enthusiasm it's about what elon musk can do and these fights he's having with california are an example of how he doesn't let anything get in the way >> all right tim, thank you very much musk himself suggested the stock was richly priced. steve wesley, thank you as well. that does it for this edition of "power lunch." great to be with you today >> matt got caught on camera i don't know if he was going to the fridge the it was the top of the show you let him know >> he'll be happy to hear that >> we continue into the last hour >> thank you tyler and kelly welcome. i'm sara eisen with wilfred frost. stocks have turned positive for the day. the s&p up a half percent, 59 minutes left of trading. let's see what's driving the action worries over a second wave of coronavirus infections and economies that had begun to reopen like germany, south korea and multiple u.s. states but big tech and health care are once again outperforming the nasdaq now within 7% of its

all-time high. another federal reserve official says he sees growth returning in the second half of 2020 and no need for negative interest rates. >> with lots to come on today's show, we'll speak with mylan's ceo. we'll discuss the company's outlook for the rest of the year and whether it's seeing a trend of customers stockpiling medicines. and the ceo of ortho clinical diagnostics will join us at the moment we are up 0.4% on the s&p 500. before we continue, just got to comment, new braackdrop, i love it did you do this by yourself? >> no, i had some help by the amazing technical staff at cnbc. i think people were sick of looking at my old school parking meter. >> it's a great balance between home and work. >> cnbc, always with me. >> exactly

the s&p 500 is up about 0.4% nasdaq up 1.25, dow is flat. let's get to the markets as stocks are climbing back from sizable losses at the open all four indices just turned green. mike santoli joins us with more on today's action. hi, mike >> in fact, kind of an extreme example of what we've been seeing in recent weeks, the market firm, sideways around the recent highs or a little less than 1% from those highs of a couple weeks ago but lifted that way by those big growth stocks the nasdaq up and the s&p 500 at 2,940. it's been going sideways for a couple weeks, but you have to imagine if you are underinvested or bearish, it's nerve racking to see the market hang in there day after day, even if it's uneven below the surface wanted to look at some relationships, corporate bonds have been a big part of the story. looking back to april 9th, when

the fed said they would become buyers of high-yield debt, after the high yield and investment grade etfs popped on that day, look what's happened compared to the s&p 500 since then you've seen the value of the corporate bond etfs go down. it's not because treasury yields are going up they have been steady. it is about spreads softening up, widening out perhaps because the fed hasn't done any buying or perhaps because they had such a big spike. i would categorize this as a soft divergence or noncon formation of this latest phase of the equity rally. doesn't undermine what's going on in the stock market but it's something to keep an eye on. >> mike santoli, thank you very much for that. we'll see you shortly. some investors say the market could see a u-shaped recovery but our next guest continues to bet on a v-shaped recovery

joining us by phone to discuss how he's investing in the market is mike wilson from morgan stanley. good to hear you as always thanks for joining us. i guess let's kick off with that headline point of view you kind of started to call the bottom quite well in march you are still optimistic that the recent sharp rally can continue >> thanks, wilf. good to be with you. nobody knows what the recovery will look like exactly but when we look at history, there really are not that many examples of a u-shipped recover coming off a recession, particularly when this steep the comparisons are just so easy when you combine that with the fact that the policy response has been unprecedented, it's hard for us not to see v-shaped recovery that doesn't mean we can't have a relapse next year, a slowdown. but for now it looks like it will be a powerful recovery into the fall from a wait of change standpoint that's why the market rallied so much we would not rule out

consolidation in here. we think that pullbacks will end up being shallower than people want or need to mike's point a minute ago, people probably are not positioned as bullishly as they would like to be and that creates anxiety. >> what about the view that even as activity comes back it will be slow. restaurants are only allowed to open at 20% to 30% of capacity movie theaters are in the last phase of growth. people are afraid in some places to go out to these things. in some cases we'll see permanent changes. how do you have a v-shaped recovery with all of those ifs and buts >> once again, it's more about the rate of change we're coming from such a low level, if you have any kind of recovery, it will be positive. also contrast the services industry with what will happen in manufacturing we're seeing that example in china. the manufacturing operations are

back to full speed quickly to your point, services and restaurants and things like that will be slower to come back. but there are parts of the economy that will come roaring back because they've been underproducing a good example is the auto industry, they haven't been producing anything demand is coming back quickly. we're hearing anecdotes about demand picking up. i think some folks were talking about that today in earnings reports. that makes sense there shouldn't have to be a ramp up of production to catch up from being shut down completely it will be a mixed bag once again the rate of change should look strong >> your latest note out today opens with this sentence most investors are now in our camp that the march lows will likely hold. does that itself worry you that this idea that the bottom is already in is such a broad consensus view >> that's a fair question. does it bother me? everything bothers me every day

of the week. i mean, the reality is that i think, you know, taking off the retest of -- taking that off the table is different than saying i'm fully bullish. that's where we are now. people don't think the retest will happen now but there's a lot of skepticism about the rate of recovery, all the things we're talking about now and it's hard to get bullish at these levels they're no longer thinking retest but sentiment is neutral at best. >> mike santoli, what do you think about this argument that the rate of change could see a v-shaped recovery and that's what the market is teeing off of santoli? we lost him. wanted to get his take, mike

wilson my next question is on another comment in today's note about inflation as the back drcbackdr more and more economists are worried about deflation with the double digit unemployment, wages falling off of a cliff we're seeing inflation at the grocery store, but as far as the economy deep in recession, usually deflation is the issue >> it's hard to imagine inflation when we're having a deflationary shock once again, markets are forward looking. we don't expect that to be appearing in the headlines any time soon. but there was a good report today going through a lot of different things setting up in a way that's different than what we've seen for the last ten years. i won't go through all of them we are seeing much more coordination between fiscal policy this time with the monetary stimulus, which is different than the post-financial crisis era. so you have a willing partner to spend that money other trends along the line of

deglobalization, populist narratives, nationalist policies, multiple supply chains around the world to deal with pandemics. these are all in the intermediate term. so markets are discounting they'll start to think about this over the course of the next 6 to 12 months so portfolios need to be thinking about it, too what we're recommending is not a full-blown inflationary portfolio, but one that barbells it one that is in disinflationary assets that have been leading the market for the last ten years blended in with more cyclical stocks as a barbell and not just defensive plus growth stocks which have been working well the last five, six years. >> if we see significant inflation, would that not force rates to rise and hurt all equities regardless of which sector they're in? is it not a stronger argument for something like gold than trying to play the sectors

right? >> i think it's both gold has been trading quite well for a while now. even before the recession began, anticipating that the fed was doing more or was likely having to do more down the road if you think about how this is going to sort of evolve over time, we're starting with such low interest rates that rates can go up probably 200 basis points, and it's not going to be a gating factor necessarily on valuations historically when inflation is going from 1% inflation expectations to something like 2% or 3%, it can be quite positive for equity valuations it's when you get above 2.5%, 3%, even towards 4%, that's when it becomes a gating factor we've been trying to get inflation for ten years. i think if you start to get signs that inflation is building in a positive way, where there's pricing, wage growth that can help the broader economy, i think certain parts of the stock market will take that

constructively the parts of the market that underperformed for the last five, six, seven years >> mike santoli, i think you can hear us now. wanted your take on this idea of v-shaped recovery at least when it comes to the rate of change, that's what the market is teeing off of and potentially inflation and where investors should be positioning. how do you see it? >> i think a v because of the arithmetic of gdp and because of how sharp and deep this drop was makes all the sense. i don't know whether the second leg of the v really gets us back to the previous trajectory are we back to even soon in terms of the total gdp, in terms of the path of the economy back in january and february? that's unclear to me in terms of, yeah, the rapidness of the turn about for the better, it probably will look more like a v. i think the market is still wait and see on that.

