whole economy. >> yeah. no, it's absolutely true the way this is going to ripple through the economy is really unfathomable right now and how long it lasts is another matter. melissa, great to have you back on "power lunch. see you tomorrow >> see you tomorrow. >> thanks for joining us the team from "the closing bell," take it away, folks >> thank you and welcome to "the closing bell." i'm wilfred frost with sara eisen. stocks struggling around the flat line except for the nasdaq, surging again, up over 1% with 59 minutes left of trade the dow and the s&p roughly flat let's have a look at what's driving the action new data from adp showing record private sector job losses, more than 20 million americans losing their employment in the month of april. oil has turned lower, snapping a five-day winning streak as supply fears weigh once again on the energy sector. with today's gains, the nasdaq is just points away from going

flat for 2020 as tech continues to lead the gains. financials and utilities amongst the worst performers today >> coming up on today's show, we will speak exclusively with sap ceo christian klein about his company's efforts to develop a coronavirus contact tracing app and what he's hearing from customers about the state of local business and the earnings reports will come fast and furiously this afternoon highlighted by lyft, grub hub, t-mobile and we'll speak with t-mobile ceo mike sievert ahead of his company's conference calls just after numbers cross. the big stories we are watching, mike santoli following the volatile trading action, steve liesman with a look at the economy and another sobering jobs number today, and deirdre bosa is covering uber and lyft mike, start us off >> the s&p struggling to stay in this zone for the past few

weeks. this is a one-year march it's flattened out since april is it resting, rolling over? it's a bit of a standoff i think people are saying right now it's preserved most of the rebound rally gains, perhaps if it got down in the 2,700 range, maybe it starts to change this idea that it's just kind of pausing for a moment last week's low 2,720. we're still kind of treading water and as everybody's been mentioning, mostly thanks to those very large megacap growth stocks not attached to the economy. that's v what's not standing still is the forward valuation the index is flat. we're now above 20 on a forward p/e basis because the earnings forecasts are going down fast. now we're at $130 per share looking at an 18%, 19% decline from last year clearly the market is not really trading on this year's number but it will show you how deep the hole is. this chart is the p/e of the median stock in the s&p 500. so itdoesn't really get affected by the megacaps, and

this is on a trailing basis. you see again, around 20 now, it has been higher here a couple years ago when we had that big surge before the tax cut, but it shows you on a valuation basis the market doesn't have really a big cushion. so therefore it's about the speed and the cadence of any comeback in earnings, which, you know, very hard to project but see if some investors are willing to do that at this point. >> sort of what i was going to ask, mike. we've gottena pretty decent sized batch of earnings and economic data. is there any clear picture as to where the economy goes and how long this lasts arising from that information >> i don't think just yet. really all we're doing is defining how deep the hole became in april. obviously, people are fixating on the incremental moves towards a reopening. you can see the market action itself it is money flowing into those companies where a comeback is not relevant to the outlook, the big five of the nasdaq until that changes you're

wondering if in fact the index as a whole can hold in place here, give a little bit, make a foray to the upside as you get that incremental information no one has a fix >> if it's not p/e multiples or any other valuation multiple, what are people looking senate technicals is one. other things like dividend yield where we have seen companies reiterate their dividend >> on a market-wide business, that's not helping very much because overall dividend amounts are going down there's an advantage over bond yields people are looking at equity-free cash flow yields perhaps compared to corporate bond yields. thab th maybe that gives a better idea in 2009, that forward p/e shot up and went vertical because people said we don't care about this year. we'll look for a comeback. it was at a lower valuation level, more like 14 times

forward, not 20. >> mike, thanks as always. another sobering look at the jobs market as new data shows private payrolls plunged by more than 20 million in april yesterday on this show, we spoke with fed vice chair rich clearer about whether more monetary and fiscal action is needed. >> the c.a.r.e.s. act was absolutely essential because, you know, the fed has lending authority but not spending authority. we can lend money to companies that are solvent with the expectation they'll be paid back, but we can't transfer income to households and firms, and obviously the c.a.r.e.s. act, through paycheck protection and unemployment benefits and other provisions, was very, very important to the economy and it may well be the case depending on how the economy evolves that more policy support will be needed from the fed and possibly also fiscal policy

>> steve liesman, a terrifying number once again on the employment front, albeit roughly in line with expectations. what are we focused on ahead of friday >> all the things that rich cla reda was talking about it's a two-stage process first off, you don't want to be benumbed by these terrible numbers coming out just because they're expected, doesn't mean they're less horrific we have to log that in this is a terrible situation with up to 20 million people in america losing their jobs. but the key right now, they're trying to figure out, okay, we expected this, what comes next can we -- is there going to be residual damage to the economy, and if so, is the federal reserve -- they have to be ready with a set of programs to address that we talked with jim boarden this morning just as the number came out. here's what he said. >> there's no question this is very, very disruptive and we

expect a very sharp increase in unemployment, a very sharp job loss, but we understand the shock and what we're doing here. i think everyone gets the program. we have to invest in the national health and get to the other side of this crisis. >> take a look at the numbers here you have the 20 million that adp reported today versus a forecast of 21 million. there was no possibility of an upside surprise on this. if it was 10 million, if it was 5 million, it would still have been horrific. we would have thought it was under counting looking at depth at the adp number quickly, you see that large businesses and small businesses, the smallest, did all lose jobs but small businesses worse than the large businesses a 16% decline from the employment level for march reported in april at just 13% for the largest companies. so everybody's shedding workers here, and a big question looking

at whether or not the ppe program is working, we're just not seeing it right away here in these job numbers where it's small businesses who are losing so many workers. >> i guess that's one question as to whether ppp is working in the immediate short term the other question is whatever level of success it's had is how long that can last and whether they will extend that program and increase it significantly or whether we have to reopen the economy almost regardless for the impact it has on health. >> you know, wilf, i think your question kind of answers itself, if there is no cure for this that's going to replace reopening the economy. people are going to lose their jobs at -- increasingly because the high frequency day that that i'm looking at shows two things. one is that stores are still closing and two is we're not seeing much increase at all in the traffic numbers that show people either going back to work or going back to the mall.

so we can try these programs the best thing we can do, i think, is to provide help to people to tide them over but i don't think we can restart an economy that is not ready for the people in it to restart. >> steve liesman, thank you. adding to the job losses, uber announcing thousands of layoffs earlier today as lyft gears up for earnings after the bell. deirdre bosa has more on both companies for us deirdre? >> so, sara, we know that it's going to be ugly the question is how bad and whether that's already baked into ride sharing share prices as you mentioned, uber laying off about 14% of its workforce last week lyft said it was cutting 17% of its workforce ride revenue has of course fallen off a cliff both companies have withdrawn their guidance so they're doing everything that they can to cut costs right now. unlike uber, lyft has not updated investors on its financial position since the

pandemic began as of the end of last year, it had just under $3 billion in cash and cash equivalents, but remember, it also burned through more than $2.5 billion last year in net losses, which was an ipo year now, also unlike uber, lyft does not have a food delivery business and only operates in north america, so it would have seen the effects of the coronavirus lock down, show up partway through the quarter, so it may not be as bad as what uber has experienced around the world. a key question as we go into these reports is whether they're now seeing any kind of their businesses rebound as some states lift those lockdown measures now beyond the financials, guys, ride sharing is really facing this existential question -- what does their business model look like? what does the future of the gig economy look like in a world where social distancing is the norm >> thank you very much for that. we've got 50 minutes left of the session. at the moment, we are flat s&p just higher, dow just lower. nasdaq holding on to a nice 1%

or so of gains after the break, we'll speak with the sap ceo christian klein about his read on the state of global business and his company's efforts to develop a covid contact tracing app in germany. these days, it's anything but business as usual. that's why working together is more important than ever. at&t is committed to keeping you connected. so you can keep your patients cared for. your customers served. your students inspired. and your employees closer than ever. our network is resilient. our people are strong. our job is to keep your business connected . it's what we've always done. it's what we'll always do.

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for more information on how you can stay connected, visit xfinity.com/prepare. welcome back a check in on the markets with 47 minutes left of the session dow down 0.2%, ns&p flat, nasdaq with 1% gains. tech at the top with that nasdaq performance. utilities, energy, financials at the bottom today let's look at some individual market movers. wendy's rising after customers are returning and sales are turning around same store sales fell despite reports of beef shortages of some locations up to 7%. activation rallying after an increase in engagement across all franchises the ceo weighed in on why consumption is up for him.

