the education can't be the same, can it >> i doubt it. i mean, look, our teachers are doing a great job with at-home schooling we're getting, but it's really hard when you're not in the classroom with other kids it's lonely. it's difficult >> andrew, what should i pay >> pay, you dummy. are you asking me or dum andrew? >> see you, becky. make sure to join us tomorrow. "squawk on the street" is next good thursday morning. welcome to "squawk on the street." i'm carl teent ania with jim cramer and david faber futures are red as jobless claims are another 2.9 million that brings the total to over 36 million. nasdaq is back in the red. oil, interestingly is higher the out look has improved somewhat but jim, obviously, both yesterday and today, the market really wrestling with the

timing, the pace, the safety of this economic reopening. >> right i think that at this point, we know that the v is off the table. the struggle here is whether we have a u-shaped recovery or whether we don't have a recovery and i keep coming back to there are two things that can happen you get a vaccine, and you'll have a vee you don't get a vaccine and you'll have an l and i think on days like today when you see the unemployed numbers, you say to yourself, without a vaccine, this is going to be a very, very long slog, just like what chairman powell said yesterday chairman powell is giving you the straight stuff and this number should not be a surprise to people who listened to him yesterday >> when you think about a vaccine this week, jim, we have heard promising comments from pfizer and j & j today, the novartis ceo saying it's likely a second half 2021 story. what do we believe >> i think it's second half 2021 if at all.

it's a very, very difficult virus. but you know, that may just mean when you look at this, you have to make -- when is this pandemic ending when everyone gets the vaccine not just when we get the vaccine. so i do think that america, if it's fast tracked here, it will be -- you'll get it before the middle of 2021, but i do not believe the president's view that it's end of the year. just because the scientists almost all together other than moderna, do not believe that's the case j & j being the most bullish, still not until the end of first quarter. >> we come back to this question all the time, guys, for an obvious reason, because we're trying to understand what it's going to mean for economic activity and everything else, but jim, what about the scenario that by the fall or the summer, the rate of infection has dropped dramatically, even in

the hot spots, and there are the potential for antivirals that are taken far earlier and onset and have the effect of really limiting the damage from the virus. what about that scenario is that one under which people feel more comfortable participating in broad swaths of economic activity, so to speak >> yes, absolutely when you look at the piece today about remdesivir, this is regeneron's plan they have antibodies they can merge the two, maybe with remdesivir. i think what would happen is the fear would be taken out. you say okay, listen, i know i can get sick just like with the regular flu. i know i can die more likely than the regular flu, but i also feel i'm more confident. and yes, it would be a game changer. we have to have at least that. that takes a depression off the table. if you want to take a serious recession off the table,give u

a vaccine quickly, and i say that because the amount of money pumped into this economy, it's just incredible. if we get speaker pelosi's $3 trillion, wow. you put that on top of maybe something really good scientific, and we're going to see why the market is going to do the opposite of what stanley miller and dave tepper said yesterday. although if tepper sees this, i think he would change his mind what i'm thinking about, david, is i balance between the optimism of science and a belief in science and the pessimism of these unemployment numbers which just are devastating and feel so 1931-like. waiting for the hoovervilles this is terrible >> yeah. >> the numbers are - >> so much - >> yeah. >> hard to put into words. jim, i thought of you this morning. because danny meyer talks to bloomberg and says he has no interest or excitement in having

a half-full dining room while everyone is getting their temperature taken and wearing masks for not much money he won't open his new york city dining rooms until there is a vaccine. >> he's dead right if you look at the tennessee pledge, the most likely to be used, you're talking about maybe 40% of the tables in you would have to more than double the price you charge people the serious questions when people come in, where you have to ask them, have they had it, do they know anybody who had it? then you take their temperature. and then you come in for corona at my place. it's like a trifecta of bad among the tables, the questions, and you can't sit at the bar, by the way. that's another great thing the bar at manhattan is one of the greatest places on earth i mentioned yesterday as my favorite restaurant. it's devastating danny knows hospitality. it's the most inhospitable thing in the world to have a guy with gloves and a mask saying do you or have you ever had this virus? i mean, no, people won't go out.

and danny can't do that great -- i had good numbers last night in my takeout business, but yeah, sure, my little operation, good numbers is $700. take it. >> that's not going to carry the day, jim not $700, and a lot of restaurants are saying the same thing, which is it's just enough to sort of keep them top of mind for their customer base, but it's not at all about actually making money that not to say as well, carl, plenty of critics who also worry about a second wave in the fall, not to get too dark here, and that we still don't have a plan from the federal level in terms of how we're really going to deal with that we watch states obviously making their own wave here, making different decisions to a certain extent in terms of reopening their economy. some bases on the national guidelines others not but this lack of an overall plan, which has beleaguered us from the very beginning of this virus, continues to be a concern, if in fact we do get, you know, you have all seen the

charts of the 1918 pandemic where the second wave was worse than the first >> i'll be interesting to hear dr. bright, dr. rick bright, the ousted vaccine official, going to testify in about an hour, guys not -- i mean, to offset some of this gloominess, jim, mastercard, we believe we're starting to see the transition from the stabilization phase to the normalization phase in some markets. >> it was two weeks. key two weeks. because this is when we're trying to open oil going up is actually, sure, the balkan is coming down, but there has to be a little bit of demand i do see that there are more stores opening up. and we have a recommendation, for instance, today, best buy. i don't know how that became essential, but a nice upgrade. i think some of the opening is good, then i see nick's bar, i posted on twitter, guys lined up, no mask. i mean, that's where you get the

second wave. and david, when the war bonds were sold in philadelphia, and they had a giant parade because they said, you know what, we're tough. we're tough philadelphians no, we were idiotic philadelphians st. louis, on the other hand, had no crowds and half the number of people, so eric schmidt, he was great. he was saying look, the only thing we have in our arsenal, masks, social distancing, washing hands. okay, well, there's three things we better do >> true. it does appear wearing masks is probably a beneficial thing to do remember at the beginning, we were told not to because we had to save them for the professionals. and now it's become more of a political statement one way or the other whether you wear a mask or the other, it seems. jim, on the credit card data, though, the hedge funds follow this stuff closely, all those who mine data, for example the aggregate credit card spend

seems to have shifted but it hasn't declined as much as some would have thought we can imagine the ways in which it shifted, clearly, nobody is going to restaurants, but they are buying other things. even at the lower end, payday lending down pawnshops down subprom delinquencies down, not up, surprisingly that may be the result of the unprecedented aid that has come. and that might disappear come let's call the end of july when the $600 additional benefit for unemployment stops >> look, i had speaker pelosi on this phase two needs $3 trillion more money in people's pocket for precisely what you just said you have got to get money to people who are, let's say, on the margin, going to have their businesses closed because ppp may run out after a certain point. i also think you have to have the states have more money

this is killing the states and we don't want the states to have to file bankruptcy. that's not the way the country works. so i don't understand what the hold-up is i know $3 trillion is a lot of money, but when you listen to chairman powell yesterday, all you can say is thank heavens so many companies refinanced. they drew the revolvers down i don't want to be a bank in this country, i don't want to be wells fargo, i don't want to be charlie sharp who bought a ton of stock, i don't want to be wells without another $3 trillion coming at this country. >> well, you know, jim, i would love to quickly come to the banks because we all watched them yesterday of course, wells fargo being the worst performer. $22.50 right now where is the yield let me take a quick look 9.05% is the yield what is that stock saying? market cap there is, what, $90 billion. it's hard to imagine at this point, unless there's something there that a lot of us are

unaware of >> i thought what it says is vice chairman quarrels is going to say these banks need to keep their capital. they can't give it out and you know what the real tell is, david, when we heard that pnc was selling off one of the pristine fintech like companies, blackrock, because they wanted to buy more banks. blackrock stock went up 80 points pnc stock went down badly. pnc i think needs that money they are a big small business lender small business is what's really hurt you own five planet fitnesses. maybe you own three subways, four mcdonald's or maybe you own something in the mall, or a small business is just being crushed. especially if you weren't deemed essential. meanwhile, costco is essential and target is essential and walmart is essential let me tell you, you're nonessential if you are in that part of the gauntlet i'm worried. >> your point is, what, wells

