have is gold currency for me. >> 12% mr. 12%. all right. pete, get us out. >> yeah. there's a lot of liquidity out there going towards the bond market but i like this material space. i'll give you tech resources. >> thanks, everybody kelly picks up the breaking news coverage now thank you, scott welcome, everyone. a mixed picture for the markets as we kick off the first full week of may. dow's down 202 points. s&p down 13. nasdaq bucking the trend today this weekend states started to open up. but despite a flurry of activity looking at travel, entertainment and retail, it shows you unless this trifecta is back on track in a big way the economy is stuck in neutral we pick up on that topic with bob pisani this afternoon. hi, bob.

>> i watched warren buffett over the week he didn't buy much a great bargain hunter like him? people were surprised like that. he didn't pick up the bargains out there and why i think we're down today let's remind everybody out risks for may. reopening slower than expected i think people feel that there you see the index, s&p 500 is off the lows right now. reopening slower than expected economy reopening doesn't go the way everybody wants it to go maybe flagging fiscal monetary stimulus the aid to states and cities is debated right now. the airlines are hurt as mr. buffett left that position completely new low for luv, that's within of the big airlines out there. american air, united air, delta and american a downgrade over at barclays all the big industrial names,

caterpillar, boeing, all to the downside the leadership group all the work from home stocks benefiting in the last couple of months so walgreens, walmart, home depot, apple and microsoft. back to you. >> thank you gearing up for earnings season with 150 companies in the s&p giving the quarterly numbers. analysts expecting first quarter properties down 14% this year from last year let's talk more about this, about some themes that bob mentioned, joined by hugh johnson and paul christopher hugh, there's a bunch of different places we could go but i want to start on your kind of theme or idea here which is that we need three conditions before we have the all clear for the stock market and how many of the three have been met so far >> not much of them. you get -- moving in the right direction. first thing you have got to have is good performance, bull

market-type performance from the equity markets and we're not seeing that yet. yes, the s&p is going up but when you take a look at sector performance we see the defensive sectors doing the best like health care, doing well. staples doing well we are starting to see a change there though with consumer discretionary, technology stocks an communication services stocks do better the second thing to see is leek to see good news or like to see the market performance in response to good news on the pandemic we're getting a little bit better news, encouraging news but not far enough along and the third thing to see is the market being priced right has to be undervalued and widespread pessimism we have to be at an emotional extreme and we are not there yet. we are still a little bit overvalued 9% and over the level i think we bottom out at and the level of pessimism is high so you have

three conditions we are starting to move in the right direction. things are getting a little bit better but we are not there yet. i still think we have about 9% left on the downside in the s&p 500 as a guess in an uncertain environment. >> okay. you say because of everything that you have just described you want people to be defensive. consumer staples, health care an utilities. paul, kind of keying off of that, we are going to hear more from companies this week with earnings are you learning a lot from that are we finding out who has the stronger balance sheets and are we getting real insight on trends in the economy or not >> we're not getting a lot of new information on terms of who has the quality balance sheets we had a good, strong sense that that was found in consumer discretionary, tech and com services we have a sense that analysts on the street too high with the earnings number so could be some

choppiness in equity markets coming up. >> this week we've sort of passed through the big tech companies, seems like the excitement is out of the air you would be unfavorable on industrials, materials, energy and so forth there seems to be consensus around the parts of the market everybody seems comfortable and avoid the names that are out of favor. paul, perhaps the most striking to me is what bob pisani mentioned is berkshire is not buying anything here and talking about waiting to pounce on a big market opportunity and maybe no one's come to them yet with one and they haven't moved yet, have they >> they haven't. we think it's an environment where you can put money to work. we see valuation, good value in financials we think there will be a rebound and financials benefit and the yield curve to resteepen we like that play. we also recently moved into

health care out of real estate and i'll say, look, you've got some high performers that are driving the market right now in tech, in com services and consumer discretionary we think they continue to drive the market going forward because this is the stay-at-home environment we are in right now they'll be favored. >> hugh, would you also be a buyer of the so-called stay-at-home stocks? >> yeah. i would be buying -- i'm just starting to buy the bull market sectors. we're talking about consumer discretionary, communication services and technology. i would gate foothold in the stocks because one thing that's think about this pandemic and this bear market and what's true of all bear markets and pandemics is they end. this one will end in the third quarter or first quarter of 2021 and have the bull market stocks for that and the ones paul mentioned and sectors i just mention reasonable doubt the

