i think in this new world they're the leaders in staying in touch with your customers. >> joe >> keysight technology. >> my man pete. >> i'm going to go with disney because everybody is doing whatever they're doing this stock has upside. >> all right quickly, kevin o'leary, a name >> gold, gld boring and safe. gold. >> good the see everybody. wilfred frost picks up the coverage. >> thank you so much welcome to "the exchange." volatile day on wall street with the major averages swinging between gains and losses, nearly all day. the dow was up 171 points at the high right now it is exactly flat the tech sector leading the gains. nasdaq up 1% or so 1% or so from the highs of the year s&p tech sector only one in the green for 2020 oil weighing on sentiment today as crude prices reverse course

falling 6% at the lows right now crude prices are down about 5% i don't know the set very well looking here i'm not sure let's get to bob pisani with a look at the markets. bob? >> the important thing about today, wilf, is early gains. we had this yesterday and then it faded and this happened yesterday. a pattern here let's just say for the moment we are in a trading range of 100 points on either side of 2840. if you take a look at the s&p 500, we are in a trading range right now and volume's been light. strong opens often and then fade late in the day. one thing to saving grace, tech's been great with a flat day today. the mega caps, again, on fire. i have said this so many times when you have facebook, apple, microsoft, amazon, alphabet, the five biggest up 1% to 2% on a day, the s&p is generally positive even with 3 to 2

declining to advancing stocking. working through earnings season. 65% through here and a third of the companies in the s&p 500 withdrawn guidance this is why you get the volatility it is hard to figure out where the stocks should be on top of that, that's making it very difficult to figure out the right levels for the stock market and good news/bad news comments look at pinterest. comes out saying, hey, the global monthly active users up 26%. terrific number! april revenues down 8%. that's not good news pinterest down notably "the new york times" said similar things and talking more about that in the next hour. back to you. >> mark thomas, ceo of "new york times," coming up. to your point of guidance removed, does that mean markets aren't trading off typical pe valuations an much more technicals or other factors of how strong's your balance sheet?

>> you can write a story about pes all you want but nobody has a clue of the actual numbers are so most people feel that the s&p will see a 25% decline in earnings for 2020. so that means you're trading anywhere from 22, 23, 24 times forward numbers. they're literally throws numbers out, making broad guesses of things an get the swings the confidence level in the numbers is not very high, wilf. >> thank you so much for that. turning to the ppp program, a new study of the federal reserve showing that loans haven't been going to the hardest hit areas. steve liesman joins me with those details. steve? >> reporter: wilf, good afternoon. new york fed finding that it did not go to the hardest hit areas, poorly even unevenly distributed the first round of the paycheck protection paycheck with smaller states, states with lower covid,

those jobless claims, the states getting the bulk of it looking at the maps provided you see that small -- in the small states, a much higher percentage of small businesses got loans there. compared with the larger states. for example, new york businesses less than 20% of small businesses in new york got loans compared to, say, for example, nebraska where greater than 55% of small businesses got loans in the first round of ppp and found not correlated by the number of covid cases. see in the next map that states with lot of covid cases, for example, new york, pennsylvania, new jersey, especially, washington, those states were not high on the list of getting a lot of ppp loans there they said in the study, quote, there's no significant relationship between the severity of the economic impact of covid-19 measured both in terms of cases and unemployment claims and the share of small

businesses getding ppp loans a did find a high correlation of states with a large share of community banks. seems like those banks got in the first round. we'll see if that's rectified in the second round the concern is creates the possibility of really credit misallocations and where rather than the best or neediest companies getting aid it was done randomly and might pay a price for that down the road economically. >> definitely. it is an interesting survey. stick with us to discuss this in a little bit more detail, particularly along the theme of what can be done to fix any new rounds if they're needed tony fratto joins us, a cnbc contributor. tony, what do you think has been the main problem with the design of the ppp program in the first place? >> there have been obviously a number of problems, you know,

who's distributing and the size of the loans and what to do with them but by far in a class by itself is really just the underfunding of the program. we wouldn't be talking about problems in distribution and who got money and who didn't get money and who got it first and whether they deserve to get it first if congress had just merely treated this like the entitlement program it is and if i qualify the money is there for me and we found out that it's not the case because congress keeps underfunding the program and probably run out of money and have to come back to it. fully fund the program in fact, overfund it you know so nobody has to really rush to the window to go get money. >> steve, if that had been the case an i guess it could still be the case going forward, it wouldn't reduce the case of certain companies taking money when they don't need as much as others but it would at least address the issue of some being squeezed out that need it most

