it is 4:00 in chicago and 5:00 at cnbc headquarters. will the tech rally loose some steam? we'll dive in. investors continue to focus on the efforts to restart the bulk of the u.s. economy, even as the number of cases continues to grow outrage at united airlines after a viral tweet of a jam packed booking elon musk ordered to keep

his freemont factory closed. and boeing ceo on the record about the future of his company and whether all carriers will ultimately survive it is tuesday, may 12, this is "worldwide exchange" here on cnbc good morning, good afternoon, good evening. welcome. i'm brian sullivan thank you for spending part of your tuesday with us a look at your money and markets. stocks coming off a mixed session yesterday, the dow down 109. the nasdaq higher again today. nasdaq 100, if you are counting at home is now just 4% from its all-time high. we are going to show you how

that stacks up against other global indices and we'll show you how the united states is still a haven. starting again with the global consumer we are getting more and more signs of the impact of the virus or the lockdowns we'll get shocking word from toyota >> in the asian markets, we did see a weaker session unfortunately closing down around a tenth of 1% toyota down closer to 2% after we did get positive profit numbers for the fiscal year. it was the forecast for this current fiscal year that rattled investors. saying their total profit was up

10.3% to 2.08 trillion japanese yen. saying the profit likely to be off 80% to 500 billion yen this would be the worst result since the 2011/2012 year which is the year the tsunami hit japan. it does say now, no shortage in cash reserves. we also heard from honda that stock down 3.5% full year profit lower by 3.5% take a look at china markets we had inflation market there. cpi rose by maller than expected 3.3% the forecast was 0%. continuing to accelerate we saw an obsession there in

2.6% that was a steeper fall in two years back to you. some of the worse numbers we have seen from the world's biggest automaker. getting back to the top story state side that is new tensions between washington and china overthe race to develop the ne vaccine. frank holland has that and more. >> fbi and homeland security prepared to issue a warning that china hackers and spies prepared to steal research. part of a resent surge looking for any advantage in the fight against the pandemic in california, tesla owner

elon musk saying he plans to restart operations in a tweet yesterday, he said, quote, tesla is starting production today against al media county rules i'll be on the line myself if anyone is arrested, i ask that it only be me and a bleak look at the airline industry an exclusive interview later this morning, he says he does not expect air travel to rebound by any successful measure by september. >> do you think there may be a major u.s. carrier that has to go out of business >> yes most likely. traffic levels will not be back to 100%. they won't even be back to 25. maybe towards the end of the year, we approach 50 there will have to be

adjustments made >> boeing share down they've lost about two-thirds of their value. >> used to be a $400 stock a tough ride there thank you, buddy today, may 12, 2020, an historic day for the american markets today, the federal reserve will step in and start buying corporate bond etfs directly marks direct participation in the u.s. equity market the fed will commit about $250 billion of its $750 billion program today. we may have another $500 billion to go. joining us to talk about this and your macro market set up is mark avalon. a historic day some say it is a sad day what do you make of the fed's actions? do you think this has been part of the rally we have seen the

last couple of weeks >> good morning, brian i think this is why the market has been up if they didn't follow through, it would be a big set back this is not a rally. this is all about the fed the bond market is setting the floor. on that side, we even saw it there. when they said they would start buying, not only bonds but also stocks so it is good they are following through today. >> it has been a lot of talk about the quote, reopening rally. it might have been to the tark et of companies reopening. that's not what we've seen

>> right that is a concern to me going forward there is a huge segment that is benefitting from this tragedy. the names we all know. the stay-at-home space, shop at home, everything cloud related there are millions of jobs that will be affected main street will be severely impacted that has trickle effects to the credit market and banks, to commercial real estate the core of the economic engine. when banks slow down that will slow down the economic growth and recovery for businesses that want to start back up. investors should pause here even if we have the best news to

restart to lender expectations that will take time it is very bifurcated now among the worst performing groups power use is down but hasn't exactly collapsed. winners that had been winners before the pandemic and maybe before the fed what is an investor to do? all cash that is a tough question first, you don't get out and change over your risk tolerance. other the other hand, this makes it so difficult even though we think there is trouble, they are

trading more reasonable. that broad diversification is the key. i would caution investors about the risk profile there is nothing wrong with not being greedy greed eventually faces fear for investors. that is the real thing right now. include tech they are going to continue to run. don't ignore and overweight just to nasdaq 100 frmt the market is too broad. >> the second half hour, marking so some sage advice when we come back, the one surprise industry seeing a massive surge in new orders and busines

busine busine business,plexiglass makers >> and baseball plans a return >> and orautge at united with a sold out flight and some people not in masks we are back after this feed a healthy lifestyle, with pure protein. high protein. low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. pure protein. the best combination to help you stay fit.

