head fake or here to stay. rebound of more than 200-point loss investors turning back to the jobs market. the white house 180, administration backtracking on plans to wind down the coronavirus task force one carrier caught charging passengers to keep the middle seat empty call this the ultimate stay-at-home stock shares of this power house are surging. no free lunch as one giant is rolling back

more work from home. it is thursday, may 7. you are watching "worldwide exchange" here on cnbc good morning, good afternoon, good evening. welcome. i'm brian sullivan thank you for joining us on this 75th anniversary of ve day 1945, world war ii and europe ended. looking at the market and your money. setting up their thursday morning. we are seeing futures with potentially a rebound in gain. getting to more on that in one second this would also regain like we said what we lost yesterday. up nearly 3% this week alone weekly jobless claims are out.

they are expected to show another $3 million americans have filed for unemployment. we are nearing 30 million people out of work. markets won't move on that it is widely expected. obviously a difficult number to hear we have breaking news on united health the health insurancer announcing it will provide $1.5 billion premium rebates. joining many auto insurance companies offering rebounds as people are simply not consuming their products right now we'll get to more of that story right now. all of asia is back to work and business there was a pretty big surprise in some chinese export

a big surprise there we'll go to matt taylor in singapore. >> most of asia back singapore and malaysia for another public holiday we did see japan come back that market the only one moving higher up by about .3%. despite the fact when we did have the surprise of the chinese export and trade chinese composite ending slightly weaker on the day we saw that rise more than 3.5% against expectations of the decline of 15.7% imports down 14.2% for 11.2% decline. the trade balance coming in stronger we did get weak services pmi coming in at 44.4.

that was better than the march number new export numbers falling sharply. that doesn't bode well for exporters. we are watching major news there. that market ending weaker on the day as well. hong kong clearing on the hkex in the city operator and on investment losses. it did see an increase on daily turn over. the long-serving ceo has been at the helm about 10 years announcing he will be standing down when his contract expires next year. brian, back to you >> thank you let's get back home and another strategic shift from the white house over the coronavirus response rahel solomon has more on that >> good morning. after seeing a wave of backlash, president trump announces the

coronavirus task force will remain in place and have a new focus on reopening the economy and finding a vaccine as republicans look to pump the brakes on aid spending that puts them at odds for the push for tax cuts and stimulus spending package doctors calling out the fed for uneven and opaque method of distributing the drug remdesivir several hospitals have been chosen to receive the doses. it is unclear why some were cleared to receive these doses and who is making the decision in the first place costco sales fall for the first time as stay-at-home orders took a toll on the company.

excludeing gasoline, comp sales fell including gas, they were down 4.7% brian, back to you >> rahel, thank you so much. we have a little good news to wake you up here futures are indicated up if we keep that strength at the open, regaining the losses made. has the market remained as strongly as it seems chief strategist good morning i say that because you look at the nasdaq you say the market holding us up appears only a small group yet again leading the markets. how do you lead the overall market right now >> definitely continues to be a

narrow market. we did see a reprieve there when the russell 2000 and tried to play catch up a little bit they rolled back and are underperforming again. some of these names like netflix, microsoft, amazon, they should be doing better but that can only last for so long when the rest of the economy is faltering. when the rest of the country is bounced back, it will not be near 2018, 2019 with unemployment level in the high single digits. i think it will be tough for the stock market to rally further. narrow markets are usually followed by further decline, i'm afraid >> what is powering the stock market right now unlikely to move the markets everybody knows the numbers will be terrible.

$3 million, $3.5 million these are americans losing their job. >> it is funny, the employment numbers will be important over time right now, what is driving the market is the federal reserve. not just the money they are putting in the market, the faith they are putting into the reserve. it is funny what they can do with a correction and a slow down and what happens in a bare market and recession there is usually a second wave because the economy doesn't bounce back as quickly as people thought. especially now where we have leveraged investors hurt badly in march leveraged companies will continue to be hurt over time because the economy is not going to bounce back the way it had been that's going to cause another wave in selling.

that will grow in the bounce back >> what we are seeing in a little strength is a textbook retracement. we saw it in the internet bust and final crisis in 2008 the path of least resistance is slightly lower >> i do feel that way. follow the smart money, as they say. add to the list of half a dozen or more billionaire investors saying they are not buying right now. looking to those to maybe undercut them. >> always appreciate your views, thank you for joining us here. see you soon we have a lot more to do on this thursday morning. when we come back, your next guest taking a hard look at the retail landscape

what companies will go away and what companies will actually thrive in the new normal your stay-at-home stock of the day surging as sales boom. we'll unveil that mystery chart coming up. if you thought things could not get any weirder now, we are always here to surprise you. the united states treasury secretary is now in a twitter spat with roa ck star. welcome to the jungle. we are back after this i love these fries. you know, the chef here trained in france. mmm, it shows! so good. oh hey, did you say you needed help with investing? because i know someone who's really great. and you trust him? totally. yeah. we went to school together. i'll check him out on investor.gov.

