brennan and jon fortt. there's a lot going on as we begin the month of may obviously as lot of white house commentary we talked to larry kudlow earlier this morning but amazon and apple are the two big earnings stories and on the plap front we turn to josh lipton to start the hour hey, josh. >> as we know millions of people are now working and learning from home. i got the chance to speak with apple ceo tim cook and asked about that, how is that impacting business, how is that impacting demand for his products and services? cook telling me, it's clearly helping the ipad and the mac we envision both of those to have improving year over year performances in this current quarter. what we see is that the use age of face time has gone through the rife, not getting talked about as much, but the usage says otherwise i asked cook about the new iphone, the se that comes with the powerfuls processor and

lower starting point at $399 i asked cook if he was worried about the se denting demand for the higher priced models and then tanking his margins cook dismissed that telling us we are never worried about cannibalization. our view is if somebody is going to cannibalize it better be us there's probably a little overlap between the two. the se right now cook saying appealing to android switchers and appealing to people who want the most powerful phone but in a smaller form factor. sticking with the iphone i asked about iphone demand in china what are they looking like and can we use china as a leading indicator for other geographies in countries, europe and the u.s. cook telling us there was a significant, very steep falloff in february that began to recover some in march, and we've seen further recovery in april so it leaves us room for optimism it's hard to tell if that's a leading indicator, cook says there are differences.

the u.s. has had very bold stimulus programs and i think that will clearly help and on optimistic, cook says, about the pace of a recovery if the united states guys, back to you. >> that matters a lot as we head into iphone launch season. always look forward to hearing from your conversation after earnings with tim cook also, let's continue this conversation, also talk some amazon citi's jim and jeffrey's brent joins us now good morning, guys jimrs th jim, this quarter we're in right now is expected to be stronger for mac and ipad year over year growth and cook all but said they're releasing new iphones on schedule and happy with the state of their supply chain. the question is, how much demand is there going to be for iphones in q4 and how confident are consumers going to be? are those the key issues for you? >> absolutely. your question is spot on

the way we look at it is also that with the apple stores, physically being closed, pretty much everywhere around the world except for in china which has reopened, we do know that purchasing experience in the stores is superior to going other places for it. we're looking and we're assessing for those stores about when they start to open. the shelter in places, california, new york, and those, they're all closed now when they start to open up, people will be going in to buy not only the new foephones but wearables. we'll looking at the people on the show looking the technologies today we see them using the air pod, you see them using various technologies we do believe that a 5g iphone launch will be plenty in time before christmas this year and it will be important as people work from home right now, they are using a lot of the technology that they have and supplementing it with more we found a lot of people with their smartphones are extending the life of them and we believe

the fall will be a big launch for apple coming up. that's one of the many reasons why we are positive with the buy rating on apple stock. >> but jim, i've got some real questions about how apple's physical retail model even works understand distancing. so much is based on physical proximity, whether a person walking up to you and doing your checkout, people physically bringing you product, people in stores touching the same screens, trying out product when there's a big launch like the iphone, people waiting in line to get their phones activated. aren't there so many things that apple is going to have to change that maybe the physical retail experience won't provide as much of a boost as it normally would stew your observation and concerns are very smart and warrant and the answer is yes, there are a lot of issues to work through if we turn back the history and look at september 11th, the global financial crisis, other

recessions we went through, society did manage to come through it i do think that there will be more wiping down with alcohol swabs, maybe limiting the number of people in the stores and instead of having it packed so much, they may space it out more you may have to make reservations ahead of time to say they're going to keep all the stores closed forever we don't think is in the cards. we think the shopping experience is superior and apple is doing basically what we call what goes around examincomes around of mag the right decisions for consumers and societies with their employees, purchasers, giving back to the communities and we believe the world will remember that when we come back to more of a normalcy which will be different, that people will gravitate more and continue to esteem apple as an aspired product and -- but yes, the purchasing trends will, indeed, be a little different and the store experience of course will

