off here >> starbucks, scott. cake pops for the win. >> cake pops all the way around. all right, guys. you all be well. good seeing you. let's get a quick check on the market, too, as we head out here mcdonald's weighing on the dow s&p off 4% we'll hand it off to kelly right now on "the exchange." >> thank you, scott. welcome, everybody with stocks falling on this final day of april, amid a flurry of mixed earnings and weak economic data, it's been a strong month for stocks, though. the dow and s&p having their best month since 1987. the s&p is up about 12% right now. the nasdaq is up nearly 15% for its best month since 2000. let's check on the markets, as stock just mentioned, we're seeing these red arrows down, 1.3% but the nasdaq is only down 55 points keep an eye on that one. it's only trading lower by two-thirds of 1% it's also been an historic month for oil. we've been covering it every day

here we began the month at 20 bucks a barrel, went all the way down, memorably on that monday to minus 37 and voila, we're back to almost $20 now. these extreme moves show just how severe the demand loss has been and the storage glut for the oil pit. but let's get to all of the action that is driving the markets today. as always, we turn to bob pisani for that bob? >> and we are a great month here s&p is up 12%. we are just off the lows for the day. we started moving up about 15 or 20 minutes ago, off of the lows. look at the s&p 500 here, and you can see, not a bad day, considering the last few days, we've had tremendous gains, this is the last day of the month you get some pension rebalancing, you'll sell some stocks here because of the pig moves up that we had in the market overall lagarde did not sound terribly optimistic over in europe and that europe market was down, as well as for what's going on for the

month, all of the laggards have become leaders and all of the leaders were laggards. so everything flipped in the middle of the month and that's because the reopening story came to dominate. so at the start of -- at the middle of the month, energy and retail and banks, we're all getting killed and they've completely flipped around in the last two weeks they're the leadership group now. in the middle of the month, consumer staples and utilities were the big leadership groups and now they're the laggards so the market has flipped around and kelly, i think that's a very good sign. and the last few days, by the way, we've seen a tremendous amount of expansion of the rally. the number -- the breadth of the market, 3 to 1, 4 to 1, 5 to 1 advancing to declining stocks in the last several days. >> you've been all over that, bob. appreciate it. what are the takeaways so far. this is the, weirdweirdest, most confusing thing. there's three main points i

would make about what we see here number one, there's a lot of contradiction. some people are reporting great sales early on and then slowing down others are reporting terrible early part of the quarter and then picking up. it's hard to figure out. most have been withdrawing to full-year guidance the majority of company's report have declined to provide any kind of full-year guidance that's creating all sorts of problem. and i don't think it's too aggressive to say, analysts are really clueless. there's a ridiculously wide dispersion on the analystestima. a lot of analysts are lazy the estimates are really, really wide at this point so instead of earnings guidance, kelly, we're getting sort of green shoot comments that are helping the market google talked about a difficult quarter. the consumers were shopping less, but they're optimistic that the ad revenues were improving in the last few weeks. cummins, for example, they came out and they taulked about business ramping up slowly in april, and also facebook talked about signs of stability in the ad market.

usually we get guidance and numbers. we don't have any of that now. just some commentary >> and we'll go off that as much as we can. bob, thanks so much. bob pisani meanwhile, the fed announcing today it's expanding its main street lending program to include more businesses and new types of loans are the treasury and fed taking enough risks to help the economy. let's bring in steve liesman steve, we've learned a lot today. >> we have yesterday, though, kelly, i got to ask the treasury secretary, steve mnuchin, and the fed chair essentially the same question. are they taking enough risks to help the economy, especially getting money out to those small businesses and businesses that can't get money from ppp, or get money in some of the other lending facilities here's what the treasury secretary said >> there are people who have said, you know, i should price this so that, you know, we lose all of our money, so that we support these markets.

the $450 billion are not grants. so they are money that i invest in these facilities to create credit support so i think it's pretty clear, if congress wanted me to lose all of the money, that money would have been designed as subsidies and grants, as opposed to credit support. >> now, the treasury secretary said he's not investing money like a pension fund or private equity fund. under somescenarios, the treasury could lose money, some it could make money, and others, it could break even. now, i asked a similar question of fed chair jay powell at the press conference yesterday >> we can do what we can do and we will do it to the absolute limit of those powers. we will keep at it and i just want people to know that we will be at it with the legal authorities that we have until we get through this thing. we will keep using our authorities. but there are authorities that we don't have and there may be a need for those authorities to be used, as well as ours.

