[music] especially in times like these, strong public schools make a better california for all of us. good monday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber and jim cramer futures are red to start a week with a packed calendar, whether that's earnings, inflation data, retail sales, nine fed speakers with foul tomorrow we will watch reopenings from automakers and shanghai disney oil is steady as the saudis do voluntarily cut another million barrels a day. so much to sort through in the coming days as the nasdaq is

coming off a five-day win. >> a lot of the stocks in the nasdaq are for companies that do better in covid era. remember, we've got many, many institutions with 80% to 95% of people working home. they require a gigantic change in the supply chain of work. and the supply chain of work is just generated a remarkable new wave of the cloud, of hardware, of software, and the companies that are really rallying for the most part are companies that do fabulously when you have to create new factories the factory is in the home >> there's a look at steve mnuchin. we'll talk to him in a few moments. a lot over the weekend, whether it was mnuchin, kashkari, prepping us for the idea that the worst of the impact is still to come, even after that jobs number on friday which we didn't

have you with us to discuss. >> here we are i wanted one thing to be normal in my life everything else has changed like so many of us. i questioned the notion that this month will be worse we are hearing too many people who are reopening, and unless there's going to be another outbreak, i just think these people are being too negative. i don't want to be in the camp that says happy days are here again, but every single person this morning has talked about a reopening, whether it's mark cuban, jackson from autonation, i don't know how people think it could be worse ppp kicks in maybe there's something we don't know that is going to make it so that we stall out again. but i think maybe they're just underpromising and hopefully overdelivering >> but jim, to the extent that we don't know what things look like a number of months from now, that continues to be certainly a conversation that i know you're having, we're all

having with people in the business world the nature of work your point, so many people working from home. we've seen the big technology companies, facebook for example. any number of other ones who have said to employees don't worry about coming back until next year if you don't feel comfortable. we talked to dave gitland from carrier on friday about the assembly line, and that spacing people that far apart may require robots in between. you have to think about what will life be like when we return to some sort of -- some form of normalcy it's not going to be the same. >> no, it won't be i think that the factories are really struggling. whether it's tyson, where there's just a horrible article about what it was like initially there. initially being not that long ago. whether it be elon musk, his rant this weekend. let us go to work. this is the first time i can say

this, but unfortunately we're not amanufacturing country, bu maybe it's fortunate now because they're the ones that can at least put out product. the product is going to be curtailed. i know that we had no autos to speak of sold last month phil's been talking about the incredible resurgence of the truck. we won't look at these and say they don't count because there's a -- there's a huge -- they make a fantastic deal basically with low interest but it is an issue i know, david, you talk about what happens if hertz goes under, those used cars used cars right now are not much cheaper than the new cars. so the people buying the new cars with the financing plan we could be deluged with those housing held up. housing has held up to a point where we don't talk about it enough as a bright spot. maybe it's because i gardened this weekend, saw my wife, and i have some positive things to say, but i feel this relentless

that we'll have a worse number than the great depression, which is what secretary mnuchin basically implied, i'm not buying it. >> i get that. i get that we talked as well about those who own commercial space, whether it's for retail or office space, back to the idea that what percentage of a work force now at a company will not be required to show up in the office at all? efficiencies that companies have seen out there, they'll seize in the name of, well, keeping people distanced, so forth it is also going to help their bottom line to some extent the question is who is it going to hurt? there's a lot of economic activity that comes from people reporting into work every day. >> right >> and even when we get back to opening, it's still unclear certainly in many major metropolitan areas -- i'm talking across the country, not just in new york >> you're right. >> where, you know, where it's not going to be returning to a normal level of economic activity >> you can use the

salesforce.com numbers, and say we don't need staff. we can have every producer at home we can let everybody go. they don't talk about it that much, but products are so good that you simply do not need anywhere near the number of people who used to be in the office they're discovering that i don't know what happens to those people i don't know what happens to so many people that are just sextr. three months ago everybody was so needed. now we find we have to find n g things for them to do. your point or employment makes sense. senate alliance had a comment out this morning, they say we're talking about reopening all the time through the lens of retail, malls, entertainment, disney you go back to the doctor or get your kids back to the dentist or the orthodontist, you're talking about a v-shape in at least

health care visits teledoc notwithstanding. that's a huge part of gdp. maybe your point on unemployment is in the right direction. >> i'm so glad you brought this up i'm calling this a health care recession. there was a tremendous number of people who were taken out. we have the combination of abbvie today and allergan. botox, the whole idea that dermatologists, who wear masks and have ppe, that they've been sidelined. they're back think about the whole chain of people involved in health care, in doctors, in dentists. you know that was an area that was in depression. i come back to the administration not recognizing the fabric of work in the country and not realizing who is ready to go back looking too much at factories in old america and not looking at new america which is traditionally based on health care, tech the thing i am worried about is

banking. how much forgiveness can you give before the reits just not only give up dividends but give up themselves? >> that's a key question we don't have a full sense yet of may meant rolls, whether it's retail, where in april a lot of them weren't paying. most weren't paying. we don't know yet. then to your point, it works up the chain to the indebtedness that those owners of the real estate have, and their ability to repay the banks, and whether there will be forgiveness there. guys, another story we've been watching closely is the reopening broadly speaking around the world and disney in particular, those theme parks, of course, still closed in the u.s., but open in china at least at shanghai disney let's get to eunice yoon who has that story for us. >> thank you very much, david. there are new rules to be able to get into this theme park. got to wear a mask, get your

temperature checked and keep a safe distance from each other. >> reporter: another sign life is getting back to normal in shanghai, selfies in front of the disneyland castle. after being shut for 15 weeks, shanghai disneyland became the only disney theme park open for business the park is still under post-pandemic restrictions to keep people healthy. the man in charge of doing that here is andrew bolstein. every line has markers instructing people to keep three feet away from the next person at entrances and even while on rides. >> as our guests are loading in, we put an empty seat between each group and an empty row. >> at the park visitors get constant reminders to distance from each other. at the restaurants tables are being blocked off. >> the menus are staying the same, but the service style may

be different we won't do buffets, but we'll serve the food for you >> reporter: hand sanitizers are available and mobile payments are encouraged theaters will stay shut, parades limited, and no fire works to discourage crowds. but you can still see your favorite characters, just don't get that close mickie and the gang are social distancing no hugging that has to wait for safer times. you may have noticed that bolstein and i weren't wearing masks during the interview that reflects the loosening restrictions here in shanghai, but also we taped that interview before the park opened, and we are sure to stay at least three feet away from each other. back to you. >> thank you, eunice eunice yoon in shanghai, who i know earlier pointed out the lines are much shorter so, there is certainly one benefit to having the park far

from full occupancy. >> you know, i -- i'm so split a lot of people in this country are anti-mask. it comes easy to people in asia to wear masks. we are six feet. they are three feet. that's quite a difference when it comes to a restaurant, when it comes to retail i always wondered, where do they come up with their rules who's informing them we obviously are pretty loose on masks. we're very strong on distance. it's quite an anomaly to see what they're doing verses what we're doing. >> really quick, jim, jpmorgan analyst on "squawk" suggested maybe july 1st for orlando and later for disneyland given the disparity between florida and california policies. >> that would be why disney stock is where it is that stock was supposed to get

hammer hammered it's gone straight up since they reported people are getting more optimistic the 25% figure doesn't make sense to me. >> all right we'll talk to disney's bob chapek later this morning on "squawk alley" about the shanghai reopening and more. after the break, the treasury secretary, don't go away across america, business owners are figuring things out. finding new ways to serve customers... connect employees... and work with partners. comcast business is right there with you. with a network that helps give you speed, reliability and security. and enough bandwidth to handle all your connected devices. voice solutions like remote call forwarding and readable voicemail. and safe, convenient installation. when every connection counts, you can count on us. get the connectivity your business needs.