it seems as if the market priced in a v, i think for all the reasons we talked about, i don't think right now that's the assumption that is built in to market prices just yet >> mike wilson, if you're wrong about the v-shape rebound and it's more like an "l," do you think the broader indices can still look better than you might expect the microsofts of this world >> first of all, we think an "l" is off the table an "l" basically means we're going into a depression. so, in that scenario, i mean, all stocks will do poorly from here i think more than likely a wshz happ "w" happens because the virus returns. in that environment i think you're right we'll see more of the same,

which is that the growth stocks -- rates probably stay low. the growth stocks probably continue to outperform defensive bond proxies probably re-emerge as leadership areas. because what you're talking about there is a double dip. we can't tell the future with 100% accuracy, we have to be open-minded to that. right now we don't see that. that's a real possibility. >> so you're saying biggest risk to the forecast is second wave to infection >> yeah, i don't know if it's an infection, but the relapse that the stimulus wears off a relapse of the virus could be part of that narrative, but it doesn't have to be the only reason why that happens. maybe the stimulus doesn't work, it's not enough or we're stuck in a secular stagnation era. that's not our view, but it's a possibility. >> mike wilson, always good talking to you for now the v-shaped recovery in the market does continue with

the s&pup 0.4% after the break, we'll talk to the ceo of mile ylan pharmaceut, they make hydroxychloroquine and other drugs, we'll talk about the upbeat earnings po arertnd whether people are stockpiling medications during the pandemic. this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪

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welcome back to "closing bell." under armour is sharply lower today though off the worst levels of the session. missing earnings estimates, reporting a loss of 34 cents, worse than expected. and revenues fell 23%, breaking that down footwear saw stronger double digit declines. the company warning this current quarter could have revenues down 50% to 60% as most of their stores are closed. i talked earlier with the ceo, this was a company struggling going into the pandemic, was in the middle of a turnaround, it was already in cost-cutting mode it has a new ceo in there, they were trying to get back to growth days under kevin plank, and was just missing it when it came to the consumer now with most of the stores closed, under armour finds itself well behind big competitors who have been in the

market and in this game for longer like nike and adidas. the stock is down 60%. they are growing fast with e-commerce but it doesn't make up a big enough chunk of their business to make up for lost sales in the stores. they're trying to grow their fitness apps, again unclear whether that's a needle mover for the entire sales picture we got an exclusive with ceo patrick frisk tomorrow on "squawk on the street" as they also deal with the fact that there's no sports now. this company positioned itself to go after the athlete in terms of sports wear and not get sucked into the fashion, the trendy kind of clothing that under armour -- or that adidas and nike went after. right now that's a tough place to be. >> makes nike's performance look starkly so much more impresses sieve, not up year to date, but not far from it. over the long-term, a massive out performance. we look forward to that interview tomorrow

some other individual movers, marriott shares falling on dismal first quarter results amid the shutdown. reporting adjusted earnings of 26 cents a share the hotel operator did say business was improving in china and stabilizing in the rest of the world. it's up 4.6% sorry, down 4.6% >> mylan beatings earnings estimates today this as consumers stocked up on medicine amid the coronavirus pandemic. the drugmaker reaffirming its 2020 guidance. mylan's ceo, heather bresch, joins us for an exclusive interview. welcome back to the show nice to have you here. >> hi, thank you for having me >> talk a little bit about the drugs that you're making right now and what's in demand and what's not as a result of the covid-19 crisis. >> so, as you know, obviously

this global pandemic has hit many aspects of the health care supply chain so, you know, we've seen demand in everything from important icu medications, anti-infectives aside from some of the drugs that have been talked about as potential treatments or cures for covid-19 so there's really across the board, especially from hospitalization, and then you have patients just very important, their day-to-day maintenance of disease management so, everything from cancer treatments to diabetic patients, you know, i think get weary when we're under conditions like we are right now. >> heather, you mentioned potential treatments for covid what is your latest take on hydroxychloroquine and whether it will eventually be seen as a good treatment for covid or the latest little bits of results we've seen suggested otherwise >> you know, i think importantly clinical trials, we do them for a reason it's because the science bears

out when you have enough statistically sampling of a population to know if something is working or not or importantly what the benefits or negatives are for a drug as you know, there's still important clinical trials happening. w.h.o., the solidarity trial that's testing multiple drugs. i think from our perspective it's still very much we need to let the science play out i think in the meantime i'm happy we were able to step in with medication and help the supply because as you know, there was a huge surge in demand as the drug was talked about and there was an important patient population, lupus and ra patients who needed this medicationwhile it was scarce. >> your point about needing to wait for the results of various scientific trials, were you surprised to hear the president speak so warmly about the drug

as a potential treatment ahead of those results >> i think we all want to be hopeful and want there to be a treatment. i will continue to say i think the importance of waiting for science to play out is just -- i think we've seen how important that is. we're living it. so when people get perhaps false hopes, or are trying to, you know, get ahead of what we know from a science perspective, usually that doesn't have great outcomes i'm hopeful that we have had a little bit of a taste of getting ahead of ourselves and that people will step back and we'll let the science play out i think there's many drugs that are being tested and hopefully will help at least people dealing with covid and have a more manageable way of dealing with the disease >> there's been a lot of focus as a result of this crisis and pandemic about the supply chains for medications and generics where are most of your drugs made is it realistic that we could

see increased production in the united states? >> look, one of the things that over the last decade that has been a huge benefit to us is the diversification of our supply chain. everything from the starting ingredients to finished dosage for manufacturing. we have over 40 facilities across multiple continents and countries, which has truly allowed us to not only have a globalized supply chain, but have facilities and being near patients that need the treatment. so as we think about as covid hit different areas of the world at different points in time, able to navigate and leverage the different aspect of our supply chain, really allowed us to have minimal disruption and i think just overall as an industry, the reality is that we have beyond a global economy and certainly when it comes to the availability of medicines.

many of the starting ingredients are, of course, have been for decades been made off-shore. over the years certainly our finished dosage form manufacturing has continued to move offshore. i think there's absolutely things that we should be doing, countries need to be doing as they think about strategic supply versus global needs i think it's important that we do some of that basic blocking and tackling to make sure that we have products when we need them at the end of the day, mylan's global platform has really positioned us to be able to continue to fill patients needs with these critical medicines during these unprecedented times. >> are you saying the u.s. government should be doing more to prepare for the second wave, which the doctors think is inevitably coming in the fall when it comes to sourcing eningredients, production or just supply of these critical

medications that we'll need to get us through >> i think as you think about any preparedness, having a list of critical medicines, stra tee strategically sourcing and stockpiling those medications are important. we've seen what it looks like when you don't have a supply chain or a stockpiling that has been consistently and sustainably supplied i know it sounds like basic blocking and tackling, but these things are incredibly important to be prepared so whether it's for the second wave of this that everyone is talking about that will hit in the fall, or just for whenever the next crisis happens, we know it's not a matter of if, it's when and that's not anything on this administration as a country we have never had some of this basic blocking and tackling that would set up a macro architecture that there's a good coordination of important

products 100, 150, 200 products that we know from hospitalization to maintenance medications to antibiotics that become incredibly important in times like this that you want that on a consistent basis, not just in the reaction we reacted to anthrax, we reacted to h1n1 -- >> is any country doing that >> i would say this, i think covid has illuminated and exposed the weaknesses for countries across the globe some countries perhaps have more domestic manufacturing than we have in the u.s., no country is capable of making all the medicines they need for their population so working with strategic alliances has never been more important to make sure you're having a stockpile that can concrete your population >> heather bresch, we hope the folks in d.c. are watching

today. thanks for joining us. >> thank you >> a quick programming note, don't miss cnbc's virtual healthy returns event tomorrow learn more and request an invitation to cnbc events and others by going to cnbc.com/healthyreturns. 33 minutes left of training. we're looking at gains for the s&p and the nasdaq tech outperforms again health care is doing well. the dow is down about 44 points, well off session lows. up next, the path forward for the automakers michigan relaxing some restrictions today as a high stakes fig bakhtres out in california over tesla's plans. more after the break