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welcome back the question every business and share holder has right now a store, restaurant, retail chain opens back up, will customers come we have some answers some polling finds more than half of us are comfortable going to a grocery store we need to go there. that survey also finds two-thirds of americans would be uncomfortable shopping for clothes and 78% of us would not feel good about eating at a dine-in restaurant states lockdown measures are being eased. particularly retailers about how they will adapt and try to survive. our guest is a retail analyst.

jane, good morning i guess the old adage, never waste a good crisis normally reserved to politics but let's focus on retail. i would imagine, how difficult things are, there are companies that will learn to adapt and make hard decisions. in your mind, who is making the right hard choices right now and who will survive >> i think target has made some very good choices with curb side pickup i think the lululemons of the world who are connecting with the customers on their website as well as their app giving them exercises. same with nike connecting ongoing with their customers. these companies will survive and we do have some that will go away it is accelerating the whole retail landscape >> who is likely to go away?

>> i think you will not see francescas anymore j. jill, tailored brands these were all the weaker retailers. ethan allen, look at wayfair's figure there has been a reset to the consume and industry the consumer is going to continue buying on line and continue the trends of do it yourself home depot, lowes they are doing a fabulous business. those are the ones that are very strong >> what about a macy's, jane, market cap less than $1.5 billion do they make it out of this? >> this is a very difficult

situation. they weren't surviving really before this pandemic i'm not so sure customers are going to feel very comfortable going into these very large stores with all these customers unless they make some changes. i'm concerned about the off-price retailers also where they've always done well after the recession last time, they hit it out of the park. however, when you shop in those stores, it is very close they are going to have to change to have social distancing. they've been out of business the whole month of april because they don't have ecomm. >> is it possible they will go away >> no. they will not. they just have to make some changes. the consumer has decided how they want to shop. they want contactless shopping they don't want to have -- to be

very close to other customers. they want to pay by credit card. they want the merchandize brought out to them outside. no, our price will not go away, they have to make some major changes. >> let's talk about the brands talk about amazon, target doing it right we have to remember when we use target, we are probably buying somebody else's products just using target as a vehicle. i'm thinking north face, tommy hilfiger what brands and companies are getting bought now >> the tommy hilfiger, you'll find mostly at macy's. i'm more concerned about the manufacturers than a lot of the retailers. they are dependent on the

department stores, third party stores to sell their products. it is better to be a retailer than a manufacturer in today's world. >> jane, we appreciate you joining us here nice and early thank you. have a great day talk to you soon >> thank you still on deck, the airline stock right now down another 11%. it could fall to single digits who it is and what's going on. more outrage over the small business relief program. showing how some banks are apparently unevenly distributing the money. more when we are back after this >> announcer: today's big number 39%. that's the projected decline in second quarter earnings for the

s&p 500 this year. at that rate, q2 will be the esdr in earnings since the financial crisis

welcome back it is another difficult day for spirit airlines. shares are down 11% after it

posted a big first-quarter loss. it will sell more stock to raise cash it has entered the payroll support program and if shares continue to fall, it is possible spirit airlines could end up in the single digits. today, that stock down 80% this year perhaps all the money we are not spending flying, we are spending on line. p paypal offering solid guidance it posted the highest single day transaction volume ever. shares up 25% this year. paypal ceo will join squawk and the gang later today some of that spending is on high-end exercise bikes. peloton sales surged 66% sales are so good, it is struggling to fill orders and

expects to have to pause temporarily sales of its treadmill product because everyone is stuck at home and working out. peloton could be the big winner in today's market. here is perhaps the best news we could hear any day the average number of new cases in new york continues to decline. a new report that sheds light on who is getting sick as the lockdown begins its eighth week with frances rivera. >> a surprising shift at the epicenter of the american outbreak a shocking two-thirds of the patients became infected despite staying home the new york mayor is warning essential city employees could face furlough. the cuts could include first

responders, teachers and health care workers a new study shows that small business loans may not be going to the hardest hit spots the mergely loans largely went to borrowers with previously existing banking relationships the rollout has faced criticism for not getting to areas that need it the most back to you. >> francis, thank you very much. straight ahead here on "worldwide exchange," hunting for bargains, we have two money managers who will join us with names on their radars and what you need to avoid and real world advise two democratic senators are calling for an investigation into carnival cruise lines over the company's response to the pandemic including some recent reports that shows that carnival apparently continued to let

passengers cruise even as it new the virus was spreading on ships. shares are down at 75% this year cnbc is back after this. take allegra-d... a non-drowsy antihistamine plus a powerful decongestant. so you can always say "yes" to putting your true colors on display. say "yes" to allegra-d.