be different, just like going to a restaurant or grocery store it's going to be different >> let's talk about amazon shares of a that stock are down, lower this morning after the earnings last night. i am taking a seat, to use jeff bezos' words here, i'm looking at your rating, you're sticking with a buy, sticking with your price target, but we know this is a company that is not going to be profitable in the current quarter. what are you basing your thesis on and the key metrics to watch as the year unfoldses? >> yeah. clearly a great top line but a setback in the bottom line when you hire 175,000 employees, there's no magic pixie dust to make those employees more productive out of the gate we believe in $2800 price target with the sum of the parts that goes higher over time. the stock has had a huge run up over 30% year to date. we think the stock takes a breather here. massively out performed any of

the other peers or the indexes we do believe, again, when you look at their guidance, it would assume basically flat operating income if you took the mid-point. if you add the $4 billion that bezos said that would cost them they would show a margin improvement year over year investors include in if you took this away, they were actually on a path to pit produce a small profit growth above where they're at we believe they're on the right track and helping serve all of us at home and working from home and we do believe the biggest issue is capacity restraints they cannot get enough inventory to us and the employee piece has been difficult it's pretty incredible to see them grow their head count 22% off of a huge number over 800,000 employees. >> yeah. and i mean earlier today house jury said they're requesting jeff bezos now come and testify

on the heels of both calls from some lawmakers in congress and state attorney general of new york talking about probes or looking to potentially investigate amazon, whether about data practices or whether it's about worker practices. how much is that pressuring the stock right now or is this something that investors are at least for now largely shrugging off whatwe've seen in the past several years? >> they're shrugging it off. i don't believe that's an issue. apz is going to launch some of their own products they have with their partners today over time there's no question in our mind, both in software and in retail, that they will have their own line so i think it's a delicate balance they walk with their suppliers an what they choose to produce. salesforce.com has done the same thing. a marketplace they competed against some of the players in marketing. we've seen this movie before i think ultimately the investors

are cued in on the expense line item is the big cue right now and the outperformance of the stock which is in this market and this day we're going to see a choppy tape and again, we're not surprised to see it pull back based on the guidance >> but just to reiterate morgan's question, brent, i mean if the house is demanding bezos testify, this remarkable tweet from the company this week about a, quote, political vendetta, i means the past few weeks have been talking about how the tech lash was receding, i just wonder how much risk is it in inflaming? >> yeah. it's a good point. i mean our belief was that because they're helping all of us, they're an aid to all of us and a need right now that they would get more of a hall pass and that clearly isn't happening. we'll keep an eye on it. it's hard to judge we don't have enough data to judge for you. this is going to be a rolling wave of regulatory for all the big companies, amazon, google,

facebook, microsoft, we've been living with this for 20 years covering microsoft what we go back to is focus on the fundamentals and we think ultimately the big tech platforms continue to thrive and they'll address the regulatory issues as they go through this i don't believe there's a big issue at hand right now from what we can see. >> okay. jim, on purchasing trends, we talk about the world being a little bit different as you shop for apple products but if i had told you maybe late last year that jobless rate was going from 3.5% to 10% within 12 months, what would have been your answer about what happens to asps why should we think that's not going to get hurt at the high end? >> one reason is, first of all, i would not have believed you. i've known you for years and would not have believed you and that statement coming out of that statement looking like it's quite real of

what's happening, i also would have asked you, why exactly is that unemployment going up and where is it hitting? is it hitting certain income brackets is it hurting certain sectors, whether manufacturing or helping out others like education or technology and i do think that importantly, apple has a skew of average selling prices that two from high tolow and simply put, whe people get hooked into the apple ecosystem their first purchase always isn't the most expensive thing. a lot of times parents give their children their old iphones and then they get hooked into the system and gradually spend more and more and that's -- that brings us to the topic of services which we haven't spoken of so far is the apple services in the shelter in place, the work from home, the services become increasingly more important. i think that the asps of always you launch something expensive

with a lot of bells and whistles will appeal to the people who are developers, who are building technology in the services and apps, and then they will have a full skew price point. on your unemployment question i don't think any of us thought we would be where we are today and looking forward. the positive thing is there are signs the cases are slowing down and people are slowly getting back to work a little bit, but simply with apple having so many average selling prices, we think that they kind of can fit the budget of most people out there in the world >> jim, finally, along those lines, are you concerned at all about the impact of the iphone all this talk is apple going to release a cheaper iphone if i would argue for the first time they've done it. the previous se was like a body generations old, didn't have the latest internals the se has the a-13 chip, really

