stephanie, quek, final trade from you, please >> et -- estee lauder. i think the consumer comes back here in the states as well. >> josh brown? >> keep it simple, if you know there's pain avoid it. >> jim >> same as josh. >> shannon >> you said quick. >> anthem, all health care all the time. >> going to send you a dictionary guys, have a great weekend quick is different to some people kelly? i'm quickly going to send it over to you now. >> scott, thanks so much have a great weekend, everybody. welcome to "the exchange." first day of may look at the action, stocks are starting sharply lower maybe not a big surprise we also have fears of potential new tariffs of china, nervousness of the reopening of the economy and worries of travel and hospitality in

particular the dow overall down just under 600 points the nasdaq down 3.3% amazon one of the worst performers take a quick check energy pretty much leading the way lower. more on that in a moment but tesla's probably the story of the hour right now. down about 8%. after elon musk himself went on a tweet storm about the stock price being too high even saying he's considering or is in the process of selling all of his physical possessions. much more on what's going on he here but first let's get to bob pisani for earnings and action in the market today, bob. >> yeah. a lot of contradictory things from the companies more in the 2:00 p.m. hour but the markets, we opened on the weak side in the first day of may and drifted lower late in the middle of the day. governor cuomo giving the daily briefing we drifted lower then. he made comments about the

schools likely closed potentially for the rest of the year, some comments there and so that's not terribly helpful. see the s&p sitting off of the lows for the day a lot of risks to the market we have regained 60% of the losses that we had from the end of february so a lot of risk out there. the most obvious one is potential for a wave of reinfections occurring that would force states to close again but more importantly i think there's some evidence that the reopening may go slower than expected and be a real problem and we have an issue of whether there is there's a new tariff war brewing or not larry kudlow was talking about that this morning but on traders' mind. amazon down 8% and that's a problem. banks weak tech weak. we had weakness in the lam, micron apple, as well energy, consumer staples are outperforming on a relative basis. next hour talking more about some of the earnings and kind of a picture about what i see

emerging in earnings back to you. >> we're goring to talk about energy in a moment that i understand. why are the banks so hard hit do you think? >> well, this is the story about the slow down. last two weeks of april talking about the reopening and now issues of how strong the reopening is going to be so you see the retailers move down, you see the banks move down. you see certain industrials move down this is a broad play on the reopening concept and how strong it is going to be. it's about how successful reopening the economy's going to be and how fast to do that. >> bob, you changed the poster over your shoulder there was a female poster up there yesterday and now seeing the white stripes. >> oh. yeah that was janice joplin i change them around it's a little bit of levity in all of the grim news out there

collecting posters for 30 years. it's a fun little hobby. >> people love it. i liked "the new york post" write-up, too. good to see you. >> okay. market selling off after a historic month of april. do investors have hangover or fear like bob was talking about that the new normal to experience is parts of america reopening is real slow and take a long time? joining me is doug ramsey and brian weinstein. doug, i'll start with you. i guess everybody kind of senses evening as we reopen it is difficult for a while, going to be almost as hard to reopen if not harder for a lot of industries >> i agree with that there will be a "v" here as we get a partial reopen but i still think that the rebound is going to be to much lower levels and i mean, really, you know, 10 out

of the last 11 years we have had negative real interest rates that's put into place at the end of the cycle a lot of bad investment the oil patch is a poster child and find out more now that the tide has gone out and i think -- so even if this were to completely blow over, talking about the health scare, we still got economic excesses to work off and it is just going to take sometime and not doing wit a 27 trading day decline in the s&p 500. we see those lows tested and in fact taken out later this year. >> okay. do you agree with that, brian? i think all of us had this experience getting notes from the doctor's office and dentist and look at the procedures and the staffing requirements and the way it's going to be to go back to an appointment that simple and realize we're going to be dealing with a new normal for a very long time >> kelly, i think that's right