>> so are they taking enough risk here's two programs compared both used $75 billion of equity from the treasury. the corporate -- the investment grade corporate bond program, that's leveraged 10-to-1, so it's 750 but the main street lending facility, even after being expanded today, that's leveraged only 8-to-1, and that's worth only $600 billion. and fed chair jay powell said yesterday, hey, if you can't pay this loan back, maybe it's not the facility for you they did expand it today secretary mnuchin has more money that he could maybe add to it. right now the debate is, are they taking enough risk with huge consequences for the outcome for the economy. >> at a time when people are looking for this, as the next big program to open, i just assume, one of the hallmarks of jay powell being at the fed ironically in this twist of history is that he's a good friend of the treasury secretaries in a time they need to coordinate very closely is there a bigger rift there than we might have expected.

>> i don't know, my reporting does not reveal necessarily a rift maybe some differences of opinion. maybe some questions about how all of this will be judged with the outcome. remember, hank paulisson, they were able to get a profit from the tapper is that the measure you should be looking for you should argue, kelly, that the treasury secretary did his job if the treasury loses all the money. not through fraud, but through trying his darnedest to get as much money out as he could other people, politically, may judge the treasury secretary this way that, hey, he got his money back that's really the nut of the question, as to whether or not there's some business owner out there that is or is not going to get a loan, bade on the risk that the treasury secretary decides to take through the taxpay taxpayer's money >> and now treasury has to figure out to look into this whole, extinguishing china's debt i imagine we haven't heard from them on that i imagine larry kudlow just denied it. we'll leave it there for now

steve, thank you, sir. good to see you. we appreciate it these unprecedented measures that the fed and treasury have taken have given it some life this month will these showers of trillions in april bring investing flowers in may joining me now is margy patel and jack, is the market telling us we're about to get better economic news even though we're in a deluge. >> i think it's interesting, because i actually think there's probably a little too much greed in the equity market now, but you've got still fear in the real economy and it's going to be interesting to see how that plays out. certainly, equities are telling you that we are going to start to see an uptick in economic activity but, you know, that's going to be yet to be determined, the time frame of that, and what degree we're going to see the uptick in the real economy >> what is your base case right

now? what do you think the market's pricing in >> i think the market is probably pricing in some version, maybe not a "v," but a "u" coming out of this and i think it's probably a little too aggressive. my view is that, hey, clearly we're going to get some type of uptick in economic activity, given that the economy basically stopped. but it's not going to be a "v," it's going to be -- we throw out a reverse "j" or something in that effect. we get a recovery, but now we'll have to have a more gradual uptick >> margy, it's interesting that everybody seems to have the same point of view. which is, i was just pointing out, the consensus thinks that the stock market is ahead of itself and the economy won't be as strong. you know, what if that consensus is wrong what if the stock market is right? >> i think the stock market right here is really driven by short-term, long trading oriented back and forth, a lot of big swings up and down, rather than the fundamental direction. and i think that really what we're going to see over the next few months is a market that goes up and down a lot and doesn't

really make any big advances or go down. what i look at what the fed has done is just provide a liquidity bridge from when the bottom fell out of most businesses, giving them liquidity to operate, until we come out on the other side of the coronavirus and we start to see the business community healing and then we'll be in a position to look for higher earnings, but that's several quarters away at this point. >> margi, that said, you guys are buying some of these junk bonds here that you think that offer appreciation and yields and are attractive right now this, as the fed has said that it will step in and support those aspects of the market without having launched anything major just yet >> well, i don't think you need anyone to really come into the high yield market. if you look at the top quarter, the top third of the high-yield market, those companies are in good shape they have a liquidate liquidity to operate, either positive cash flow or money on the books, to operate until their earnings