great internals for $399 you would have had to pay a couple hundred bucks more than that for the 10-r. do you buy what tim cook is saying about expectations of little overlap >> i do think the price point and for the horsepower that it packs is very compelling to many now the question becomes is, if you're going to hold that phone or that device for three, four, maybe five years, and you amortize that cost over an average of four years, then your price point stoortsz look a little bit more attractive it's almost like buying a pair of shoes or glasses or something you wear multiple times every day. you use your iphone more than you use your shoes because you swap out your shoes and so when you think about amortizing the cost over the full life of three or four or five years the price is more realistic. where i think it helps is in developing countries where their

economic disposable income is less than in new york, san francisco, the united states, and markets who have more discretionary income but i do think it is something we're going to watch, we hope and we didn't know yet, that it adds more users to the apple ecosystem who then start buying more apps and services wearables and attachments hooked up to it. that's what we're hoping for your observation is correct about the power inside of that for the price is quite compelling. >> interesting gamble. we're going to watch it for sure jim, brent, thank you. >> thank you apple is up 1%, best performer in the dow today let's get a check on where we stand across the major averages. overall, that performance not enough to keep the dow out of the red to start the month of may. down 419 points right now. the s&p is down 58 or about 2%, similar move lower for the nasdaq as well as investors digest more earnings, more

economic data and, of course, the growing tensions between the u.s. and china st wh ayitus ♪ ♪ at&t knows you have a lot of things on your mind. staying connected shouldn't be one of them. that's why we're offering contactless delivery and set-up on all devices. and for those experiencing financial hardship due to this crisis, we'll work with you to keep your service up and running. hi! because at at&t,

we're always committed to keeping you connected. across america, business owners are figuring things out. finding new ways to serve customers... connect employees... and work with partners. comcast business is right there with you. with a network that helps give you speed, reliability and security. and enough bandwidth to handle all your connected devices. voice solutions like remote call forwarding and readable voicemail. and safe, convenient installation. when every connection counts, you can count on us. get the connectivity your business needs.

call today. comcast business. one thing we've learned lately when elon musk tweets the news cycle follows him he says, i'm selling almost all physical possessions, will own no house, says tesla stock price is too high, in my opinion, and

now give people back their freedom. 33 million followers and it's going to get attention the stock down almost 7% >> the stock was already down a bit, but i'm looking, it looks to me like it was around 750 when he tweeted that the stock was too high now it's at around 725 i can only imagine how tesla shareholders who have been enduring volatility with the rest of the market must feel about this, carl, but if you come to expect anything from elon musk he's going to exercise his freedom. >> yeah. >> morgan, we've spent years trying to get inside his head. >> yeah. well, i think he's had a very busy week and certainly we did see the pressure on tesla shares accelerate with that tweet also important to keep in mind he is nearing this very large multi, multimillion-dollar potential payday and options as well this week it's just -- it's interesting to

see how all of that is playing out. i would imagine short sellers are kind of losing their minds a little bit given the nature of this tweet tesla's had a big week so has spacex. nasa yesterday awarded lunar lander contracts, something i obviously follow, and they awarded one to blue origin and the team there, one to lidos and one to spacex, which is still moving forward despite everything we're seeing with the pandemic with its space plans including its new starship rocket lots to talk about always with elon musk. >> absolutely. and about the broader markets as well let's bring in callan ceo jeff sullivan after this remarkable week happy friday. >> happy friday to you too, carl >> we have so many earnings stories to work with, we have policy to work with and this boeing bond offer is sort of leading this narrative that at least if you look at the credit

