they didn't comment on any reports earlier about a b possible tie up the wuber >> we'll be talking about that tonight at 5:00. and great to be with you, kelly. once dwagain. you're breaking news coverage continues with the closing bell. >> welcome to the show i'm wilfred with sara. stocks have fallen through s&p now down more than half a percent with 59 minutes left continued fears over reopening the country highlighted by dr. fauci's warning that moving too fast could hurt the economic recovery new data showing consumer prices plunge iing, raising investor concerns about deflation and in just the few hour, reports of new hawkish moves against china from the group of gop senators while in the house, democrat have unveiled a new u $3 trillion relief bill >> ahead on today's show we'll hear from melinda gates

about how her organization is approaching testing, treatments and vaccines and which countries she says are doing the best right now handling the pandemic. plus, the interim president of new york's mta joins us to discuss a path forward for pass transit and whether people will ever feel comfortable riding in a crowded subway car again the biggest subway system in the country. let's focus on the big stories we're watching kayla has the latest on a new $3 trillion relief bill proposal. mike diving into the federal reserve's corporate bond purchase plan which kicked off today. kayla, let's start with you and washington relief. >> we are waiting to hear from house speaker nancy pelosi to discus what they are calling the heroes act this second wave of multitrillion dollar stimulus that now democrats say is needed to jump-start the american economy. pelosi has urged her conference

to think big, even as many fiscally minded democrats have raised concerns b about the price tag. in this $3 trillion package the democrats unveiled today, it includes a trillion dollars for state and local governments. it renews the direct stimulus payments to americans. it provides $200 million in hazard pay for essential workers. $175 billion to reimburse hospitals and provide testing for covid-19 patients and includes $75 billion in assistance for homeowners. plus, there is much, much more in this 1800 plus paged of legislation where the summary is is more than 90 pages. to be sure, republicans are not sold on this mitch mcconnell said today they are still in wait and see mode, that they don't feel urgency to act on any stimulus because they want to see where the white house stabds and they want to see previous stimulus package get used up first before they

move forward on this an administration official to tell me callsed this a humming bird package, which is to say it's not going to do much except make a bunch of noise, but it could inject a little momentum into the stocks as they try to figure out what's next needed for the economy. >> at the same time, kayla, on the senate side of thing, reports that gop senators are looking at sblusing a biintrodul which could have anxiouses against china inside what do you know about that? >> republican senators from south carolina, north carolina and mississippi among others are put iting forward a package tha would allow the president to put sanctions on china if it's accounting of how the coronavirus started is not comprehensive and doesn't meet the satisfaction of the intelligence community if after 60 days of studying that accounting, the president feels like china wasn't honest, then he can impose those sanctions. uncl unclear on what the path to

becoming law would be for that piece of legislation, but what is clear is that being hawkish on china has clear bipartisan support right now. a recent survey found 66% of respondents in america feel that they don't trust china and don't have a positive view of china right now. >> thanks very much for that news of that potential bill did hurt the sentiment in markets. we're down about 114 points on the dow. well off the highs at the moment meantime, the fed ramping up a new stimulus program of its own. officially kicking off its bond buying program mike joins us with home run more on the fed's plan and impact on the market so far. mike >> yeah, it actually is having a bit of an effect on those corporate bond etfs the fed is targeting. those are up today but on stock market, it's continuing to fight this same battle around 2900 mark. below the surface, the market has been a good deal weaker than at the headline level.

first got to 2900 ten trading sessions ago and we're still struggle wg that area. this has been a flattened out piece of this rally. the question is an internal correction with the average stock digesting this move or is it going to succomb to a pull back today take a look at the die m dynamics in corporate debt spreads. since the fed has announced these programs so march 23rd is when it said in a general way it would be buyers of corporate debt. that's when spreads both high yield and within high yield sink to double b rated then triple b rated, just above junk grade in investment grade came down sharply since then then april 9th is when the fed elaborated and said it would be buy etfs and you see the spreads have certainly responded all though kind of gone sideways for a while. this is the push pull.

fed giving confidence to the market it's backstopping this area of the capital market, but it's not necessarily able to take those spreads town to a level that would say this economic storm is about to pass. >> mike, stick with us we're going to continue the discussion part of the fed's post will focus on etfs. and we're going to discuss all this with sarah and peter who both join us now peter, i'll start with you because i know you're not the biggest supporter of this action by the fed and we just saw mike's chart there do you think the announcement of their intention to do this will significantly outweigh the impact of the actions themselves or could there be some improvement in credit outlook to come >> no, i think you make a great point. it's r more of a signalling. because i don't think that the fed is going to want to buy too many investment grade bonds. certainly i don't think themt they want to buy much of the

high yield space they feel they need to do this, but i don't think they want to get in so deep similar to the boj or ecb but the question is what are they trying to address here. one of the major problems in march was liquidity or lack there of well i argue that a lot of that was well post volcker rule where big investment banks would have step ped in and would have been intermediaries to buyers and sellers. that entire market disappeared and that's why you have these vacuums in market that is the fed claims now they're trying to trace or on the other hand, are they just trying to buy time for companies by allowing them to extend maturities until we get to the other side of an economic recovery >> sarah, how would you answer that what is the fed trying to do here >> well what the fed is should be focused on of course is a full economic inclusive recovery and to the extent it is using its tool, it wants to make sure its tools are focused where they

need need to be, which is on the real economy. so ideally, the fed is is looking through markets to the effect of these corporate debt purchases on employment. on essentially the ability of firms to hold on to employees. that should be really ultimately what the fed should be carie in about. that's what it needs to focus on >> if we were to see a second wave and need for a second lockdown or any other big secondary negative economic shock, do you think negative rates are a possibility? >> well, the president certainly has been pushing for negative interest rates for quite a while. but if you look at the pan pli of tools the fed has used, it has put out more unprecedents types of ammunition than we have

ever seen. not just today what we're seeing in terms of the corporate bond purchase facilities but it's going to be working with state and local municipal bond issues. it has entered the arena in terms of everything possible in a much more unprecedented way than we've ever seen so negative interest rates, that just seems like you know, that seems like dessert when the main course is plentiful. >> mike, as far as the corporate bond purchases, talk about what you've seen. you've seen the impact on the overall market, but companies like carnival cruise lines, uniteded, boeings, that were largely shut out for the credit market until the fed started signalling which wit was coming. how do you view how successful this has been given what some of these companies have been able to do? >> absolutely successful in

maintaining the issue, new issue market for corporate debt. if you want to look at ford moe company, the fed was explicit in se ing they're willing to buy so-called fallen angels which means they're rated junk now ford counts in that category and i think that's very relevant because the fed is try iing to work against this possibility at the time it seemed like a stark possibility in march, that being companies like that might be closed out of the refinancing market, would have to therefore curtail operations that spills into jobs and becomes more of a systemic economic issue not just b about you know bailing out parts of the financial markets, so that's been rectified to a large degree pretty much most large companies have had decent access to new debt they're terming out their debt paying down those revolving bank balances they drew on last month. so it's sort of working as planned, but it's not open to

everybody. united actually kind of pulled back on plans for a bond issue maybe wasn't happy with the price iing, so you're seeing an uptick in brufsy filings so there are failures happening, but it's just not necessarily taking down these other tier of credits that i think the fed was most focused on. >> peter, do you get worried when you hear sara frame the possibility of negative rates when the fed has just the dessert to follow the main course, suggesting that it's quite plausible? >> yeah, i view negative interest rates as poison in a financial system and in fact, it's restricted policy, not accommodative as it damages bank profitability and banks are key transmission mechanisms for policy we just have to look at the experience of the ecb and doj and see other than lowering the yields on sovereign bonds, it's had a damaging impact on the entire financial system. i read in "the wall street journal" yesterday that life

insurers are pulling back on issuing life settlement policies because they haven't get enough yield with the proceeds in the bond market so negative interest rates is extremely dangerous and i want to hear central banker emphatically say it's a bad idea rather than say okay, well we don't want to do it now, maybe later. >> peter and r sasarah, thank yu both for joining us. >> still ahead, making a combo shares of grub hub soaring as uber makes an offer to buy the food delivery company. we'll discus what a deal could look like and what it says about uber's strategy. coming up. ♪