will have significant potential things -- i mean, that it's not going to be able to pay its dividend because the federal regulators are going to say no more dividends paid across the boards for banks the prospect of negative rates is a bad one, even though chairman powell says it's not going to happen. >> i think it's future loan loss wells did a lot of lending there. whether it be just the construction, which is down so much or classic small business loans after they went through ppp. so i just think that -- look, do i want that? do i want a replay of 2007, 2009 no, but the fed really doesn't want it. you have to get the money into people's hands, or again, david, we do whatthe remdesivir cocktail, which would be terrific in terms of where we are now. it will eliminate some of the fear of going out. look, it's amazon versus everything >> you're right, jim

we talk about the challenge of covering the impact on small business when our job is to cover public companies but loan loss provisions are the vessel through which we'll see what's happening in the small business world by the way, as we're talking, the president tweets, good numbers coming out of states that are opening america is getting its life back vaccine work looking very promising before end of year likewise, other solutions. >> did you give him the mastercard numbers >> the president's optimism. >> give him the mastercard numbers and i'll say it's possible j & j has it. that would be the company. secondly, moderna, and you come out with an optimistic two weeks and we have to cover it. david. >> yeah, then we're off to the races again. >> don't be so cynical >> not to mention, what will we add to the national debt over time what's the fed's balance sheet going to look like what is that really going to mean longer term for this generation coming up now in terms of the obligations they're going to have? i guess we worry about this once

we get past the virus? >> they have to refinance. secretary mnuchin said there was no appetite for long-term bonds. having traded bonds, i think there is but i also worry about the second wave because the mask thing, i mean, how did this become political you can do the numbers i know the mask isn't all that effective, but it's certainly more effective than me coughing on you in an airplane. david, can you imagine - >> i think we knew i think we knew once we saw this happening in china, we were starting to have a discussion about how our focus on individual freedom was going to make mandatory masks a challenge. that's not a surprise. >> focus on the strength of the country makes masks a necessity. how is south korea, taiwan i mean, taiwan is a country, i know a lot of people want to move to taiwan they couldn't find it on a map >> what do they have, 25 million people how many deaths?

incredibly low number. >> what is their number? >> i think it's six deaths >> a lot to get to there's cisco, of course, on with jim last night. news out of 3m we'll get to all of that as we keep our eye on jobless claims as well. back in a minute usaa was made for right now. and right now, is a time for action. so, for a second time we're giving members a credit on their auto insurance. because it's the right thing to do. we're also giving payment relief options to eligible members so they can take care of things like groceries before they worry about their insurance or credit card bills. right now is the time to take care of what matters most. like we've done together, so many times before. discover all the ways we're helping members at usaa.com/coronavirus discover all the ways we're helping members our retirement plan with voya gives us confidence... ...we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. i'm good at my condo.

well planned, well invested, well protected. voya. be confident to and through retirement. 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.

employees that will continue to work from home you'll have many that will get back to the office, and then you'll have some that will do a little bit of both i think it will change things like how we thing about talent in the future. i think this has given us confidence that we can hire talent anywhere and have them participate productively on teams regardless of their location >> what a conversation with chuck robbins, of cisco, with jim. and the guide which on revenue wasn't too bad >> it was really good. second only to data dog, which has been the best. what i would point out is that they are the corporate -- also known as enterprise -- zoom. they have that business locked up for instance, when you saw dr. fauci talking to senate, that was not zoom. that was web-x that business is maybe the strongest of any large company's business line that i have seen because it's the most secure because it's what maybe all the universities are going to use, a lot of big companies are going

to use when you see these banks where 95% of their people are off site, they use web-x more than they use zoom. more secure, no servers in china. they are friends, these two guys, and everyone loves eric, who is from zoom but i do think that there is something going on at cisco. it's really tapped into this next generation that we're seeing right now, genie out of the bottle, work at home next year, it will be 5g very inexpensive stock 3% yield fantastic management this is one for people who are listening to tepper and listening yesterday, i say is that really expensive? the answer is no no, because it's part of the new universe it's not a hidden stock. it's a big dow stock >> jim, are you concerned, though, about the cap-x cuts we see time and again from so many corporations hitting overall the ability to bring on services like cisco has to offer them

>> well, i think that it has become -- i think this is what chuck has really been saying, it's a necessity they would love frankly not to spend, but they can't afford it because they don't want to get their workers covid. look, that's the theme i mean, that's one of the reasons why people say you're so worried about covid. the country, the world is worried about their employees getting covid. so that's why this thing is not stopping it's accelerating. >> all right we have ten minutes until we get an opening bell for this thursday it's been a down week so far we'll see what the open holds. by the way, stay tuned as well next hour, we'll have senate minority leader chuck schumer join us. he'll be the guest here on "squawk on the street. 'rba aerhiwee ckft ts.

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.

welcome back time for a mad dash as we get ready for an opening bell about eight minutes from now jim, a little chipotle on the menu for you >> let's talk darwin for a second i don't know if you took that biology course in there. one of the things that darwin was talking about is patience. and sure enough, chipotle

adapting like no one else. getting a huge percentage of their business off-site, contactless. going to do $2 million a unit, which is really incredible after what they were doing before covid, and i just love the way that the setup is for chipotle going to 1,000 nicole miller reagan is my favorite analyst in the group, she thinks it goes to 1100 wendy's, breakfast is working. that matters starbucks putting their foot down to the malls, you want us, we're negotiating new leases down that's the new theme the strong that are surviving are getting the leases knocked down that's just going to accelerate their profitability. again, stocks that look expensive will turn out to be cheap. >> yeah, you're right. the tenants are in a very strong position with their landlords if in fact they are part of a large organization that is going to be able to sustain themselves they even, i have heard some are

paying rent now but saying but we want a 50% reduction for the last four months, but you can apply it later at your discretion, but regardless, your point is well made, jim. which is they're looking for opportunities here to cut their rent essentially >> yes, and by the way, chipo e chipotle, nobody wanted the chipotles. now, guess what, they're thrilled to have them because it's got a store front and there's people behind it >> yeah. jim, and as you point out, evercore takes wendy's to outperform on the strength of breakfast. we'll take a break richard gonzalez of abbvie is going to join us, talk about allergan, the impact of covid and a lot more stick around

saying is there could be significant downside risk. but on the other hand, i think if you look at the economy, and again, this is not a traditional situation of economic issues

so as i have said before, the economic models don't really predict this that if we open up carefully and we open up in a safe way, i think you're going to see this is going to be a pretty bad quarter, but then we're going to recover, and we're going to have a sequence of better quarters, and as the president said, our expectation is we're going to kill this virus, and next we're we'll be back to having a great economy just like we had before. >> the treasury secretary on fox last night, jim. really summing up one of the most powerful bull cases, and that is exogenous shock does not equal an economic imbalance, and classic business cycle dynamics don't apply. >> i think that if there's more, we need trillions to open the next level, and we open up carefully like the secretary said, then i don't think we'll necessarily get the best economy, but we'll get a good economy, i do. i think what david said about we get the antibodies so you stop fearing every minute of your

life, and we get people to be sensible, as boris johnson said, stay alert then it can be good. but we need sensibility. i don't know how to enforce being sensible i don't know how to do it. >> well, there's a lot of people who aren't fearful at all, jim which in some ways i guess could be seen as a positive, and i think you would see it, though, as being reckless. >> i do. look, we have doctors on tv who have gotten it, and wow. i mean, devastating. i thing we all know by this point, the state of new jersey, it's a terrible place. we all know people who ahave gotten sick. these are young people or you see the devastation in the nursing homes, the veterans homes. i just find this stuff, you look at the obituary page it is overwhelming and maybe i can just try to say, you know what, i'm a soldier on behalf of our country, but what i really am is a person who just wants to get to work, do his job, and go home and i think that's what most

people want to do, but we're actually afraid of mass contact. just afraid to go to the eagles games. i don't think that's a bad word to use, afraid >> yeah, i think you're right on the money in terms of knowing someone who has passed away. i definitely have, jim, and there's got to be a race to ease some of the fear there's the opening bell, coming off the dow's decline yesterday. lowest since april 21, down 4.5% over three days. a lot of talk about levels now and the battle between 2930 and 2790 you care about that? >> i am also looking at vix, trying to figure out where the vix is coming in i'm trying to figure out how oversold we are. these are the technicals that i think are guiding us because we're in a moment where emotion is so high, you have to have something to hang onto i had thought if oil were to