markets, as jim casey told faber in the last hour from jpmorgan in his view, we've moved from the crisis chapter to a more traditional recession chapter. does that sound right now? >> it does sound right to me again, i think that the great thing that's happened here certainly is that the fed and the treasury acted very early to ensure that the financial plumbing was working well. that's what enables companies like boeing to raise $25 billion pretty much overnight and so when you have that kind of liquidity in the market, people can begin to think about how they look through the valley and that's really what's important here you know, there's a lot of tweets and a lot of emotionality and a lot of stuff that happens on a daily base that is you all report on but if you take a step back for a second, we can start to begin to model out how this could look and be able to look through the valley which is clearly coming here in the second quarter >> mastercard is another good example, jeff, on the conference

call this week, was asked about how you start to get people on the long haul flights without a vaccine and the answer on the call was, i don't know can you do that without a vaccine? i don't think so how is -- how are investors going to process virtually every headline when it all comes down to a binary outcome which we hope comes this year, but could come next year, it might never come at all. >> it's going to come. i think we've never before had the amount of really bright scientific minds focused on a singular issue and honestly, it's going to come and it's -- so it's just a matter of when in our opinion. i think investors have to look through i think probably most of 2020, we may not see significant long-haul flights until 2021 and -- but again, as i said, if you're building a five-year cash

flow analysis, you have to project in normal behavior and there will be long haul flights again and we will be able to be in arenas again and gather with more than ten people again i can't tell you specifically when that's going to happen, but it's going to happen because that's who we are as human beings i think at some point we're either going to get a vaccine or some sort of herd immunity and move on with the new normal. >> jeff, it's jon fortt, given the comeback that we've seen in the markets thus far, i'm wondering what you think is priced in, in terms of recovery? starbucks plans to have 90% of stores open in june they tell us qualcomm is modeling a u.s. recovery taking hold beginning in june. also, do you thing a june ramp in economic activity is priced into the market? do you think that's possible without new york and does it assume protocols like testing an contact tracing?

>> i think some is priced in it's hard to see the rally we had in april isn't pricing in some amount of good news i think it is. we have to remember here in new york we are living in a fish bowl and it's really, really hard when you live in the new york area to remember what life is like outside new york because you don't see it and tup it and feel it. i talk to people and they're having a different experience around the expercent in new york and they're anxious to get back out and social and reopening the economy and they probably should be i think it should be measured and controlled and things in place to ensure that we don't inadvertently spike the virus again, but we should be beginning to think about how to get back to normal when we begin to turn that economic recovery back on again, we'll get a better sense in june and july how that's going. again, i do think when you look at july specifically you look at second quarter earnings they're not going to be good

people need to get that in their heads. but if we start to see economic activity that picks up again, people will begin to look through that trough as the markets always do. it's a discounting, the markets are a discounting mechanism. if we see good activity in june and july people will look through the second earnings. >> i think you make a key point in the shift in sentiment based on your geography. in westchester i'm seeing more cars on the road and more people out and about. spring fever has set in if you will in terms of the future, the long-term future of investing trends, i think of walter isaacson and the op-ed he wrote recently on our show talking about the fact that he believes we're entering a new era, a life sciences era, we were in the information technology phase in recent decades and before that one that was powered by physics, he believes health care, biotech

and other life sciences are really going to power trends of the future from investing standpoint how do you see it >> we agree and we've been saying that for a number of years as you know. we've talked about the amazing amount of science that's gone on the capital markets have enabled that to happen so private capital as opposed to governmental capital has been the thing that's unlocked this wave of companies. by the way, close to 400 public companies today, which is one tenth of the public companies we have in the united states, are biotech or life sciences companies that have come public in the last seven years. that wave is upon us and those companies are doing some great things we're watching what gilead is doing. remember a couple years ago gilead was dragged up on capitol hill and they had to talk about how they were pricing their drug and now all of a sudden with we're counting on remdesivir to be the savior for this what this industry has the capability of doing, unlike many other industry, is solving real

problems and they do it almost on a monthly basis it remains extremely exciting for us we agree with walter isaacson who has been in this space, a big push andwe've seen a bunch of offerings that have happened this quarter already, the markets are open for biotech and it looks to me as if you're going to make one bet, i think i said this last time i was on the air, one bet in the markets you have to bet on health care because we know over the next decade it's going to be a critical area, an industry unlike many others >> yeah. even just from demographic standpoint which we knew was in place, just been accentuated the virus has taken trends existing before and just put the pedal to the metal good to see you. >> enjoy, everybody. stay safe. >> it is the first trading day of may let's check where we stand in today's action