ones to have so start to buy those sectors. >> all right we'll have more on this later on for now, thank you both. we'll move on to the fda news today announcing they will tighten regulations on all those antibody tests on the market, a market that expert dr. michael olsterholm described as the wile, wild west. let's get to meg tirrell. >> remember back in march the fda basically opened the flood gates for the antibody tests and now they detected some fraudulent tests out there and trying to tighten the guidelines overall so what the new regulations do is say that all companies must submit the validation data to the fda within ten days, also setting thresholds of what the tests need to meet for sensitivity or the ability to detect true positives at 90% and specificity or true negatives at 95%

fda also saying as of this point it is authorized 12 tests including just recently from roche and reviewing 200 and that's the scope of how many out there on the market and we want to update you on a story we have been talking today about gilead's remdesivir. the u.s. is going to be controlling distribution of that drug and in a statement to the ylan muoy from fema saying it will be distributed to counties by the commercial provider based on a plan approved by the white house task force so we're learning that they're macking decisions of how it's allocated and analysts saying this is unprecedented in the history of the drug history and a question with the limited supply of the drug what will happen when it's approved in other countries and we understand europe is reviewing it now japan may be approving it very soon so it will be a big question, kelly. >> if gilead can't make enough

to meet demand, somebody will have to choose who gets it first. is it going to be the company? >> nope. it is going to be the white house coronavirus task force that's what we just learned from fema so we know that the u.s. is controlling this distribution. >> yeah. >> and they're in control of where the drug goes. >> yeah. and, meg, on that roche test, we heard from the ceo furious of how poor the quality of the tests were on the market for the antibodies their test they said is 100% positive detection, 99.8% on the negative side so they said what is that? 2 out of 1,000 with a false positive i know they can't be the whole market but you really hope that this test is the one that most people are getting, right? >> yeah. absolutely just remind us that not all these tests are created equal. if we are going to be getting the tests we should look into what the specs are and try to choose one that's reliable and

then even i was talking to scott gottlieb saying you should get multiple tests if that's a true positive probably two. >> one quick thing, the roche test they said i think 100 processing centers in place but is that enough to get the results quickly? will we be in a situation with the covid-19 tests themselves? >> i guess we have to see. sounds like it's easier to process than the pcr test so it shouldn't see the same kind of hiccups but there is going to be huge demand an have to watch how that goes. >> for sure. at least the science i guess we call it is more positive meg, thank you so much coming up, some states are in a rush to reopen as the budget shortfalls swell. what if the federal government doesn't step in? even the stocks rebound off the lows, a familiar problem in the market can we follow the leadership we'll explore that.

could the pandemic lead to a bigger acceptance of online gambling the rush for new sources of cash coming up. these days staying connected is more important than ever.

so we're working 24/7 to maintain a reliable network, to meet your growing internet needs. we're helping customers who are experiencing financial difficulties stay connected. we're increasing internet speeds for low income families in our internet essentials program. and delivering self-install kits to your door. nos comprometemos a mantenerte conectado. we're committed to keeping you connected.

for more information on how you can stay connected, visit xfinity.com/prepare. welcome back white house economic adviser larry kudlow not ruling out another stimulus package but saying it may not be happening any time soon. let's get to kayla tausch e with the latest

>> reporter: senators come back to the capitol this week and not discussions on the next stimulus package and told by sources the white house, treasury department and senate leadership in agreement that the discussions should not resume until the money from the existing programs has been dispersed and spent that is not the case yet according to a schedule for the week sent out by leader mcconnell's office, here's on tap. votes on the inspector general for the nuclear regulator, other nominees related to the pandemic and national security and also a reauthorization for the fisa court program that's expired president trump said that democrats have been in touch about this next stimulus package and said in a town hall on fox news last night that more help is on the way. to be sure, the treasury secretary has even gone so far as to throat some of these items like infrastructure, incentives for restaurant, sports and entertainment businesses, a payroll tax cut for workers and some additional money for states as what the white house is

