getting rooigt to the point. jim with some buying ideas t tyler. >> it's really work at home, stay at home, pay at home is really what he was talking about there, kelly interesting hour see you tomorrow thanks, everybody, for watching our breaking news coverage continues now into the final hour could be an eventful one here comes the closing bell. >> thank you so much for that. welcome to the closing bell. stocks have climbed back from steep losses on what's been p a volatile day the dow now in the green s&p just slippeded back into negative territory in fact, back green again. up ten basis points. 59 minutes left of this session. fears of prolonged economic weakness as a new report shows nearly 3 million more americans saw unemployment benefits last week president trump threatened new taxes on companies that make goods outside of the united states as tensions with china continue to simmer and bank stocks are bucking their recent trend, push uing the market higher today today's best performing sector

along with hemt care and energy. >> that was quite a turn around on the banks ahead, wall street heavy weights are taking sides on the market david miller and david tepper warning about the historic overvaluation. bill miller announces saying they see market values here. we're going to ask billionaire mark cuban which side he is falling on right now plus, a rare interview with william demchak. he'll discuss the bank's decision to sell its stake in blackrock. they own 22% and it's created quite a business since they sold let's focus in >> it's a great booking and i can't wait for the interview as we've been discussing. i love all the people you book from nap foods to nikes, but this one is creme de la creme from sarah >> try to get one you'd be interested in. 59 minutes left of trade

let's focus in on the big stories. mike tracking today's volatile market action. phil has an update on delta. kate has a look at what mastercard is say iing about consumer spending. mike, start us off with the broader market, what we saw with the banks and from the rest of the market >> yeah, the s&p looked like it was going to have another tough day in the morning the banks and other laggard groups did kind of snap higher right at that moment where the overall s&p 500 was getting toward a level that people thought maybe it had just below 2800. that represents if you look at the one year chart, another 5% pullback from the recent highs in this case, the highs from april 30th the fourth 4 to 5% pullback we've had since the march 23rd low. each one of them has pretty much mehe would there and made upside progress don't know if that's going to be the case right now but today's story is the laggard stocks being up more than the recent leadership stocks are down so a slight net positive

for the overall s&p 500 index. look at the equal weighted version of the s&p version it's not as encouraging. look at your chart the average stock has been much heavier. hasn't made as much progress as the recent highs at today's lows in the morning, it was b about 1% below where it traded march 26th just three days. that's something you have to watch as how democratic or narrow finally, it's not just tech versus nontech look at quality versus cyclical or le levered this is j&j and nasdaq compared to capital one and auto nation cars and consumer loans the market is very bifurcated right now, but it's not just about technology versus all the economy. it's about quality of balance sheets versus cyclicality and debt >> so where are we right now on

valuations for the overall market pretty unlikely a few weeks ago or a month, little over a month ago, that you would have some of the biggest names in finance warning they'd never seen markets so overvalueded. >> you're certainly overvalued by most measures if you're counting just the earnings for 2020 we've certainly not seen the lows in earnings forecast in year well above 20 times. 21 times that's about as high as we've been since the bear market on the way down but if you think that 2019 level of earnings at some point in the next couple of years is not plausible then you're in the 17 times forward earnings i think the interesting story though is where that high and low valuations are coming in you have a lot of energy stocks. basically going to be earning nothing to negative that you know, on a multiyear basis, who knows, maybe they're cheap where as you've had reasonably ralled big growth stocks

nasdaq 100 trades at 25 times 10 that might seem okay, but it's inflating the overall earnings market very tough to generalize >> thanks so much for that by the way, the first four minutes of the show have gone well for the markets up 0.4% now for the s&p 500 let's drill down on the airlines delta specifically hi, phil >> hey, wilf this is one more indication that for delta and all the airline, unless things change, unless they get dramatically better, they're dpoipg going to have to cut their staffs by a large amount in the fall littest indications from delta, a letter sent out to the pilots now saying they are as of right now, are in excess of 7,000 pilots this fall they currently have 14,000 pilots they're saying half of you will not be needed. and by the way, they're expecting to be 2500 to 3500 above what they need in the q3

