it is 5:00 in washington, d.c. your "top five @5. you may want to take a seat for this one so says jeff bezos and share holders selling stock. this morning, apple pulling guidance calling right now the most challenging environment it has ever operated in the ceo does say there is hope

the department of justice reportedly now taking a closer look at potential fraud. boeing saying, no thank you to the government bailout taking matters into its own hands it is friday, may 1, 2020, here on cnbc. >> good morning, good afternoon, good evening and welcome i'm brian sullivan thank you for joining us on this friday and applicant's 427 days are now over it is may 1 but stocks are looking weak to start the month. futures are off sharply 450 on the dow as president trump threatened new tariffs on china partly because of the retaliation on the coronavirus pandemic and what he views as

misinformation all of this as the s&p and the dow closed out their best month in 33 years. the nasdaq, their best in 20 shares of apple are under pressure this friday seeing weak iphone sales around the pandemic but services did surge as everybody is sitting on the cloud. ceo tim cook pulling apple's guidance saying, quote, he has great confidence in the long-term business for apple in the short term, it is hard to see out the windshield and knowing what the next 60 days will look like then there is amazon as we all remain stuck at home and it is the outlook that is hurting stock this morning up 5% company saying if you are an amazon share hoerld, you may need to take a seat on this one.

they plan to spend all of the second quarter profit to its response to the pandemic that stock down. in asia, stocks falling in japan. also in australia, we saw some falling. the markets were closed. also the case of course in france, germany, spain all closed for the holiday it is open and down about 2% topping your washington headlines. new outrage over the small business program known as the ppp. bloomberg knows that the justice department has seen early signs of fraud where it has approved and rejected applications. kate rogers has the story. >> the report says the doj has reached out to the 15 to 20 largest processors and as well

as the sba we have not yet got a comment back so far, there haven't been any public reports of fraud. this is after one of the programs was met with criticis when businesses like shake shack and sports programs such as the lakers were able to access the ppp. now both of those companies have returned their loans the new process is shorter and more stream lined. a two-page application the borrower has to make a certification in good faith that the current economic conditions right now make this necessary. and the 7 a funding requirements exhausting other sources and saying hedge funds and others

may not apply. this comes after the banking community was divided with regard to the banking window for those with under $1 billion in assets to ensure e tran was running more smoothly and to make sure smaller businesses could access aid the idea that this tips the hand to certain businesses when in reality all businesses of all sizes borrow are banks of all sizes. it is unclear why that concern >> are we talking about fraud on borrower's parts lying about the need for the money, the transactions, the forms? >> it is not yet clear

it seems the emphasis here is really the doj honing in the sba declined to comment. a lot of the pressure is on the borrower to make that indication in good faith. we heard them say loans above $2 million will be audited. they put out the guidance saying you could return this money by may 7 and take into consideration if you are a larger company that you don't have access to more elsewhere and that this made the loan necessary. guidance coming out after the fact is to clear up some of the things that may have gotten through in round one but the guidance does apply to round one and round two. that is important. >> it is an important program. we appreciate you joining us we'll see you and have a good one. thank you. let's get back to your

markets and your money so far, about 47% or 236 of the s&p 500 have reported their numbers. of those roughly two-thirds on the upside 90 companies have issued profit warnings on revenues, sales. analysts expect s&p 500 earnings will drop by about 14% those sound like tough numbers we are coming off the best month for stocks since 1987. let's bring in portfolio manager from washington crossing you heard the earnings numbers, the guidance, if we get it pretty dismal. the majority of the country still on lockdown. people talking about this pandemic lasting quarters, if not, up to two years

and yet having the best month since 1987 >> caller: the markets reacting to the reaction, also fiscal stimulus on the globe and on the table that has evolved in risk taking that has really shored up the credit markets you had the mechanism for credit ease up, hence one of the reasons you had such a violent move to the down side. the markets have readjusted higher >> are you surprised by how violent the snap back has been >> a bit surprised overall, if you are a trader, you had to play catch up if you are an investor and you look at two to three years and you know we've always been

cautious and tempered with our message, we would be buyers buying higher quality companies. the likes of these like home depot and nike companies that don't have a lot of debt on their balance sheet and have a tremendous amount of predictable free cash flow that goes out to year three and four. the price equity based on the earnings out to years two, three and four they are not pricing their valuations or company's price target off of what is happening in this quarter or next. >> nike mentioned they are greatly exposed to china and that economy is far from normal. i'm surprised that is on your watch, chad? >> caller: yeah, we own it

