it is 5:00 in new york open for business. trying to snap a two-day losing streak looking to put their lockdowns in the rearview. going it alone l brands with a deal to take the company private. one major company laying off 30% of its labor staff to cut costs. beijing under report we'll give you a live report

coming up. pay day for elon musk days after he stated his opinion. tuesday may 5, you are watching "worldwide exchange. good morning, good afternoon, good evening and welcome i am brian sullivan. thank you for joining us on this tuesday, may 5 down one, up the next. maybe down the next. the market we've been living in looks to continue today as well. when we came in or started since many of us are still at home, futures are posting a solid gain of about 350-point jump at the open as you know, it is a very volatile market at this hour big moves tend to happen quickly. dow futures are still up only

about 40 points. no real reason for wild swings more u.s. states continue to try to reopen their economies in the days and weeks ahead new york state is the latest to say its lockdown measures could begin to lift as early as may 15, albeit in certain parts of the state. not new york city most likely and with very heavy restrictions getting back to business some what and trying to help crude oil prices come back as the demand story crawls its way back crude oil is back to $20 a barrel the market story of the day yesterday was airline stocks they got walloped on the news that warren buffett sold out of $4 billion worth of stake. let's check shares of l brands

not rebranding a nonsing it is terminating a plan with a private equity firm to take the victoria secret brand private. the company now says it will be cutting costs significantly and working to build up liquidity as most of its stores remain closed more on that coming up let's get the latest on the virus fight. rahel solomon is there at cnbc hq with that >> good morning. from japan to canada, australia to norway and even madonna world leaders pledging some $8 billion to help with the vaccine research after participating in a three-hour research call president trump skipping the chance to contribute the white house says the u.s. is pouring billions into its own research efforts

united airlines intends to shrink management by at least 30% starting in october according to a memo sent to the employees as the pandemic continues to wreak havoc cuts amount to 3,000 people. united up pre-market slightly above 2% shares of starbucks higher after the company plans to reopen 85% of u.s. stores by the end of this week starbucks initially will not allow diamond service but will allow for pick up and deliveries it expects to have 90% of stores open by june i've seen barristas will meet

you ought the door i do appreciate that >> we do need our coffee i have one in my kitchen that works out. reopening and restarting economies around the country is the most important data point. maybe the only one out of all of them that really matters the next guest says the markets may have gotten a little ahead of themselves around the world going to the head of strategy, joining us from london thank you for joining us we see the german market up 12%, the u.s. nasdaq up about the same in a month. it has been quite a violent rebound. there has been some hope about the reopening talk do you believe the markets may be overpricing the rapidity of, quote, getting back to normal? >> absolutely. i think the first thing is that there is a difference between

reopening and restarting to growth we are moving from a total stand still to a reopening we had the example of starbucks. you can't go in. it is limited hours. you have to pick up your orders. it is great we are restarting but the level of growth we'll get from that is not anywhere close to what we had precrisis when you look at the recovery throughout the month of april in markets. it is pretty much pricing in a seamless transition from crisis to post crisis it will become a little bumpier than what is priced in today >> you think the stock market rebounded too far, too fast? >> too far for sure. given the strength of the recovery or the rebound we've seen we might not retest the lows we are pricing in a little too much optimism.

it would be difficult to imagine that a three-week return to an economy that came a total halt are we going to get a second wave, are cases going to start spiking are we going to continue with this social distancing for a long time if we don't get back to the precrisis levels? we are just at the beginning of these bankruptcy announcements we don't know the damage or the starting point we are tentatively reopening in may but we don't know the figures yet. we may be under estimating how high unemployment might remain and what impact that could be on u.s. consumers >> it is interesting we know history suggests that almost every baear market has hd

a violent reversal going back to the crisis, the internet crisis where you get a big drop and period of slow decline. in those periods, we didn't have five, seven, maybe $10 trillion of u.s. federal reserve and treasury support how does the government backstop hurt or, i guess, work its way into your analysis about this market at all? >> the stimulus has been massive and it is one of the big differences in the past. policymakers have learned to be proactive and will have to wait much longer. the fed has been an example of covering every angel it can to help ease this and has held back confidence some of the fiscal measures at this point have been income