you said earlier is it a hangover today i think a little bit is exhaustion the stories are the same information rehashed and the truth is no one knows what this looks like how does it translate to markets? investors optimistic but not happening as quickly in fixed income that's okay because we earn income a lot of securities are meant to do very little so i think for investors looking for fixed income there's plenty of opportunity but the idea to wake up having missed it or a cycle being over in a brief period of time i think is a bit of human optimism opposed to reality. i don't blame people for it but you have to realize we don't know what it looks like on the other side >> yeah. brian, i was looking at the notes. one part of the market you like is a part that's hard to access, they go hand in hand there's no etfs or fed programs,

great income sophisticated investors can access that. how would you recommend gaining that kind of exposure or would you not? is there no other really good play available right now >> it is interesting look at investor grade credit. everyone says follow the stat. it works treasuries are lower not saying the yield can't fall. but if you look at securityized assets, they exist you can find them but the yields are 6%, 7%, 8% and risk in them and can't be accessed as quickly by the fed it is a place of value and income which is very valuable in an uncertain environment to a fixed income to play a role in a portfolio. >> you are saying it's taking the fed long enough to get access to the part of the market that investors can front run them right? >> i'm not sure they come into

every market. >> or that they need to and leaving the spread than other places where they have. >> can't be okay and everything else is bad. there should be some gray area and i think where you want to invest right here. >> doug, this morning david fabre talking to a banker at jpmorgan taking a point of a fed put in everything now, officially or otherwise. does that frustrate you? i know that you think one part of the market in particular overvalued is large cap and large cap technology saying by your measures higher than all but two historical bull markets but does it matter if everything is rising because of the fed support? >> i don't know. we certainly have some examples in europe and in japan where rates are even lower in fact, negative in many cases. where pes much lower so we have battled that argument that nees very low capitalization rates that you see in the risk free rate should account for much higher pe ratios

i don't buy it i think those extremely low rates are a signal that we got serious problems here. in fact, that was a signal that was in place prior to the coronavirus erupting so i really don't buy that argument if we go back and get anywhere close to the lows would not surprise me at all if the fed somehow legally or otherwise finds a way to maybe buy these equity etfs. japan's done it. what i'm getting at is even the bears i think ultimately will be satisfied on this thing but it's going to be a choppy road because you will have those flashes of hope. i think ingendered not just by the fed but other policy makers working in tandem and ultimately we are going to drop to some type of fair value you talked about the valuations at the bull market highs if we were to fall to the most

expensive valuations ever seen at a bear market low we would get down to close to 2,000 on the s&p 500. and i don't think that's necessarily an unlikely thing by the time this thing is all over. sounds draconian and would be the most expensive valuations we have ever seen at a low. >> okay. yeah no everything you're saying about the fed, used to sound crazy and conspiracy theory seems very normal doug, brian, thank you both for some good thoughts on these markets. we appreciate it. >> thank you. >> thank you. let's focus in on the energy etf. down about 5.5%. those are the big names including exxon down more than 5% after the first quarterly loss in over 30 years. chevron telling the street its number depressed as oil stays at the low levels trading off about 2% and we just got a rig count number on the supply side. let's bring in brian sullivan for a look at all of it.

>> look at that chart behind you, kelly chevron down 1%. everybody used to trade exxon and chevron. same company and different colors not the same anymore the market has been punishing exxon. they had $4 billion, kelly, in negative free cash flow last quarter. chevron less than a billion. comparatively that's pretty good the market is really starting to differentiate them and exxon worst performer today, in a month, this year and in 12 months rig counts, chevron and exxon both taking billions more out of their capital spending what does that mean? capital spending, cap-x. spending less money on drilling new rigs and the rig count number mirrors that. baker hughes saying down 57 this week down 582 rigs in the past year what that means and why that matters, number one, jobs an people's families. but number two, it's talking

about production reduction in terms of oil together con cophillips, exxonmobil and chevron taking a million barrels a day out of the market going forward we are starting to see a big reduction in the u.s. and that's good because i want to stay on this saudi oil tanker story. look at this map there's still 40 plus million barrels of saudi oil headed our way. some of it one ship is already in galveston another ship is already in long beach according to tanker trackers much more on the way and may be why we're seeing the names under pressure. >> this time last year, 990 oil rigs in this country and now down to 408. that's a reduction of more than half >> and listen. with each one of the rigs, i have been on them many times crew of 20 to 30 people. so these are jobs behind these numbers. i want to certainly emphasize