looking for in a future package but, of course, those priorities will be different from the priorities on capitol hill from either party and that work toward a compromise will again be hard fought the white house is working on a separate relief package on the regulatory and tax front they're squarely focused on ways to incentivize businesses and drive up demand as economic activity starts to build a little bit. >> kayla, we just got this headline from "the new york times" citing an internal document obtained saying the cdc projecting by june a surge of daily coronavirus cases from 25,000 to 200,000 and nearly a doubling of the daily death rate so i wonder, i mean, sort of speculating this is beneath the shifting rhetoric of everybody from scott gottlieb to the president himself. if this is born out i wonder how that changes the calculus and adds urgency for congress to

step in with relief even if the entertainment businesses don't see anything like the demand they would have hoped. >> reporter: well, kelly, there are two things there first, the president's rhetoric himself shifted in recrept days from 50,000 to 70,000 and then 100,000 figure for the death toll and even that could be a conservative estimate if that document that "the new york times" is reporting on holds clear but the white house is also continuing to say that this is dependent on states, certainly there are states like virginia, maryland, d.c. where i am right now where cases have not peaked, certainly you have seen the case count, the hospitalization rate continue to go up and that is what's behind some of the caution that has been -- that we have seen characteristic of dr. gottlieb and the warnings there and a few issues here and we'll see exactly how i plays out over the

next few weeks and whether the states reopening seeing the surges in cases they have to pull back, too, and what that means for the money needed. >> absolutely. thank you. we appreciate it let's look at how much more rescue money congress is likely to pass, especially coming to state and local budgets. joining me is michael zezas of morgan stanley you have a note an ultimately thinks legalizing gambling is a way to raise money an doesn't do anything really to close the gaps these are enormous gaps. >> that helps on the margins we are expecting that through fiscal 2021 states cumulateively are going to fall short of the revenue projections about $180 billion. if they drain the reserves, flatten out spending, maybe get that number down to $60 billion but they do have other pgss. they can borrow from the fed's

liquidity facility with $250 billion available and they can kind of spread that pane out over time. but still you have got some tough choices that need to be made this year down the road if congress doesn't come in with another appropriation. >> one thing i thought was little bit hopeful as a resident of new jersey even though new jersey and illinois face bigger budget holes they could weather it better than a state like texas because they have a lot of professionals to work from home still, generate economic activity and texas they're facing a crash in the energy industry. >> yeah. that's right there's a couple of important differences here so at least the economic trajectory basing this number on is a sharper downturn and you shouldn't get a downdraft versus the global financial crisis and unemployment benefits more generous with the c.a.r.e.s act and taxable and states tax

online retail sales. they didn't do that before so those are some of the ways that the revenue drop isn't as severe but, of course, still means you have to make tough choices, drain reserves and austerity is part of this and as we know 75% of the state and local government component of the gdp is public employee compensation and also a drag on the broader economy. >> sure. >> if there isn't another appropriation. >> the message is that even if there's a ton of stimulus on the federal level there's a lot of state and local austerity and felt by those workers primarily. i wonder what you thought of mitch mcconnell floating the idea that states themselves to file for bankruptcy. >> yeah. we commented on that and we told muni investors in particular we're worried about this it's not a proposal to worry about. one we think that it would require a law getting through

congress we don't think gnat democrats in house of representatives amenable to that talking about increasing aid by hundreds of billions of dollars and actually a constitutional question whether states can declare bankruptcy giving up the sovereignty to a federal bankruptcy court. >> fair enough so that brings us back to how the states are likely to try to make up the shortfalls what other options do they have? even roughly speaking, what do you think in terms of online gambling i don't know if we have already seen the legalization of cannabis to turn to. >> those things are on the table. generic tax increases are also on the table i think different states will choose different paths but i think using some reserves, flattening out spending year over year. takes care of a decent chunk of the problem. maybe using the fed's liquidity facility helps you spread pain

over a couple of years, with the intent that a stronger economic growth pattern over the next couple of years to replace some of that revenue. good news is the state budget pain acute right now you can spread out and it will alleviate the immediate credit concerns but that doesn't mean that states aren't functionally in a worse position today than before when all this started. >> some of them bad enough already. a final question from what you're describing to use the fed's facility, do they really need then a big rescue package from congress on top of the funds that they have received? if it sounds like they could find ways between the liquidity and spending smoothing of getting through this on their own. >> yeah. well, it is basically two different choices. smooth out economic pain over time or you atertempt to allevie the economic pain or keep it from happening