>> there's definitely an impact that's come from people being at home and having more time to be engaged, and i think we offer a form of entertainment that's very social, so when people are in a place where they are separate and they don't have the ability to connect socially, having this social lens that, you know, you view through entertainment is something i think is really valuable right now, and that's a big part of why our consumption is up. >> that stock up more than 5% today, 6% now. >> german chancellor angela merkel announcing the country will be taking steps to ease its coronavirus lockdown to help with easing measures, germany is calling on technology companies like sap and deutsch telecom to work on a contact tracing app to track infections in the country joining us to talk about those plans and the path forward is sap ceo christian klein. good to have you here. what exactly are you working on and how is it different than what apple and google are doing

in this country? >> thanks for having me. hope you're doing well we are tracing together with deutsche telekom, and the tracing app will help germany to see the lockdown in the country to come back to normal business very soon. we are on a very good path on delivering this to the market. >> what are your expectations as to whether this will help germany's return to economic activity and where do you stand given your huge customer base across europe on the likely shape of economic recovery in europe as a whole? >> absolutely. this app will help germany tremendously to overcome the lockdown, to trace where there are infected people and to lower the curve and to not fall back again into a lockdown. on a global scale, we actually see already in china that our businesses are recovering. they're fully back to business

we are meeting customers there are plans for the economy. in north america, we expect now further decisions to come back to a good business for us it's even more important now that the marriage out of this crisis is strong. and as more and more customers realize it is important to get more resilient in such a crisis, i am confident we are providing exactly the solutions, what the customers need to succeed in the digital age and to get more resilient against such a crisis. >> just on contact tracing, what about the privacy supporters or advocates that are concerned that it's giving too much personal information, literally tracking them, to companies like yours or to governments that, when we're done with this health crisis, could be used for malicious intent or just as an invasion of privacy? >> we deliver the app in the natural way and we were in

contact with all development security committees of germany but also across europe so we made sure that we had the highest security standards so that the data of our citizens is extremely secure >> i wanted to ask, christian, about your own company's guidance recently released, 2020 guidance, everyone sort of surprised to the downside by a bit, but i think pleased that you reiterated the firm's long-term targets, which are timed to come into place by 2023 does that suggest you see quite a big short-term impact but no long-term impact by the p pandemic >> absolutely. i'm talking to many ceos and many politicians sap was already talking about the intelligent enterprise before the crisis. now in the crisis and after the crisis, all of these decisionmakers are looking for intelligent software to make their supply chain more resilient, of applying new business models to not, you know, get blocked by this

lockdown of having intelligent commerce solutions, of having intelligent solutions to provide new flexible financing models to their customers. and all of these solutions are getting provided by sap. only sap can provide the intelligent enterprise end to end. this is why we are so extremely confident about our financial ambition in 2023 >> well, you'veobviously got a great read on company spending and what i.t. budgets are looking like, and you've got a pretty good global picture which parts of the world are you seeing strength and which parts are you seeing weakness? >> as i said before, china is already coming back to business, and we see that there is a huge recovery of pipeline already the same is happening actually in europe. in north america, we are still waiting for some of the decisions here to come back to normal business. but a good thing is that everyone is realizing that a digital transformation is not

optional it's a must to succeed in the digital age. this is why we are so extremely confident we will overcome this crisis in a very strong fashion. >> christian, until recently, you had a co-ceo the structure has changed of late part of the reason given was that the pandemic has changed the environment. why has the environment meant the previous structure that had served for quite some time and served the company well was no longer the right structure >> we had a great start in the model. we made very important decisions for our customers to signify the organizational setup, to make it easier for our customers to do business with sap. afterwards, we were heading into this unforeseen crisis, with lockdowns in one country after another, and in such a crisis, you have to do decisions, fast decisions, agile decisions, on an hour-by-hour basis to safe guard our customers.

jen, i, everyone felt we had to come back to a clear leadership structure. >> clear leadership is always needed for any company always whether you're making decisions every day or every hour. so why the kind of clear reason that that warranted her leaving the company? >> when you are acting in such a co-leadership model, you have to make decisions on a frequent basis, and you have to share certain ways to go forward for the company. jen and i were on many topics on the same page. of course there are always a few topics where you have differences on opinions. and when this crisis kicked in, of course this accelerates because then you have to have the accountability to make clear decisions in an agile way. you cannot paralyze this company, and this is why we both felt that it's the best for sap, our customer, and our employees to come back to a sole ceo leadership model >> okay. i'm not trying to go over the

point ad nauseam, but are you suggesting now that you kind of don't have any discussions with any of your lieutenants and it's just your way is the way forward no matter what >> no, not so much about right or wrong of course, you know, there are a lot of important decisions to take, you know, about the way forward of sap and again, jen and i were for many of these points on the same page and there were definitely not any personal issues related to that. but in this crisis, we have to move now fast. customers are now coming to us and asking how can we overcome issues in our supply chain because of the lockdowns in certain countries? we of course have to also safe guard our employees and we have to decide how fast we are ramping up our own operations. and this, again, you know, is well informed that we do this in a distinct way, and going forward the way how i see sap is as we are transforming into an intelligent enterprise, our mission has to be to transform

all of our customers into an intelligent enterprise, to help them come through this crisis and become more competitive in the digital age. >> christian klein, thanks for joining us >> thanks for having me. >> after the break, the path forward for retail, one national chain revealing new details orn eiits plans to reopethr dos with some major changes for customers. ♪ ♪ ♪

customers will see major changes to the shopping experience courtney reagan has the details. >> welcome to your shopping normal gap is among the latest to announce its gradual reopening plan we're going to see a different experience when you go goo into those stores the retailer plans to open 800

of its gap, old navy, banana republic and other brand stores by the end of the month. 800. starting in texas this weekend the fitting rooms, though, will be closed. the restrooms too so make sure you plan ahead returned merchandise will be quarantined effectively for 24 hours before it goes back out into the store and like other retailers, gap said it will enforce social distancing in stores, mask wearing for employees and shoppers, plexiglas will be installed at checkout, hand sanitizer will be at the door. it is unclear how many of gap's 80,000 furloughed workers in north america will end up coming back the company just doesn't have a purview on that yet but says they will work within the staffing levels that they need if they need to fill in some of those gaps also it's unclear how those employees will feel about enforcing some of these new procedures now, gap does say that only 20% of its revenue comes from enclosed shopping malls so that

could help surveys seem to indicate shoppers are more reluctant to go into a closed mall than an open or strip store location they'll be offering curbside pickup at 75 locations to get started and that number will eventually ramp up it will be a new experience. back to you all. >> i didn't even think about the return issue that is wild that they have to quarantine -- >> yes >> i guess it makes sense. gap couldn't get people coming through its doors before this crisis how do they expect they'll be able to do that now when you have so many millions more unemployed and people, you know, some people, at least afraid to go out >> yeah. huge question for gap and others it wasn't the only physical retailer that was struggling to entice shoppers to come to the store. they would sort of point us to the e-commerce operations, which have done fairly well and they're trying to use those

stores, obviously to help fulfill those orders this is going to be tough. think about all the retailers that have spent so much money and time on the experience in the store and a lot of that is kind out the window. if you have to limit the number of people in store, can't have a personal interaction because you have to stand far from each other, no restrooms or fitting rooms. this will be a tough sell. >> courtney,er thank you still ahead, a barrage of earnings set to hit the tape after the bell we'll break down all of the reports and speak with t-mobile's new ceo ahead of his earnings call. a check on bonds yields moving high eveer today ten-year at a high today short end falling a little bit as you can see yet that slight steepening of the curve once again not helping the banks which are towards the bottom of the pile california phones offers free specialized phones... like cordless phones,