of 2021 so they'll have excess pilots in third quarter of last year the ceo of delta sending out a memo saying there is an airline burning through $50 million a day and as a result, they have made the decision they're going to retire all of their triple 7s the boeing triple 7s which are used on the long haul flights. not just park. they're going to retire them finally, we talk about the pilots and excess number of them that they have likely we'll hear this from airlines the airlines cannot have major furloughs until or after september 30th they've agreed they will not have any furloughs until september or after september 30th guys, don't be surprised that that's when we see large reductions in staffing >> at that point, i'm sure there will be significant pushback and uproar, not necessarily directly

at the airline, but the shape of the bailout or support the government gave them was correctly shaped have we got any comments about the long-term forstrongest airlines that survive? if they're retiring their most inefficient planes if some of the weaker players cease to exist is there going to be one day a benefit for some of the strongest players that survive >> potentially there's a good chance that some of the stronger players eventually will be able to perhaps take some market share and maybe be able to come out of this a little bit quicker than some of their weaker competitors. and remember, most are not expegting this industry to be back to 2019 levels for at least three, maybe four years. >> phil, thanks so much for that phil as always for us. we've got breaking news by the way on today's jobless numbers steve. >> yeah, file this one into the department of oops the u.s. labor department this

morning reporting that connecticut had jobless claims of 298,680 in just the past few minutes, the connecticut department of labor says no, that's wrong. our number was get this. 29,846 so you can round up and say instead of 300,000 claims for connecticut, only 30,000 claims. and i remember remarking this morning about the huge surge in unemployment claims that happened so probably the top line number even though it was awful as you remember, still 2.98 million was probably some 260 or 270,000 fewer than that which is a little bit better news certain ly not the numbers that reported in connecticut. >> all right steve liesman, thank you that is a big oops meantime, mastercard getting an

update kate >> hey, sara mastercard reporting new early signs of a rebound in consumer spending the payments company updated investors with an additional two weeks of operating metrics mastercard says it saw a slight rebound in credit card use the ceo giving more color on that this morning at the annual tech conference. he says the improving trend they talked about a few weeks ago sustained through the first two weeks of may he said the first two weeks point to a transition from what he calls the stabilization phase to anormalization phase. the u.s. saw a slightly higher jump due in part to loosening of social distancing rules in some areas and the impact fiscal stimulus, he said. this bodes well for mastercard and the economy but it's far from a full recovery still means lower levels of spending during social distancing and stay at home orders the ceo saying this phase could

carry on for the next two or three quarters at a graduate phase and the growth pace investors are looking for will likely happen in the second half of next year guys >> thank you very much for that. still to come, after the break, the ceo of pnc financial will join us for a very rare interview. we'll discuss the company's decision to sell its stake in blackrock and what they plan to do with the $15 billion or so educati expect ee eed in proceeds of th sale that's right after this short break. when the world gets complicated, a lot goes through your mind. with fidelity wealth management,

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47 minutes left of the session. you can see the s&p's up about half a percent the dow up 223 points or a full percent back close to the session highs. nasdaq up just slightly. banks b and energy the best performing sectors real estate the worst. shares of 3m falling after an 11% decline was reported its health care segment was bright spot but this still couldn't off set declines in safety and industrial division it's down a percent today. chipoltle popping on the back of a raise. the firm say iing the restaurant is well positioned toward the shift for more takeout and

delivery in the wake of the virus and pandemic and it's up 2.6% >> pnc financial made a surprise announcement this week selling its stake in blackrock, a position it's held for decades joining us now is the chairman and ceo bill demchek good to see you. >> gate to be here thanks for having me >> i'll start with the question that i think a lot of investors are asking, which is why did you make the call to sell the stake right now? >> that is a question everybody's asking bla blackrock's been a fan tas bic asset for years but we had an opportunity to monotize a dpraet asset into readily available capital which in the environment is going to prove really valuable >> some people are wondering if