that mid land, texas, will have tough times ahead and many people say they won't be happy until the rig count number closer to zero. that sounds ridiculous the industry has to stop producing oil if it's not needed yes, we are talking about quote reopening. okay slightly more traffic. let's be clear nobody's predicting jut fuel to recover any time soon. china air travel hasn't recovered at all even as their driving traffic has. demand will be weak for a long time the industry needs more shut-ins and probably going to get them voluntarily or involuntarily >> yeah. absolutely we heard brian lance say that same thing of conoco phillips yesterday. great stuff. we appreciate it. >> sure. >> the latest on what's happening or not happening in the oil patch. larry kudlow weighing in on the debate over balancing public

health with economic health. plus if you open will they come we check in with one mall near detroit launching curbside and pickup today and how much the industry is changing an hurting right now. the university of california has already faced a half billion dollars in lost revenue and new expensi expensions from the pandemic the university's president janet napolitano joins me live to talk about what herchl ed soones and what the new normal could look like stay with us

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welcome back businesses across the country are gradually starting to reopen critics say this will put public health at risk larry kudlow addressed this issue earlier on "squawk on the street." >> health and safety is vital. but economic health and safety is also vital. so we are trying to balance the two. >> joining me now to discuss economic health and safety and the impact of fighting this pandemic is larry lindsey, former director of national economic council under president george w. bush larry, good to have you here today and let me just start on the reopening which is i think the theme of the show today is a realizing it's gradual an some industries changed for a lot longer than we would have thought a couple of months ago what does that mean for what the recovery overall looks like? >> well, i think the answer as

larry said is balance. we are trying to both balance our economic needs and our public health needs. and one important thing not stressed, the first thing that happens as soon as you meet the white house guidelines is you can start providing nonemergency health care. we have been shrinking our health care industry, amazingly, during this pandemic because of the shutdown and it's time for that to end. this shutdown is not only costing the economy, it is also costing human lives. >> no, larry, you have been specific about just how hard this industry is and we have started to hear it time and again from college presidents and going to speak to janet napolitano in a moment but others saying they're losing tons of revenue taking revenue from the hospital systems to support the colleges they don't have that right now so you picked up on this especially in the gdp number when you said the primary source

of the decline of the gdp of almost half is drop in medical services these services are pent-up demand unlike food and restaurant this should come back, right is it soon enough to help the hospitals avoid a worse fate >> think of all the procedures we do just to stay healthy you know they range from, you know, mammograms to having our blood pressure taken to all that stuff we go to our doctor or small emergency rooms for. those aren't happening not doing those means people are going to die from those diseases later on if they don't get checked. so i think people are smart as soon as they're available they're going to rush back and do the life saving things that the shutdown blocked them from doing. >> but will they go back to the normal hospital? we are dealing with coronavirus, especially as the economy reopens, the hospitals still have more of these patients,

more protocols to make sure everybody's safe i have seen different countries trying to move those so-called nonessential or elective procedures to other facilities altogether would we need to see it pick up and it's a financial hit for hospitals but are we able to service the needs in the traditional facilities >> i certainly hope so i got to imagine that larger hospitals can isolate the covid patients on separate floors or in separate wings and so our nonemergency procedures and even some of our quasi emergency procedures go like a lot of heart surgery, for example, doesn't have to be done that moment it's still something that should be done. all that needs to restart and thank god i'm not a hospital administrator these days much safer on the an economist. >> no, it's a really difficult

within they're probably the ones with most to lose and obviously the one who is are tasked with saving the most lives at the same time. maybe let's pivot to the fed where your thoughts here are hopeful i guess if we consider it in terms of what it means to the economy. you said they are basically telling the investing community, the public willing to do whatever it takes as much as it takes as long as it takes. it's the mario draghi approach on steroids and it is making you more optimistic about the rest of the year. is that right? >> yes more of the great risks here was that we started with -- we would have started a debt deflation where people because they didn't have revenue coming in had to default and of course when they default the people with the money stretched and may have to default and that's one thing we really want to avoid and the fed has basically backstopped just about every -- in the economy. a few they haven't but unlikely to start a debt deflation as a

result of this also, the continued expansion of the money supply makes it highly unlikely that price levels fall. it's much more likely not right away but starting late this year and next year seeing an acceleration of inflation. >> the counter to that is the high debt levels on these companies, even if it's backstopped by the fed has to be repaid some point, this's an argument for a much slower growth period, that's an argument for japan zombie-style growth for a decade? the argument is that's a big overhang that keeps this from being anything close to inflationary. >> it depends a lot on what the fed does with the repayments remember, they are the leverage by which those special purpose vehicles are lent out. now let's say i start repaying the treasury gets its tranche and the fed gets its money what is the fed going to do?

