that's all from us join us tomorrow "squawk on the street" begins right now. good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber premarket adding to gains following monday's upside reversal on optimism about the country's efforts to reopen. busy tuesday with ism services in an hour disney tonight watch the move in oil, hits 23, up four days in a row, more than doubling in a week the president now tweeting about demand slowly returning as we do get more headlines about various states making plans to start really at the end of the week. >> i think that when you go over

what some of the states are doing, they can open, but it's very difficult some of the rules of some of the states are hard core when you look at them, you think ppp versus, geez, those are the rules? took some ppp before we're seeing it? i think it's not going to be nearly as easy as people think i do wonder if our show were located in austin if we wouldn't be saying those crazy new yorkers, but we live here. we live in new jersey. i think that it's going to be a little bit more difficult for a company to stay in business unless they have great balance sheets, and are able to ride the waves. look at norwegian cruise it's a city on a -- a foreign-flagged city on the ocean. i see situations like that, i'm like be careful.

it's not all roses when you're opening. >> right additional headlines this morning about pending layoffs, reportedly pending layoffs for the airlines in october. bankruptcy news, whether it's hertz or a few other companies now. the markets looking past a lot of that. >> i think the market, there is a level of optimism about the opening that is justified. until you hear something bad, we're okay when you look at the projections that we're getting about what will happen in june, or when you look at the incredible interview with dr. fauci in the national geographic, you really want to just say, you know what? do some selling into this rally. i'm a huge believer in dr. fauci. the national geographic article says the fall will be packed with punch if that's the case, you get a big run, we continue to run a

little bit i don't know, mike wilson was talking about a terrific run you came back from the 18,000 dow level, but don't get too cute i think fauci's for real if he's for real, the opening will go okay initially, and then we see i want to see. i don't want to -- i look at the atlantic piece today, wells fargo has to cut its dividend, it sends a chill through my spine. i lived through that already in 2010 and 2009. don't be cocky trim the stocks that are dangerous here there's a real have and have not. i'm not saying you have to go sell regeneron here. i'm thinking that you have to sell some of the cyclicals at least. anybody with a bad balance sheet. i know why people want to sell disney disney disney, david, they want to sell disney >> we talked about it. you know, we've been talking about it for weeks

it's getting a great deal attention over the past couple of days, with the downgrade yesterday and the "new york times" piece outlining the challenges sure disney is -- listen, we said this -- i think we said this weeks ago. as disney goes, so goes the country to a certain extent. in terms of their ability to reopen the theme parks, the challenges they'll be facing obviously when we talk about media companies, the advertising in terms of where that's gone, what's -- the willingness of companies to spend there we talked a lot about espn you go through the portfolio and you obviously do hit a lot of different significant impediment s to them being close to anything to the numbers they once did not to mention the leadership change mr. iger remains executive

chairman jim, when we talk about the fall, it's interesting a lot of us can't wait for it to come you want to know what it holds it doesn't appear there will be a willingness to close again we sort of are going to reopen and then just take what comes, including what unfortunately may be a lot of death. >> wow well, there's a -- i think they want to spend. people want to spend they want to spend wisely. look at the wayfair number the stock was down 12. then repeat customers. people want to spend and go places i'm trying to think if they want to go to home depot, but the lines are so long at home depotment thdepot me that i don't know if i want to go plus you got your money. there's a lot of stimulus. that can work. warren buffett was talking about

infest for the next couple of years. i'm thinking about just be careful between now and the summer that you don't want i like the summers, great time to get around the barbecue you use the circles. >> yep keep the circle. >> i want to be careful. everyone is so bullish look at that i got a bull unless you're working in china -- china, i got two notes today, dupont, fabulous. skyworks solution, fabulous. did joe and i win in the end sorry. >> maybe so. the u.s. treasury will be selling $3 trillion worth of -- worth of treasuries, of bonds to finance what we've been doing here six times as much as we've sold in a quarter >> in a quarter.

q2 which will bring the year to 4.5, three times last year we will rely heavily on poling data axios has a poll out today, percentage who viewed attending a gathering outside of the house as a large risk, 36%, down from 53% three weeks ago. even kevin johnson told us on this show of starbucks a few days ago about the effort to reopen stores and the degree to which consumers will feel comfortable returning. here's what he said. >> they want to know that whatever they're going go do will not contribute to the further spread of the virus. they don't want to get sick. they want something safe they want to go someplace trusted, some place familiar, and someplace that's convenient. that is exactly what we are

enabling, an experience oriented towards a safe, familiar, convenient experience for customers. as we do that, we know they will show up. >> we have a story on our website, jim, that 85% -- 85% of company-owned will be open by the end of the week. >> a great number went out to the partners yesterday from starbucks that i got from kevin. they're talking about the protocols, what they need. i think they'll do this -- they can do contactless, they can do stores, whole stores where you don't need cash. a lot of my friends don't want to touch cash, cash is covid everything is covid. i do feel that the one thing he has -- david, you know this is the case, all right? he's got a rock solid balance sheet. so everybody who goes under who is a small business person, he can put a starbucks, and it can be a walk-through starbucks. i think starbucks, my travel

trust owns it. i owned tyson yesterday. i think starbucks is terrific. you have to see who has the balance sheet. if they have the balance sheet, they can clean up. a lot of people are now looking at what the rules are, small business rules and they're saying, listen, i give up. so those could be potential starbucks. >> interesting yeah balance sheet is everything in this period. it will continue to be those companies that are able to -- to raise liquidity or to maintain significant amounts of cash are clearly in a far better position we have not talked as often about the bankruptcies that are occurring, whether it was j crew, hertz and its difficulty they pushed that out in an 8k, now talking about may 20th in terms of giving them a little bit more time. a couple more weeks to try to

see what they can do at that company. neiman marcus we're awaiting a potential bankruptcy there that's been reported by many deals that have fallen apart you know, interesting that the deal where they were suing each other, they mutually consented to separate, part ways, and nobody paid anybody. sycamore did not have to pay at all. that was surprising, spoke to a stronger case than many of us thought they had i guess balance sheet, if you're in decent shape, you're going to be able to look to the future. if you aren't, you're focused so squarely on seeing whatever it is you can do and whatever leverage you can pull to live another day. >> yeah. i think it's simple. the guys who do have the balance sheet, they're investable. you might say that when the smoke clears, they're all that's left i think you have to start thinking like that when you look at home depot and

what a juggernaut it is, only lowes can really compete against them a lot of companies in the hardware business don't have the credit i'm trying to figure out how does planet fitness survive? everyone will say they can survive. no one will say, i can't survive, that's fools gold planet fitness, again, congregation, crowd. any company that needs a crowd planet fitness is a great company. people have these fabulous franchises if you need a crowd, the government may not let you hav a crowd. or the cdc the cdc didn't have a problem with tyson maybe the cdc, there's new franchises of the cdc. maybe they sold -- you know, you can buy a cdc franchise. would you like that? >> yeah. well, i -- those are two -- those are three letters we have

not heard often in terms of trying to direct our nation's response to the virus. >> you going to take a summer or going right to fall? >> eah >> go buy a cdc franchise. i'll let you be the midwest distributor. give me the franchise. >> jim, we'll get to a bunch of the names you mentioned including a call on tyson today. we'll talk about pfizer as they start dosing their first u.s. participants in a vaccine trial, hopping on to what they've done in germany meg tirrell will join us on that the new house is amazing. so much character.