valuation has become more attractive what nike has done, they've been able to pivot to more of an online mode of delivery. that in it self, it operated on higher operating margins in 2022 and 2023 we do believe the pandemic is extremely serious and will have an impact into 2020. we are hoping that the economic activity will start to accelerate and pick up into q 3 and q 4 and the global economy will start to get into a modest growth trend hence the reason why we are

recommending investors look a little further out >> got to look out these days here chad morganlander. best to you and yours. have a good weekend. when we come back on "worldwide exchange," boeing shunning a handout from the federal government and more from gilead's virus fighting drug and find out what corporate insiders are the most bullish on their own stocks right now including one big restaurant chain seeing huge insider buying, all as texas plans to reopen their restaurants partly beginning day. a busy hour ahead. we are back after this

there are times when our need to connect really matters. to keep customers and employees in the know. to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us.

welcome back after seeing positive results around its remdesivir drug, new comments from gilead about getting the drug out to as many people as fast as possible getting to those top headlines with frank holland >> gilead said it will work with international partners to produce remdesivir next year they expect to produce 140,000

rounds of the 10-day treatment by the end of may and anticipate it can make a million by the end of the year. amgen plans to test its drug otezla as well >> boeing raised $25 billion the number that says it will avoid taking government aid. the capital raised is the sixth largest bond offering of all time wells fargo, one of the largest home lenders says it will no longer accept applications for home equity lines of credit. chase also said it was dropping lines of credit and tightening conditions for which it will

accept new mortgages >> on deck, would you buy a new car right now? we'll speak to the ceo of one of the largest car dealership chains and get his idea on the economic crisis. >> announcer: today's big number 12.7%. that is how much the s&p 500 gained in the month of april the index's best month since january 1987 ♪ i came across sofi and it was the best decision of my life. i feel cared about as a member. we're getting a super competitive interest rate on our money. we're able to invest through the same exact platform. i really liked that they didn't have any hidden or extra fees. ♪ sofi has brought me peace of mind.

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it is friday, may 1. stocks came off their best month since 1987 dow futures now down 460 as the president threatens tariffs on china. keep an eye on these going forward. that's the macro market. let's check on some individual stocks to pay attention to wow western digital taking a hit, down 11% after third quarter earnings missed forecast and lower than expected guidance western digital saying the demand for desk top weak

also hurting the company's sales. in the meantime, visa beats with growth visa cfo says all the growth is coming from online spending. no surprise there. which doubled in the last two weeks of april >> united airlines posts a narrower than expected loss with the biggest crisis in aviation history. at about 96 million at the end of april but it expects to burn about 40 to $45 many illillion h

>> talking some other top headlines including some planned strikes of companies from target, instacart and amazon >> new york city is shutting the subways down overnight to help battle the spread. the cloerzs will start may 6 and continue during the pandemic closed from 1:00 a.m. to 5:00 a.m. this comes as homeless people have been found sleeping in cars meeting with bond investors as they consider borrowing funds from the federal reserve to stay up and running employees from some of the largest retailers are planning to go on strike to protest

inadequate work place protection the companies have failed them during these unprecedented times. >> the number of coronavirus cases more than doubled in a few days at a colorado meat packing plant a week after opening its doors after two weeks of closures the number of new cases spiked to 225 on wednesday from 120 on sunday the u.s. air force band led a collaboration with a military band from several locations to perform the historic song "i'll be seeing you. marking the celebration of international jazz day >> military bands, blue angel fly overs. it feels like 40 years ago >> we all kind of need it. >> we need anything. we need anything with he can

get. take care. still ahead, new numbers out tallying up some of the public health costs we are seeing right now. the numbers are nothing short of staggering who knows more about companies than their own insiders. an exclusive list of what c suito suiters are buying their own stock. all as texas begins reopening starting today we are back on "worldwide exchange" after this it's a challenging market.

edward jones is well aware of that. which is why we're ready to listen. and ready to help you find opportunity. so. let's talk. edward jones. it's time for investing to feel individual.