if the federal government appropriates $100 billion to the states that would fill the austerity hole, different than the fed to spread it out over a couple of years so a choice between two different styles of approaching the budget stress. >> all right we'll see which they and many choose michael, thank you very much. >> thank you. coming up here on "the exchange," as states begin to reopen, workers are facing a difficult choice we'll have more on that. plus, be prepared for a stock to fall 50%, that's what warren buffett advises and he is not immune remember you can always th th or listen to on the go wihe cnbc app. "the exchange" is back after this e 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 ♪ that's why working together ist more important than ever. ♪ooh at&t is committed to keeping you connected. so you can keep your patients cared for. your customers served. your students inspired. and your employees closer than ever.

our network is resilient. our people are strong. our job is to keep your business connected . it's what we've always done. it's what we'll always do. welcome back now to the very latest in the coronavirus pandemic over to sue herera for the head leans. sue? >> thank you very much, kelly. hello, everyone. new york's governor cuomo is

warning residents that reopening the economy all at once would likely cause a resurgence in the number of cases. >> i get the whole liberate movement there's no reason for a closing of anything, just open everything up. and let everybody go do whatever they want to do. i get that argument. yes, people want to get out. on the other hand we want to do it in a responsible way. a ten miami dolphins revealing plans on how they intend to maintain social distancing at hard rock stadium once games kick off there again. the stadium normally holds 65,000 people. that would drop down to just 15,000 fans under the new guidelines. you're up to date. you can get more on the coronavirus coverage by going to cnbc.com kelly, back to you. >> interesting thank you very much. reopening the economy is posing a dilemma to some workers

left feeling to choose between their health or livelihood rahel solomon explains >> yeah. it is a dilemma for a lot of workers who have to decide do you return to work when you think it's still potentially unsafe or risk losing your unemployment benefits? federal guidelines state a refusal to work could mean forfeiting the benefits and state labor offices say each case is specific a general assertion that your workplace issen safe because of coronavirus will not suffice saying you have to demonstrate why it's unsafe. although they do say that each employee feeling this way to reach out to employer to reach agreement. we spoke to a worker in texas, she says that her immune system is really low, really weak and that when she realized that her restaurant in texas reopening last friday she was panicked

>> i literally stayed up the whole night on wednesday i did not sleep for one second because i was so worried and so scared and i feel like i have so much anxiety right now >> dulce said she explained the condition to the manager and the concerns and both agreed to stay home for now but, kelly, this is also a concern for employers. the state of colorado reports more than 124 refusals to work, a challenge for wokkers and employers trying to reopen. >> it is so complicated. if they refuse to return or i guess if they don't take an available job you could lose your benefits? >> no, that's exactly what it is and that is prior to coronavirus. but that's still very much intact and amidst the pandemic if the employer makes sure that you can socially distance, there are hand washing stations,

making sure as best as humanly protecting you it could be hard to prove that's an unsafe working environment but again for people like dulec with a weak immune system, they don't feel like now is the time to return to work and still too dangerous. >> great reporting thank you so much. we appreciate it coming up, he called for relief rally two days before the bottom nailed the forecast to the s&p during it and now a new message for investors. head of equity joins us. usually warren buffett buys what others is selling he sold the airlines, too. we'll have details ahead ♪

this virus is testing all of us. and it's testing the people on the front lines of this fight most of all. so abbott is getting new tests into their hands, delivering the critical results they need. and until this fight is over, we...will...never...quit.

because they never quit.

welcome back to "the exchange." nasdaq hanging on to a gain. dow down 213 let's gate check on the markets and the big movers today with dom chu. >> we have the dow, s&p and nasdaq moving to the down -- nasdaq just about flat but at the lows of the session the dow was down by around 362 right after the opening bell the s&p lost 33 points at its lows of the day. on a sector basis you can see it's a mixed picture energy and technology, economically sensitive sectors outperforming but the same sensitive sectors are also lagging. check out the financials and industrials there. some of the stocks to watch today, tyson foods down over 8%, one of the worst performers in the s&p reporting profit and sales that missed forecast due in large part to the effects of the pandemic adding that it cannot say when those challenges will end but right now it is not all negative shares of roku higher as investors gauge how much the

