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, well,

what's up, zoom is up, amd, shopfy, nvidia, stocks that would be categorized as stay-at-home stocks, companies that benefit from people using their computers, using broadband and video conferencing, something like that. maybe that's what's driving the trade for the morning thus far we'll see where it goes from here, morguen. >> that's exactly why the nasdaq is positive, albeit just above the flat line as the quote/unquote stay-at-home stocks, and worth noting that the small caps, the russell 2,000 is underperforming down 1.5% where the nasdaq has sort of become the stay-at-home stock shut-in index, if you will, because of all of those tech names that are levered to the dynamics we've seen playing out in society in the last couple months, the small caps aremuch more geared towards the reopening and the prospects of

reopening, given the fact they are so domestically skewed economically sensitive and tiered to what it's going to be like to get workers back into jobs and the like and what that process is going to look like. that's worth noting. the health care is outperforming today. cnbc's covid 19 testing and treatment is up 19%. some of the names focused on treatments, focused on vaccines and all of these other types of tests that are going to be so key to the economy and to society, ultimately rebounding in a healthful way are rallying, carl >> all right morgan, on that note let's get to today's markets and bring in bob peck, barclays chairman of global internet banking. bob, thanks for coming on. good to see you again. >> yeah. thanks again for having me i appreciate it. i would be remiss if i didn't start by thanking the medical responders out there and, you know, the daily heros that have

really helped us live some sort of semblance of normalcy in our lives. thanks again for having me on. >> totally agree you can't mention it often enough either on tv or social media or what have you thanks for saying that we love to have you put on your old analyst hat, so what would you say about covid-related tech names right now, the performanc they have, the way that ties to reality and the way in which it may or may not reverse as we see a consumer that gets weaker the longer this goes on? >> yeah. it's been very humbling, quite honestly, carl, for a couple reasons. one, i'm lucky to be part of a bank that senior management led by our ceo moved quickly to protect the employees which was critical and all the resources of the bank to help our clinsz

that need help we've been part of multibillion dollar deals in the automotive, energy, cinema space and it's been a humbling experience as our clients enter these difficult times to step up and help them out. that's been tremendous there's one, you know, small story i'll tell you a company you know well that's chugging along, great top-line growth and it was profitable, et cetera, and about a week or two into covid i got an elon musk from t -- e-mail from the ceo that said i need you to help save my company. that company got funding and it is now well positioned being a part of this experience as a banker has been tremendous. getting to your question about the covid tech that we talk about, which technology is levered to this or immune to the impacts and changing consumer behavior or actually levered to it and can benefit from it and we talk to our clients about the

covid tech, covid standing for five areas, on the "c," collaborative software and security names like slack, zoom, docusign, all names that have done well. "o" is for online commerce, amazon, etsy, wayfair have done well as people shop more online. "v," video streaming and gaming, all those companies have done well whether netflix, activision, nintendo have done well "i," the in-home services, thing about education, things like chegg, peloton, teledoc, all those types of things. and last one "d" is delivery right. delivery whether that be uber, grub, hello fresh, et cetera, have all done very well. if we look, therefore, on how we've done this year, as you know, the s&p is down about 9% give or take, and you know the

nasdaq is up 1 or 2%, but if you look from the peaks, right, you have the s&p down about 13% and you've got nasdaq down about 7%. that basket of stocks we went over was up 16%. and if we look at the run off the lows, that basket is out performed the nasdaq by 800. you can clearly see investors are thinking about those types of names, particularly when we don't know how long the pandemic will go on >> although, bob, by the time we assign an acronym for a basket, i mean it's usually an indication that it's already well absorbed into the market. what's to prevent it from retrenching from here? >> well, any name can obviously retrench and let's see what happens with the virus and get a second wave or not i think each one of these names i mentioned play to a changing trend that i think is accelerated because of the pandemic it was a trend that was occurring anyway, whether it be

more individual conferencing with the zoom or medicine at home with teledoc, all of that was happening anyway this process going through the pandemic actually just accelerated a lot of that. i think even if we did have more bumps in the road, these types of names should benefit you more insulated or leveraged daily events. >> bob, good morning it's jon fortt i think a key to figuring out where stocks like that perform from here is maybe understanding how we got to where we are right now in the overall markets tell me what you think it seems to me that the market either got something wrong or is getting something wrong. it either underestimatesed the fed's resolve, overestimated the devastation from covid-19, or is now overestimating our ability to recover what do you think it is? >> yeah. i mean i think you saw from peak to trough you're down 35% or so,