replacement and relief and stimulus that definitely does change the picture. the other part is exactly what you've said. we've always had a second leg or third or fourth leg. the risk i think is that it is almost a little bit consensus to expect another leg down and also why it might be milder than we think. when we look at the reality of the fundamentals today and you even think three to six months out, the picture is not all clear, i think at the moment, the market is saying it doesn't matter what happens in 2020, let's focus beyond that. you need to get priced in. >> i think we are can all say we are looking forward to 2020 being in the rearview mirror already and it is only may 5 thank you for joining us

be well. when we come back, we are just getting started a cnbc exclusive look at the housing market will a rush out of cities create a boom in certain economies. a new report turning heads at the top of china's government at the growing anti-beijing s t sentiment later on a stay-at-home stock surges. we are back with more on "worldwide exchange" right after this yes. the first word to any adventure. 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.

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

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good morning calling it the single largest catastrophic loss in the insurance company, aig says first quarter profit fell 93%. the fight over business interruption insurance is only just beginning it is going to be a fight to watch. in focus today shake shack and maybe a little bit of good news that says demand is beginning to pick up at some stores but warns of more challenges as it looks to reopen dining rooms in some areas shake shack commenting on how

beef prices have been fluctuating as plants have been closing. shares, by the way, are up 58% in just a month. quite a rebound stock. any kind of fast food restaurant i see is pretty busy right now >> a stay-at-home stock for students is soaring. chegg posting blowout earnings with subscriber growth most schools are closed for the remainder of the year. new jersey just announced that yesterday. chegg ceo will be on "mad money. the question there, just how long will our kids be home every

day, all day from dawn to sun set. i love my kids elon musk just qualified for a $700 million pay day we'll give you details when "worldwide exchange" returns after this >> announcer: today's big number, $3 trillion. that's how much the u.s. treasury department is borrowing this quarter i know that every single

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add a little more health to your day... with nature's bounty. welcome back good tuesday morning it is 5:17 this morning. shares of walgreens could get a boost. amerisourcebergen is said to be willing to pay walgreen will $6 billion for the unit they own about 27% and is its largest customer moving on, time for a cnbc exclusive on the housing market. a report from realtor.com shedding light on how the market has changed over the last two months one key take away, tight housing supply the number of homes for sale have gotten even tighters as

sellers pull their listings. i would imagine at the beginning of this crisis, the lockdown and chaos, home sellers pulled their listings off the market. any indication that has started to change or relief itself a bit? >> not yet, brian. in april, new listings were down 45%. normally we see huge sellers come up for the market in fact, we see the opposite compared to a year ago, listings were down about 45% almost cut in half. >> amazing one thing we've been talking about about a month now is this trend towards people in boston,

new york and d.c. that are either going to look to leave cities looking to rent or get out to buy. i talked to a realtor who said the market is on fire in our town of new jersey >> we have seen some shifts in traffic in major cities. isn't necessarily across the country. what is necessary is affordability and space. after being stuck at home, people are looking for a little more space as far as market movement, we've seen listings go down. we are expecting prices go down. they are up 0.6% we haven't seen any major shifts in prices just yet as you mention, the city versus suburb trend

right now, listings are down across the board if you are a buyer, it is tough to find a home no matter where you are. >> that might be why prices have fallen this contact i talked to that runs an office in new jersey saying prices have firmed up there is availability for loans. you've got tight supply and markets where you have certain availability of loans. that doesn't bode well for the broad swath of the housing market going forward >> we definitely expect transactions, the number of sales to trend downward in the short term as things get back to normal as things get back to work and things open back up, we expect sales to pick back up. there is a long lead time to completing a home sale

since people haven't been out shopping as they've been stuck at home, it will take longer a lot of those sales in april to may may shift and hopefully we'll see some things pick back up then. >> you are right you expect a double summer selling season and want to move for kids to be in school exuming there will be school there will be a mad dash in july and august >> a lot of the selling that would have happened in spring will shift it will be a bit compressed as people try to get the home sale and move completed by what is normally the start of the school season, hopefully that will be the case this year so agents, buyers sellers say it will be a busy late summer more than the spring this year.