it is a lot like running the bond purchases, you know, just letting them run off generally they didn't do that. my suspicion is going down the road they're not going to let the money that's being paid back simply run off either. >> i want to talk to you more about what exactly that would look like but for now the idea is out there and see if they hint in that direction or not and could make for a much stronger economy, obviously. thank you. it is good to check in with you. >> thank you always a pleasure. >> larry lindsey, the ceo of the lindsey group. deirdre bosa has breaking news on softbank. >> the international arm has cut about 10% of its total staff, this according to a source familiar softbank declined to comment and bloomberg first reported the news according to the source to affect about two dozen employs globally and doesn't include

employees of arm or fortress and separate from vision portfolio companies which on the own announcing significant layoffs, remember, we have been talking about this this week they report in mid-may and expecting significant losses thanks to that $100 billion vision fund an losses in the likes of wework and just this week revising the losses down further for when it reports so again we'll keep our eye on this but softbank's international arm cutting 10% of the staff. >> big hit we have been following all week. thank you. coming up, text the store and wait in the car. that's the new normal at this mall opening curbside delivery a few hours ago and speaking to the owner about that and how tay plan to keep people safe. the dow down 640 points. we'll have more on the other side of the break. you can always watch or listen to us live on the go on the cnbc app. "the exchange" is back in a

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welcome back let's get you the latest in the coronavirus pandemic over to sue herera for the headlines. >> thank you very much good afternoon, everyone new york's governor cuomo says that state's schools and colleges will remain closed for the rest of the academic year. a decision on summer school will be announced at the end of this month. the sports industry will lose about $12 billion in revenue plus hundreds of thousands of jobs as a result of the coronavirus pandemic that is according to an espn report. and the kentucky derby will not take place tomorrow though the racetrack resumes may 16th but without spectators. you're up to date. you can get more on the coronavirus coverage by going to cnbc.com kelly? >> i wonderif they'll take bet on the races the entire sports betting industry is looking for places to put that are money.

>> i think they will be taking bets. >> whether official or not, i bet the bets will happen. >> as well as the mint juleps. >> we can still do that at home. thank you very much. my next guest is in the thick of trying to reopen his malls in michigan and florida. as both states start the process of reopening the economies this weekend. i'm joining bid nate forbes. nate, welcome. and how's it going with this text pickup service in michigan so far >> well, we just started, kelly. we have about 43 of 170 stores participating this morning and it is as easy as pulling into the parking lot, texting your store and they'll bring the merchandise whether you ordered it online or direct with the sales person bring it right to the door, to the front door of the shopping center, open the trunk, putt it in and away you go we are starting to figure out

how to condition the retail tore the new world of retail. >> it sounds like make it suggest it is stores are really looking for ways to stay connected with the consumer because this is existential for them. >> sure is they have been thinking about it for several weeks and the minute we could open, at least with curbside delivery, it's a way for them to connect to their consumer, keep in mind this is going on for about a period of two years in retail space and we have to condition ourselves to be agnostic. the developmenter is almost as a conduit as to how we get them the goods and services and whatever to do to facilitate that transaction becomes very, very important to the retailer and the consumer alike. >> some other way that is the mall experience will be changing i think people are interested to know is the hours are cut to clean more, 11:00 to 7:00 in the week, 12:00 to 6:00 on sunday, limited entrances.