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and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program call or visit welcome back we are taking a look at the market the dow is down about 0.4% right now. here is the sector inside the s&p 500. three groups are green right now. technology continues to be strong, up more than 1%. consumer discretionary communication services also in green. utilities, financials and energy are the worst performing groups right now. nasdaq still positive on the strength in technology on the day. the s&p is down about a quarter of 1%. a quick check on shares of

beyond meat, that stock jumping after reporting sales more than doubled in the first quarter thanks to fresh demand from retailers looking to bulk up on alternative meats. time for a coronavirus news update with frank holland. >> the latest on the pandemic, california reporting its largest one-day increase in virus cases today even as governor gavin newsom is expected to announce reopening steps tomorrow the state reporting 2,603 new cases and 95 new deaths. 64 new york children have been hospitalized with a mysterious inflammatory illness possibly linked to covid-19. symptoms appear days to weeks after acute covid 19 illness and include fever, trouble breathing. april was the strongest month of the app store in nearly three years according to a new research note from morgan stanley. the pandemic forced more and

more americans to stay at home as always, for more coronavirus coverage, head to cnbc.com sara, to you >> after the break, disney the latest company to suspend its dividend, joining a host of other big-name firms looking to cut costs in this environment. we'll discuss the humpbt fnt for resilient equity payers. i know that every single time that i suit up, there is a chance that that's the last time. 300 miles an hour, thats where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me that i'm protected. during turbulent times, consider protected lifetime income from an annuity

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disney the latest company to announce it's spending its dividend which will save $1.6 billion. more than 200 publicly traded firms have cut dividends this year 45 of them on the s&p 500 index. the highest level since 2009 joining us now tobias leftkovitch. where does this stack up to your expectations >> so, clearly i'm concerned about the dividend environment likely to be down this year in the order of 25%, we could see as much as 30% depending upon if the banks have to kind of join the party. for the most part, banks have suspended their buybacks, but could they be almost publicly shamed into also suspending dividends? that will be an interesting

thing to watch >> yeah. they say that they're preserving those dividends for now. tobias, how do we find companies that are not suspending their dividends or even raising their dividends? there are a few of them out there. >> so there are certain industries that do well even in a difficult environment -- staples, utilities, large-cap tech names that are less subject to the cyclicality or social distancingaspects today. what's been a bit more interesting this time around is because of the shelter in place, work from home, social distancing, certain areas in consumer services that we would have not seen get hit, for example, the hospitality industry is obviously getting hit right now. but there are two ways one is look for the industries that don't typically have the same kind of cyclicality, have more resilience. and we've looked at which companies have above market dividend yields but low sbcs,

the balance sheets are rock solid. >> when you speak to your clients, dividends are a key factor at the same time, as mike santoli always points out, even if you can get a 3% dividend yield from a certain company, these share price moves tend to be much more than that in multiple directions each week. >> sure. a lot of people were feeling resilient earlier this year, and the bank stocks for that reason, and then you see the stocks down 30%, 40%, so giving up the dividend yield would have been a smarter move back in january on the other hand, you also have companies that have looked at, you know, their dividend yields well, well above the market, and that's usually kind of a signal they're about to be cut. so i think investors have to be able to kind of parse through that again, that's why we look at things like the cbss to give us

what the bond market believes about the potential for dividends to be covered or not >> what about capital spending, tobias how hard is that going to be hit? >> so, look, we think uses of capital across the board are going to be hit. di dividends could be down as much as 30% we think capital spending 20e6r% we think buybacks will be down in the order of 50%. some of that is because industries can't do it anymore and other industries trying to preserve cash to get through this chasm of the downturn >> weighing in the dividend point and others, what's your top sector pick for the rest of this year? >> i tend to be a little careful and not talk about one i'll talk about a couple i think health care is an area we were concerned about earlier this year because of political dynamics and obviously with the coronavirus and with the need for the health care industry to be kind of our heroes right now,

that's kind of gone on the wayside in terms of populist political rhetoric on the other side, we could be looking at financials. even within tech, i think there's more interest from our perspective in areas like chip and hardware >> are you still pretty cautious on the overall market? >> yeah, i sill still am, sara i think the market is a little bit ahead of itself right now. when i talk to investors, i kind of get the commentary of everybody says the market's run too far, they're cautious, therefore, i want to buy the market and i think they're talking themselves into some justification or rationalization. there's been a lot of what i call fear of missing out but also a lot of fear of meaningfully underperforming as the market kind of runs, people feel compelled to jump in, and, again, we think the market is probably going to call 5% ahead of itself >> 5%. all right. tobias, thank you.

>> you're very welcome >> good to talk with you this is the last commercial we are going to take before the close. up next, uninterrupted coverage of the final minutes of trade when we take you inside the market zone. as a reminder, watch or listen to us live on the go on the cnbc app. operating just fine remotely. yeah, everything is running smoothly with the now platform. (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you.

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17 minutes left in the trading day. markets off by about half a percent, the dow down about 150 points nasdaq is positive with technology outperforming again today. and back by popular demand, for his last-chance trade, josh brown. josh, what are you picking today? >> wow, popular demand i like it. i want to talk about home remodel and home renovation. home depot and lowe's specifically, the two biggest names in home remodeling if you were around after the last recession or even more especially the one before that in the wake of 9/11, there was a may r m major trend in the stock market and real life about nesting and people spending money on home

improvement. in this crisis specifically, we have never had more time to sit around, stare at our walls, stare at the paint, the finish, the flooring, what do i want to do differently interestingly enough, bank of america, merrill lynch, looks at aggregate credit card and debit card numbers, were able to determine that home renovation spending was the only category within hard line retail that saw an uptick in march and everything else fell off a cliff and april numbers have been strong too on home depot, 214 is your stop, risking about ten points the market will tell you if these are going to roll over you'll know you're wrong very quickly. if it stays above that level, which has been recent support, i think you have a decent risk/reward here i like lowe's too, slightly higher risk from these levels because the rebound has been stronger than home depot, but both should work for the same reason if you're a longer term ventilator,

investor, ignore the stock >> now the question everyone really cares about what remodeling have you been doing at home? >> i mean, we've -- we bought a house 11 years ago so it never ends, actually something is always broken or always making you sick of looking at it. >> long term >> we never stopped. >> there is the pick the last-chance trade for today. we have 14 minutes left of the session. down a half percent on the s&p 500. commercial-free coverage of all the action heading into the close. mike santoli here to break down the crucial moments of the trading day with josh brown. let's kick things off with the broader markets. as i mentioned, down about half a percent on the s&p, down 161 points-wise, basically back to the lows of the session. nasdaqgiving up a lot of its gains but still the outperformer relative to the other indices,

still up 0.6%. mike santoli, only two sectors in the s&p holding on to gains, consumer discretionary and tech. oh, mike's mic is not on it was great commentary, by the way. we'll have to get it back. josh, clearly slipping a little bit here as we approach. do you get worried by some of these closers that we're losing steam or the fact we're staying within relatively light range in the last couple weeks compared to the prior month is that encouraging? >> i mean, it's not discouraging because we're not free-falling anymore, but you take technology out of the equation and the stock market ex-tech has been flopping around in a big range we're now back to where we were on april 17th. so a lot of time has elapsed since then we haven't made progress i'm not saying we should have because i think we're now in the

phase where the idea of 20% unemployment, even if it's extremely temporary, meaning one quarter and not two or three or four quarters, it's a huge challenge for most of the real economy that isn't selling cloud software subscriptions so i think the fact that we've got this entropy within the reality, internals falling apart, it makes perfect sense based on what i would guess would be happening right now so i'm not squeezing by an opportunity from the rooftops but i'm also not going to cash and panic. >> mike, walt disney's stock today encapsulates some of the indecision about i think the overall market that you're seeing today it was up 3.5% earlier despite the suspension of the dividend, the bleak outlook, the fact that so many parts of the businesses including parks and the profitiprofi profitable area are being slammed right now. the stock is flight. they're reopening shanghai

disney on monday is this a reopening trade or not? >> it's a reopening trade for anybody who's buying it today, and i think it also is a similar calculus to what you're finding in a lot of stocks, which is it's down from 150 to 100 in a few months clearly it's baked in a lot of the weakness that everybody sees right in front of us, but just it's unclear when they're going to get back to those big cash-generating parts of their business, which are the ones that are shut down the most right now are going to come back it's those who feel as if, look, you always buy a walt disney, a leader in a big industry on a big dropdown like that against those who say i can't wait and have no clarity about it so we don't know how long we'll be effectively riding this shutdown trend. >> more meat packing plants shutting down from coronavirus outbreaks, disrupting the meat supply chain in the u.s. i spoke to rodney mcmullen, chairman and ceo of kroger, and he discussed how the company is