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joining us now is steven mnuchin. mr. secretary, thanks for coming back on "squawk on the street. >> great to be back with you >> okay. >> i want to give you a chance for a do-over. we saw a remarkable weekend. resurgence in shopping, so many places going out can we take off the table that the next number will be worse than this month? maybe leave it open that perhaps we've gotten some improvement? >> i wouldn't say it's a do-over. i said it could be

so, i think the economic models are very difficult to predict in this situation, since this has nothing to do with normal economic factors, this has to do with the closing of the economy and an opening of the economy. to me, first of all, let me say, we're sympathetic to all the workers who this is impacting. if the numbers are worse next month, we understand that. i think the numbers will be getting better as we go into the summer and reopen the economy. that's the important issue here. >> we're discovering phase one, pretty much being completed. we have phase two now, which is another whole level. what can we do -- what can the government do, how much money should the government spend to make it so phase two incorporates all the new rules, the new safety rules which turn out to be quite a burden for most of the businesses >> jim, the really important issue is congress worked very, very quickly with the administration and the president

on an unprecedented $3 trillion package. and we're just getting that money now into the economy we're having the second round of the ppp being dispersed. we have over 140 americans who got direct payments, either direct deposit or checks we have lots of money going into the economy because of the facilities that the fed has announced with the treasury. we've unlocked the bond market, so you have companies like boeing being able to borrow unprecedented amounts of money i think what thepresident has said is let's step back for a few weeks, let's be very considerate in what we do in the next round before we go consider spending another trillion dollars or more of taxpayer money. but the president is determined we'll do whatever we need to do. >> first, ppp has been a phenomenal success there were some people who took

advantage of it. you weeded them out. at the same time, ppp has unveiled some situations that i think the president really would be great to step fwhinto, whichs the disparity of states. you have elon musk trying to open a factory he can't open a factory where hundreds of people would be employed many people in new york are taking what's known as the tennessee pledge because we don't know how to open restaurants. you have to whip out half the chairs, take somebody's temperature when they come in. boy, would it be great if the president gave us directives on what he thinks the white house should be doing. >> we've put out a set of guidelines, we are working with the states most states are cooperating. i agree with elon musk, he's one of the biggest employers and manufacturers in california, and california should prioritize doing whatever they need to do to solve those health issues so

that he can open quickly and safely, or they're going to find he's moving his production to a different state. >> mr. secretary, there's been so much debate around whether or not states that have been poorly run deserve as much aid as those who have not are there parameters that the white house is developing to determine how well a state's been run and whether that is a factor in ongoing aid? >> there's ongoing discussions on this. but, you know, i've heard very clearly from the president and the republicans that we are not bailing out state pensions and other things i have not heard from the democrats that they're willing to do it they want to throw a lot of money at this problem, but i think it's very clear there is not going to be bipartisan support that bails out states from previous problems and one of the things we did last week at the president's direction, i think it was very important, we gave a lot of money to the states. we created more flexibility.

so we said they could use that money for firemen, first responders, policemen, so that in no uncertain terms the states didn't have to lay off those people because they were having budget issues. we're also very quickly opening up the lending facility that the fed has working with the trernrtrer treasury as you know, with interest rates very, very low, states can borrow this money, some of them, it would have to make changes because they do have balanced budgets, because this is a one-time situation that is quite different. we'll be working with congress to discuss these issues and many important issues like the liability issue. we want to make sure it's busine businesses opening up and there's not frivolous lawsuits >> in listening to you answer that question, it sounds like you don't view states fiscal problems as something that needs to be dealt with immediately i mean, they are -- so many

states are facing significant shortfalls as a result of lost sales tax, not just no, but the likes of nevada, florida, louisiana, states that rely a lot on sales tax, they're facing big budget shortfalls that could require them, therefore, to lay off workers. why isn't that something that you would view with the immediacy that needs to be addressed? >> let me be clear the c.a.r.e.s. act gave a lot of money to the states. that money was intended not for lost revenues, it was intended for covid-19 related issues, since that's really what the priority is. having said that, we just gave them a lot more flexibility. so not only can they use it for direct covid related issues, we've given them flexibility for first responders so that in no uncertain terms the men and women out there helping us fight this terrible disease, the policemen, the firemen, the hospital workers,

the first responders, we wand to make sure in no uncertain terms they get laid off. the issue of lost revenues is a complicated issue. these are taxing authorities on their own. different states tax different ways some states have more issues some states have less issues this is something i continue to discuss with the president and we discuss with congress >> there's an opportunity here that you once said you would take on our show, never thought it would happen, you said if we ever got interest rates so low that the short-term and the long-term is the same, you would not hesitate to refinance. what an unbelievable time to do that you could save trillions of dollars without having to raise taxes at all why not take it? you understand the bond market better than anyone who has been in the government for a long time >> we're absolutely doing that one of the things i've said is one of the reasons i do feel comfortable with us spending all this money is because interest

rates are very low we're taking advantage of long-term rates. i know at times we talked about 50 years, 100 years. when we looked at the market, there wasn't as much demand as we thought but right now we've launched the 20-year. between 10 years, 20 years, 30 years, we're borrowing a lot of money long-term so we can lock in this $3 trillion for a very, very long period of time so, we're being careful and balancing. we don't want to disturb the markets too much but we'll take advantage of refinancing all of our debt to make sure that we have very low rates. i think that's something that is a great opportunity for us >> refinancing existing debt, where you would buy back debt capital gain free and use these low rates to do that you would save trillions more. >> i don't think we need to buy back debt because of the amount of debt we have that is short that does roll off and the

amount of debt we're using for these deficits i think we have tremendous opportunities without needing to buy back debt. i assure you, we are very much focused on low rates and taking advantage of locking this in for a long period of time. >> mr. secretary, could you please tell the mortgage companies, look, we think you ought to do mortgage forbearance, lengthen the -- what the mortgages are there's some non-fannie mae paper out there that could lead to evictions lots of retailers and restaurants could be in trouble because they can't afford the rent what a great opportunity to say come on, this is a time for forbearance. this is the time where you must lose some money in order to save our country. >> i completely agree with you during the mortgage crisis, the financial crisis, lenders worked with borrowers i think mark calabri has done a great job working with fannie mae and freddie mac on

forbearance guidance secretary carson has done a great job on ginnie mae and fha. we've encouraged private banks to follow. we won't tell them what to do because these are private contracts, but i think the majority of banks are following these. on a lot of these loans, i think what they're doing is tacking on the payment to the end we understand it will be hard for many borrowers to make up two or three payments, so it will get tacked on to the end. we're monitoring the mortgage markets carefully. i'm pleased with how this is working. >> mr. secretary, jim brought up negative rates the "journal" over the weekend said the fed is likely to use it people predicting that powell's appearance tomorrow will say as much does treasury agree? >> i want to be careful. i'm not going to comment on the fed's action on interest rates that's up to them. that's consistent with my view

we v. plenty of issuance at zer that we will take advantage of from my standpoint being a borrower, we'll take advantage of zero rates. >> speaking of the fed, it's david again, mr. secretary, where are we on the various programs that you were helping to backstop with what was over 450 billion where you would take the first loss some of it was allocated a lot remains unallocated. it's not clear exactly how active the fed has yet been on main street lending or aid to the states that you talked about in the form of credit. give us an update here on what the fed is doing and what your expectations are for those unallocated funds. >> i think the fed and the team at treasury has done an outstanding job working around-the-clock getting these facilities up and running. several of them are up and

running. as you said, there's several more we expect to be up and running over the next couple of weeks. we have literally daily calls with the fed on the working teams working through this and as you pointed out, i allocated half the funds, i kept half the funds in reserve, since i don't know which one of these markets is going to need more money. as opposed to allocating it out all in advance, i thought the strategic and important thing was allocate a lot of money and we'll see where we need money. if we need to put more money in main street, we have the ability to do that as i said, on the corporate facility, we wanted to provide a lot of money there my expectation is in how the markets have opened up, we're going to need to spend a lot less money there i can tell you i'm authorizing a wire this morning going into the secondary corporate facility it's on its way out.