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welcome back to "squawk on the street." it's an experimental vaccine that would treat the coronavirus. pfizer in conjunction with another partner moving into human trials let's get to meg tirrell and see how far along this is at this point. meg? >> hi, david pfizer and bioentech have started dosing in the u.s. of their covid-19 vaccine

they're taking four different vaccine candidates into the clinic to find the best candidate to prevent this disease. this is the same technology that moderna is using called messenger rna. they'll be dosing up to 360 healthy subjects in the u.s. trial. the trial in germany began april 23rd they are not the first companies to get into human testing with a human candidate, but they are talking about massive numbers of manufacturing that they're preparing now. pfizer says it could have millions of doses available this year and hundreds of millions of doses available next year if all goes well. they are detailing multiple sites in the u.s. and in europe where they'll be doing that manufacturing. these kinds of timelines here are faster than anything in history. we talked with pfizer's chief scientific officer this morning about how they plan to be sure about the safety and efficacy of

this vaccine >> we think that we will have several thousand, 3,000, 4,000 participants and people at risk for the disease dosed in -- as we come to october we think if you combine that with preclinical studies, it has the potential to show good safety and probability of effectiveness in humans with the data >> we are talking about just five months from now having that data where they might apply for emergency use authorization, that's record speed. back over to you >> thanks. can i quickly ask you, i had emergent bio on last night, doing the same thing with johnson & johnson. again, frontloading things, having plans ready to make millions of doses.

highly unusual, to be building the factories or having the factories available while you're working on something that may not even work out? >> yes the kinds of investment that is going in now at risk is something we've never seen before but of course all of these companies and researchers want to be ready if they are successful in this vaccine development to have the vaccine ready to go. it's yet another challenge we'll see down the line is manufacturing this at large enough scale to serve all of the people who would need a vaccine like this. >> meg, it's david just to try to put it in perspective, we talk about how quickly it's all moving. these are human trials, these are for trying to establish safety and which compounds may be safest and potentially down the road most effective. what are they telling you in terms of their hopes for actually having something in hand that they could manufacture

at scale >> well, they do expect that by october they will have these millions of doses ready, so when they get those results and those thousands of patients that the doctor was talking about, that they'll be able to seek that kind of emergency authorization to consider being able to use in the highest risk groups. that's extremely fast. the fastest vaccine development we've ever seen in history was for mumps in the 1960s so these kinds of timelines, a lot of people don't believe they will be possible, but they are the timelines the drug companies are shooting for now >> i'm glad you mentioned that, mumps, four years, it was record nobody could believe they solved mumps. polio took much longer what did you think of the regeneron release of the novel sars to antibody cocktail that advanced rapidly, maybe that

could be used with remdesivir, not bad. >> i was just listening to the regeneron call earlier this morning, the chief scientific officer saying they set a record with their ebola program, that antibody program, the same technology they're getting now from getting from the beginning to human trials in nine months, they broke that with sars antibodies in five months. the ebola program was found out to work, and that drug is now being reviewed by the fda. there's a lot of hope for the regeneron company. >> vaccine or else let's not kid each other vaccine or else. i think that's what matters. people have to recognize vaccines are everything to make sure we have a good economy. >> all right >> i think that's right.

go ahead >> no, that's all right. finish up. >> i was just going to say, there has been some discussion of what happens if we're not successful in developing a vaccine or if it takes longer. that is something we need to consider science is complicated, it's difficult. we hope these timelines will be real, but everything will have to go right and go right the first time for us to get this vaccine so quickly >> yeah. >> meg, thank you. we look forward to your future reporting as well. meg tirrell on the efforts being made, most prominently right now by pfizer this morning in terms of developing a vaccine. we'll have a market open in about nine minutes we're looking higher this morning. we'll also have a mad dash before we get to that market open after this. e for right now. and right now, is a time for action. so, for a second time we're giving members a credit on their auto insurance. because it's the right thing to do. we're also giving payment relief options

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welcome back to "squawk on the street." it's a bite-sized company now, a $32 billion market value dupont is the focus of your mad dash >> this is the ed breen dupont, a lot of people were betting on when ed came back that it could turn around. i think it is. electronics and images, a 5g play, a cell phone play, a china play, the business is incredibly strong much stronger than people realize. china has come back. they're doing this deal with iff. it's going to boost a $7 billion dividend for them and create a company that people like transportation and industrial hobbled by auto. safety and construction, they did a lot of tyvek gowns, gave a lot away but this is a good story it was something that was an afterthought they made it bite-sized, but it's a good story. anybody who wants to be in

industrial, i'm not crazy about the industrials, maybe look at that i see a lot of industrials being down and out caterpillar, we'll talk about ratheon soon i don't particularly like the group, but i do like what ed is doing with dupont. >> interesting >> on industrials, jim, those who have a factory floor, who have an assembly line and are dealing with the new realities of social distancing, not to mention problems in supply chains because that's become an issue, i think i don't know what you're hearing, just keeping workers six feet away from each other and maintaining some level of efficiency is not easy to do >> no. this is one thing people have to understand there is no issue at facebook about social distancing. there's no assembly line the productivity will be hurt so badly by social distancing tyson was on yesterday, who knows what kind of distancing

they were doing. when you look at baxter raising the dividend by 11%, there's no social distancing. social distancing will be the answer to why you have to sell certain stocks what is going to happen on a cruise line? there's a gq article out about carnival the idea of carnival, you get together you meet, do things together it's fun togetherness kills that's what we think now i want to see my wife this weekend. haven't seen her in a while. i don't know, n95, david is that the good one this is a 3m n95 this is great for mother's day this is a mother's day bonanza i got one for her. his and hers, n95, tough to come by >> very romantic >> my whole relationship is romantic, why shouldn't this be the same on mother's day

>> nothing says love like an n95 mask, i think. >> oh, my god. you can't get any hallmark cards. thank you, david >> that should be it >> speaking of ravel, as you are, in terms of cruises and the like, and there's the opening bell let's get to that. >> yep at the big board, the assistant chief electrician. at the nasdaq, ringing the bell remotely, black bod, a cloud servicing company. talking about higher cost structures higher worker comp, you have to pay these people to come into a hazardous job, higher safety costs, just the ppe costs, the testing costs, and then inefficiencies coming from social distancing. on a cruise, it's not inefficiency, but if you're

trying to de-bone beef or pork it is. >> tyson will tell you they're doing everything right people go to tyson and they may get covid-19 from their community. there's lots of different reasons why you may not be able to make it safe. the issue for me is to make it safe, you kill the profitability. if you're investing in something, you don't want to sit there and think, okay, how dangerous is the company i'm investing in to its employees? i keep coming back to these haves and have-nots. then there's companies where you realize, wait a second, it's a franchise-based company, not tyson, but a lot of companies like this, franchise based companies where the franchisees rely on bank financing, the bank is not interested in extending or they can't cover costs because they're closed, you have a bad chain of events that will

occur for a substantial part of the s&p, and another part is just fantastic so particularly because we're not trading -- well, there's a lot of companies with upside, downsides in others. it's difficult to bottom fish. >> a lot of companies are struggling with how to figure out how to maintain efficiency in their business with -- while keeping workers apart. particularly on the assembly line if it's a company that puts things together, it's very difficult to have people six feet apart and maintain social distancing maybe you can do three feet, but can you do three feet? is that allowed? >> no, it's got to be six. some people feel it has to be 13 look at ford, they're selling a huge amount of trucks.

then he tells you they're financing. they're giving them away someone might like the stock at 5 thinking this is robbing one of the top five stocks trading on robinhood i look at balance sheet. apple raising money for next to nothing. there's a company. the quarter was okay the they got 5g coming up. i want to be in that i want to be in microsoft. i want to buy those even right here then i look at the companies with the assembly lines, i say, wow. if i came in there, if we had a real osha, maybe osha gets backbone, it's not possible. >> there's that and -- there's that, jim, and there's the supply production component. david, some of these hertz headlines does not -- believes it will not need to acquire new vehicles for its fleet for the remainder of 2020. if you take out fleet sales, you'll notice.