streaming b streaming companies are benefiting tael tesla looking to rebound following the ceo's tweets last week saying that the the stock price was too high and the stocks in the green in an otherwise red day. back over to you. >> thank you. let's get to some of the big calls of the day disney making headlines with a new "star wars" films. may the 4th be with you. it's downgraded to neutral believing that economic impact of disney from covid longer than most anticipate. they warn that shares are in for a stretch of lowered earnings. shares down almost 4% today. next to big lots upgraded to outperform with a $31 target they met with the cfo and ceo and came away with confidence and saying that the big lots in solid financial position this is sometimes mentioned as a

stay-at-home trade beneficiary americans sidible debt limits the ability to reopen and caution there's little room for current equity holders as pension shares are a liability shares are down today. the entire industry is down. these moves after warren buffett announced at the annual shareholder meeting that berkshire sold the stake in the sector saying that the future is much less clear about how the business will turn out and changed in a major way and many of the attention grabbing headlines from the oracle. becky quick joins us this afternoon with some of the other highlights, as well. >> nice dancing there. anyway, warren buffett took the stage in omaha, the big difference the center was

completely empty none of the 40,000 or so shareholder who is usually attend was there but that doesn't mean that the message wasn't heard never bet against america he said he walked listeners through the difficult times, the american survival in the past and buffett said to weather the storm, too if you thought it was a screaming buy signal, think again. >> i'm not recommending that people buy stocks today or tomorrow or next week or next month. i think it all depends on your circumstances but you shouldn't buy stocks unless you expect in my view -- you expect to hold them for an extended period and prepared psychologically and financially to hold them the same way you would hold a farm and never look at a quote and never pay -- you don't need to pay attention to them. main thing to do and you're not going to pick the bottom and nobody else can pick it for you.

you have to be prepared to when you buy a stock go down 50% or more and be comfortable with it as long as you're comfortable with the holding. >> buffett did offer high praise to jay powell, the federal reserve chairman, saying the actions elevated him to a level reserved only for paul volker. >> jay pow knell my view and the fed board belong up there on the pedestal because with him because they acted in the middle of march probably somewhat instructed by what they'd seen in 2008 and '09. they reacted in a huge way and essentially allowed what's happened since that time to play out the way it has

march when the market has essentially frozen, little after mid month, ended up because the fed took the actions on march 23rd ended up being the largest month for corporate debt issuance i believe in history and then march was a larger month and you saw the companies grabbing everything coming to market and spreads narrowed and every one of those people that issued bonds in late march and april sent a thank you letter to the fed because it wouldn't have happened if they didn't operate with unprecedented speed and determination. >> that action from the federal reserve may be why berkshire didn't spend more of the cash hoard that ballooned to $100 million.

buffett said lots of companies got access to the public markets and got better rates than from berkshire hathaway back to you. >> we are trying some new things over here. on the airlines, becky, it is fascinating because he had finally just said, you know, he's been so over the years insistent on the fact of uninvestable, finally invests in a swath of them and now this happens an exited the positions again. it's almost like an moby dick. he is captain ahab or something. >> right some of the questions from shareholders asked just that, why didn't you call airline anonymous before making this announcement he said it was a reasonable decision and thought to get about a billion dollars in earnings from those companies and made sense when you were putting the money in at that point. he said when the facts change you have to change your opinion with it and that's what he does. he says when he changes his mind

he does it all the way and not partway. >> i love it there's tiktok videos all over our neighborhood. >> do it with me. >> i'm not i don't have the moves she said as she tried. >> clearly i don't either. not that it stops me. >> becky, thanks good to see you. >> see you. turning to oil now, a standoff over production cuts in texas has ended with the proposal being withdrawn texas railroad commissioner sitten said there's not enough votes to pass. an the back of the news crude is taking it in stride up a little under 3% right now. coming up, ohio's a many state starting to reopen and columbus one of the cities there in a big financial crunch. we'll speak with the mayor about the plan to weather this ahead.

plus despite the markets plunge and dramatic rebound, we are back to a familiar old problem. stay with us yeah, everything is running smoothly with the now platform. (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you.

won't be a new thing. and it won't be their first experience with social distancing. overcoming challenges is what defines the military community. usaa has been standing with them, for nearly a hundred years. and we'll be here to serve for a hundred more. confident financial plans, calming financial plans, complete financial plans.