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what can you tell us exactly >> sure, he made it clear. he supports elon musk. why not. they want to see as much as america open up as quickly as possible including all the auto plants elon musk sued the alameda county health department, that happened over the weekend. tesla says we have protocols in place so we can safely reopen. ail alameda county said they're working with tesla, he said ibuk said i'm moving the headquarters

and i won't keep a plant in california if this is how you're treating one of your largest employers in the state there are reports that there was some limited production over the weekend. so, i'm not sure we'll see this fully resolved in court. i have a feeling it will get worked out before then >> phil, what's the california response >> good question when you call -- well, the state of california has said, look, we want the state to open up in a safe manner as possible. right now it's the health department that's front in center in making the final determination on when a plant can reopen or not. when you reach out to the health department they are inundated with so many reporters contacting them. they're not saying anything right now. >> going back to the broader point about auto sales, encouraging to see various automakers comment on quite an encouraging rebound in china the flip side, what was the

experience for u.s. auto sales going back to the '08/'09 crisis how long did it take to get back to the previous peak in terms of auto sales >> it took a while i would say that with the low point being in 2009, probably you couldn't say the auto industry was truly out of building back up until 2013. that's really when you could say, okay. we're back to more normal levels that is when you went from around 10 million vehicles back up to 14, 14.5 million we were at 17 million vehicles last year. post believe this year the u.s. will come in at 14 million, 14.5 million. >> we're just getting a headline here, phil tesla california plant may reopen as soon as next week according to governor newsom >> there you go. we'll see. elon -- does that change anything with him taking them to court? does he drop it or say that's not soon enough?

>> yeah, or is he pleased by this reaction? tesla shares are down about a quarter percent. thank you, phil lebeau >> you bet >> time for a coronavirus update with frank holland >> good afternoon. the white house is telling off staff in the west wing they must wear face coverings at all time in the building. the only exception is when they're working at their own desk, this after two positive virus tests last week. baseball stadiums around the country remain empty, but that would change on the field under a plan approved today by major league baseball owners the a.p. says each team would play around 82 games in the regular season, without fans, starting around the fourth of july the proposal goes to the players union. the uk government has given its okay for the premiere league to resume its season on june 1st. some teams reject the provision that they play at neutral stadiums talks are continuing with teams, players and the government

always, for more coronavirus coverage head to cnbc.com. wilf, what do you think? are you excited about premiere league >> i would be if i believe it. sadly that government approval is one step. there's a lot of issues to iron out amongst the different clubs. i'll believe it when i see it. i'd love it if i see it. german football, as you know, comes back this saturday, which will be a nice alternative for those who watch any football whatsoever still to come, we'll speak with former fdic share sheila bair about the government's relief program before we go to break, a check on bonds ten-year around 0.72%. back in a couple minutes california phones offers free specialized phones... like cordless phones,

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and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program call or visit washington kayla tausche has the details. earlier this afternoon senior administration officials briefing reporters on the status of testing in this country and the efforts by the federal government to help states ramp up that testing. these officials said that we're on pace for roughly 2 million tests to be administered each week, with those tests to be hitting 10 million administered in the united states this week the administration is also sending $11 billion that was appropriated through the most recent stimulus package directly to the states. these officials said there should be a breakdown made available later in the week.

but that they have distributed that based on burden and population to help some of these hard-hit populations like nursing homes ramp up their testing and try to limit this outbreak of course this news comes on a day when the white house is ramping up its own internal testing capabilities as multiple aides and staffers have tested positive for the coronavirus and we're learning from white house officials that there's a new policy that instructs any white house staffer to wear a mask on campus and inside the west wing unless they're sitting at their own desk >> i saw that. i wondered why wasn't that already happening? wasn't that the instruction to everyone else? >> there was a view among the upper echelons in the white house that it sent the wrong message to have people wearing masks. it was a sign that would scare people you've seen the president decline to wear a mask in many of his public appearances. the vice president even when he was visiting the mayo clinic did not wear a mask because they

have been test the regularly and have tested negative and have opted not to with the occurrence of so many positive tests in recent days out of an aabundance of caution they're now expected to wear masks within the west wing i asked about teleworking, many of these officials continue go into the office even as most of corporate america is working from home. there's the suggestion that if you can do your job from home, you should, though many of these jobs with classified information they can't >> sure. kayla tausche, thank you we have 20 minutes left before the closing bell here's where we stand in the market we're higher the s&p 500 is up by a quarter of a percent nasdaq is going for a sixth day in a row of gains. it's up 1% after the break, the public for more testing we'll talk to the ceo of ortho clinical diagnostics about his company's move to ramp up antibody testing in the u.s. at leaf blowers.

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ortho clinical diagnostics announced they're launching a second covid-19 antibody test. the test specifically looks for the antibody which appears in a patient's blood in the later phase of the infection and remains after recovery which may be a sign of immunity against future infection, though that's not been proven yet. the company, which has been owned by carlisle group since

2014, says it is working with quest labs joining us now is chris smith, ceo of ortho diagnostics this new antibody test, you say it demonstrates 100% specificity. what does that mean? >> well, thanks for having us today. it's great to be with you. just want to thank those health care workers, especially the ones on the front line and our teammates on the front line and in production to make sure we defeat this covid virus. it's really important as we look at getting the country back to work -- as everyone knows that's a top priority everywhere -- testing is key we're finding two things are important to testing the first is accuracy. you mentioned our test has 100% specificity. that's what is important it prevents false positives. we need to make sure when we test people for the antibodies as they build up immunity to make sure if they do test that

they do have immunity to covid, that that's accurate i've said good is not good enough it's important that we're the only test out on the market that's 100% specificity. that's key because it shows the accuracy the second category is around access how quickly can we test people the great thing about ortho and some other companies, you're starting to see the scale across the united states where you're doing several million tests per day. using ortho, we're in over 1,000 hospitals and labs we can run 4 million, 5 million tests a day. that's another thing, access of patients or the population to be teste tested >> if i'm a consumer, how do i know or how do i get your test if i call my doctor and say i want to be tested for antibodies to see if i'm immune, seems like there's so many choices, you can go to the doctor, the hospital,

labs we don't what test they're administering, could we ask for a certain one? >> you could depending on where you go to a clinic or a lab, they might have one or multiple tests at this point. we're now partnering with quest. so we can run our tests all across the country on quest labs we're continuing to work not only with local and regional hospitals but other large testing facilities cts is owned by the american red cross and they test about 70% of the u.s. population's blood for donors this will start to open new avenues for patients to get tested specifically with our test >> i guess so many brilliant private sector companies like yourselves in america that all worked to ramp up testing ability that allowed the u.s. to play catch up on its testing quicker than otherwise might have been possible compared to, say, a country like the uk,