good news out of china help power our stocks a bigsurprise could mean good things for the american economy. stock futures are higher by 240 points call the cops on the cares act

what it is taking to prevent fraud in the largest stimulus package in american history. and knock, knock, knocking on treasury's door. the twitter spat that can only exist in the year 2020 you've got to hear it to believe it you are watching "worldwide exchange" here on cnbc welcome back and good thursday morning it is may 7. we are slowly creeping toward the weekend. don't worry, we will get there we have a little good news dow futures are up 240 points no we have positive data on chinese exports. exports rising when a decline was expected a small glimmer of hope that economies are reflecting a slow reopening. we are also getting a report

that u.s. and china trade reps are set to speak by phone as early as next week that is relevant because that is the first time they will have officially have spoken since the trade deal was signed back in january and amid rising tensions with the pandemic. if we do stay up 240 points, that will regain all lost and a little more in the dow don't focus on the dow, focus on the nasdaq and big technology. as it had been doing before the pandemic continues to outperform it is up 3%. weekly jobless numbers are out this morning t it is tough to hear. they are expecting another 3 million american citizens have filed for unemployment if that's the case, we would be nearing 30 million people without a job in the united

states within a matter of two different months that is a top number expected by the markets. that number out at 8:30 a.m. eastern time let's get to those numbers joining us now from london european markets reopening we are sure to keep you up to date now the bank of england in focus. the bank voted to keep rates steady at an all-time low and held off injecting more stimulus to the economy for the time being. in line of what they were expecting. expecting a 14% drop this year and predicts a 15% rebound in 2021 it stressed such a scenario that

would provide on the back of that spiking up towards 124 but has come back down single stocks in focus i want to highlight for you in the telco space. bt has extended the dividend as the company looks to shore up cash reserves during the coronavirus outbreak the biggest telecom group withdrew guidance adding that impact will only become clear over the next 12 months. we had news from liberty global over the last 24 hours we have agreed to a deal another stock to highlight, ab inbev warns after profits fell 14%. total volumes fell more than 9%

due to the lockdown as it withdrew guidance. a steady recovery in china throughout march confirming all breweries in the country have reopened >> amazing that all the stocking up people did around the world not enough to compensate for the lost volumes at bars out there. i'm sure when it is all over, we'll be ready to get a drink. >> absolutely. >> more than you know. futures look like we could gain back more than we lost to stay in the green, we have to get past difficult data. jobless claims are out at 8:30 a.m. eastern they are expected to show another 3 million americans filed for unemployment over the past week if that happens, we could have

30 million people unemployed in the united states. the job is to look forward, not backwards. perhaps we have better times ahead. let's get to real world and practical answers. getting to our guest recognized by forbes as a best in state for providing advice in texas. there will be a pp, post pandemic world, how will investment change. >> i think we are looking at this as a pre-corona and after corona we look at areas that will shift and not come back. we'll look at a drag of numbers going forward. you have 4 million people over the age of 65. that's about 15% if they change their behavior,

plus any at rick and people that are nervous, you could really see a drop in growth we do expect to move forward it is like we are moving forward with an anchor or broken leg it is going to be slower or tougher as behaviors change, we really see it as a full-time shift. work from home will put pressure on the market. it is different. not necessarily the end of the world, just different. >> maybe fewer companies that benefit. who are those companies victoria, where are the best opportunities you and your team see right now? >> right, right. we are all about usa like warren buffett bet on the usa. big growth we are looking at companies with good cash flow and dividends one company we really like is ibm. one of the reasons, they've got that new ceo he's a shift and came from the

cloud's high believes in the red hat acquisition and will push them more towards the hybrid cloud, ai and watson that connects well to the health database and infrastructure and they are going to pay you 5.3% dividend that's great i know ibm has to catch up a little and get rid of some legacy business. we like where they are going and don't discount the catalyst of the new ceo. another one is amazon. they had a bit of earnings miss. i love the way bezos came out with his earnings. you might want to take a seat. we have to invest a little bit they might steel more grocery than people realize and may pick up more retail as brick and mortar suffer as some of the other retail start to pull back. our winner in the clubhouse of