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the plexiglass makers. frank holland has more on this kind of sad side to the story. >> certainly a sign of the times. plexiglass production spiked in april. companies continue to battle against covid-19 in the work place. bank of america says it installed 6,800 what it calls wellness barriers and another 16,000 barriers. the need for the barriers made out of plexiglass, 5:0 rilic. the demand coming from construction and auto sek torz leading small business owners who normally supplies clear dividers to automakers

now producing a clear partition for a variety of needs >> we have sold about 30% of orders to medical related places doctors or dentist offices the general office environment that seems to be the steady stream of orders coming from the general office environment >> in april, spiking by 25% in europe responding to that high growth most of the production of plexiglass is outside of the u.s. if things continue, analysts say that could increase domestic production back to you. >> interesting stuff there thank you. coming up on deck, we are going to hear from world famous chef

and when he thinks his new york city restaurant may open and what the new york city restaurant scene may look like high prices for one well-loved asset class may continue to rise we are back with more "worldwide exchange" after this >> announcer: today's big number, $7 billion that's how much elon musk could save if tesla hits a series of targets and relocates to save o taxes.

welcome back i'll start you off with a live look at times square early quiet. even at this hour, things would be going it is truly a remarkable scene to see even now. last night's rise up new york raised $115 million for those in the big apple and around new york state that are in need.

officials layout plans to start up part of the state they do remain optimistic that the tide has turned in the fight. phillip mena has that story. >> good morning. for the first time since the pandemic began, parts of new york state are getting ready to reopen the governor says regions can partially reopen if they meet certain goals for capacity, testing and a drop in cases. new york city has not met that goal as many as 5,000 fatalities in the city may have been caused by coronavirus but not included in the official death tool. >> united airlines is tweaking policies after a picture of a packed plane went viral. it will advice customers when flights are 70% full so they can

rebu rebook or receive travel credit. major league owners have approved a tentative start to the season in early july shorter than usual with no fans in the stands. the plan will go before the players today. the player's association still needs to get on board with these plans before they can happen >> i think they have to move their families to arizona. everyone has to be quarantined and tested would be nice to have a little baseball >> hope you are well >> same to you still to come, you are probably working from home right now and why you may be working from home a little longer than planned. a new survey of cfos and a look at the future of the once vibrant new york city restaurant scene. more signs that hospitality does continue to get hit anymore than any other.

hyatt announcing it will let 1,300 people go and cut pay for salary in senior management and board members for all employees as part of the massive cost cutting. those changes will go into effect on june 1 you are watching "worldwide exchange." we are back after this so, no more tossing and turning... or trouble falling asleep. because only tempur-pedic uses proprietary tempur® material... that continuously adapts and responds to your body, to relieve pressure... so you get deep, uninterrupted sleep. all night. every night. the tempur-pedic summer of sleep starts now, with all tempur-pedic mattresses on sale, and savings up to $500 on adjustable sets.

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the many reliant on the few. the fed steps in and does something it has never done before the nation's top experts set to deliver a stark warning for americans over the drive to reopen we are live with a preview of what dr. fauci will tell congress amid that push to get back to business, new numbers on what a potential return to work could look like and why you could be working from home a lot longer than you think you are watching "worldwide exchange" here on cnbc welcome back and good tuesday morning. i'm brian sullivan here is how your money and the markets are looking. stock futures there in the red but not by a lot dow futures indicating the market could be lower coming off

a mixed session. really starting to see this b bifurcated look. it is the nasdaq 100 again now just over 4% from its all-time high. think about that, 4% from an all-time high amid the nationwide lockdown or partial lockdown let's look at how that ranks in the world. nasdaq 100 one of the top three markets. china is head of us in the pandemic the top two performing markets are the shenzhen and shanghai index. look at that, the nasdaq 100, third top performing index not up but it is down the least