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the bill and melinda gates foundation has committed more than $50 million to the coronavirus. yesterday, i spoke to her about the race for a vaccine and whether green chutes could speed up the timeline. >> yes, we may get one of those candidates if we're lucky by the end of the year but then it has to be produced and you're

talking millions and then billions of doses. we have never, never as a globe, made a vaccine of this type before nor of this scale before. ever so this is not a quick nor swift process. >> gates recently said she would grade the trump response as a d minus and coming up in a bit, find out which countries she says deserve an a for their handle of the coronavirus in the next hour. >> we look forward to that immensely. national institute of allergy and infectious diseases director dr. fauci warning congress b about the risks ab about reopening the economy without proper coronavirus precautions in place elon >> well, fauci really hammered home that states need to consider both the trajectory of their case as well as the

capacity of their health care system as they decide the right time to reopen and he said that if states move too early, they could risk deadly consequences >> if that occurs, there is a real risk that you will trigger an outbreak you may not be able to control which in fact, paradoxly will is set you back not only leading to some suffering and death that could be avoid ed, but could evn set you back on the road to trying to get economic recovery. it would almost turn the clock back >> during the hearing, two republican senators, mitt romney and lisa murkowski expressed concern about the current levels of both testing and contact tracing. fauci says he believes the number of of covid deaths has been underestimated. he did seem to try to clear the air about his standing at the white house. he says he gives the president advice as so many people do but

that his relationship with president trump has never been confrontational. back to you. >> thank you let's bring in dr. craig spencer. he's fighting on the front lines of the disease as the director of health emergency medicine at new york pris by tier yan columbia presbyterian columbia medical center youf been with us throughout this crisis. we're several weeks aelg it was really dire straits in your er what's it like now how's it different >> thankfully, it is quite different. we're still seeing covid-19 patients people coming in that are very sick but right now, what we're also seeing is we're seeing people start to reemerge. the first time that i had a shift where i saw more non covid patients than covid patients was just a few days ago. i had a shift two days ago where i had to make some patients with covid with kags, with stroke,

people with anxiety, still inside and uncertain about the future so our patient numbers thankfully are down compared with a couple of weeks ago but what we're seeing is a lot of the complications from people who stayed home and were afraid and having complications of covid-19 itself. >> what is your capacity as it stands like? and what do you say to those people that suggest lockdown in first place was really aimed at preventing health care services being overrun and if that's the case, that reducing the lockdown could perhaps be sensible if indeed health care capacities improve? >> i think this was a failure of communication and that the first part of what we were trying to say staying at home is important as it decreases the spread of the virus wasn't translated, was translated better than the second part, which was stay home as well during this time so we have time to ramp up testing, to

do the other bread and butter health that needs to be done so we can safely open when time we did the first part of flatten the curve. the problem is is that right now, as soon as we reopen, we don't have what we need in place to be able to do what needs to be done well the good bread and butter public health testing, contact tracing, isolating. what we need to do in the coming months and years to make sure we don't continue to have constant interruptions from this virus. >> one of the back and forths today in the fauci testimony came with rand paul about reopening schools in the fall and dr. fauci warned about the kids in this country and this newfound disease they're coming into ers for and i wonder if you're seeing any of 24 with kau sacky like conditions related to covid-19 >> yeah, the hospital system that i'm working at has seen a

good number of these cases in the past couple of days and weeks. these are concerning because again, up until this point, we thought children thankfully weren't really too impacted by this virus and we know that this is still a rare complication. it's only happening in a very small percentage we presume, but again with a lot of coronavirus, we just don't exactly know we don't know the risk factors, predisposing factors that cause some kids to get this and some not. we're treat it like we treat these illnesses and thankfully so far, there's been good response but again, there's still a lot more research that needs to be done on this and everything around covid because frankly, there's more that we don't know about this than we do >> so overall, dr. spencer, what is your level of optimism of effective treatments that might mean even if there's a second wave, it won't matter too much >> right now, i think people are getting frustrate ed and they wn

something. been months. we need a vaccine, treatments. people want to get outside and get back to a normal life. the frank reality is that right now, we don't have a magic bullet no treatments that will decrease mor l tallty some suggest ed the past couple of days with new combination, maybe remdesivir will help we just don't know we're putting a lot of stake in the fact that in the next couple months, we'll have something that will decrease mortality and hospitalizations, but that's not true i think this is also true with vaccines we have people talking about going back to school in the fall or maybe by the end of this year we'll have a vaccine yeah, maybe that's true. there are multiple right now that are under development, in clinical trial, but as you heard, getting a vaccine that works is only the first part there are so many other parts that come of that making sure there's enough viles making sure we're able to get it to the right people.

we don't know how effective it's going to be. what if it's only 60 to 65% effective. what if we need two doses. who cowe prioritize first? health care workers, the elder ly there's still a lot of questions and hurdles that need to be overcome before we have treatments and vaccines that are actually going to make a significant impact on the shape of this outbreak >> what about you and your team, dr. spencer? you've been battling this for now more than two months what has that time allowed you to figure out aboyou treat peope in other words, the use of ventilators, the use of specific treatments or techniques or how qui quickly you move them into certain places and do you feel that that time and experience leads you to be more effective in fighting this disease and we could see because ofthat preparation, a lower mortality rate going forward >> absolutely. so compared to what everyone knew here in new york city or really in any place that's creating coronavirus patients,

it's drastically different we have been trying to put fewer people on ventilators when possible because we knew mortality was really, really high we've been turning patients over on their front because we think this helps with their lung respiratory physiology we've learned a lot but again we know it's only a small number, smal small percentage of people that get infeked with this virus that get really, really sick. if we have a way to prevent this, that's really the only way we're going to be able to decrease mortality this is what we need to be focusing on still. not just reopening but making sure we're reopening safely. making sure we decrease the spread of this virus because again, if e we do this wrong, as dr. fauci said, maybe in a couple of weeks or months, we're in a worst spot and regress because we didn't do it right. >> dr. spencer, thank you very much for joini ining us >> thanks for having me on

>> 35 minutes left of the session. just toughed sessi etouch sessis down 1% on the s&p up next, shares of uber and grub hub making big moves today amid talk of a potential tie up we'll discuss the move and or potential move and what it says about uber's future. here's a check on bonds. yields moving lower. 10 year moving around 6.8% we'll be right back. ever since we've gone mobile on the now platform,

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ride share volume has taken a big hit and now uber maybe looking to double down with a major acquisition.