>> danithank you we hope to seeu again soon let's switch gears and head to china the new report there that anti-china sentiment has hit the highest levels since 1989 ty enman square time. >> thank you researches have apparently flagged the dangers of this growing hostility to president xi jinping himself according to reuters, saying the global backlash is similar to worldwide outrage to the crack down of tiananmen square 30

years ago. this could lead to a shut down to projects like the road and making the security situation from china's perspective in asia much less stable the paper concluded that the u.s. would fan this sentiment as a way to undercut china's rise what is not clear is how seriously beijing's leaders would be taking this report. foreign ministry hasn't commented on it. i found interesting that this report leaked at all that highlights some of the divisions within the chinese government about this much more combative, aggressive style we are seeing come out of beijing >> going both ways i would imagine.

we have seen reports i look at the pages and the south china post that there have been some criticisms they call the american virus how much discussion about the united states is going on in the pain levels in the last two months >> there has been a lot of discussion on line of course, we don't know exactly the true nature of the discussion because it is all being sensored and vetted on line and on television for the most part, we do see a rise in nationalist sentiment. today, there was a lot of push back, as you know, president trump has been talking about slapping more tariffs on china and there needs to be more punishment on china for the way it handled coronavirus what we are seeing is, yeah, go

ahead. put the tariffs on and it will hurt your companies and by the way, we will not send you any ppe. you are seeing a lot of push back and anger but again, sensored, vetted we don't see everything. >> would imagine that would be the case, kind of amazing on line people are threatening to withhold medical protective equipment because of this rhetoric eunice yoon, we appreciate your reporting. talk to you soon strong stuff there on deck on this busy tuesday. neumann versus softbank suing the japanese firm and the deal overtaking gm and ford and no, it is not tesla but speaking of tesla, appearing to qualify for a massive pay dday days after

tweeting out the stock was you too high averaging over the six months. if that occurs, it will trigger mu'sayn $700 million payd i sk contract. futures back up 150. we are back after this feels like there's no barriers between departments now. servicenow. the smarter way to workflow.

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rally or realization that we have a long way to go as a nation to get back to any sense of normalcy. that is the question ahead businesses now facing another new hurdle virus related lawsuits the steps some leaders are taking to protect these drivers. major layoffs coming at united airlines management and pilots given a warning as there is no sign air travel is coming back anytime soon this is tuesday, may 5 you are watching "worldwide exchange" on cnbc. welcome back and good morning. it is 5:30 on the nose on this tuesday morning. i'm brian sullivan we've only been on the air 30 minutes but futures have already been all over the place.

they were up 350 when we launched they are down to flat. they are thinly traded and fairly volatile right now. the dow is up just 86 points that comes off yesterday's gain kind of a mellow monday for the markets as you might imagine here all of the markets if you are not keeping score are now less than 20% for the most recent 52-week highs. they've been a pretty violent snap back of the rally off of our lows of march 13 in the meantime, all attention will turn to one thing, the united states economy's plans to gradually reopen around the country. new york state, the latest to say its lockdown measures to lift as early as may 15 with

heavy restrictions helping to boost oil prices a bit. crude oil back above $20 a barrel a slightly growing demand there. nobody saying everything is okay in the oil patch pretty much every single oil company is losing a lot of money at $20 a barrel but at least it is not negative pricing. airlines are trying to bounce back after what is an absolutely terrible day for airlines off the back of warren buffett saying he has dumped out of the entire stake of airlines $4 billion transaction that set the stocks down big. they are back up a little bit. some major news on united airlines we bring you in a moment right now, let's go around the world. moments ago, a german court issued a ruling on the bond market let's get to julianna tatelbaum in the london news room.

>> that's right, brian a central feature of trade this morning was that constitutional german court on the leg at of the banks bond purchase program. much like the federal reserve, the ecb in europe has pledged and has bought bonds since the euro debt crisis this came fruition today and they said, they ruled a partal order suggesting that the bond purchase program partially violates the german constitution a lot of questions remain around the direction of travel moving forward. action seen in equity markets, the market has been rallying strongly the entire morning. we did see gains capped in the aftermath of that german court ruling every sector still trading in the green. at the top of the board oil and

gas up 4.4%. those stocks performing strongly total, interesting to note, they maintain their dividend today. let's get to washington, d.c. and some breaking news on what is a hot topic now and only going to get hotter. new pole numbers on the controversial element on the next round of stimulus that has to do with lawsuits and settlements. >> business groups are pushing lawmakers on capitol hill to protect them from lawsuits from customers and employees as they start to reopen. showing there is bipartisan support for enhancing those liability protections. 85% of republicans and 79% of