where there is not the same level of private sector participation. on the flip side, however, is there an issue that there's so many different types of tests across america that we don't necessarily have a universal answer of where the outbreaks are, where we should be going back to work, where there is immunity >> yeah. i think initially there was a lot of noise or confusion in the market because the fda wanted to react quickly and allow tests to come in and be able to be used but initially there's only a notification process through the fda. now they put in place this emergency use authorization. it's important that you ensure that that company that utilized that through the fda the fda basically gives you a stamp of approval to release the tests. other countries were slow to move with that if you look back a couple weeks ago, some of the problems the uk had, they didn't have high accuracy levels. the issues were not whether these tests were there or not sensitive, it's whether they had this specificity, the concern

about preventing these false positives. i do believe now governments around the world are starting to see the quality in the tests as large manufacturers like ourselves and others are starting to come to market what you're seeing is that most cases, these are high through put tests that run on automated blood analyzers. so these are analyzers already in place now it's just about shipping the tests. you don't have to necessarily place the analyzer, you can just ship the test. i think you'll see this rise quickly. i come back to it will be about access i think the next step is ensuring that teammates, our work force, that works within any given company has the ability to get access to that test that's only starting >> i was going to say, thank you very much for joining us >> good to be here you guys have a great day. >> you, too. >> up next, we will bring you uninterrupted coverage of the final minutes of trading when we take you inside the market zone. stick with us.

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we're in the closing bellma mare zone mike santoli is here to break down the crucial moments of the day. we have jonathan golub on the phone as well. stocks well off session lows dow -- s&p 500 is higher by 0.2% the dow lower by 57 points paul tudor jones weighing in on the market this morning. >> there will be a shift in focus from liquidity issues, somewhere down the line to solvency issues, and if we start seeing -- if this -- if we don't find a vaccine or a cure, if we don't find a much better way of testing at scale for the population, so we can get back

to work, if we see bankruptcies and insolvencies, i think the market will have a much tougher time >> even talked about the word depression how are you looking at the market discounting the risk of second wave of infections, slower economic growth and continuing to climb? >> everybody is talking about this second wave that may come in the spring -- in the fall or in the summer. but, in fact, what i think we're getting is an extended first wave if you look at the projections on where this was going to go in terms of deaths and illness and the like, going back two, three weeks ago we were forecasting that we would have total deaths of 60,000 to 70,000. we're obviously through those numbers right now. and it looks like we're plateauing at a higher level than we thought that we would be

at i agree with the comments that were just made that we need to get this under control or this won't be just positive stock market sentiment driving things higher >> jonathan used the word plateauing, is that a fair word to use at the moment have we remained in a tight range over the last few weeks? >> in terms of the s&p 500, for an example, yeah, it looks like plateauing or consolidating or going sideways and digesting this move. i also think if you look at how the market is behaving internally, i think it's sort of trying to move towards safety from some of those unknowns, from some of the back-sliding on a credit basis, a lot of these industries seem vulnerable to a fits or start type of economy. it's big tech and biotech that are working well

and they only seem to get stronger it's a winner take most economy even more so now than before i do think we are plateauing, in a wait and see moment for the overall markets, but i don't think now, you know, the market action is really handicapping, you know, that we're clear of these issues that paul tudor jones was mentioning here. >> mike, let me say and clarify, when i was talking about plateauing, there is a separate market issue i'm talking about plateauing at about 2,000 deaths a day >> with the infection. >> as opposed to something which if you went back a few weeks ago, the models were saying that by this time of the month of may, that we would be pretty close to zero additional deaths in the u.s., and this thing would be squeezed down your point, i think, is right. the market will have real limited upside from here until we see the conditions are

getting a little bit better. it's a real challenge. we all want to get back to work. we can't the economy going, but before we knock these numbers down towards zero, it seems as if they're --we're talking about reopening perhaps with conditions not as advantageous as we hoped for. >> how about disney opening up in shanghai. julia boorstin talked with the ceo earlier and has details. >> bob chapek tells me that the company is encouraged by visitors eagerness to return to the shanghai park for its reopening, but he would not tell us -- no word on when the other parks will reopen. >> i look at this as a stair step.. stair step we're going to be conservative, prudent in how we open up.

right now the government has 30% cap of our typical capacity in terms of number of guests that we can put into shanghai disney. the plan is to go up 5,000 a week >> chapek telling me the company is focusing on being numbiblimbn how it opens its divisions disney is still facing so many uncertainties whether it's around the decline in advertising spending to consumer demand to go see movies in theaters you can find the whole interview on cnbc.com. back over to you >> thank you very much for that. jonathan, huge uncertainty as julia says for a company like disney yet the fact that anybody at all certainly hundreds and thousands albeit not at capacity went back to the shanghai park on its first day of opening is a small encouragement for how they could reopen in the u.s., not just

small things but also sporting events and attendance quicker than some may have factored in >> i think this is a great point. yes, this is about disney, but even more so, they're kind of the gold standard in terms of public venues, places where large numbers of people gather there's all kinds of low justical challenges that people will look to disney to see how they are handling it if they can do it safely, it's encouraging not only for disney stock and the stock of their competitors but it will tell us how we can move forward as a society. it's not in the united states, but a lot of people will be watching this. >> mike, what are you seeing in the market internals right now >> a lot weaker than the indexes would have you believe i was talking about the uneven action here. new york stock exchange, well more downside volume than upside volume all day it is the large mega caps that

have been carrying the indexes, supporting them. small caps are suffering a bit it's rotational, but it's in the favor of the recent winners. look at this other picture, amazon versus the equal weighted version of consumer discretionary. if you take those companies and weight them equally, vastly underperforming what amazon is doing. volatility index is constructive sort of bleeding lower again if you look at volatility futures, also showing a more normal shape to that curve it does seem like the market is suggesting it's in a more stable place right now. even in it the high 20s it typically is not what you would consider a normal level. >> about 40 seconds left until the close. we're higher by 10 basis points on the s&p down by a third of a percent on the dow. nasdaq up by 0.9%. we're well off the session lows, which came at the open, albeit just slipped in the last hour of

trade a fraction energy and financials the two worst performing sectors health care and tech lead the charts classic performance we've seeraf percent. at the close, dow 0.4% on the dow. up 0.8% on the nasdaq. >> welcome back. if you're just joining us, i'm sara eisen along with wilfred frost and mike santoli is with us look how we finished up the day on wall street dow lower. s&p and nasdaq higher. the nasdaq, check it out, on the side there, it's up almost a percent. sixth day in a row of gains. s&p 500 closing flat the dow closing down 100 points. the low of the session was down 261. the nasdaq closing above that 9,000 level. 9,192.

