>> alibaba emerging markets exposure and growing market. >> liz, finally, for you. >> i'm showing an equal weighted tech index here because i think there's rotation into smaller cap tech names but stop me if you heard this before, i'm positive on technology. >> thank you very much for your thoughts kelly evans p.k.s up our breaking news coverage right now. thank you, dom hi, everybody. the bulls are trying to take control. the nasdaq and s&p turned positive and the dow is pairing the losses at this hour down 48. all this getting this boost after new york governor cuomo said easing some restrictions and three regions of the economy right now and that again helped to put a lift under the market here the s&p positive by 3 points and the nasdaq up by 65. that said, the reopening sensitive stocks, the airlines, the cruise lines, the casinos all still lagging today.

check on the mgm resorts is an instance down 5% today the airlines in general down more than 2% let's get to all of it and more of today's news flow with bob pisani good afternoon, bob. >> good afternoon, kelly we had a nice rally in the middle of the day and kelly is right, folks we are sitting right near the highs for the day. the dow on the verge of going positive just shy of that but we've had a great rally in the s&p 500. mid-morning governor cuomo talked about the procedure to open new york state but not new york city. rest of new york state is talking about that we're knocking on the doors of breaking out here. 2939 the recent high at the end of april and then go into where we were in the early part of march so we're breaking out here potentially. mostly defensive health care, consumer staples and exceptions and that's some tech stocks, most of the time

the semiconductors doing well. nvidia at a historical high in a sector of the defensive names doing better i mentioned the laggards here. cyclical, industrial stocks, energy stocks, bank stocks chevron, caterpillar, raytheon, boeing and jpmorgan. banks having a tough time of it. wells fargo. this is a nine-year low for wells fargo. goldman talked of increasing loan loss reserves and saying that loan loss reserves likely to increase. back to you. >> under 25 bucks and 9-year low. striking thank you. terrible april jobs report sparked a debate between stock market bulls and economists about whether layoffs have peaked steve liesman is here now to explain. steve? >> kelly, thanks an interesting debate has broken out. everybody agrees that the number of 20.5 million americans losing

the jobs is absolutely horrific but a question of what it means for the future the optimists point to the 18 million on temporary layoffs saying these folks tend to come back very quickly, at least the way of prior recessions. jpmorgan writing over the weekend almost all then crease in unemployment is ranks of temporary layoff the bls classified anyone who said that they did not work because of the coronavirus and unclear they will have jobs to return to when the economy reopens. another source of optimism was the state reopenings out there with some saying that the temporary layoffs, folks will be hired quickly. on the other hand, as economists often do, oxford economics writing, how long the markets are willing to downplay the disastrous economic news now evolving is anyone's guess we suspect that fear factor will prevail after lockdown restrictions are lifted and

restrain household spending propensities people aren't going to go even if it's open and more tough economic data on the way this week, kelly. we'll see how markets process it the inflation debate starts tomorrow fed chair powell on wednesday. jobless claims on thursday and then retail sales will tell us at least initial read for how consumers were spending in the month of april both markets and economists watching the behavior around these reopenings they want to know, were people home because the government told them to stay home or because they wanted to be home, kelly. >> speaking of debates, steve, one of the ones kicked off again after the comments last week that interest rates should be deeply negative and after we saw fed funds futures negative is whether that is still a possibility by the central bank. >> not among the fed folks that i talked to and or cover they were just recent comments

where in the past hour actually raphael bostic just said in a webinar he sees negative rates as one of the weaker tools in the toolkit and charlie evans, chicago fed president, said about five minutes ago that he thought that it was not something he would be anticipating to do here in the united states. >> has powell himself specifically weighed in on this and said he is not a fan of it or left it up to the others? >> i believe he has. i'd have to go back and check specifically but my understanding from what powell has said publicly is he is not a fan of negative interest rates it would complicate the money market industry in the united states although there's some pretty good academic research, i think ken rogoff behind this saying if you set it based upon the underperformance of the u.s. economy you would set rates in a deeply negative place right now. >> that's a big debate but just