ahead of denmark and slovakia. setting up on the idea that the united states is set up to recover. nasdaq 100 third pest performer. incredible stuff there european markets not on that list with the exception of denmark and slovakia karen tso in our london news room >> you can see the even split between the winners and losers stoxx 600 tracking up. heavy lifting from the likes of the uk market and italian stocks these have been some of the underperformers as of late as you look at the major indices, you can see the green

on the boardsing, slimmer gains through the territory. losses sliding by a quarter of 1% some bounces just over .7 of a percent. seeing negative news from thyssenkrupp warned that in the current quarter, lozs could tally up to 1 billion euros forcing the company to say it does not have a liquidity problem. proceeds expected from the elevator unit sale which inked just on the eve of this crisis to ryanair, the budget carrier on the boards you can see a spike of 3% in that stock. eyeing a return to the skies trying to residence respect 40% of flights scheduled by 1 july

versus a skeleton of 30 flights a day. passengers would have to wear fas masks and ask crew if they want to make a visit to the toilet and fill out a form of where you will stay and after the flight that you'll have to quarantine for two weeks, ryanair saying that is idiotic and uneven forcible. >> really, this is a hospitality- led recession so many questions you probably have around the state of business at your job and company. how fast are we going to recover? when will i go back to an office and will i be safe consulting firm pwc is looking for some answers with a survey of cfos. with he were on a call

yesterday. here are some of the key points. half of us, 51% of employees said they are nervous or afraid to go back to an office because they are worried that they might get sick you may not have to worry about that because more than 40% of cfos indicated that they would indeed maybe allow people to work from home longer than we thought. let's continue on with that. one other important factor came out of the call like, quote, when we'll get back to normal and how this will impact companies. recovery will not be quick nearly 60% of cfos say it will take at least three months to get back to business as usual and another 58 considering planned investments right now. here is why. 55% see sales falling more than 10% this year. this will impact jobs.

31% will see layoffs coming. a full 80% are considering more cost cutting measures. >> okay. 5:30 a lot of number there's in the morning. let's bottom line it there number one, we have months to go to get back to even a sniff of where we were before two, companies are tightening their belts on spending. three, yes, you may be working from home a lot longer than you had planned. many of you will say, that's a good thing because you are nervous to go back we always want to hear your opinion. if you work in your office, if you have heard from your company about when you are expected to be back in the office, when is that going to be a split on all answers we had some say may and june others say later in the year an equal number say maybe not

until 2021 a lot of those answers, i didn't look geographically will be split. in this area, i don't know of anybody in new york city that will go back soon. a friend yesterday at a big pharmaceutical company said all in-person meetings have been canceled for the remainor of the year getting to washington where the trump administration is ordering all white house officials to start wearing face coverings. amid a spike in out breaks the president insisting he does not need to wear a mask. as top experts prepare to testify at a high-profile hearing with a stark warning for the nation about rushing to reopen joining us with more on this

story, elon, good morning. >> dr. fauci is expected to layout a dire scenario when he testifies before the senate health committee in an email, he said his main message will be in the dangers involved in reopening too early. the white house has laid out a three-phased plan including a downward trajectory of cases in a statement he said, if we skip over the check points in the guidelines to reopen, we risk the danger to the country this will not only result in needless suffering and death and set us back on a quest to return to normal. the hearing is painfully clear that fauci and other officials will do so via video conference after that white house staffer did test positive for the coronavirus. the chairman of the committee is

also in quarantine because one of his staffers contract the the virus itself fauci's message does highlight one of the concerns. that is potential liability. this afternoon, holding a hearing at expanding protection for businesses i'm going to be watching to see if republicans are ready to draft legislation or whether democrats can find some common ground with the gop. >> the president refusing to wear a mask. at least i've never seen him wear one on camera how much of a flash point is this becoming inside the white house? >> i think the fact that you see fauci testifying at all is something that is significant. remember, the white house already blocked fauci from testifying before the house.