hi, d. >> that's right. sources telling cnbc today that uber has made a takeover offer for grub hub one source saying that 2.15 uber shares per grub hub share has been discussed now statements from both companies neither denying nor confirming the move. grub hub said that consolidation could make sense uber said it's constantly looking at ways to provide more values, so shares surging on that speculation that a deal will be done now consolidation as you know has long been seen as inevitable in the food delivery space as costs are large and the battle is very fierce this merger would essentially catapult uber into the number one position for food delivery here in the u.s. and it comes as its ride sharing business has fallen off a cliff >> mike with us as well. mike, i mean this r part of the business was for a long time, of course one of the anchors weighing uber down

it's pivoted now to be something that's a relative off set to ride sharing, but remains unprofitable, which you can see why they'd want to reduce the number of players, but do they need to buy someone in order to do that? >> i think it's very instruct i havive that not only did grub hub shares rally on these reports, but so did uber shares. the idea is it's a terrible business as it sits fwhou all these multiple businesses with door dash. it's burning capital all over the place and it's seen as something where consolidation as diedra said, is unevidentable and if you're going to be the one to initiate the consolidation, perhaps you can capture a better chunk of the economics. so qulong it's necessarily going to be some kind of magic cure for the long-term investment case for uber necessarily. it's still going to hinge on ride sharing coming back but if you're going to be in this business, you probably want to be in it in a bigger way

grub hub has talked it about how there's economic players in this business and people are just throwing too much money at it or at least they were so they've been open and that's attracted short sellers. it remains a popular short it's about 20% of the shares outstanding have been sold short. it's been a bad performer up until recently jim said it was his favorite short a while back and has been vocal about what he sees as the fundamental kind of imb possi e possibility of this becoming a thriving business but we'll have to see >> yeah, not a good day for the short sellers to be short. what can you tell us about the business model it never quite made sense who make money because it's so expensive for customers to use these. you talk to the restaurants, they complain about the deal they're getting and you talk to the companies and they also complain about the deal they're getting. so who's actually making money

>> no one's really making money here and that's why it's so deeply unprofitable still and it's interesting to note that ride sharing is actually becoming more profitable on an adjusted ebitda bases where as you look at uber's latest quarter, q1, and uber eats lost more than 300 adjusted ebitda i think another interesting question for this story is what happens to regulatory scrutiny you mentioned it, restaurants are trying to get better deals if there's now two big players, if it becomes dorr dash versus uber because uber takes over grubhub, what are the regulators going to think of this are the restaurants more likely to get a better or worse deal? this has become such a hot top ib they've had to reduce that take rate and i think that's going to become more essential if you have less players in this market >> thanks so much for that

ub time for a coronavirus update with sue herera. hi, sue. >> good afternoon. here's what's happeninging at this hour. new york's governor cuomo issuing a bit of a warning he says the state is looking at about 100 cases of an inflammatory disease in young children that appears to be caused by the virus. >> this virus has deceived us every step of the way. we have been behind this virus from the very beginning. and it still surprises us. we thought initially that it didn't affect children we're now dealing with an issue that's very disturbing >> in north carolina, scenes of what may be the new normal the doors are being opened at a wilmington mall. the state now allows retail stores to operate at 50% of capacity and out in california, a different picture. you're look iing at body cam vie

of a frizz know officer trying to get into a restaurant to issue a fine owner for serving dine in customers. one person was briefly detained. just minutes ago, california's governor also announcing some restrictions are being eased allowing restaurants in some areas to open. we'll have more on that for you coming up. as always for more on our coronavirus coverage, you can head to cnbc.com back to you. >> thank you we've got just under 30 minutes left of trade. every sector is is lower now especially by industrials and real estate today. still ahead, the path forward for mass transit we'll talk to the interim president of the mta in new york about her plans to keep workers and commuters safe and what the future of the subway system could look like. when the world gets complicated, a lot goes through your mind.

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this is according to the information citing sources inst cart last raised money in 20 at a nearly $8 billion valuation so that's a significant step up and the it's interesting because many, many part of the sharing economy we were just talking about uber there's lyft as well airbnb, have been hurting amid the pandemic, but instacart has seen surging demand as more consume e consumers turn to grocery delivery now the information is saying this may be opportunistic they may not need money, but they may be want iing to take advantage of their surging growth to get good financing doesn't say what the terms may be airbnb was also able to tap funding, the bond and private

equity markets, secondary equity mrkt, but the terms weren't very favorable. >> thank you 24 minutes left of trading the dow losing some steam here into the close mike just noting apple lost some of its intraday gain we've also seen weakness today and amazon, microsoft, those were the names r that were powering this market higher. after the break, global markets amid the global pandemic we'll discuss which regions have the most potential upside with the chief global strategist at goldman sachs, next. ♪ you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse.

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zblnc welcome back shares of zoom ticking back after google announced it has reengineered google meet, make k it free and available to all this comes after facebook introduced messager roops cap b capabilities. everybody's chasing zoom right now. >> everyone. it's become a have for everyone. the broader markets by the way just slipping as we approach the close. we're at the session lows. down 260 on the dow or 1%. all three of the major indices down more than 1% and the stir has been the nasdaq playing catch down with the other indices. apple's turned negative. all three down about 1.2% let's have a look at global

equities getting hit hard as they're reopening efforts. joining us now, peter oppenheimer, chief eck quity strategist at goldman sachs also author of the long good-bye. thanks for joining us. >> want to get to the book of what you analyze in the book in just a moment, but first and foremost, the short-term in the markets and what you guys at goldman sachs are thinking in terms of i think you're estimates for gdp are worse than con ssensus does that mean you're more than bearish than consensus on the market as well >> in the short-term, yes. we think this asemitri now given the powerful rally to be seen and what somewhat disconnect between the map which is deteriorating relative to the consensus expectation

but we don't see them going back to or breaking the previous lows we've seen in this bear market longer term, i think there are opportunities. but as with all asset class, i think we'll see e llower return moving forward it's an expansion. >> looking at some of the returns from different markets, peter, around the world, the u.s. versus europe versus china, japan, i mean is it as simple as go where the stimulus money is flowing the most both fiscal and monetary >> well it's a very good point sh, sa when we look at the history, the scene and the assertiveness of policy support has been one of the key ingredients in determining how successful economies are in recovering. we actually have seen more aggressive action, particularly in the u.s., than in general across europe. so that is one of the reasons i think the u.s. market had done

better of course the other factor and we were mentioning it before is just the leaders of the market and in case of high concentrations in technology companies, which attempted to do better and this has been an unusual rally from a bear market low because it has been led generally by more defensive type companies. pretty different from most bear market recoveries where you tend to get more cyclical, more high beater parts of the market leading. >> small caps have clearly underperformed here and around the rest of the r world. does that make sense is the stimulus reaching companies of all sizes >> well, partly i think because you know there are more risk to smaller companies given the scale of the recession that we're expegting to see contractions of well over 5% in the u.s. and over 10% in europe for example.

these are historically large downturns and that will put more risk on this particularly the early, that might have funding constrain constraints. but i think to some degree, the flex and defensive nature of this rebound we've seen so far and that suggests to us that actually the main reason equities have jumped so much from their march lows is mainly because risks rose as it was also the policy stimulus rather than strong increased confidence about future growth. it's when you get that greater confidence in the economy that you tend to get mid and small sized companies doing better and cyclical companies we haven't yet reached that in this cycle >> down dow 331 points peter, where in the world do you see the most opportunity right

now? >> well i think you need to separate sort of shorter and more medium term short-term, we're relatively cautious risk assets, we're overweight credit also overweight in cash. i think when you do get to a point where there's a more convincing opening up of the economy is and investors start to rieleally reflect that and ga rotation in markets. towards much more cyclical and perhaps higher levered companies but in the median to long-term, we could see some of the fattest leading the market similar to what we've seen in the last decade probably based on the prospects relatively low nominal gdp growth and low interest rates and that combination has been very good for long duration

growth companies and in addition to that, i think high level debt, particularly in government aacross the sector, will mean over the median to long-term compared with strong balance sheets are likely to be highly sought after because they'll have more flexibility or indeed to be invested in terms of future growth. i think those are thelonger term factors that are likely to need in that cycle >> in your book, the long good, you provide a deep analysis of market cycles and what drives them i wonder whether this recent pullback acts at the end of cycle given p we fell so quickly and have rebounded so quickly. is is it in fact just an extension of the previous cycle or are we in a new cycle now and will the next cycle, because this enormous stimulus, be shorter than the last one or longer >> a great question.