improve. and will be not bankruptcies risks at all, because they are fundamental go ahe fundamental good businesses. a lot of those bonds are trading at 90 cent on the dollar over the next 12 months, you could be looking at approaching double-digit rates of return that might be pretty attractive and pretty high competition against an equity market that is still sloshing around, not going anywhere >> and i guess implied in that is an economic recovery. margi, can you give any names or names that you wouldn't recommend the junk bonds in. >> well, i think rather than specific names, i would say that the weak sectors are still to be avoided. they aren't bargains even at these low prices, so we're avoiding retail and gaming, travel, anything in the energy space. we think the risk is much too high so we're not looking at that we're looking at industrials in the health care space, utility space, things like that, where there are growing concerns >> jack, i know it didn't look

like you liked any consensus comment, so i'll come back to you to respond >> hey, look at the bond market. you know, treasuries treasuries, the world is truly healing, which, you know, the equity markets are pricing that in i think treasury yields would be higher and they're not. i know the fed is buying them. they've cut back but i think the bond market is a more powerful signal than what equities are telling us. >> jack mcentire and margi patel, thank you both. shares of macy's, you just margi say she's avoiding junk retailers. macy's plan to have all the stores reopened in about six weeks. ceo jeff gennette giving an update and immediately hopped on the phone with our courtney reagan courtney joins me now with more of his comments. >> hi, there, kelly. macy's is planning to open 68 stores on may 4th. another 50 by may 11th and then in six to eight weeks, hopes to have the entire flee of the macy's, bloomingdales and

blue mercury stores open when i spoke with jeff gennette on the phone win asked him point-blank, will macy's survive this and he said, yes, i firmly believe that we have formats from offprice to luxury, a gamut of price points at a national level. i'm a 36-year veteran of this company, but i retain this optimism for our role in american retail. april online sales for macy's were better than expected. beauty, activewear, and home, including furniture among the strongest category gantt did say that macy's is working on secured finance iing possibly backed by retail. paula price said its quick actions have kept cash burns to not much at all. she didn't quantify the level, but said it was below gordon has ket's $40 million weekly estimate on average. now, gannete did tell me that macy's will emerge all of this

as a smaller company, that could mean more store closures, a smaller work face, he said the last thing i want to do is furlough workers, bring them back, and then ultimately have to lay them off. >> i'm curious what support they and others might receive from this expanded main street facility i know the national retail federation is very pleased with the details. they think more retailers will be able to benefit it by raising that employee cap to 15,000, $6 billion in revenue, maybe a company like macy's could be a beneficia beneficiary. what did he say about government support? >> i asked gennette directly do you think the government should do more to help companies like you in your position with more than 100,000 employees, but is also considered a fallen angel when you're looking at the debt standards he said, we've been actively involved with groups, was on the phone with secretary mnuchin, and secretary mnuchin will have more clarity in a couple of weeks about that $450 billion program. and macy's might eventually benefit from one of these

government programs, but gwyneth sa he said, i can't comment on that >> courtney, thanks. appreciate it. great reporting. the macy's share down about 5% now off the lows of the session. coming up, they've doled out $1 billion in ppp loan commitments to clients, include j junior's cheesecake. plus, as goes apple, so goes the market it's no exaggeration we'll show you why not as e th company gets set to report after the bell today stay with us

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welcome back to the exchange stifel beat on revenue, but reported an earnings miss this morning, the company is seeing record revenue in wealth management right now stifel has distributed about $1 billion of ppp loan commitments. all of this amid a pandemic that has dramatically reshaped ow the company works. 90% of employees is now working remote and the firm has expanded from eight primary desks to more than 200 separate locations. for medicine more on what the future of finance could look like post-coronavirus, let's welcome in ron kruszewski. welcome, ron >> how are you, kelly? >> pretty good, all things considered let me start with the most controversial thing here it's the ppp program you guys probably caught that you were name checked by junior's cheesecake when he was

explaining to us why he took the money but doesn't plan on paying workers yet in this whole thing a few weeksba back. he was very grateful that he could get the money at that point. what has the process been like for stifel and how does it fit or not fit the conversation. >> the ppp program was intended to get money into the economy and into hands of companies like junior's cheesecake. there was some confusion about when he was going to use it, but their stores were closed and it was very important to do it. i think the ppp program has been effective. there are cases where people got the money that really don't need it and i think you all have done a good job of reporting on this and that will come with forgimpfo forgivenefore forgivene forgiveness. if you took it and don't really need it, don't ask for forgiveness. >> in other words, just pay the money back, which is the other

