we have been with collaboration with other people in industry and academics around the world. we have gotten into a position where we are focusing on some proven platforms the vaccine platforms we would have used with desirable qualities. we are optimistic and excited about moving forward with those

programs >> president trump said, quote, the u.s. will soon run 5 million corona tests a day saying that is a requirement for opening the u.s. economy president trump signing an executive order compelling meat processing plants to stay open and protect food supply, this comes despite the covid-19 that has shuttered the industry >> we have the ceo of a major grocery store chain coming up to talk about that later in the show back to the macro markets and stock futures, up hire over 200 points now oil ticking up a bit trying to hold its ground. if you are thinking about playing either market right now, stocks or commodities, your next guest says you need to be a little careful chief investment officer at equity armor investments

it is good to chat with you. i think all these retail traders, many of whom were here, many in asia just getting absolutely decimated last monday when oil went negative if you are going to venture into the etf world, you've got to be really, really careful right now. >> absolutely do, brian. when you talk about oil and any sort of futures commodity product, you have to be careful how you are owning that. imbedded is not just the contract spes ifndications you see. you brought up the oil futures trading as high as 24. behind that is the imbedded cost to carry the storage, the transportation behind that instead of buying an etf like a uso or something like tharks i

rather bet on the guys, the professionals. i rather bet on the oil people to do that for me. like conocophillips, phillips 66, valero, rather than betting on the actual futures market >> good point. when you buy an etf, you are buying a bundle of companies that has been a positive some of these companies may go away you are saying if anybody out there wants to bet on oil, buy a couple of big cap individual oil stocks and maybe avoid the etfs? >> yes avoid the etfs that track futures or commodities if i'm going to bet on an etf, something like xle look as track tiff to me that's something i might dip into today

that has had a nice uptrend moving on. trading above its support line that's an etf i might own. that has the big cap names i'm talking about. those top holdings in something likethat have those big megaca names. i'm either looking at those big cap names or individual names like you mentioned >> from a macro market perspective, what a bounce this market has had nobody is saying it has been a good year. with err still down for the year look at the last two weeks, we've done about 60% retracement. not to quote 15th century mathematicians, they have failed in the past. is this rally going to last or is this literally one of the biggest head fakes in history? >> i have a masters in

engineering. yes, it is a dangerous level what markets move like that, they move to those levels. i'm looking for the s&p to trade at 29.50, to get a bhof that level. the nasdaq to trade slightly higher both those big indices have hit these magical math levels where we could see a pull back here. the one concern when you look at vix and volatility the vix is still up right now. the day-to-day moves in this market, the 2% swings. it is still a dangerous time to be investing here. if you are betting in science, we'd love to continue and see the vix come off it has been a remarkable 2.5

weeks. thank you for joining us we'll chat with you soon on deck, the countdown is on how many days are left until the world runs out of storage for oil? the question rattling the world. as more meat processing companies shut down, do you need to worry about the food supply the head of one of the area's most well-loved chains will be with us to talk about that >> and why is the stock market going up when the numbers around main street's economy are still so dismal. we'll talk about that and more futures, they are up, 242. we'll talk about that after this and ready to help you find opportunity. so. let's talk.

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welcome back 5:14 on a wednesday morning. the global drama that has been crude oil continues today. slightly firmer right now. still around $14 a barrel. the july contract higher late yesterday falling under $18. meaning traders still worried about the future the story has been about storage. there are other key things to watch along with that. the head of oil markets at rye stad energy.

joining us now thank you for joining us let's get your take as the days creep on truly, how close is the world or maybe the united states to running out of viable storage? >> we believe that is not too far out into the future. >> it is true, united states does have most of the remaining on shore storage capacity within its country. what we will see now is a gradual -- in phases, various places in the world running out of storage capacity during the coming weeks during may. and also, united states may run out of its practical storage capacity during may. especially in cushing at the delivery point of the contract