>> i think that's absolutely right. a quick caveat here. the treasury threw up a very quick program here and obviously, you know, speed is the enemy of efficiency in this regard that needs to be said. if there was more money we wouldn't be having this conversation i think, wilf, you would know better than i do that the larger banks a little more successful in the second round with the issue of being able to process in the batches or the large numbers there. but i think another key issue is that i don't agree at all with the idea of forcing these companies to use the loans for employment i don't think that makes sense to me. i think employment should have gone to unemployment insurance and handled that way and businesses should have been given loans to take care of other credits because those just as surely as employment could be a reason why they can't open on the backside of this.

>> tony, despite some of the problems do you think it's an effective program in terms of offsetting some of big economic problems we're facing? >> yeah. but by the way, i would agree with steve need to see more flexibility in this program going forward but i compare it to where the treasury and the fed are today with the main street lending program which it seems to me they're taking all of the time to try to perfect this program but now we're six weeks after passage of the c.a.r.e.s act and don't have dollar one out of the main street lending program and will look back an say ppp imperfect but amazing to push out hundreds of millions of dollars out to these businesses and could it be done better? sure we say might be perfect but maybe underwhelming in its --

certainly in speed. >> but, tony >> we don't see speed yet. >> but, tony, i would just come back and say, the administration has yet to articulate a philosophy underlying this program. i think speed was the philosophy. >> yeah. >> but they haven't told us who gets it, why they get it, what it is supposed to pay for. is everybody supposed to be made whole? what we have here is a situation where the recipients of it essentially random depending on the ability of the bank to get a loan number and those that don't. if it's random survival and not some form of underlying concept behind it. >> two points to add to that, steve. one is to tony's point, if they massively increase the size of this that issue would be removed. also in defense of some of the companies, shake shack always gets named here, the government was very unclear to begin with

or mixed messages to begin with about the point and backtracked on that. initially it was like take the money if you need it now it is much more like only if you absolutely need it and certain caveats. i just want to come back to a broader point, though, tony, in terms of the main street lending program. bull markets are functioning given the fed's action clearly the ppp program is getting money to a loft smaller companies that need it if not all of them. if main street lending program successfully addresses the gap in the middle will we look back and think, wow, no company that didn't need to go bust went bust because they did successfully get two or three programs out to cover the whole size of the company universe >> wilfred, i think you are exactly right. i think we should give a lot of credit to, you know, the sort of creativity here in trying to fill the gaps.

such a unique problem and we are going to see that and, again, assuming that main street lending program gets under ground and there are some potential complexities with the program that might inhibit take-up and i know there's interest in not repeating some of the problems of the perception that some of the wrong kinds of companies are getting assistance we always rather see the private sector fill that role but i do feel like that's what we'll see and creativity in the programs, by and large pretty successful so far. >> steve, quick final question to you which is this i mean, even if we put that optimistic spin on things, there is a limit to how long these funds last both from the government side but also for the companies receiving it does that increase the pressure on the government to allow reopenings almost sort of regardless of how successful they are >> i think that's right, wilf. the discussion, we keep looking

backwards. this is an interesting look backwards but we should look forwards and having a discussion now about having another round of funding available and fixing the mistakes of the past and making sure that the neediest companies and the worthwhile companies get that money. we may get into a situation where the government has to pick winners and losers and want to avoid that whatsoever. so we should be having this discussion right now about another round if it's not needed put it away. if it's needed we take it off the shelf, punch the button, get the money out to the small businesses so they can get up and running. >> tony, steve, thank you so much now, staying with the small business program, wells fargo lower today along with most of the sector this is the news that the bank is getting federal and state government inquiries of handling its ppp loans. kate rogers has the latest on that front. >> wells fargo revealing in a filing lat yesterday it received formal and informal inquiries of