piece of the program what is the guidance for your employees, what is the underwriting process look like do you worry you'll end up on the hook for any of this money talk through those considerations >> i think, first of all, we worked in a joint venture with someone. but regardless, we followed the guidelines the borrowers, it was on the borrowers to basically certify that they need it and was up to the banks to process it. i don't feel that's the case i think the issue here wasn't going to be whether or not someone got a 1% loan. the issue is going to be who actually got it forgiven i'll stay with that and hope that we come up with some rules and guidelines to make sure that people that really need it are also the ones that are getting it forgiven. >> and we're also seeing the fed come out with some innovative, different ideas as it prepares to roll out the main street

funds. i want to ask you about something of personal interest what is the place of the workplace going to have. whether the landscape of dillbert is making a comeback. we had the ceo say, he doesn't think there are going to be 700,000 people in a business is there actually going to be a capex boom as companies have to reshape their workplaces >> certainly, there are going to be some changes. i still think we have to get back, i want to get back to this, but we have to come back to what were the actual numbers on this pandemic because you can make the argument that there won't be buildings anymore but new york was literally built on the subway system if new york can't move the people in mass transit, then are we going to have new yorks anymore? now you can take that down to

buildings and offices and everywhere else. so i'm not ready to write off buildings as yet we're working 90% remotely and it works now but i will tell you, there's a lot of culture and a lot of creativity that comes when people are together. >> i take your point that five to ten years out, we shouldn't still be making decisions based on coronavirus, but in the meantime, you have to decide, even on liability, when people coming back to work, what does that workplace look like what are your thoughts there >> there's huge challenges we want to keep our people safe. at some point, people will come back to work it's not only the coronavirus, but maybe the next pandemic whatever it is but let me pivot for a second. i hear about all of this stuff being done on the back end what about all of these controls on the back end that we're doing to support the economy

i live in st. louis and i want people to start focusing on this and that is the big headlines in st. louis this week was that our third largest health care system furloughed 2,000 employees and i don't hear anyone really talking about the fact that one of the businesses that are being the most impacted here and the businesses that are frankly going bankrupt are our hospitals. i'm also willing to bet that you're going to be reading across the country health care workers let go, while on the other hand we're talking about not getting back together because we don't want to overwhelm our health care system >> so you're saying, in other words, the emphasis right now on, hey, ron, what's the future of the city going to look like is ignoring the fact that these hospitals are going under right now. what do you think should be done in order to support that you know, we've seen these hang

ups in congress. is that the best means forward the best move forward is to get some testing, let it get back into the private sector, so the people that -- as you said, the department stores or the restaurants can do what they need to do to get the consumer ba back it isn't about what government is going to do we have to be finding ways to get people comfortable, to come back to work people comfortable to go to restaurants. frankly, we've got to get people comfortable to go to their own hospital, which they're not going to right now and that is the issue. we've created a scenario where there are sharks in the water and everyone is afraid and we need to bring that back as we get more information i'm not trying to downplay this, but we better be looking at the real issue >> so you're going full elon musk here, or just a partial --

>> i'm just kidding. >> well, look, i believe that the economy -- if you tell me that we're going to have restaurants be at 25% capacity for the next year, my prediction is that every restaurant will go broke. you can't do that. so this is an issue on the front end about how we get people comfortable. we need to restart the economy and keep people safe, but we cannot be continually looking at what the fed is going to do to prop up an economy that is not the long-term answer >> fair enough ron, come back anytime we'll talk more about what that path forward will look like. we'll appreciate it today. thank you, sir ron kruszewski is the ceo of st. louis-based stifel financial coming up, two big reports after the bell today, apple and amazon will amazon top expectations plus, 30 million people have filed for unemployment in the

past six weeks and states are quickly burning through their funds. we're going to look at what they're doing next and you can always watch or listen to usiv le on the go on the cnbc app we're back in two minutes. for nearly 100 years, we've worked to provide you with the financial strength, stability, and online tools you need. and now it's no different. because helping you through this crisis is what we're made for.