democrats support shielding restaurants or stores unless there is gross negative ens and that companies should be able to force sick workers to stay home. 80% of republicans and 72% of democrats. top republicans on the house and senate have said this idea must be part of any new negotiations over the next round of stimulus. democrats have dismissed the idea at the state level, the idea is gaining track. in north carolina, the governor signed in-law a bill that provides immunity on medical facilities businesses are seeing some wins at the state level but they say

the risk is they are going to end up with 50 different legal standards unless they get congress to act. >> i have so much questions here one, how do the workers feel about this and do we know how far this shielding could possibly go? i'm thinking about cruise ships. if they are saying, whoa, we did not know about the pandemic. it is not our fault you got sick on our ship. how broad would this be? >> on your first question, brian, consumer and labor groups had been against this idea they say they don't want companies to have blanket immunity you'll see situations like in some of the meat packing plants where workers were getting sick on the job and lose the right to

contest that in court. in terms of how broad this could be, there has been some criticism for trying to take a kitchen sink approach and bite off too much of the apple. the idea to think about is the idea of say safe harbor. the ideas have changed almost daily. they want to know if they follow a certain set of rules they can be protected i think you'll see a lot of the conversation focused around what should be included and what guidance is best for them to follow >> i think safe harbor is the best met for given cruise lines opening with $28 a day cruises out of texas >> more on this topic and the debate over emergency funding on small business and shielding business so that they can try to reopen the head of the anti-financial

crime practice dan, it is amazing we are still talking about reopening. we are talking about shielding businesses from potential liability when they reopen how complex is this web that corporate america, mom and pop is dealing with right now? >> there is a lot of complexitiy. if you look at some of the lending programs as of late, there is liability concern on the part in terms of the lending to ensure that there on the right side i think everyone is trying to do as much as they can within the confines of the rules that were obviously up quickly for good

reason they didn't give the government too much time to react in advance. >> what is the solution? if you are an airline or a train or where people have to congress regate, you want to reopen you are saying we are deep cleaning but i imagine the fine print will change because no business can guarantee complete safety over a microskopic organism. >> that's right. that will be on the part of the customer before they click on accept giving themselves coverage if

you get sick on our vessel given a virus outside of our control that is something institutions are looking for protection on. that is the balance that congress is looking at is how much liability protection do you provide? everyone right now is very focused on protecting their customers and making sure there on the right side of these issues that they can be blamed later for what were they thinking for continuing to roll out. >> offer us some free advice at 5:35 this morning. if you are going to advise many business owners as they look to reopen and some of the questions they need to be asking of their insured, the banks to try to reopen safely? >> right now, i'm spending a lot

of time with clients on the ppp program. there are needs to figure out how to we reopen safely and make payroll with the provisions of the agreement that is unfolding as we speak. you are seeing some businesses that are slow to take money that do they really need to take that loan before you really talk about reopening, you take that challenge that will see the criticism come out of that whether did we really need the money? will we audit lones at $10,000 or month even companies that they don't want to take an issue because they don't want to be named and shamed right now >> certainly a topic that will grow as the weeks and months go

on see you soon, buddy. thank you. coming up, fake covid tests. believe it or not. now the feds are getting aggressive on cracking down. ford versus ferrari. we know ford won the race. this round, it is ferrari. going past general motors and forward in terms of market cap shares surging yesterday pushing market value near $30 billion just ahead of gm and well ahead of ford. old enzo would be proud. the dow is up 150. "worldwide exchange" is back right after this

welcome back to "worldwide exchange." 5:45 on a tuesday morning. despite getting a huge payday, adam neumann files a lawsuit against softbank they said they will not move forward with a tender order because conditions had not been

met. shareholders including neumann expecting a payout the fda is now taking new steps on the testing front rahel solomon with more. >> the fda is announcing tougher new standards for virus antibody tests. allowing criticism for allowing hundreds of tests to hit the market without proper review the standards will help crack down on fraudulent actors. businesses in california could begin reopening at the end of this week. if certain criteria is met the state is the first to borrow money to continue paying out rising claims for unemployment benefits hertz applies for help in