i think we have seen the end of the last cycle take the u.s. as an example. economy ically, it's the longest expansion for maybe 150 years and in the stock market, it was the longest bull market for about a century. it came to an end because of the shock that came about because of this virus and when you look at history of bear markets, which i do in the book, we find there are different types of bear market cycles, which are really a function of what drives them they're the event driven ones. ones that are driven by a shock that derails the economy there are the ones we call cyclical, more typically driven by rising interest rates and those that we call structural, which are nearly always proceeded by asset bubbles and when those burst, you get usually real estate crisis and

banking crisis financial crisis is a good example. we find that the structured ones much deeper and longer the sicyclical ones, you tend te see crisis fall 35% or so. over a couple of years, usually takes four years to recover, but the event driven ones also see similar types around 30 to 35%, but it tends to be over much shorter periods as we've just been experiencing, so i think we have end ed the last cycle. i think the next cycle with the very significant policy support we're seeing and likely very low rates for a long time, will also be probably quite extended, quite long but again, probably dominated by a relatively low profit growth and economic growth. which will favor certain types of growth companies. >> peter, thanks so much for joining us >> thanks for having me. >> up next, uninterrupted

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we are now in the closing bell market zone mike is here to break down these crucial moments of the trading day and today we've got paul hicky to join the conversation the dow is down just over 400 points let's kick off with the late day sell off apple losing team in the final minutes of trade though mike if you look for wh wr the weakness is it's in a lot of places the real estate companies, banks, airline, construction industrials. retail department stores the driver >> they were weak all day.

so even when the indexes were holding together thanks to growth stocks, a lot of attention coming in today based on the rare streak nasdaq has had being up six days in a row i think a lot of the news flow just refocused attention on the challenges to reopening l.a. county saying perhaps they're going to be stay at home orders for three r more months. that's a more proximate cause or a reason for this downside twitch but it's not the reason in a big picture sense that the nasdaq 1010 which has been going up on everything, no matterer what the news flow, has given way. so i think it was a combination of a market primed to pull back in term of the large growth stocks then just more of a reorientation of attention away from the idea that we could have a fast and clean reopening >> paul, what do you make of it when we have days like this of significant slippage during the session, particularly in the final hour of trade? it seems to be more than just

the occasional intraday sell off. >> you tend to not want to see weakness in the close. smart money indicator that's the we've been up six days in a row in this nasdaq investors look k for an excuse to sell. there's a delay in opening, any doubt into the opening trajectory gives people that excuse continuing to slip. jack dorsey speaking at the jpmorgan global tech and media conference today about how he users have been tweeting square more like a bank kate has those details for us.

>> dorsey of course speaking at the virtual version of the conference he says they benefitted to get their stimulus checks and unemployment benefits. total square clients using direct deposit jumped from 3 million to 14 million in recent weeks. >> this happened, i've got a card, i've got a way to hook my payroll to it. i've got a way of my eck quitie, which i never have before. i can buy this weird thing called bitcoin that's cool. and i can use this card at an atm. what else do i need? that's what inform it is the road map what are those critical functions? that help us kind of ree place a bunch of trips to a bank branch.

>> square also dispersing 60,000 government loans which he claims happened faster than any bank out there. back to you guys >> thank you boeing reporting a second straight month without any new orders phil lebeau with the details phil >> and sara, this is four straights this year where they've had a negative number in terms of commercial airplane orders they report so as you take a look at shares of boeing, people always say what's the backlog the backlog now is under 5,000 planes 4,834 in april negative 209 in terms of commercial airplane orders almost all were the max. and you've got a total now for the year negative 516 of course a lot of people are focused on boeing today following the comments of dave calhoun on the "today" show. he was asked look do you see u.s. airline going away this year and he basically said yes, he does, due to a number of issues they're facing.

that's put pressure on the pair line stocks. if you look at them today, they're either at 52-week lows or get iting close further pressure on that sector. >> phil, thank you even though he said it, mike, that wouldn't necessarily be good for his order book if one of his main clients goes bust. >> oh, no. certainly not good for it. essentially just assessing what this industry looks like i also don't think it's really news to the market if you look at lot of the way the airline stocks and bonds have been trading, it seems that there really isn't that much slack or that much of a cushion that they can rely on right now. so it's probably not that unusual. when we say go away, it could just mean that their company is reorganized or they have to get a capital infusion not clear they would cease operations, but i think you have to be realistic about what this

traffic drought is going to mean for the business >> paul, can we see further gaps in terms of performance? even though clearly, we know these companies are affected, they're down 60% or so year to date and again, the nasdaq just about holds on to gains year to date >> yeah, i mean the performance gap in sectors i think the is what you're asking about we look at the market where we're only down 10% off the highs and we think oh my gosh, this is crazy. we can take some solace in the fact it hasn't been. investors are buy iing the companies in the sectors that should benefit or are benefitting and they're selling sectors most impacted. it's not, both stock does work in this type of environment where as indexing, passive inves invest ing can take a hit. so i think we can you know whether or not these sectors that have done well have gotten ahead of themselves is a debate for another story. all depending on how fast this economy gets back to normal.

but i mean the it's rational when you look at the sector by sector bases and to dave's comments about the airlines, i mean as as mike said, this isn't a surprise last week, we saw one analyst put a dollar price target on american airlines. it's well-known these companies are facing trouble the longer their planes are sitting and collecting rust. >> mike, what are you see iing n market internal sns. >> weakness. ooempb when the market was kind of quietly flat underlying it was downside skew in up versus down volume. that's been the case for a while. you see the new york stock exchange still heavily to the downside with this little squall into the close then i was looking also at the momentum etfs these are the recent winners in the s&p 500 against the s&p value. still still a bifurcation but you're

seeing momentum cave a little bit. people kind of reupped with the winners constantly volatility index has been in a positive down trend and i think in general, it's been okay, but a little bit of an uptick with the added downside in stocks today. >> well, mike, there's the close pretty much. we're right there at it and we're down at the session lows as you mentioned down 460 points on the dow so an extra 50 points leg down in just the last couple of minutes. down 2% on the s&p 500 nearly 2% on the dow the nasdaq joining the decline to close down 2% itself! yeah, not a great look in close for the bulls there. welcome, everyone, back. if you are just joining us, i'm sara here with wilfred and mike. take a look at how we finished up the day on wall street. session lows and you can see there was really a spill in the last half hour of trading or so. dow finishing lower, 457 points.

cat pill lear looks like it was the biggest loser. goldman sachs was the biggest loser all day then cat went lower than jpm and goldman sachs. banks were a weak spot s&p 500 down 2%. every sector lower hardest hit, real estate companies. industrials, financials and energy utilities faired the best. nasdaq also got hit today. some of the big tech names that have been powering this move higher under pressure, microsoft, amazon, apple late in the day. 2% close lower for the nasdaq. the russell 2000 hit hard and the this is the one that's been hit all year down 20% now year to date. coming up, find out which countries melinda gates should get an a for their handling of the pandemic joining us first, tony and paul hicky. still with us, mike, first to you. on whether the narrative in this

market has changed from opt mims around reopening and stimulus and testing treatment, vaccine advances is that still the case or is that sort of getting tired and yielding into something not as rosy? >> i think the narrative still exists i think it's the orientation of most investors at least trying to look in that direction, but you know as prices go up in the on the index level, you kind of use up whatever plausible optimism you have about that i think today, we've been talking for over a week now about how the indexes have been protected by this elite tier of big growth stocks that don't have to rely on the opening story and they gave way today. so i think you had some relationships in the market that got stretched. whatever you want to look at you have really a lot of divergence in that area. once the big caps gave way this