>> that is one thing our viewers have really learned about the industry that contract we kwoquote, that price for oil, is really the oil price in a tiny little town northeast of oklahoma city, oklahoma what happens if indeed that storage fills up what does the day look like when people simply have no place to put it >> i think we actually saw the early warning signs of what that might look like last week when the may contract expired when we saw the negative prices for the may contract for trade at the end of the day essentially when we run out of the physical storage capacity and expected the takeaway possibilities for crude, due to be delivered at a specific

point. in this case, cushing, oklahoma. during one month, essentially, the market breaks down the seller needs to pay the buyer to take the oil off the seller's hands because simply it is too expensive to take that oil at a positive value. so that is what we saw the early warning signs of it might also be the case for the june contract. the difference of supply and demand is so that we are accumulating storage into the united states still. we might see the report of all-time high u.s. crude commercial storage levels when the eia reports its levels at 4:30 cet >> okay. two questions which are incredibly basic

i keep getting them. i don't have an answer i'm going to ask you, which is given that why we see prices firm up a bit and why the heck, given the storage situation you just outlined, why do people keep taking oil out of the ground >> that's a very good question we also are a bit skeptical to this little rally. and the positive sentiment wave we are now seeing started yesterday and continuing today because, okay, there has been some positive news about the prospect for oil demand from europe when it comes to opening up the economy

there is positive news about a recovery at some point soon. still in the oil market where we are producing a lot more where refineries are still consuming -- >> losing you a bit, my friend good stuff there we'll get you back on again soon still to come here state side on this busy wednesday morning. another sign that corporate america is not expecting a rapid or v-shaped recovery for the crisis anytime soon. we'll reveal the stock to watch around that. >> announcer: today's big number, 9.5% that's how much the russell 2000

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semiconductors are in focus. let's get to starbucks they said same-store sales fell 10% last quarter first decline since 2009 the company expects the impact of the coronavirus to be greater this quarter roughly half of starbucks stores remain closed. they say its customer base is growing a little from the worst of the crisis as everybody places large group orders while going to the drive-thru. google could be a big bright spot for the macro markets today. revenues rose 13%. the company saying it was really a tale of two quarters ad sales taking significant hit in march

following a strong time of year. time spent on google and youtube growing. device activation is down. stock responding positive up 8% in the pre-market. and last, advanced microdevices, amd shares are down now. first quarter results were in line chip maker cutting for the year as it sit supply chain and demand that ceo lisa su will be on squauc squawk on the street about 9:00 a.m. today and another name returning the taxpayer loan it was given and what is ahead for boeing

we will speak with a top-ranked industry analyst on what might be the most important stock in america right now. a tale of two carmakers document na dominating the conversation. a look at how auto demand looks. 5:32 on a wednesday morning. we are back right after this to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex. find our coupon in sunday's paper. osteo bi-flex. jimmy's gotten used to his whole yup, he's gone noseblind. odors. he thinks it smells fine, but his mom smells this... luckily for all your hard-to-wash fabrics... ...there's febreze fabric refresher. febreze doesn't just mask, it eliminates odors you've... ...gone noseblind to. and try febreze unstopables for fabric. with up to twice the fresh scent power, you'll want to try it... ...again and again and maybe just one more time.

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what will the federal reserve say today about the economy and the ballooning balance sheet? stock futures higher boeing, beaten up and dealing with issues on many sides. will the ceo calm investors with guidance today and the feud supply chain at growing risk trump moving to keep it open we'll talk about what to expect when you go to the stores? coming weeks that and more still to come here on cnbc. welcome back it is almost 5:30 on this wednesday morning. i'm brian sullivan hope you are having a good start. happy 16th birthday to the world war ii monument in washington, d.c. hopefully soon all of us can go

see it again in person good wish there. now let's get to your markets. stocks looking to continue the remarkable come back for lows indicating the jump at about 260 points oil remains one of the metrics to watch june delivery slightly higher around $14 a barrel. the july contract. it weakened late yesterday it is above that right now traders very worried about demand you heard our guests saying by mid-may, all of the storage in the world could be filled up >> you've got gdp numbers coming up backward looking. the market likely to pay more attention to the federal reserve. the interest rate decision expected there