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online tuition rates in the nation. find your degree at snhu.edu. welcome back now to the very latest in the coronavirus pandemic over to sue herrera for the headlines. sue? >> thank you very much, kelly. good afternoon, everyone here's what we know at this hour uk prime minister boris johnson says his country is passed the peak of the coronavirus cases and on a downward slope. he will announce a plan next week to ease lockdowns new york city's subways will shut down for four hours overnight, so that cars can be disinfected. a growing homeless population has been crowding the trains the "usns comfort" is leaving new york city today, one month after it arrived to help relieve hospitals. the 1,000-bed ship treated about 180 people and discharged its last patient on sunday

it was great to have them here as always, for more coronavirus coverage, head to cnbc.com kelly, back to you >> sue, thank you so much. sue herrera. 30 million people are suddenly out of work and on unemployment, but states have been quickly burning through their unemployment reserves. and now they're turning to the federal government for a lifeline rahel solomon joins me now with the latest on those efforts. rahel? >> reporter: hi, kelly from new york to california, states are quickly realizing that they're running out of money. in fact, california now becoming the first to tap into the federal unemployment trust fund, requesting $348 million, although, federal data shows that they could request up to $2 billion. new york officials saying there that they've requested a $4 billion loan massachusetts, 900 million in may, $300 million in june. illinois, $1.2 billion connecticut, $180 million. so california now becoming the first to withdrawal those funds. wayne roman at the urban institute tells me that he expects ohio, massachusetts, and

new york will also withdraw before july 1st. although michelle evermore of the national employment law project tells me no matter how positioned a state was prior to coronavirus, they will all likely need to tap into these funds, because the demand is just so great. >> and we're seeing it grow by the week, rahel. thanks as the pandemic grips some of the nation's largest cities, some residents have had enough and are already leaving for good diana olick joins me now with the story of one new yorker's very difficult choice. diana? >> reporter: yeah, kelly, lindsay marvel moved to new york because in her words, you go big or you go home well, she's going home to tulsa, oklahoma she had turned down a program last year called tulsa remote that pays professionals to relocate there last week, she changed her mind. >> has so much to offer. and so i decided not to do it. and then, of course, covid-19 happened, brooklyn and it became

a really scary place to be i found that, you know, my rent was still the same and, you know, what am i paying for everything is closed i mean, i was living in complete fear and i'm realizing that even more so now, that i'm away, as i was driving away from the city, i just felt this overwhelming relief i mean, i was just so tense and scared i mean, my neighbor died, who was always, you know, telling my dog hi i mean, friends were seeing body bags from their windows. you know, and you're just in this survival mode and i just -- i just was terrified. >> reporter: now, interestingly, tulsa remote says applications for their program have doubled in the last month. if you want to hear more from lindsay, it's up on cnbc.com back to you, kelly >> we've play it, diana, in my neighborhood, my neighbors put their house for sale just before the shutdowns hit, had only one offer and not as much interest as they've expected. just in the last two weeks, even with virtual open houses and people barely able to get a walk-through, the offers are

pouring in, they have cash buyers from nearby cities like hoboken and new york and i've been very surprised at how quickly that's turned. >> reporter: yeah,people just want to get out. they're afraid and mostly, they just don't know when it's going to end and when you're paying super high rent for a new york city that is not open, you start to think about leaving. >> it's true diana, thanks. diana olick in washington for us today. coming up, a bold move from the small business administration has the lending community up in arms we have the details, ahead and shares of tesla are jumping after posting an unexpected profit and better than expected revenue, but they can't hold on to their kbgains. they just turned negative, about 1% and it was the earnings call in particular, as always, that's getting buzz elon musk shared his strong view on the four shutdowns that are causing all of this uncertainty. >> the extensionof the shelter in place or, frankly, i would call it, forcibly imprisoning people in their home against all

their constitutional rights, is my opinion, and breaking people's freedoms in ways that are horrible and wrong and not why people came to america or built this country what the [ bleep ] excuse me. outrage. outrage. so -- ♪ ♪ ♪