the tables i thought in the food court, interesting, color coded. once somebody gets up, the next people can't sit down until they're cleaned and then play the music a little louder for a positive atmosphere. >> yeah. we are really trying to think of a theater around retail. we want it to be an energetic experience for the consumer. we want to think about the good that's ahead of us we have a ramp-up period to happen that knows how long that will be and start out with social distancing guidelines, we are going to eliminate half of the seating in the food courts, color code the tables so you know when a table is sanitized, have the guest services people in the center all day long opening doors and bathroom attendants to make sure you're comfortable that the sanitation aspect of goirng shopping is totally removed from your thought process so we're thinking through on how we make retail more like theater. >> so let's get to the really

hard part of this which is in either cases you have a pandemic and how do you -- what point can you be profitable? how much foot traffic do you need how many stores are reopening and how many aren't? it's one thing to be encouraged by the early signs, the creativity, the innovation and another thing to realize it might not be a viable way to stay in business long term. >> we don't know how many stores will open. the best guess is in state of florida opening in orlando and naples on may 11th so that gives us about nine days to work with the retailer dos get them prepared to bring the employees back, get the stores in a position with the proper merchandise and the proper sales floor with all the proper social d distancing and other aspects in place, train their employees to make sure they treat the customers properly i don't know what the runway is

going to be but we are going to be patient, we are going to work with the retailers, work with our consumers. we are going to adopt and change each and every day to make sure we leave an impression on that guest that they feel safe, they feel comfortable and to make that experience in the shopping center and in the retail store the best we can possibly do. >> i want to just sneak this in. we showed 19% of the rent was collected in april i thought it was interesting you said you think may will be worse. how much worse and then what do you think june and beyond start to look like >> so keep in mind that everybody has a little bit of an internal process to go through so all the retailers that are evaluating the cash flow needs and cash flow situation within their particular companies are going through the same process we are shopping center owners we have mortgage payments, insurance payments, utility payments, employees, we have not laid off or furloughed one person since a

lockdown in the respective states so we have our analysis to go through. the retailers haveanalysis to go through in the month of april we clektded across the portfolio just under 20% of the rents. i think may will be somewhat less than that if we're able to open fully all of our doors fully in the month of may hopefully june we begin to climb back to get to a normalized level whatever that is. >> yeah. no as you said, it suggests it's a big hole to climb out of and doing everything you can to get people in. good luck. good to speak with you. >> appreciate it all the best. >> president and managing partner of the forbes company. coming up, worn many hats including state governor and homeland security secretary, now the president of the university of california. janet napolitano with a look at how the school is hit by the pandemic on multiple fronts and the letter asking the state for help that's next.

welcome back to "the exchange." here's a check on markets. dow down 612 worst performer is nasdaq today. down 3.5%. dom? >> kelly, the dow, the s&p 500 and nasdaq notably lower. the dow down as much as 647 points so like you said right hovering near the lows each sector in the s&p 500 is also lower on the day. consumer staples, communication services an utilities holding up relatively well. meanwhile you have consumer discretionary, financials and energy the real laggards today some of the stocks to watch includes clorox. the maker of bleaching and cleaning products to charcoal

and water filters posted better than expected financial results helped by surging demand for cleaning products due to the coronavirus pandemic watch shares of ole dominion freight line the company getting some help of of a new stock buyback program and the airline stocks all taking a hit american airlines is down after analysts cut their target price to $1 a share from a prior $10 so watch all those airline stocks today. >> a dollar a share? >> $1 per share. >> delisted? i think that's the cutoff. >> you have to look at what the listing requirements would be. too early to say right now but if the target price comes to fruition, american is one of the ones more heavily burdened with the capital structure maybe not as strong as the other airlines oar for sure

thanks more on that in a bit. well, the coronavirus pushing higher education to a near breaking point. before the pandemic, colleges already running on thin margins and now additional costs and lost revenue the world's largest public research system university of california looking at $500 million of costs in march alone and colleges across the country face difficult choices joining me now is president of the california university system, janet nap to tholitano. >> thank you. >> are you retiring this year still? >> i'd announced in september that i would step down as president of the university on august 1st of this year. so yeah. it's quite a swan song if it's a swan song. >> the irony is so many of the universities who have hospital systems are much more hard hit because they're losing that hospital revenue right now so how much is that contributing to