we are already at zero but they will listen closely to what fed chair jay powell has to say. going around the world on "worldwide exchange. earnings dominating here and in europe as well, which is where we find our julianna tatelbaum in london. >> good morning, brian absolutely fair to say earnings dominate the news flow this morning. it has been a choppy session for european equities. generally, we have seen them trend higher banks in particular focus. we've heard from a number of lenders. barclays setting assign 2.1 billion for credit impairments. deutsche bank swung to a loss. we heard from the cfo there saying credit losses are manageable despite more contain to come. in addition to banking stocks, airbus also in focus the aerospace giant reported no

guidance regarding limited visibility we spoke directly to the ceo who commented on a recent letter to employees warning that they are bleeding cash. take a listen to what he had to say. >> we are hit by the gravest crisis we've ever had in civil aviation the purpose of that letter was to share with employees the situation and the need for action >> that's the picture here in europe this morning, brian we'll hand it back to you. >> julianna tatelbaum in london, thank you very much. one year ago, boeing was a nearly $400 stock but then the 737 max crisis, the ceo fired and the global lockdown. shares now at $133, down 65% in 12 months.

boeings earnings are out this month. they are working on a bond fuelled financial package. joining us now on the cnbc news line is analyst covering boeing and institutional magazine runner up winner of coverage i don't even know where to start. what is the new thing ceo david calhoun needs to reassure investors about right now? >> caller: a few things and thank you for having me on we are looking for more detail from boeing. we'll hear a lot about how they are going to manage their liquidity, whether they will tap private funds or source financing. we saw that out of airbus that they burnt $4.4 billion in cash

and stopped net cash consumption by q4. the second thing is production rate changes we have seen this out of airbus a few weeks ago. third, any sort of update on the max, when is it expected to be certified. we saw southwest pushed up the max on their schedule until late october. >> how strong or solid or long-term is their balance sheet right now at boeing? i hear about borrowing multi-billion bond fund packages, you wonder what they are trying to do and how strong that package really is >> caller: this is a company that generated nearly $15 billion in free cash flow in 2018 that's just context because they

are such an organization we think they'll end q1 with $15 billion on the balance sheet when the max was grounded, they continued to pay suppliers at a rate of 42 to 52 but they weren't delivering any of these aircraft they hung on to about 400, which really drained their cash because they are sitting on a bunch of inventory that they haven't been able to deliver to customers just yet one of the issues and covid on top of that as you are seeing aircraft being pushed out of schedules and cancellations. we think they'll have to shore about $15 billion in capital in some manner. production rate cuts will help them because it will alleviate some of the supply chain outflow and i'm sure you'll see work force reductions as well >> any indication we'll see more

airplane cancellations look at air travel that we'll get some kind of normalcy in three to five years. >> caller: we've seen net cancellations this year, believe it or not, only 17 cancellations. it is because airbus had a bunch of orders. we are predicting total cancellations go up to about 1,500 aircraft what you'll see from the airlines is deferrals. if you have an aircraft in 2023, it doesn't hurt because you have a low number on that to push out to 2026. i don't think you should watch the order cancellations unless they are near term in terms of recovery, that is what is interesting. we'll see that down 50%. we are predicting air travel improves by 2023

we are seeing increasing by 6% by 2023. somehow we are going sto transport the seam amount of people by a smaller number of planes and smaller planes, we are reducing wide body, which will see the biggest hit because of international travel. how are we going to do that with less planes? bottom line, the industry is pretty negative. you are seeing that in share prices already reflecting big cuts. it is a mart of what the recovery looks like. >> a lot of issues there around boeing we'll see what david calhoun has to say later on today. thank you very much. coming up, boeing ceo david calhoun will join cnbc to talk more about their numbers call this ford versus the

global lockdown. it lost $2 billion during the period citing closed factories and decimated sales. warning it could lose up to $5 billion during this quarter. the ceo adding the pandemic will likely, quote, slide the timing of new product launches originally scheduled this year and next like the all-new electric mustang staying with earnings and results, tesla out with their first quarter numbers. phil lebeau joining us by phone >> caller: there are wide varieties of estimates of how much money tesla may have lost in the first quarter with the estimate just under $6 billion

this is about the coronavirus impact on tesla. we know it has hit all industrial companies, the auto sector particularly hard we are trying to still get a better sense of how much it has hurt tesla they did have the shanghai plant come back on line which would offset the preproduction starting in late march these are q 1 numbers. hard to know how much impact from the freemont plant. remember the guidance currently is to deliver at least $500,000 vehicles this year does tesla bring that down they'll say, it will be 400 to 420,000 vehicles, they'll be okay when it gets above 500,000, don't be shocked to see this come down later today.