state and local government agencies of ppp lons and hit with class action lawsuits in texas, california and colorado it is the first bank to disclose an investigation we did reach out to wells fargo but we are not heard back with comment after the doj confirmed to cnbc last week the criminal division is working with law enforcement and the banks to investigate the program adding, quote, analysis has already found indication of fraud among certain loan applications with the program. and just yesterday the doj announcing the first set of charges of two men in rhode island attempting to access more than $500,000 in loans for 4 different businesses that in fact had no employees. surely there will be more of these to come and the latest p 3p data show that 2.37 million loans made for a total value of $181 billion and a ways off from hitting the $310 billion cap, that as the average loan size comes down to $79,000 per

business back to you. >> clearly there's been lots of -- the word fraud mentioned lots of times to arise with this program. if a company is made a fraudulent request for ppp funds that punishment on the company opposed to banks >> absolutely true we have seen two men in rhode island charged but with regard to the doj investigation, bloomberg reported that the focus on the banks making the loans and but for now the first two announced against individuals who fraudulently tried to access the program for businesses not up and running with covid and no employees. >> the story on wells fargo slightly different thank you. we'll mention wells fargo down 2.5%, down 7% for the week so very much the laggard of the big banks this week and the regional index of course wells often seen as a super regional is down about 5% or so so it's a type of bach down more than the rest of the pack this week already

though wells at the bottom of the pile down 7%. the latest on small business news goes for more on that, sorry, go to cnbc.come/small business. weekly mortgage applications today, homebuyers coming back into the market. diana olick has a closer look. diana? >> reporter: it is possible they're coming slowly. mortgage applications to purchase a home rose for a third straight week up 7% from a week earlier and 19% lower annually and that annual loss is shrinking by the week. three weeks purchase volume down 35% annually demand last week led by strong in arizona, texas and california buyers are responding to low interest rates and virtual house hunting. the average on the 30-year fixed fell to 3.4% lower rates are not boosting refinance volume the applications decreases 2% for the week and higher than a year when rates were a full

percentage point higher and lenders not giving them the same low rates because there's higher risk for them should the loans go into the government's forbearance program over the next couple of months. wilf >> thank you for that. we have got about 45 minutes left of the session. no this is not the final hour of trade. multiple hours left of the session an higher by a handful of basis points on the s&p and lower on the dow "the new york times" company in the green up 7% reporting an earnings beat and the company gave a weak advertising outlook. we'll speak with the company's ceo about plans to offset that dive in sales. 30% of s&p 500 companies pulled guidance this year. how do you invest? what metrics should we be focused on that's still to come here on "the exchange. woman: my reputation was trashed online.

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i was getting a little bit of a robinson caruso look. >> before we get to that split between ad revenue and subs revenue i guess the first question would be on print newspapers versus online newspapers you must be counting your lucky stars you had gone through the pivot that you have overseen over the last four or five years. >> yeah, no, clearly, clearly this is a moment where although the home delivery newspapers were continuing to work like clock work, demand for home delivery, we have seen some real buoyancy but of course in a time of lockdown having a digital offering and a subscription model makes sense. what i want to say before anything is we wish this wasn't happening. we wish the story wasn't happening, we wish people with respect dying and the colleagues weren't like some of your colleagues having to go out and

cover this and risk their own health on the front lines in hospitals and elsewhere so this is not good news for anyone, this virus but it's true that with a subscription first digital news offering we are seeing very strong audiences. >> hear hear to your message in the middle of that, mark do you think that we'll see newspapers across the country go under because of that balance between print and online >> sure. now, "new york times," advertising is very important revenue stream for us but less than 25% of the economics. and we have this very strong growing revenue from in particular digital subscriptions and the reason the market has broadly welcomed our results today because they see that engine of strategic growth is also working really well but clearly if you're a media company, not just newspapers but also a lot of tv, across america

who are really dependent on advertising, i think at least for the coming months this is going to be quite a bleak picture because of the broader macroeconomics and the fact that many advertisers are not advertising right now. >> and talk us through that and including the guidance you gave about the current quarter on advertising. is it across the board all types of advertising spenders cutting or certain types >> honestly, wilf, if you thought about category by category and thought about the coronavirus and the impact you're reporting on you could guess what's happening and people aren't traveling, not staying in hotels. not many people buying cars. the list goes on so it's across print and digital. we said overall we guided in the current quarter of q2 so april, may, june we thought advertising across the piece would fall by between 50% and 55% so essentially halving compared to