reverse itself, it would show some strength, immediately count acted by the jobless claims. i want to share the president's optimism because it's the churchillian way to approach things, but i put the health care companies on, and they're more sicircumspect. but when you speak to tech, what's doing well in tech? companies that are making it so you can run your business from home that's the strength. it's amazing, there are a lot of companies in on that, though >> guys, i don't care about fib anotchy, although i did enjoy his concerto in d minor, but looking overall at the market, jim, do you stick with that covid index thing you have put together >> absolutely. >> which obviously has done quite well >> absolutely. it's made up of companies, $11

trillion, now about $12 trillion, of companies that do well in this environment they recommended mccormick today. let's talk about mccormick today. you're at home like me. you're cooking, like me. you're awful at it, like me. you know what? frank's is the answer. i put that stuff on everything it doesn't matter. everything i make, i put frank's on because i'm so sick of the same stuff i make every night. i get the chicken, i put the steak, maybe some pasta. frank's, frank's, frank's. that's the mccormick's way general mills had the best numbers i have ever seen general mills have this is people baking, cooking. that kind of things. they're snacking way too much. that's going to do well. and then there are all the companies involved, whether it be logitech, which makes the equipment to work at home, cisco, nvidia, which makes it so the cloud which is really overburdened does fine, shopify,

which is a company, that stock is way too high, but you know what if you don't have a store front or you can't pay your rent, you go on shopify. the index is good because all of those companies, it's nirvana for them they thrive on an introvert's pa paradi paradise being home, cooking, playing solitaire. there's not even sports to watch. david, how much time do you spend over the stove >> i clean the stove that's my role here in the household. >> you're playing a role >> i don't do -- i play a role don't do a lot of cooking here we have sort of assumed some traditional roles, i guess, but i do spend a lot of time cleaning way more than i ever thought was possible, in fact. >> buy clorox. yesterday, i mistakenly wiped my face with a clorox please don't do that i have been dousing my eye it was one of the most ill-advised moves i have made. biotech is great in the intex. all of the health cares are

fantastic. abbvie is great. we're going to speak to them i think you have to recognize that the country is not a country that people think it is. when i hear, look, i love dave tepper i think tepper is unbelievable i think some of the things bringing down the market are not -- they're not in my index he's got overall big picture guy, but there's no banks in the index, and i think they're a threatened group but cisco was so good last night. i want everyone to listen to chuck robbins. mr. president, go read chuck robbins. the man, by the way, the company is giving away $300 million for this pandemic. just go listen, and you'll understand it's a completely unexpected windfall. he didn't want it. he's a compassionate man, but when it comes to secure looking at me, i'm looking at you, dr. fauci, senate, it's web-x, and it's just went from being an okay business to being maybe the

best business. that stock is inexpensive because of something that happened called a pandemic >> did robbins address china at all? the president was on fox this morning saying he does not want to talk to president xi right now. we have -- the fbi has warned about them hack nothing to our biopharma research we promised reports about the origins of the virus how much do you worry about the beginnings of a new cold war >> i do worry, but chuck was the guy who got me worried chuck pulled out of almost all of china he was a visionary saw it coming. told me constantly, look, this is not where you can make your bed. i do think, we see the south china sea, see malaysia, you see the potential combat if the president were to say -- i prodded peter navarro through becky quick the other day, saying why don't you make taiwan a strategic ally that would get the chinese going

crazy. i think it's all bad, at a time, frankly, when we're not strong and it would be better to see some cooperation everybody kind of needs to stick together because this thing is splitting the world. we can't have that happen. we don't want social unrest. see the story about the tattoo parlor with the guys with the a rr r-15s in front of it that's not what we want. you want it in. >> that's suboptimal, as you like to say. >> have you thought about getting a gun? >> do we have to have that conversation again really >> well, yes >> didn't you ask me already >> i mean, my best friend said jim, i can't let you get it because it will go off and you'll shoot yourself by mistake. it has occurred to me when i see guys with ar-15s defending tattoo parlors i never knew those were essentially. just asking. >> as carl had said earlier, i think the ideas that this has broken down to some extent at least in terms of people's

political leanings is unfortunate. if i could come back to a couple groups we have been keeping an eye on that haven't been performing well. the banks, we talk said about them jim talked a good deal about wells fargo. they continue to be quite weak this morning, and the airlines i think delta talking about losing what is still as much as $50 million a day. american hitting a new low yesterday. phil lebeau, our expert on these, having talked about it as well i don't know when somebody comes back to these names. it has been remarkable to watch the ability to raise capital with so many companies under pressure they're relying to a certain extent on the government, but what happens some september when the money runs out >> right and we know that david calhoun, the ceo of boeing, started the big guessing game of which big airline is going to fail that was ill-advised ill-advised thing to say >> bill miller, jim, yesterday

i don't know if we have time to play the sound, but he did say if you're betting against the airlines, you're essentially betting against a vaccine. let's take a listen to what bill miller said on our air on wednesday. >> i think if you look at the overall market as a market, we're trading right now at around 17 times the consensus on bottom-up earnings estimates for 2021, which is about the average for the last five years. so those estimates may be too high or they may be too low, but i think that gives you a sense of what analysts are thinking and if that's the overall market number, i would call it -- you know, it might be extended given the fact we have a chasm of bad news to go over here, but i don't find it as dramatically overvalued as david or stanley do >> wow >> interesting, jim. again, this notion that valuation matters a lot less than positioning and flows and fomo >> and bill miller knows the airline group. the secretary mnuchin made it clear this is a strategic

industry not essential but strategic. which means they're not going to let it go, which means they're going to let it ride until we do get a vaccine. these companies do all owe a lot of money, but i thought secretary mnuchin is more powerful than david calhoun in terms of who shall live and who shall die. still trying to figure out what is the edge of boeing. i think bill is driven why? because he got me at amazon at 125. he did he recommended amazon. and then he recommended, then he recommended. stan likes it, too >> all the way >> that's important. amazon is the story of our generation i got five amazon boxes in front of my house, david when i get back, carl, i'm not going to be worried about it not even going to use gloves out over 24 hours. >> you're going to go for it >> you don't need these, man i'll save a pair for you how many of these do you go through a day. >> the prayers, whatever you do around the box

careful with those no clorox wipes for the faces. real quickly, we'll get to abbvie in a minute m&a has not unexpectedly been quiet, but the one deal we're keeping a close eye on continues to be the conversations between uber and grubhub not too much to add this morning other than there was some reporting yesterday about a 1.9 ratio that uber might have been offering here. you have a sense the 2.15 ask in terms of the ratio, 1.9, but that 1.9 shares of uber, that may be as high as they're willing to go. unclear whether that actually has been made as an offer at this point and we should know something in the next couple days either they're going to figure out a way to get the deal done, or my understanding is from people familiar with the sit wigz that they're going to end those conversations. just a little bit of incremental information there on that deal if they get it done, jim, the question then will become

antitrust, which is not an insignificant question given the size of both businesses even though they're both losing money in their respective businesses >> matt has to make the deal or face the wheel let's brin in -- i want something good tell me something good tell me something sweet. how about abbvie let's bring in abbvie ceo richard gonzalez rick, welcome to appearance it's great to have you tell us about the new abbvie, because boy, does it ever look different now than the allergan deal is closed >> nice to chat with you and thank you for having me on the show it's an exciting time for our organization maybe before i go into the acquisition, i wantto make sur i acknowledge and thank all of our employees. at abbvie and at allergan, who worked tirelessly over the last several months in tough circumstances to get us to where we are today i'm extremely proud of both organizations. so let's talk a little bit about the acquisition.