we expect these facilities all to be up and running very quickly. i just want to commend the amazing team of professionals at the fed and at the treasury who have been working around-the-clock to create these and market stability >> mr. secretary -- >> is there one secretary or one program that you think already that the fed has been most active in, you know, to your point they have not had to intervene in the corporate bond market much because it opened up on the prospect of them actually being involved >> let me be clear, these facilities were supposed to be backstops. so this is -- this was intended to be backstopped. you saw the initial facilities around commercial paper and money markets took in some volume once we did that, it's quieted down it created stability in those markets. the corporate bond markets, when we announced these, the corporate bond markets were completely stuck they became unlocked you look at the ppp facility,

that's up and running. so small lenders are able to access the fed facility. the main street facility, the muni facility we expect to be up and running soon in a perfect world, we don't need to use these, but they will be ready and will serve as backstocks so we're sure that american business and workers have access to liquidity >> i keep hearing one word, it's a word people tell me you will not use, it has to do with ppp 75% goes to workers, but people want flexibility they want to give it to the workers, but kind of -- you go from law firm to law firm to law firm, business person to business person, they don't know what to do they need guidance they all want the program to succeed, but they don't know how to execute on it >> i disagree with you completely they know how to execute on it it's working great

99% of the loans were 2 million and less to very small businesses as you know, there's a small number of loepans around public companies, but this program is working great. it's getting money to the workers. on the 75%, let me just comment, the way congress designed this, eight weeks of payroll, plus 25% of overhead. if congress wants to change that rule, i'm happy to work with congress if there's bipartisan support to do that the 75% test was just a clarity on a test that was clear in the way that congress designed this program. again, like anything else f we need to make technical fixes as we see different issues, i think one of the things we're particularly sympathetic to are the restaurants. >> yes >> many restaurants are just beginning to open up and have said that they would like to hold the money they can't do that, that's not something we can do. we'll look at a technical fix. so, we're working very clearly

but this program, this will help about 60 million americans get back to work >> mr. secretary, i could not agree with you more. i think it's an unbelievable program. certain industries are more difficult. if they give us flexibility from congress, it will really be a home run secretary mnuchin, thanks for joining us >> thanks, jim >> great to talk to you. >> jim, thanks for bringing that to us. the opening bell this morning. great discussion, jim, with the secretary, especially as it relates to corporate debt. you saw the ual issue over the weekend didn't happen. reportedly because of concerns over collateral. then carnival gets upgraded this morning because they think nobody wants their collateral, as a result they'll get a lot of waivers on covenant. >> they say they have enough money. when you look at the timeline

here, the key moment is when boeing did not need a bailout. boeing raised the money. i think that was the fed doing a great job. secretary mnuchin was involved that would have been the real disaster that's the best industry we have some of these less essential industries like cruise ships, it's amazing they get the money. i had norwegian on friday. they have almost no covid, everything is fine you'll love this -- david in particular because i know you're a bigcruise fan -- bookings ar ahead of last year david, you and i, come on, with the wives? what do you say? >> yeah, okay. i'll see you yeah, no i don't think so maybe one of the really small boats, like the one that would just be us and the crew? that one >> we're not talking uss minnow. >> i was thinking maybe more geffen's boat. does he lend that out at all

>> it was great to see the y upgrade, because when you look at what's going on with the stock market, there is hope springing eternal that is springing. i was trying to find out how do you have your treasury secretary say a number that will be worse than the great depression. i think that's where you want to hold the line. that's the braveheart moment you don't want to go worse than the great depression it's vital that we don't psychologically i think it's very hard to come back >> yeah. tutor jones on squawk did say that in terms of new york city, if we're looking at lockdowns like we had a year from now, he said in that case you would be talking about something resembling a depression. there is the heat map. so many individual issues to get to intel is leading the dow, i guess on these reports about the government holding talks with them and taiwan semi trying to repatriate production.

>> what matters to me is that we have lam research, when you go into these plants, that's what you see. i try to provoke becky into provoking navarro about the idea of trying to make it so taiwan is protected more. that's where most of the stuff is from. i think it's crazy that intel is a leader on this it's not necessarily good for intel. unless there's a sovereign wealth fund, intel is once again not a leader, it's a laggard let's not forget that. other companies have passed them other companies like nvidia and amg, which ha amd, which have been able to make smaller footprint chips i don't know i don't want to buy the stocks on that.

that paul tutor jones interview was incredible there really is restaurants where nobody can do it you have to take out too many tables no table bigger than six no bar to start? you have to ask people, have you been in touch with covid then you have to take their temperature. i mean, by the time you do that, give me grubhub. >> i know. his remarks were powerful. they did seem to reflect, i think, obviously as a life-long new yorker myself, the problems that new york conceivably will face that we talk about in terms of what a return to normalcy will look like before there's a vaccine when you think about places that have large cultural institutions that rely on museums, on people going to the theater, on people going to lincoln center, so many other things not to mention just aggregate -- bringing people together it's hard to imagine the city

returning to any sense of normal until, as you said so many times, there is a vaccine. we're a city based on crowds we're pro crowd. we want a crowd in the theater we want a crowd when we go to the museum when we go out to dinner and i don't know what's going to happen, but paul tudor jones talking about a million jobs t could be two million jobs. what can open in this environment? everything is small. but the crowds are large what do we do? every other row at the theater what play can survive with every other row? they need to pack them in to have a successful play it is a netflix/grubhub economy in new york. it's a shame i don't know any other way around it. >> yeah. >> on that point, david, regarding movie theaters, i don't know, are we putting any

faith in this daily mail headline about amazon being interested in amc, which is up 45% right now? >> i don't know, carl. i would point out daily mail, be very careful not quite sure what the benefit to amazon would be i almost could see them buying amc networks before i see them buying amc the movie theater chain. i will reserve judgment on that story. they have got some issues, we know that. given their indebtedness that's a key point of everything going on now, if you come into this crisis with a lot of leverage on your balance sheet, you really need to figure out what to do about it, which gets me to one of the larger deals that we've seen in some time,

certainly in private equity. it brings together two of these trends a levered company and private equity looking for an opportunity. talking about cody, the beauty company, which reached an important deal with kkr. kkr will buy 775 million of a convertible with a 9% coupon right away to help them. but then also entering into an agreement, memorandum of understanding right now, but i'm told they will get to a definitive agreement shortly to sell 60% of their professional beauty and retail hair businesses, that includes wella, clairol, opi salons being closed, that business is suffering. kkr is going to basically put in another 250 million to the convertible preferred at the

same rate when they close that deal and then buy 60% of a 4.3 billion of an enterprise value business they're valuing it 12 times this year's ebita they will own 60% of it. get two board seats. so the check from kkr is approaching $3 billion 60% of a 4$4.3 billion enterpris value, that includes debt. another billion for the convertible preferred. that's a big number coming from two main funds at kkr. >> i was shocked these have been football products, the wella products you go to amazon, you are not going to get price for these things there isn't really necessarily anything that is proprietary i don't know what kkr is thinking they're smart people i hate to sell anything that goes into a walgreens or that can be sold on amazon, unless it's clorox.