the pandemic sweep takes per se is tele-doc. telemed was a growth market anyway they have great partners with in touch, united, cvs health. they are going to continue to grow we see telehealth as a part of the market already growing and the pandemic just accelerated it >> i'm clearly not worried about the stock price rising there when we look at the landscape and doing an analysis talking to ce o's, it seems like a tough road for companies particularly based in the northeast people may not return to work this year. are there rates to be avoided at all costs? >> there are a few, like a technical. mall based and real estate heavy in the northeast

we saw jpmorgan saying work from home may be something they are adopting energies are tough and financials and what might happen with defaults. rates are picky. you tend to bottom feed. the effects on real estate and student housing. >> got to imagine, a lot of long-term leases are being renegotiated as many of us will work from home for months or longer enjoy your day there in texas. airline outrage. one carrier caught charging passengers to keep the middle seat empty, in these times >> no free lunch rolling back one popular perk. why not? more employees are working from

home uber cutting 3,700 jobs. roughly 14% of the corporate workforce. nobody is going anywhere much less sharing rides dow futures gaining strength up 263. we are back after this it's a challenging market.

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

high protein. low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. and try pure protein shakes, with 24 vitamins and minerals. a big guest coming up at 8:30 a.m former ceo of goldman sachs,

lloyd blankfein. you know he's got a wicked sense of humor and a sense of what is going on right now what are his views on the fed and market lloyd coming up at 8:30 a.m. eastern time first, a check on the news today. a little good news before that uber report. lyft reporting better than expected revenue and more importantly because we are always looking for those green chutes lyft says ridership has risen a bit in april shares of lyft getting a list. they are up 13% pre-market grubhub going the other way.

last month, they said while business is improving, sales suffered because corporate sales were hurt. order trends have picked up. markets less affected by the outbreak american consumers continue to brace for a meat shortage. one company said it is restarting production. let's get that story >> smith field food will restart its pork plant today after going three weeks being closed part of the hong kong group says it is taking up in phases and should be at full capacity by the end of the month >> front year reverses policy that had them pay extra to keep the middle seat empty.

this came after push back calling that a policy that capitalizes on fear. >> google telling employees they will not be able to expense food or gym costs while working from home even if they have extra money from unused or event travel budget. employees have not been allowed to expense meals or snacks with so many people losing their jobs, i don't know how much sympathy there is for google workers no longer getting free food it is a big issue. >> the answer is not a lot i think google will be just fine thank you, see you soon. the last month and a half, congress has authorized programs to disperse more than $7 trillion to american businesses and families in need sadly, the justice department has already begun filing fraud

charges making surethe money i ending up in the right hands what penalty is there for the misuse of these funds. we have the investigation. the most expensive piece of legislation in american history. $2.2 trillion spending package that let's the federal reserve lend $5 trillion more. with all commerce halted, lawmakers loosened rules to get the money fast >> the more requirements we came up with, the harder it would be to get the money out the door. >> even if 1% is misused that's $70 billion who is policing all this money the law let's congress appoint five members to oversee the loans. with no meetings yet a goal of the well being >> we want to ask the treasury

and the fed, what is your strategy and how do you design this and how do we do it in a manner where the benefits exceed the cost in this type of intervention >> an advisor to senator warren says he wants to make sure companies who get this money are keeping people employed? >> what are we getting for the $500 billion we gave through this program are the benefits flowing through to working people or shunted off to executives and share holders? >> that's one group studying part of the bill a new house committee studying the white house's medical response and oversight teams at each agency issuing flash reports on airline and small business relief. two inspectors general in particular for one, president trump tapped white house attorney brian miller to oversee treasury payouts. >> i'll follow the facts

wherever they lead >> the second is chosen by industry watch dog president trump removed their first choice, glenn fine and replaced another member of the committee. acting ig for health and human services last month said they were short on medical supplies. president trump said that report was biased >> a report says lawmakers should better protect them in the future >> certainly, they are always under threat of being fired as glenn fine was by the president. i think people are paying attention to this now. >> by the end of this week, we are expecting the first findings from some of these to be reported the commission is one but before a chair is named, that person is still being vetted, i'm told the small business

administration is another. expected to release a quick study on the $600 billion in small business loans it gave out. the department of justice has already filed fraud charges against three men many rhode island that said they applied for half a million in loan for businesses at the beginning of march that didn't exist. brian. >> it is truly sad to think so many businesses and real businesses that there are those willing to scam taxpayers. this is just the tip of the investigation iceberg. >> it is of course, any intelligence anyone has on any misuse or fraud going on we have been hearing from small business owners, one we talked to said when he applied, the application was stalled. he was told the application