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stocks are set to sink at the open as big tech takes a sink dow numbers are down nearly 500 points amazon warning share holders that they should take a seat as they say what they plan to do with their cash. and is anybody buying cars right now? one sector hit especially hard it is friday, may 1. you are watching "worldwide exchange" on cnbc. good friday morning. welcome back it is 5:26 dow numbers down 460 points as

we are about half way through the 5:00 hour. the president threatening new tariffs on china for punishment or retaliation on what he views is their role in the pandemic. he believes part of this may have come from a lab in wuhan. stock futures are down 466 after the major averages coming off their best month in 33 years the nasdaq with its best month coming off their biggest month since 2000 seeing weak i foerch sales globally ceo tim cook pulling in with other companies pulling in guidance saying he has great confidence in the long continue term confidence of apple's business in the short term, it's hard to see out the win shield to see

what the next 60 days looks like amazon seeing a surge in sales the outlook of their money hitting stocks this morning. if you are, quote, a share holder in amazon, you may want to take a seat the company plans to spend all the second quarter profit estimated at around $4 billion on its response to the pandemic. beefing up tests for workers and boosting wages, more investment in health/safety gear. good for the company but they don't like it. stock is down. it is may 1. a much-needed holiday around most of the world, except us of course socgen shares yesterday taking a hit but the uk markets are open and lower to start their month

as well. we'll get the key headlines with julianna tatelbaum in london >> thank you, brian. we are working alongside you here in the uk most european markets are closed today. we are seeing some red on the board this morning the ftse 100 trading lower adding to the losses the benchmark broader dropping about 3.5% the majority of stocks are trading lower. rbs is a key outperformer. shares are higher today. we've heard results better than expected they put aside about 800 million pounds as loss against the pandemic these shares down about 7.9% after shell historically cut its dividend for the first time since the 1940s. no doubt, the prospect of tension between beijing and the

u.s. weighing here we had a chance to ask the european commissioner about whether she would support an investigation into the origin of the coronavirus. >> we know we need a more robust data system for such situations as we see right now with the coronavirus and for building up a system that is -- that you can count on we need transparency we will have to work on that after the crisis >> interestingly, adding that she thinks china should participate and get involved in this participation all hands on deck. brian, back to you >> that investigation ramping up day by day, julianna tatelbaum, thank you. every friday, we'll bring

you a list of which company insiders are getting the most bullish on their own stocks. it comes from insider scorer.com and looking at how bullish every insider is at darden restaurants. 12 insiders bought 12.5 million worth of stock that is the most ever. halliburton making the biggest buy in 17 years. at&t are third they had $1.2 million worth of corporate insiders delta airlines amid all of the trouble there. and one director seeing value in buying up to $600,000 worth of shares and holdings there those are the

top companies seeing the most insider buying this week insiders have been pretty spot on of the 15 stocks we have tracked in the last three weeks, they have the median gain of 15%. that is 3% more than the s&p 500 which had a 12% gain in april, the best month since 1987. back to washington and the developing story we are monitoring over the government's small business relief program. there are new reports this morning that the justice department is starting to see early starts of possible fraud has found issues with both approved and rejected applications the doj has reached out to small business association and the 15 to 20 business processors on the program with the focus on banks. they declined to comment and the doj did not return a request for comments as a new survey sheds

light on the cost of opening compared to the true health care costs. we have more on that side of the story. good morning >> good morning. officials are facing really tough math how many jobs can they save by reopening the economy versus how many lives could they be putting at risk. a new model tries to quantify that tradeoff. the numbers are staggering in both directions. the base-line is that nothing changes. remaining on lockdown and social distancing in that case, the death toll would reach 117,000 through the end of june. but the number of jobs lost would reach 18.6 million in may and june alone on the other hand, if we were to flip that switch and everything were to go back to normal and

the economy opens and people start going back to restaurants, the model predicts that the economy would create 4 million jobs in may and june but the death toll would reach more than 950,000. one of the other interesting pieces is that the biggest x factor actually isn't the decisions being made by state governors or people inside the administration what really tips the scale of this being a public health crisis are the individual decisions. the personal behaviors that we all change or decide to do in our daily lives. that could double or triple the death toll >> that really highlights the impossible decisions that our leaders, state, local, federal have to make these are not decisions where

there is any kind of a clear outcome. th >> this is only going through the end of the summer. folks who put together this model wanted to look to the end of the year but everything is so fluid. it is hard to predict what could happen into 2020 there is a wide variation as well depending on where the states are in the flattening of the curve. a lot of variability on the level. you start to see the stark difference of what could happen in the economy and to public health >> we are starting to see georgia reopen, texas restaurants reopen even though it is at 25% capacity. we are seeing almost an economic and health care experiment going