violent moves in a short auto time the all-time high, february 19th and the recent low march 23rd. i think that's right i think what the market tends to do, as you know, it's discounting mechanism. everyone is more aware of the carnage that virus was taking playing on the country i think now what investors are doing is looking for the delta, the next change of information, start to see some green chutes and ultimately what can we look like at the end of theyear, 2020, looking at 2021. you had 2019 p/e on average about 19.5 if you look at the p/e today, on 2020, it's about 21.5, about two turns higher i think what you're seeing is investors are looking forward to 2021 in a normalized environment and ironically off those numbers you're looking at 19.5 times sort of consistent with what we've seen >> bob, i wonder what you think

about the ipo pipeline right now. at a time where both investors and companies themselves seem to be trying to sort out and sus out potential green chutes we got a lot of that commentary in earnings calls as of late, at least within tech and internet, the fact that we have digital car buying platform vroom filing confidentially to go public right now, is that something we're going to see more of >> yeah. what you've seen over the last two months you had some ipos that have been almost all biotech. what the market was looking for was quite honestly last friday with the chinese cloud provide that came out and has done well, up 40, 45% or so, that may hint the market is opening a bit and what you're seeing is our clients looking for windows, late june, july, if things stabilize, with the vix below 26 or so, right now around 30, i think something like 95% all ipos have been done with a vix

below 26%, if we can get a little stabilization around this, you can actually see windows start to open in the summer what i think is interesting, too, the old wisdom was, that you couldn't have ipos around november because of the election and i think that now, that thinking has now changed as the window is shorter than the full year it's now from june to the end of the year i think now you will have a more fulsome third and fourth quarter of ipos. once again assuming stability. >> interesting that vix statistic, that's a good one, bob. really appreciate it you've got so many radars you bring and we hov seeing you and talk to you soon. >> thanks for having me. after the break, an exclusive with new disney ceo bob chapek, down a couple percent on the day so far but up a couple for the month we'll be right back. it's a thirteen-hour flight, that's not a weekend trip.

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welcome back let's get to julia boorstin who has a very special guest, the ceo of disney. julia? >> morgan, thank you so much i'm joined now by bob chapek, disney's ceo thank you so much for talking to us us this morning. >> appreciate it really appreciate it it's a pleasure to talk to you, julia. >> so, bob, we've seen the video

of disneyland shanghai opening, operating at less than 30% capacity, but we've seen there's demand from your fans. can you give us a sense of what bookings are looking like through the rest of the quarter and what you're expecting in terms of attendance at this park, looking into next quarter? >> well, shanghai is what we call a short book market where typically most of the tickets for that week are sold within the week as you know, we're significantly constraining the amount of tickets that we'll sell and we're pretty much booked out for the rest of the week we have a few tickets available on certain days, but essentially everything is gone this is really indicative, i think of the love that consumers have for our brand across the world. i get countless number of e-mails and correspondence from guests saying how much they can't wait for us to open up because, to them, it representing some semblance of normal, maybe the new norm, and we want to open up as soon as we

can across the world but we're going to do so in a responsible way. we're excited for our guests, we're excited for our casts. we want to get our cast back to work as soon as possible this is a first step, it's a baby step, and we're moving slowly but we're encouraged by what we see in shanghai. >> in terms of what that thu normal looks like, you're operating at well less than 30% of former capacity how long is that sustainable from a profitability standpoint? >> well, i look atthis as a stairstep. we're going to be very conservative, very prudent, we're going to be very disciplined about how we open up and then we're going to ramp up and increase the government has a 30% cap of our typical capacity in terms of the number of guests that we can put into shanghai disney so the plan is essentially to go up 5,000 a week until we get to the point that we know we can operate under our guidelines in a way that's very responsible

and then when the government loosens up those constraints and restrictions we'll walk that ramp again slow and steady for us >> but do you think reaching 100% capacity is even possible with social distancing and the idea of trying to keep six feet back between in the park >> we're going to see how it goes a lot of that depends, julia, on the guests and our guests have been extraordinarily diligent in terms of maintaining that social distancing so far. a lot of it has to do with guest behavior as much as disney operations if the guests continue to behave in the way they have i think we might be able to approach that. >> so what does that mean for reopening the parks in tokyo and hong kong? do you expect guests to behave in the same way there? >> i think so. i think, you know, everybody across the world knows that this is a relatively important condition upon which we can continue to operate the parks. they all want to come back to the parks and everybody knows