like you reported weighing in perhaps against it for now we'll have more i'm sure hopefully not. that means the economy is better we don't want that debate. see you then. >> good point. despite the record unemployment figures and concerns of a slow recovery, the stock market keeps going on. how long can this continue joining me now is jason brady, terry spath, both of them manage funds outperforming the market right now and tom porcelli it is great to have you all here tom, on the negative rates thing, have you kind of taken a stance on this one way or the other? >> yeah. it's i think steve nailed it it won't happen, at least not now. there's no imperrical evidence to show it helps any countries doing it there's punitive economic outcomes associated with it, not

the least of which is capital flight we saw that quite clearly in europe so i do not believe that that's where we are going to be today. i think if we learned anything from this fed it is they're willing to sort of toss away old orthodo orthodoxy. this is a fed that didn't want to engage in buying credit but here we are in an ig program so i think that things would have to get worse for us to go down that path. >> jason, it is your limited term income fund up this year about 1% or so how are you managing to generate that kind of return? where are you investing client funds and where would you start to rotate if any rotation is under way now moving into the back half of the year? >> sure. so what we're naf gavigating isn unpress den unprecedented situation and shown by the fact that the fed is in addition to some of the programs that tom mentioned is

resurrected the old programs of 2008 the real issue is here is that the fed pushed and regulators pushed markets to be the lenders in the u.s. economy so we are those lenders in our fixed income portfolios and found a tremendous number of different opportunities to step in from a liquidity standpoint so that's how we generate the returns. as this continues and i think it will for sometime we'll see ebbs and flows of liquidity, of opportunity and naf gavigating key. >> maybe put that in plainer speak for our listeners, what kinds of income investments would you recommend right now? >> sure. so right now you see some of the basic blocking and tackling industrials which are disfavored by the equity markets. to actually be survivors in the business so we see some components, parts of manufacturers, semiconductors

mentioned positive as a cyclical and command pretty big spreads in the marketplace in this market, you have a different situation. something considered to be more risky tending to be cyclical is advantaged by the current economic and frankly health environment so you have to take what you know about the businesses that you look at, as a lender, and put that into the context of the current environment at both the individual and portfolio level. >> okay. >> you saw united fail. >> i agree the deal falling through on friday had a lot of people concerned about that just to pivot for a second, guys bring in rick santelli we have 3-year notes go up for auction. rick, what can you tell us >> demand i gave as a charlie minus, a smidge below average. remember, this is 42 billion of 3-year notes the biggest amount ever auctioned. the rest of the auction series 10s and 30s is a package, the

biggest ever go through it. the yield .23. lowest yield in an auction for the 3-year note ever we go through all the pricing and easy on this one where it priced in relation to where the market was and issued is spot on everything else just a little bit below average. so we gave it a c-minus but that is nothing to worry about. we are moving a lot of paper and even though demand isn't stellar the longer maturities probably more interesting back to you. >> all right so lowest yield ever and a demand of c-minus. thank you, sir terry, i think that's the second time we have had to sit through the auction results. you get the rest of the time here your fund all asset fund down 3% this year and the s&p down 10% right now. how did you pull that off and what is your advice to investors now? >> right

yeah thanks, kelly, for having us back with sierra we have had a tough, challenging year in terms of investing but our strategies have really paid off and i think it goes somewhat to jason's point about being tactical in this type of environment. where we had rick's report, all sorts of economic data coming out. we have paid a heavy toll for this coronavirus and that is going to continue to inject volatility into the markets going forward and i think that the recovery that we are going to see is somewhat in fits and starts and our approach which is essentially buy low sell high and identify rules in place when to buy and when to sell we were long treasuries through march, u.s. treasuries that really helped performance and now completely back out of that and back on yield on. >> high yield corporate bonds is

interesting and on the corporate bond piece how important is the fed's role here? is it basically underpinning your entire investment in the sector or would you be willing to go out on the limb no matter what >> no. i wouldn't be willing to go on to the limb no matter what there's a couple of things that are going on yes, the fed is absolutely been saying -- i don't think they have been doing it but saying they would buy corporate bonds we are seeing positive trends in the sector and the rules pointing us to that asset class and showing the trend is one to expect to ride for a little bit longer. >> and finally, terri, how long do you think this will play out? rest of may? rest of the summer rest of the year >> right hard to say. i mean, our trends are based on

six to nine-month indicators that said this is a very different market than what we typically see and watching everything on a daily basis and the recovery is more of a switch than a v-shape things take these stairs up and the elevator down. so hopefully this rides out for a little while longer and watching it closely. >> good to speak with all of you today. thank you so much. coming up, we're going to talk about disney shanghai theme park reopening this weekend with thousands of visitors. we have an inside look at the new normal in the park and what it could mean mere at home. rhetoric between the u.s. and china is heating up due to the pandemic the department of justice warning that china poses a serious threat to the pharma atto iahd.s. th srys ea every financial plan needs a cfp® professional --