the second quarter last year so this is a big hit it is a big hit to us as i have said it is only a relatively small part of our total economics but i have to say it is nonetheless it is a real indication of the scale of the broader economic hit which is happening in this country and indeed because we're feeling this internationally across the world though i want to say in asia we are seeing some pickup in demand for advertising. there are parts of asia where the rfps, the requests for space are coming in. and we are beginning to see some bounce back in some markets in asia. >> mark, in terms of the growth in subscribers ahead of expectations that you saw, do you feel like that's the typical "the new york times" customer just sped up a little bit or a different type of customer because of lockdown coming to you, i saw you mention because of your cooking section or other things that help them with the

work from home lives >> we are trying to do the best coverage we can and most trustworry coverage in the world of the pandemic and the consequences and we have a wonderful new section of at home and a print section at home which is some of the ways some of the things to do, some of the solving some problems you might have and some of the ways to ent enter tan yourself and your family at home and offering a broad spectrum and both the millions of new registered users we are getting and many hundreds of thousands of new subscribers far more than ever before, what's interesting is amongst these are some of the definitely younger, definitely more ethically diverse, widely spread people than we have seen and one of the things is a broadening not just of the total times audience we reach more than half of all american adults in march this year, more than half, it's not just the total audience but the

engaged audience is a broader audience and it's a much more diverse and younger audience than we have seen before. >> mark, just finally in terms of online and on the app, what type of stories are people flocking to and did interest on corona coverage decline at any point? have poeople got lethargic to te story? >> there's a peak particularly at the announcement of lockdowns around the world but also in the u.s. and a lot of anxiety in late march we saw extraordinary peaks an i would say that we're seeing now more interest in non corona as i think people settle into the strange period of isolation and working from home. actually their interests are broadening again and cooking, we are seeing immense interest in some of the food recipes and

food coverage of the times and seeing the crossword and games app doing really well. people are -- we have a consumer choice site. that's doing really well because people are doing a lot of shopping, remote shopping, shopping online happening as well seeing a broadening of interest and the heart of this, this extraordinary story is a health story, a medical story, it is a political story. it is a geopolitical story it is an enormous economic story and still overall is still dominating what people come to the times for. >> mark thompson, great to see you. thank you for joining us. >> bye-bye. >> the ceo and president of "the new york times." still to come, no cash, no problem. paypal and square outperforming this year as more people turn to electronic payments. will their earnings justify the rally? plus, while americans are still worleyed of krin that

concern fatigue may be settling in. a reminder to watch us or listen to us live on the cnbc app. "the exchange" back in a couple minutes. this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

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you can finish. - [announcer] finish your degree at snhu.edu. welcome back let's get the latest on the pandemic over to sue herera for those headlines. sue? >> thank you so much much good afternoon, everyone. the supreme court continuing tell conference hearings justice ginsberg is dialing in from the hospital room in baltimore where she is being treated for a gallbladder infection unrelated to covid-19. today's case deals with employees' right to opt out of covering birth control. a judge ruling that the new york democratic presidential primary must take place on june 23rd saying it's unconstitutional to deny the accurate representation at the democratic convention. the primary was canceled to

decrease exposure to the virus. dr. harris says the virus outbreak likely originated from an animal source saying that because it comes from animals it is very likely that the virus will reemerge at some point. and governor murphy of new jersey is holding a news conference right now we will have details next hour as always, for more on the coronavirus coverage go to cnbc.com back to you. >> thank you. paypal and square set to report after the bell today. within of the big questions is whether the digital boom is enough to offset pain for both kate rooney has more on that story. kate >> hey, wilf square and paypal have two conflicting factors when reporting today. let's start with the positive that digital payments boom analysts are expecting a shift to mobile payments due to the pandemic to help paypal and square it's a long-term headwind for

them paypal's venmo is expected the see higher expectation rates same goes for square's cash up but on the downside seeing plenty of near-term head winds for square, core business is ecosystem so think of the credit card terminals you see in coffee shops, for example small businesses are closed and analysts looking to see how severe the slowdown was especially in march. paypal is indexed to e-commerce and has international exposure and expanded to china. analysts wonder about growth there. and another big question is lending. they both provide working capital to small businesses and were approved to distribute emergency loans. analysts looking for any color on the role in the second round of ppp wilf >> kate, on that point, more and more looking like banks and yet still not fdic insured a long-term question whether they get closer to applying that sort of name and status.