it means that banks are in more trouble than we may think. whether it stays anything about your own loan book and credit book or the broader banking sector right now >> it shouldn't. you know and our own book and this is well-known by investor, we have a high quality loan book it's evidenced by past results and that holds true today but what we don't know today is just the severity of this downturn and in all probably outcomes that everybody talks about we think we'll have some recovery towards the end of this year if that's the case, everything's wonderful. but if that isn't the case, then having excess capital puts us in a great position you know during the downturn post of being defensive and fighting to stay afloat we and others lived through this during the financial crisis and the firms with the most capital in a time of stress really do

well >> the other question it raises is what does it say about what you think about blackrock and whether that business is fully valued given all the fee structure chnd haas happening in the market >> black rock is a great company and it's going b continue to be and nothing about our sale is a valuation opinion per se on blackrock. of course an issue for us is if and when we want ed this excess capital if in fact we could get the same value for it in a deep downturn, of course we wait to see it, but life doesn't work that way so you have to make a decision today you know maybe through an aa bun dance of caution but to raise capital today for what might be and that's what drives it today but it's not a statement on blackrock itself larry and his team were just on the phone and they continue to

>> bill, it's good the hear there's not anything specific in the loan book that worries you u, but i wonder how you've seen things evolve amongst your companies, your loan book, over the last couple of months. at the end of the first quarter, you booked 900 million in provisions which took your allowance to 1.5% of total loans. you've guided for another 250 to 350 million for q2 is that still on track or do yo think provisions will have to increase more than expected? >> we guided it to 250 or so and we said our provision would likely be elevated but since we closed the books in the first quarter, we did see the economy deteriorate what, but it's interesting. you know so far this quarter, the credit books have been b benign and in many ways, that isn't surprising given the amount of money the fed and fiscal policy are throwing into the system behind the scenes, we and the

banks are deferring payments from consumers and small business and commercial and real estate and it's, we're kind of biding our time and all of this is set up under the assumption that in a month or so from now, everything's going to come back and all the payments become current. so right now, there's not a lot to talk look at. the question is, if this extends out further, you know, the permits become real and permanent in the sense that people won't have an b able ili to catch up. that's what we're fearful of >> there's a wide discussion about what you're going to do with the billions of dollars you've raised now that you have that capital what about m and a what are you telling investors about the landscape, what it looks like and how likely it will be that that's where you'll be focused when it comes to deploying that money

>> you know, my suspicious and disrupted market opportunities present themselves and i don't know if we can predict where they'll come from. it could be inorganic and there could be acquisition targets but for the time being, we're telling people we're going to hang around the hoop and wait and' in fact what happens here with more information. what we saw without question during the last dunn tuownturn e financial crisis is because we were in good shape as a economy, we had an ability to grow our econo company when a lot were playing defense and trying to survive. so whether we use this simply to support our clients and to grow organically you know as we play this economy out or we you know see acquisitions which are likely, you know we'll wait and see and see what presents itself but i think they're going to be back >> what's the shape of the ideal

acquisition? another fellow bank or is it slightly different is it fen tech payments or consumer finance >> it's most likely form, it would be another bank. we're not bearing off from our strategic direction of wanting to establish a national presence on both retail and cni side. we've been doing that through a digital strategy, primarily digital with a branched in network surrounding it the ability to accelerate that strategic direction through acquisition would be attractive. and it's a game we know well and a game we execute on well and it's a market that's wildly fragmented so i don't know that we need to get off of our game plan given what we've seen thus far just maybe have an opportunity to accelerate. >> and bill, what about the ideal size of target candidate would you ever consider giveren b giving up you and your management team, control or even

pnc's name we saw a big merger of equals creating truist last year is a merger of equals on the cards or only you buying a smaller target and keeping that control that comes with it >> i think you're jumping way ahead of yourself. i think we're going to be in a position given our capital base, the strength of the company, our track record, to be the drivers in this outcome and that's what we pursue. >> bill, broader question on what you're seeing right now you lend to a lot of small business a lot of households and what you're planning as far as the second half of the year and when we might actually see recovery as we have started to see states reopen >> i think it's going to be in fits and starts. i think the big question is we've given a bit of a lifeline between you know two and a half months worth of ppp to some businesses you know unemployment that