on ylan, thank you and the best to you and your family. we know you went through a tough time we are glad to see you doing so well >> thank you, brian. back to the markets and your man. apple and amazon apple pulling its guidance saying it can't see past the windshield on business for the next couple of months. amazon saying it is going to devote all second quarter profit, estimated $4 billion, to deal with the pandemic joining us now, tim lesko he is a share holder in both companies. amazon taking all of its profit devoted to the pandemic response these are good things but as a share holder, are you happy with

it >> i think amazon has been investing to the long term for a long time. at some point, that will turn into earnings and investment at some point, we'll look to that to be a dividend pay or buy back we have no problem with amazon investing in the business at about half of the cost that they outlined in investments that will lead to the better business and about half of the costs related to covid-19 that will go away >> i've been doing this since the day amazon went public like you said, we'll wait for profits tomorrow that has been going on since that day and has never mattered. has amazon effectively turned into a utility >> probably better than a utility. nobody is controlling their margin they are holding it back in order to try and grow.

at some point, the governoring factor may end up being the anti-trust issues. covid-19 has been basically a gift to amazon teaching people who previously weren't shopping on line to shop on line and consume content over the top. they should be gaining shares through this >> what about apple. saying, quote, they can't see through the windshield there is tim cook's alabama speech there he has no idea what is going to happen over the next couple of months but that doesn't matter. >> i don't think anybody is really buying apple but that was the expectation going into the new iphones going into the fall. we didn't have high expectations about iphone sales this fall

anyway the numbers were surprising in that they were stronger than expected the colorful met he for of not being able to see through the windshield is tim cook speak he has amazing credibility with the public and investment public not concerned about apple. looking forward to seeing upgrades to the operating system as we look forward to 2021 >> both companies are down now but we are investing for the long term. back to you. >> thank you >> coming up, a little good news to start the month one of america's largest auto dealers seeing some sign of a turn for the economy that is ahead. first, check out shares of moderna. one of the leading companies trying to develop experimental

vaccines entering into a partnership with lonza, aimed at producing up to 1 million doses per year that interview happening right before we speak to the ceo of maybe the hottest stock out there for a lot of reasons, gilead sciences. dow futures are not hot. they are down 460 and we are back after this. high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. pure protein. the best combination to help you stay fit. high protein. low sugar.

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welcome back if you were just joining us. coming off the best month. futures have a different story the president threatening a new round of tariffs over china over what he believes is china's role of the outbreak and the possible coverup of the origins of the virus. dow futures are down 450 points after what has been a 60% retracement off the lows just since early march. we are going to keep a close eye on the futures there coming as a growing list of states including texas, ohio and illinois are slowly beginning to reopen economies today the question is whether a skiddish public will come out and spend their money. >> again, we start with airline

news delta, american and united are the latest to require face coverings and american will issue sanitizing wipes j. crew is preparing a bankruptcy filing. the clothing company is working to secure $400 million in financing to fund operations in bankruptcy the retailer has been struggling under heavy debt load. racing is returning. nascar announced two events on may 15 two of which will take place at darlington speed way none of those will allow fans. they say rubbing is operation nowadays as long as it is not rubbing shoulders. >> 517 a lucky number in my

life may 17, racing is coming back. it feels like things are getting the engine started up again. >> cautiously optimistic >> great thank, thank you speaking of cars, have you bought a new car or truck lately even with the lockdowns. cars are being sold. volumes are expected to be way off. we wanted to figure out exactly how much the industry has been affected to do that, you don't look at data, you go to the source we range up the ceo of lithia motors one of the largest auto chains in the united states with 170 dealerships across the country i asked a simple question, how are sales doing right now?