that covid-19 is a serious matter therefore, we're all playing a part of this ecosystem of safety, if you will, and we're going to do our part and we need our guests to do their part too. >> can you give us any sense of a timeline for even partially reopening the parks in tokyo, hong kong and then of course the parks here in the u.s. you are opening the mall outside the park in orlando, but does that mean that we will see distan disney world open in july? >> we're not going to comment on any date to a certain extent it will depend on guidance we get from the federal government, the state government, the local government, health care experts as well as, you know, the immediate hospitals that are in the area of where we operate and what their capacities are. we're not going to comment on any specific timing, but i think it is a good sign that disney springs will open up in orlando. we stuck our toe in the water, if you will, in shanghai with

disney town and we operated that for about a month and everything went extremely well. the guests really cooperated our operations people were phenomenal and we held to the standards that we set up and hopefully we'll see that at disney springs as well and this will be the beginning of a great n new rebirth of disney parks. >> what will be the hardest part for you to reopen the parks, especially the parks here in the u.s. such a meaningful piece of your revenue is it about getting the right cleaning processes in place? is it about training your visitors to get used to waiting in lines in a different way and not getting too close to each other? what's the key thing that needs to be figured out for you to get those parks up and operational again? >> you know, along with social distancing, one of the things that we're likely going to require is masks for the casts and guests i think the masks for the guests will be something that culturally is different.

in asia, as you know, it's fairly commonplace, even before covid, for folks to walk around in public with masks on. that is not the case in the u.s. so that will be something that will be a little trying for some of the guests particularly in a hot, humid summers that we tend to have. >> yeah. absolutely shifting gears over to your movie studio, with all theatrical releases on hold, until you release "mullan" in late july, are you concerned people will be wary about going to movie theaters? >> it's going to be a stair step situation like in our parks. there's a lot of pent up demand on the other hand that viewers, fans of movies want to go see. typically, if you think about the occupancy of a movie theater, monday through friday afternoon, you know, 25% is about what you get if they were

to open up at 25%. it really becomes only an issue on friday night and saturday night and to a lesser extent on sunday night it really doesn't push the limits of what would typically be seen as occupancy inside movie theaters until you get to those weekend and evenings and that can be managed. that's up to our exhibiters that we partner with. i don't think it's going to be as extreme as your hypothesis. >> this is one of the first wide release films that's going to be hitting the theater chains in july do you wish you had held out longer on that release >> well, we're optimistic. at disney we're a bunch of optimists. that's a very good date for this title. you have to balance people's anxieties about going out in public with the pent up demand whether you're talking about movie theaters or talking about theme parks. as long as we can do so in a safe, relatively safe, responsible way, i think that's

going to be important for the exhibiters to consider all factors when they make their decisions to open up >> now, before you release "mullan" you are taking another one of your films that had been intended for movie theaters and releasing it on disney plus in june are you considering skipping theaters and sending other ones of your films direct to disney plus going forward >> you know, we believe in the theatrical experience, particularly to launch big blockbuster franchise films. it fuels the entire disney company from consumer products to theme parks to disney plus. so we really think that's the smart way to launch our big films. on the other hand, with the luxury of having disney plus and its humongous success it's had with 54.5 million households across the world that's also for certain films in a viable and

important way to premier films as well. it will be on a very deliberate basis, a film by film basis that we make that decision. but there's not going to be any hard and fast rules. i think what the situation with covid has taught us, you need to remain flexible, nimble and we will remain nimble, but we do believe in that theatrical window. >> speaking of disney plus, you mentioned the 54.5 million subscribers. you're well on your way to hitting the lower range of the 60 and 90 million subscribers you forecasted you would hit by sent 2024, we're talking about four years early there can you update your guidance on disney plus for us >> we're to the going to update guidance only to say we're thrilled with where we're at with disney plus and we have some launches coming later on in the year we've got in june we've got japan, we've got more european countries, in september and

towards the end of the year we will launch latin america. we're very bullish on disney plus and the growth in the number of households for remainder of the year. >> at disney plus and your movie studio, you haven't been able to shoot any new productions, especially here in california. i'm wondering at what point the stoppage of production of entertainment is really going to have an impact on the kind of content you're able to put on disney plus as well as on your tv networks? >> as you know, we have a certain amount of inventory that we've got particularly for disney plus that is still fueling the machine. it's important to note, though, that pre-production, sort of the development phase, can still happen during these times of lockdown, if you will, and post-production can still happen it's only films mid-stream, right in the middle production take, for example, man da lorren, it was shot before covid