afternoon, it wasn't much of an answer for it. you have to pull back and say this has been a trading range. three weeks ago, we first got to the level of the s&p we closed today on this rebound. so it seems as if there's been this kind of consolidation mode. probably room for further downside before you exit a mode into something worse, so clearly, the market was de definitely bumpeded up against a good ceiling above 2900 as we were pointinging to for a while now. >> the sell off into the close looks ugly today, but do you agree with mike we're still within recent ranges and not something to get immediately worried about? >> i do agree. we're in a sort of a range bound situation here the policy stimulus, the fiscal and monetary policy stimulus has really taken off the downside. valuation kind of caps the upside and so i think from a market perspective, that's

correct. the one good news is for stock pickers, there's valuation spreads in the market are wide by any historical standards. very wide. and that provides stock picking opportunities within this range bound market >> paul, why has the market been so strong and resilient in the face of such bad economic day the and earnings outlooks, which are virtually slim to knonone >> i think this in the short-term is expected none of these numbers are surprising anybody right now baseded on when you shut down the economy nearly completely. so i think you can get a couple of months of leeway from that, but if these first order effects become second, the policy response to the fed and the federal government has put in place is enough to cover the initial reactions babe maib but if these thing and closures keep going on, that's going to be a b problem. one thing on the megacaps which the five largest stocks in the s&p 500 have been doing well

this year and have outperformed the market this month, 7% of the russell 30 00 stocks that have market caps in excess of 500 million have hit 52-week highs. and russell 3000 includes all u.s. stocks. five stocks not there are microsoft, amazon, apple, facebook and net, and alphabet so of those five stock, none have hit 52-week highs this year and i mean the market is turning sideways, but there are other stocks doing well. a majority of those stocks are hemt care followed by technology so those are the two leading sectors but it's not just all five stocks. because of their weight, they have an undue influence on the market but others underneath the surface a, 7% of the russell 3000 has been doing well here as well >> all right let's get to bob pisani for a look at today's trading. the big movers and ultimately

that spilled into the close. >> i don't think the narrative has changed. i agree with mike. i think the point is the market is reach its limit to keep pushing forward with the facts it's got right now and just take a look at the s&p 500. i thought we'd have a shot at breaking out to new highs. 29, 39 is the old high at the end of april we didn't do it, but we're trading at 23 times forward multiples now. we don't even know where the multiples are. that's high under any circumstances. i think that's the b problem the hype of the market we're really having problems with banks j.p. r morg, it's down 37% thish goldman is down 22%. banks are in trouble and so are the industrials. generally, the slant has been difficult for the last couple of weeks. caterpillar is down 28%. that's just one example. 3m is down about 20% they're having a lot of trouble

getting traction boeing is the big problem because that's a high priced stock in the dow and that's down 60% this year. 6-0% this year and going nowhere in the recent rally. as far as the outperformers, yes, the health care is doing better united health has been trying to break out. it was almost near a new high. 304 was the new high but it stalled out as well. that's a big problem same with proctor. apple's has a fantastic run it was 290. that's a great run so it's about time it paused a little bit but thatere's your big outperformer. i think we're reaching the limits as to how far we can push it without even better news. guys, back to you. >> thank you we've got breaking news now on uber and grubhub david faber joining us now with the details. david. >> well, sara, we've been keeping a close eye on shares of grubhub ever since bloomberg broke the news they had been approached by uber and there

were talks designed to have uriuber acquire grubhub. we can tell you the two companies do still amain fairly fremain fairly far apart. price is the most important part of any negotiation investors may have seen news of a 2.15 ratio that was the proposal from gub grubhub, but it's been rejected. by uber. so those looking for 2.15 ratio for example as has been report ed by some others will be potentially disappointed and the next couple of days would appear to be crucial in terms of f whether they'll be able to reach some sort of a deal. don't know exactly what uber's offer is only that the apps did appear to be at least a ratio of 2.15 uber for each share of grubhub. these two companies have been

talking on and off for as long as i'm told a year the end of last year there was some significant talk then they were off for a while and then there seemed to eed t least a coming together of a range of price, but they have not gotten there in fact, it would appear they remain apart on the, on any sort of negotiated price at this point. so we'll keep a close eye on it. the next couple of days could be crucial given so many are aware now of these talks shares of grubhub had been up but sold off along with the broader market as the day wore on we'll have more perhaps tomorrow and update people as we get more news involving what is a rarity these days of course and m and a transaction during this team when we've seen a great deal of capital markets action but little when it comes to one company buying another. back to you. >> you mentioned shares of grubhub. shares of uber moving lower.

there were higher along with grubhub, a sign that investors were welcoming the idea of consolidation with these two >> no doubt. it's a great point, sara when you see that and sometimes, we see a deal leaked in part because the acquirer wants to prove to the company they're acquiring that currency is going to be a good one this will be an all stock deal you could never imagine uber using cash but their shareholders did respond positively to these reports and there seems little doubt there's rationale for con dosolidation d the efficiencies that would go towards uber and what grubhub has been doing none is less, it doesn't appear that uber was in any way willing to pay the 2.15 ratio that would been asked previously. >> just want to bring in mike as well

mike, to a point that david alluded to, the stock for grubhub closed 29% for the session. somewhat of a surprise not trading down more. only down 2.3% of course david's not reporting that the deal is off, but a 30% move to the upside today perhaps suggested a bit more confidence in the deal than david is pointing to. >> well confidence in the deal as we talked about perhaps some short covering, too. just a movement there's an idea towards consolidation in this area look at a long longer term short of grubhub it's coming off a low base it was higher a year ago so it isn't as if you know we were talking about it being taken out of an all time high or premium to a high level. so all that stuff could kind of fit in this as we try to sort through. also why don't we give a little while for david's news to filter into the market and see what

happens. >> these companies have been b talking a while. it is interesting for uber to sort of focus more on consolidating this market and take out a big competitor at a time when there's a ton of demand for food delivery i wonder if a deal like this could have or would have gotten done before the pandemic r in order, just how much is related to what's going on in our new reality and whether it's a commentary by uber that this is going to permanently change our behavior >> yeah. you know i think that is certainly a part of it also when you have situations like this, when you're a grubhub for example or any other company that perhaps in the past has rejected overture, it makes you think a bit differently about the future in terms of the risk there may be and if there's an opportunity to potentially see this as a significant premium for your shareholders, you may

be more willing to try and take it than you might have been in the past in a pure growth environment. even though to your point, sara, this is one that does, this environment is one that does seem to benefit those businesses >> david faber, thanks so much for that we're seeing grubhub and uber -- >> a casual favor. >> i was about to say, i hope you had a good workout moments before breaking this news. >> he doesn't need a suit to do some reporting >> no suit and tie for you today. >> i hope jim cramer was watching >> i kind of like it very relatable >> you know, yeah. sorkin and i took a walk i had to be many sweats. >> but stayed six feet apart thank you very much. both stocks moving on david's breaking news there. as investors try to navigate the path forward amid the coronavirus, the nation's top health care experts shed light on the current situation in a virtual senate testimony today here is dr. fauci discuss iing h timeline for a treatment or vaccine.