they're all possible with a cfp® professional. find yours at letsmakeaplan.org. welcome back florida is scheduled to reopen certain businesses in the state today. sam brock is live in clearwater beach, florida, with the latest on the moves sam? >> reporter: good afternoon. there is this entire ecosystem here in florida tied to the beach. you see hotels and restaurants, retail stores reopening today. pinellas county, in the tampa bay area, part of the sections of florida reopening today a quarter capacity of restaurants, sit outside but it also means you have to be six feet apart and for three major communities, miami-dade county, broward county, palm beach

county excluded from the plans talking about jobs right now, somewhere in the nabld of 1.2 million plus jobs tried to hospitality in the state of florida, that was the case before coronavirus here in pinellas county you have somewhere in the effect of 150,000 jobs of pinellas and hillsborough, so many jobs tethered to tourism. thousands have been lost furloughed, of course, as well pervasive in the industry. what we are seeing today right now though is the beginning of beaches opening and restaurants opening. doing it very carefully. there's signs of six feet social distancing, generally not seeing large crowds beyond ten but you can see there are some groups gathering. police on top of that but they know it's a vital cog to getting things going again here in florida with very trepidatious, slow steps to get things back online and after what we saw on this very beach clearwater beach

six weeks ago for spring break you remember the images. so many people concerned that that level of congestion to be spreading the virus so slow baby steps in florida that's what we are seeing right now trying to reenergize the economy here and throughout the state. >> now too seems like air conditioning a bigger threat than the open -- outdoors. sam, thank you we appreciate it. >> that would be nice. thank you. another state preparing to reopen is ohio 4 of the 5 cities there facing the biggest fiscal impact of the pandemic all in ohio columbus with the stop spot. joining me is the mayor of columbus, ohio, andrew ginther welcome. i guess you're so hit by this because it's income from income tax and employment has taken a big hit. >> yeah. we are very unique here in ohio. the % of local governments in the country funded by an individual income tax and puts

ohio cities, you know, very grave risk we have colleagues in cities around the state that are already furloughing and laying off employees and as you know basic city services focus around health and security but 78% of our revenue for core city services comes from income tax and so, you know, obviously we have a very diverse economy here the largest private sector employers, many employees work remotely and continuing to pay income tax and we also have major public sector employers here in central ohio, as well. so with reduced revenue obviously contemplating reductions in workforce. >> sure. i want people to be aware of and showing some companys that are headquartered in ohio including a lot of retailers

>> yes. >> is that an additional hit or are the other companies there, miracle gro, are they able to offset the direct hit? ishld mention as you discussed this, you helped to lead the way out of the '08-'09 downturn. >> absolutely. >> maybe helped ohio recover and could be very different this time around. >> absolutely. the metros of ohio provide 80% of the economy we had the fastest growing economy in the midwest before covid-19 and you're right before the great recession columbus was thought to be recession proof because of the balance and diversity of our economy but, you know, this is what we learned after the great recession is no one is recession proof and there's a hit here we are already looking at reductions in revenue for the second and third quarter contemplating a largest recession that lasts into next year or are we able to recover

faster than that you mentioned the brookings report and because of ohio's overreliance on income tax revenue for local governments and cuts at the state level, in the local government fund, it's put a lot of ohio cities in a dangerous situation. >> so what options do you have now? other sources of taxes property taxes do you just try to fix this cutting revenues which i imagine you can only cut so much. >> absolutely. there are many things -- >> of spending i mean. >> many cities around ohio made cuts to the bone before the great recession and so they are just offering the basic essential services now we have about 1$100 million in savings for a billion general fund budget and we have resources to try to weather this storm. but we're also making hard decisions. obviously no travel. and we've been able to realize

about $25 million in savings just in the first quarter or so by tightening the belts and looking at what we are spending resources on and even those resources that had been appropriated we held back on anticipating the economic crisis that we're trying to weather right now. >> is it possible that your revenue if they're income tax related more delayed than destroyed? >> there is that possibility but that's just why the fourth round of stimulus is so important, why we are pushing so hard and blessed with a bipartisan coalition of u.s. senators that have made funding for states and local governments to replace lost revenue a top priority as we move into phase four and additional flexibility. we receive resources through the c.a.r.e.s about to deal with the negative economic impacts as a result of this but it makes

phase four so important. and quite honestly, since cities and metros not just in this state, around the country are so important to any kind of sustainable growth recovery those metro areas have to be safe many of the reports that we've done showed just how critically important our metros are to our local, state and national economy. >> absolutely. mayor ginther, thank you best wishes to you and fascinating. never would have thought your community in ohio at the top of the list of vulnerability. thank you for joining me to explain. >> thank you coming up, my next guest called the march bottom and rebound in energy stocks and said the rally might be over. speaking of, look at the oil stocks today in the green bucking the overall trend.

again, some green spots for a -hector lately we'll be right back.