major indices at about session lows except the dow near them, aqwn about 200, s&p and nasd off close to 2.5 we'll be right back. welcome

morning, everyone. i'm sue herera here's what's happening at this hour the temporary field hospital set up at new york city's javits center is closing today after treating more than 1,000 patients amid the coronavirus

pandemic key fema equipment and supplies, though, will remain in place in case there is a second wave of coronavirus cases. india is extending its nationwide lockdown for another two weeks after may 4th. the country will relax some restrictions in lower risk districts but travel will still be prohibited and schools, hotels, restaurants and places of worship will remain closed. and the european low-cost carrier ryan air is planning to cut 3,000 jobs, about 15% of its workforce, including pilots and cabin crew it is also slashing wages as it grounds more than 99% of its flights until at least july. as always, you can get more on our coronavirus coverage by going to cnbc.com. morgan, back to you. >> sue herera, thank you. we're going to take a quick commercial break thus with e major averages lower on the day but poised for gains for the week i think the next phase

business leaders are going to be looking for is how to we make sure that psyche of the consumer is repaired as quickly as possible i think that's one of the more challenging aspects. i don't have any great idea as to how to do that, but i think that's the thing that will have the biggest impact to business worldwide. it's not so much how they operate internally but how does the market repair itself, how does the consumer feel comfortable to do many of the things that broad economy needs for it to be successful. >> what we're seeing now is people creating friends through their gaming experience, families playing in the home we've had over 23 million new friend relationships built through game pass as people are sitting at home and building these digital relationships with people, socializing through

individual games i'm sure there will be some moderation, but i also think gaming activity, whether it's in the house, the family together, or people playing online, is just going to continue to grow as it was before the c-19 pandemic. >> we don't expect to be back to normal until at least september 1st. we're not going to expect or require employees to come to the office we may open the offices to make it available for our employees who need to get out of their house, but i think there's still so much we don't know. >> i think this is a moment if we get a good therapeutic or vaccine, we feed to ensure broad access to populations around the world. >> the hot spots are not correlated well with where we have most of our riding areas and demand for our products. we think the areas and states less impacted people do want to get outside and our tag line is think outside and enjoy our products it's a way to be out with you are families and those that you social distance with we believe we're offering an

opportunity for people to recreate where there aren't other options. >> some of the executives who have been with us on this remarkable week talking about reopening the american economy take a quick break here. dow close to session lows down 500 and ths&e p looking at 2840. back in a minute s been on your . we've been there in person, during trying times. today, being on your side means staying home... "nationwide office of customer advocacy." ...but we can still support you and the heroes who are with you. we're giving refunds on auto insurance premiums, assisting customers with financial hardships, and our foundation is contributing millions of dollars to charities helping with covid-19 relief. keeping our promise to be on your side. confident financial plans, calming financial plans, complete financial plans. they're all possible with a cfp® professional. find yours at letsmakeaplan.org.

welcome back it is may 1st, mayday and essential workers at some of the biggest companies are organizing a strike calling for safer conditions amid the virus outbreak our contessa brewer is live in manhattan with the latest. contessa >> morgan, these organizers are asking workers to call in sick or walk out on their lunch break at places like whole foods and target, walmart and fedex, amazon and instacart and what we're seeing is they are also asking customers not to patronize these businesses today. at this whole foods in lower manhattan you can see lines of

shoppers outside waiting for their turn to get in they're doing this for social distancing reasons inside the workers are wearing masks, but here you have butchers and cashiers, guys stocking the shelves, finding themselves as essential workers frontline of this pandemic while those inside said that they don't plan to join in this walkout. the organizers tweeted out demands that vary from company to company >> child care subsidies. >> transparencies on case from the company. >> we want retro pay. >> retro pay for all unpaid time we use during the pandemic. >> some of the things that we are protesting for. >> these are not outrageous requests >> all right so the retailers tell us in large part they are responding to the demands for more safety for instance, instacart said they have new safety kits to send out to their employees. target and amazon have extended

their $2 per hour pay for these frontline workers. amazon went a step further, they said while we encourage people to express themselves, we object to the irresponsible actors of labor groups in spreading misinformation and making false claims about amazon. they went on to say what's true is that masks, temperature checks, hand sanitizers, increased time off and increased pay and more are standard across our amazon and whole food market networks already this is the first time that i've done a live shot fully covering my face. i have to say you see it for these workers inside all day long having to keep their faces covered, but again inside this target in lower manhattan i walked in, i said are you planning to participate in these mayday walkouts they said no another worker that i talked to today told me, listen, i'm just glad i have a job right now. morgan >> contessa brewer, thank you.