i think one of the important things to think through is when are we doing this acquisition and what is the status of the business and i would describe it as we're doing this acquisition at a point when abbvie is very strong if you look at our performance since our inception, really, 2013, we had revenues of $18.8 billion. we have grown that to last year $33 billion or compounded growth rate of about 10%. we have grown earnings at almost double that rate, 19%. we built a very strong r&d organization that's going to be critical in the new abbvie, but that r&d organization has created 14 new products last year alone, they generated $9 billion of the $33 billion. as you commented on your show the other day, obviously, we had a very robust quarter in the first quarter, so the business is accelerating in its growth as we move forward here we're doing it at a point of

strength allergan is a great company, has great products and great people. we're excited about bringing these two organizations together and there's a number of things that the allergan transaction will do for us and for the new combined company it clearly diversifies our revenue base in a very significant way. it adds a couple of additional major growth franchises to the business, so we'll have a total of four. immunology, oncology, aesthetics, and neuroscience will be the four major growth drivers for the company. it clearly financially is a very important transaction and attractive transaction as we said, in year one, it grows to 20%, over $2 billion worth of synergies that we're going to extract from the business to drive profitability even higher, and we're obviously a very profitable business as well and has a positive roic near one, which is unusual for a transaction of this size

we're tremendously excited about the opportunity. and i think we'll do well. >> so rick, one of the things people are worried about we actually are having in this country a healthcare recession because some rules and shutdowns i think are wrong, i don't know if you think are wrong, but when you have people like dermatologists who know how to wear a mask and know how to wear a gown, they should be doing their business i want to know whether when the health care recession ends, whether you'll see a surge in pent-up demand for botox, allergan's chief product, that will make it so the next quarter or the quarter you're open will be by far your biggest ever. >> well, i think it's an excellent point, jim one of the ways to think about it is we're going through this phase where we're shelter in place, so patients are reluct ntd to ant to go to the doctor. that's what's driving the demand curve. it's across the board. if you think about our business, the abbvie business.

we primarily have chronic care products products that people take on a long-term basis. and the base continues to be very stable, but what we have seen is a reduction not to zero, in fact, still above 50%, of new patient volume because patients aren't going to physicians' office as often or some physicians' offices have closed. as you look to the recovery, every industry is going to be different. every business is going to be different. to the point you just made, i think if you look at our business, our prescription volume is driven by physicians who are very skilled at using ppe. it's a low-density environment typically. and so it's a low-risk environment. so i think we'll be on the leading edge of that recovery. what we have projected is we're going to see some impact in the second quarter it will vary by parts of our business but we expect to see a recovery in third and fourth quarter, and obviously, as you heard from our

earnings call, with the momentum of our business in the first quarter, had covid not happened, we would have been raising guidance what we have essentially said is we can maintain guidance despite the impact on the abbvie side of the business and we'll be announcing what the allergan piece looks like in the not too distance future. >> i know my colleagues probably want to ask about humira i want to comment and get a sense from you i woke up this morning with a bell ringer of a migraine, which is highly unusual for me, because i'm the spokesperson for the american migraine foundation did i say i can't do my workout, my work, it's 3:00 a.m no, i popped a new drug, 50 milligram, and 40 minutes later, i had no migraine. anyone who suffers, the 30 million people, knows migraines cannot be treated acutely, and this drug came along how big will this drug be for you? >> this is a very significant opportunity. let me say, we appreciate your

leadership with the migraine society. you have been a great spokesperson for them. this is an important market, large market it has huge unmet need there wasn't an acute product in the marketplace. this is off to a very good start, allergan has done a nice job of launching that. there has been some covid impact, as with all new products, but we expect it to rebound as soon as things return to a more normalized level and i think one of the unique things about abbvie's position in this market is we're the only company that will have a portfolio of assets for migraines. so we have ubrelvi for acute migraines. you get a headache, you take that then we have botox therapeutics which is for prevention of migraines, then in twiment, another oral cgrp which is a chronic product. we'll have two orals and an injectable available to manage migraines. >> such important therapies,

mr. gonzalez i want to turn, though, to the current environment and just overall how you're managing the company. for example, the company's salesforce when do you see them returning to work? what impact is there of not having people on the road in doctors' offices selling your product? your office workers, your scientists, give us some road map here in terms of how you're thinking about abbvie and how you get people back to work, so to speak, not from their homes >> the first thing i would say is we're operating very effectively in the current environment, which frankly, if you had asked me ahead of time, could you operate with this level of remote working, i would have told you probably not so i'm impressed with the efforts that have been put in place and the effectiveness of those efforts. having said that, we are in the process of preparing for what we call return to office, where we're going to start to bring people back in a phased approach we're going to make sure we reduced the density in all of our larger office buildings.

operations are continuing to operate effectively right now and have throughout the crisis sales force, what our plan is there is, again, to equip our salesforce with personal protective equipment, temperature checking devices, they will be tested so that we're comfortable no one is positive before we deploy people we'll do it on a state-by-state basis as the health authorities deem it's safe to do so. and we'll start to return in that phased manner now, i would say even before the crisis, probably 50% of our detailing was e-detail or remote detailing. so we do believe it's important to get back to direct interactions in a different way, where clearly there will have to be social distancing and personal protective equipment associated with that, but we think that's an important process. on the r&d side, we have seen some impact on our clinical

studies from an enrollment standpoint, which is logical we're starting to see that ramp back up. we'll obviously deploy people to make sure that starts to ramp back up, and we're in the process of ramping up our discovery laboratories. process discovery laboratories those are low density population area where typically one or two scientists work in a laboratory area those can be brought back up safely and effectively i think we'll be back in a position where we do it in a phased fashion over the course of the next three or four months we may not fully go back to 100 % office density before there's a vaccine, but i think we can go back to some reasonable level of office density there's some discussion that your anti-viral agent for hiv might have some effect on

co-vid is there any evidence pointing to that? >> well, there is evidence pointing to it the data clearly shows that it binds to covid-19. i would say it binds and there's -- if you look at all the agents out there now, none of them bind at the level that you would normally want an anti-viral you would want very high levels of binding for an anti-viral agent to have the kind of effectiveness, and i'll talk to that in a moment but it's in a large study being conducted by the world health organization has four arms associated with it two of the arms are caletra. we should get results from the study, i would say in the next 30 days. and i think that will answer the question as to whether or not it has been used as an effective therapy, and we obviously need as many therapies as we can to deal with this virus

the other agent that's an on market product for us is a btk inhibitor. some evidence suggests it might blunt the storm. we have a study ongoing to look at whether or not it can have that kind of impact. the other thing i'd say is we have deployed our anti-viral group to look and see if they can develop a highly potent anti-viral agent we've been very successful with hiv. we were a pioneer in that field. we have also been effective with hcd. we've deployed that team to look for developing highly potent anti-viral agents. i think if we could combine a potent anti-viral or combination of mechanisms with a vaccine,

this would not be a very scary disease at all >> wow i'm going to leave it that that's the most positive thing i've heard and i know you're not giving hyperbo hyperbole. i want to thank the chairman and ceo of abbvie. sir, if you're right, the world is going to change thank you. >> thank you let's hope so, jim dow is down almost 400 points. we're below 2790 a lot of the levels we've been watching banks materials, industrials, energy leading us lower. when we come back we'll talk to chuck schumer when "squawk on the street" comes back when you take align,

you have the support of a probiotic and the gastroenterologists who developed it. align helps to soothe your occasional digestive upsets twenty-four seven. so where you go, the pro goes. go with align. the pros in digestive health. and if stress worsens your digestive issues, try new align digestive de-stress. it combines align's probiotic with ashwagandha to help soothe occasional digestive upsets, plus stress that can make them worse. and try align gummies with probiotics to help support digestive health. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice.

but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today. don't get mad get e*trade and start trading here's the thing about managing for your business.s when you've got public clouds, and private clouds, and hybrid clouds- things can get a bit cloudy for you. but now, there's the dell technologies cloud,

powered by vmware. a single hub for a consistent operating experience across all your clouds. that should clear things up. regional banks the source of some pain this morning down 4 % six-week low it's on pace for the fourth worst week in the history of the set. when we return, senator chuck schumer on phase 4 and what needs to happen to get that legislation going in aomt. men

there are times when our need to connect really matters. to keep customers and employees in the know. to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us.