the challenges you face? >> well, you noted that for the month of march alone we were down about 600 million and that was split almost 50/50 between lost revenue at the hospitals and having to give housing and dining refunds to our students as we converted the campuses to online learning environments and so, we're waiting for the april numbers but they'll be larger. >> you have written a letter to the government of california basically saying, please don't take our revenue away because you guys need it, you know, for other sources right now. obviously the need is great from all corners of the economy do you think you might seriously lose some aspect of that funding and what would happen if so? >> so we're planning to a number of different scenarios i don't think we'll know until the late summer, early fall when

july tax returns are in what the california state budget will look like. we also won't know what enrollment looks like. we have statements of intent to register today and so we'll know kind of a preliminary number but won't know how many students show up until classes begin in the fall so we're planning to different scenarios and then we'll have to see how they play out. >> could you give us some insight to the numbers we have spoken with a number of colleges this week including purdue and northwestern and trying to look at different options. nern said they might look at nearby hotel rooms to spread students if they have social distancing, purdue said they don't know how many people will show up because the idea of taking a gap year is traveling or going on an international experience that may not be feasible right now so what are those different scenarios and anecdotally what are you hearing about the likelihood that students don't show up? >> you know, you hear different

things but the point of fact is that the university of california is still going to be offering course content in the fall just as we have done throughout the spring students can make progress toward their degrees so as they decide and make their own choices, you know, the university has got to remain open for them. might be remote. it might be in person. it might be some sort of hybrid. one of the things that is a hallmark of the university of california is we have very robust financial aid so, for example, for a number of years no student from a california family that makes less than $80,000 a year, they don't pay any tuition or fees already. and we have indicated that we are willing, able and prepared to go back and revisit every

student's financial aid package given changed circumstances in their own families. >> in other words trying to give more aid if they need it now but didn't think they'd need it before do you think you will have students on campus in the fall when's the deadline to make that decision >> so we have ten campuses, nine of which take undergraduates and they each are doing their own planning now i think they will all have to meet minimum safety standards to reopen if they're going to reopen at all. they'll need to have a testing plan, a contact tracing plan, a quarantine plan. things of that sort. and as they make those decisions they'll be announced we have 2 of the 9 are on semesters so they begin earlier in the academic year

they'll begin classes in august, early september. the other campuses begin later in september and so, the students will be informed well in advance of what the campus is going to offer as they make their decisions of whether or not to actually enroll. >> but i imagine that going back to the university system overall if you're potentially going to see a drop in foreign students and the summer classes, those are typically the people paying full freight. >> that's right. and we do anticipate a large loss in international students, partially due to the travel restrictions caused by the pandemic partially because of the increased difficulty in getting student visas to the quite that was a separate, independent issue with our foreign students. >> yep blows like we said on a number of fronts with big key decisions

yet to be made please keep us posted and thank you for talking about what you're working on or working towards. we appreciate it. >> thank you very much. and as she mentioned may 1st is a big deadline. decision day what happens to students heading to college this fall may 1st is when they're supposed to be making the final college choice and more students need financial aid now than previously thought so and may have missed the key ned lines. let's get to sharon epperson with more on this conundrum. sharon >> the coronavirus pandemic is really hurting college affo affordability. among american high school students more than half of them have a parent or guardian that lost a job, laid off or furloughed and more than a quarter say now the first choice for college may not be affordable for their family. families need to realize that financial aid decisions for the fall for the upcoming year based

on 2018 income so it's very important to let the schools know how your financial situation changed and why. you want to find out from the school's financial aid office what the appeals process is either send an email or use an official appeals form maybe on the website and document your case with the termination letter, a furlough letter, bank statements and be specific about how much money you need at this time we have a lot more on this on cnbc.com/invest in you kelly? >> heard from janet napolitano, the colleges try to be flexible, with more resources maybe help you out. thanks >> and there are a lot of resources to get this information, they need help, they don't know where to start in terms of writing this letter, there are websites like admits with student to give you that free template to write that awards letter and go to a company like tuition fit actually upload your award letter, see what other families in a similar situation have

gotten and have a better gauge so that you can negotiate a better deal. >> wow good to know a lot more info online thank you so much. >> sure. still ahead, sheares of tesl down more than 10% details and what else the billionaire had to say are next. a few more travelers through e ildialrspoints but the numbe arstl sm since 1926, nationwide has been on your side.