the president said democrats were haters and fauci should not testify. the fact that you see the administration's health officials taking the virus so seriously that they are going to be testifying, although remotely, is something they are hoping that frauauci will be so of a truth teller. the top democrat encouraged fauci to let it rip. it does sound like from the new york times that that's what fauci is going to do >> great to see you in the morning. we'll see you again, thank you speaking of d.c., as governments funnel more money into their economy, one winner of the pandemic economically has beengold the price of gold is up in 2020. this rally may just be getting

started. strategist at rbc. a pleasure to have you is it all the central bank fear of inflation driving buyers to gold or is there anything more fundamental at work here in this market >> a lot of what has seen gold rise to these levels has been this overarching sense of uncertainty. we have seen markets come back and break down that tend to be strong and negative. gold has gotten fire under its feet because of the uncertainty. the same time, we see investors move back to public markets, we are not doing it without knowledge of the risk. investors are not only laying in to these trades but also into gold allocations this has pushed through exchange

of product holdings to highs we see this around a number of measures this is not just negative rates but the economy as well driving investors to make allocations in this case what do you think that means >> if we are looking at the environment. gold is really the metal people do that through. the question is, is there uncertainty, are there economic questions or challenges, gold really benefits in most of these. it is really hard to rep kate the standard in the system gold really stands out

rates are gold positive. equities while they've increased. the relationship has broken down and we've gotten attention to this equities are one of those things people think gold will perform well what we are seeing now is that that is not necessarily the case when investors are looking for metals out there, gold stands out more than anything else. >> a pleasure to have you on coming up, one of the world's greatest chefs will speak out about the new york city restaurant scene. are you ready to go back to the mall simon property group plans to reopen about half malls in the next week. it owns 200 over the country

it is making a move in part because localities depend on sales tax so much. int will you go to the mall, thk about that "worldwide exchange" is back in a moment

welcome back the number of coronavirus cases in several u.s. cities continues to be on the rise.

nbc news has obtained some undisclose the data from the white house showing infection rates on the rise in places like nashville, kansas city and charlotte saw a jump of 70% or more these cities have seen an increase the entire time frank holland has that >> we are taking a closer look at how states fair when they lift their coronavirus restrictions this data is very new but we've already seen different trends emerge with the struggle to find the balance between safety and revive al. starting in iowa, it has seen 73% increase average of 475 cases per day as testing has increased in that state by 82% of those tested in mississippi,

16% have been tested positive. iowa was one of the few states never to issue stay-at-home orders as of may 1, restaurants, fitness centers could reopen since texas began reopening, seeing a 41% increase. an average of 1,013 per day as testing has increased in that state by 59% of those tested in texas, 8% have been positive at this time, restaurants, movie theaters can open 50% capacity barber shops and nail salons can open as long as they comply with the prot call. >> the number of cases in iowa coming down. the number of cases going up but the rate continues to fall one day, everything in new york city changed

all restaurants shut down overnight. 1 thens of thousands of hospitality workers lost their jobs many going hungry. city hunger teamed up to make sure people who need food can get it a part of that team, world famous chef, we had a chance to speak with him and ask him what it is like in new york city right now and if people were able to get the food they need >> well were in need of food who have low incomes or who have lost their jobs rely on food pantries, so harvest is essential for survival of those families or people who have no jobs

when you go midtown, it is basically dead nobody goes to work in the office streets are empty. the restaurants that do take outare closed midtown. it is a very different landscape than a couple of months ago. >> it sounds eerie and bizarre the last time i was there was midmarch take us to what happened every restaurant shut down abruptly that means they had food in the refrigerators. what happened to the majority of that food and where is the supply coming from now >> we were proactive we closed on march 13 before the governor and the mayor decided to close the restaurants that night, which was a friday,

at the end of the service, i gave some of the food to our employees. i gave the majority of the food to city harvest. city harvest basically rescue food and deliver to shelters throughout the city and organize mobil markets offering fresh vegetables and fruits and weekly feed about 10,000 families the rest of the mission is to bring food to the shelters still open 300 remain open. then world central kitchen, which is the organization led by andres is delivering to people in need and workers on the front line, nurses and doctors

>> important work. i want to ask you about the core business i was reading that the owner of 11 madison park, one of the top in the world, may never reopen again. i'm sure you've spoke within a lot of colleagues. what are they saying about the future what is the future of new york city going to look like? and is le bernardin going to reopen >> we will reopen. the question is when we don't have enough information to know when or what makes sense. it will be extremely difficult talking to my friends, we believe we'll have to incur a difficult time for years

until there is a vaccine or medication that can cure you from the virus we are awaiting instruction and what the space must be between tables, what is required for us to have to take temperatures of the clients to wear masks and gloves and so on when we are able to reopen will have to reinvent themselves quickly with a different team too. i doubt we'll need that many we'll have a small team in the beginning and grow with the demand >> some of the folks i've talked to, more family style restaurants say it is hard to make any money at 25 to 50%