what's on mad tonight? >> okay. we have planet fitness if you look at the states that have under 10,000 cases, i hope they let planet fitness open this is global we're going to talk about issuance and alteryx. it allows you not to be glued to your spread sheet. >> jim, you've been helping us every night. we'll see you at 6:00. mad money at 6:00 p.m. on cnbc good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber and sara eisen coming to live from separate locations second day of a selloff. we've lost 23,000.

jobless claims come in nearly 3 million bringing the total to 36.4 million claims in the last eight weeks. joining us this morning, salways good to see you both >> thank you nice to see you. >> jim, you've really worked hard at trying to ferret out areas of positivity and where the market is sniffing out growth are you running out of ideas or not >> well, you know, this is a scary thing. and no one knows how it's going to turn out and there could be bad outcomes i certainly don't know but i do think the right thing to do is lean toward the bullish side here. primarily for two reasons. i like two things the most one is the level of fear is just almost unprecedented and we have the normal fear that you get in a recession about

losing your job or losing your life savings in the stock market but we also have the fear of losing your life or the life of a loved one. and so we've kind of put human emotion on steroids. whenever there's elevated fear, that's a good time to buy risk assets overall and then the other thing is just the policy response. you know, is also unprecedented. it's not just don't fight the fed. it's don't fight the fed, don't fight the treasury don't fight bond vij lanties in every corner of the globe. i just think that probably things as bad as they are, are going to turn out better than our worst nightmares and we've got a huge amount of policy support underneath that. so i'd be picking away like this week when it's bad, at adding a little bit to positions. >> interesting, jim. gabriel gabriella, howard marks says all great investments are made in discomfort and there's a lot of discomfort

now. how do you work with jpmorgan's argument >> we've been thinking about separating the long-term post co-vid investments from the shorter-term co-vid world we're still going to be living in for another year or so if we think about the long-term, we believe we'll get through this the economy will recover earnings will resume their long-term trend and equities are so important for long-term portfolio growth, even more than normal now that yields have fallen even further year to date we have to square that with the uncertain next 12 months or so while we try to figure out how to reopen, what the policy response is. and with valuations that after the april rally had gotten a little bit stretched and left little room for disappointment so we felt like we still need risk assets for the long-term, but it was not the time to ramp up the dial quite yet and go all in on risk so we still focus on quality bonds for protection and i'm really thinking about sec tomorrow and regional

differences for this co-vid world we're going to live in for another year >> small caps down 10% this year almost double the overall market they're down 30% this year that's double the loss of the overall market is that a warning or opportunity? >> i think it's an opportunity, as they say. the s&p 500, the broader market whether you look at small caps or cyclical sectors or high bait investments or the entire international stock market, they are all down a lot more, and far better valuations even from a long-term standpoint, and they're also incredibly underowned everyone now is piling into gold at 50-year high to the overall commodity price index. they're in defensive sectors of

low vol and investments. cash, overpriced bonds i think these other areas of the market outside of the s&p 500 and a good part of the names as well represent good, long-term values that if and when eventually -- >> like what >> turns to more optimism, people are going to find out they're going to need some of that >> well, i think rather than -- >> which kind of sectors >> well, i think -- i just rather than making a call, i got a few favorites in there, but i would have small caps. we're overweight in international markets. have a tilt in that direction. we also take a swing here at the financials i like the home builders just recently i think there are some areas that just represent remarkable values being priced in a time of intense fear that probably i

don't know what might happen over the next three to six months, but i think over the next 12 to 18 i'm going to be pretty happy by owning some of those. >> financials even with the destruction we're seeing this week, the continued skepttism around whether they're going to be able to pay out their dividends and the questions about negative rates you still want to go there >> man, they're down a lot they reflect a lot of bad news there's a lot of bad news already in the stocks. and let's not forget that we've got an incredibly clean banking system we cleaned it up after '08 and kept it so clean from a financial standpoint so there's not the same kind of risk that we normally have in these. and yet, they're being priced that or worse. and i think some of these things like suspension of dividends, that will pass who knows if it will ever come to pass and even if it does, that too, will pass. i think it's okay to own some of those right now.

and there's -- i really think that as bad as it is, and it might stay bad, it probably turns out better than everyone currently imagines and if it does, those financials could move mighty fast to the up side >> yeah. interesting. everybody is watching the banks this morning especially some of the credit card data. i noticed b of a said total spending the last five days of march was down 36 year on year for the five days may 3rd through the 7th down 10. is that a legitimate sort of stabilization, getting back to levels that are weak, but are levels that we can live with for lack of a better word? >> yeah. in our own chase institute publishes credit card data which showed a significant drop in march and april. and what we're really watching for is the kind of recovery that we see in may, june, july, and tloit the rest of the year and i think one of the reasons

that makes the recovery a bit uncertain is not just the evolution of the virus or what decisions individual states make about reopening but also how individuals react to that. and so there's an important confidence factor here that's quite unknowable and it's going to be really important to monitor a high frequently data like credit card data to see exactly how confident people feel to return to normal life for us it's really a story about still a slow recovery. a u-shaped recovery over the next 12 months and then a strong rebound after that once we have a distributed vaccine and effective treatment. it's part of why the next 12 months is uncertain and we need to be careful with the companies that are going to be able to survive and thrive in this kind of environment >> right jim, finally, our viewers are getting pounded with information about what the big dogs are saying right, druckenmiller, buffett, tenner yesterday, larry fink,

and powell, obviously. i wonder how you process that. if you -- if their words have meaning, historically, given the timing of their comments versus what we later find out were the periods in which they put money to work. >> you know, i think it's -- they're all -- they all should be listened to they're incredibly successful investors that have been through a lot of market environments so i think it's well worth listening to what they have to say. i certainly do but at the end of the day, what i see kind of happening late is i think it's adding onto a lot of the fear that's currently out there. and so i certainly take that information in, but i just -- i just can't escape the fact that if you think we're going to get through this if the world's not going to end, then you can't wait until all of the uncertainty is gone to buy because if -- once it becomes all clear, there won't be nearly

as good a buys to have or even if there are buys by then, the market will move long before that i really think in the not too distant future, states reopen, and we start bringing on activities back that people are going to become more and more comfortable that the virus and the economy can co-exist in a relatively not no risk, but in a relatively low risk way. i think that's what's going to happen >> yeah. well, we're certainly going to get case studies on that even if your neighborhood. we love seeing you both. guys, stay safe. we'll talk to you soon >> thank you >> stay safe as well thanks, carl jim'scomments go right to that heart of the question about behavior of people whether they'll get on airplanes and that takes us to phil. shares of delta this morning getting hit yet again and phil has news from the company's ceo in terms of his view of the future and what that's going to mean for staffing at that airline. >> and, david, with regard to

that, this is a memo that has just been sent out to delta pilots essentially saying look, we're impoik to have to go through a bidding process in terms of what happens for the current schedule that's out there. but when you look at this fall, they are in dire situations. they have approximately 14,000 pilots right now they are saying this fall they will have 7,000 too many pilots. in other words, overstaffed by 7,000 pilots and then when you look at the third quarter of next year, they will have 2500 to 3500 more pilots than are needed that along with delta saying it's going to be retiring its 18 triple 7s, those are key to the international routes those are all going away they're not being parked they're being retired. all of this together is why you have shares of delta now trading at levels we haven't seen since 2013 and by the way, don't be surprised if you see the same thing from all of the other airlines as well there's simply too much staffing

relative to what they're expecting in the fall. >> i mean, why can't they get this right maybe they need to put more planes in the air. why do we keep seeing pictures and hearing of people's experiences of packed planes where they can't even leave out the middle seat and where people don't seem to be safe. >> if you want to go that route, sara, if you want to go that route, sara, are you willing to pay 50% or 60 % more for a ticket if you're willing to do that, the airlines will be glad to strip out the middle seat. you're not now you're asking the airlines make a decision. you operate at a loss or you operate at maximum capacity. that's the way the airline business is structured now, i know people sit there and say that's not right i don't like it. i don't feel comfortable i had a friend flying from dallas to chicago. sends me a picture of his flight on american. packed he said why is it packed i said they're in the business of selling seats, not in the business of keeping that middle seat open forever. and we're going to hit a point

where perhaps -- >> not forever we're in the middle of a pandemic >> okay. well, then that's a question for the dot to say okay, you must keep the middle seat open. and then you're going to have to see the airlines adjust. the question becomes what do you want from the airlines do you want them to continue to burn through in delta's case, $50 million a day but keep that middle seat open if that's the case, you're going to have to go back to the federal government and say there's going to have to be further handout here >> yeah. it's tough i mean, the financials are tough. and another pretty dismal day for the stocks phil, thank you. >> you bet senate minority leader chuck schumer joins us on the other side of this break to talk about the democrat's proposal of trillions more dollars of fiscal relief we're back in just two minutes