perhaps is in excess of what normal unemployment would be the problem is that it runs out in a couple of months and as you start the economy in fits and starts, some people have come back, some don't unless it comes back in solid form, i don't think it's going to inside of a couple of months. i think you're going to see a lot of defaults and failures in the small business, smaller commercial, e klaclass real est and consumers continue to struggle that's what has me afraid. the window for us to get out of this lull is closing fast and it's going to take, you heard chair powell yesterday talk about the need for greater fiscal stimulus to continue. the fed's doing everything they can do but the window closes and we kind of have to get the economy back and the longer we wait, the harder it gets >> with that in mind, i'm sure you saw randy quarles eat'

xhepts about dividends for banks. is it sense sensible for banks to be paying dividends as you said fearf fuful about what coub around the corner? i know you're raising capital. >> one of the good outcomes from the good financial crisis is that change in regulation capital levels, capital policy, governance around everything related to capital from buybacks to dividends, that's an ongoing and continuous process that the industry goes through. and i think when i listen to governor quarles' testimony, he talks about letting the process work run the stress test. run your capital and loss scenarios and form your board to make informed sti eed decisions what that means is today, knowing what we know today, dividends are safe, but it

shouldn't be a binary outcome that we wait until everything is horrific before we visit the dividend and we wouldn't we project and learn watch losses track incomes and to the extent the industry is in trouble, it has the built in governance to basically cut their own dividends. i don't think it gets to be, if that's what we need to do. i don't think it has b to be nor will it be somebody with a you know fsomebody from the fed saying do it now outside the ordinary course. >> final question for me i want ed to go back to the blak rock sale. why specifically now has any specific acquisition candidate approached you >> no. no it's -- there's never a perfect time to sell you know a great asset. blackrock's been with us for a long time. originally, it was a strategic asset effectively long before wealthing management asset management you know for the last ten years or so, it's been a high quality

investment that is not t strategic to our firm. there's never a good time to sell a high return on equity business like that per se, but as i said before, the ability to exercise, to get the capital and you know we're going into a -- it's also an investment that true time has caused rg la torre complexity both for us and for blackrock so it's something we knew was on the table for a number of years and just thought now is the right time. >> one of the largest equities deals of the year. you've got a unique vantage point into consumer behavior how is is it changing as a result of the pandemic and what do you think will stick in terms of permanent changes >> it's one of the things we're watching carefully it's fascinating we knew as we moved our branches and most of the industry did, to

kind of drive through only most of the lobbies use digital we have seen digital usage increase by a percent or so every quarter for a bunch of years. it jumped from the beginning of a year where digital was 25% of the sales. without a lot, without much volume follow. so if you think about that, we basically taken, forced a massive shift in consumer er behavior that on its own might have taken ten years we did it intwo months and now we have to ask ourselves the question of whether or not consumers will go back and use branch ps the way they have. my guess is not to the same extent you think about it so many guys use digital, but it's pretty easy and once somebody figures out how to do it and sets up themobile phone e

a mobile deposit, they start asking the question, do i really want to drive to the branch to do that again. it's going to accelerate what we've seen, in terms of digital adoption, better branch network, increased reliance on technology and greater share of people who have the capacity to you know support, not just consumers x but corporates by the way in digital formats. >> and finally, bill, just bringing it back to the market financials are having a nice rally today. had a nice turn around this morning. you're down more than 30% so far this year or more. one of the worst performing sectors. another brutal week for the bank stocks both large and regional. what do you think is being reflected there in the market? do you think it matches up with reality? >> well, you know, in some ways, i do it's the unknown so we just talked about an unknown economy we can't rely on all models. we've never been through a

period of ti period of time where you had forceded shutdown of the economy. all of the impact of that is is amplified inside of the returns of the bank. so if you think of beta on a stock or something, a bank is an exaggerated effect of the economy. and so all this uncertainty we see in the markets and the outcomes of the economy you see it in the vix index, it's showing up in the valuation of the banks because it can be really, really bad it can be really, really good, too. they don't know. but i think the risk premium on banks is you know, for good reason, gone up. >> bill. thank you. we went long because we don't get to talk to you that often. appreciate your time >> all right thank you, guys, appreciate it >> chairman and ceo of pnc financial. we've got just a little over 30 minutes left before the close ing bell and we are looking at stocks higher i mentioned financials actually powering the rally we're up to session highs here on the dow 283. remember, we were down more than