stay safe out there. joining us is the liaison for target workers unite thanks for being with us today >> thanks for having me. >> so in terms of the fact that you're the liaison, specifically how many target workers are actually participating in the sick out today >> it's several hundred according to our numbers we have a strike pledge that we've been circulating getting workers across the country to sign and commit to sicking out today and last i checked it was several hundred, maybe 300, maybe higher i don't think we'll have a full count until after today to be honest >> and specifically, what are you calling for from target? >> we reduced it to two general demands, proper compensation and proper safety. they, you know, they're pretty good about issuing press releases talking about how they're providing those things or what they define as proper, but i think there's a total disconnect between what us

workers consider proper and what p.r. spin from corporate is. >> adam, thanks for coming on. this is jon fortt. i wonder, you say you got between 400 and 500 workers so far who have committed to sicking out. i was looking at your site you had around 500 respondents to a recent survey last i checked, the latest numbers i could find as of a couple years ago, target had more than 9,000 employees in your home state of virginia alone. so is there a challenge getting target employees to rally around this cause, to organize? what kind of feedback are you getting from people as you try to get them to join you here >> it's difficult trying to organize workers unionization rates especially in the private sector are in the single digits and, you know, that culture of solidarity that workers once had has been destroyed systemically for decades now and what we're trying to do is revive that and rebuild that and workers just don't really have a lot of living memory or experience with

those sort of things it's definitely an uphill battle we have no illusions about our size and our capacity, but, you know, we view ourselves as the militant minority and trying to show there's an alternative here where we don't have to choose between sacrificing our lives for a paycheck that isn't going to cover our medical expenses or funeral expenses if we catch this virus or die from it. >> adam, we're showing some images right now i think of some of the stuff that customers at targets leave behind in stores which add to the safety risks that you're talking about. you mentioned press releases versus reality i mean certainly target has come out and highlighted extended increased wages, vulnerable paid leave quarantine and confirmed illness pay, team member shopping hours and a few other things in the list are you saying they have not followed through with some of the pledges and things they've publicly said they're doing?

>> they've taken i would say bare minimum efforts to provide for target workers for example, the hazard pay they're talking about giving us, we were at $13 an hour for the majority of us across the country and we were planning to go to 15 this year anyways they announced two years ago we were going to be paid $15 a year and this was the year we're going to hit $15 it's convenient to say they're giving us $2 hazard pay when we were promised that money anyways. the social distancing and things like that in the stores, they are giving it up to the customer discretion to practice safely those measures and, you know, they know how customer behavior is it's the idea the customer is always right, they don't want to infringe on customers' buying behaviors. they want to maximize sales as much as possible ever since the stimulus checks

have been rolling out we've been seeing a huge increase of foot traffic and beating sales, even though a lot of that has been shifting to online orders which we think is a good thing, like at my store it only account for maybe 20% of our sales 80% of our sales are still from the foot traffic coming into our store and it's just -- it seems like it's another day any other day pre-pandemic situation here where people are coming in and shopping as they normally would casually for nonessential items. it kind of conveys to us workers a lot of folks aren't taking it seriously and not considering our health or safety as the workers. >> adam, traditionally when unions negotiate say a contract with an employer, they point to industry standards, standards at the various companies. who is doing it right? who would you have target match in the way of safety practices >> i think that's very hard to say in the united states i think all these companies are failing workers and have been failing workers, assuming that