really hit we've been in post-production and there will be no delay same thing with the "black widow" coming out in november. >> another huge piece of your business is the television business, espn is a huge part of that americans are suffering the lack of live sports right now and that is really dragging on espn's advertising revenue how much do you expect espn and the lack of live sports to be a drag, not just on advertising but also to be a driver of cord cutting going forward? >> well, julia, i think it's important to note that in the month of april amongst adults 18 to 49 in prime time, we were up at espn by 11% i think that says something about the ingenuity of our team at espn and says something about the brand and the wealth of assets that we have, to be in this situation with no live sports and have ratings go up 11% in prime time i think that says something

it's "the last dance" the wnba draft, the nfl draft, we love live sports. live sports are critical to espn, but we found a way i talked about being nimble, espn is nimble and found a way i think we'll be resilient >> what are you hearing from the heads of the different leagues about when we'll see games start up again, maybe without fans in the stands >> well, there's been countless number of discussions about different options and plans from each of the leagues. i won't comment on any one specific because i will let them do that, but we're working very, very closely with a variety of different scenarios that will bring live sports back to our fans at espn >> now, you mentioned your ratings are being sustained at espn by the sort of more innovative sports programs are you concerned big picture looking across your networks that we'll see ad dollars move

away from television and shift over to digital platforms like facebook and google due to the covid related recession? >> there's no doubt we're going to feel the impact of the advertising hit both at abc and espn, probably more pronounced at espn than abc long term, though, i'm not sure it's really going to be anything that's going to be shocking. there's certainly trends happening in the hashgts place and those trends will follow, but i don't see this as a seismic shift at all in terms of where the ad market will go, aside from, of course, the short term which we know we're experiencing right now >> and just a final question, bob, on leadership you took this role of ceo at a time just sort of on the brink of distance faciney facing unprd challenges and disney is being hit hard by covid and the ripple

effects, when you were appointed ceo, you were mentor on the day to day and your predecessor bob iger was meant to focus on content. how has that relationship worked out in the wake of this crisis >> well, this is an unprecedented situation and as you recall in our first conversation, we talked about disruption i knew there would be disruption in my tenure as ceo. what i didn't realize it would happen that fast nor would it happen that profoundly bob is there as an adviser for me we talk many times a day, as we do with our entire senior team because there's no playbook for this, right. there's no playbook for worldwide pandemic that essentially shut down most of the world and certainly a big chunk of disney and we have a team approach. we're all board and working hard to figure out the right thing for our shareholders, the right thing for our cast and the right things for the guests. disney is a resilient company and we're going to be back

stronger than ever and we've got great brand, we've got great franchises, great storytellers and i think we're going to come out of this just fine. >> well, we really appreciate you taking the time to talk to us this morning and keeping us postd on everything moving forward. bob chapek, ceo of disney, appreciate it. carl, back over to you >> all right julia, great stuff just covered all the bases julia boorstin with chapek from disney thanks. take a short break here. the market is trying to knock on the door of session highs at 2920 back if just a moment.

welcome back, everyone i'm sue herrera. here's what's happening. south korean officials are scrambling today to contain a new coronavirus outbreak after the country reported over 30 new infections sunday, the highest daily number in more than a month. schools were schedule to reopen on wednesday, but now that may be delayed. jack dorsey is donating $10 million to a criminal justice reform group, reform alliance, which will secure masks and other personnel protective gear for prisons across the country they have been at the center of outbreaks in several states. the new england patriots owner robert kraft auctioning off his super bowl li championship ring as part of the

all-in challenge, the world's largest digital fundraiser the proceeds will go to health care workers, first responders and to feed those in need. and as always, you can get more coronavirus coverage by going to cnbc.com. jon, this represents the patriots' comeback against the falcons and he said it shows to him that this country can come back, the ring is now going for more than $300,000 >> wow all right. that's good news thank you. we have a quick programming note as we head to break join host tina fey for a virtual benefit program rise up new york, to support the most vulnerable populations in the u.s. city and state hit hardest by the coronavirus pandemic. the telethon will air tonight at 7:00 p.m. eastern on local new york stations and nationally here on cnbc we'll be right back. stay with us this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology