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welcome back to "the exchange." just showed you before the break how shares of tesla had turned negative we're ending the month with a strong month, but with red across the board dow is down 333. all 11 sectors are lower with energy, financials, materials leading the declines within the dow, american

express, raytheon, chevron, and disney are the big laggards. and we want to mention shares of apple. it's trading higher today, bucking the trend after we await the quarterly report after the bell even if you don't own shares directly, apple has huge implications for the overall market and earnings season let's get over to dom chu. >> there's a reason why you have to care a lot about apple if you're invested in the stock market in any way, shape, or form especially when it comes to index investing. apple versus the s&p 500 on a one-year basis, apple far outperforming what's been happening with the overall sp&p but take a look at the biggest biggest company in the world behind only microsoft. that's the reason why, within the s&p, microsoft has a 5.5% weighting. apple, a nearly 5% weighting it reports earnings after the bell and amazon, 4%, alphabet, 3% the most important stock to the market-weighted s&p 500. take a look at other parts of

the market you could be invested in the qqq, it's an 11% weighting. in the tech sector spider, ticker xlk, it's nearly 20% of the weighting there. and right now an 8% weighting in the dow. it's jockeying with united health care as the most important stock from a point perspective there. and one more thing to note analysts at refintive currently forecast that the s&p 500 will earn, in terms of earnings per share, $13 t2 and change for full-year eps. of that, analysts say that $12.40 are expected to come from apple alone, meaning that, kelly, 9% of total s&p 500 earnings are just because of apple. that's the reason why everyone's paying such close attention to the earnings report after the bell today back over to you >> that was fascinating. i thought they knew they were important, but not that important. they are 20% of the tech etf >> that's spyder, it's a 19.5%

weighting there. so even if you didn't think that you really owned apple outright, if you own any of these index funds or communication services or tech etfs, that sort of thing, apple plays a huge part in many of those, especially when it comes to stats >> and apple did warn investors a to the beginning of this pandemic that things were going to be rough. they even pulled guidance. but states are starting to gradually reopen now so will that have apple singing a better tune tonight? let's bring in cnbc tech editor, steve kobach it's rapid fire time >> i miss it so much it's so good to see you. >> like that around the horn thing. get the screens going. >> i know. >> one day soon, i hope. >> yes we'll try something, i promise so on the issue of apple, they're all so pessimistic, aren't they? is tonight going to be any different? >> i think what we've really got to look at is the pressure on apple, because we had these knockout earnings reports from facebook and microsoft and alphabet already this week, and so the pressure is on for apple

to show that it can perform just as well during this pandemic as these other big tech companies and on top of that, china -- the china exposure is a big story that you have to pay attention to apple was showing a lot of recovery signs there over the last couple of quarters, after whiffing about a year ago. and now with all the store closings in china and the production issues, where all their iphones and other products are made, that's going to be the real thing to look can they hang on to those gains that they were clawing back at in china over the last couple of quarters >> it's a great point. and is china going to be -- when we hear steve bannon this morning talking about, you know, holding china responsible for coronavirus, when we have reports since denied on the "washington post" about, you know, using our debt as a weapon against them, you wonder, is apple too reliant on china >> yeah, it's a huge part of their annual revenue -- or their quarterly revenue. and with stores -- it's

startinging to open back up. this is the test bed in china for apple, when they open back up it will be interesting to hear on the call if they put forward a plan for reopening the apple stores here in the united states and elsewhere in europe and other countries that got affected later than china. and on top of that, just the whole economic downturn has these questions about the price of apple products. you know, these $1,000 iphones at the top tier, but what i noticed was, apple has these cheaper suite of products that are really appealing and just as good last week, they launched the iphone sc, which starts at 400 bucks, and it's just as good as the $1,000 iphone 11 pro staz smaller screen, but the internal components, it performs just as well as the top-tier iphones. those could be attractive things to continue to induce iphone sales even as we experience this economic downturn. >> the president said he spoke with tim cook a week or so back

and cook himself expected a "v"-shaped recovery, which i wonder if is true, because that would put him in the minority of people i wonder if their guidance reflects that point of view. >> or even if they have guidance in february, when they did that initial warning. we all know that apple spends so much money on share buybacks will it do what google and alphabet did earlier this week and say, we'll continue that they have plenty of cash on hand to continue it they're continuing to pay their workers, they're not laying people off, so they might have a little bit of a buffer there so say, hey, we're going to go ahead with these massive share buybacks anyway, even though the environment is kind of against them there's a lot of criticism around that. >> so the quarter, the expectation is 6% drop in revenue, 11% drop in earnings. any other specifics you're going to be looking at, price points or unit -- types of sales, things like that this afternoon? >> yeah, the -- well, back to china.