look to the big tech stocks that are powering it. microsoft, amazon, apple, all of those names have been up for six days in a row. the russell 2000 was lower today by 0.6%. just to see how stark the contrast is, the russell 2000 is down 20% so far for 2020 the nasdaq is actually positive for the year moments from now, president trump will hold a briefing on coronavirus testing. we'll bring you that live as soon as it begins. plus, we'll ask sheila bair why she reportedly turned down an offer to lead the congressional oversight commission monitoring how coronavirus relief funds are being used joining us by phone is jonathan golub. first, to you, mike, on what we're seeing -- you mentioned below the averages, didn't look positive the nasdaq continues to go up every single day

what will stop this trend? >> you know, it will get too stretched at some point. it is already looking overbought by a bunch of different measures i don't know that anything fundamental canstop it it can stop or shift in a couple of different ways the overall market could come in for a deeper pull back or we could see some of this rotational action and go in reverse and you start to see things like banks, value stocks pick up a bit of the slack they probably couldn't offset real weakness. overall s&p, it hit that late april high, above 1% of where we are now. so we're less than 1% below that level, 2,955 the average stock has slid back a little bit more than that. so, you know, it's sort of covering up a little bit of the digestion action hard to say what that means from here except it does seem as if it's been tough to get a lot of upside impetus once we crossed

above that 2,900 area. >> to that point, in terms of the spread we see between underperformers and strong performers, kbw banks index down about 40% year to date as we know, nasdaq is positive by 2%, 3%. how much further can that difference stretch >> i think that the key is this is not just about sentiment, it's about fundamentals. if you look at first quarter earnings, 70% of the market, which is these tech related companies as well as noncyclicals, more than half of them grew their earnings year over year in the first quarter those same groups, about a third of them will have higher earnings in the second quarter versus a year ago. if you compare that to the banks, compare that to the discretionary names that mike was talking about before or industrial names or energy names, the fundamentals are the story here yes the valuations are looking

stretched, but there's two markets. there's 70% of the market that's looking healthy. there's 30% of the market that's looking unhealthy. >> we are awaiting president trump to speak in the rose garden any moment now. kayla tausche has a preview of what to expect given that recent directive, can we expect the president to be wearing a face mask? >> unclear if the president will be wearing one but you can see in the rose garden right now, wilf, that multiple officials in the front rows of this briefing are wearing the face masks the secretary of hhs was seen wearing one a few moments ago. you'll remember a few weeks ago, the task force on coronavirus recalibrated these briefings so they would only be held when the white house felt like they had a specific policy to talk about. today it is testing. earlier today senior administration officials said they would be discussing goals for specific states, especially

with a heavy burden of coronavirus in dense populations to receive funding and ramp up testing. this week the u.s. is on pace to have administered 10 million coronavirus tests. that's more than triple what that was a month ago to be sure, the u.s. was slow to recall up testing, but it has done so in an exponential way in the last month that's what the white house will be talking about today and where that goes from here. how that $11 billion that's earmarked in congressional funding, wither that will go, how it will be decided, what the methodology is, and who will be on the receiving end of that all of that under discussion at the white house and likely to be a part of the discussion that we hear from officials on stage toda today. >> kayla tausche, thank you very much for that. we look forward to hearing from the president any moment now

due at the top of the hour, a little bit behind, but we expect him fairly soon. let's get to bob pisani for a look at the biggest market movers bob? >> flattish day for the s&p, but we're almost on the verge of breaking out nicely. 2,939 was the old high in the s&p a few weeks ago. we're knocking on the door of that we're heading in that direction intraday this mega cap rally is something to see every single day, microsoft, apple, amazon, alphabet, up 1%, 2% all of these stocks are 2%, 3%, 4% from 52-week highs in most cases historic highs the tone was very defensive today, outside of those mega cap names. pfizer, merck, united health, walmart, that's your market leadership that's defensive that's the way the day went. johnson & johnson is one of the other ones anything cyclical was on the weak side. all of the big industrial names,

caterpillar, boeing, ratheon, energy names like chevron, exxonmob exxonmobil i want to shout out the banks, because they're really having a problem. the bank index, 40% below its 52-week highs. wells fargo a nine-year low today. the only stock on the s&p 500 hitting a 52-week low. back to you. >> bob, thank you. let's of people have come on this air i'm not sure if you've been recommending the financials saying they look cheap, the dividends look safe. they're priced for worst case scenario doesn't look like we'll have negative interest rates if you listen to the fed, but they keep going lower. what do you do with this group. >> we're underweight the banks underweight the cyclicals. everything we were just hearing about that is struggling

we will continue to pile into the tech names, continue to pile into the health care names, consumer staples names until we start to see some greater clarity. we know there will be a pick up in loan losses we know the banks are likely to reserve for greater losses this earnings season until that's behind us. we want to play with the highest quality names in the group >> to bob pisani's point moments ago, wells fargo's under-performance was most pronounced last week today it does have the accolade of being at a low not seen since november of 2011 today it's fractionally outperforming the bank index >> why is it doing so much worse? >> last week was the most pronounced week since the selloff. the reason for the general selloff has been twofold it's more of a regional type,

the regionals have been suffering most because of their exposure higher to net interest income rates are low, and their exposure is more significant in terms of loans and fears of loan loss provisions, some fear wells fargo's small business exposure within corporate and credit card exposure within consumer last week unknown why that under-performance picked up. perhaps fear over its dividend or perhaps there's one big seller out there mike santoli, to that point, the regionals have suffered more than, say, the investment banks like goldman sachs and morgan stanley. today yields are picking up and banks are underwer forming >> i keep coming back to the idea that the incremental amount

the yield is going up is not that much. we are in a complete consumer credit meltdown at the moment or at least potential one mortgage servicing is under stress you're seeing the pure credit card companies trade awfully because we're going to see a big default cycle. you have those missed payments theme out there, who knows what it means for small business failures i think that's getting covered up by the fact -- sure, this stuff is not enough to take down the banks, the big banks, but it creates wear and tear on the balance sheets and earnings power. i think that's why they're stuck. >> jonathan, thanks for joining us today >> pleasure. >> still to come, we'll ask former fdic chair sheila bair were coronavirus relief funds are reaching the businesses that need it most

welcome back we're awaiting an address from the president in the rose garden about testing. also follows an announcement 10, 15 minutes ago that white house officials will be wearing face masks from now on. more face masks in the audience than is typical. that is due to start any minute now. we'll bring it to you when the president comes out. the congressional oversight

commission put together oversee funds of the c.a.r.e.s. act are still without a commission chair. one name put forward was sheila bair, she turned down the position saying current obligations would prevent me from accepting such a time-consuming post. sheila joins us now. thank you very much for joining us was that a preemptive tweet or after you were formally offered it and formally turned it down >> well, so, i started sewing these press reports. i thought they would go away, they didn't. so i thought i would make it clear that was not in something i was in position to do. i think it's a great job, i hope they get a good person to lead it it's important but given my other obligations, it would have been difficult for me to assume that role i wish them the best of luck >> so you weren't formally offered it

>> i don't comment on my communications with individuals in government, but it just was not really the thing i was in a position to accept and i just had too many obligations. i think it's going to be a time consuming job. it's not crafted as a full-time job in the legislation, but k b nonetheless to do it right it will consider a time commitment. i hope whoever they pick to lead it will have the ability to do so >> what does it take to do it right? >> to do it right, yes >> i'm wondering what do they have to look at? can you hear me, sheila? >> yeah. well, i think they're -- y shg can. they're supposed to be doing monthly reports. the job is to oversee the --

>> our apologies we have to interrupt there the president is beginning his address. >> unprecedented testing capacity developed by the united states, the most advanced and robust testing system anywhere in the world by far. this afternoon i'll also announce new steps that we're taking to make tests more widely available. to battle a virus my administration marshalled every resource at our nation's disposal, public, private, military, economic, scientific and industrial, all at your disposal we launched the largest manufacturing ramp up since the second world war, there's been nothing like it since. at the center of this industrial and scientific mobilization was the development of our coronavirus testing capabilities in the span of just a few shor mon h months, we've developed a testing capacity unrivalled anywhere in the world.