>> the reentry of students into the fall term would be something that would be a bit of a bridge too far. as i mentioned, the drug that has shown some degree of efficacy was modest and was in hospitalized patients. not yet or maybe to be used as prof lax is or treatment even at the top speed we're going, we don't see a vaccine playing in the ability of individuals to get back to school this term what they really want is to know if they are safe >> mike, does the market think we're going to continue to move towards reopening kind of regardless of that relatively down beat tone on the topic of treatments and vaccines? >> obviously the direction is toward reopening it's incremental going to be fitful i don't think as i've been

saying that the actual types of stocks that would benefit have not really been lead iing this market so i think there was a bit of a dampening effect just in terms of headline flow. and sentiment today. as i said, the l.a. county news along with dr. fauci, seem ed like all together say os kay, maybe you know people have overanticipated exactly how soon it can be broadly reopened so i don't know exactly where that leaves the overall market because the big growth stocks can do what they want to do. bio tech stocks can do what they want to do even in that environment. the question is have they gotten too extended and tired at this point to hold things up. >> paul, what would you say to investors about reopening schools in the fall and whether you can have any other meaningful reopening of an economy with kids not going back to school? >> i think that brings up your point, that's a great point. i'm a little concerneded when we started these shutdowns

and everything, the goal was never to keep everything shutdown until we had a vaccine. if i remember correctly, it was to flatten the curve so to speak. ultimately, it's going to be a function of parents, whether or not they're confident enough to send their kids out and even go out themselves i think the government shutdowns came after people were already starting to show some concerns and so consumers and americans in general based on how they feel comfortable going out will be ahead of the curve in government but i mean i think when you get to a point in the fall where kids aren't going back to school, that will be very pr problematic because that means people aren't going back to work the people that have to go back to work. so it's something that's going to be b a big topic of conversation going forward in the summer months. >> dr. fauci also discussed how states should approach reopening for business hinting at the possibility of having to close back down if there's a second wave of infection. listen >> it's the ability and cape

bability of responding to those cases with good identification, isolation and contact tracing will determine whether you can continue to go forward as you try to reopen america. so it's not only doing it at the appropriate time with the appropriate constraints, but having in place the capability of responding when the ine inevitable return of infections occur. >> tony, is is that risk in the market here? that we could see a big second wave as fauci warns about and would have to potentially shut down again >> i think it's an important point for investors to remember that the virus, at least in large part, is what's going to be driving the recovery. we've had a lot of stimulus. both fiscal and monetary unprecedented thrown at the market and that's helped them to keep the market high now there are sectors where there's a valuation gap and so

what we've been doing on the blackrock equity dividend fund is really pursuing a barbell strategy we've been overweight tech and health care. we're continuing that overweight because these are sectors that have been largely immune from covid-19 on the flip side, we're also finding some opportunities in the cyclical sectors that have been deeply beaten down, whether ths energy or financial, but words of caution, a footnote here one is you don't want to get too big in those sectors because there's still risk and two, balance sheets balance sheets are going to be incredibly critical because as dr. fauci points out, we don't know will there be a second wave? we don't know the timing of the recovery that's why making sure companies have sufficient capital is going b to be critical >> all right thanks to all of you for joining us today and talking through this market. paul, tony, mike stays on board. still ahead, a rare interview with the ceo of pfizer and hear

what he says to say about manufacturing coronavirus treatments plus, we'll discuss the global response to coronavirus with mel melinda gates and how the future of work could change forevery. back in just 90 seconds. ♪ happy birthday! so, it goes... ♪ hold up your answers. how is mickey doing today? ♪

you're just a really hard worker. ♪ ♪ ♪ ♪ pfizer's ceo discussing his company company's efforts to fight the coronavirus during the summit meg joins us with the highlig s highlights >> a lot f people think about pfizer and its vaccine partnership when it comes to covid-19 but one thing the company has also pledged to do

is give its excess capacity over to other vaccines that may prove useful that brings to mind remdesivir that company just striking a partnership with five other generic manufacturers in india and pakistan to make the drug for other countries during the w.h.o. declares this emergency over i asked the ceo if they would consider striking such a deal with gilead to help manufacture remdesivir here's what he told me >> absolutely. i don't want to disclose specific discussions but the between us, but i need to tell you that since we issued those plans, more than 350 different companies have reached out to pfizer asking our support. the support would be from manufacturing or utilization or some of property or tests or

some of our sometimes capital and we are the mosting of them this is not business as usual. >> and in terms of that spirit of collaboration, they say they don't have any other competitors except the virus and time, guys. that is what they're working with right now >> it really is unprecedented. the collaboration and amount of resources these countries are putting, countries and companies, putting into this fight, meg just wanted to talk the to you b about some news of the day from dr. fauci. curbing some enthusiasm around how fast and how effective a vaccine is going to be obviously a lot of people are trying to stake our future of reopening our economy and getting back to normal and getting back to people on this what was the big take away there? >> i don't think he actually

changed his stance on the likelihood of a timeline for a vaccine. he was asked if we'd have a vaccine or really effective treatment that would enable students going back to school in if fall to feel safe he was saying that's a bridge too far. that a vaccine would be available at that scale and be tested so much by the fall to enable students to take it and to help them feel safe when they go back to school. he said when they go back to school, what they need to feel safe is really increased testing and an infrastructure to support that kind of surveillance. so you know, he did still reiterate that 12 to 18 month time frame for a vaccine i don't think the timeline has changed very much in what he said today, but of course we have to see all these companies go through these massive tries to insure safety and efficacy before we get there. >> it was on that point that i think we heard from him on the first time, meg, really and this is something that all the vie roll gists know and people you talk to know well that it's not a sure thing that we're going to

get something effective that works. not every virus has a vaccine and there's a possibility to make shotgun that csomething thn make the condition worse >> right that's a concern and something we talked with a lot of these health care leaders at healthy returns about. how much data do you need? how many people do you have to include and how long do you have to follow them to make sure these things are safe. i've talked with others who say yes, there's novak seen for hiv for example, and of course that's a very tricky virus and there are republicans we don't have a vaccine so that's a risk. that's the reason we hear dr. fauci and others talk about getting the testing and surveillance infrastructures up and running so we can manage this as we start to get back up and running again. but also there are treatments in the pipeline and we heard from regeneron's ceo and he's feeling very confident about delivering something by the end of the this

year and julie saying she thinks treatments will be the nearest term opportunity to make a dent in this pandemic >> thank you so much for that. if you missed today's event, you can watch it in a live rebroadcast, excuse me, thursday at 1:00 p.m. eastern cnbc's facebook page, youtube channel or on cnbc.com back over to mike taking a look at the surge in health care stocks we've seen of late, mike. >>. >> yeah, all the attention and money being thrown at the coronavirus has been a halo effect on bio tech in particular all of health care, but bio tech in particular. it's been common to say tech has been carrying the market but really, its growth, self-financing growth. secular growth story now bad reversal today on the downside in bio the tech along with the rest of the nasdaq, but look at the outperformance it's had against semis and it's become a much bigger part of the market pointing out if you look at the

russell 2000 waitings, het care is now overtaken financials as the largest waiting. also fund flows into health care specific etfs and other funds reached a record by a long shot in the last month or so. so it seems as if perhaps maybe in excess of intent people feeling like there's this one safe part of the market that you can play with. it's a leadership group longer term it seems but not necessarily something that you can count a lot of short-term payoff because it's got heated and crowded. >> the broader markets closed down 2% today. up next, melinda gates on the race for a coronavirus vaccine and what life might look like when that vaccine is approved. back in a couple of minutes. ♪

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stocks slumped today dow finished lower by 457 points 29 out of 30 dow stocks fell caterpillar, jpmorgan and goldman sachs the worst.

but it was a broad selloff that took a leg lower right into the close. the overall market down 2% the bill and me llinda gates foundation have committed more than $250 million in the fight against the coronavirus. i caught up with melinda gates to discuss treatments, vaccines and which companies are doing a better job handling the pande c pandemic, but we begin with one issue that she's saying is absolutely essential to getting people back to work. that is reforming the child care system in this country listen >> as we look at reopening the economy, we absolutely have to look at this broken care giving system we have because we're putting employees in an impossible situation today and choosing between their family's health and going back to work and so what i want to say to congress is as you develop the next stimulus package, you really need to look at more sick days and more paid leave the previous one of the previous stimulus packages had ten days

for sick days. but we know if you're exposed to covid-19, you're supposed to quarantine for 14 days i don't think we want people going back to work on day 11 and so i think you know that's just a beginning it also needs to cover all workers. not just a subset of this economy. >> president trump just saying we're set to surpass ten million tests conducted this week. how far is is that from where you see that we need to be >> it's still substantial distance from where we need to be i think it's easier instead of these big grand numbers we all try to look at, you have to think about the specific worker. so take the mom who rides two buses, she's single mom. has two kids and she's leaving them with grandma. she needs to know that she's safe going into work so does her place of employment have a test available for her?