china, china, china is going to be the big one to look at, because they had the virus earlier than us, the shutdown was earlier than us, and that's a huge exposure there for apple. that's going to be the thing i'm watching for the most. and on top of that, any kind of plans about reopening their retail stores outside of china will be a big deal and looking forward down to the fall, you have to start thinking about the next round of iphones. we already heard that report in the "wall street journal" a few days ago that they're going to ramp up production about a month later than usual, and that could be -- that could mean they're thinking demand is not going to be as high for these expensive phones and they'll be promoting those cheaper products instead >> the ili ead. amy poehler. all right, amy schumer >> good to see you up next, the sva making a

bold move to get small businesses access to ppp funds we'll get the latest on this polarizing decision and tell you what people are saying about it. coming up, we'll speak with a company who makes key parts for ventilators and saying they're getting hit not just by the pandemic, but with the ongoing trade war with china the exchange will be right back. ♪they took my heart away ♪but i'll be okay, 'cause♪ ♪in my dream world ♪i'm still your dream girl ♪ooh, i'm still your dream girl♪ ♪ooh ♪

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find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. welcome back the sba's decision to create that eight-hour window for small lenders last night has created a stir over potential loan prioritization kate rogers is here with more on that >> hi, kelly some in the banking community are asking why this was necessary and how this is even allowed. remember, the program is first-comed, first-served and here the administration is being accused of tipping the scale with that reservation window the sba and treasury said it would enhance the system for all and ensures access for smaller lenders and their customers. did smaller lenders actually need this help the most recent data from the sba show that the vast majority

of loans approved so far in this round have been by smaller lend lenders. of the 960,000 loans approved through yesterday evening, nearly 80% were from lenders under $50 billion in assets. we've reached out sba repeatedly for clarification upon why this was done beyond just easing up the e-tran system. investors are saying they're seeing some relief, but accuse the sba of playing favorites at small business customers who bank with large lenders. and it's safe to say that the clock is ticking here with more than $90 billion already spoken for, about a third of this program's funding, businesses we know, kelly, will want answers >> i wonder, kate, if that's why jpmorgan came out this morning and said, hey, this is the proportion i forget the numbers exactly they said a lot of their loans were going to small businesses i think, probably, to emphasize that it's not just like they're lending to the biggest companies. >> that's exactly right. and you know, we've been talking about this, and if it's perhaps an overcorrection, because a lot of the attention in the first round of funding, while small businesses did get money, we've been talking about the shake

shacks and lakers of the world who wound up getting access to this program could it be an overcorrection? remains to be seen but i have seen some talk amongst some of my twitter followers who are saying, if you want to do this right, limit it by loan size, not bank size. because that would ensure that true small business customers are getting this, but the bigger question is, does that even allow it at all? it's first come, first serve these businesses are eligible. these vendors are eligible who's decision is this >> it's been messy, to say the least. my next guest is a small business maker of speakers, including speakers for ventilators used in this pandemic the ceo has received ppp funds, but is very concerned about what happens to american businesses after june 30th. joining me is the ceo of misco speakers good to have you here. >> great to have you here, kelly. >> can you clarify what your speakers do with regard to ventilators? i haven't heard of that? >> in all medical equipment, there's some type of an alarm. we make speakers for patient

diagnostic equipment, ultrasounds, and for ventilators, they're used as an alarm speaker. and misco is the only u.s. company that builds ventilator alarm speakers in the united states >> wow so how has that affected your business i imagine demand for your components is as high as demand for ventilators, or at least was at a period of time. and what did you -- how did you find the ppp process how has that helped your business, if it has? >> well, the ppp process has been huge for us it started off a little rough. we're a small company, 70 employees. and we bank with a large bank. and we had all of our documentation ready. we were ready to go on the friday, but the bank runt ready. and they weren't ready over the weekend, and finally on monday, we sent out an email saying, we're sorry, we're only processing nonprofits and companies with under 50 employees. you'll have to look elsewhere.

we thought, what are we going to do so fortunately, our cfo had a relationship with a community bank we met with a community bank via remote on monday afternoon, submitted all of our documents on tuesday morning, and by tuesday afternoon, we had an sba loan number and were fully approved so we got approved very, very quickly. i think part of it was being prepared and part of it was being a little lucky in finding the right bank >> absolutely. and you have about 70 employees, so i can see what i that 50-employee cap would have been a problem. you said one of the big sort of double whammies you're facing is not just the shutdown of coronavirus, the effect on consumer demand, but the fact that your components were already facing, is it, price hikes because of the tariff war with china >> yeah, our -- we have to bring in the components that we use to build the speakers for the ventilators on what's called list 3a and this is part of the section 301 trade action against china.