the question i have is we're going to get really interesting insight on why people use venmo. clearly no one wants to handle cash at this time but sam point what do users of venmo use it for and i think for social interactions and must have fallen significantly, too. >> that will be really interesting to hear on the call, as well. they say that's a behavioral change once you use it there's a ripple effect that you might suggest, hey mom, i'll pay you for dinner or something like that you have a ripple effect and social network and even not with people face to face that could accelerate adoption and cash up and they tend to update numbers on quarterly earnings and see how the growth is there and could be a long-term win for them. >> thanks so much for that. still to come, companies across all sectors pulling guidance as covid-19 continues

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welcome back to "the exchange." let's have a check on the markets an the big movers. dom chu has that for us. >> the major stock indices moved with the nasdaq the real outperformer the gains today led by big technology see that reflected tech the best performing sector.

consumer, communications services really the outperformers. the laggards today, financials, energier and utilities some of the stocks on the move today is fler systems. they have seen demand for its thermal cameras an temperature screening products rise ginn the covid-19 pandemic. general motors shares on the rise after the carmaker expected better than expected quarterly results and will open some facilities may 18th and end on shares and the urge in beyond meat after the maker of plant based alternative foods reported sales that doubled in the first quarter of the last year beyond did withdraw the full-year forecast due to the virus pandemic and keep an eye on the shares. back over to you. >> we are about to do a section of guidance removed and makes a theme to make it harder and wondered whether earnings would be a factor to move stocks,

clearly beyond and others highlight that it has been even if it's back waward looking, it a factor. >> depends on whether that information is reflected in the stock previously right? some of these concerns have now been addressed about the results that we have seen past the idea that people have withdrawn their forecast is giving a lot of traders a little bit less clarity into the future but we're trying to figure out the next key driver if you can't say earnings growth of this the next quarter or the quarter after that is the real key but you have to find a metric to say, hey, here's what the future forecast looks like in some way, shape or form for these companies. >> the dow as we stand bang-on flat s&p up and nasdaq up over 1%. in the coronavirus pandemic it's become the norm for companies not to give guidance how do you invest in this environment where the future is so cloudy? joining sme craig callahan and

bryce dotty. very good afternoon to you both. craig, if i start with you, what do you think has been moving the market of late is it just technicals or is there some way to come to a pe multiple even though we don't have that clear guidance >> we're value investors and find the market to be extremely attractive right now we have been fully invested in the rebound and would expect stocks to be priced higher a year from now. >> if you're a value investor what valuation are you keying off if you can't be sure what the "e" part of the pe multiple is >> we never use pe or price to book we compute intrinsic value for companies and the market is priced 30% to 40% below fair value. >> bryce, where do you stand on this debate? are you finding it difficult to

value companies? >> that's very difficult without any guidance to really know what companies are worth and both the stocks and the bonds as a bond investor we are seeing a ton of debt being raised in the corporate bond market and the way people are valuing a lot of these companies is how long can they survive what is their cash burn? how much do they have, how much cash do they have on hand? if they raise a billion dollars and say an airline with a $50 million a day cash burn, okay, they just bought themselves an extra 200 days to survive and that's step one. step two is you need to see some sort of slowing in the spread of the virus. once you do that, you will see analysts start to use 2021 earnings expectations for trying to value stocks but that's -- that will be provide some lift somewhere down the road. two, three months down the road.

right now is bizarre as a bond invest nor is seeing company bonds do better as they are borrowing more and more debt it is supposed to be the other way around but what's happening is the more capital that they're able to raise in the stock and the bond market a longer the company can survive until things rebound so it's a little bit strange to be valuing companies on their survivability right now. >> craig, as your optimism on the stock market based on economic reopenings going smoothly and happening soon or is that not even necessary for your to be optimisting about these valuations >> first, at the bottom in late march we had all the behaviors and conditions typical of bottoms. and historically the stock market led the economy to -- by six to nine months and now the market is just telling us they expect a rebound by the fourth quarter of this year >> so tell us some of the things you're most attracted to at the moment, craig. >> we like the economically

sensitive sectors, consumer discretionary, information technology, industrials. those are -- some in materials, as well. sensitive to the economy. >> bryce, where you stand on the technicals what about the technicals in the short term >> well, you know, on the bond side, we like anything with credit we even like municipal bonds a great deal, taxable and tax exempt more fi there are minefields with the senior housing having trouble. mnuchin saying we'll borrow $3 trillion i don't know how that weighs on the stock or bond technicals right now and didn't seem like a good thing what we also need to do is to see some sort of guidance from the fed saying, okay, how many of that $3 trillion in debt are we going to buy?