if she thinks she or her kids have been exposed, is there a place she can go in the community? we're talking millions and millions more tests than this ten million number and that is how we keep our american citizens safe. >> you gave recent ly the trump administration a d minus for its handling of the pandemic certainly was late with the number of initiatives. is there any country you see that deserves an a >> absolutely. germany. south korea. i mean take germany. they have been doing scaled testing. then they do contact tracing they've put more tracers into the system that is health workers to go out and find okay, if you've been exposed, we're making sure that you're quarantined and doing the right things and we're helping you go out and talk to anybody that you might have exposed yourself during that time. so germany is following this

science. they're following the numbers. and they're opening up very, very slowly and getting people back to work and that is the system that i think would work perfectly in the united states. and what i see when i go out yesterday on mother's day in the parks in seattle where we've been in this lockdown phase for a long time with a now a very slow reopening in seattle, the american citizens are doing the right thing. they are social distancing they're wearing masks. i'm hearing from teenagers who wash their hands so we need to lead as a nation in a thoughtful and slow process that follows the numbers and sees where we are day by day by day. that would make sense. >> i have and we are slow to do it what do you think, the experts are warning us that a second wave is inevitable are we doing enough from your view to prepare for that even? >> no. i mean until we get tests out at scale, until we go slowly with

reopening, until we make sure we're taking care of our employees. we're taking care of them as parents who are balancing a lot with care giving at home, until we do that, we're not even doing enough in today's crisis much less preparing for what may come yet this fall and so i get concerned when i read in the news about places that are opening too quickly and people feel like it's safe to go into places where there are multiple people who aren't social distancing i look and say my gosh, there's almost no chance that state won't have a resurgence even within just the next month that's concerning. >> absolutely. >> what about china how do you think they've handled this from the beginning? >> i don't have all the data on china. i certainly follow the numbers, the stories, right i think you know once understood what this disease was and how,

how much it was spreading, i think then they did do the right things i don't know everything that happened before that i don't live in china. i don't live in wuhan, huibei province, i think once they knew what they had on their hands, they flew thousands and thousands of health care workers into huibei province they made sure people quarantined even away from their families because they started to see it was spreading amongst families so they have a very different system than we do. so they took a different approach i'm not saying that's the right approach for the united states but i think we have to look at what did they do what can we look at and say the rep lickable we're seeing people go back to work slowly in beijing businesses are learning who have offices in beijing how they might reopen in the united states. and so i think we have to look at what is the business environment there. what are people doing that seems right for their employees and

their businesses and then we have to look at the model to democratic models more like ours like a germany and ipg if you take the best of both of these, we will do the right thing by our american citizens >> what do you think will permanently change as a result of this pandemic >> i think so much is going to change i think it's hard to predict i think people are are going to be a little more grateful for being able to see one another and have physical contact with their friends. you know i think some of our businesses will change permanently in terms of how we think about work i think we're learning you can be far more flexible at work you don't have to be in your seat eight hours a day in a a building so work may become more flexible some hours in office, some out i think online schooling i think that's going to change as well. i think there will always be classroom time there should be. but i think we're learning very rapidly what online models can

actually work for high quality teaching and then the piece we still have to learn is how do you make sure everybody has access so i think there will be a balance and people will start to say hey, what could, how do we imagine teaching happen ng the futuing in the future that would make it far more flexible for students and far more interesting for teachers to teach and keep it interesting for kids so i think there are going to be a lot of changes in society and i don't think even think we can predict yet. >> our thanks to melinda gates who also told me that she and the gates foundation have been called on by new york governor cuomo to help reimagine new york's school system as we look towards reopening. she said there has not been a meeting yet and there are a number of different organizations involved but that was sort of why i asked her that question about what would change and why she went into schools there. the other point i wanted to raids on child care, which was a

huge theme she was pushing we had to cut some of it in the interest of time, which is that there isn't really a stimulus bill in washington the democrats unveiled their relief proposals republicans don't really have anything on that front, but child care system in this country, the fact that so many of these kay cares r already were struggling are are struggling even further. unclear whether they even qualify for some of the government relief bill, it's essential to think about how to get people back to work without mothers which is so often the case, who to say home with their kids another reason it's such a hot topic. so hopefully she's able to draw attention to that topic on capitol hill >> absolutely. i think more broadly, the tone, not dissimilar from dr. fauci today, that kind of points you to the market. if the market is rallied because it's hope ofl of a quick and smooth return to normal, the tone there from mrs. gates suggests perhaps the market is

is running in a bit too hot. clearly, if the it's responding to huge stimulus programs and whatever else, then that's not the case, but not a hugely optimistic tone overall there i didn't think >> you have to remember where she and the gates foundation is coming from. they fund and work with the doctors and companies and they're pouring money into rnds, particularly around vaccines then trying to scale them. so her point on vaccines, 18 months away. even with the new optimistic data out of companies like moderna. it's going to take so long to scale it up to hundreds of millions or billions of people with the reopening yes, i agree with your point from where they sit, the health risk is the number one driver here and it could only set us back if these reopenings go too ea early. >> well done now some breaking news on facebook jewulia's got it for us >> facebook agreeing to a $52

million is settlement has part of a class action lawsuit against facebook for those content moderators this was filed back in 2018. this will provide more than 10,000 current and former moderators who worked for facebook's venders in california, arizona and texas. this goes back to these allegations that these moderators had ptsd for having to view so much inappropriate and offensive content. settlement, $52 million. back to you. >> down a little bit in afterhours trade still to come, the president of the mta will tell us what steps she's taking to get people back on public transportation california phones offers free specialized phones... like cordless phones,

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update with sue. >> hello, wilf, hello, everyone. here's what's happening at this hour california's governor newsome says offices can reopen if safety precautions are followed. also, malls can open for curb side pick up and restaurants in some parts of the state will be allowed to host sit-down dining but bar areas in restaurants must remain closed takeout of alcoholic beverages can be sold as long as the customer also buys food. in nebraska, some polling places are empty for the nation's first in person primary since the heavily criticized election in wisconsin five weeks ago. many in nebraska skipped the polls and used absentee ballots and in britain, members of the royal family held a rare video call to pay tribute to nurses. the call included prince charles and many others. they all chatted with nurses from around the world. as always, for more coronavirus coverage, you can always head to cnbc.com. sara, back to you.

>> thank you up next, practicing social distancing on subways and buses? the mta installing new barriers and markers. we'll speak to the president of the mta and the steps she's taking and about the missteps critics have highlighted in the city's response. we'll be right back. (vo) since our beginning, our business has been people.

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the mta in new york city facing an unprecedented decline in ride irship amid the coronavirus related shutdown riders avoided crowded spaces have led to a revenue loss of $8.9 billion through 2021 throwing into question the future of the mta and transit systems around the nation. joining us now is interim new york city president for the mta, sarah feinberg thank you for joining us first on the finance part, you know you did receive money as a result of the cares act from congress what now does your financial situation look like? how deep is that hole e?