we pay 25% tariff, a tax on all of those parts that come into the united states to build product here in the united states so whereas our customers who may also supply speakers for ventilators build their speakers in china or some other some other place in asia they build in china they pay only a 7.5% tariff and if they build it somewhere else, they don't pay anything we now have cash flow problem. right now cash is king businesses are really -- that's the beauty of the ppp loan is it's forgivable. now, on one hand we're severiren funds from the ppp and on the other we're paying out mass iiv amounts of tariffs o kto customn border control >> maybe a waiver would free up cash if you source your parts in china and import them to make

the product here, you pay a 25% tariff if somebody pulled the whole thing in from china, it's 7.5% would you ever be able to make those components here in america? >> it takes time the thing with medical devices is once a product is approved changes happen very slowly through a regulation process it's not a fast process to go through. eventually, it could be done but it would take a long time. right now, the company's making ventilators really don't want to be dealing with changes and things like that they want to ramp up they want to produce these as quickly as possible and we want to do that as well >> before you go, you were pleased you were able to receive the ppp funds. they helped yourconcerned aboutt happens after june 30 because that's when the money runs out >> right what happens to all of us who have been given h shthis shot of

liquidity through the end of june, what if the economy doesn't come back after that i'm concerned not just for my business but i'm concerned for our entire supply chain and a lot of businesses in united states of what happens after june 30th. >> i'm going to leave it there with that question hanging in the air so people can feel the gravity of it. dan, thanks for being here >> my pleasure, kelly. thank you. still ahead, look the shares of amazon are still hanging onto a 1.5% gain here we'll get you the key numbers to listen for in that report, next. shares of mcdonald's are trading lower after reporting mixed results. they suspended their boy bauybak program. the ceo acknowledging consumer behavior will not be the same after this pandemic. he says mcdomgnald's is ready. >> i think digital and maybe the

ability to go to curb side which we have across most of our major markets. i think you'll see those grow as consumers come out of this there's going to be a change in how con stsumers go about their daily lives. turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪

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welcome back it's not just apple. amazon is on deck with earnings. the company has been a stand out as demand for delivered goods has soared the stock is up 29% in the past months we have the dee thikey things is are looking for. >> the key question for amazon is the bottom line

they are expecting to surge amid the pandemic but at what cost. consider the costs wage increases 170,000 workers have being added. they need new equipment and procedures to monitor and manage staff safely to that point, earnings estimates are all over the place. eps ranging from $4.68 to $7.82. on the other hand, keep in mind that it wasn't so long ago that amazon wasn't even turning a consistent profit. few liked to bet against bezos strong revenue numbers may be enough to keep the rally going shares are up 30% and amazon still firmly if that trillion dollar club. >> since we have you here, yesterday we talked a debate about the sharing economy and how well it would be able to weather coronavirus. today more news, not very good news on that front >> hits keep coming.

lyme announcing it's laying off 13% of its staff and it comes on top of earlier cuts. the ceo talks about going from a next generation micromobility start up that was on its way to profitability to halting operations in 99% of its markets worldwide. we talked about soft bank and the king maker for the shared economy with his hands in so many different companies i want has put out its earnings expectations a few weeks ago warning it was on track for its worst annual performance in the company's history. just over the last 24 hours saying that wework losses will make that performance even worse than they initially expected those earnings are coming up in mid-may, may 14th. back to you. >> watch out for the grisly zzly behind you that does it for me. i'm join tyler mathison next

hour ryan lance will join us to tell us what's going on in the oil patch. the ceo of dunkin will tell us what the future of his ate aurant looks like as mor stes reopen. it's all ahead with power lunch after this quick break say hi. ♪ a pandemic has the possibility of bringing us together in ways none of us would have been able to expect. ♪ i'm so small said the mole. yes said the boy, but you make a huge difference. ♪ ♪

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good afternoon welcome to "power lunch. welcome to the kitchen our breaking news coverage continues. stocks are under pressure as we close out april. the dow down sharply today the s&p still on track for its best month since way back in 1987 that is despite brutal news on jobs 13 million