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welcome back shares of disney are falling today and down more than 25% so far this year as it reels from the covid-19 pandemic. but today's a major milestone as disney shanghai is the company's first theme park to reopen eunice has a path forward for disney there and julia boorstin sat down with the disney ceo bob chapek a short time ago. eunice, what is it like there? let's start with you. >> reporter: hey, kelly. shanghai disneyland is closed

for the night but today the park opened thousands of visitors with fan fare and safety precautions. selfies in front of the disneyland castle. after 15 weeks, shanghai disneyland, the only disney theme park open for business and definitely not business as usual. the park still under post-pandemic restrictions to keep people healthy. the man in charge to do that here is head of oerngss andrew bolstein. >> we have the space around everybody. >> reporter: every line has markers to stay three feet away. at entrances and even while on rides like pirates of the caribbean. >> as our guests are loading in, we putt an empty set between each group and row between each of the rows. >> reporter: at the park visitors get constant reminders to keep a safe distance from each other at the restaurants entire tables are being blocked off. >> all the restaurants, the menus are same we don't do the phase.

we will have a buffet concept and we'll serve it for you. >> reporter: hand sanitizer is available at restaurants and stores, mobile payments encouraged theaters stay shut parades limited. no fireworks to discourage crowds you can still see your favorite characters, just don't get that close. mickey and the gang are social distancing just like everybody else no shaking hands or hugging. that has to wait for safer times. and, when a disney park reopens near you you could see some of these health practices over there. they're learning a lot and sharing a lot of information with the industry about how to manage this pandemic. >> eunice, andrew sorkin said this morning maybe it is not just so much of being there but traveling there. what do we know about where shanghai disney visitors come from and how that might compare with what we're able to do in

terms of reopening here in the u.s. >> reporter: yeah. that's right so far we don't have any of that data but the assumption is that a lot of the people have come from around the shanghai area and there are some people that make the trip from other cities. for example, for us, though, there was some anxiety when you think i'm coming from beijing. now i have to get on a plane or a train and might cause some people to give them pause before they decide to come to the park but what was interesting today is that there was a lot of positive feedbackabout shangha disneyland and waiting maybe five minutes or 20 minutes at the most for some popular rides and discussion online how this might be a reason to come to shanghai for the weekend so it is not only about the park but hearing discussion about boosting tourism for shanghai. >> right which might be a good thing or might not.

we'll see. eunice, appreciate it. now julia boorstin with the ceo himself and my guess is you tell people to wait five minutes for a ride at disney they'll probably show up. >> bob chapek relatively new ceo of disney said they're encouraged by the early demand that they're seeing for the shanghai park and plan to add cautiously 5,000 tickets to capacity every week. he didn't comment on when they expect the other disney parks the open >> we certainly want to open up as soon as we can across the world but we are going to do so in a responsible way so we're excited for our guests, we are excited for our cast we want to get our cast back to work as soon as possible so this is a first step. it is a baby step and we are moving slowly but we're very encouraged by what we see in shanghai. >> chapek also weighing in on the next theatrical release

"mulan" after a movie intended for theaters "art misfoul" on disney plus in june. >> we believe in the theatrical experience especially for big blockbuster films. it fuels the company from consumer products to theme parks to disney plus and so we really think that that's the smart way to launch our big tentpole films. >> chapek stressing that disney they want to be nimble across the country and every division and didn't rule out future direct to consumer releases and evaluate the movies on the new platform on a case by case basis. >> a thing i think eunice mentioned is 16 weeks for the shanghai parks to reopen maybe it is possible, i don't know, that we could be talking about a disney park reopening here in a month or two maybe