dealing with the meat shortages. >> if you're flexible on eating between chicken, pork, and beef, we constantly have one or two items in, usually three. we're working with all of our meat suppliers figuring out how to get products that weren't diverted to restaurants before to get diverted to our stores. >> josh, you know we're coming to you on this if you're even more flexible besides just meat, beef, chicken, and pork, they're bringing on more impossible foods. it was announced yesterday that's going to go into 1,700 kroger stores. mcmullen sounded pretty optimistic on alternative meat, that this is here to stay and will only accelerate the trend, seeing the shortages here and cooking at home. what say you >> so, i concede the fact that less availability of one type of meat might lead to more discovery of another type. unfortunately, i think people

will make that attempt and they'll say this isn't as good, when am i going to get the real thing back so there's probably a decent sized market for, quote, alternative meat i don't think it's as big as the stock market thinks it is. so i'm not, like, trading beyond meat i know it's up from 50 to 125. it's had a huge rally off its low. but it was a $240 stock too. so i don't know what it trades based on other than headlines. not my cup of tea. >> phil lebeau has more details for us phil >> a small profit in the first quarter for general motors why was it only a small profit because covid-19 took a big bite out of the automaker, $1.4 billion. here's ceo mary barra talking about the impact during today's conference call. >> the outbreak significantly affected ebitda adjusted in the quarter and we expect an even greater impact in q2 because of the production of phased restarts and what we believe

will be lower market demand. >> knowing that the second quarter will be slower than the first, here's the outlook for gm they are going to plan to restart north american plants on may 18th it will be a phase aed, gara ee phased, gradual production they hope to pick up inventory as quickly as possible the focus, cutting the cash burn they ended the first quarter with $33 billion in liquidity. plenty of money to make it through the second and third quarter. if they had no production at all, they could make it to the fourth quarter having said that, for not only gm but all of the automakers, the focus right now, cut the cash burn and save as much cash as possible. that's why when you take a look at gm, ford, and fiat chrysler, consider the stat. combined they all raised $45 billion in cash since march. that's their way of saying we need to have as much cash on hand to ride this out. >> phil, every time i read about

these companies and the pain they're enduring, there's the caveat they're in much better shape than the 2009 crisis when most had to go to the government for help having said that, how dire is the cash situation now gm i think is the only one to record a profit so far after ford's results were pretty bleak. >> it's dire from the standpoint that if these plants start up and let's say it's a pretty good start-up in mid-may and then you start to see gra j yudually mor shifts, more production, buying more vehicles, more retail sales, they'll make it through this now, the caveat here, sara, is if you and i don't go out to the dealerships, if sales still stay at a pace of 9 million or 10 million vehicles, then it's dire then it's them saying we'll have to make other cuts, both in terms of what we're spending and in terms of what we plan to spend. it's not to the point of asking

the government for money, but watch what happens in the next quarter or two for the automakers >> phil lebeau, thank you so much josh brown, do you want to play on these names >> no. i think -- well, ford is the same price it was 20 years ago gm probably made its cycle high in june of 2018. i think that probably coincided with peak auto sales or maybe it was a few months off but so these stocks were not doing particularly well before there was a shutdown and a lockdown of one-third of the earth's population i'll not sure why all of a sudden people are going to want to have a big position here. so the valuations are decent they always have been. that never changes with the automakers i think it's going to be in these names. they should always be trades you should try to buy them on breakouts when there's momentum. right now of course there's none of that. >> how can you even tell, josh, in this environment, whether a stock is cheap

you see the declines, 40%, 50% >> you can't. >> how do you put a valuation on a company like this if you have no forward looking view of what the business will be >> the enlightened way to think about it is to say i'll take is cyclicly adjusted price-earnings rat ratio. gm has been around for 70 years. you can do that with them. you can do that with caterpillar, with ibm, not to say that one era is going to be the same as the other but you're normalizing somewhat and saying let's average this in with the other nine years where there wasn't a global pandemic what are the earnings power of a company like this typically? to that's the enlightened way to do it. the other way to do it is just not play so you have a stock that's technically in no man's land, forget about the dividend, that used to be the thing that attracted people to the name, okay, that's off the table, so what are you really buying it's a piece of paper. do you want to buy it while more people are coming in to buy it or buy it when it's unclear what

the direction might be of buyers and sellers? that's why i would look at this technically. i would just say, there are 3,000 publicly traded companies in america why do you have to own this one? because you've heard of it because you drive a chevy tahoe? what's the reason? on what screen would this pop up as a stock that you need to own right now? no screen. so i don't really understand why people would be focused on it. there's way too much to do right now. >> let's talk about another name, grub hub, set to report results after the bell kate rogers has a preview. >> they're expecting a 4% loss on revenues. there will be about order frequency, daily active grubs as more diners were required to stay home around the country in march and april. it picked up in new york city where more restaurants are relying on delivery more now than ever. and watch profitability guidance for q2 and the full year will be in focus the delivery wars have likely

only intensified during this time as everyone is staying home and ordering in even more. back to you. >> kate rogers, thank you. mike, what's the setup here on a grub hub we're all ordering more food delivery the economics of these companies are difficult to figure out. >> it kind of fits in the lockdown basket to some degree, but it's an interesting test because we're maybe pumping more volume through this network at a time the business model is still very much unproven scrutiny on how they charge restaurants and with those charges they're not really profitable on a bottom line basis. the stock is up nicely in the past couple months but it's not had a good trend the last couple years. >> up nicely today what are you seeing, mike, in the market internals now that we have under three minutes left until the close? >> still pretty soft, pretty much all day, even when the indexes were higher. you see more than 3 to 1 declining versus advancing st k stocks on the new york stock exchange

clearly 75% to the negative. a little better on the nasdaq. the s&p against the equal weighted version, so the average stock pretty severely underperforming all day. that's been, you know, obviously a pretty familiar story with those very large megacaps kind of carrying things, holding the indexes together the volatility index, up in the low 30s, still a little sticky up there it really is tracking to some degree high-yield bond spreads so the risk perceived in credit is sort of helping to hold up the volatility index some people say the vix is under price relative to where bonds are trading right now. flat on the day. >> mike, clearly the dollar is also stronger today by about half of 1% the correlation we've seen there, it's weakened, though, compared to a month or so ago in terms of its impact on risk assets >> it has. it's not something that seems playable on a day to day, right around that 100 level. you mentioned earlier, seeing yields tick up in the treasury

market today it seems as if mostly because treasuries talking about issuing a lot. this isn't really a response to macro signals as far as we can tell, at least today, as much as it is this idea of longer term government paper is on the way >> just over one minute left of the session. we are not far from the session lows dow still down 1%. the s&p is down 0.65%. the nasdaq the outperformer but only up by half a percent now, the russell down 0.8%. within the s&p, two sectors with gains, tech and consumer discretionary. the other nine sectors are in the red led by utilities, energy, and financials financials you're seeing at the regional down 2.6% today, the investment banks relatively outperforming, down less than 1%, the goldman sachs, interesting for week, wells fargo down 7% compared to goldman sachs which is essentially flat we mentioned earlier, oil having

had a great four or five sessions and up some 20% for week, is down today 2% and the reason partly why, energy sector stocks are suffering today the nasdaq right near the session lows, down 216 points or 0.9% for the dow the nasdaq just higher by 0.5% sara >> disappointing close for the bulls for sure welcome back, if you are joining us, i'm sara eisen with wilfred frost along with mike santoli, cnbc senior market's commentator. look how we finished up the day on wall street we swung around between gains and losses all day and we sort of saw the stocks take a spill toward the close dow finishing lower 218 points in the s&p 500, only two groups ended higher that is technology and consumer discretionary. everyone else got hit.