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.

welcome back let's go right to washington with with chuck schumer. elon, take it away >> thank you so much thank you so much senator schumer for joining us today >> i'm glad to see you're recuperated and back on the screen or the virtual screen. >> well, thank you very much well, of course, we're here to talk about the $3 trillion relief package your colleagues in the house are expected to pass tomorrow. but first i want to ask you

about senator richard burr nbc confirmed that the fbi has seized his cell phone as an investigation into possible insider trading. do you think he should step down >> look, i haven't seen the reports. i just read the headlines. it's premature for me to comment on that. i don't own any stocks i've told my colleagues in the senate at the very least it creates the appearance of a conflict so it's better not to own any. but i cannot comment on burr until i know the details >> you said the appearance of a conflict do you think senators should be banned from owning stocks? >> as i said, it creates an appearance of conflict, and i would recommend to my colleagues t easier when they don't own stocks i don't own any. >> well, on to the trillion -- $3 trillion a week package you

guys are looking at. obviously republicans in your chamber are against this the president has said that he thinks it's dead on arrival. so what is the game plan after friday what are democrats going to do when we're seeing 3 million more people file for unemployment this week? >> i think there will be massive pressure on the republican party in the senate on president trump and particularly on leader mcconnell to move forward. just look at what chairman powell said yesterday. he said we need fiscal relief. he used about every monetary tool he can use, but if we don't have fiscal relief, he said he feared the damage to the economy would be permanent in the first co-vid bill and second one, mcconnell and the republicans initially resisted but public pressure, the demand to do something because the economy is in such bad shape, forced them to come to the table. i believe that will happen again. look, we have the greatest economic and health care crisis that we've had certainly since

world war ii certainly since the great depression and there's a demand there's a need to act. i realize that it will be spending more dollars. but as powell said, as so many other economists left, right, and center have said, if we don't spend more, the consequences will be worse for the budget, for fiscal and for the economy as well as the health of america than if we do. so i believe that pressure, pressure from the governors, republican and democrat, pressures from the hospitals, pressure from businesses, you know, if we don't have an adequate testing program, no one is going to show up even if the businesses are open. georgia, the state where the governor was the freest to open up, i think it's two and a half weeks since he did and something like 6% of people are showing up in the stores in the malls our bill that nancy put together, the speaker and the house, has another $75 million to i were lemt a testing

program. everyone country that started a down slope for both amount of illness and economic and going up on economic recovery has had a massive testing program. this president denies it the biggest problem we face here in so many ways is that the president puts his head in the sand and denies truth. the truth is we need testing he said two months ago everyone who needs a test can get one we're not close to having enough tests. and let me give you one little example. i called the mayor of new rochelle when they were the first suburb quarantined i said what do you need? he said if i had a test for everyone, we could virtually solve this problem, because anyone who tested positive would stay in their homes for two weeks. anyone else could go to work, shop in the stores, walk on the streets and feel safe about it and yet, this administration has been totally derelict in coming up with a testing program, and you talked about the airlines before no one is going to ride on the planes until they're able to

test everyone who rides on the plane and says only the people who are free of co-vid will get on the plane so there's so much to do and for leader mcconnell to say he doesn't see any immediate need to act, what alternative universe is he in? herbert hoover, the stock market crashed, hoover said let's just work out way out of this without any government help. that either created the depression and if it didn't create it, it certainly made it longer and deeper. mcconnell, the president in many ways are acting like herbert hoover they ought to join with us and come with a strong, bipartisan package that pushes more fiscal relief into this economy, and more testing so we can deal with the health care crisis >> well, certainly there are many provisions within the legislation that would deal with the current outbreak

certainly it's going to require a lot of money in order to combat this disease, however, the criticism from republicans is there are lots of things in this bill that don't have anything to do with the coronavirus or anything to do with the outbreak. one example would be the repeal of the cap on the state and local tax deduction. that's $185 billion in two years. what is your response to republicans who say this is loaded up as a liberal wish list >> well, first, it has everything to do with the problem. one of the biggest problems we face is that state and local governments are going to go under. they can't print money like the federal government they're already laying off hundreds of thousands of workers. they will lay off more and some of the republicans say oh, well, that helps the blue states a firefighter who was laid off whether he's in new york or in kansas, a republican state, democratic state, is a laid off firefighter who can't work, can't get a salary, and can't protect us so number one is it does have

something exactly to do with the problem, because one of the greatest areas we face is the state and local governments are really hurting, and many will go bankruptcy shortly if we don't do something getting rid of that, going back to the way we used to be will help that. and second, the republicans are saying well, we don't like this, we don't like that sit down at the table and negotiate. mcconnell is saying he doesn't see the need to do anything immediately. so, you know, they can point at things they don't like they can point to things they don't like they don't even want to talk about it and donald trump criticizes chairman powell who is an expert i want to make one more point. donald trump shies away from the truth. he puts his head in the sand that's the biggest problem we face whether it's on fiscal policy where he denies that powell has to say because maybe his people don't want him to spend more money

he denies what dr. fauci said. dr. fauci talks truth. donald trump's other side to the story is untruth, not reality. >> that may be the case, senator, in your view, but are there areas where democrats are willing to compromise? republicans have laid out liability protections for businesses as one of their priorities in any future legislation. pelosi has said there could be some common goals in that area is that a place where you could come to agreement on a safe harbor for businesses? >> the bottom line is we don't know their proposal on liability. they said we need it the bottom line is, again, mcconnell keeps doing things that don't move things forward, but that are divisive. okay the bottom line is we need to talk about what kind of fiscal relief what are they liken -- not what they need in addition. what do they liken the co-vid bill that the house is voting

on what are they willing to do? and then we can have basis to sit down and negotiate so many other issues where there might be disagreements >> given the size of this package, granted we are in a crisis situation currently, but down the road, as we see our debt to gdp ratio continue to climb, do you think that we could eventually need to raise taxes in order to lower the deficit, reduce the deficit and reduce our national debt once we're out of this pandemic situation? >> well, it's of course, you know, everyone says it a year and a half ago we opposed it, but a $2 trillion tax cut which did not grow the economy in the ways predicted the bottom line is that we have two bad choices here do nothing or -- and the deficit will grow worse in the temporary. or do something and make it

better and despite my worry and concern that republicans are sitting on the sidelines, i am optimistic we can get something done. because in the last two bills they said our way or no way and then they had to come to the table. mnuchin was a powerful force, bringing them in that direction, because he knew he had to do stuff for the economy. and the bill, for all the partisanship, passed 96 to nothing. bernie sanders voted for it. he's probably the most left in the senate ted cruz voted for it. he's the most right in the senate i believe we will come together, but we have to do it soon and we need our republican colleagues to not say there's no problem. we can ignore it for donald trump to say let's take a pause, we need to act every week the urgency gets greater as today's unemployment number showed. >> senator, one final question for you. you have been tough on china in

terms of trade you criticized the president for not being tough enough on beijing. some of your colleagues are calling for sanctions on china what they see as the role on spreading the outbreak do you think that china should face any consequences for not being transparent enough >> i'm no fan of china in the way they have treated america. very unfairly. but, again, these are diversions okay no matter what china did, we've got to solve the problem here. they keep putting up extroins you issues because they're reluctant to talk about what kind of further relief do we need for businesses, particularly small businesses? what kind of relief do we need for the unemployed what kind of relief do we need for our hospitals? how do we get testing to be as full and rigorous as it has been in other countries those are the fundamental questions. china is an issue. i might not disagree with some of my republican colleagues but

it's extraneous. it's a diversion from the real needs that we have, and we want to get working on those right away right now. we know we're not going to get everything we want but we want to sit down and talk and we'll get a lot of what we want because the american people are on our side. the economic experts are on our side chairman powell hardly a political figure is on our side. >> got it. senator schumer, thank you so much for talking to me today and sara, i'll send it back to you >> all right thank you for bringing us that interview. let's hit our etf spotlight today. a look at the regional banks ticker kre extending losses from yesterday. the etf closer to losing half the value so far this year down at 2 %. pnc financial in the red this morning. don't miss our exclusive interview with the ceo of pnc. he'll be with us at 3:00 p.m. eastern time to talk about

selling their recent stake in black rock 22% of the company why they made that decision and why they made it now we'll take a quick commercial rks wn m maetdoore than 1%. every sector is in the red (soft music) - [female vo] restaurants are facing a crisis. and they're counting on your takeout and delivery orders to make it through. grubhub. together we can help save the restaurants we love.