maybe it's masks my guess is by kind of limiting the number of people to go to disney they're making it more attractive even if it's -- it's a business hit for them a long time until it's at normal capacity. >> absolutely. i did ask him that question because disney did announce to be starting to open up disney springs in orlando now, this is sort of a mall that's outside the orlando park and open up on may 20th which is just around the corner and asked him if that means to see the whole of the orlando parks starting to open up in just a month or two or a couple of months and he said a lot of different things need to be figured out first and it is not just a function of whether there's demand but also what the local government says, the state government says about the ability to open up a gathering place of that size and scope and there are a lot of different things to be figured out but i think the behavior of people at disney springs, whether or not

there's significant demand and respect the social distancing rules will definitely come into play evaluating opening that park. >> last quick thing, would they ever reopen to people to basically come within the state or within a close proximity? i know people in the area trying to book hotel rooms down south and told you can't book if it's from new york, new jersey, connecticut. if the same precautions extend to something like going to disney. >> well, look. i think what's interesting is levels of oversight here not just what disney feels is appropriate but the local government, the state government and especially here in california there's been a lot of interaction between disney management and governor newsom, he commented on that, the fact they're talking to disney in the press conference last week and the same is true in florida so i don't know what kind of restrictions they have put on people coming in from out of state but california and florida very populous states andpeople who used to go to their parks

just within the states so i think there's an audience for the parks even if you just limited it to the state but who knows how many of those people to feel comfortable coming and depends on how unpleasant or different it feels at the parks right now. >> july wearing a face mask could get a little difficult like i said, that five-minute ride thing could be an enticement thank you for that information we appreciate it coming up, as states reopen so are the doors of open houses but is anyone showing up we will have answers next. they represent 1 out of every 10 u.s. hotels with names to recognize we'll speak with the ceo of parent company choice hotels about the industry's path forward. you can always watch or heo en to us live on t gon the cnbc app

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over to sue herera for the headlines this hour. >> thank you very much good afternoon, everyone here's what we know at this hour the white house's recommending testing of more than 1 million nursing home residents and staff over the next 2 weeks. starbucks say this is week to reopen 150 of its drive-through locations and some takeaway only stores in the united kingdom the coffee chain opened 90% of the stores in china and 85% of united states locations for delivery and takeout. three boeing planes are delivering personal protection equipment to a south carolina hospital today the ppe will be going to health care workers at the medical university of south carolina as always, for more of our coronavirus coverage go to cnbc.com back to you. >> thank you. shares of redfin climbing today despite a downgrade to neutral talking about valuation sunrises saying the company's advantage of virtual home showings may slow as more states

reopen but even if there are more open houses will people show up diana olick is here with a look at the path forward. diana? >> buyers seem to be ready and sellers not so much. we visited this open house in atlanta on saturday where about a dozen masked families came through over the course of two hours. the lack of listings which was pretty bad before the pandemic hit is even worse now. >> i've had two sellers in the last week that were about to list their home fully photographed ready to go and they said, you know what we'll stay put for now. >> reporter: for the week ending may 2 total listings down 19% annually and new listings down 39%. some potential buyers have been touring homes online and agents pushing virtual live tours but some don't exactly like that. >> i guess we looked on zillow but ultimately like to see

things in the field and so you just can't get an impression from a camera. >> reporter: now, hearst said he sold a house to a buyer seeing it on online but most want to get in the home before they seal the deal. >> it is interesting to watch it out in my neighborhood where the houses are selling because people want to flee the cities for the suburbs right now. every community will be different but people often want to come see the house one on one anyway so it seems to me like agents are able to schedule the visits and keep things somewhat going like normal even if they don't have big open house group even even events. >> reporter: right if the house is empty, they let you tour the home by yourself and especially why new construction is so enticing right now. not only brand new, clean but tour it by yourself without an agent and anybody else around and i think the builders are the

ben nic beneficiaries here. >> thank you good point. 23 and me and therest of the home dna testing industry are riding out a period of slow sales right now but the unusual ceo still has big plans for her business scott wapner spent time with the ceo to find out what she's thinking >> reporter: soon after 23 and me's launch in 2006, it was charging $1,000 for a test kit that would reveal a customer's ancestry and odds of getting certain illnesses. but from the start, wojiski had a bigger vision, the belief by gathering and analyzing the genetic data 23 and me could actually change the direction of health care. >> the way i see it is like this is an opportunity for the consumer to take back like control of your own health we give you something about you in black and white that inspires you to drive change.