bankruptcy preparations. ne neiman marcus is in talks with pimco over a deal that would slash whthe company's debt loads >> incredible. >> and not just california tapping the federal government because they could soon be running out of unemployment funds. >> incredible times. we have some breaking news on united. saying it will likely slash thousands of jobs as the pandemic cripples travel demand. these, i believe, are management jobs at united airlines? >> management and we'll also see

a lot of front-line employees that will lose their jobs come the fall here is with regards to the management jobs. the company sent out notice to 11,000 in management saying at least 30% of the jobs that comes to a little over 3,400 will by eliminated come act because we anticipate spending millions more than we take in while continuing to employ 100% of our work force is not sustainable for any company. just a couple of weeks ago that united received $5 billion from the federal government one part of this was that we'll give you the money but you must keep employees through september 30 that's what they've done

if there is no improvement in terms of revenue and traffic numbers, they will have to make severe cuts in terms of 30% and management and administrative cuts management received a letter saying there will be changes in the fall unless things dramatically improve and that is not expected >> two questions, one, we had gary kelly say, it is safe to fly, get back on a plane is there any indication travel trends are up? second, i expect we could see these headlines at other airlines as well >> you will see this with other airlines gary kelly even said, unless things change, there will be cuts at southwest. every company is in slightly different position in terms of

their debt load and what they need to cut. that will play out over the next couple of months in terms of traffic, we had 170,000 people flying in the united states. up from the low of 85,000 two weeks ago. that's still down 94% compared to the same day a year ago yes, a few more people are starting to fly. it is not a rebound. a few more getting on board but still down 94% compared to a year ago >> the numbers are very difficult and could grow more difficult for united airlines. we appreciate that on deck, despite all of that talk, the markets want to look ahead. is there any indication as we slowly start to reopen this economy that we will see a rebound as well in the stock

market futures implying with an open up this tuesday you are watching "worldwide exchange," more after this yes. the first word to any adventure. 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.

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low sugar. so good. high protein. low sugar. mmm, birthday cake. pure protein. the best combination to help you stay fit. welcome back one of the stocks you need to watch today is l brands. those shares will be under great pressure they are off their lows but still down big after saying they will terminate the plan to take the victoria secret brand private. the company will instead focus on cutting costs significantly and work to rebuild liquidity as most stores remain closed. will be a stock to watch today investors do appear to be taking a slightly more optimistic outlook amid signs the u.s. economy is beginning slowly in

fits to reopen julian emanuel to talk about the markets. we look out and talk about reopening with masks and gloves. the market has retraces 66% of its lows is that a smart move by tmarket or too low too fast? >> historic amounts of stimulus, you are now over 50% of the u.s. gdp in enacted and proposed stimulus in that respect, that was definitely appropriate it is important to see how the economy has reopened

i would say that, to your point, low level of activity, the market is okay with that over the next month of months as this progress gets under way despite the cases where we encounter more difficulty. >> it is really health data is the new jobs data if we can slowly start to reopen and not have a curve or flair up in new cases, i would imagine that's the kind of positive data you and your team want to see most >> caller: 100%. no doubt about it. if you look at the jobs data, no

denying of the market. it really does come down to the health data. the question is come the fall, are we going to want to send our kids back to college, eat in restaurants and fly on airplanes? >> we definitely want to send them back to college that's a different issue goldman sach saying some of the big caps are tapped out. can you or can this market continue to be pulled by five or six stocks as it has been? >> we've found when the bear market begins and the new bull market begins. we tend to see the laggard, the energy and the small caps, can

they be leaders on the way out >> to that perspective, that is a market performer, if we can expect that, we'll be fine >> always appreciate your views. health is everything right now we wish you and yours well thank you for watching "worldwide exchange. i'm brian sullivan i will see you torw.omro the dow is up 130. the squawk gang will pick it up after this 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.

good morning stocks ready to run. futures looking to add to yesterday's gain after that interesting turn around. main street we are watching because of the reopening the steps of the american

economy. united airlines planning a major job cut. as a result, details are straight ahead payday, elon musk appears to be a bit richer this morning. it is tuesday, may 5 "squawk box" begins right now. good morning, everybody. welcome to "squawk box." i'm becky quick along with joe kernen and andrew ross sorkin. yesterday, the dow went from 362 to up 26 at the end of the session. right now, it indicates the dow futures are up another 368 points the nasdaq which was the big winner is indicated up about 60 points the nasdaq