>> you're talking about 500,000 vehicles at hertz, which we have been talking about for a number of weeks as the company tries to figure out its options for creating more liquidity. it already has a lot of indebtedness that is backed up by the used cars but as the price of used cars has come down, that has created more problems. that has a significant amount of indebtedness this morning they say the forbearances and waivers described below -- that's in the 8k -- provide hertz with additional time through may 22nd earlier i said may 20th incorrectly, may 22, to engage in key discussions with stake holders with the goal of developing a financing strategy and structure that better reflects the economic impact of the covid-19 global pandemic and the company's ongoing operating

and financing requirements yeah, they're not going to buy anymore cars the question is whether they can get enough money to continue to operate as they are now because their business has basically been shut down as a result of the lack of any travel going on in the united states right now, business, pleasure or anything else in between. carl icahn, a large shareholder there. the company suffered from a revolving door in terms of management that has not helped it either. its competitors, avis and enterprise, the private enterprise, which is the largest rental company in the country, not easy times but not having quite as difficult a go of it as hertz is >> incredible. how quickly some of these companies just got hammered. norwegian is holding in there, doing an equity deal i think it's just breath tatakig to see what happened with travel and leisure. i go back to that becky quick

interview with warren buffett, he bailed on those airlines. travel and leisure versus internet advertising versus staying home and ordering furniture, great suddenly everybody likes the oils because the analysts can't resist they have to recommend them. these are roach motels some of them well run. if you really need to own oil, just buy chevron if you have to buy one, just buy it they had a great quarter if you just are itching and itching, don't buy a bottom fish, buy chevron. buy the best leave the reggedy others to the rest david? >> right was about a reit would you buy a reit >> i like this alexandria reit >> 53% of their retail attendance paid rent in april. don't know about may 90% of their commercial tennants

paid rent in april >> i like alexandria, which is linked to drugs, moderna, those guys can do it i'm surprised you didn't bring up the big deal in your world, the huge deal. >> yes we had an actual transaction, a deal, as you say portola pharmaceuticals, 1.4 billion, alexion is buying that company. 18 bucks a share the premium is the likes of which we've seen in the past for companies like this, or companies that are in this case blood -- 129% jump in the stock price. and a deal which, of course, the likes of which we have not seen. we will not see many most of what's going on now in terms of advisory work from whether they're bankers or lawyers has to did with

restructuring, things of that nature perhaps at some point we'll see a wave of consolidation once there's more clarity in terms of the future as i've said, you need to have a plan in place if you're going to be doing a significant deal. you need to have -- if you're a ceo, a sense as to the next year or two that's difficult to have right now. not to mention if it's two ceos who don't know each other, they aren't near each other physically in some fashion to have seen each other previously or sit outdoors maybe, to have a cocktail or lunch, it's very difficult. deals require still ceos to come together and meet. it's not an easy environment in which to make that happen. >> you know what -- go ahead, carl >> alan was telling us on the 11:00 a.m. last week or two, they invested in some companies they don't expect to meet the ceo probably for several months. but the other thing i was going

to mention, it's not as large, but intel buying this urban mobility app for 900 million a headline about microsoft investing in poland. it's thin gruel, but it's something. >> nvidia, as if there's nothing going on other than happen by days, because it's levered all the right markets. data center, gaming, advanced micro making a comeback. i wish they would make a merger and broaden their portfolio. there's just so much that is good that is totally mystifying to the person at home trying to figure out how is it possible that it's millions and millions of unemployed people, and thousands of bankruptcies, maybe hundreds of thousands of bankruptcies, but i come back and say nvidia is levered to gaming that's what you do when you don't have anything to do. companies are levered to things that are the new world

amazon what are they doing wrong? nothing. >> so what explains tesla, jim this six-month average market cap exceeds 100 billion. it will trigger the traufrnl to elon's pay day up 4% this morning >> there are real animal spirits there. people know it's back. someone called me yesterday, wanted me to recommend or say about a solar company. i said just go buy tesla the german factory, i think, will be very big i think china is back. so tesla will sell a lot in china. they don't need to advertise i keep coming back to what is the -- the corporate structure of the regular auto company is so bad versus his company. he was right the leverage is huge because there's nothing other than -- other than love. there's love of the car. and you love the car, you love

the car. and i think it will go much higher in november, it was 200, 300s, can't fight the tape the car is too great anyone driving the car, loving the car says all right, yeah, for 700 bucks i want to be in it or they buy a fractional share at robinhood it's a loved car by young people young people are investing yes, they're defaulting on student loans, they're taking their time, you get leeway late in student loans, but they want to buy stocks. it's beholden upon us to say here's the stocks doing great. tesla is doing great they are they cleared the bombs in the german field, got the trees, they had people who didn't want them to cut the trees, they're appeased then they'll build a factory in ten months the guy is unbelievable.

he's unbelievable. there's him and everybody else >> yeah. 146 billion reasons why. 1$146 billion market cap. stock up 89% this year i wonder when he collects this compensation, which is so closely tied to the increase of the stock price, he's not -- he says he's swearing off all worldly possessions, isn't he basically? be curious to see what he chooses to do with that money. >> that's different. different kind of guy. >> second day in a row we talked about gene wilder's house, guys. >> it's for sale >> the nasdaq is a percent and a half away from going green for the year >> holy cow. >> let's get to bob pisani >> happy tuesday it's the reopening rally we fight about it every day. is it going to be better than expected not? in the last two days it's better than expected. look at the sectors here

energy, we're in a breakout on energy i know that sounds ridiculous. oil is up five days in a row the xle, the xop are on the verge of breaking out. crazy. jets, airline etf, also rebounding after a terrible day yesterday. banks, retail. all up there's your rebound rally consumer staples are lagging i'll point out the crowingers a krogers and the campbell's of the world, they're no longer market leaders where are we in the markets? i'm calling it in the zone that's a fair characterization of it. the s&p is in a 100-point trading range. either side of 2,800 the vix is stuck in the mid 30s for the last few weeks talking about a three-week range. volume is dropping off we had one of the lightest volume days of the year yesterday, it's been dropping off for several weeks. want to remind everyone, every day companies are pulling

guidance we put the list up, aig, texas ro roadhouse today, u.s. foods. that makes it difficult for companies to figure out what the correct multiple is for these companies. probably the biggest problem facing the markets the ipo market is slowly opening up that's very good news. we're waiting for one on the nasdaq this is today. gan limited, an internet gambling software provider their biggest customer is fanduel. they priced this at the high end of the range 8.50 that's good. a lot of interest in online sports gambling. that should be 10:00, 11:00 in the morning. on thursday, a china ipo kingsoft cloud, a china internet cloud service provider the first china ipo since luckin coffee and all the problems they