>> we should probably team up and do a deep dive as the price of oil continues to fall, can you buy a gallon of gas under a dollar now any indication that this ultralow price of gasoline could damage not just tesla but this ev surge we were starting to see? >> potentially it could hurt the overall ev surge but for tesla, it has the first mover and best quality brand name it's the kleenex of electric vehicles the expectation is that tesla can ride this out much better than, let's say chevy trying to sell the volt. gm will struggle to sell the volt it just won't happen this will be something that will play out this year, no doubt >> electric rates have come down

as well with natural gas i know you have a big day. appreciate you joining us there from chicago still dark there coming up, the coronavirus forcing some big changes for next year's oscars amid continued stay-at-home orders. heading to break, would you go into a store to buy a big screen tv best buy hopes so. they'll be reopening 200 stores but associates wear a mask and you have to make an appointment. will it work the new state of retail, folks oil coming up as well. we are back after this short break. stick around derek, seems like your team is operating just fine remotely.

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it combines align's probiotic with ashwagandha to help soothe occasional digestive upsets, plus stress that can make them worse. and try align gummies with probiotics to help support digestive health. welcome back let's stay in our continued coverage the sba now saying it has awarded $52 billion of ppp after the latest round was hit by glitches amidst the roll out another company says it will give back funds after the public outcry >> axios says it will return nearly $5 million it received

through the paycheck protection. it is working on another source of capital the backlash of claiming funds that were aimed to support small businesses >> house speaker pelosi will have more. she joins "squawk box" in a first on the street interview at 10:45. the new york stock exchange planning to reopen the san francisco trading floor in compliance with local health orders nyse said they'll eventually reopen new york in phases with increasing social distancing measures the academy of motion pictures arts and sciences will allow streamed films current rules require films to be played in theaters at least seven consecutive days to be nominated.

that requirement will be halted. between sports and arts and school how every is trying to adjust tothat pandemic i'll send it back to you >> apparently, alcohol sales have boomed. what i'm told by the way >> i wouldn't know anything about that >> rahel solomon, appreciate that so much in the face of a almost certain nationwide meat shortage president trump compelling factories to stay open despite rampant spread of the virus on the front lines of assembly lines. some 22 plants have closed down and at least 20 meat processing workers have died after contracting the virus. to the ceo of one of the most beloved chains, stu leonard's

with stu leonard jr. do you expect there will be some kind of meat shortage facing you and other grocery stores in the coming weeks >> there is going to be a shortage i've talked to ranchers in montana who have a lot of meat and meat packers, that's who trump ordered to stay open they've had problems too with the virus. that has affected their plants if you have a big, long assembly line as you are handling all the beef, they have now spaced them every other one. they've taken half the people off their production line. that slows the plant down. plus, we've had 7% to 10% of people who said i really don't

want to come in to work right now. they might have respiratory or heart issues so the meat plants are facing what every other company is facing right now >> what is your advise then to customers? we saw this with toilet paper and other things sort of at the beginning of the crisis, how do we avoid some rush now to the stores when people hear, meat shortage, i better stock up? >> that's the point. we don't want to create panic. one of our goals, full shelves we have a lot of beef. this is a hot one is ground beef right now. don't panic. you will go into some probably bigger chains that won't be able to have the beef we are a family buzz i'm able to buy direct from a lot of smaller manufacturer. we don't buy much from tyson