they actually wanted to meet the needs of woesrkers. what we were doing and saying was workers were already in crisis, workers being homeless, these are precarious jobs and they purposely have been designed to be this way and we are constantly told before the pandemic that we don't have real jobs, we're not real workers, shouldn't expect things like health care or even respect or dignity. and that is still the situation in the middle of a pandemic. that hasn't changed. that fundamental character hasn't changed we need to be looking to other countries that have things like universal health care, you know, basic living standards that don't force workers to have to be stuck in such a precarious situation where we're having to choose between getting these paychecks or getting this virus and potentially getting sick and dying from it. >> adam, two-part question here. one, what kind of response have

you gotten to your efforts from your store's management, your regional management at target and maybe even corporate, and do you consider yourself a union? you talk about on your site as being an initiative but i don't know if you're charging dues or if you're trying to organize in the traditional sense? >> yeah. my store management, you know, i don't have a problem with them at this point. when i first got hired on in 2017 we actually had a sexually harassing boss sort of right before metoo kicked off and we organized a strike action to hold that person accountable and get them fired and we were able to do that after the second day of our strike. we're not a formal union we don't charge anybody dues it's like trying to rebuild this culture of solidarity amongst working-class people, that we have these fundamental rights to organize and strike without a union or contract, and that's

kind of a foreign thing for a lot of folks even the unions these days they don't want to promote that too much they have their contracts with no strike clauses. they want to ensure labor peace with the companies they conflate the interests of the corporate executives with the interests of the workers we're not about that we're here to, you know, represent the interest of working class people and understand like our lives are more important than their drive for profit, and yeah, i think that kind of sums of it up >> adam ryan, thank you for joining us today >> thanks for having me. >> we should note we did reach out to target for a statement here is what the company said. since early march we've introduced dozens of new measures aimed at keeping our frontline team members healthy and creating a safe environment for families across the u.s. to shop for the essentials they need as the situation with the coronavirus continues to evolve so will our safety cleaning and social distancing measures

we encourage any team member who has concerns to share their feedback with us so we can work together to address it carl >> morgan, we're trying to hang on to the gains for the week they're all but gone as we listen to governor cuomo from his briefing a few moments ago >> dropping, and that is all good news and that is a credit to the community and the social conscience and the responsibility of new yorkers. the question now is, as we're on the decline, how fast is the decline and how far is the decline? how low will the number actually wind up? right now, we're at about 1,000 new cases per day. okay in the 900s. 954, 933, 970, 973 that's four days day before that it was 1,076

that looks like the number is flattening, is plateauing, at about 900 to 1,000 cases three, four days, five days if you want to say between 900 and 1100 that is still too high a number of new cases to have every day it's better than where we were for sure, but 1,000 new cases every day is still a very high infection rate it's still a burden on the hospital system. so we now want to take it to the next level let's drill down on those 1,000 new cases. where are they coming from why is the infection rate continuing who is getting infected? let's get more targeted in our

response, right. we're fighting this statewide. but you have to wage the battle, wage the war on many fronts. this is a statewide battle now that we have it basically stabilized and on and on the de the eneis oemy is on the run. the virus is reducing. let's get more refined and targeted i'm going to be speaking with the hospital this afternoon saying we want to get more information on the new cases that are coming in the door. where are they coming from who are they if you look at the past few days where the cases have been coming from, this is a three-day rolling average. you see, 17% from manhattan. much of it correlates to population much of it also correlates with

down state new york. 17% manhattan, 17% kings 12% bronx, 11% queens. then 10% nassau. 7% west chester. upstate it's erie county gives you a snapshot of where the cases are coming from. we need more specific information to have a specific battle plan. where do the new cases come from are they essential workers are they people staying home and getting infected by a family member or are they essential workers who are still traveling and possibly getting infected at work where do they work how do they computmute

is this a case of getting infected on buses? where in the state where these people who are being transferred from a nursing home, what's their sex, age, previous health status what are the demographics. let's get more specific information from the hospitals to see if we can come up with a strategy that's more tailored to the reduction of these 1,000 cases. all the good numbers, all the good news for me, every day, this number just wipes that all away >> that is new york governor andrew couomo just moments ago giving data about the spread and slow down of covid-19 in new