how much are they going to absorb in that that will affect both stock and bond valuations in a way that i don't think anyone's factoring in right now if they come out in a big way and they soak up that debt that will be in t-bills, 2.6 trillion is issued in t-bills if the, you know, fed comes out an va kuccuums those up i think stocks and bonds do quite well if not that's a huge, huge pile of debt for the investors to try to swallow. >> bryce, craig, thank you very much for joining us. good to see you both. still to come, while americans worry about the coronavirus many starting to get concern fatigue and one group of people is feeling it more than others so that's coming up. with social distancing across the country auto dealers are feeling the squeeze. speaking with a company trying to save the industry and change the car shopping experience as we know it need help like never before

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welcome back the 2020 presidential election will come down to a handful of states and in those states concerns of covid-19 may be fading kayla tausche joins me now kayla? >> reporter: wilf, those worries might be fading with republicans but democrats in dense cities are still highly concerned take a look at these numbers from the most recent fourth installment of the cnbc change research poll con ducked over the week it shows just 39% of republicans still have serious concerns of covid compared to 68% of total respondents and 95% of democrats and it's a significant change from the end of march when you can see that concerns converged among all three of those groups. perhaps republicans are just getting restless in this

lockdown nature. when asked about freedom to move around, 33% of republicans said that that was excellent or good. compared to 55% of democrats, again, possibly because many democrats are in big cities and things are more walkable plens, that restlessness is translating of willingness to go out and do things and patronage businesses 77% of republicans said they'd go to a salon. 37% sporting events. 54% could use day care it is just single digit percentages of democrats but a group of activity that is really neither party is excited about is that's traveling. a majority of all said they didn't want to get on a flight, didn't want to use public transit or ride sharing so perhaps it is going to take longer for any of the groups to come around there. wilf >> kayla, it is kind of fascinating to see the level of partisan divide on this. i guess you would expect a partisan divide on the question

of is the government handling it well but to see a different split based on whether people are getting bored of hearing of the virus is surprising but to the question of is the government handling it well and how concerned are they about the way it's influencing the economy, where do we stand on that question? >> reporter: well, it is definitely manifesting in distrust of public officials, we have seen the support level of respondents for scientific professionals and the doctors and the administration definitely take a leg lower in recent weeks as people start to distrust some of this data and distrust the moves coming out of the administration that have been led by the doctors in this task force perhaps pl perhaps republicans feel like enough is done, the country's locked down for long enough and a reason why you see many state that is reopened are red states so far. >> kayla, thank you for that. still to come on "the

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welcome back to "the exchange." by the way, today on "closing bell," don't miss two big interviews we'll speak with the ceo of t-mobile about its earnings that are out after the bell plus, the ceo of sap will be joining us, you don't want to miss either of those interviews near final hour of trade, which will take place in that show, unlike this show over announcing it will make major cuts to its workforce as the company gears up for earnings tomorrow, let's get to all of that with deirdre bosa.

hi, d. >> hey, wolf the pain certainly continues for the sharing economy. uber's layoffs come just a day after airbnb cut about a quarter of its staff a week after lyft announced that it would reduce its head count by 17%. scooter's start-up, lime, has also made cuts and there's wework, whose trouble came long before the covid crisis, but is expected to cut more employees in the coming months the sharing economy is getting hit particularly hard amid the pandemic, because it requires you to share things like your car or your home or your office space. in a memo to employees, ceo dara kashwakazi said the cuts are necessary. remember these are corporate cuts and it's the drivers that keep them running and they have