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marriott shares down about 5% as they give investors an

update on occupancy trends let's get to seema moody with more. >> first quarter profit missed by a wide margin, declining 90% in april, forcing the world's largest hotel operator to address its liquidity concerns which now stands as liquidity positioning at $4.3 billion. i asked marriott cfo about what long-term bookings look like she says group cancellations have been concentrated in the first half of 2020, although marriott is starting to see cancellations show up in the third and fourth quarters. a recovery, she says, in travel depends on the continued containment of the virus and airlines adding back capacity. demand will first return in drive to and leisure destinations as restrictions are relaxed. there are signs of a recovery in china. occupancy if greater china just over 30%, up from the lows of under 10% in february. but this trend is not consistent around the world ceo arnie sorensen said europe

will probably be the slowest to get back and in the u.s., with fewer people getting on plane, drive to markets are performing a bit better sorensen did say new york's reliance on mass transportation and international tourism will challenge the city while chicago and san antonio cities reliant more on domestic travel, will likely perform better in the near term. you're seeing shares trade down 5% all the major hotel operators moving on the report hyatt and hilton down. i'll send it back to you >> seema moody, thank you. after the break, elon musk taking on the state of california we're going to discuss with recode's kara swisher. that's coming up with the dow cutting losses down ayituspots st wh decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

ever something's gone mogotten into the office.m,

i hear you. feels like there's no barriers between departments now. do you think everyone appreciates it? i do. huh... forgot my glasses. serivcenow. the smarter way to workflow. find a stock basedtech. on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. again, this time in california, threatening to move tesla headquarters because of alameda county's covid-19 restrictions joining us is recode's kara

swisher. good morning good to see you. >> hi, how are you doing i'm in hawaii today. >> it's very nice. still flying the helicopter, which i love. >> yes no no >> let's talk elon >> yeah. >> i have sympathy for his frustration. manufacturers elsewhere have been allowed to open up, arguably by governor newsom's, you know, restrictions in california he could be allowed to open up, but at the same time he's damaged his credibility with tweets both on the virus itself, saying it wasn't going to be a big deal, and just kind of fast and loose with the sec he hasn't built a reputation as a careful guy. do you think that comes into play here? >> i think it doesp it's interesting to contrast him with jeff bezos who is sort of doing these things where they're sort of hardening amazon for the next virus or whatever, is going to spend the money to be safe and things like that this is very elon. he's sort of, i fought the law and the law won in this case

cooperation would go a long way if he appealed to people wanting to do manufacturing, announced safety moves and very proactive that way he does like to tweet and done some tweets that are probably unfortunate for him, especially with [ inaudible ] some of them are him being elon and i don't think that's going to change if people expect that they should find another ceo to like. i think -- i don't know what's going to happen but he's bringing into focus the idea of what needs to be done to return manufacturing and the pain that a lot of companies are feeling. >> what do you think of the chances he really moves out of california >> you know, if anyone would do it, it would be him, i guess i don't know what else to say. nevada, he certainly has a battery plant there and there are other options. texas is another possibility i wouldn't doubt that he would do it compared to other people i don't think it's an idle threat, but he's expressing his

frustration and he does that quite a bit and uses twitter to do so. sometimes it's interesting and funny, other times he probably shouldn't be doing it, other times it's elon. >> i'm curious, kara, how do you know he hasn't had conversations or outlined at least with officials in california some of the safety measures and protocols he would take? there's a tem plate there for his operations in china, right >> you know, he may have they went back and forth on the ventilators. he may be in talks with them the reason he's tweeting this he's been frustrated, and so he, you know, he's been talking about this issue about civil liberties and free -- i think he had free -- whatever he was tweeting i'm not paying attention i think that he is serious about these issues and so he's tweeting this stuff, he's obviously either talked to them or -- and has had a frustrating conversation in his mind or he hasn't talked to them at all and he just doesn't like these laws that are in place.