>> these are the professional businesses they bought a lot of these from p&g about four, five years ago they added a lot of debt they are controlled by j.a.b stock is up 8% getting closer to the conversion price. it was about a 20% conversion premium, $6.24 for kkr's convert, the stock is now 5.61 these are the kinds of deals you are seeing private equity step into coty already had issues with its balance sheet. it was looking to sell the entire professional beauty line prior to covid hitting the process was ongoing. it obviously changed here towards the end as they moved quickly to secure financing. >> it's amazing to see any deals at all i was cheered by that. it says people think there's certain stocks that have gone

down so much they want to take advantage. i don't know whether adam aaron wants to sell amc, but wow, wella? just one of those things that is five feet in the drugstore nobody is really going tothe drugstore. if that's a deal, we have some other deals that will be working. you may have a busy summer after all. >> could be. i'm starting to sense a pulse in m&a, slight, just very slight, but something is there >> we have a lot of tests, abbott has a new test. >> yeah. new tests out of abbott. emergency use authorization from the fda, that's a 15 -- the 15-minute result thing, gottlieb had some kind words for that diagnostics and therapeutics, we will not take our eye off of that ball. >> that's how you open america you open america by knowing that you're feeling -- you are as good as you feel

obviously this disease is so insidious that it has these days where you're good, you're the super spreader, then we have these days when your oxygen falls apart and you're dead. anything that tells you that this could be happening is self-quarantine, we get things open i don't know if we give badges to people who have gone through it or tested i read these things and i think there is progress. who knows who is working on what i have bristol-myers tonight i want to ask them, do you have a secret project going on? everybody seems to have something secret going on. it's great >> we're off the shallows. dow is down 180. let's check in with bob pisani good morning >> good morning. happy monday, everybody. bit of a defensive tone to the market today pfizer, united health, johnson & johnson all up in the dow.

cyclical stocks like boeing, jpmorgan, a bit on the downside. the focus is still on the recovery rather than on the losses we've had the market is still acting glass half full. so you see today banks a little bit weaker, materials, industrials, they are weaker health care and consumer staples, there's your defensive group a little bit stronger. you get this push and pull, this is a typical pattern generally markets have been glass half full rather than glass half empty we like to remind everybody how difficult it is to figure out the right levels for stocks. so many companies are pulling guidance smaller groups because earnings season is passing, but chesapeake, roku didn't give guidance continental resources. blue rock. some reits haven't we're nearing 40% of the s&p 500 that has declined to provide full-year guidance nearly 40% that's unprecedented

still the focus remains on the recovery rather than the losses. still glass half full. if you look at the market internals, the s&p 500 has regained 60% of the losses from the february 19th high that's amazing rally here. the breadth has been expanding more advancing stocks than declining stocks on a daily/weekly basis the volatility, the vix closed at 28 on friday. the lowest level since february 26th we were over 80 in that week of march 23rd still everybody keeps insisting we need to be cautious the internals of what we're seeing here would recommend that other than no guidance from the s&p. the dividend cuts, suspensions, we've seen far fewer buybacks. a notable expansion in the s&p, we don't know what that means, but depending on what quarter you're using, we're trading 20, 23 times forward earnings. that's a high number given the caution out there.

people keep saying why is the market up with such horrible numbers? look at the sectors. the sectors are telling you it's not so clear the cyclical names the anks the energies, the industrials, the reits, they're still getting clobbered. banks are still 34% below the old highs. that's hardly a recovery yes, we've seen some sector out-performers most of them tend to be in the defensive groups for example, consumer staples. health care. health care is 5% off of its highs. and, yes, this communication service has done well. that's because alphabet and facebook and netflix and maybe verizon have done well a small handful of stocks. it's the tech group that's done really well if you look at all of those names and see what they've been doing let me show you the five biggest names are from their 52-week highs. microsoft is almost at a new high 3% amazon off 3% the new highs.

facebook and apple are only 5% off their new highs. alphabet is 9%, but remember the s&p 500 is only 9% off of its highs. so, those mega cap stocks have been moving. those are in technology and communication services the rest of the market is still struggling so let's make sure, david, that there is a bifurcation in the market people have not lost their minds. there's rationality in the way stocks are being priced. back to you. >> all right bob, thank you bob pisani, who is down in pennsylvania right now but is somebody who i rely on to a certain extent to help navigate new york's amazing restaurants. we were talking earlier about the idea of new york, when it will get back to business. and on "squawk box" this morning, paul tudor jones, the man who founded the robinhood organization, which has been so vital in terms of helping underprivileged new yorkers for decades now spoke powerfully about his hopes for being able

to aid all those people through the years in various jobs in new york who helped him. >> i'm thinking, okay, this is my chance to serve them. this is my chance to be of service to them. i've tried to equalize the ledger and i want to be able to say in 20 years to my grandchildren that when they ask me what did i do in the second depression, i will look them in the eye and i want to tell them i did more than i ever thought i could do i think that's it. >> i think sometimes there's a desire in certain parts to vilify some of our business leaders. mr. tudor jones has been so instrumental in helping the lives of so many new yorkers for

so long. you guys have been supporters of robinhood as have i for so many years. tonight we'll air what would typically be their annual gala, usually takes place at the javits center. he is the guy who has always been on the front lines in triitr trying to make the world a better place >> he's an angel i remember he came up to me and my wife and he said the greatest blah, blah, blah my wife said who is that i said that's an angel he makes everybody feel terrific i wants everybody to help. i don't know i remember when he had a big hit in the market, and so many others did there's some great people out there. he is the most self-effacing terrific guy when you meet him in person you might think what does he do? seems like a good guy. the only word i can come up for him is angel >> the numbers he's put together

over the years, astounding we're rooting for them to do just as well tonight as it airs on cnbc and all kinds of other networks interesting, too, his discussion about the united states and socially how we may differ from other economies that have tried to tackle this problem differently. of course his comments on bitcoin, which we had seen headlines about last week, but which he called more a great speculation than anything else with 1%, 2%. >> yeah. he has seen it all people want to go for it he is so nonjudgmental he is. what a lesson in life to listen to him he does not have -- he doesn't have a firm line if you like to do something and it doesn't hurt him or hurt the country, game on so many people are judgmental when they come on tv and it's a shame. this guy is a peacemaker i never knew whether he was republican or democrat, hardline

or softline. hard money, soft money he's health, wisdom for society. maybe that's how we have to be i always feel great when he's on sensational. >> yeah. guys, 2912 on the s&p. let's check in with rick sab telly on this monday >> good morning, carl. when i look at fixed income markets it's hard not to think of a, big supply coming today. 96 billion in threes, tens and 30s. this package is at record funding size today 42 billion in three-year notes at 1:00 eastern. i'm covering this option many will be scrutinizing to see how supply moves through the system we all know you nigunited airli pulled a junk deal friday. it seemed to be more of an issue about collateral airplanes and the can be and the

amount of them that would secure this loan at least in the eyes of the investors we'll watch and see. if you look at one week of twos, down to ten basis points of intraday it's never been at that level. it settled at 14 that's where it's hovering right now for the most part. if you look at a one week of tens down the curve, we've come off the worst levels but the worst levels at 60 basis points is above 54 all-time forever low yield closed a low of 36 to 52. steepening is good getting close to negative interest rates on the short end is not good. we certainly look to see if any fed speak will address this crazy insane condition that is infected and affected europe and japan and finally, let's look at what's going on with regard to the other part of the most important aspect of this, and this is what's going on with

regard to the midpoints of tens minus twos and not only that, but some of the other yield curve trades if with leook at the bund, it's right in the middle of the range as many are holding and idling to see how the greatest economy maybe delivering some of the fed programs like the junk bond market this week carl, jim, david, back to you. >> lots coming our way in the next few sessions, rick. thanks, rick santelli. a quick break as the dow is coming off the first weekly gain in three led my intel