capacity so they are not choosing to reopen in states like texas or georgia because they need to be 75% full to cover their costs. you've got your policymakers writing now, what is your message about what they need to do to make sure restaurants can reopen safely but that it is worth your time and money to reopen >> yes they have to help restaurants with the loans the government loans do not help the restaurants. to be forgiven, it will have to go to 75% of the labor force that is by june 30 we are not even reopened yet this is something not working for the restaurant industry. we need help for the incidences covering business interruption those have to help us. they have to pay us something because we have been

contributing for years and years. they find anyway possible not to pay restaurants this is vital to us and to think about adapting the loan is key. we need a different model for that loan. >> thank you there, a tough picture there to hear about the new york city restaurants. doing some good work making sure people get what they need. cnbc continues to care and is gathering health care leaders at the center of the fight you can learn more and request an invitation at cnbc events.com/healthy returns on deck, the answer to the question all investors want and need to know

how long can the same big technology stocks keep powering this market higher what happens if they stop going up dow futures are down about 50. we are back after this i feel cared about as a member. we're getting a super competitive interest rate on our money. we're able to invest through the same exact platform. i really liked that they didn't have any hidden or extra fees. ♪ sofi has brought me peace of mind. truly thank you for helping me prepare for whatever the future has in store. ♪

the major technology stocks. the ones leading prepandemic seem to be the ones leading during the pandemic. you've got names like microsoft, apple, amazon, facebook, google. make up the most market cap. that top heavy concentration while criticized is not necessarily a bad thing. joining me now, our guest. goldman sachs warned about it saying everything is getting too concentrated, like it was before you are not that worried

why not? >> we are not. good morning as you said, brian, these stocks let on the way up. during covid-19 and out of covid-19 as well the reason for that is because these stocks are exclusively positioned on friday, we saw it in 2000, 2008, 2012 the difference since 2000. many people want to go back to the 2000 because of the quote, tech wreck microsoft in san francisco the problem then was that was an overcapacity this is a recession more about natural disaster in our view the confidence in these names and overall market, we believe the biggest test for these and

their leadership will come when and if the market begins to broaden out. the best chance is for the market to begin to broaden out once investors can get a better feel for first and second quarter arnings. that won't be until later this summer >> you look at where that can grow to. look at real estate. that is hurt commercial rents are likely to come down significantly. what about other areas, particularly the banks that seems to be the most troubling sign to many people. >> it really is. people like to look at historical parallel. people go back to 10 years ago in the financial crisis. from our lens, when you take a look at banks, they are way better capitalized and managed

you look at how banks are reported same thing will happen in canada here what we have found is that once banks report these huge losses, they do very well from an historical perspective bare in mind, they will help define this. we started to talk about this move in the valley once we start earnings to stay out. things like your life and blood, energy energy could see a bit but i think it will be financials. we talk about it in our report another sector approaching all-time lows. typically and historically, that's another strong buy. it is the big banks, morgan

stanley, goldman sachs these names have real book value and real earnings in dividends >> appreciate that banks not looking too bad. thank you for joining us thank you everybody. we'll see you tomorrow on "worldwide exchange. squawk and the gang picking up coverage now feed a healthy lifestyle, with pure protein. high protein. low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. and try pure protein shakes, with 24 vitamins and minerals. and try pure protein shakes, across america, business owners are figuring things out. finding new ways to serve customers... connect employees... and work with partners.

comcast business is right there with you. with a network that helps give you speed, reliability and security. and enough bandwidth to handle all your connected devices. voice solutions like remote call forwarding and readable voicemail. and safe, convenient installation. when every connection counts, you can count on us. get the connectivity your business needs. call today. comcast business.

good morning dr. fauci set to warn congress about the dangers of opening the country too quickly. get reaction from dr. scott gottlieb and what boeing ceo says about the future of air travel >> and elon musk putting his own

safety on the line opening the plant in california defying orders "squawk box" begins now. good morning i'm becky quick along with joe kernen and andrew ross sorkin. u.s. futures have been lower we did see the dow down yesterday. nasdaq up slightly sorry, s&p was up less than a point and nasdaq up less ththa than .8% we are watching oil prices wti is up more than 3% i saw $25 a barrel a moment ago. looking at the 10-year