utilities, financials, and energy the hardest hit, the market closing down 0.7% tech was a standout again today so the nasdaq was the outperformer all day long, as it has been for the year. it closed the day up about half a percent, which leave us for 2020 down 1.3% on the nasdaq the russell 2000 also lost almost 1% on the day so breaking that few-day win streak we were seeing. stocks are still up for the week except for dow get ready for another whirlwind of after-hours earnings. we are moments away from lyft, p paypal, scrub, etsy, wynn, t-mobile, peloton, all set to report moments from now. we'll break down t-mobile results with the company's new ceo. his first quarter. joining us to talk about the market today, holtz management

director josh brown. liz young joins the conversation mike, on a day where we saw treasury yields reach their highest points since april and stocks really close near session lows what was the momentum about today? >> kind of tired kind of acting a little heavy on the stock side of things actually from 3:00 yesterday afternoon, s&p down 2%, so a week ago today is when we hit the high for this rebound rally. we're down 3.5%, 4% from there obviously that day a week ago was when we sort of frontloaded a lot of the incremental good news you had the gilead trials that came out well and a lot of news flow about potential reopening of the economy it seems as if, you know, we kind of feasted on that news, got the index to a certain place that was really up toward some kind of critical levels, kind of some old highs from last year. anyway, it seems as if there's not that much impetus to get beyond it and here we are with a 3.5%, 4% decline no real net damage big picture, but the market is in a little

bit of a no man's land, hard to get traction >> t-mobile numbers are coming out. revenue $11.1 billion, the forecast $11.4 billion eps coming in at 1.1 versus a forecast of $1.02. a beat on the bottom line but not the top line they had 777,000 branded postpaid net ads the expectation was 750,000, so it looks like a slight beat there. but they are removing guidance from the full year, not able to give it in this environment, though they send the end of the next quarter they hope to reissue guidance they give a q2 guide for net a adds, which is zero to 150,000 quite a big range there. speaks to the difficulty all sorts of companies have in terms of addressing these types of issues of course so much in this, mike santoli. first one post the merger, first

for the new ceo. the stock -- they just moved the stock so i didn't see what it's doing. >> just about flat >> not performing too badly. >> most likely going to trade from here on, on the net ad numbers and the progress in terms of costs, integration, post merger. it's not an area anybody has high hopes for but steadinessi probably what you're after if you want to look at somethinga the new number three in the wireless carrier space >> let's bring in -- we're not ready yet. sorry. josh brown, i'll come to you first of all then in terms of what you think of this space is this a pure play connectivity rather than dabbling in trying to develop content strategies and whatever else? is this a good place to be >> yeah. i'm not a big fan of the content strategies i like the idea of being a wireless carrier, focusing on that, building out technology,

getting the marketing right, and coming up with a way to pay a really good defensive dnd. that's what these businesses should be doing. i don't think they should be creating websites and tv shows i'm in verizon, which has done some content, but i think it's a better bet than t-mobile 4.5% yield, 12 times earnings, fairly steady. the only mark is the debt hold, over $100 billion in debt. but i think it's very manageable given how low interest rates are. and they can refinance at will at this point. i wouldn't use it as a reason to avoid it i would own verizon right now. >> okay. i just want to bring you into the conversation, liz, as we await more names reporting earnings what are you looking out for in terms of themes? are we able to get any themes on these earnings calls as to the path forward and the view from the c suite about reopening and how businesses are going to perform? >> well, the first theme is when we look at the companies that are reporting today, it's a lot

of technology, a lot of communications these are the companies that expectedly did better throughout the drawdown and should be able to carry us into the future, even if we have adjusted behavior i think to mike's point earlier in the hour, what we need now in order to actually have a rally that's durable is better expect tap expectations growth, across the board and a more broad-based rally and strength at this point we're still relying on way too few companies to drive us forward. a day like today when there wasn't a lot of headline news about the macro data, we don't have that fundamental strength to take us to the next leg up. >> more earnings peloton. >> peloton came in with higher than expected revenue and strong q4 guidance. for q3, that loss of 20 cents a share, revenue of $525 million, 66% annual growth and compared with revenue estimates of $488 million. net loss in q3 of $55.6 million

primarily driven by nonrecurring litigation and settlement expenses in the quarter. it gave strong q4 guidance on revenue more than doubling year over year to $520 million from estimates of $383 million. some big growth in connected subscribers. that's on the bike and treadmill. up 94% annually. and digital subscribers on the app up 64% annually. total subscribers now 2.6 million. they also saw very low churn with reactivation of subscriptions during the period especially in january and the last few weeks of march. they're not selling or delivering now but they are delivering the bike to your door demand has grown so much in q4, they are seeing longer delivery times in getting the bike to customers. peloton continues to pay full salary and benefits to all employees and are making all rent payments across retail and studio locations and after extending its 90-day

free-trial day period, peloton has over 1.1 million people signed up for the free trial and over 8 million workouts completed from march 16th to april 30th a lot of growth for this streaming fitness service that is of course playing to people who are at home and can't work out in a gym anymore back to you guys >> quite an optimistic outlook there in terms of what they could share going forward, the stock rocketing higher after hours, up 5 persi% or so. lyft earnings are out. deirdre bosa >> this stock is rocketing higher, up more than 10% in extended hours because this was a much better quarter than the street was expecting they were expecting some big losses but revenue and losses actually beating estimates, revenue at $956 million versus $893 million expected. that's growth of more than 20% year over year net loss of just under $400

million versus more than a billion dollars in the quarter last year as they were preparing for their ipo. adjusted ebitda loss was $85 million and improvement of about 60% year over year the street was expecting more than double that number. cash position, this is important, because we know that the ride sharing companies are in for a world of pain, that hasn't changed significantly from the end of 2019 the company has $2.7 billion in cash and cash equivalents as of the end of the first quarter ceo logan green in the release saying lyft can weather this crisis and it is responding with an aggressive cost reduction plan that of course includes the layoffs we've been talking about. last week lyft announced it was cutting about 17% of its workfor workforce. all in all, i think this shows that lyft was on track for a pretty good quarter as ride sharing starts to show profitability. but, of course, the pandemic hit and lyft is now in crisis mode that does show up when you dig into the numbers a little bit.

active right fielderdght fielde people abruptly stopped taking rides closer to the end of the quarter and as lockdowns were put in place we will see a lot of pain in the current quarter, and i don't think you should extrapolate uber fromthis because it is global and has seen a slowdown in its market far sooner than lyft has lyft just operates in north america. it will be key to hear what is said on the call and what they're seeing in the last month. guys >> yeah. i mean, 23% revenue growth seems impressive in this kind of environment for the ride sharing company. deirdre, thank you that stock up almost 15% after hours. wynn resorts earnings also out contessa brewer has the numbers. >> what was estimated was loss per share of 72 cents, and what's coming in loss per share of $3.54 the estimate on revenue was $1 billion. what's coming in is $954 million

so a slight miss there on revenue as well. let's get into this. we know that the macaw casinos were shut down for gaming operations for two weeks in february they have reopened but there are no tourist visas they're not seeing a significant ramp in business las vegas shut down in mid-march and there's a 19% decrease in las vegas for operating revenue. in gaming, they often pay attention to the ebitda numbers, these property earnings, and what's so important there is that they were estimated to come in maybe $205 million to as much as $470 million. instead we're seeing a loss of $5.3 million in property ebitda. the company has suspended its dividend now they say they have cash or cash equivalents on hand of $2.89 billion. we're going to get a lot more color on the call starting at 4:30 here about how they plan to reopen, what they're expecting

for business, guys >> contessa, thank you down 2.7%. grub hub is out, kate rogers >> grubhub reporting break even. analysts were expecting a 4-cent loss on covid, basically, saying grubhub will be using nearly all of our profits in the second quarter to generate as many additional orders for our restaurant partners as possible, also addi ing 23.9 million acti din diners, an increase from 2019. and one more comment on covid saying it is a net tailwind for growth metrics for this business the stock is down over 2%. but hearing it's a net tailwind is not something we've heard since earnings season began. >> kate, thanks so much for that, down 2%. back to t-mobile, whose numbers just hit, slight beat on the bottom line, slight miss on the top line

and pulling for guidance to have a few underlying guides for q2 mike sievert, the ceo, joins us. welcome and thanks for joining us >> thanks a lot. great to be here >> and, you know, congrats on taking over in full and completing the merger. the first question, what level have you seen in terms of change of usage given that people are at home? does it alter when it's mobile versus fixed are you seeing higher or lower on the mobile side >> well, i'm so proud of our network team the network is performing incredibly well. data traffic is up, obviously, but what's really up is minutes of use, up by a third, picture messaging is almost doubled, gaming is doubled, video conferencing more than doubled what's happened of course is the network has moved, too times of day have changed and locations. people are using it much more in