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retail at the center of the market weakness this morning under armor down 10% as sales sell 23. pvh and others the nasdaq is struggling to go green. we're back in just a moment.

let's get to jim and stop trading. >> some companies should move

forward. mar yacht, reports the quarter and arnie chooses words that he doesn't mince. he says a lot of stuff is plain bad. greater china is stabilizing but at a level that is low and lodging demand and most the rest of the world has stabilized as low levels. the stock is getting hit i have faith, but this is one that is still a very troubled area, hotels >> occupancy stabilizing in the low 20s. one thing we didn't get too much on was auto nation, tesla, toyota with numbers about production rates as they start to reopen. actually, a lot of manufacturers are going to be reopening in the coming days. >> jackson, good numbers tesla, i like the idea that musk says they have to work it out but he's arguing for i think a

reasonable stand we saw that number, toyota in checking in phil's excellent tweet column what would happen if musk moved to mexico? what a fire storm that would be. huh? >> yeah. china model on day three is down 64 in april is coming from the china passenger car association. we'll watch that >> that's who's stopping us. you know i think a lot of people feel t out ofcontrol out there. >> yeah. >> bristol-myers tonight >> it's part of my health care initiative we do here. i have to tell you that he's doing incredibly well now that the deal with cellgene closed. a live person no longer -- in everybody uses it, it's by mortgage so you don't get on hold for hours

that's what everybody is finding. people working at home, and yeah, and then horrible numbers in industrial. industrial declines is amazing the stock got hit. usually don't ever expect utility to get hit, but this is a -- those are depression numbers that he reported >> yeah. hopefully on the upswing great to have you back we missed you friday >> that's all right. you guys have to take some time off too. it's a burnout time. this thing weighs on you every minute >> yeah. definitely a test of endurance we'll see you at can have on mad money with jim cramer. good monday morning. welcome to "squawk on the street." i'm carl quintanilla with sara eisen and david faber. dow is down 230 as retail really takes some of the wind out of the sails after under armour's results. i thought about you this morning. two of the companies you cover under armour with weak sales

down 23. at the same time general foods raising their organic guide to 2 to 4 from prior 1 to 2 >> if you're in the cereal business, you can raise your guidance all the packaged food companies are doing better, because the initial pantry loading that some analysts were worried would decline after that initial burst that we saw at the beginning of the crisis has led to increased sales steadily we continue to hear from the ceos, so much so that now the companies are able to revise their guidance for this quarter and often case raise it as we're seeing with general mills today. consumer staples different than consumer discretionaries i spoke to the ceo of under armour it's going to be a slow reopening of retail. in the meantime, most of the

stores are closed. under armour doesn't have a ton of international exposure and not as much e-commerce exposure. as far as the overall markets, david, not surprising, perhaps, to see the markets start lower this morning after some of the news flow from the weekend i was following the clusters that are breaking out in south korea. they're small right now. we're all on guard and tense about this idea of a second wave as we look forward to reopening in this country. clusters in south korea, clusters in china. these are countries that are contact tracing and testing, and they're able to pinpoint it. and we just hope we can get to a place like that in the u.s. where we can limit any potential second waves there's also these reports watching the briefings in new york, our mayor and governor talking about new symptoms in children and the three children that have died in a potentially linked covid-19. the headlines were unnerving

this weekend the market tended to follow the health headlines a lot more sometimes than the economics and earnings headlines which have been worse which is why everybody is talking about the discorrecnnect. >> yeah. the continued disconnect down 9.8% for the year versus an economy which -- well, we saw the jobs numbers from friday the question is whether the next number is going to be even worse. we did speak to secretary mnuchin this morning of course, as you might imagine, he's more positive in terms of the coming turn in the economy and we did hear from him as well on his view of jobs and the jobs report take a listen. >> the economic models are very difficult to predict this situation since this has nothing to do with normal economic factors. this has to do with a closing and opening of the economy

so, to me, it's -- first, let me say we're sympathetic to all the workers who this is impacting. and if the numbers are worse next month, we understand that but i think the numbers are going to be getting better as we go into the summer and we reopen the economy. that's the important issue here. >> sara, we also spoke to him about the various programs that the fed has undertaken and the unallocated money that koim kaim from treasury that's yet put toward particular programs they're just getting started he talked about not needing as much on the corporate bond front, but other areas perhaps needing more, sara, but it was interesting to get a take from him on the programs that we talked about but that haven't really or -- are just getting started really now >> it's amazing how much of a signaling effect the federal reserve can have just saying -- just saying that it's going to come in and buy corporate bonds, just clearing up the market and

helping even the junkiest of junk bonds get attention and that was the purpose of the federal reserve saying they're going to step into this market without having to actually go in and buy it now, jay powell, the chairman has said multiple times since then, they intend to follow through. they can't let the markets think they're just signaling and they're not going to go through with it. we are expecting that to happen, the mainstream lending facility which hasn't gotten started yet has taken a lot of comments at the federal reserve on how to administer that. the fed is going in a place it's never been before. it doesn't want to end in a place where they're accused of helping out wall street and not helping main street and giving all these free loans with no strings attached i think they're being thoughtful jay powell is speaking at an event on wednesday that's a lot of focus for the market as well so far the fed as helped a lot of the market activity in action way beyond what we're seeing in stocks so far.

>> yeah. on a week where we're going to get at least nine fed speakers as you say powell, later in the week 96 billion of treasuries to price. in the meantime, let's bring in a columnist for the new york times, jim stewart to talk more about the economy and the markets. >> you're seeing me remotely what you're not seeing is i had all my haircut off anyway, good morning >> jim, it's good to talk to you. we've been having the discussion about the degree to which reopening happens. it sounds like you're expecting it to be more encouraging. >> we can't ignore the fact the market has gone up significantly from the lows. it's hit my sort of rebalancing target of about 25%. i think it's a great time to look at your portfolio and if you're not on your target, this is not a bad time to sell a little bit to take advantage of the

hospit optimism and rebalance i'm not saying it's going down, but that's a proven thing to do. in terms of the reopening, i agree with sara. people are not looking at the immediate data coming in they're trying to look ahead, they're looking at how the virus is behaving. what we may see in the u.s. is there are large chunks of this country where the impact has been relatively modest and they may be able to reopen considerably without big investments, but there are other areas starting in new york city that are much more seriously hit countries. and i think cuomo has been prudent in setting forth pretty strict guidelines about when to reopen, clearly. we're going to have an experiment going on over the next few weeks where we're seeing the range we're seeing everything from the sweden approach to something

closer to the chinese approach and we're going to get data from that which i think will help to clarify the picture. >> jim, in a world where we look at agate nationwide employment, how valuable is that, and can we take comfort in parts of the countries where the job losses are truly temporary? >> yeah. well, i think that's one of the big questions is the unemployment data doesn't tell us exactly how many people were furloughed as to posed to being laid off the furloughing idea meaning they're going to get a job again as soon as the conditions warrant that and i think the hope is that a high percentage of the furloughed people will get hired. i think that's why these unemployment numbers are different than anything we've had in history before. i can't recall a time when such a high percentage would have been characterized as furloughs,