this is the core to a plan to safely and gradually reopen america. we're opening, we're starting, there's enthusiasm like i haven't seen for a long time every american should be proud of the amazing array of talent, skill and enterprise our nation brought to this challenge. in three months the fda authorized more than 92 different tests, and over 9 million have been performed here in the united states three weeks ago we were conducting roughly 150,000 tests per day. now we're doing approximately 300,000 tests per day, a 100% increase and it will go up substantially from that number this week the united states will pass 10 million tests conducted, nearly double the number of any other country. we're testing more people per capita than south korea, the united kingdom, japan, finland and many other countries and in some cases combined. on friday, the fda authorized

coronavirus antigen tests, alternative testing technologies that can be much more readily manufactured quidel corporation, which makes this point of care test estimates that it will be able to manufacture 150,000 tests per day immediately increasing to 300,000 tests per day within just a few weeks to further expand our nation's testing capabilities, this afternoon i'm announcing my administration -- we've got this all approved, it's all done, is sending $1 billion to america's states, territories and tribes, so this has all been approved. we got it done, completed, the money is going out this major investment will ebb sure that america continues to conduct more test than any other country on earth by far. i said from the beginning that the federal government would back up the states and help them

build their testing capability and capacities, and that's what's happened. this partnership has truly flourished we have really had a very good relationship with the states and the governors and other representatives within the states, a relationship like i think i can honestly say has not been seen in many country for many, many years the governors and us are working together very closely, not only on testing but on ventilators where we have capacity that's at this point virtually unlimited we're sending ventilators as you probably heard from other countries. we're sending many, many thousands of ventilators to other countries because they're in tremendous need i think building up a lot of goodwill, but more importantly we're saving lives most states are now doing a great job. my administration located 5,000 machines and 700 labs across all 50 states and governors have learned how to maximize these

testing resources. the federal government is also supporting states with vital supplies, quick approvals of new tests, and one-on-one coaching from the team here at the white house on how to increase capacity and increase it quickly. in recent weeks we held multiple conference calls with every state along with d.c. and puerto rico we developed testing projections and goals for each state for the month of may altogether totalling 12.9 million tests today i'm announcing that my administration will provide the collection supplies to help states meet their targets and meet them rapidly. during the month of may, fema and hhs will be delivering 12.9 million swabs to states nationwide we already have them the delivery will be quick we'll provide additional swabs

if any states are surpassing their goal we told the states to set those goals high my administration will provide 9 million transport media, which are used to transfer swabs to the lab processing, a complicated process, but we made it simple. as a result of these actions, every single state will be able to test more people per capita in may alone than south korea has tested in four months since the outbreak began this major commitment is possible because of the massive mobilization of meamerican industry, including u.s. cotton, abbott labs and thermo fisher. some of these incredible companies produced rapidly for us and their products are here with us this afternoon these are all different products that we're literally just developing if you can imagine that, these are the best machines and the best equipment anywhere in the world and other countries are calling us and we're trying to

work as much as we can, not only on ventilators but also with testing. my administration also continues our tireless effort to expand testing in the most underserved communities. through our partnership with the private sector, leading pharmacies and retailers are now operating over 240 testing sites across the country that's in addition to all of the other sites we have working. 70% of these sites are located in communities with unique vulnerabilities. there will be more than 300 sites by the end of this week and retailers are making plans to open up hundreds and hundreds of more locations within the next 30 days these additional sites are helping us ensure access to testing in every community my administration is fighting relentlessly to protect all citizens of every color and creed from this terrible virus the invisible enemy. in addition to vast amounts of testing supplies, my

administration has partnered with the private sector to coordinate the delivery of more than 90 million n95 masks, and these are of the highest quality. many are made right here in the united states. a capacity we didn't have at all in the beginning 126 million surgical masks, likewise many are made here. 9 million face shields 21 million surgical gowns, 993 million gloves 10,690 ventilators we're building thousands of ventilators in numerous plants all across our country it's incredible. this global pandemic has inflicted great pain and hardship on our people it should have never been allowed to happen. it should have been stopped at the source we mourn for every life the virus has claimed. we share the grief of all of you who lost a loved one that goes worldwide, too many countries, 184 countries at

least. thanks to the current of our citizens and our aggressive strategy, hundreds of thousands of lives have been saved we have saved and if you look at on a per 100,000 basis, we are at the best part of the pack right on the bottom. germany and us are leading the world. germ s germany and the united states are leading the world. in every generation, through every challenge and hardship and danger, america has risen to the task we have met the moment we have prevailed. americans do whatever it takes to find solutions, pioneer breakthroughs and harness the energies we need to achieve a total victory. day after day we're making tremendous strides with the dedication of our doctors and nurses, these are incredible people these are brave people these are warriors with the devotion of our manufacturing workers, food suppliers, lab technicians, with

the profound patriotism of the american people, we will defeat this horrible enemy. we will revive our economy, and we will transition into greatness. that's the phrase you'll hear a lot. the that's what is going to happen we're going into the third quarter, we'll do well in the fourth quarter we'll do very good. next year i think we'll have one of the best years we've ever had. there's a tremendous pent-up demand it's a demand -- i'm feeling it. i felt things a lot over my life, i've made a lot of good calls. it's a demand like i don't think i've seen. there's a pent up demand a spirit in this country like few have seen. i think you can say, we've helped a lot of the countries a lot. really a lot there's a tremendous spirit all over the world to beat this terrible, terrible thing we're transitioning to greatness, and the greatness is

going to be in the fourth quarter. but it's really going to be next year and it's going to be a year like we never had before i believe that as good as we've done -- and we've done great we had the best economy in the history of the world, not just here, but anywhere in the world. you can talk china you can talk any other country we had the best economy anywhere in the world we were going for numbers, whether it was unemployment numbers, we had our best numbers, employment also numbers. little different, we had our best numbers almost 160 million people, all of that we had the greatest stock market numbers ever. i think we had 142 days where we set records in a short period of time 152 days we set records in the stock market we rebuilt our military, all built in the united states all of our equipment built, 1.5

trill io trillion our opponents don't like to talk about the border they don't like to talk about it it seems we were right about many things. one of the things was the border with he have a powerful border now. we had one of the best weeks in the history of our border between the united states and mexico, our southern border. we had very few people coming in very, very few almost record low numbers. the wall is being built. it's up to 181 miles already it's being built and built rapidly. people don't talk about it anymore. it's very successful the area where the wall has been built, that's a lot, but we want up to 450 by a short period of time early next year we should be up to 450, shortly after that, 500 miles will be completed. but it's had a tremendous impact again, we've had the best numbers. the last thing we want now with

this pandemic is for people to come across -- >> president trump speaking from the white house, saying we have met this moment and we have prevailed. talking about the number of tests increasing in this country. saying we will pass 10 million tests conducted this week. saying he will spend billions of dollars to give to the states, territories and tribes to help them build up coronavirus testing capabilities he said he always supported the states, even though some of the states have said they had to fight each other to get some of these supplies, which will be a big talking point. let's bring in meg tirrell who has been listening here. what did you glean from the president? >> it's true testing has increased by a significant amount in the united states and new platforms are coming on, including the first antigen test just receiving the fda's emergency use authorization, and more platforms from companies like abbott as well. but testing is still a problem in the u.s

we're a large country. we consistently hear there are problems with the supply chain in terms of getting the materials needed for the testing. everybody who wants a test cannot get a test yet in the u.s. there's still lots of concerns about states reopening and the testing capacity available to them while progress has been made, i don't know anybody who would say this is a victory and a problem completely solved. >> he said we're sending $1 billion to the states, territories and tribes some reporters are saying it's actually $11 billion. we're more than two months into this crisis. how long have the states been asking for help? essentially since the beginning. we've been hearing stories like governors even importing tests from other countries in order to try to get the capacity they need certainly increased funds and i

do believe the number is $11 billion will be welcomed they were seeking help with the supply chain, with making sure that they could get the reagents, the swabs, everything they need. we heard a bit of that from the white house today. experts will be looking for more clarity on that and making sure these supply chains are straightened out and getting the materials to where they need to go in order to solve these issues of getting testing capacity where it's needed >> meg tirrell, thank you very much for that. we'll continue to monitor what the president is saying in the rose garden and bring you headlines when we have them. let's pivot back to former fdic chair, sheila bair, who has been waiting for us thanks for waiting we were talking about the congressional oversight commission just before >> sure. >> i wanted to talk more broadly about the ppp lending program and others do you feel like those programs are reaching and getting dollars to the companies and people who need it most