the suburbs, less in the cities. our network is performing better than ever before with less congestion rates than ever before we're really proud we're standing up to the need. >> what about user growth, mike? given that most stores are closed and everything is sort of on hold, can t-mobile continue to keep up its share gains that it historically has seen and helped the stock and helped the business >> absolutely. you know, we're five weeks into this merger and amazingly we had to pull it off during this global pandemic and this incredible situation i old say that if anything these five weeks have taught us that there may, if anything, be more synergy potential in this business and more growth potential than we saw before the transaction closed one of the fuels of that growth and that synergy potential is on the sprint side. as more and more of those sprint customers get exposure to the

t-mobile network, and we've turned on nationwide roaming, their satisfaction levels are rising we may see other improvements faster than we were expecting including network synergy attainment, retail, procurement attainment five weeks have talk us a lot. obviously we're dealing with some incredible issues, but there's nothing but momentum behind the potential of this business and the medium and long term but we have to work through the covid issues in the short term for sure >> you mentioned the network is holding up despite the increase in usage does coronavirus alter the time line and need for the rollout of 5g if things are holding up well but there will be a pinch on people's spending and they may not move the a 5g enabled phone as quickly as before does that give you more time to roll it out or not >> well, it may very well. one of the things that's so great about this combination is that the new t-mobile is finally

able to break down that tradeoff that customers have had to make from the beginning of time, do you want a better value or a better network we're going to be able to deliver customers both a better value is resonating with people. as social distancing starts to come to an end here over the next few months and people get back at it, i think we're going to be facing economic circumstances that cause people to question whether or not they're getting the best value and t-mobile will be there to stand up for them and give them what they're really looking for in the marketplace that gives us a lot of potential strength >> think it's interesting, mike, that you talked about the finding more synergies when it comes to the merger. what about delays? there has to be projects on hold, marketing campaigns, for instance, joining stores together, just a merging of this business and the execution that's going to require as a result of covid-19, isn't there? >> it could go the weier

we see the potential to rationalize our retail fleet a little quicker we've had so many of our stores close down and that's allowed us to address when we reopen, how we reopen in a way that maybe is different than it would have been without the crisis. the network deployment is proceeding apace that hasn't slowed down a bit. the premise of your earlier question, there may be potential there to move faster as we've moved more sprint traffic onto the t-mobile network faster than we were expecting to, and that may allow us to move faster to get this combination done that we were expecting. we're not here to make any predictions, but five weeks in we're seeing a lot of optimism and feel a lot of optimism about the potential to go faster than we were expecting and potentially to go bigger than we were expecting on both growth and synergy attainment >> mike, i wonder how you think about your main competitors, your predecessor used to have a nickname for verizon and at&t, which was dumb and dumber. do you have a nickname for them?

how do you think about them and how they compare to you? >> well, why on earth would we ever give up that nickname by the way, our overall growth this quarter, it's so great again to compare to at&t and verizon. our service revenues of $8.7 billion were up 5.3%, an all-time record high and that 5% growth was more than twice the growth rate of either of those two other guys. so it's no wonder they were fighting so hard over the last two years to try to keep us from merging with sprint so that we could create this spectrum portfolio that now -- and get this, this spectrum portfolio in midband and low band is double, just about double what at&t has and almost triple what verizon has for similar-sized customer bases. so we've got the tools and the raw ingredients to bring a level of competition they've never seen >> two specific questions on that from the analysts that they want to know one, can you close that margin

gap with verizon and two, can you start to -- now with this bigger number three competitor, start to win over bigger corporate accounts? >> yes and yes the long-term aspiration we communicated for this company was in the mid-50s we still see that. we see the potential to move there faster than we were expecting when we first announced this transaction back in 2018. margins in the mid-50s would produce an enormous return for the investors in this company as we grow into it and take share from at&t and verizon. so i see a ton of potential there. >> those guys clearly are your long-standing rivals, mike i wonder whether in a couple years' time, once 5g has been fully rolled out, whether you'll be just as much competing with fixed-line cable providers is that the way you see the industry pivoting? will we only need one subscription if 5g really is as brilliant as some of you guys

suggest? >> well, we see an enormous potential to compete by the way, that is the least competitive market on planet earth. there is so much potential to bring a level of competition to cable and they're not prepared for it at least the wireless guys have faced competition for years. it's a fair fight. but the cable guys don't even know what competition looks like this 5g network will allow us to market in-home broadband through radio waves in 52% of u.s. zip codes in the next few years. we'll move quickly to seize that opportunity and bring lower prices and better connections to millions of customers. >> i think -- are you in don ledger's t-shirt the same t-shirt with the pink lining >> it's a unique mike sievert version, but thanks for noticing our branding we love our brand here at t-mobile >> always in the hot pink. thanks for joining us. mike sievert, fresh off of those earnings >> of course great to be here >> i think the after-hours action liked to hear the view

forward there, the stock moving forward. etsy earnings also out courtney reagan with those numbers. courtney >> hi, sara. a mixed quarter for etsy for its fiscal first quarter they did miss -- you're looking at their profit, so they reported a gap eps of 10 cents the street was looking for 19 cents. revenue stronger than expected at $228 million. the street was looking for $220 million. the company had given us a previous update with some metrics that that gross merchandise sales, all of the sales on the platform, up about 32%. they told us that in early april. active sellers up 26%. active buyers up 16% the company is suspending its share repurchase program, and they had previously pulled their full-year guidance they are, though, giving us a look at the second quarter and the revenue number is interesting. the full number is well above what the street had been looking for for revenue, but they explay

by play that they had a relatively strong april and don't necessarily expect that strength to continue throughout the quarter so kind of a mixed message for that stronger than expected second quarter revenue number etsy shares are higher after the bell but have pulled back at least from the early peak hit in the after-hours session. back to you. >> thanks very much for that one at 1%. square and paypal are out. kate rooney has those for us >> square shares down about 6%, the company seeing the effects of covid, an unexpected loss on eps, two cents analysts were expecting a gain of 13 cents. adjusted ebitda for the quarter down 85% year over year, coming in at $9 million, thanks to increase in reserves for loan losses square pulling q2 guidance they hat pulled the full year earlier in the year. gross payments volume, a big factor for the payments companies, $25.7 billion

that was a miss. they were expecting $27.3 billion on the street. net income was a loss of $106 million. also covid related, they're holding money aside for loan losses and they did see gross profit grow 115% year over year, record new user numbers in march. they did not give an update on total numbers. paypal, shares down as well, the company pulling second quarter and full-year guidance that is new the. the company had not mentioned that before. q1 was a miss on eps we had 66 cents versus 76 cents expected that included a loss of 17 cents for those credit reserves. revenue also a miss. total payments volume came up short as well. guidance was better than expected the company said they are looking for 81 to 85 cents for

next quarter they broke out numbers by month, so it looks like january and february were strong, march did see a slowdown, but in april, they saw record new net active accounts so looks like they are seeing a bit of turnaround and improvement in april square and paypal down after hours. back to you. >> paypal had closed at a record high in today's session. kate rooney, thank you very much still with us, liz young and josh brown josh, you've got a smorgasbord of names there to choose from. what did ryou like and what didn't you like? >> on each, i like what grub is doing. i don't think it's a great business model i wouldn't be an investor, but they're doing the right thing, plowing any profit they might have made plowing back into advertising to save their customers. admirable. peloton. i'm an idiot for not owning the stock. i've known it was a buy since the 20s. i can't believe i don't own it now. i would be a buyer at 40

this is going to make everyone angry that looks at things like valuations, this will be like the new tesla. an $11 billion enterprise value going probably to $20 billion. i would be a buyer and put a stop at 35, take five or six points risk because this name is going way up sounds like revenue is going to double next quarter or more. i think this thing is taking off. the only other one i want to touch on, square and paypal. they report together they're similar. but they're very different businesses when you get down to it square needs people to patronize small businesses in person don't forget they have the swipe terminals. it's a very important part of their business paypal is pretty much all online if you were to buy one on the dip after these reports, for me it's paypal. interestingly enough, 121 was resistance, twice broke above that recently, and look at this poll after hours

right back to that 121 level where the buyers seem to want to support it that's what i'd be keeping my eye on there >> you've been following those two names closely in the last two months, lyft and uber. >> uber reports tomorrow night i own it i'm preclenching i don't expect a great quarter i can't own them both. uber has the diversification of the delivery business, the food, the freight, more forward thinking stuff on autonomous lyft to me is like a limo service that went public during a bull market for limo services. i don't want anything to do with that name. >> lyft is up 17%. liz young, i know you can't talk specific names, but how do you feel about the sort of stay-at-home stocks, the pelotons of the world, that are able to provide some sort of guidance based on the strong business they're doing are these overcrowded and overvalued or is that a place you want to be