and it will be interesting to see regionally and some of the states opening, how this bounces back this will give us a clue more broadly. how much of the job losses and how many are longer term or temporary. i don't buy it's going to come back immediately in this extreme v-shape. i think there will be some kind of a v, but the top of the v is going to take a while to get back to. >> yjim, it's hard for anyone to know what the reopening is going to look like we're in the new york area t felt this crisis so differently than so many other parts of the country i'm wondering what kind of data you're looking at and what kind of pieces you're reading to see how the rest of the country is handling that with more than 20 states already reopening in some fashion as we try to see whether the jobs come back and the activity restarts and consumers

spend again. >> well, first, as an investor, i don't think any of us should be guessing. at least, i talk to a lot of people who are just clutching at something they heard somewhere and they're making guesses about what the future holds. i think we have to recognize that even a lot of experienced investors are not doctors or epidemiologists. we just don't know so i think you're right. you've got to look at the data and i hope we're going to start to see more focussed data from the places like dgeorgia. what are the numbers showing? we ought to be able to learn something about that even the data is, i find, is very baffling. one of the big mysteries to me is cuomo came out i guess last week and said i looked at everybody admitted to hospitals recently, and they were people who had stayed at home they had been following the

rules, most of them. it begs the question, well, then how did they get the virus i hope they continue to do more work on that i was troubled by that disclosure, but it makes me think this thing is way more infectious than we realize, but, again, i think you do have to look at it geographically. montana is the polar opposite of new york in terms of the infections but we're going to have laboratories now, interesting things are happening in california, texas. there are so many different varieties that we ought to be able to learn quite a bit from the data in the next few weeks and months and that aside, we have to keep an eye on the medical advances i mean, is there a cure or treatment? is there going to be a vaccine there's a lot happening on that front. the average person can't follow it all doesn't have access to the data, but i think we have to be alert

to that, and i think there could be some good news coming out of those medical efforts. >> yeah. >> i saw poll numbers about the percentage of americans overwhelmed with covid-19 news there's too much to process on a daily basis. thanks for coming on >> nice to chat with you bye. >> coming up in the next hour, shanghai disneyland reopening today. we will talk with disney's ceo about the company's path forward. we'll be right back on "squawk on the street. currently health care is the only financial that's positive financials the hardest hit

race for cures for covid-19 continues at a startlingly fast pace let's bring in the former ceo of a pharmaceutical company fred, you can forgive people for being confused, where are you focussed in terms of what you see as the most effective treatment right now that has a chance of getting to market fairly soon?

not hearing fred yeah all right. we'll -- we'll try and take a break and see if we can reestablish full audio contact with fred. stay with us ♪

♪ ♪

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welcome back we're going to try again with fred hassan, fred, my question was given your experience as having run a major pharmaceutical company, where are you focussed in terms of the various efforts underway right now whether it's anti-virals or vaccines as having theby chance of getting to market quickly >> thank you very much it's really an unprecedented effort it's a war and there are so many companies around the world working hard at it t lots of -- over 100 projects are are really country projects. where i see it happening, i think we're going to break records with vaccines. vaccines take 5 to 20 years to show up. i think we're going to get a

vaccine between 12 and 18 months we're trying different ways to get there. we're seeing acceleration of acceleration of innovation just drawing new approaches. the vaccines are going to come next year, but in the meantime, i think we're going to do fine with a fast cycle response to this situation so we've gone through a painful national lockdown. we're now opening up the country. and as we go forward without a vaccine, there are going to be outbreaks, local packets of outbreak, but we'll see a public that's alert and fast response very good rapid accurate diagnostics, and then fortunately, we're going to have some fast-acting therapeutics that's going to bring this under control. already remdesivir, a product i talked about on the second of march has been approved by the fda for covid-19

the one that i'm most excited about is the antibody cocktail which regeneron is working on. it stops the virus from attaching to the cell. it intercepts the virus before it gets to the cell, and remdesivir slows down the viral replication. we have two separate lines of defense, and i'm optimistic that we will be able to make this a manageable situation just like hiv became a manageable situation with drugs and drug cocktails. i think we'll see the same here, and hopefully continue to take care of this >> as we manage toward a vaccine as soon as 12 to 18 months but testing is an important part of that are we where we need to be in terms of quickly determining whether somebody has the virus or the antibodies for the virus? >> i think we're making great

progress this morning we heard about this test which doctors can administer in their own clinics. the doctors can learn about this in five minutes. there's also the rapid test where you can get the results in five minutes to 15 minutes if you really want 100% accuracy, you can get the pcr test in many ways, if you have a test, and there's an 85% chance it's accurate, you can start feeling better in the meantime you can take some drugs until you get the 100% assurance, which might be a day or two or three later which is a pcr gold standard, but we are really seeing massive innovation in diagnostic testing just like we're seeing in drugs and in vaccines. it's the three corners of the triangle we're working hard on

>> fred, i wonder, when you talk about some of the commentary we're getting from the big pharma on therapeutics or vaccines, are you surprised the language hasn't been more neutral or more circumspect, more over promise, underdeliver or do you believe the progress is ahead of the kind of rhetoric we're hearing? >> i think that the progress is enormous it really -- the bubbling science, the amount of stuff that's shown up in knowledge in the last five years is enormous. and the number of cools that are at play is enormous, and we're now working with an interconnected world so when they found out about this virus in late december last year, the g gnome was more known

to labs by february. that's how fast information is traveling. so with this acceleration of acceleration, i really believe that we have very powerful tools to contain this. hiv took about ten years to get contained. now i think we're going to see this one get contained very quickly with all the modern tools we have, and we got educated with the problems we saw with sars in '03 and mers in '09. we learned a lot about these kinds of viruses and i think we had a running start. this is a bad one. it's very contagious, but it's really part of the same family in many ways >> fred, i wonder how we're going to look back at this period in terms of health care and unintended consequences. children not getting vaccines, people not going in to get diagnosed or treated for life threatening conditions often cases.

cancers, heart attacks, strokes just because covid-19 has completely taken over. how are you thinking about the longer term impact >> well, the longer-term impact in my opinion, is very clear this is the century of bio science. this is when a lot of innovation occurs going forward last century it was the century of physics a lot of good things happening last century it's really a pity that only 50% of the populous gets the flu vaccine, but that's partly because many feel that if they do get the flu, they'll be able to deal with it. but we really hope as we go forward into a an era where people get vaccinated in larger numbers than in the past, and i think in some ways this is a wakeup call. take care of your health in life, health is precious. protect it with the best

practices and the best medicines you can find it is the most valuable thing you're going to have in your journey in life. i think that's a basic philosophy that's going to be drilled into us as a result of this horrible thing that's happened to mankind in the last few months >> fred, thank you for joining us this morning. appreciate it. fred hassan. >> my pleasure elon musk escalating his fight with california threatening to move tesla's head quarters out of the state over pandemic restrictions. phil joins us. never a dull moment. >> no. on saturday musk went to twitter saying this is ridiculous, not allowing tesla to reopen its plant in fremont, california they've gone to federal court. they want them to say they have the safety protocols in place, they should be able to resume production

alameda county says it's working with tesla nonetheless, when you reason or read elon musk's tweets on saturday, it's clear how upset he is about all of this. he writes frankly, this is the final straw. tesla will now move the hq and future programs to texas/nevada immediately. if we even retain this manufacturing at all, it will depending on how tesla is treated in the future. tesla is the last car maker left in california. take a look at the annual deliveries and we're pointing this out because a lot of people said are they sticking with their guidance of delivering at least 500,000. they haven't changed it yet officially when you look at the april 3rd model deliveries in china, down 63%. production has been stopped since march 26th it's going to be tough to keep that guidance much longer. look at shares of tesla year to date analysts saying watch the cash

burn in q2 because of the limited production it could be 2 billion to $4 billion. we'll see if we hear anything in terms of the court fight today and with the alameda county health department. >> all right phil, huge story we'll talk to you in a bit later on this morning, shanghai disney reopening, of course, with some precautions. we'll talk to bob chapek at 11:00 a.m. eastern time about the path forward for shanghai and potentially we'll see, ckn montd ahm. ba ia me it started with a few smaller bills. fifty dollars here. eighty dollars. a hundred dollars. i had good health insurance. why isn't this covered? well, then they started getting bigger. eight-hundred dollars. eighteen hundred dollars. i saved for this.