>> you can find out more about the company's plans and the controversy swirling around the industry in "dna testing: the promise and the peril" tonight at 10:00 eastern and pacific. coming up here on "the exchange," tensions of u.s. and china bubbling back up amid the pandemic and the government said china is a cyber threat to u.s. pharma companies we'll speak with the doj of this threat. plus tesla suing and threatening california why and when's at stake in this latest back and forth. "the exchange" is back right after this at&t knows you have a lot of things on your mind. staying connected shouldn't be one of them. that's why we're offering contactless delivery and set-up on all devices. and for those experiencing financial hardship due to this crisis,

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welcome back let's get to dom chu now for a look at the markets and some of the biggest movers with the dow now turning positive. >> there's a bit of a turn around at least being attempted right now at the lows of the day

the dow down around 261 points s&p lower by 26. the key sectors in focus are health care, technology and consumer discretionary they're the real outperformers on the downside you have energy, financials and materials underperformers there. stocks to watch include cardinal health higher right now after the drug and medical equipment distributor posted result that is bette expectations for profited and revenues and helped by increase demand for supplies. shares of under armour hit they reported disappointing financial results as the pandemic shut stores and slowed sales. it will embark on a cost cutting campaign and autonation shares higher by nearly 5%. it saw some sales trends improve throughout the month of april so the stocks on the move back over to you. >> we appreciate it.

let's turn to the rhetoric of u.s. and china heating up here's secretary of state mike pompeo explaining why china's attempts to cover up details of the virus led to elevated tensions >> authoritarian regimes go to ground they cover they deceive they put out disinformation, deny the people individual liberties. we have dealt with commune itself regimes before. we are seeing it now again and president trump is working diligently to make sure we secure freedom for the american people and do the things to do with respect to china to make sure that this next century is one where america can continue to thrive. now the department of justice warning that china poses a serious cyber threat to pharma companies. eam eam eam eamon javers here. >> reporter: as you say i'm with

the assistant attorney general for national security. thank you so much for joining us. >> thank you. >> as the assistant fnlg for national security, you deal with the tough stuff, terrorism, espionage and the rest right now there are a number of reports in the media that the united states is getting set to accuse the chinese of trying to hack into cust pharmaceutical companies to get some of that data surrounding all the efforts to develop a coronavirus vaccine. what can you tell us about what you're seeing of that chinese effort. >> without confirming that exactly, bio medical research long at the heart of something the chinese have wanted and something they have engaged in economic espionage to get. it is at the heart of the remaining china 2025 plan and a big priority of theirs and charged a number of cases over the years including this year in boston all of which involve the chinese government, intelligence services and individuals in

china. it would be crazy to think that right now the chinese were not behind some of the cyber activity that we are seeing targeting u.s. pharmaceutical xa companies and targeting research institutes around the country doing research, treatments and vaccines. >> so the fbi told me last week they're working directly with the farm suit call companies involved here. what is your message to the companies and ceos they're not necessarily set up for this what are you telling them? >> so the message to the companies consistent with what we say all the time across the industries know where your people are both physically, are the people who are in the labs supposed to be in the labs and then, in cyberspace or on your i.t. systems, do you know who's accessing data, if they're an insider, do they have the right to that information or not? and then making shuure your

defenses of insider threat integrated in the company. the number one predictor we have on the insider side is people who are where they shouldn't be, whether that means physically or on the i.t. systems. >> mr. demers, it is kel kelly . what you have said is urgent around the situation that you say pretty explicitly, the chinese will try to steal your data if you're working on the vaccines and treatments, that this data is today's equivalent of the holy grail, its commercial value is tremendous and geopolitical value is tremendous and companies need to watch for threats but is there more to expect the doj and federal government to do to try to secure this data and are only pharma companies vulnerable to this type of hacking >> it is any company or research institute doing research in this

area of coronavirus vaccines and treatments as you said, this is the holy grail of bio medical research right now. tremendous value if there are any issues, look, the federal bureau of investigations is working with them now to help exchange intelligence, to exchange security tips depending on the different systems. the department of homeland security is also involved so there's more the federal government's doing here to try to work with those companies and other institutes that are involved to help them protect themselves >> john, wouldn't be united states simply want the chinese to get this data anyway? the devil's advocate question is, wouldn't we ultimately be in a position to give the data to the chinese coming up with a vaccine before they do >> what the companies are going to do with the data once they develop a vaccine, i'm sure selling it around the world but