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, hey! lily from at&t here. i'm back and while most stores are open, i'm working from home and here to help. here's a tip: get half-off the amazing iphone 11 on at&t, america's fastest network for iphones. second tip: you can put googly eyes on your stuff to keep yourself company. uh for example, that's heraldo. he's my best friend. oh, sorry nancy, i forgot you were there. get the amazing iphone 11 for half-off on at&t, america's fastest network for iphones.

that's why usaa is giving payment relief options to eligible members so they can pay for things like groceries before they worry about their insurance or credit card bills. discover all the ways we're helping members today. welcome back here's what we know at this hour in wisconsin some bars and restaurants reopened last night. after that state supreme court threw out the governor's stay at home order many establishments were busy. some with standing room only

crowds and few people were wearing masks. the governor says the ruling has, quote, thrown the state into chaos, end quote. the parent company of coach kate spade is beginning to reopen the stores by the end of the week tapestry expects to be doing business the company is also reopening another 125 stores across europe and asia cvs has another 51 testing sites opening. they're in the northeast, arizona and florida. they will now have 1,000 testing sites across the nation by the end of may you can always get more on our coronavirus coverage by heading to cnbc.com. david, over to you >> sue, thank you. sue herera up next y, julie sweet. 115 market cap consulting

company. one of the largest in the world. what are they seeing and what are their clients doing in terms of selling their digital transformation we'll have that next - [announcer] if you've tried college but never finished, snhu let's you transfer up to 90 credits toward your bachelor's degree. - [woman] it doesn't matter how old you are, you can do it. you can finish. - [announcer] finish your degree at snhu.edu.

welcome back to "squawk on the street." many companies around the world grappling with the transformation of their business that needs to be accelerated given the impact of the covid-19 virus. one of the companies helping them do that, accenture. they help transform businesses into the digital world the ceo joins us now julie, nice to have you with us this morning let's talk about that for a bit before we get to accenture what have you seen with your client needs has it accelerated digitizing parts of the business that had not perhaps undergone that

transformation >> glad to join you today. absolutely in fact, it's become a little bit of a cliche. right? the digital is now accelerated as a result of companies going, needing to go online, working from home. but what we're seeing is that almost overnight there has become a major performance gap that existed precrisis between the leaders adoption in digital and the laggards precrisis that gap was the top 10% of companies leading in technology were performing twice the bottom 25%. almost overnight the digital performance gap has widened because right now the leaders who have already nvested are able to adjust the supply chains faster they're able to adjust to the new way of buying. we have one retailer that had 100 stores doing omnichannel purchasing with curb side

pickup went from 100 stores to 1400 stores while people who hadn't invested were struggling to reinforce their ability to have customers buy. overnight, big gap has widened now the question is what do you do the leaders are doubling down. the laggards are aggressively partnering to figure out how they can accelerate but with laser focus, because it just became harder from a cost perspective. >> all right so i hadn't been using the cloud. now i'm suddenly realizing i have to move there i have to move to all the different applications on top of that how are you actually advising people when you can't actually be in the same room with them, when your consultants and people who would typically deal with others can't be with them? is it less effective >> no. in fact, i think one of the great lessons of this crisis is that innovation can happen

remotely if you look at what we've done around the world in the uk, we partnered with microsoft to help rolls royce change their factory from making cars to ventilators. most of that done remotely we partnered with aws to help the government of alberto and new mexico in the state of texas stand up call centers based on aws connect. teams working remotely right? you go to sales force. we're working with sales force and aws to do contact tracing. those teams have been innovating remotely i think the lesson here is you can make very much effective remote working, but actually, the bigger lesson is just how fast you can move if you're partnering together. you're not worried about leng the proprocurements. you have to rethink how you transform and the way that companies and governments have

been able to react demonstrate how you do that. you work with trusted partners you set speed. you act with urgency and we are now advising clients to rethink how they do their transformation with those lessons in mind. >> right i mean, we've talked a lot during the course of our days here, julie, about the future of work given how many ceos we talked to rethinking how they do business. >> do you believe this is a seminal moment, that once we're on the other side of this crisis, we don't go back to the way things once were >> i believe that. i think it's -- it's actually, though, accelerated what was becoming before. so we were talking about precrisis. that we were at an inflection point. right? the last five years you saw digital technology changing things and we saw this as the beginning of the decade of delivering on the promise of technology and

human ingenuity. this is the moment where we've accelerated. instead of it taking a decade, it will take years right? only a few years we think we'll be in a very different place three years from now than we would have been precrisis? >> commercial real estate, it's been such a busy week for companies like twitter saying some employees may never have to return we keep hearing companies will need less space because of that. others say they'll need more space because they'll have to social distance inside the office what is the net effect >> i would say that most of the ceos i'm talking to right now are seeking to leverage the fact that their workers are working very effectively remotely to actually reduce office space, not expand the office space. i've certainly seen that in a lot of different places. now, certainly there's going to be some offsets, but i think a lot of people have learned the

lesson that things they thought had to be done in office can actually be done productively at home we even look at our own business for our productivity increased in our technology business even though almost all of our people around the world, even those who worked in centers who didn't normally work from home as many of our people do and our on shore, in the countries around the world, actually increased their productivity so i think you're going to see it for good and valid business reasons. you're not going to need as much office space i would caution you that it's important to bring people together and so one of the things that we say is don't go overboard. don't go tilting so now everybody should be there, because office space is critical to bring people together, and keep that engagement going >> specific to your company, cap spending for a lot of companies is coming down they're cutting it significantly including i.t. spending. what are you seeing in terms of your own business and what are

your expectations given the cuts that may be taking place to i.t. budgets? >> what you're also seeing is that while i.t. budgets, the analysts are saying is going to go down, there's three big areas they expect growth that's in cloud, collaboration tools, and security. that's exactly what we're seeing in our business. if you take security, right now breaches and -- have increased about 25% over last year the landscape for attack has increased. and so we're seeing the companies are needing to increase their spending on security collaboration tools. we partnered with microsoft to put 1.2 million people on the nhs health services and the uk overnight on teams we did 100,000 people with google on g-suite. those kinds of investments are going to continue, and cloud is absolutely core. people are saying why is everyone talking about cloud it's pretty simple

it's reducing your cost. it makes -- it reduces your carbon footprint and all innovation is happening on the cloud. if you want to solve your data problem which is so critical right now, you have to be in the cloud. the hyper scalers are spending billions of dollars of innovation that is the innovation that you need to drive your business. there isn't a vc now who is going to invest in companies that are not building innovation on cloud architectures so we believe we're well positioned because of that >> yeah. finally, just real quickly your business you said you're seeing an increase in productive among your employees a lot of your business depends on people getting on airplanes and going to see other people. when are you going to be comfortable putting your employees back in the air? >> it's a great question our business really requires that when our clients are willing to meet with you and so what we expect is that when you start to see companies

reopen their offices and be comfortable that their employees are safe, that that's when our employees are going to be going back on the planes so our business only required that when our clients wanted to meet in person >> well, we certainly appreciate you joining us look forward to seeing you again soon julie sweet, the ceo of accenture. >> thank you for having me session low was minus 458. well off the lows. wells fargo erasing yesterday's losses a big week for bill miller, david tepper weighing in nelson pelts is going to join us don't go away. across america through fee waivers and payment deferrals,

helping people stay in their homes through mortgage payment relief efforts and donating $175 million dollars to help hundreds of local organizations provide food and other critical needs... when you need us, wells fargo is here to help. and look, it feels like i'm just i'm sewasting time.nfo on options trading, that's why td ameritrade designed a first-of-its-kind, personalized education center. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now, you're binge learning. for a limited time, get up to $800 when you open and fund an account. call 866-300-9417 or visit tdameritrade.com/learn. ♪

top strategist jim paulson dismissing powell's bleak outlook on the economy find out why on trading nation more "squawk on the street" coming up.