>> i think most importantly, we are siege some improvements which is great the first part of the year up until about the 15th of march was wonderful. we were rolling with sales upward of midteens, which was great to see then the middle of march hit and we started to see some declines in sales really bottoming out in the 50% area we are climbing back up in the latter part of april with everything we are looking at is driven off the shelter in place and stay-at-home orders. as those are being relaxed, it is nice to see consumers returning back to normal lives and sales picking back up. >> this is fascinating for our audience especially here on the

east coast in the new york/new jersey area, we have been walluped here. have you seeing people still go to dealerships how has behavior changed what steps are you taking to make people comfortable? >> we are, brian we are following the cdc standards to make sure things are nice and tidy. we are converting interaction to home pickup and delivery so they are not worried about germs. i think as we move back through this especially in new jersey and new york where things have been a lot more difficult than the rest of the country in a lot of different cases

appointment sales in the sales department and we can do digital sales which for a while we weren't even able to do that >> test drives, i assume just family members, sales person not going with them? >> yes we do contact less test drives we have a basic philosophy as an organization that we go to whenever, however, wherever the customer desires that is kind of how lithia has been built even in the met poropolitan are where there are higher incidents of covid-19, we have been able to provide services the way that they choose. >> you know, there are 30

million unemployed it is an extremely difficult time but if you are employed, and you need a car, now could be the time looking at some of the offers, 84-month, zero percent financing. there are deals to be add. the question, brian, is there financing to be had given that the fed has had to backstop all sorts of programs. there is the offer, could you get zero or 1% unless you have spotless credit? >> we haven't seen any disconnects. we are able to get all spectrums of credit still bought our manufacturers subsidize sales for consumers to be able to attract customers there is zero percent apr up t 84 months. manufacturers also brought in 60 months and 63 months

i think this will also change as the stay-at-home orders are relaxed and will become more and more aggressive. all manufacturers will eventually have those in play including no payment for 90 days as long as they prefer to stay at home and not drive that car for the next 9 # 0 days as well. >> you are seeing some dealership activity in parts of the country pick back up >> absolutely. the country is coming back to life i think if we think about our forward plans, we are already seeing much of the west start to come out of the stay-at-home orders it is almost immediately that the consumers are looking forward to getting back in their cars and seeing their chicken begin lights so they have to get

their car reservices and change oil lights back on which is creating drive for all circles we hope to invite them back to our dealerships in the coming months as the world becomes more safer and secure again >> that is bryan with some good news there saying things are slowly, loeftly coming back. on deck, stock futures are big right now. dow futures are off 470 points the president threatening more as they view china's role in the pandemic and potential coverup we'll be back with more right after this

welcome back dow futures are off sharply 465 points nasdaq and s&p also about the same the nasdaq the best since the year 2000. the president threatening potentially a new round of tariffs on china in what he views as their role in the outbreak and potential coverup of the pandemic. joining us now, chief strategist what a different 24 hours makes. do you view the move now of technical training or would new tariffs add another layer of uncertainty to our viewers and their money. >> it is a little of both.

the addition adds a level of uncertainty where significant amount of uncertainty exist. we also think as we look into the month of april, it has been a technical market especially when we lobbied in march i look at i 10 research. we did move into neutral territory. we do see resistance at that 3,000 level. on the fundamental front, we have a lot of earnings the picture really hasn't changed. clarity there has reduced also with many management teams removing or drawing guidance for the year >> that's a great point we know

less now after many companies have said we don't know, we can't see like tim cook from apple. i spoke to a big trader last night on the phone who said all of the flow he's seeing is the big quantity funds citadels of the world. >> that goes to the point it is qaunt driven i think the markets are saying basically 2020 is a wash you look at the valuations 2021 17.5 times feels more reasonable that is more than 18 months away if you think about combining 2020 and 2021 earnings growth, it is a net neutral. i would like to see a definitive bottoming in the next 12 months earnings before we can put up a real bottom in the market.

we need to see a clear path forward for reopening the economy and having certainty so that these companies can get back to normal >> they say hind sight is 2020 i'm ready to put 2020 in the rearview mirror. i'm looking forward to 2021. i hope you have a great day. thank you very much. cnbc's continued breaking market coverage is back after this. dow is off 420 be well. we're here to deliver cards and packages from loved ones and also deliver the peace of mind of knowing that essentials like prescriptions are on their way. every day, all across america, we deliver for you. and we always will.

there are times when our need to connect really matters. to keep customers and employees in the know. to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us.

may day. futures pointing to a sharp drop following the best april for stocks in more than 82 years

no, i don't remember that. the big tech movers, apple and amazon both under pressure we'll dig through results and comments from tim cook and jeff bezos. boeing returning the funding the bond offering is straight ahead. friday, may 1. "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. let's get right to the markets it had been a banner april for stocks s&p and the dow closing out the best month in 33 years, the nasdaq the best month in 20 years. let's pu