had. this after it was said china's bookkeeping standards leave a lot to be desired. that's on thursday may 6th, 2010, it's the tenth anniversary of the flash crash remember that one? we had, of course, 1,000 point drop in the dow in minutes, came back causes are debated couple good things came out of this the sec basically required all the exchanges to regularly test and update their trading technology i think this was the major reason why we did not have any crashes during all of this crazy volatility in the last few months the holes, all the systems have been tested and upgraded more regularly. we had that consolidated audit trail. this massive database to trace everything, but that's still not fully implemented. ten years since the flash crash. back to you. >> yeah, bob we were just -- some people on

twitter were reflecting on where we all were on that day ten years ago. you with aaron on set. >> it came out, and i said these levels are too high. no, i don't want to buy p&g. then it was getting attractive at 3:40 i said buy p&g it went from 90 to 45 for heaven's sake. it was a nutty day we were running pictures of some riot in europe, as bob said, the machines didn't work so you had companies that were cut in half that were giving once in a lifetime bargain a lot of people bought p&g on that it's important to remember that was one of those days that turned a lot of people off to the stock market people just said if you can lose that money that fast, i want another asset. it brought a lot of money out of the market there's these events which have made people feel terribly about owning these paper assets.

just terrible. >> the one thing we have not gotten to yet is the evolution of the wework sag a as adam newman is suing softbank >> yeah. it was supposed to take place as part of the overall agreement when softbank took control of wework they pulled out of that as we reported they would. they did they were already sued by the special committee for wework so the special committee representing the non-shooftbank owners of the company. now adam newman himself also suing saying we had a deal under which i was giving up control, my management, and in return, softbank, you were going to buy $3 billion of wework it was not a public company as everybody well knows wework's business, guys, as we

might imagine, is going to have a very difficult time. it was going to be difficult enough without a recession, a significant recession where so many of its tenants, small, medium-sized businesses for example are not following through on leases. they have the leases with some of the bigger owners of buildings, does wework the question then becomes how much is wework paying or not paying to those landlords and how will they -- we were talking earlier about assembly lines if you're wework, you had a lot of people in these facilities, you have to adapt a different approach in terms of social distancing giving people more space in these facilities, if and when you can start getting them back in, which remains elusive, one would say in cities like new york and london where they are the largest single tenant. >> you have to go back to the zoom economy here we go people want -- companies are all so proud they got everybody to

work at home i have cheg on tonight, amazing quarter. they're proud. listen, we got everyone at home. if everyone can work at home and you can do a number like chegg, why do you need we work? unless you're a startup. if you're a startup and you have to take off, you have to move out. yeah, david, the world has changed because of how easy it is to work at home and how safe it is. if it's not safe, people don't want to gamble they want to do takeout, contactless. people are not -- the economy is opening, but it's opening more smartly than people think unless you're a yahoo and deciding i think all these rules are wrong and the state doesn't come down on you >> yeah. >> carl, chegg is up 25% amazing that stock >> it's like people are not going back to school, right? it's an online university. >> right it is. perfectly suited for this.

>> dan rosensweig said college is not a bargain, at 80,000 a year it's not a bargain. if i have akid going to school in the fall, expensive school up in new england, i would be horrified. david? >> models like chegg and peloton established in a different world and the whole world changed right in their direction. >> you've got to guy peloton you have to. my wife is going to take off the laundry because the gym is closed these things just lucked into it >> i have two different people this morning tell me they couldn't talk to me because they were on their darned peloton come on. >> maybe they don't like you >> yeah, well, you know. let's get to rick santelli with ism on the way. good orning, rick. >> reporter: yes, ism on the way. quickly we had the april final reads on the markets

service pmi went from a preliminary of 27 to time read of 26.7, the composite went from 27.4 preliminary read to 27. these are really young indices only several years old but those are the lowest levels on record and if we look at what's going on with interest rates the curve on the long end is starting to act a little alive the fed is buying less with regard to qe look at the ten years for two weeks, 67 basis points, we're knocking on the door if we get through there look for rates to go higher. the 30-year is leading the curve and to that end, let's look at the note over bonds spread, if you look at it just since april 22nd, you can see it's been inching up, it's now 66 basis points and you zoom wider, that's the widest they've been in three years, so what we want to pay attention to is the flattening starts with the long -- short end moving to the long end steepening is moving from the longest maturity down. and finally the dollar index is in what swsomewhat of a range b 99 and 100

if you look at the chart each successive low after the high is higher so we continue to look for a firming dollar index carl, jim, david, back to you and in chicago looking forward to pedaling a real bike in real landscape. >> rick, see you in a little bit, rick santelli we'll take a break here. obviously all but one dow component are in the green nasdaq needs 128 more points from here to go positive for 2020 we're back in a minute ♪ limu emu & doug

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later on to morning, shake shack's randy garutti on the quarter and indications they see some stabilization in their business in the meantime close to session highs here as the markets got a ceunutf the gate on this tuesday. don't go away. i know that every single

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it's time for jim and "stop trading. >> a lot of stocks going up because of momentum and one going up because they're playing offense is skyworks, skws. what they're doing, they have all sorts of different

applications, they do the zoom generation, but what i like about this, and i think the most bullish case you could make for this market they are for 59g company, they are the best play on 5g. they wouldn't have these kinds of orders, this is something you can't get from anyone but if apple weren't building 5g, i have to presuppose because they're in a lot of apple but that's very bullish and 5g is something that is an unstoppable force, clearly even covid cannot stop 5g particularly those of us in our zoom boozy brunches 5g makes zoom looks like i don't know, tv >> right >> it gives us -- i was going to say, we didn't really mention, you know, apple nearly $200 billion in cash, files this week to raise another $8.5 billion, is that all about buy-backs and dividends? >> yeah. some analysts felt they didn't announce enough of a buyback

that was a great conference call, and it was really abomination that people hated. it was just unbelievably good, and i always say own apple, don't trade it the analysts who were not liking it, i think they looked at the stock, ooh, the stock is down. i better see something negative. they were able to do that with this quarter and the service revenues were great, the balance sheet is unbelievable and all the different accoutrements were great and they didn't have retail and it was still good not many companies can do that there's a lot of people who don't get that 5g is around the corner and that apple is going to be playing big. >> hmm hasn't had a three handle since march 4th. we'll watch that >> a good stock. >> what you have on it >> amsimo, makes the pulse occimeter. chegg we talked about that, online everbridge another covid company, you want to know where your employees are and blast out

things are wrong, you use them i'm trying to do companies not benefiting off of covid but happen to be in a situation where their products are selling well because of covid. no one's trying to benefit off of covid including the vaccine companies and the filesers you buy pfizer -- pfizer would give it away they want to be -- they're good guys -- well, they want to give it away. >> we'll see you tonight, jim. >> thank you >> "mad money" 6:00 p.m. welcome to "squawk on the street." i'm carl quintanilla with sara eisen and david faber. let's get to ism numbers with rick >> reporter: yes, thank you, carl our read on april, ism non-manufacturing, the service sector, biggest swathe of the economy, 41.8. 41.8, the lowest read since april of '09 april of '09 when the market was of course at 43.1. so these are lone numbers, march of '09 was 40.1, to give you an idea where it fits in and also consider this.