he's been in manufacturing in fremont a long time, it's been a big deal for that county, but at the same time, i can see him easily moving to nevada. i don't think he's a buffer in that regard. >> it would be tough for some of the personnel perhaps to move. >> yeah. >> maybe not too hard. real estate is cheaper there move on to chip companies with "the wall street journal" reporting the trump administration is working with chip names like intel and tsmc to build new factories potentially in the u.s., kara, and reduce reliance on the supply chain out of china. china right now is really trying to build not just chip manufacturing, but also intellectual property in mainland china in the u.s., intel's already a huge manufacturer of chips, but it's kind of alone in that sense. do you think -- i think this is the key question -- there's enough bipartisan support for giving the kinds of tax breaks it would require for big companies to find it economical

to put that here >> you know better than anyone about foxconn in wisconsin and all the things they promised to do and never happened. moving this kind of manufacturing to this country is a heavy lift and it could be done, but most of what's going on is happening in asia and it's been doing that for a very long time some of the manufacturing, the specialized manufacturing, could be done here there's some of the glass stuff for apple and things like that but the idea of wholesale movement of this kind of manufacturing back to the united states seems from another time it would take an enormous tax break and costs and the question is, is the prices, will consumers be able to pay the prices to use labor and get these things going in terms of the supply chain and everything else it's, to me, a little bit of pr and something that donald trump talks a lot about, but i think that coronavirus has shown the reliance on this global economy,

not necessarily just china, obviously a lot of it is in china, but shifted to india and vietnam and other places, you know that, it's shifted all over the world. >> i think if there's one area where it really could happen it is in semiconductors ibm used to do it in new york. samsung is doing it in texas intel's got portland they've got fabs in germany and israel it's not necessarily the low cost it's the availability of the talent, the right tax breaks an long period of time especially the most recent generation chip fabs, you have to have such a long runway to plan these things and be able to guarantee you will get your money back. >> yeah. i think it's important to think about what a heavy lift it is. maybe we should anticipate what's going to be necessary for the future of technology that was something apple talked a lot about, the idea that we produce the really high-level stuff here in this country and

we keep the most important stuff here we'll see about this i just feel like these are often, you know, we're going to build factories in the u.s. as if it's a simplistic thing and it's complicated and so many steps including the supply chain, but you're right, they could do it. the question is, will they do it or will it be some just factory that's a single factory that's more of a pr stunt than anything else >> yeah. also some national security implications, kara, especially with regards to taiwan if the u.s. starts trying to embrace taiwan in ways that irritates china, then you have all those ag purchases at risk which is a big part of the president's calculus to getting re-elect >> china is our rival. we talked about this in terms of technology, it's going to be the chinese future, the digital future we have to figure out ways to get along with them and it's a dicey relationship we have to be careful with, with political issues like taiwan or

competitive issues you know, how do you deal with a power that is growing and has a lot of -- hand hold and robotics and a.i. and areas including manufacturing, important things that we need and it's shown here we have to figure out, it's a very dicey path, the relationship with china both as a rival and partner in so many ways it's not for the faint of heart to enter these kind of talks or to make sort of broad statements it's super complex going forward for sure. >> yeah. the u.s. is going to really have to do a better job thinking long term if it wants to compete with what china is trying to do good to see you. looking forward to seeing you soon kara swisher. >> good to see you. >> okay. it will be interesting to see what the department of defense, the role that that entity plays in all of that as well we'll take a quick commercial break. with the markets mixed right now, the dow is down 150 points.

the s&p is down fractionally about 0.2% the nasdaq is trading positive up 0%. ayitus.4 these days staying connected is more important than ever.

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for more information on how you can stay connected, visit xfinity.com/prepare. welcome back new york governor andrew cuomo holding his daily coronavirus update headlines to report, statewide deaths hit the lowest daily toll since march 26th and as deaths, infections and hospitalizations continue to decline, governor

cuomo announcing friday, may 15th, is the end of the statewide closures we will continue to monitor that and bring you anymore headlines as they come after the break, the ceo of stamps.com, we're going to be right back. stay with us - did you know that americ ans that bought gold in 2005 quadrupled their money by 2012? and even now many experts predict the next gold rush is just beginning. so don't wait another day physical coins are easy to buy and sell and one of the best ways to protect your life savings from the next financial meltdown. - [announcer] today u.s. money reserve announces the immediate release of us government issued 1/10 ounce gold american eagle coins for the incredible price shown on your screen. these gold american eagles are minted at the united states mint, and right now they are being sold at cost for the price shown on your screen. - pick up the phone and call america's gold authority u.s. money reserve.