wasn't being processed because there was a duplicate cat and fraudulent application on file we are hearing many of these lawmakers are trying to get this money into people's hands. they are relaxing restrictions to do so we found in a poll of battleground states, there is bipartisan support for making those rules stricter to make sure the right businesses are getting this money >> if kayla is on the case, i would not want to be on the other side of that an important story, kayla. thank you for bringing it to us. >> on deck, welcome to the bungle you will never guess who the treasury secretary is in a spat with >> why the stock market is not telling the right story of the american economy right now

can you always catch us live or on the go with the cnbc app. dow futures are up 280 we are back after this 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 as part of your retirement plan. this can help you cover your essential monthly expenses. learn more at protectedincome.org . yeah, everything is runningis 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.

apparently what we've got here is failure to communicate treasury secretary challenging guns and roses singer axl rose on twitter after rose called mnuchin an skpla tiff. to that, mnuchin responded, what have you done for the country lately some men, i guess, you just can't reach. >> the stock market up 280 there is as many have pointed

out, a big disconnect between equity markets and the real world job market let's bring in the ceo of asset management always great to have you on cnbc it is the question everybody is asking why the heck is the stock market holding un i know it is down year to date when we'll have 30 million people still unemployed? >> right this is something i've seen clients struggle with. we know it is bad out there. i'm in connecticut and as i look up main street, everything is closed if everything is closed and business struggling, why is the s&p only down 11 or 12%? i think the s&p as we've relied on is not reflecting u.s. business right now we need to remember that the s&p

has four companies microsoft, amazon and apple that make up that business. i'm looking at the russell 2000 that is down 24% more reflective of what is happening out there if you are thinking, i'm scared, i don't want to invest in the market, it is rallied. >> you can buy other individual companies and their indices. there is still a lot to do. >> yes russell 2000 is more to kill a mockingbird on main street than s&p 500. >> wow. >> you got the reference there >> i love it >> where are the opportunities you are supposed to buy low and when others are fearful. it is hard and other people are out of work. these are times when guys have made their fortune

>> i tell what you i added to. i added to two companies both smaller cap, under the radar, have had terrific numbers. compass diversified trust and herculese technology they have tremendous cash flow they are just fine and under the radar. also because they are in a small cap index, they've been really depressed in terms of share price. can you buy things like that last night, centurylink reported they have about 10% dividend yield. quite strong revenues. you can buy companies like these. you can buy larger company, abv who makes humira it is a smaller cap with nearly

6% dividend yield. there is stuff to do it is not just oh, the market ran away oh, the market is a poor reflection >> with all due respect to the numbers and headlines, sometimes, the markets didn't rise, to your point, the huge donkeys pull the the cart, the faang stocks pulled ahead with everyone else left behind. like warren buffett has said, you want to bet long-term america. is it time to leave behind those big leaders and find opportunities? should we be sellers as well >> i don't know. it depends what the weight is. let's say amazon is 10 or 20%, you should be trimming that. 3%, maybe you hold it. i see a portfolio come in and they have these legacy positions. you can hold them.

they also don't need to go up 100% from here to have a nice overall return i like what your earlier guest said too about ibm that's a great play. a big company transforming again, there are things to do. there are investable areas of the market >> what is amazing, we rarely talk both sides of the balance sheet. sales are up, we forget about the liabilities. costs are going to come down work from home everybody is talking about it. jp morgan, they may work from home the rest of the year. jpl may work from home long term companies will save a lot of money in these times as well >> right, not the mention the fact of gasoline prices. one of the companies i own is b and g foods.

the price of oil coming down is a big deal it costs them less to drive their trucks even the tires on trucks cost less all of their costs come down that's true for us as people too. our costs are coming down. >> yes they certainly are we are going to at ttequilla mockinirgbd soon >> perfect >> big line of guests coming up. we'll see you tomorrow ty. so. let's talk. edward jones. it's time for investing to feel individual.

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good morning futures pointing to a higher open following yesterday's wall street sell off giving back those 200 points and a little

more after all said and done, we'd be up about 100 for the week, which is something today's big test, weekly jobless claims another jump in filings. a twitter fight you have to see to believe why treasury second mnuchin and axl rose are estranged this morning. don't cry. "squawk box" begins right now. good morning, everybody. welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. things are in the green this morning after the markets closed down the first time in three days we have seen a down number. we got the adp numbers that showed a grim look for the