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.

♪just in case i see your face♪ ♪i may be acting crazy now it's getting late♪ ♪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 ♪ welcome back shares of tesla are down more than 10% to $702 and change after elon musk himself this morning once again tweeted that the stock is too high. phil lebeau has more for us. >> we have heard this from elon musk in the past, and at least five examples back to 2013 with a comment of the stock price being too high or overvalued so looking at what happened today,

this is the tweet sent out a couple of hours ago before the stock to move lower. he tweeted tesla stock is too high imo, in my opinion. looking at shares of tesla see that the stock moved down almost immediately and not recovered a whole lot since then by the way, we reached out to tesla communications to see if this was an approved communication, an approved tweet. they have not responded to the repeated attempts to get a comment regarding this among the other tweets that musk sent out today, active on twitter, i'm selling almost all physical possessions, will own no house and said give people back their freedom remember the other night in the tesla earnings call he tacked about the fact that he thinks the shelter in place orders are really imprisoning people in the houses and should be allowed to go out and not kept in the homes as remember tesla it reported a q1 profit earlier this week and briefly yesterday the stock was over $800 a share for the first

time since february and now trading at just over $700 a share and we have tried the reach out to tesla xhungs as well as elon musk. now there is a dow jones flash saying that elon musk did not approve this communication with tesla communications so we haven't been been able toy that a lot of people are wondering, was his account hacked was this joke? what was he trying to do here? >> they said was hi tweet vetted and they wrote back no thanks it's always something with tesla and elon musk. coming up, there's been a surge of private conneequity moy we have the plans for the hard hit companies. as we head to break, let's look at the biggest laggards. exxon mobile, the second worst performer with a 6% decline.

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welcome back names like expedia and cheesecake factory are among the hardest hit publicly traded companies. we have that story >> investors including private equity have deployed nearly $6 billion into dispressed companies this year. the highest volume since 2008. these deals do come at a cost. in some cases diluting existing stake holders and pushing for board representation to discuss more about how the deals are constructed, let's bring in the co-founder.

how should investors read into the surge in pike deals? >> thank you, seema. thank you, kelly for having me on today sponsored pikes are tailor made for the current environment. what they do is they provide companies that are looking for extra liquidity, extra capital with three things. first, certainty on terms, which is incredibly important in a volatile market like we have today. two, customization and so the ability to sit down and negotiate a highly customized instrument that works for both the company and the investor in size is incredibly important three, sponsorship one of the things that you mentioned earlier, board representation, there are companies that are looking for that vote of confidence and having a blue chips, smart money, private equity firm invested in those companies provides that.

i think one of the things you have seen with my of these announced over the last few weeks is very stock price performance in issuing company post-announcement. >> yeah, the stock reaction has been positive following that deal with expedia, polo global and silver lake partners putting over a billion dollars to work >> unusually, with these transactionsing a highly negotiated set of terms where there is limits to what investors can do in terms of influence at these companies and the vast majority of these situations these are private equity firms that are looking to be constructive they are looking to add value to these companies and there's very little risk in the pipes we've

seen over the last number of wee weeks. i think this is good example of where private equity is providing a real support to companies. >> now the show is about to, can you give us a few example of successful pipes deal from the last time around so people can look at how this will work out well instead of how it will pile on more companies. >> with all financial service

companies those transactions were done at a moment when people were looking for somebody to stand up and say i believe in these companies. these will be industry leaders >> all right you should ask the interview candidates how to announce that. thank you very much for joining us seema really appreciate it breaking news kcoverage rols on is it just hang over from a historic april or something more as states across the country start to reopen, does the business world need to brace for a tsunami of bankruptcies? we'll debate when power lunch starts after this quick break.

welcome back welcome to a friday and to my kitchen. our breaking news coverage continue s as we look at the markets on a downwards trend stocks under pressure to begin this month of may. the down down more than 600 points after april was its best month since 1987 number of week earnings reports one of the reasons why the market is stelling off right now and the earnings reports detail strain of the coronavirus impact that is under girding this market sell off from apple and amazon to chevron and exxon.

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