>> markets like certainty and visibility if you're a stock that can provide some form of guidance and feel confident about that guidance for the rest of 2020, you have a leg up. we have close to 200 companies in the s&p that pulled guidance and that number continues to rise i'll say the earnings we heard today and earnings season in general, i'm glad to hearing we're getting revenues beats the earnings missing were excited because we didn't miss as bad as expected but this is still the first quarter. we need to make it through the second quarter and that's when the bulk of the pain is going to be felt. i continue to think that the broad market is a little bit priced for perfection here as far as a recovery goes and there's still more bad news that we haven't quite digested yet. this is a little fragile for me. >> liz young and josh brown, thank you both very much wilfred, the only other thing i would say about outlooks from these companies, i thought the t-mobile new ceo was pretty bullish when he was saying this merger is going through, we're going to save more costs in

terms of synergies and roll out the combined stores faster than expected all the analyst notes i read going into today thought this would all be delayed because of the crisis >> absolutely. very interesting clearly bullish on his long-term prospects once 5g is rolled out as well to disrupt the existing cable players as well. shares up for t-mobile, 1.6% after hours. >> still ahead, much more reaction to today's after-hours earnings lyft's conference call set to nus. off in a few mite we'll hear from analysts these days staying connected is more important than ever.

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lyft reporting the managing director and senior analyst at jeffreys. analyst at k&m partners. mike santoli with us as well brent, you have a buy on the stock, $60 price target. there were a lot of questions going in about what active riders would look like, whether cash would be a big issue, the

layoff announcements from uber and lyft certainly a cause for concern. this was a surprise on the upside what did you like? >> 75 million on the upside and 100 million better on the bottom the numbers were better on both sides. clearly the biggest concern going forward for us is the forecast, which they culled, and there are not a lot of rides when you think about what what's happening with the stay at home, it's you a massive head wind for them, but as we come out of this, we think they'll be more elaborate. more to the tail end of the kroefr than the front end. better front-end buys right here, but i think many were short on the stock in the expectations of a much broader miss on the call they had to talk to are that there ways to diversify the business outside u.s. car owners, replacing u.s. car ownership, as well as the cash balance. we think they havetwo to three years of cash available at the

current rate to give them comfort. they will reduce spending by $300 million by the end of the year good cost controls clearly the one stock that is not levered to do current stay-at-home trend we're seeing right now. >> rhohit, what the implications from uber tomorrow for this report and how are the two set up comparably share price-wise as we come into these earnings reports? >> we like uber longer term. this bodes well for uber tomorrow i think people had slashed numbers coming in. this is much better than feared. they lost a few riders, but i think the key thing that i'll be looking for on the call is what do the last five weeks look like are the worst days behind us if they can say anything to give any sort of solace to investors,

this is what we're seeing in some geographies that are probably going to be out of the setting soon, cling on to that uber already did that, so given what uber is doing with the few geographies, probably this will be slightly better for uber. >> mike, even before this crisis broke out, i'm not sure that wall street was ever convinced about the business model for these ride sharing companies since they went public now with the huge drop-off in demand in ride sharing because of the crisis, where does the street stand right now >> i think still, you know, wait and see. there's certainly not i don't think a consensus that the business models is a no-brainer across the board you can have your different estimates of what kind of scale you have to put through these networks to make them work well. the stocks are down a lot and both companies seem to have enough in terms of the cash back stop to make it through the phase.

another question that may be more of the conversation is what does the commuting world look like on the other side obviously once people start going out again and using it for day-to-day other activities in terms of ride sharing but also if people are afraid of public transportation, does it play for or against this category those are things down the word but lyft july of 2019 was a $67 stock, rising to $30 after a good number. that tells you that expectations and the threshold for success has been lower >> brent, the political pressures are elevated at the moment in terms of the style and type of employment they offer? >> i don't think so. our sense is this will continue. but the end of the day, the states that are putting these regulations in have to realize that these services are helping consumers get to places they want people to spend money on.

right now it's a duopoly between the two ride sharers we'll go first to our own car and then public transportation there's regulation over the whole internet group we've said repeatedly it's more of a headline risk than a fundamental risk for most of the names we cover the issue is when does the virus lift and when are we comfortable going back to our normal lives to get people back in cars >> thanks for joining us lyft up 17% after hours. breaking news on google. deirdre bosa has the story hi, d. >> get your tiny violins ready, cnbc.com's jennifer elias got a hold of internal google documents that is telling employees that they cannot expense food or other perks when working from home even if they have money left over from travel or expense budgets guys, certainly this is an elite

silicon valley program, but google has some of the best perks around the valley, used as a recruitment tool they're scaling back on that and marketing and hirings. back to you. >> deirdre, thank you. deirdre bosa costco sales also out. let's get to courtney reagan with more. courtney >> hi, sara. take a look at costco's sales for the four weeks of april ending may 3rd this is so interesting total company costs down 4.7%. e-commerce of that number up almost 86% but when you strip out foreign impacts and gasoline, you actually see the comps are only down 0.5% for the month. when you take out gasoline, fx, travel, the food court, hearing aids, comps are up 8.6%, so the company says social distancing measures, mandatory closures in some cases, people driving less had a major impact and you can

only see it when you break down those categories right now shares of costco are heading lower. this had been a name that many were buying into if you were buying into that idea of the stocking-up trips, which were happening not so long ago. back to you. >> the e-commerce numbers were quite impressive, courtney, that you just laidout >> yep >> how big of a chunk of their business is coming from online if you break down the overall revenues do we know >> off the top of my head, i can't do the calculation quickly, but i know it is lower than a number of other retailers. costco was a little later to the game and optimizing that e-commerce experience, and so the vast majority of those sales are still coming from the stores themselves, which is also partly explanatory of those really big online increase numbers because you're building off a smaller base that being said, 86% is still impressive and i think it goes to show you that's what people are interested in online, not in store right now. look at those numbers.

very interesting >> i think they all -- kroger, costco, amazon -- wish they had gotten into the online grocery game faster and earlier. it's being tested right now and growing like crazy whether they can meet the demand is another question. much more ahead on today's after-hours earnings as we count you down to paypal's conference call and find out which state -- a new cnbc investigation has found -- has become a new switzerland when it metocos tax havens for the wealthy a state in this country. ever since we've gone mobile on the now platform, something's gotten into the office. i hear you. feels like there's no barriers between departments now. servicenow. the smarter way to workflow.

time for a coronavirus news update with frank holland. >> passenger airports need another $10 billion in

government aid to weather the crisis that's what a major airport group told a senate committee today. congress has given airports $10 billion in mrm funds the group says billions more are needed to support smaller airports and aviation facilities governor abbott is calling for the release of a salon owner sentenced to seven days in jail after reopening her business shelly luther reopened early governor abbott who issued the stay-at-home order for texas says jailing her was excessive and allstate is likely to send out rebate checks to customers. allstate says people are driving more than in mid-april but much less than before the outbreak. for more coronavirus coverage, head to cnbc.com fox erns are out julia boorstin has the numbers

>> fox shares moving higher in after-hours trading, up about 3.5% after gaining 3% during the day today on a big beat in earnings per share, the company reporting adjusted earnings per share of 93 cents, a 22-cent beat of analyst expectations revenue coming in slightly stronger than expected the company citing growth in advertising, especially around the super bowl, and saying in a comment they're confident that fox eaks focused collection of assets centered on live and event programming will be more in demand by advertisers and audiences alike, positioning us for the future and enabling us to maximize long-term shareholder value. fox is suffering from the lack of live sports but that doesn't seem to be hurting their results. back to you. still ahead, all your after-hours earnings in our rundown slew of big-name companies reporting just moments ago. we'll break down the bgeigst moves and comments from the paypal ceo after the break