york he did say deaths dropped below 300, which is an important milestone. he noted a reduction i intubations. the governor's twitter account tweeting that given the current situation, k through 12 schools and college facilities will remain closed for the rest of the academic year and we'll continue to provide distance learning western digital shares taking a hit this morning. the virus outbreak has hurt demand if several of its hard drive categories western ceo joins us good morning, david. >> good morning. >> great to have you

a lot of investors paying attention to fact you've suspended your dividend saying you're looking to really reduce your outstanding debt. to my eye and this is just my brief look, correct me where i might have gotten this wrong, it looks like you've been paying down your debt at a rate of about a billion plus a year while paying the dividend. you want to pay down about four billion more before you revisit the dividend is it safe to say that will take you a year and a half or are you able the sayhow long the dividend might be suspended? >> we haven't put a time frame on the dividend. we want to pay down the debt we feel good about the portfolio we have. we think we're set up for a multiyear growth opportunity we're in markets that are volatile or capital intensive and feel like we have too much debt and it's a good time to pay the debt down faster to set us up for the long run. >> given where interest rates are now, they are pretty low and

looking to remain low, at last that's what investors are betting. what's the real imperative to pay down debt now. does that have to do with more things you'll want to build to stay competitive >> we're in great markets. we have the hard drive business which you can see of proxy to cloud growth all of us are using that every single day now more and more that product is indispensable for the public cloud that's a portfolio where we're in a very good product transition we're ramping a market leading product. we have great customer relationships and we're seeing that business return to growth for the first time in a number of years given the public cloud growth on the other side of the business we have the flash storage business which is more on the end point side of the business, if you will. we see a tremendous amount of growth there

we all have different tablets and phones and everything we're using every day. we're seeing the next generation of gaming consoles come on the market in next quarter we think we have a multi-year growth opportunity many opportunities will present themselves and we need to get the capital structure in the right place to take advantage of that >> we've been asking about every executive who is in the manufacturing space if their practices are coming along from safety perspective employee safety, product safety. how far along are you on that whan and what do you see as the bigst challenges to get back to where you want to be >> this has been real journey. we implemented best practices in all of our factories across across the world we have been dealing with this since january. we have facilities in china, malaysia, the philippines and japan. we watched the virus move around

the world quickly. implemented best practices have as many people working frg home as possible at the same time make sure we have people in the factories that are very safe and keep producing. we have seen that supply situation and our ability to get back to full capacity and improving week over week here. it's going in the right direction. >> you became ceo of western digital in march as you workd throued through th pandemic, how is it affecting your ability to deploy your longer term strategic road map >> i starr edstarted on march 9 was an interesting time to be here i kind of stepped right in it was when the pandemic was really starting to accelerate here in the united states and

our first focus has been on making sure all of our employees are safe that's obviously the number one concern. working with our suppliers for the same thing and keeping everything running it's been challenge to work across the team but everybody is add ju adjusting very well. this idea of work from home, how the whole world is connected together through increasing int intelligent devices, that architecture has been set for some time. we've had a huge acceleration for how fast we're all using it. what we're seeing is it's enabling us to do what we need to do. >> all right thanks for joining us. >> thank you very much i want to give a check on tesla stock right now. that stock at about $694 a

share. you heard about people giving themselves haircuts at home. elon musk appears to have given his company stock a haircut. it was trading 750 earlier in the hour when he said he thinks the price is too high. it's lower now it's $692 a share it appears tobe in the going direction that he thinks it should, guys >> i just note that some of tweets over the past hour have gotten a little more suspect something to keep an eye on. whether this is an account that's been hacked or whether this is elon musk putting some more zany stuff out there now. we seem to be hitting fresh session lows with the dow down 583 points we just turned negative on the

week for the dow carl >> i'm thinking of people who aren't on twitter at all who own tesla who must be like what just happened it does continue to raise continued questions about disclosure, regular fd, what have you next week we'll get disney, gm, peleton and a lot more let's get to the judge thanks very much our breaking news coverage of the markets continue now the first trading day of may is so far a down one following earnings from amazon and apple we'll discuss all of that. debate it along with what this new month may hold for your money. the investment committee is here as always. let's take you back to