>> no, i don't i think they're falling short. the small business program, the ppp program got off to a strong start, perhaps too strong. it was heavily oversubscribed. there were some issues to the funds, publicly traded funds, people tried to use it inappropriate. it was a small percentage of the loans, but nonetheless there was a backlash and tightening of the standards. now legitimate small businesses are becoming worried because of the tough rhetoric around the investigations so further clarification from treasury would be great. i know they want small businesses to use this program, i think it's very important. it is frustrating. i think about 670 billion have been authorized for the ppp program. that really pales in comparison to the trillions being pumped

into financial markets that's probably needed and helpf helpful, too, but the disparities and the resources and the quickness with which we're able to get funding into financial markets and large corporations and financial institutions, not so much in our ability to get money down in the grassroots main street level, small businesses and households continue to struggle >> are you comparing it to the federal reserve? the fed would say it's going to a place it's never been before it will domain street lending. this time around it feels like jay powell and the fed are paying attention to the fact that they're open to criticism, they're helping wall street over main street and trying to make it clear that they got main street in mind this time >> yeah, i agree with that i think they have tried to go beyond wall street, big bank

bailouts that we had during the great financial crisis i applaud them for that. this is not a criticism of them, it's an observation. their whole infrastructure, what they do, they pump money into financial markets. that's what they do. they're not equipped to provide credit to small businesses that must rely on bank credit and medium sized companies also that are not really able to access the public debt markets for funding. i think they're trying, but they're unequipped to do it. that said, i do think they've put additional layers on the main street lending program that are not applying to the credit facilities that the large companies are using. there's a risk retention requirement of 5% for the lenders, restrictions on buybacks and dividends, which are appropriate, but they should apply to the large guys, too so there is unevenness in terms of the hoops borrowers need to

jump through to access these things i think they're trying i agree with that. this is new unchartered territory for them i think they're stumbling a bit. it's easier to pump money into wall street. >> we talked about the banks and their dividends last time you came on. there's been no change to their policies since then. from all the comments from the ceos who have come on our air, it's clear they won't cut them of their own volition. do you think the fed should force them to do so? >> i do. they have provided banks, large banks in particular with a lot of capital so they eased their minimum capital requirements already to expand their balance sheet capacity to lend, but the way they do that is they make the institution more fragile and allow the bank to lower its capital base a better way to expand lending capacity is to require they retain capital or some

combination of both. no, i don't think it's appropriate to provide this relief from capital rules and still let banks pay out dividends to shareholders. and i believe several banks, their first quarter dividend has exceeded their earnings. they're paying out more than 100% at a time when the economy really needs them. it's relying on them it's counting on them. i don't think that's the right thing to do for the fed. a compromise, a middle ground would be if banks want to continue to pay dividends, pay stock dividends, not cash dividends. preserve that cash pay the dividend in stock. it gives your shareholders optionality, they can hold on to the stock, if they need cash, they can sell it in the secondary market so you're not weakening your balance. >> sheila bair, thanks for joining us great to speak to you as always. still ahead, could elon musk's war of words with

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pnc bank welcome back let's look at how we finished the day on wall street the s&p was flat nasdaq leading the charge higher, up 0.8%. off the session lows which came at the open. the final hour of trade a bit soft the best performing sector, health care, up 1.7% the worst, financials and energy banks index down 3.7%. let's get over to mike santoli, looking at a possible path to recovery mike >> yeah. obviously a big unknown, wilf, in terms of what type of economic recovery we're headed for, when it will start, how steep and strong it will be. look at this long-term chart it looks at per capita gdp for

the u.s. the predominant line is the prevailing trend from most of the post-war period from 2009. fairly bit strong after what happened in 2009 so it was weaker in terms of growth following the global financial crisis there was a dunownshift that last vertical line down is the suggestions for per capita gdp based on the real time gdp tracking numbers when we recover will it go back to the post-2009 trajectory, something close to the prior one or something worse that's a question for down the road did want to look at within the market, the suggestion that the market is pricing in something good in terms of recovery, i don't think so in terms of the most affected areas of this economy. this is the s&p chart and the nasdaq 100 holding up well, but compared to regis, hair salons,

the airlines index, marriott, brinker, that's casual dining, they are all 40% plus down here and below the highs in many cases. so it shows you the market is separating out what we don't know about the recovery, if there's going to be a recovery in some areas, and the overall markets. i do think it remains an open question we'll have to grapple with this for a while. for the moment you can argue against the idea that the market in general has leapt to a position of saying it's going to be a great "v" recovery. >> what is the market cap of rgs hair salon etf >> regis is under 400 million. it used to actually be a good-sized company it was a roll up of supercuts. >> sorry an individual company. i thought you were saying an etf of hair so lalons. >> no,no elon musk can save billions

in taxes if tesla moves its hq out of california. robert frank has the story for us >> if elon musk moved tesla and his home to nevada or texas, he could save billions of dollars in taxes california has the highest income tax rate in the country at 13.3% texas and nevada have no income tax. musk hit the target for the first tranche of his new pay package. as a california resident he would pay 1$104 million on that first tranche. if he moved to texas or nevada, he would pay no state taxes. the numbers are bigger as he hits more targets on that compensation program if he gets all 12 tranches, he gets about $55 billion. moving from california to texas or nevada, he would save over $7 billion in taxes musk has not made public plans to move, but he is selling all

of his homes in california maybe a coincidence. >> 7 billion per annum >> no, $7 billion over the life of that multi-year compensation program. so the only sort of annual thing we can talk about now is his pay package that he just hit the tranche for, has not been awarded. but the package on that, the taxes would be 1$104 million then 11 subsequent tranches after that so this is over the life of that program. still a lot of money >> and the up-front cash cost to him of moving would be very significant to set up the new plan i guess despite the incentives it highlights what would be a massive blow if california had done enough to annoy him enough to make this change despite those over time incentives >> it was interesting he put his houses up for sale during the heat of this battle for california i suspect he said i don't want

so much stuff, i want freedom. he didn't link them together, but the timing was interesting as he was battling california over opening that plant, he said i give up. i'm selling all of my houses in california i think that makes it more interesting to think about what his life and taxes would be like since he has a family now if he moved to nevada or texas >> robert, thank you very much still to come, reopening real estate as states start to kickback into gear we'll take a look inside what's motivating buyers when we come back

breaking news on united airlines phil lebeau?