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good morning welcome back i'm sue herera new cases and deaths in the u.s. fell to their lowest levels since late march on sunday this as a number of states begin easing the virus restrictions. nonetheless, more than 21,000 new cases were confirmed and about 8 00 deaths reported in france commuters are filling roads and train stations

as a number of lockdown measures are lifted masks are still required on public transport people no longer need to fill out permission slips before leaving their homes. traffic is up in london. many confused brits head back to work boris johnson says the lockdown isn't ending yet, but he is encouraging some people to return to work the leaders of scotland, wales and northern ireland are sticking with existing stay at home measures. another update in an hour for more coronavirus, head to cnbc.com carl, back to you. >> sue, thank you. we want to talk a lot about disney's reopening strategy in shanghai as disney shanghai opens over the weekend bill cohen joins us this morning. now the president and ceo at i-tech entertain a theme park consulting service. thank you for helping us understand what we're seeing this morning >> pleasure. nice to speak with you

>> what's your take on how they've done shanghai and to what degree can we extrapolate potential openings in around >> in orlando we're happy to see them open in shanghai. it gives us hope that the rest of the system will soon come online we're watching carefully to see how they do in shanghai, and we're hopeful. we're also confident they likely have their act together. they should be doing fine and maybe some of the lessons learned will kind of progress through the rest of the system over time as they let them open up in the united states. >> what's been your impression so far of what you can see in shanghai >> well, so far, we don't know a lot about it i was on the phone last night with some people in china just to kind of gauge where they thought it was going to be in the form of attendance so again, we're hopeful it looks like the chinese are going to go to the park. it's a more managed process

there than maybe we will be here, but in the end, i think the newness of that attraction, it's only a couple years old, is going to play in their favor because the demand for those people to get into that park is going to be high initially >> what about the cultural difference can we have that here in this country where disney lapd and disney world reopen without parades, without fireworks, with extreme social distancing, with temperature checks can you envision that in this country working? >> well, i could envision it, sara, but it's going to be a challenge and new. and i think the people that are the disney fans for the last several generations that are going to be disappointed initially, but i also think disney is smart guys they're entertainment people at their heart. they've going to come up with solutions to maybe enhance the guest experience over time so the guest will see some changes and some new shows, but i think

disney, again, they will attack it aggressively, and experience won't be lost for long >> i wonder how much some of these businesses actually have to turn into sort of police at their own theme parks or retailers? it's one thing for them to put in place the procedures but what if people don't follow them? what if people get too close or aren't following the safety precautions that make it safe to reopen a place like disney world in the era of coronavirus? what do they do? >> that's a good question. i think that's going to be the -- until they operate, until they get up and running, they're going to have to work around this and learn each day. i suspect as you said earlier, the cultural differences between property and china were tokyo, japan, orlando, california will be noticeable. because the people just use the parks differently depending on where they are so the actual let's say

management, the operational management will be at a different levels and different parks. that can be that way in a place like walt disney world where each park, there's several parks there, each park almost has a slightly different guest profile and a different operation method so to your point, the big players, the disney universal studio guys are good at their operations protocol. it won't be quite as visible as you might think it would be. so the way they set the park up, the way they operate the park, the way they capacity manage the park will be the way they're going to kind of accommodate the groups and the crowds and the social distancing that you'r concerned about. >> david faber last week on the earnings call, the company's ceo talked about beginning in the u.s. with 20, 30% sort of of capacity and working up from there.

what's your sense based on what we've seen in shanghai and what you know and what you're seeing out there now, in terms of what they could operate at safely until such time as everybody feels safe to fully go back? >> that's the difficult question i think the answer to that is going to be operating over time. but we have to remember sometimes these projects are not theme park stand alone theme parks alone. they're business model includes a detailed and orchestrated destination resort visit while the theme park admissions is important, firms of people are going into the park is important, they're also building the guest experience around hospitality and retail and other commercial experiences it's a very articulated orchestrated visit so it doesn't just solve the problem to have people come and come into the parks. they would also want to find

ways to increase their length of stay over time more days so they can sell hotel room and sell more food and retail these are not just singular admissions only strategies they're very complicated and sensitive strategies they're going to have to work on >> to that point, bill, i wonder, what do you think the biggest challenge is is it cleanliness on the ride itself is it the hotel? is it moving people around, transportation logistics is it about the preserving the disney experience? what do you think is challenge number one >> oh yes, yes, and yes. let's say a disney model, these guys are not just in the entertainment business you have to remember that they are also in the transportation business they have a variety of mobility options from buses to trains, monorails, water craft and they have people in hotel rooms, people in stores.

so if you think of a disney attraction, the idea that it's at one part food facility entertainment, retail, it's all the challenges you would have in the rest of the world, that they have to manage in one place. so the cleanliness, let's say the health safety issues, they're addressing in the retail stores like a good retailer would do they're addressing it in food facilities like a strong restaurant would manage it and then, of course, on their entertainment pieces, rides and shows, cleanliness at least the perception of cleanliness is critical to them, because their reputation preseeds them every guest anticipates a high level of safety already. so they're going to add to it in the sense of the self-staafety issue. >> we have to run, but we had an analyst this morning who suggested orlando opens

july 1st would you take the over or under on that? >> i would like the over on that, and the reason i say that, and you know this already. disney doesn't control itself. they kind of wait on the authorities and the government and the governor here to make those decisions but once they allow that to happen, disney will be in business very quickly. >> bill, hope to have you back as we move closer to that date, whenever it is thm thank you very much. coming up in the next hour, don't miss an exclusive interview with disney's ceo, bob chapek disney shares are lower. we'll be right back. every financial plan needs a cfp® professional --

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one thing separates this recession from a depression says a top economist. find out more on tradingnation.cnbc.com 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. shares of under armour getting crushed today after reporting weak first quarter results. including overall sales falling about 23% amid virus-related store closures the largest business in north america. internationally sales dropped 12 %. apparel down more than 20% footwear down almost 30% these are ugly, ugly sales numbers including the wholesale as well. in china and south korea, all of

their stores have reopened traffic in those locations have picked up, though, the company did say they continue to see o progress coming in recent weeks. the ceo stressed the e-commerce business has been on fire which is helping them. the problem is they don't break down how much business is coming from online, but last they said it was low double digits in terms of percentage. not where it needs to be to offset stores. they've already been in cost cutting mode they're going through restructuring as part of a transformation and a turn around so that's already hitting marketing budgets and jobs and capital expenditures they were already in that zone have had to pick that up as a result of this crisis. liquidity is not a concern they tapped their credit facility and have a billion in cash so calming some of the nerves on that but clearly, this is a company

that was struggling to turn around going into the crisis, and now with most of its stores closed across europe and in the united states, their most important market, this is going to be a long, difficult turn around if the new ceo can do this this is a stock that's down 60% over the last 12 months. just to give you comparison, the big rival nike is up 7% in that period we'll talk to the ceo exclusively patrick frisk tomorrow morning after he spends the day, no doubt, carl, talking to investors today about these results and how they're thinking about the second half which they're giving no guidance on. >> yeah. it's amazing guys, it's almost a test now from companies starbucks another good example where you have the announcement of a lot of locations in china being open and yet, traffic not returning to levels. that's going to be the test from now on not about whether you're open. it's about whether or not people are coming to your reopening