financials actually popping into the green a little bit of a comeback the stocks are lower the dow down 193 value investor bill miller joining us yesterday on the closing bell to talk about valuations in the era of covid-19 and whether he sees stocks at the levels as cheap or as a feeling in the middle of a

big debate about whether stocks are too expensive with david tepper saying this is the second most overvalued stock market he's seen since 2009 >> i think if you look at the overall market as a market, we're trading right now around 17 times the consensus on bottom up earnings estimates for 2021 that's about the average for the last five years. so those estimates may be too high or too low. but i think that gives you a sense of what analysts are thinking, and if that's the overall market number of, i would call it, extended given the fact that we have a chasm of bad news to go over here, but i don't find it as dramaticallyover valued as david or stanley do. >> referring to stanley druckenmiller who said he's never seen a risk/reward scenario worse in the market you can catch the entire interview on cnbc.com. and later today, don't miss our

interview with bill demchak. we'll talk about the state of ppp, small business relief and the recent selling of the giant stake in blackrock stay tuned for that at 3:00 p.m. eastern. "squawk on the street" will be right back energy joining financials in positive territory a little bit of a recovery in stocks the dow is down 190. we'll be right back. hrough your. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. that's the clarity you get with fidelity wealth management. truly transformative sleep. so, no more tossing and turning. because only tempur-pedic adapts and responds to your body... ...so you get deep, uninterrupted sleep. during the tempur-pedic summer of sleep, all tempur-pedic mattresses are on sale! during the tempur-pedic summer of sleep, ever something's gone mogotten into the office.m, i hear you.

feels like there's no barriers between departments now. servicenow. the smarter way to workflow. a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. that's the clarity you get with fidelity wealth management. and tailored recommendations. so we're working 24/7 toected maintain a reliable network, to meet your growing internet needs. we're helping customers who are experiencing financial difficulties stay connected. we're increasing internet speeds for low income families in our internet essentials program. and delivering self-install kits to your door. nos comprometemos a mantenerte conectado. we're committed to keeping you connected.

for more information on how you can stay connected, visit xfinity.com/prepare. dow hasn't been down four days in a row since late february but the bulls did circle the wagons below 23k. still on pace for the largest weekly loss in about eight

weeks. these days, it's anything but business as usual. that's why working together is more important than ever. at&t is committed to keeping you connected. so you can keep your patients cared for. your customers served. your students inspired. and your employees closer than ever. our network is resilient. our people are strong. our job is to keep your business connected . it's what we've always done. it's what we'll always do.

welcome back delta shares off their lows of the morning. the carrier saying today it will retire its boeing 777 fleet and make efforts to eliminate its cash burn in the wake of the pandemic charting a path forward means reimagining the air travel experience joining us now to talk about that is jorge roberts, ceo of abport, which manages eight airports across the country, including we should say private airports and commercial airports like westchester county airport. how are you thinking about what the future looks like? >> yeah. i think we're in the age of accelerated innovation

over the long term, we're going to be seeing a lot more autonomous vehicles and equipment, more people disinfecting portals, remote operations in control towers i think over the medium term we're going to be seeing more redesigned security checkpoints, integrated health checkpoints and thermal scanners and scanning in the short term people could expect the same measures we're seeing at the grocery stores, including hopefully there will be less wait times and touchless interactions and we're going to have to define the experience as airports define the flow inside the terminals. >> i mean you're laying out a lot there. in the post-9/11 period, it's hard to think of something that changed more than travel we had tsa, made us feel a lot safer. do you think that we are in store for even more drastic changes permanently as a result of covid-19?

>> absolutely. i think those are things that as an industry we've been working very hard, airports and airlines are evaluating dramatic changes. for now we have to institute the same measures you're seeing with face coverings and disinfections, but you will see touchless screening and interactions like voice activated kiosks and touchless bathrooms as well. >> temperature screening when? when you arrive at the airport >> yeah. so right now some airports already are testing that in asia, more so, but in the u.s., at the moment, the question is more just who will hold that thermometer? it's a hot topic right now airlines and airports are saying it should be the tsa or cdc. there's a lot of pressure on the tsa to do it as passengers go

through the checkpoint they need to be focused on security, not on how -- i think as a private operator, we are in a better position to handle that we're still evaluating that. we're trying to get feedback from airports seeing that, for example, i was on a call with brad smith -- the first airport in the country testing that to get the feedback and he said that passengers are regaining that trust as they see those type of measures being put in place. the question is still whether they're effective or not again, i think recovery is not just going to happen through economic recovery, but it's also going to happen, has to happen together with trust. >> how long do you think it will take for people to come back and fly at the levels that we saw say last year? >> yeah. i think there's still a lot of debate in terms of a lot of forecasting happening, a lot of it is short-term planning.

when we talk to airlines, for example, with united, they tell us they're planning one week or two weeks out, some doing 45 days out humanity is resilient. we love the adventure of travel and we're still in a global economy, but i'm also keen on where the passenger will demand the aviation industry to prove itself so what we saw in the history of aviation, all through crisis aviation recovers and traffic comes back, but i think at best we're thinking about three years out when we get to pre-crisis levels. we're already seeing increases in passenger recovery from the bottom which was the beginning of april, the tsa numbers are encouraging, and i think that summer will give us a lot of information of what the fall and maybe 2021 looks like as passengers come back and, again, going back to regaining their trust. >> we're seeing video of some of the waiting areas at the gates where the middle seat there is

blocked off. i had a good back and forth with phil lebeau who covers the airline with us on the show about why we're seeing these packed planes, why airlines are giving up the middle seat to people, shoulder to shoulder, often not wearing masks and he made the valid point that these airlines are businesses and they're burning a lot of cash and they have to sell the seats in order not to raise prices what's your perspective on whether the airlines can do this in a safe way so that more people will feel more safe flying >> yeah. we're evaluating these dramatic changes. as airport operators we're conduit to bringing passengers to the boarding gates and airlines are the ones deciding who gets on board and how. there's still a lot of coordination to be had guidelines and regulations still have to come from the federal and local authorities. i think there's still three questions that we still are trying to answer, is who is deciding what, how is this going

to be coordinated, how is this going to be paid and then passengers are going to have to weigh between their personal health and safety and their personal rights as privacy the conversations we have with airlines, for example, with delta most recently, we hear is that they're targeting 60% of capacity however, they're still selling more tickets the idea is that they would bring a larger aircraft to keep that social distancing obviously we've seen that sometimes that's not happening yet and i think that's going to take some things to iron out. >> thank you for joining us. jorge roberts reimagining air travel, we appreciate. carl, we continue to see a recovery stocks cutting their losses and some buying in the banks. >> yeah. we'll see you this afternoon s&p recovering 2800. good thursday morning, everybody. welcome to "squawk alley." i'm carl quintanilla with morgan brennan and jon fortt coming to you live from various locations.

we are close to session highs as the white house is now on the wires saying they are, in fact, open to a phase four coronavirus bill, but they reject the democratic proposal, a spokesperson saying the president is taking his time to determine if a package is needed in the meantime jobless claims do come in another almost 3 million claims bringing the total to more than 36 million over eight weeks. steve liesman has all the internals on that today. hey, steve. >> yeah, good morning carl this is the kind of thing that fed chair jay powell was worried about the numbers keep going and the initial round of jobless claims that happened because of the shutdown we have kind of an economic related series of jobless claims, nearly 3 million more than the consensus, down a bit from last week but maintaining a relatively high level. total jobless claims over the past eight weeks a stunning 36.5 million and the insured unemployment rate which we'll look at in a second looks at the percentage of eligible employees who are in