no company wants to have their intellectual property stolen even if ultimately they share their product widely around the world. >> and the dramatic news we saw last week, the department of justice dropped the charges on michael flynn. there's some real concern of that, part of a number of people around the country i wonder what your perspective is as a person that oversees terrorism and espionage cases. are you concerned of a precedent to make it more likely people interviewed by the fbi will lie? >> i don't have any comment on that. >> no comment on that. okay kelly, we'll toss it back over to you thank you, john. >> thank you. >> eamon, we thank you and especially thank john demers to bring attention to this. not just pharmaceutical companies but anybody working on this information needs to be sure it's not stolen. cnbc gathering health care leaders at the center of the

coronavirus fight tomorrow the guests run from the ceos to so many more the head of the cdc and so forth. learn more at cnbc events.com/healthyreturns. amid a meat shortage, pork exports to china soaring we'll tell you why. no doubt the hotel industry is suffering it will be a long road back to normal we'll ask the parent company of choice hotels about the ability to lure back travelers woman: my reputation was trashed online.

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welcome back to "the exchange." as the department of justice examines meat processers and amid meat shortage here in the u.s. the pork exports to china are soaring. we have a look at why this is all happening. good to see you. >> great do see you. such a conundrum and as

restaurants reopen this week the increased demand for meat could put pressure on already rising meat prices caused by plant interruptions. look at this map it shows all the major pork processing plants across the country. among the top producers talking about smithfield, tyson and jbs, nearly two dozen plants at under capacity, a couple shut down completely due to the coronavirus outbreaks. people have died as a result of some of these outbreaks as well at the plants. pork exports to china soaring, weekly sales to china last week the highest they have been in a year industry experts like david maloney says those exports are higher because china takes whole hogs, they don't require as much processing and, therefore, aren't as affected by those plant delays christine mccrackin says pork prices had been depressed before the pandemic and that prompted china to start buying more pork but now pork prices are on the

rise and mccrackin believes that the higher prices reduce demand from china as early as this week and help to normalize prices and tyson expects all the plants operational by tomorrow. >> so a baby girl, right i didn't see you last week i'm looking at you is that an emmy over your shoulder i have so many questions. >> there's -- okay there's a big story behind that because i had been nominated in local news i can't tell you, i think ten times and never won. i was a susan lucci and finally won and going to be milking this and i had a baby girl in november congratulations to you. >> you didn't name her emmy did you? >> i would have but close. anya. >> you look great, congrats. >> thank you. tlet's talk tesla coming up

they're suing the state of california saying it's time to open up and the 20,000 employees, will california be forced to give to in tesla we will have the latest on this dispute after this quick break this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

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welcome back elon musk raising the stakes over the weekend in the ongoing battle to open the tesla factory in fremont, california now suing and threatening to move the plant altogether. treasury secretary mnuchin weighed in on the feud earlier today. >> 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 as he threatened to move the production to a different state. >> and joining me now with the latest is phil lebeau. surprised to hear the secretary takes a stand on that one, phil, but i also didn't realize that tesla is the biggest employer in the state. >> elon musk to a certain extent sitting in the cat bird seat here there are dozens of states dying do have a tesla final assembly plant in their state and if musk continues to get frustrated with the state of california, specifically with alameda county, anything is possible down the road. looking at shares of tesla keep in mind that they have filed a federal lawsuit against the county health department basically to force them to say, okay, you're ready to go, open up and start production. over the weekend musk was tweeting about this saying in one tweet the unelected and ignorant interim health officer of alameda is act contrary to

the governor just a refresher, the tesla fremont plant has been closed since march 26th the county says we are working with working with tesla that's not fast enough for elon musk he wants the plant back up and running. a number of automakers around the country. you have toyota and honda prestarting production today bmw in south carolina has started and next monday you'll see the big three begin their final assembly plants again. i'm not sure that anybody fully appreciates exactly how important this is to tesla remember, it has a plant in china but most of their production still comes from the freemont plant it's been shut down since march 26th that's at the heart of the frustration. >> i know these plants aren't easy to move nothing he does would surprise me, including naming his