>> look, it's still a very deep hole and the whohole is growingy the day so our ridership is at about between 7 and 10% of what what it was three to six months ago so that hole gets bigger every day. incredibly grateful to the congress for what they've done so far, but need them to do more need the federal government to step up again. >> did you expect to be worse than this? better than this is it safe to be b on the subway at the moment? >> look, what we're trying to do is make sure we do everything we can to, everything that's in our control to make sure we're keeping the system safe and as healthy as possible for the riders who count on it those are the essential workers still traveling to and from work now and for our workforce. 51,000 men and women in new york city transit operate our buses every day. operate our trains every f day. we have to do everything we can

to keep them and our riders safe we're in the middle of an unprecedented overnight shutdown of the subway system closing every night from 1:00 a.m. to 5:00 a.m that is completely unprecedented to shut the subway system down in the city that never sleeps but that's the step we need to take at this moment to keep everybody safe >> question from your union. when the airlines got relief funds, they were forced to commit to no layoffs did the mta do the same? >> you know, i mean look, we are in a very tough position at this point. i will say if the, if the federal government can step up, if we can get what we need to make sure that we can run our system, we're not going to have to have to worry about layoffs this has been a testament to the workers at new york city transit and the mta. we have the best workforce in the country. they are our heroes and if we get assistance from the federal government, we won't have to worry about that >> do you think there's going to be a long-term impact on how

much people want to use the subway or if give an year if there's a vaccine and things improve, people will be back to normal using it every day? >> look, i think a vaccine is going to be a game changer for anyone in this space for anyone who thinks b about public transportation or is in local or federal government at all. but look, i mean we've got a ways to go here. i think ridership is going to come back. i worry about other cities more than new york on that front. it's just not an option for everyone to drive in new york so people are going to have to come back to the system because that's who we are. it's the life blood of the city for reason so people will come back i believe the ridership will come back. >> but it's also where millions of people go into very crowded trains to go to work that is is what the new york city subway system is. is it even possible to safely social distance? >> that's right. i keep reminding people of that.

i keep getting the question, how are we going to maintain six feet of distance on the new york city subway system and the answer is that's not going to be possible it's barely possible with ridership at 5%, 7%. you hit a crowded train even when ridership is that low so we are dependent on the medical experts and the health care experts to give us the feedback that we really need on, you know, if not six feet plus a mask then what basically when i'm saying to folks is look, we'll have to be completely vigilant about mask use and masks will be required in the system and then you want to put as much distance between yourself and fellow riders as possible we need employers to step up at this moment. we need them to help stagger the hours of their returning workers to help stagger the days of their returning workers, to keep a lot of people home on telework and to be understanding. i think most employers say they'd rather have their employees be 20 minutes late because they waited and took a

less-crowded train than on time and squished into a train like a sardine. that's not where we want to be. >> do you think masks and gloves and whatever else will be here to stay even if there's a vaccine? >> look, i can't predict once we have a vaccine i'll leave that to the behavioral psychologists and the experts. i think masks will be here to stay for quite a while i think hand sanitizer is the new normal, gloves are the new normal and everyone will behave differently at least until we have a vaccine, if not for longer >> so you've been saying that you know, you desperately need more funding from the federal government, sarah, what if that doesn't come are we looking at higher fares, decreased service? i mean, where do you have to cut? what adjustments do you have to make >> look, i just don't think that's an option for agencies like ours. i mean, look, we're the transit agency that's on the leading edge of this in the united states i think washington is close

behind and boston is close behind, but i just don't think that's an option for transit agencies and we are not an entity that makes a bunch of money regardless we can't just go selfless, right? we can only raise fares so much. we can only increase fares so much because our job is to move the public i don't think it will be an option for the federal government not to step up. look, if the federal government doesn't step up we can talk about the state stepping up, we can talk about the city stepping up, but the reality is that someone will have to step up here i don't mean to push that on everybody else, certainlythe mta will do everything it can to make sure we're doing our part on this, too, but for a transit agency, you know, there's just not a lot of options >> sarah feinberg, thank you for joining us >> good to be with you >> at the mta. >> we have a programming note, tonight 7:00 p.m. on cnbc a medical historian on how we'll know when the pandemic is ending plus, what the flight attendants

organization is saying about airplanes filled to capacity and how day care centers which are crucial to the reopening of any state will keep children safe all of that coming tonight at 7:00 p.m. with scott wapner. up next, powell on deck. the fed chair set to speak erhe wow morning and investors evywreill be listening the key things to watch right after the break. this is a tempur-pedic mattress. and its mission is to give you truly transformative sleep. so, no more tossing and turning... or trouble falling asleep. because only tempur-pedic uses proprietary tempur® material...

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disney pulling a move from the universal playbook in announcing it will stream the original broadway cast of "haltiti "hamilton" and while alexander hamilton and queen poppy don't

follow quite the same path, they do have some similarities including the idea that freedom of expression is worth fighting for and, of course, a killer soundtrack julia boorstin joins us to discuss disney's move. julia, and whether it changes the business model here. >> well, i would say, sara, that though there are those similarities that i somehow never realized between trolls and hamilton these two situations are different in that trolls which was intended to go into movie theater, the theatrical marketing campaign, billboard, tv ads had already begun. universal then decided to offer it on demand for $19.95 to basically $20 for a two-day download on the other hand, hamilton was supposed to be released in theaters in the fall of 2021 we are talking about well more than a year from now disney had not done any marketing yet. they could have left it where it was, but they decided to release it on disney plus, not for an additional fee, but to make it

part of the value of disney plus starting in july the one i think we're seeing here is disney trying to boost the value of its subscription service, trying to make sure its subscribers don't drop out when their free trials expire and also that they can use that as a marketing tool to help draw new subscribers. so really, that's part of the subscription play whereas universal was charging an additional fee both of these could turn out to be very profitable strategies, but what i think we're hearing now with hamilton is the theatrical release schedule will be very crowded in the fall of 2021 among other things. >> julia, i hope they start applying this to other movies, as well, the james bond one in particular, and perhaps top gun 2 which is due out and can they apply tiered pricing yes, we still want to release it to movie theaters, but if you want to watch it now you can and perhaps at a 5x price to what

would be typical for a movie theater ticket >> well, many people including myself might be willing to pay 5x to see a movie opening weekend from the comfort of my home i don't think that we will see that just yet. i think that we will see the films that are expected to be hugeat the box office to reall get people to leave their homes and maybe feel comfortable for the first time returning to theaters like a "top gun." these will be reserved for the theatrical window. i think what we will see before then is a shortening of the window, maybe a three-month window between theatrical releases and when movies are available at home and we may see it shortened to a month and i think it will be on a case by case basis and that's what the chairman of nbc universal said and the ceo of disney said they both saided theatrical experience will really be evaluated on a case by case basis. >> julia boorstin, thank you let's look ahead to

tomorrow investors will be closely watching federal reserve chair jay powell's speech tomorrow he's speaking via webcast at 9:00 a.m. eastern and expect to talk about current concerns facing the u.s. economy and take q and a, wilfred as far as the big focus here for basically anything powell says is newsworthy and the markets pay attention, too, but the fed has sort of done a lot for now i think the big question will be, and mike, you weigh in on this, as well. you know, is the fed preparing to do more how is it thinking about what it would take to do more? how is he looking at the reopening and whether that could lead to a faster, economic recovery and i don't think anybody is predicting a v-shaped recovery at this point, but how does he characterize it? >> yeah. and also, by the way, he's sort of pressured congress to do more on the fiscal side and to make more open-ended programs on that end of things in his last press conference and maybe he reiterates some of those points as well. >> before we go, by the way, i want to bring more context to a

lower third chiron that we had earlier in the hour that said dr. fauci said he thought students returning to campus by fall was a bridge too far. >> he said a vaccine returning by fall. we'll hand it over to melissa lee. "fast money" starts right now. i'm melissa lee. tonight's trader lineup, guy adami, tim seymour, steve grasso and karen finerman will appear in the box hopefully we have the dire warning from the ceo that sent a shock wave through the entire airline industry and the fed entering uncharted waters and how you can trade this unprecedented move. later, hungry for a deal we'll tell you what sent shares of grub hub soaring. we begin with the late-day sell-off sliding down into the close, the dow down 57 points