the absolute lowest ever was a few months prior to that so november of '08 at 37.8, the lowest ever, this series goes back to 1997 so when you shut off the economy, pretty much what we're seeing, whether it was the market, which only goes back several years or these indices, you shut off the economy, basically things go to levels we have never seen before and of course that makes any cap and future data that much more difficult. carl, back to you. >> all right, rick, talk to you in a little while, rick santelli pretty remarkable price action so far this week, david, as we were testing 2,800 about this time yesterday 80 handles higher on the s&p now and we've been pointing out if the nasdaq goes green for the year, that's going to reflect a remarkable either shift in sentiment or realization that the composition of the indices are maybe different than some people think >> yes, and last week we were close to that almost flat line

on the comp. before we had a number of down days but your point's well taken, carl of course, when we look at the apples of the world and the alphabets and the microsofts and the amazons and the teslas, and we go through so many of these large cap companies, facebook as well, all of which by the way i just mentioned are up for the year amazon of course has been by far of the largest mega cap amazon and microsoft are well above where they began the year, but that certainly powerless the nasdaq more than anything else, given the combined market cap alone of the companies that i just mentioned, carl, and that is reflected in the performance of that, given that their businesses, unlike so many others, are not taking the hits. their balance sheets are solid understates, they are extraordinarily strong and their business overall is fairly good, given how many of their workers are able to be productive at home and how much of their product is being used even more perhaps than it had been

previously >> but i think you still look at a rally, guys, like today where you see dow as the best performing dow component, the chemical company, and p&g and walmart as the worst performing dow component. you say the market is in a better mood and look at the almost $25 billion issued in the kom corporate debt market yesterday and amgen issuing billions in debt, and starbucks. there's clearly a better feeling about the world, dominated the conversations we had with our sources, investors, strategists on and off the air and what continues to be an optimistic view, despite the horrendous data, rick just reported services, low, low numbers, comes back to looking forward, and looking toward the reopening, and there are important things happening on this front it's confusing because everybody's going about it in different ways but when you have the governors, david and carl of

new york and california talking about safe reopening, regionally in new york, in california, will start to see some retail operations open by this week, when you start to see soccer matches being played in germany, which is a big development, as well as some of the reopening there, and hong kong easing their social distancing measures, after they've largely contained the virus, and now allowing gatherings of up to eight people, you put it all together and that seems to be what this market at least on the headline front is teeing off of, and that's what makes it different from a few months ago, when we were going into this lockdown, neverending in sight and you add in regeneron saying they're going to start human trials by june of their monocroakal antibody cocktail, there's hope for and pfizer a record vaccine and you continue to see there is a bullish picture to be made, even if, you know, warren buffett and paul singer and jeffrey dunlap not

buying it. >> yes, there's plenty who aren't buying and something else as well, sara, which is 68,000 debt, of course, and the fact is that the new cases and the deaths in the united states have not really gone down plateau is probably the best it appears right now and as i'm sure many of our viewers have seen, there are reports that expect in fact the deaths and new cases are going to rise substantially as more states open, which carl, leads us back to the question that so many have, are trying to understand, which is as you reopen, and as you continue to watch potentially the lethality increase or at least the deaths increase, how many people's behavior is still going to be impacted and how many people will choose to actually re-enter an opened economy? >> yep, that's a perfect segue, david, as you know to randy garutti, ce oh of shake shack who joins us first on cnbc this morning coming off of the quarter talking about comps, meat supplies now a story as

well randy, welcome back good to talk to you. >> you as well, carl, thanks for having us on >> the line that leaps out to me, anyway is this, "since the low point during the last week of the quarter, companies experienced steady increases in domestic sales driven by growth in digital and the expansion of integrated delivery. to what degree can we put on top of that any kind of walk-in or drive-through or even at some point dine-in? >> there's been a good few stories having over the last six weeks, we've seen a steady curve up for us. it's really encouraging and i'd say it's mostly thanks to our team we've created these drive-throughs at the shake shack that existed, never had a drive-through. we created the drive-up curbside lanes and shifted to over 80% last week of our sales is on our digital channels our own app and web channels on shake shack have tripled and the number of first-timers has more than doubled so it's really

exciting because we know that those guests tend to be stickier than normal guests, and we're working our way back towards dining room reopening. we don't have any shack dining rooms open today, even in those states like texas and georgia, where things are starting to reopen we're going to take our time, make sure it's safe for our team and continue to give people the opportunity. you walk up to a shack now on the window, you just take your phone, scan a qr code, menu pops up, you order and we'll bring it out to you it's really cool contactless, really easy, seamless way to do it and i think that's been a contributor to growth. we have a long way to go but the trend is in the right direction. >> hmm, so in states like georgia, where the door is open essentially to open if you want. do you show that being a june phenomena, a q2 phenomena? >> i think we'll get there we've been talking every day with our leaders on the ground there, and watching what everyone else is doing most important thing for us is keeping our team and our guests safe you're starting to see some restaurants open, patios mostly

there, having good distancing. we have great plans in place for our team when we choose to do that we haven't announced when yet, likely in the next few weeks we are fortunate we have restaurants in hong kong, mainland china, south korea, that have begun to reopen, begun to show us some of the things that have worked, some things that haven't, and making sure that when we start to do that, we do it in the right way and we'll do this on our terms, not the state's terms. we'll make sure our team is well taken care of there. >> randy, i'm old enough to remember when you started to expand basically out of big urban centers and new york specifically, the thinking was, oh, shack's operating margins operating leverage outside of big cities isn't what it will be i wonder, do you think that picture has now flipped because of the impact of social distancing are we going to see a reversal in performance between your big

city markets and your smaller city markets >> well, we actually shared some data last night on our call that says kind of exactly that at the moment you're seeing some of the bigger centers specifically new york be some of the still hardest hit for shake shack. we are an urban brand and a brand that has these amazing location it's been a little bit more resilient for us in those that are easier to drive up and more suburban, but here's how i believe about real estate, right, over time, great real estate is great real estate. i don't think that's going to change we're going to continue to build those community gathering places so that when people gather again, they're going to do it in places like shake shack. they're going to come to new york city. we're not all going to stop the great urban centers and locations in the world in the meantime it's good to see that some of our other locations are the ones that have come up a little bit faster for us and teaching us some of the lessons about real estate moving forward. we announced last night we're working on a new model we're calling the shack track which will allow people to drive up or

walk up to a walk-up window and without having to enter the building if that's how they choose to do it, they'll be able to grab their bag, even if their car in some cases. we've got a lot of work to do on this but it will be an exciting transition and open up for us now in a forever retail changed environment, we've got more cash on our balance sheet than we've ever had wefortressed that opportunity and it will help us thinking about what we can do moving forward as we come out of this >> randy, it's david no shortage of challenges as well as you point out including potentially some shortages of supply of beef or at least that supply chain i think, getting a little bit messy what are you seeing right now is the cost of beef going oto be higher longer term or do you see this as a shorter term phenomena? >> david, most important is making sure that industry can work in a safe way that's what's got to happen first. it's been impressive to see the changes they're trying to make