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find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. . welcome back as states across the country start to rope, the travel industry is wondering when americans will start vacationing again and what exactly that will look like. we have more on what the path forward will look like >> kelly across the nation dried up at the height of the epidemic

with a closely watched revenue metric declining 90% in april. as beaches reopen, more americans are starting to leave their house. the ritz carlton in santa barbara saw occupancy reach 50s. marri marriott cfo says a broader recover rests on a vaccine and a lot of the airlines. hotel occupancy in china going from 10 to 30% europe expecting to take longest to recover it's driven heavily by vacationers and older demographic that may be willing to travel. >> we appreciate it. thank you. hotel stocks have been under pressure for a few months now.

one hotel chain that's out performing peers is choice hotels with 90% of locations in the u.s. continuing to operate for more on the path forward, i'm joined by the ceo of choice hotels welcome back >> thank you for having me >> the first question is how do you keep 97% of your hotels operating? >> 90% of them are owned by small business owners. we operate in the mid scale and the extending stay segment owners are able to flex their payroll costs depending on the seasonality of demand. we're that i believe to close out entire hotel floors if they need to. these owners are very flexible they have financed their assets with a low level of debt their debt service in many cases is not so overwhelming they can't get through really tough time like this >> i assume you're too big but maybe you're not

are they getting ppp support >> about 70% of our hotels have been able to access the ppp or the eidl disaster relief loans from the sba i had the opportunity to go to the white house with a lot of my industry colleagues about a month and a half ago and we were able to advocate for those changes to the small business loans that allowed more of our small business owners to be eligible and as a result of that we have seen a high number apply for the loans and getting funding. >> the restaurants, in particular, but there was a texas hotel who kind of caught everybody's ire. what would you say to the people who say why did you get a carve out so each individual location was treated differently and why is that fair >> i think you have to have to think about the hotel industry when this started, we were housing people from the nashville tornado. the hotel industry is a necessary functioning asset to have in any time of emergency. a lot of the people that are in

our hotels today are national guard or covid-19 responders hotel business, it provides place for shelter when people have to leave their homes. that's another reason why we're part of the critical infrastructure and why a lot of the state governments allowed hotels to stay open. >> that explains why the revenue is coming from you've allowed people to open for hospital over flow, health care workers, critical infrastructure workers once you have the hotels open for those folks, what happens. we spoke with the president of northwestern yumptsuniversity al of weeks ago they are looking to use hotel rooms for students to return and have social distance this fall would you be open to something like that? >> that's something we are looking at we have a lot of hotels in

college towns and wh students not being able to study abroad, you'll have a lot higher student population on campuses a number of universities are ab asking about the ability to rent out our hotels in the fall >> no sdtudy abroad. i hadn't considered that if they're not leaving you had to make some cut backs, suspended the dividend, 401(k) match, hiring freezes and many of the measures many other companies are taking what is the path forward how t how quickly do you expect hotel demand to return to anything like normal? >> we entered with a low level of debt. as a company we have been a prun

prudent allocator of capital we were able to not impact our cost structure until we had a good idea of what was happening. we probably had an additional 30 days worth of industry insights before we has to take significant cost measures. i think what we'll see is a return to travel that will be regional and sporadic. it's what we're seeing today the southeast part of the country where a lot of the hotels are located did rebound sooner we're seeing as more travelers are able to get out. two-thirds of our business is leisure travel we do expect leisure travel to return before business what would you tell me about the cleaning procedures now. the hotel, partition between yourself and the desk. hand sanitizers in the elevators. there will be captain or person

designated at each hotel to make sure those heightened protocols are being followed the extra partitions we're moving to where we will do touchless check in and the ability to opt out of housekeeping if you don't want a housekeeper in your room while you're staying there, you can opt to do that as well >> pat, so many fascinating tidbits. thank you for joining me today >> thanks, kelly that does it for the exchange. over to tyler for "power lunch." welcome. we'll see you back in a moment "power lunch" starts now welcome once again to the kitchen. stocks are mixed as america works toward reopening the economy. the dow briefly turned positive but is well off the lows of the day either way the nasdaq is leading the way as it has been for so many days