been feeling the effects for weeks already. as independent contractors, they lack the benefits and protections that employees get and that's gaining more attention than ever, as they risk their health to keep these businesses running so when lyft reports tonight and uber tomorrow, this is a reminder that some of their biggest issues pre-date the globe pandemic i also want to mention, you mentioned the lawsuit, wilf. yesterday, california's attorney general in a coalition of city attorneys, they filed a lawsuit against uber and lyft, claiming that they are wrongfully classifying those contractors and they should be classified as employees. so investors, they want to know beyond the can quarterly numbers and how these business models are going to look, how those paths to profitability look in a very different world for the gig economy. >> d., certainly we lookforward to those numbers. i'll see you later on "closing bell" with ben sticking with transportation april auto sales expected to show the worst number in decades once all manufacturers report. but one bright spot which could provide a path forward for the

industry is the surge in online car sales as more consumers choose to shop from momentum rather than visiting a showroom. makai, thanks so much for joining us i'm firstly fascinated to what extent people are willing to buy such a big-ticket item like a car without having test driven it or seen it in person. >> yeah, great question. so what we actually see is that a lot of sales that are happening online now is for new cars and if you're buying a new toyota, a new honda, there's not a lot of variation dealer to dealer so what consumers are really gravitating towards is convenience and being able to do that online in many states is the only way to get a car now. like you mentioned, with the gig economy down, car sharing down, ownership is really important. and online sales in many states is the only way to do that

>> and talk us through exactly how your service, your software, your app helps make this possible it's not so much a challenge to existing dealerships, as opposed to helping existing dealers. >> absolutely. and so we work with existing dealerships. what we provide is the technology that enables online car sales. and so if you're on a dealership's website that's using our platform, you can basically do all the different things that you would do in store, only online you can see payment options, you can apply for a loan, you can get trade-in value, you can even go on virtual test drives. just like you and i are doing a live video chat, you can do that with a dealership. they can give you a tour of the interior of the car, show you how it works, get you comfort, and they offer contactless delivery or pick it up at the dealership >> still, wouldn't be enough for me pi me i would want to see it physically what number of sales are we seeing picking up on your app and what does that mean to the

total? >> so the overall car sales total low was actually four weeks ago. and since then, we've seen overall car sales increase by 148% but what's really driving that is online sales. it's up 152% in the last four weeks. and the four weeks before that was up another 100%. and so these car sales that are happening are really being driven by consumers switching to online and i think that's a really important thing, because in a post-covid world, retailers will need to shift and adapt to the way that they handle consumers and deliver value. i believe this is something that's not just here for covid, but here to stay afterwards. a new way for consumers to buy cars >> how attractive is pricing right now? not so much the headline price for the cars, although that might have come down a bit, but the financing options. have they come down a lot with interest rates >> absolutely. financing options from the oems are the best they've ever been right now. you're seeing a lot of rks ems,

zero payments for six months if you're in the market for a car, now is one of the best times ever to buy a car because the incentives are so great. >> what about secondhand car sales. people's balance sheets are under a little pressure. are they shifting to that market or not >> we're still seeing strong used car sales, about 40% of the overall sales we're seeing from the market and so online car sales are not really being distinguished too much between new and used. both are picking up distractionicaldistraction ical drastically as stimulus checks are going out and people are feeling a little more stable from four weeks ago. >> michia rohrssen, thanks for joining us coming up, we'll hear from the commissioner of the big ten on what needs to happen before he can kick off the big ten football season. plus, the ceo of papa john's

ow lchwi mis a"perun" thelsand tyler will begin just after this show and i'll see you coming up on "closing bell" at 3:00 p.m

welcome back, everybody. welcome back to the kitchen for "power lunch." our breaking news coverage of the markets continues right now. i'm tyler mathisen and we have a special guest we'll welcome back in just a moment take a look at the markets a volatile day of trading. the nasdaq is up a percent as technology leads the way it has been that way for some ti time that is after the adp employment report shows that 20 million

jobs was lost in this country during the month of april. and more earnings pain disney and general motors both taking $1 billion hits because of the coronavirus in the first quarter, but wall street is shaking off the bad news and we will explain why this hour and the paycheck protection program facing more scrutiny over fraudulent or questionable loans. we'll talk to the ceo of one bank, washington federal, which has processed, by now, more than 5,000 loans for small businesses but first, look who's here i am so glad you're back, melissa. good to see you. >> i only wish we could be in the same proverbial kitchen. some day, tyler. great to see you great to be here on "power lunch. more than 35% of s&p 500 companies has withdrawn guidance because of the impact from coronavirus, leaving investors to fend for themselves in this market let's get to bob pisani for more on this. bonn >> that'