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. >> on a few different fronts the market is running into some familiar old challenges. one of which is the absolute level that the market has gotten to after the big april rally ta culminated last wednesday. levels up over 60% from the recent lows. both of those areas represent a bit of a friction point. it was a high in 2018 and again

last spring. it seems as if it's a moment to assess if the market is run ahead of itself. you have this top heavy nature of the index itself. a day like today those are holding the indexes up arguably create a bit of unstable market if it gets too lopsided final thing i would notice the the credit market. this credit rally is likely to go as far as the newly regenerated corporate market let it go. if you look at things like junk bond spreads they have not approved in three weeks as the equity market has carried higher >> well stated

thank you. my next guest called for a significant market rally on march 21st near the lows predicting the s&p would hit 2950 by the end and april and we have just about got there. he says this recovery has likely run its course we have seen a 50% pull back i think investors are worried about an l shaped non-recovery outcome in the second half it's a self-imposed depression and it's pretty frightening for consumers, business and it's affecting markets in general >> right the interesting thing here is that you connect this directly with the fed tell me about your strategy in general as it relates to the fed and what you think happens this time around. >> the fed is tended to act only

after an event it's best to step out when the fed steps in when we saw the fed satisfied, we felt like a lot of bad news had been mitigated the price has risen. >> if you're in scenario where you see we'll require another shock in order for the fed to do something, why can't we have neither? why can't we say we don't need the shock and we don't need the fed to do more why do you think that sequence of events is likely to play out? >> it's not entirely the fed consumers are terrified. we got some state governments drinking the kool aid, so to

speak, and delaying the reopening. i think the perspective is important. my concern is that a prolonged or recurrent shutdown will be the economic policy e kwif lents of jones town for gdp. we can't afford that >> if the virus causes more sdhounts, there's no way we have 2018 on where we are today what if there's no more shutdowns because there's no appetite for it amongst the public if. >> i don't think there is an appetite for it. i don't think politicians will take the risk as well.

we will probably see efforts to reflat the economy and really get some traction. when that happens, what will happen is pe multiples would contract even if earnings recover. stock market would just tread water for quite a while. >> last question, you raised your price target at the lows to 250. we hit that level. then you kind of moved to is sidelines. what's the call now that we don't run back above 2950 for the remainder of the year? >> i think the rally we've had since april 29th with defensive stocks and i'm thinking utilities, health care, consumer staple, i think they had a bounce after being sold off. it was risk on it was cyclicals everything from technology to energy to financials and industrials. they did very well i think as we get economic traction, if we don't have anymore shutdowns or talk of

that, if we get reopening going in the second half, i would favor the cyclical stocks as we close out the year that's what i believe be emphasizing mostly since i don't see a lot of s&p upside what i'm focused on is sector and industry and stock selection >> sure. there you heard it the cyclicals are the place to go thanks so much good to see you again. >> thank, kelly. >> or hear from you. don't go anywhere. coming up, we'll speak with a doctor who says reopening the economy is very risky because of the big gap of the perception things are better and the reality they are not colleges in crisis the university of michigan bracing for a billion dollar hit. we'll speak with the president about that ahead this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology

for smarter trading decisions. fidelity.

but when allergies and congestion strike, take allegra-d... a non-drowsy antihistamine plus a powerful decongestant. so you can always say "yes" to putting your true colors on display. say "yes" to allegra-d.

welcome back our continuing news coverage picks up now with "power lunch." welcome back to the kitchen. stocks are under pressure at this midday hour the dow pairing back some of those early losses this morning and the nasdaq is positive this as states across the country begin to reopen for business take a look at two stops weighing on the dow today. one would be disney getting downgraded on fears of a second wave of the coronavirus and boeing falling with the rest of the airline stocks today boeing not really an airline stock but dependdent on the airlines in as warren buffet