we are fortunate shake shack today we have not been impacted in our supply chain. we use only hormone anti-biotic free all-natural beef and the supply chain we have has not been impacted. however cost is up and up significantly in the last few weeks. it's something we're watching daily. i think you'll have some near-term impact we don't know how long that will go for it's important for us as we've transitioned our menu, we sell a lot of chicken now our chicken shack and chicken bites, a ton of vegetarian sroom burgers and fries. we're hedged against that but it's something we're watching close closely as you see supermarkets and other places start to put on limits our hope is that we can, that supply chain rebuilds into a safe and gives us the supply that we and everybody else needs in the long-term >> randy, it's sara. you mentioned that you have a template going on with business in korea and china and hong kong, starbucks and nike what are you seeing there in

terms of what's working and what's not as the consumer comes back >> it's been really encouraging, sara they have led obviously being the first and having gon through i think successes and failures you've seen in each country we have shacks throughout asia. places like japan are still closed places like singapore that had controlled it, now have had a pop are open but doing takeout and delivery in the same way but most encouraging has been our hong kong business, mainland china business and shanghai and korea. people come n distance, take their time it's been a really gentle build back we've seen and our partners there, think about things that we're hearing now. if i told you three months ago that a team member would be taking your temperature when you walked into a restaurant, you wouldn't believe that could be possible yet in china they've been doing it for months these are some of the lessons

we're starting to learn and also learning to take it slow le let's not rush this as a company and country and locally. there's no reason to rush back keep people distanced starting with our team and give people ways to experience great food at a great value without going too fast >> are you saying we'll take our temperatures going into shake hack in this country >> we haven't made that decision yet but you're starting to see that in a lot of places. a lot of retail owners are doing that we'll see whether that makes sense or not i think what will be most important is keeping people distant and having physical markers on the ground, ables separated from each other, we're thinking about all things like that making sure everybody is safe >> so randy, it's david again. trying to imagine what my local shake on 77th street will look

like you just renovated it, by the way, when you come back. i can imagine what, tables further apart, people lined up outside for quite some time? people out there taking their temperatures and taking their orders >> when we renovated we did it with none of this in mind and turns out to be the right thing, in the back door all the delivery and courier drivers become a significantly growing part of our business can enter separately, grab their food and exit, not having to be connected to anyone else who will have a separate line for those of you who want to stay, those tables will be far distanced and i think we're some far away, away from that but mostly the idea will be that you preorder, and that you walk by that line outside and you'll see that qr code, hit it, order, and we'll come out and you know, yell for david, we'll text you first and if you don't get that text, we'll come find you and bring you your food and make sure that you can get out of the house as often as possible and get some

good food. >> randy, we're in the period it's getting warmer, people are feeling better about the weather and the ability to transact business outdoors but are you guys in a mode now where you are thinking about the fall when it gets cold, when we have to start working inside and the worries we'd see a second spike in terms of infection >> absolutely. we've been working through this in march, when it's been cold. we had a pretty cold spring in the northeast, actually, so we'll be careful it's all part of the reason why we have to take it slow, guys and make sure we're ready if we see a spike again. so many of the lessons we've learned can be taken with us one of my greatest fears is that the company as a world we don't take all these things we're learning into the future as we're talking about as a company we've been leading with hope and optimism and dealing with the real situation of challenge sales in our company

and making sure that whatever we do, we can fortress this company to come out of it stronger our hope is that everyone can get healthy again, start gathering because we are going to need restaurants, small, large, and every type to bring the fabric of our communities back, try to do that in the best way we can at shake shack. >> amen to that, randy quickly, on the decision to return the ppp funds you kind of became the posterchild for big, bad business public companies taking the loans that were supposed to go to small business and now that you've returned it you've accessed capital how do you are he flekt on the experience and how you're able to manage the brand? >> we've been the posterchild for the company that started that conversation. we were the first to say this

hasn't gone right. the very people who need that money are not getting it we'll be the first to stand up and tell you we'll return it so many people reached out and were thankful of that. we were part of a national conversation that needed to happen we're proud of that. our brand is stronger than that and we've had inboxes full of people say thanks. three friends yesterday who owned small restaurant companies around the country tell me i finally got my ppp loan. i'm a small independent operator, and i think we helped lead that conversation that was really important we were fortunate following that, our shareholders stepped up and sate current and new shareholders we want to be a part of this, we believe in shake shack and getting the cash in the bank to withstand any level of this is an important thing and i think we've shown that in the last few weeks

>> let's hope there are more success stories if we can call it success where for some of the small firms liquidity is not a front burner issue randy, it's good to talk to you again. thanks talk to you soon >> thank you, guys take care. >> randy garutti as we head to break, don't miss an exclusive interview with the ceo of kroger, rodney mcmullen on the state of the grocery industry, food shortages, how he's taking care of his front line workers tomorrow 10:00 a.m. eastern time quk ckn montn o "sawon the street. - [narrator] at southern new hampshire university, we're committed to making college more affordable. that's why we're keeping our tuition the same through the year 2021. - [student] i knew snhu was the place for me when i saw how affordable it was.

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welcome back emergency hospitals have been granted a near $2 billion aid package from the fed but they still remain far from sturdy emergency footing. canceling high-priced elective surgeries during the outbreak, shifting a lot if not all of the resources to fighting the covid-19 virus brian bragnolatti joins us now, the ceo of atlantic health system here in the northeast and also former chairman of the american hospital association. brian, good to have you back on the program. before we get to the virus and testing and so many other things, let me ask about the financial footing of your hospital system, and others around the country as we pointed out, elective surgeries which have a far higher profit margin have been postponed for some time. are you getting back to doing any of that at this point and is $2 billion or roughly going to

be enough to sort of steady your company's future >> dave, thanks for having me back appreciate the opportunity maybe just to give you some context and answer specific questions we're starting to see light at the end of the tunnel in the surge area. our peak was around april 9th to the 14th, it was more of a plateau. we're down in covid cases by about 48% since that time, but we still have almost 500 patients in our hospital with covid. but what's been interesting, during this whole period of time, which gets to the economic question, is that we have also still been taking care of patients who also do not have covid, and you know, during that period of time we've birthed a thousand babies in our hospitals, and we've cared for the emergency types of care that

need to take place and we've also had our physician offices open and although we're at about 60% of the volume there, and most of those are telehealth visits so when you wrap all that together, and you think about the financial impact, you know, we had a tough march we expect to have a tough april, and we're hoping to begin to see some recovery in may and june, but let me get a little more specific about that. you got two dynamics going on as it relates to financial performance of hospitals and health systems those of us that add high volume to the covid patients have really had increased expense in almost 50% of the cost of that and we only are getting a premium from the government and payers about 20% so that in and of itself creates a financial dilemma, and then the loss ofelective revenue ha been anywhere between 30% and 40% of our total revenue, so

when you put those two things together, you can see how you've got a disconnect and that really is how we see it i got to tell you, in my role at the american hospital association when i talk to my colleagues across the country, many of whom have not had high covid patient activity, but they are experiencing the shutdowns, their revenue picture is quite bleak. >> is the government assistance that's available going to be enough then to potentially tie over these hospital systems, brian? >> so if you think about it in terms of a business, you think about liquidity first, right, so the first tranche of funding that came from the government went to all hospitals, and it was done just to get money out quickly to deal with the liquidity issues and i think that that was helpful. those of us in the surge areas felt that it was unfair because we also had the added expense of