>> yeah. that is going to be the key here as we reopen the economy nationwide are people going to feel comfortable in terms of venturing out again in the same fashion they did previously? it was a starbucks open at the end of my block in new york city yesterday, i noticed back to ua for a minute. they like a number of companies, it's not as though they weren't having troubles before co-vid. they were. they were trying to deal with a lot of things you've reported on for quite some time. it's only added to their considerable problems coming in. >> and what's added also to their problems is under armour made the bet it was going to be the sportswear company it was going to outfit the athlete. not that nike and adidas don't, but they've gone more on the fashion route in the last few years. guess what, there's no sports right now. that's not happening they've had to deal with a lot of promotions. they've discounteda lot.

they're trying to get rid of that the ceo today told me he's selling at higher prices right now than this time last year, but they were trying to turn it around it's why frisk is there as ceo and not coo. they made the transmission wo because under armour has been under tremendous pressure. >> yes and the market is down let's call it half a percent, the s&p. nasdaq fairing well. the likes of apple, facebook, alphabet and amazon not to mention microsoft all up on the session. we have a lot more "squawk on the street" for you. - [narrator] at southern new hampshire university,

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welcome back to "squawk on the street." stocks generally lower today amid reopening jitters almost every sector is down. financials near the bottom that sector dragged lower by weakness specifically across the regional banks the kre regional etf is down nearly 5%. it's now down 40% this year. it's still up 24% since the march lows back to carl. all right. erik, thank you very much. interesting discussion going on this morning about the degree to which reopening and closures have a balance in terms of hospitalizations, we continue to watch international markets where south korea and china seeing spikes in new cases. when we come back, bob chapek of disney on the opening of

shanghai disney in a moment.

across cnbc, we have been taking a closer look at how states are fairing when they lift the coronavirus restrictions the data are very new, but we've already seen in emerging trends as government officials try to rebalance the health of state economies and americans. since partially loosening restrictions one week ago, florida has seen only a 13% increase in cases, average of 644 new cases per day.

these numbers exclude large counties like miami dade and broward and palm beach which remain closed. testing has increased only 26% and 8% of total tests are coming back positive. meanwhile, south carolina, which has now been open for three weeks, has seen a 75% increase in cases, an average of 156 cases per day. testing has increased 109% with 9% now of total tests coming back positive. david, i guess we need to wait to see whether we get hospitalization numbers because that really was part of the point in locking down these economies, to try to not overwhelm the health care system and not have as many people getting critically and seriously ill and potentially dying. we'll await those numbers. it's still early >> yeah. this has been the balance, of course, that has been ongoing since we initially did not respond to appropriately to the virus coming to these shores, sara, in the weeks and months

that we had a real chance to prepare perhaps in a better fashion, and now the question is the damage, of course, from a closed economy on so many peoples' lives and the mounting pressure to open and open as quickly as possible given that pressure and figuring out a way to test and contact trace and make sure that we can keep the virus tamped down while we reopen. >> and there's no real template. people are looking to china, but, you know, wondering if we can trust the data coming out of china and how different culturally and everything else is going on there. we want to continue the reopening question speaking of south carolina the state moving to phase two reopening today and that means resuming indoor dining but with some restrictions. joining us is sam, ceo of charleston hospitality group he manages over half a dozen restaurants in downtown charleston welcome. thank you for joining us sam, what does today look like for you? >> glad to be here

today -- well last week they had the 20% outdoor seating is and we definitely were very optimistic about the outcome and friday they announced about 50% of the indoor seating with some restrictions and same thing, we're very optimistic. you know, the challenges are bigger than just how much seating you're allowed to open the challenge is more about how -- we have staff to actually, you know, be able to work or is there any traffic that comes into the city, especially like charleston, you know, that lives on tourists, the hotels are empty, most of them are closed, the airlines are not flying in, so we have a big wither issue than just, you know, what's allowed to open and how much to open >> so are you actually opening the restaurants for indoor seating today? if so, how much capacity and can you really space that out? >> this last week gave us a way

of how to look at things and how we're going to be able to stay in the guidelines with the social distancing, six to eight feet per table, so luckily we had a great mother's day, it was very inspiring, and made sure to stop by the stores and see the people the locals are coming out. in the downtown charleston market when there's no traffic, no tourists, it definitely did not have that experience that we had in the suburb restaurants. now for today and tomorrow, of course, we're contacting more employees to come on board the challenge remains, you know, why would they come back on board if they could make more not working than if they are working. to answer your question, we're optimistic about the fact that we are open. >> sam, when you think about day part, i'm thinking about dinner

time where really the variable you want to leverage is time spent at the table you want the party to hang out, get a cocktail before dinner, get that extra bottle of wine after dinner how much of dinner is a challenge versus say breakfast or lunch >> luckily it's been -- i'm speaking because the majority of our breakfast, lunch and dinner, we've seen definitely more of a breakfast than actually dinner outing it seems like our dinner service was still sending more to goes than an indoor dining. >> sam, i can only imagine how difficult it might be to figure out what your sales and profits conceivably will be in the coming months? what's the number in terms of occupancy you need to be able to actually be profitable >>.

>> well you go from 100% occupancy to 20% to 50%, in this industry of restaurants, hose pa tallties or hotels you cannot survive. we're doing our best to make sure that our guests are safe, our employees are safe i don't foresee profitability right now. we're really looking forward to bring all the staff back, you know, into the restaurants yet, this is a bigger challenge than actually, you know, the occupancy. the challenge we have is like, will the employee come back to work why would they come back to work if they can make more out of work yet, as far as the business, we did really good yesterday. i was really surprised to see we did have a lot of wait in some of the restaurants with a very minimal staff. maybe after this week we'll be able to tell exactly what's the

long-term effect of this epidemic and how are we going to proceed forward with it. >> do you think, sam, south carolina is prepared are they issuing enough testing? do people feel safe and want to come back out and eat at restaurants? >> i don't think they're really prepared i know they have opened some sites. luckily i can speak on behalf of our staff and company, no one has been affected by the virus, so no one i know from other restaurant companies were affected as well i'm hoping that, you know, with the time going, be able to maybe, you know, people will examine down here and just hopefully be able to get back to normal. >> sam, we wish you the best >> appreciate it, sara >> keep us posted on the progress opening in charlton. >> thank you. >> sara, we'll see you this afternoon on "closing bell."

david, we'll see you later as well everybody, good monday morning. welcome to "squawk alley." i'm carl quintanilla with jon fortt and morgan brennan coming to you live from various locations. very busy hour head on this monday including an entire with bob chapek as shanghai disney opens overnight. lot of pictures and discussion of how disney will manage to a safer operating environment for theme parks that has big implications for this country as we view disney as the proxy for how you can do this at scale. >> yeah. carl, i'm watching disney this morning, it is down. watching the stock action, also down pinterest, yelp, lyft and uber and those would be stocks that would benefit from things being safe to open up sooner maybe this morning's trade thus far has been on the idea that maybe things won't go as smoothly as we were hoping at the end of last year and following that idea,