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south dakota has become the new switzerland of tax shelters as the world's wealthy have $900 billion in the state, not only taxes they're avoiding but their ex-spouses robert frank has that story for us >> marie and ed lived big as billionaires they owned their own private island in the bahamas and a 180-foot sailing yacht named after marie with its own grand pia piano. >> it was over the top >> now marie fears going broke ed filed for divorce in 2017 and rather than getting half of a fortune she estimates at over $2 billion, she may wind up with nothing after paying legal bills, all because ed discovered an obscure financial tool that critics say allow the rich to hide their wealth from tax authorities and from spouses like marie

>> what was it like when you realized what was really happening? >> i cried i was in tears i could not believe some of the things, you know, that i found out. >> when they married in 1989, ed had little reported wealth out of their home, they started a financial trading company called quantitylab that has since become a multibillion-dollar business they indulge jed unusual tastes. she collected marilyn monroe's bras and furniture they bought an egyptian mummy for $5 million and the famous piano from the paris opera house. in a lawsuit marx rhee said during their marriage ed secretly put virtually everything they owned into a complicated series of trusts, first in bermuda, then in south dakota south dakota gives trusts sweeping protections and secrecy

allowing ed to transfer their assets into new trusts that shut out marie, all without telling her. >> if he's going to take everything from me and stop my world, that's kind of fraud. i mean, that's kind of -- that's his duty as a husband. >> ed's attorneys decline any comment citing court orders. in filings, they argue there is no marital property in the trust. ed refused to answer questions from cnbc. >> what if it ends badly for you? what do you do >> i don't really know i don't have a plan. >> guys, the divorce was scheduled to go to trial in early april but like many cases it has been put on hold indefinitely because of the coronavirus. wilf >> robert, it's a really sad story. and you feel for that woman. my question is why south dakota?

i mean, it's so random how long have they been doing this and does the federal government have any jurisdiction here >> they don't. south dakota has created the perfect storm for hiding wealth. they've got no income tax, no capital gains tax, no inheritance tax. they have protections where it's almost impossible for creditors or ex-spouses or governments to get at the money if it's in a south dakota trust and the secrecy there is unmatched around the world you can't get any information about money that's in a south dakota trust the attorneys for both of these clients, ed and marie, couldn't even talk about the case because of the gag order from south dakota so very few people know that one of the greatest offshore tax havens is right in the american prairie in south dakota. >> robert, i wonder if some of our wealthiest viewers will be moving their homes and estates to south dakota. >> i would not be surprised. >> but my question for sara, on

the federal side of things, clearly the u.s. taxes people's global assets. so what if the same thing happened but in switzerland? wouldn't the federal government go after that person's assets in terms of almost that being tax x evasion and falsely hiding something offshore why is this different? >> it's a really important point. so when the u.s. and other countries passed all of these anti-money laundering laws and anti-secrecy laws where basically if you were a u.s. citizen living abroad, you had to disclose that account, they exempted the u.s so ironically, all of these anti-corruption and money laundering laws that were passed around the world exempted the u.s. so you have chinese billionaires and russian oligarchs and saudi oil sheikhs were all putting their money here and it was safer creating a tax haven within the u.s., because it wouldn't have been as

disclosed, so it's a strange loophole that you would think the federal government would close, but they haven't yet. >> now well maybe after your investigation, robert. south dakota of all places thank you. >> exactly thank you, guys. >> thank you we're getting some new details here from paypal which just reported earnings. kate rooney speaking to the ceo. kate, what did you learn >> hi, sara. just got off the phone with paypal ceo dan schulman talking about the first quarter they did miss in the top and bottom line and that was mostly thanks to weakness in march. april suggests a rebound he's told me that that month, april was probably the strongest month for paypal since they went public he said the surge in demand is the result of the world moving from physical to digital digital payment trends are accelerating by what he said times three to five years. what would have taken up to five years to happen is now happening within weeks and months because

of covid, that is a tailwind for venmo, for example, and net new customers in april grew, and they had their biggest single day of transactions on may 1st and that was bigger than black friday and cyber monday. a big jump in daily active users. material material again suggesting a rebound and schulman sounding confident that the worst is likely behind them when it comes to that payment slowdown we did see that with total payment volume, but the call coming up at 5:00 p.m. and we will hopefully have more on that for you guys back to you. >> kate, did you get any sort of window into small business they do so much there. i think they announced a program to help a few weeks ago and they announced the tpp, the government program they were a part of that and the second round and we haven't heard anything yet and we're expecting some comments about

ppp, but they have a massive small business lending portfolio. so even if they are included in that we have seen a slowdown and it's called paypal working capital, there really is not a lot of small business lending going on it will be interesting to see what kind of effects they're seeing there and into the upcoming quarters, because outside of that program although they are included you are seeing a slowdown and something to watch for on the call. >> great to get those comments, kate rooney and you can hear more from paypal's ceo tomorrow morning on "squawk box" at 85 :1 a.m. eastern key things every investor needs to be watching right after the break.

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welcome back welcome back there is the close as you can see the dow closing down 218 or 0.9%, right near the session lows and for the s&p down 0.7%. only two sectors positive, tech and consumer discretionary the nasdaq holding on to about a half a percent gain. >> quick rundown here for after-hours earnings movers. lift jumping after revenues came in well ahead of estimates and up 23% from last year. grub hub beating on both the top and bottom lines executives saying the lockdown has driven a significant uptick in new diners and orders from gifting users and etsy beating on revenue giving better than expected guidance for the second quarter and pausing its share buyback program. its stock is down almost 7% after hours. square missing on the bottom line and saying its cash apps

and gross profits were up 115% year after year and peloton higher after beating on the topline revenue jumping 66% in the third quarter and giving a pretty optimistic view peloton shares up 4.5% we didn't even scratch the surface there on all of those name, but sharp move, wilfred, after hours. >> yes tomorrow another busy day, and we'll hear from jetblue among others here on closing bell, we'll hear from dropbox, trip adviser and many more. mike, clearly, a lot of after-hours movers as sara went through, but also the broader markets as we discussed at the top of the hour, and quite a bit slippage into the close and for the week as a whole now the dow, in fact, negative which doesn't feel like that's the case. >> no, it doesn't. it's really all happened since 25 hours ago or something like that that we did start to see those declines

it seems to me the gears are kind of slipping a little bit on the rally. the things that got us there, just this idea that anything better than rock bottom incremental activity towards reopening and the leadership of the huge cap tech stocks hasn't been enough to make further headway. i see it as a little more of a choppy, rangebound rationalization process. can the market stay supported right here when we really don't have a line from now to when we know when business activity will restart again. the top five stocks for them were up today and most of them were up more than 1% while the average stock in the market was down more than 1% today. >> and we've also got besides all those earnings, guy, jobless claims which has become one of the critical indications of how business across this country is doing at a time when it's been at a standstill. the expectation is we'll see another 3 million people file for unemployment benefits over the last week which could be a

sharp decline in terms of the rate from the previous week at 3.8, and that's no consolation and these are historically awful number which is points for the unemployment rate for the month of april i saw estimates for the unemployment rate to climb 15 to 20%. really, an ugly, grim picture of what unemployment looks like in this country and the debate about reopening and how quickly those jobs can come back as we get 26 states reopening by the third week of may, and that will give us a sense of what employment looks like from there. >> i mean, the numbers obliterated anything that looks like a trend it's not a trend it's just this massive shock and you're right, the debate is entirely about how fast those unemployed can kind of be reabsorbed and what does activity look like again, it's pretty much a fog and that's why i think the market is a little bit caught in between right here >> and clearly, we've been with

those fundamental bits of data like jobs will focus what the bond market is doing and the steepening of the yield curve and crossing that handle which we haven't seen for a while and meantime, the dollar is strengthening again that has been up about half a percent we are on "the closing bell," for mike, sara and myself, have a good evening fast money starts right now. i'm melissa lee. tonight, guy adami, tim seymou , a and grasso >> snap getting ghosted and one of the trader says it's a total buy. he will make his case and later if you're craving a little baseball, we've got you covered. tim is taking the mound to pitch his next best idea while he thinks this stock is a total home run, but we begin with the headline that moved the market