an impact taking care of those patients so the second tranche of money in the c.a.r.e.s. act addressed that, and you can see recently that new jersey has received about $1.7 billion of those funds and we'll learn later today exactly how much we get here at the atlantic health system but those are clearly really important, and we want to thank the government and thank our government officials for getting those monies, but they're not going to be anywhere near enough >> brian, real quick, because we may have the president joining us, what are you seeing when it comes to the virus itself, obviously given your prepopped ran preponderance of the hospitals in the new york metro area are things quieting down significantly, and is that your expectation for the remainder of the month? >> they are quieting down significantly. here in new jersey that is my expectation because we're still

following strict social distancing in all of those activities other parts of the country we'll see in a week or two what's happened after those have been released but make no mistake, the thing that is still our achilles heel in this whole area of covid is testing. it was a problem at the beginning. it is a problem today, and it's going to be a problem going forward as we anticipate seeing an upsurge of these cases potentially again in the fall, and we've got to make sure that we're getting that right >> are we still not there on testing? >> absolutely not. we are nowhere near where we need to be, and you can see that here in new jersey, where our governor again has been very vocal about the need to do more testing. he's talking about doing, you know, thousands and thousands of additional tests which i completely agree with, but in order to do that, we got to have the materials, and we've got to have the testing platforms, and we've got to have the ability to

turn those tests in very short order, and here at atlantic, we're working really hard to get all of those platforms that we need, so we can do point-of-care testing, not just in our hospitals, but also in our physician offices and again, we're getting great support from the governor, but we need the federal government to continue to put its shoulder behind this, because ultimately that's what it's going to take >> brian, appreciate your update this morning thank you for joining us >> thank you so much let's hit our etf spotlight. today a look at the banking sector, kbe, participating in today's rally on pace to break a three-day losing streak helped in part by higher yields and the overall market citigroup and bank of america among the names leading the group higher today a quick note as we head to break we have an exclusive interview this afternoon you do not want to miss the vice chair of the federal reserve, richard clarida, 3:00 p.m. eastern time,

post fed meeting after some new economic data paints a pretty ugly picture of the economy in the u.s. we'll be right back. ersect hinmore than 300 pots evy origher in the s&p ♪ right now, there's over a million walmart associates doing their best to keep our nation going, while keeping us safe. we've given masks to all our people

and we're helping our customers practice social distancing in stores. we've implemented shorter hours, so we can sanitize our stores from top to bottom while also restocking our products. but if anything, these days have reminded us why we do what we do. because despite everything that's changed, one thing hasn't, and that's our devotion to you and our communities. we're working together, in-store and online, through pickup and delivery, to make sure you can still get the essentials you need. and as we move forward, know that our first priority will always be to keep you and our associates safe. ♪

to featuring the emmy award-winning voice remote. access to your favorite apps, including netflix, prime video, youtube and hulu. all without changing passwords and inputs. the most 4k content and movies and shows on any screen. the best entertainment experience all in one place. good morning everyone. welcome back here's what we know at this hour new york state is reporting more than 1,700 previously undisclosed deaths at nursing homes and adult care facilities. this includes people believed to have died of covid-19 before they could be tested the report shows 22 facility

that each had at least 40 deaths a second walmart in massachusetts has closed because of a coronavirus outbreak. the store in quincy closed yesterday after one employee died and ten others tested positive walmart says all employees at the store will be tested and a deep cleaning is under way the international trade group representing airlines says leaving the middle seats empty would make most carriers unprofitable the group recommends masks or face coverings becoming mandatory on all flights all this comes as governments around the world discuss virus safety measures for air travel as always get more coronavirus coverage going to cnbc.com carl, back to you. >> sue, thank you very much. we'll take a quick break here obviously about 1.5% gains here for the major indices. dow is holding on to 24k 2880 on the s&p, as they try to etr r e gains toghefoth we're back in a minute it's a challenging market.

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

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let's turn back to the market action this morning we are seeing gains across the board. chevron is leading with energy outperforming but all sectors are higher morgan stanley wealth management lisa shalett and deutsche bank's alan ruskin joining us now lisa, what are you telling your clients almost going to the flat line for 2020 given all the risks and economic headwinds we face, what should they be doing? >> our strategy has been to you know, move away from the indexes, which we think are excessively concentrated and super expensive tech names that we all know, and really if they want to play the market here to go after pockets of value and you know, areas that were still

left behind from the february/march sell-off so that would include areas like financials, like industrials, like small caps, like materials, like energy and those are the areas that we're encouraging folks to be stock pickers, not etf index buyers >> a lot of the areas at least the areas underperformed, it's really been growth over value in this comeback, highlighted by the nasdaq so what turns the tide >> look, i think the cycle will turn the tide. ultimately you know, the value names were, had their performance exacerbated by the sudden stop recession, as the economy reopens from our perspective, you know, that's where your operating leverage is the greatest and where it's not fully priced if you look at the nasdaq, you look at you know, the top names

in that index, they're all the household names. they're not super leveraged to a reopening of the economy because in many ways their businesses never closed so we're looking at, you know, where is the derivative, where is the margin of improvement and it's really in those more cyclical sectors, more exposed sectors where there's value, and there's opportunity for material gains from here. >> alan, where is the market in terms of expectations on how fast reopening happens, and how fast growth comes back is q3 positive growth still the consensus? >> i think it is i think there's a sense that we're not going to actually recover all the losses until at least the end of 2021, so that's a long time coming we are, in fact, thinking that we're only going to recover all the losses that we've cleared over the last quarter or so and

still incurring by sometime in 2022, so there's a long lost part ahead in terms of recovery and the market i think anticipates that, so i think the tension you have is really about, you know, how quickly can you recover. of course, this is a question you ask, but i think it's more can the central banks support markets and risky assets for a lengthy period of time that's i think the big question now. >> and is the equity market telling you yes, they can? >> the equity market i think is telling you, yes, they can, for the time being i think the problems probably arise if you have some sort of second wave, and you have this period of time of optimism dashed i think that's when the equity market will be vulnerable again, but until then, you know, whilst we are in the phase of

reopening, the s&p will have a hard time to get to 3,000. it's meat solid, low earlier in march, and it's not necessarily going to break down until we see exactly what the the virus is. >> alan, one of the headlines earlier this morning was this german court that seemed to call into question some of the ecb's qe initiatives to what degree is europe and their ability to provide stimulus going to be hobbled by these layers of multinational politics >> yes, i mean this one came completely at a surprise the german institutional court and the european seem to be at lag lagerheads here. i think they are at constraints in terms of monetary financing it does appear the ecb is much more constrained generally than the federal reserve in terms of a variety of governdifferent ac, and not the least negative rate. there is a perception there's

latent denomination risk as it were italian bonds are clearly trading at yields that are way above what you get at the core of europe, that's, you know, deeply problematic, so i think people are looking at alternatives -- the dollar by default wins out very well there but i think the yen is the one that's picking up a little bit of steam that has been given out effectively by the euro and the negativity related to the euro's redenomination risk. >> lisa, it leads me to a broader question about global baskets. is europe somehow farther down the ladder than u.s., or how do you fold in various continent's ability to implement mitigation? is the u.s. in a worst house than a neighborhood? >> i don't know that i would be in that camp entirely.