that doesn't really affect us. but the smaller meat, fish, chicken, turkey producers are telling me they are going to have plenty of beef and so far for stew leonard's >> i'm sure five or six weeks ago, going to the grocery store was scarey experience. i feel like having gone recently myself locally that people are falling into a bit of a rhythm you've got masks and gloves. i feel like in a weird way that we are kind of getting used to this and getting better at it. it is becoming normal and less intimidating >> it has changed. i've been in the industry 50 years now. i don't think i'll see the same

retail store like we saw two months ago we have these big beautiful buffets like whole foods has we've had to stop and make them service areas now with plexy glass. where you see here, the butcher cutting area we've had to put up plexy glass. i never in my life imagined would customers all come in wearing masks. not only the cleaning crew, all our customers are wearing them it is an executive order by murphy, cuomo and lamont >> you guys and all your workers there, stew, have done an amazing job. a big shout out to you and your

team at all your stores. >> thank you >> best to you thank you for keeping the shelves stocked. >> don't panic okay there is going to be plenty of food there is plenty of food in america right now. i believe america is going to get you your food. don't worry about getting meat >> important words we need to hear thank you, buddy >> thank you on deck, stock futures up 250 points right now just like the segment we did with stew, why are wall street and main street telling such a different story as we get such tough numbers on main street and stocks keep going up we'll try to answer that very question next.

welcome back, actually a few companies daring to issue

forward guidance in an uncertain world. they all appear to be in technology fireeye, akamai, others last week only ones issuing guidance. others saying we can't see that far into the future. let's talk about the question so many of you have around the markets. why is wall street bouncing back when there are 26 million unemployed and so many fears on main street? joining us now, managing director of markets. good to chat with you again. that is the question you are probably getting i know i'm getting on line, off line, main street is in shambles and stocks are bouncing back why? >> caller: good morning. it is nice to talk to you. there is a big difference between the economic outlook and

what the markets are doing and what our clients are asking us and why are you seeing a lot of the major indices rallying one of the big reasons why we are seeing this is that fiscal and monetary policy has been so robust the fed support has been epic. we are expecting fed chair powell to speak today. what we probably will see is some rhetoric or conversation or reassuring messages to investors we've been seeing all along that the current crisis is under control and we have support of the fed. this feels a lot different than 2008 the economy feels like it probably is in trouble a lot of these are pulling back in earnings. we have to get people back to work at some point when it is appropriate to do so until then, the world has slowed down the difference then with the

markets, we are on track to have $8 trillion balance sheet with the fed. having a big impact. they are reacting very, very fast a lot quicker than in 2008 investing along with the fed is ooshl usually never a bad idea >> is it that simple, don't fight the fed? or in this case, don't fight $5, 7, $8 trillion balance sheets? >> caller: it has definitely been working you were talking about it before a lot of people are adjusting to this and people are going back out with masks and gloves. we are starting to see starbucks reopen in china. factories there impact the supply chain for the market darlings like apple for example.

retail and tech have played a bigger role for investors there. there are opportunities for the stimulus some of the fact that the curve may be flattening out of the virus. >> as we round out here, where are your clients putting your money right now? are they betting big are they taking leveraged bets >> we are seeing a little bit of all of it. clients are looking for quality. in the short term, 3 x trade we are seeing a flow into tech and investors enabling us to work from home also acting like a defensive stock right now. you will have potential earnings recovery into years to come because of the reliance on things like video streaming,

webcasts, zoom, faster speeds that we need to work from home we have the clouds are doing well microsoft earnings and revenues are expected to increase second is consumer discretionary. >> we have to leave it there we are out of time we'll get you on again soon. sorry to cut you off hear from you soon l w futures up 230 oiup i'll see you tomorrow. "squawk box" picks it up right now. and... let's get started.

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futures warning to gain as crude prices rebound we get you ready for today's fed policy announcing ahead.

taking you to the numbers from alphabet and starbucks president trump ordering meat processing plants to remain open it is april 29, 2020 "squawk box" begins right now. good morning everybody welcome to "squawk box" here on cnbc i'm becky quick with joe kernen and andrew ross sorkin we've been watching u.s. equity futures. they are trading sharply higher. dow futures indicated up about 230, s&p up by about 37, nasdaq up by about 150. this matches what we saw yesterday but you did see the market give back those gains the market was up yesterday