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us money reserve has proudly served hundreds of thousands of clients worldwide. don't wait another minute, call now to purchase 1/10 ounce gold american eagles for the amazing price shown on your screen. we want to open up as soon as we can across the world but we're going to do so in a responsible way. we're excited for our guests we're excited for our cast we want to get our cast back the work as soon as possible this is a first step it's baby step we're moving slowly but we're very encouraged by what we see >> what an interview this

morning. as talked about the opening of shanghai disney. says baby steps adding maybe 5,000 additional capacity guests per week no real guidance on disney plus. we really covered the water front on a big day for disney in china. >> yeah, absolutely. some really interesting commentary on espn as well given there's no live programming and saying they don't have play book for this a new ceo coming in in the time of pandemic navigating something like this. the pandemic is resulting in stronger demand for packaged delivery a big beneficiary has been stamps.com which is up 140% year to date. this despite the financial viability of the u.s. postal service. ken, thanks for being with us

today. >> absolutely. thank you. >> we started this hour talking about the role that this idea of stay at home stocks have played in the recent rally of the nasdaq i would add stamps.com to the list you did see a big positive impact whether it was a new customer or an increase in package volumes. have you seen that continue to carry out into the current quarter. as states begin to reopen, how sustainable is it? >> yeah, in the month of april we definitely seen a continuing fact we have seen it accelerate april was -- our customer acquisition was up 300% and our package volume was up 50% year over year. we have been a beneficiary of the move to online i think we see it, it's potentially, you know, we don't

think it's a one time glitch i think there's going to be a general behavior change in terms of people looking at a new way of purchasing thing os online i think part o is the familiarity with our service as well as the aspect >> go ahead. >> sorry i was just saying we see it as both an initial thing but once people try new ways of doing postage, of doing shipping i think there's a longer term implication of adoption once you try it, you continue down that path >> you offer mailing an sh inin shipping across the world. obviously, that quasi

governmental agency is in view given the fact it's warranted it could run out of money by the fall there's this brewing fight over how to help the agency what is your expectation how are you plan ning in the event there will be major changes. >> they have a lot of changes. like the rest of the public we're concerned about their l g longer term. they have been losing money for some time, as people moe there's a difference between cash flow and gap earnings as every one knows. the way they recognize their earnings is on gap basis and the payments they haven't made are not part of the cash they have been building cash over the last five years they do have about 10 billion dollar on their balance sheet. i think it should sustain them for a while. there's been a drop in advertising mail there's been a drop in other types of first class mail.

that's the majority of their revenue. they faced a lot of changes with their workers on the front line. they had a lot of coronavirus cases as well as some deaths, unfortunately, they've got a lot of changes i think we're comfortable. we feel like they're such an important part of the economy and important part of the u.s. fabric that we don't see the congress not funding them ultimately >> that's my main question is what should the postal service be is it an essential service an sort of essential piece of the u.s. economy that needs to be subsidized and doesn't have to be profitable all the time or is it kind of a quasi governmental enterprise that should be profitable if it's like rural broad band then people should expect it needs to be subsidized so in a pandemic people can still receive speciessential goods. if not, why not just privatize

it what do you think? >> i think there's a difference between privatization. there's been companies in the world that have privatized it. i think there's adjustments they can make in the past they've tried to do those things like shutting down post offices reducing the number of delivery days per week. clustering mailboxes i think there's ways to reduce costs. first class mail has been declining for 20 years i don't see that changing. the coronavirus accelerated that proce process. i think it's going to be a massive restructuring that has to take place as well as government subsidies that will have to come into it >> are higher parcel prices inevitable and what does that

mean for your business >> we support 40 carriers in the u.s. we're not totally dependent on the post pal service when you tack about parcel price, you got to talk about u.p.s. and fedex you have to talk about different sizes and weights. it's a more complex question than like pricing. parcel prices, i think it's a very competitive market. i don't see that going up a lot. if it went up a lot, it depends on the competitive situation we have a partnership with u.p.s., u.s.p.s. people need to ship parcels and there's been a huge up tick. >> yeah, we have seen that and we saw that in your results as well ken mcbride, thank you for joining us today >> thanks for having me. guys, it's been a pretty interesting session here as we're close to session highs assignme it seemed like it might have

coincided with some of these headlines out of new york. >> new york and the new york area likely to be on the tail end of that. don't expect that to open up any time soon. >> yeah. not quite to friday's high which was around 2932. let's get to the domino in the half all right. thank you very much. our breaking news coverage continues right now. welcome to the show. front and center this hour stocks in the red but pairing losses as the u.s. economy begins to reopen the nasdaq trying to push higher above the key 9,000 mark positive for the year and aiming for its longest winning stretch since december but how long can stocks keep trading higher with all of the uncertainty that still remains out there. should i vestnvestors brace