clearly we know how the world is viewed, the u.s. market over the last 11 years, and in this business cycle, you know, as the best shirt in the laundry as they say but i think a lot of the advantages of the u.s. had during this past cycle, whether it was, you know, relative growth rates, albeit 2% is better than flatlining, relative rates on the ten-year treasury or you know, relative strength of the currency, i think that those arguments have kind of run their course, if you will and we're now at a point where, you know, it's hard to make the case that the u.s. is somehow going to recover to a place that is stronger, better, faster than any other country on the planet. i think it's truly, truly remains to be seen certainly the fed is throwing record amounts of stimulus at

this thing you look at the combination of, you know, fed monetary balance sheet expansion and what folks in washington are doing and you're talking about 45% of gdp but at the end of the day, you've got to pay for that someday. and the relative yield advantages in the u.s. treasury market aren't what they used to be on the ten-year tenner, so we're not preferring a wild degree the u.s. market to other markets where there's a lot more value. there's certainly higher dividend yields and we think the prospects of recovery from this thing are equal. i don't know that the u.s. has any advantage in conquering this virus. there's no evidence of that. >> hmm alan, i mean clearly a lot of hopes and a lot being done by the fed. what about fiscal?

how much, to what extent is the market now banking on another relief package for congress and how badly do you think our economy needs that the longer this goes on >> yes, well, the economy needs all the help it can get but there's usually a price to be paid at some point in time, so on the fiscal piece of it, i think the kind of questions that i get mostly revolve around sustainability, and while this is intact all asset markets but the dollar in particular, and the onset you'd give if the external accounts in the u.s. deteriorate rapidly as well, in response to the fiscal to savings, we know the private sector is not acting as an offset to the government sector, and if the external sector deteriorates and current accounts deteriorates, you can rest assured the dollar is also going to start to slide. for me as a longer term metric in terms of potential dollar

weakness, how the external accounts respond to the fiscal side is going to be very, very important, and i think it will be a general message for the economy as a whole as to whether these external deficits, public sector deficits are sustainable or not >> treasury borrowing a record $3 trillion this quarter is one of the headlines lisa sh alett, alan ruskin thank you for joining us, great discussion >> thank you >> thank you we have the s&p up 1.4%. the nasdaq up 1.55%, not that far off from flat on the year, about 1.4% is the decline overall for that index, as we have a lot more "squawk on the street" straight ahead for you

could there be bigger implications for warren buff let's call on airlines on the broader travel industry? adat's on tringnation.cnbc.com more "squawk on the street" coming up.

second day of gains here as stocks focus more on the reopening of the economy than the risks for now. all sectors are higher, oil up for a fifth consecutive day, as redoron leads the w. mo "squawk on the street" in just a moment.

welcome back to "squawk on the street." i'm eric chummi. every sector is trading higher today building off yesterday's gains. energy one of the leading sectors as oil prices are rising for a fifth straight day among the energy stocks making big moves are concho resources, pioneer natural resources and conoco phillips. marathon petroleum initially jumped in pre-market trading after posting a smaller than expected quarterly loss. the company took a $12 billion impairment charge and announced a slate of cost-cutting measures sara, i'll send it back to you >> eric, thank you a quick reminder as we head to break, richard clarida later today on "closing bell" 3:00

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a single hub for a consistent operating experience across all your clouds. that should clear things up. florida entering its first phase of reopening as restrictions lift in all but three counties with restaurants and counties reopening their doors. matthew is president and ceo of whitman family development, a, commercial real estate form that manages a million feet of retail space in bal harbour are they open? >> good morning. thank you.

we're not quite open yet we are awaiting word from our county mayor as you may know, the rest of the state opened starting monday dade, broward, and palm beach were wisely excluded by governor ron desantis because of the covid-19 rates in south florida are a little bit different than the rest of the state. >> how are you thinking about what reopening is going to look and feel like for consumers? >> you know, i think consumers are really answer to get back to a sense of some kind of normalcy and familiar iity. our concern first and foremost is our customers and employees that is certainly first. we have been, i guess, inspired by some of the news that we are getti getting. the department of homeland security had guidance on a study they performed mid-april

they released it during the coronavirus task force meeting where the focus became how much clorox people should be inje injecting in themselves. and the data lost was the study found sunlight, humidity, and temperature have an impact on this virus outdoor parks, places, outdoor shopping centers have a way to fight back that we certainly intend to put to good use. >> matthew, retail was a tough business even before this pandemic broke out traffic was a problem, as people go online and totally change their shopping habits. how much harder do you think it's going to be post pandemic when they have all been nervous, in their homes, and ordering online >> you know, i think there is a

lot of ingenuity and innovation from small businesses and some of the international businesses that are retailers and restaurants at bal harbour shops. because we have a fully unenclosed fresh air outdoor center, one of the things we are doing is working with our restaurant residents who wisely and understandably get they need to limit their indoor seating capacities but because we have a fairly large outdoor area typically used for moving people around, we have the ability to grow the outdoor seating areas. we hope we might get to a point where any spaces that need to be given up in an indoor space to create necessary social distance can be created in an outdoor space. for the public, who is coming out after being in their homes and spaces all these months, we

will perhaps enjoy a garden-like setting which maybe won't be so bad. >> yeah, matthew you are pointing to the cabin fever that the country obviously has. i wonder, though, if you think some of the activity will be driven by people trying to order things online, looking at really long delivery times, canceled orders and even at the margin, it's not saying a lot it might make people just appreciate the experience of going somewhere, finding what you need, and taking it home right away i wonder if you think that might be a bit on of a dynamic >> i think it is a dynamic many of our restaurants and i think many restaurants across the country didn't really have a takeout model. it wasn't something that they did. they were forced to be creative and innovative many of them, if not most of

them, are doing that we envision they will do that even after they reopen their dining rooms there was a source revenue probably not budgeted at the beginning of the year. similarly, for customers who have gone used to browsing online perhaps in a way they didn't used to, will have the ability for customers to continue to do that. rather than having to wait days or weeks to get that merchandise, they can drive up to the shopping center, stay in their cars and have that merchandise delivered right out to them. so, again, i do think that the resiliency and the innovation of people both customers, retailers, restauranteurs is what's going to get us through this >> i still wonder how many of them paid rent in april and how many do you expect will pay rent in may >> well, that's the question question i think for landlords of every stripe. those in the hospitality business, retailbusiness

we will not look back fondly on the month of april and may our tenants are going through a tough time we have thrived based on our relationship with those tenants. we reached out to each one proactively. many heard from us before we heard from them. we said how can we help? there are a number who can't afford to pay. we don't want to see these hard working men and women go out of business there are others who probably can't pay but what are suffering a significant cash flow interruption for those tenants we are talking about deferring those payments until later when their cash flow

has increased. as you know, we launched a year, year and a half ago to an expansion of our shopping center by about 50% we have used this as an opportunity as we try to help tenants who need it to say, hey, listen, we're partners here. we would love to see commitment to our expansion in the future it is further along now than it would have been without this coronavirus. there is some good news in all of this. >> really quickly, whenever i have been to bal harbour, there are a lot of tourists there. how dependent are you with international travel ground to a halt >> that's a good question. we have an adil to international tourists

it is hard for them to get here. i think time unfortunately will have to tell the good news, though, miami is increasingly home to a lot of people who typically wouldn't be here now who would be using those airplanes to get to other places the entire state just announced yesterday it's about $750 million or more in the whole in terms of where it should be relative to sales taxes. so this is going to be a climb out that won't happen overnight. >> thank you for joining us. we appreciate your time. good luck on the reopening wouldn't we all like to be quarantined in miami right now >> exactly sara, thanks walk to "squawk alley", everybody, on this tuesday morning. i'm carl quintanilla session high here up 377 o