>> scott kirby who will become ceo effective next week at the annual meeting has named brett hart, the current coo, he will move up into the role of president, so becoming the number two at united airlines. that's one piece of breaking news, the other is tesla and elon musk tweeting out a few minutes ago -- there's an ongoing battle between tesla and the alameda county health production on whether they can restart production he tweets out tesla is restarting production today against alameda county rules if anyone is arrested, i ask that it only be me it will be an interesting afternoon out in fremont, california depending on what happens with the local authorities there. guys, back to you. >> phil lebeau, thank you. just want to share with you some news that just crossed the wire that we can have some insight into

blackrock is announcing a secondary share offering where pnc will exit its stake completely that makes up about 22% of blackrock's share. pnc holding that much of blackrock stake and through a secondary it will be exiting that investment. i spoke with a person familiar with the matter of why that's potentially a big deal for both companies reason number one is for pnc to have dry powder, so it can make acquisitions i thought you would be interested in that they see this landscape now as ripe for financial m&a and so they are just, reason number one, to return capital so they can make an acquisition in we see an economic recovery here they are not doing this because there's issues with blackrock, according to a person familiar with the matter. they're not doing this because of issues with pnc's credit book, according to people

familiar with the matter they bought this stake for 2$240 million in 1995 this offering should go across in a couple days we'll see what the return is going to be. obviously a big return for pnc to in the words of the people i spoke to to be used to make acquisitions pnc trading higher in the after hours. it will get a lot of money back. >> right this is fascinating stuff. particularly your insights as to what they're saying the rational for it is. either way, clearly any bank that significantly enhances the strength of their balance sheet at this time in a relatively inexpensive way is going to see appreciation via the market. we were talking about that with sheila bair. it's up about 5% after hours if you look at the blackrock stock, it's around 500 the high in early 2018 was just under 600. so blackrock has enjoyed quite a nice bounce.

that's my point in terms of saying this is not as expensive a way of raising capital like a bank raising equity. so in that sense, they have a pretty relatively inexpensive way to raise capital as for possible acquisitions, over the last five years, there's always some kind of factor that comes around to ask the question will we see the much anticipated consolidation in the u.s. banking industry that people always say could happen we saw that sun trust merger with -- >> bb & t. >> they created truist >> and the question always is will there be more will it be at the smaller end of the spectrum or the bigger end of the spectrum? pnc the sixth biggest lender in the country. so if they're going to buy another bank, there will be regulatory hurdles, but now might be the time if they can

raise capital cheaply, very cheaply, and find a cheap bank out there to buy, we'll see. mike santoli, big move in pnc after hours. the direction of those moves is one that you might expect. >> for sure. you have to recognize pnc didn't always get full credit in its market value for this minority stake in blackrock it was always considered to be a great asset. a windfall over time, but not something that was strategic, so therefore, as you say, a good source of raising cash it also reminds me not to say that pnc or any other banks are in a distressed position sun trust before sold its stake in coca-cola, something which it had held for 90 plus years so in some times it might make sense that they might redeem

this >> i want to add one point, you mentioned potential regulation here i was told that part of the impetus for this deal -- number one was on the m&a and to raise capital so they can -- i'm also told that they don't have a is works as far of your potential deal for pnc, they had restraints from owning this much of black rock and these constraints disappear as a result of this sale another benefit there from pnc doing this now and could help with any acquisition they plan to make once they are able to raise this money >> i'm sure that certainly applies. in terms of just an outright acquisition of another bank or outright equals if you will, that would start to create a pretty large institution, in the current environment, all things considered it might be possible. usb is the fifth biggest, pnc is

the sixth biggest. you're pushing up the limits maybe it's possible, maybe it's for something different. there's no target in mind. the other point just to note, though i don't think they were in a particularly stressed environment. of course when they are broad questions out there about the industry, of course to say, oh, it's for m & a as opposed to -- because we have a stressed balance sheet. you wouldn't expect them to admit that, i don't think that's the case either way. it's a big amount of capital they'll be raising >> yeah, and a person familiar made a point, it's not about the credit book of pnc i know you wanted to talk about this we'll continue to monitor the share prices, pnc up sharonly after hours. tomorrow, dr. fauci set to appear before the senate committee tonhe coronavirus what you'll be watching for right after this break

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the once booming home dna testing industry is grappling with a growing number of concerns expressed by customers and critics. the 23 and me ceo says she's not afraid of controversy. >> 23 and me says it's sold more than 10 million kits with the price of the ones that include both health and ancestry tests now down to $200 kit sales don't result in big money. that's coming from dials with drug companies that want access

to the data of willing customers. 23 and me plans to profit by using the data itself in its own drug development process >> we made a strategic decision to get into drug development in part because i think we have an edge i think we have an edge of doing -- of developing drugs in a way that could be more effective. because we're starting with human genetic information. >> to find out if the company is having any success coming up with new drugs be sure to watch dna testing, the promise and the peril. it's a brand new documentary that airs tonight at 10:00 eastern and pacific. i was reading up on this a little bit some of these companies are helping out right now, trying to figure out if there's anything that can tell us in our genes, in our dna as to why some people are asymptomatic with this horrific disease and other people end up dying from it, and

have such terrible scary symptoms it is one of the big mysteries >> absolutely. i have to say, my interest in watching this tonight stems from, i never quite understood the enormous demand in these types of products in the first place, it's something i would never personally do. i'm not sure i even seek the answers they offer i have a fear of that privacy aspect and that dna. >> people like to know where they came from i don't know, i haven't done it either >> i came from where i was born, simple as that it's going to be a great documentary, you don't want to miss it, tonight 10:00 p.m. on cnbc dr. fauci is set to testify before the senate finance committee tomorrow >> dr. fauci is among four health care leaders, head of the testing effort in the u.s. we were just hearing from. who are due to testify tomorrow morning in a senate health

committee hearing titled covid-19 safely getting back to work and back to school. a bit of an ironic title as all four of those gentlemen, the chair of the committee are going to be testifying virtually as three people dr. fauci, dr. hahn from the fda and dr. redfield are all under some form of quarantine after coming into contact with somebody who tested positive for covid-19 lamar alexander going to be participating remotely as one of his staffers, his office said over the weekend tested positive a lot of people looking forward to hearing, especially from dr. fauci as he's always very plane spoken and answers questions directly, we'll remember back in march, when he said the u.s. testing system not being prepared for this moment was a failing. we don't know exactly what he's going to say tomorrow, but everyone will be all ears much i reached out to one of his friends, an infectious diseases expert that says he thinks it

will be interesting. guys, back to you. >>. >> i remember when dr. fauci used to come on cnbc in january and february when this was only in china i wanted to ask you about this new vaccine. big surge today, what's the story here >> huge. so novo valve is among the dozens of companies working on a vaccine for covid-19 they got $384 million from a group known as sepi. funding of that size gives them a mark of confidence they are not yet in human clinical trials. they plan to start their first phase one trial in australia this month they expect to get the data by july and proceed to larger trials this funding will support the

trials and the manufacturing ramp up. so i will note the stock is up 50%. up more than 500% this year, it's an incredibly volatile stock. small company, but a vote of confidence from this funding group. >> we have a minute left in the show more of the same today, s&p 500 flat, but the equal weight down over a percent. >> more of the same in terms of recent weeks, even if you think about it, more of the same relative to before the crisis. it seems as though this whole episode has accentuated winner take all tech companies. now we have the extra kind of momentum in biotech and health care thrown into it. it doesn't necessarily tell you much about the future, but it tells you the momentum is getting pretty heated when it

comes to mega cap growth as it has several times in the last several months >> as far as earnings are concerned, my kbe is just, have we gotten any clearer picture especially from companies today like underarmor who got hammered by the markets what you do for a company that was hurting before the pandemic and has to close most of its stores >> that does it for us today melissa lee is coming up next. >> tonight's trader lineup dan adami and brian kelly coming up on fast the market bottom is in, he'll tell us where he's spotting the next big investment opportunity. something has happened that has only happened twice before what it is, and why it's a big deal chipping away at china, we'll tell you about a bold plan coming out of the white house. we begin