400 points this morning. s&p's up .7% nasdaq up a third of 1%. russell 2000 lagging today, all week, all year still ahead, mark cuban joins us to wake in on the market volatility whether he thinks now is a good time to buy. up next, the stay at home play book for media two wall street tirm firms outlining the stocks that stand to benefit from long-term changes as a result of the lockdown we'll discuss after the break. ♪ ♪ ♪ ♪

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shares of netflix hitting a high as wall street firms weigh in on the names that stand to benefit from the stay at home trend. julia has more for us in los angeles. julia. >> that's right. netflix shares are up bt half a percent. they were up as much as 3% earlier today hitting a new all time high on jeffreries initiating coverage of the stock at a buy a 520 price target saying the quote addressable market for netflix is vastly

underappreciated and there's a significant runway for double digit subscriber for growth. morgan stanley weighing in accelerating the shift to streaming and cord cutting overweight on netflix -- looking for the leadership position. also overweight on spotify those shares up 2% today morgan stanley is underweight on roku because of its exposure to advertising. roku announced it will sell up to 4 million shares to raise about half f a billion dollars guys, back to you. >> thanks so much for that we've got 28 minutes left of the session at the moment. we're up 0.7% on the s&p dow up 280 points at session highs. still ahead, we'll ask mark cuban whether he thinks the market is overvalued here's a check on bonds. yields moving. ten-year around 0.61%. we'll be right back.

time for a news update >> hello, everyone the state at the center of america's covid-19 outbreak is about to partially reopen. today, governor cuomo says the central region of new york state has met the conditions needed to allow some low risk businesses and activities to resume tomorrow four other areas had already met the goals. all u restrictions remain in new york city. roughly 1400 miles to the

south, president trump's mar-a-lago club is also set for a partial reopening after palm beach county got the go aheadfrm the state to ease some restrictions "the washington post" reports members have been told an outdoor restaurant will be open for lunch starting saturday but the main building will remain closed and amazon is working with a 3d printing company to mass produce face shields to be sold at cost to front line medical work eers. you can get more on the coronavirus update by going to b cnbc.com sara, back to you. up next, we'll ask billionaire entrepreneur mark cuban whether he thinks stocks are overvalued we're under 30 minutes left until the close. and we're higher now with every sector higher except for real estate financials in the lead we'll be right back. k you, sir. looking for $6. $6 over there! do i hear 7? $7 in the front! $7 going once. going twice.

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welcome back top investors sounding off on the market this week nelson pelt and mibill miller saying there's still value but bill teper and stanley miller have had more caution takes. mark cube b ben joins us now with this point of view on this and many other things. good afternoon thanks for joining us. so let's start on that on the broad market. are you more concerned about the economic outlook or more excited about the market outlook >> i'm concerneded about both. i think the market is overvalued i think it's almost impossible to predict where consumer and corporate demand is going to come from and because of that, the it's hard to create a valuation for businesses >> even in the so-called stay at

home stocks, mark, which are so clearly benefitting, whether it's a netflix or a broad band provider, a zoom video there are a number of stocks which are holding up quite well because of the times we're live living in. >> no question look, i'm a holder of netflix and amazon so i'm not saying there aren't stocks that will benefit. there are. but when we welcome at the market broadly, it's difficult to project what's going to happen in terms of demand. businesses have been changed consumer con supgs has been fundamentally changed. you had the pnc ceo talk about how online purchasing has gone up so significantly within his business and banking is the most complicated of all processes for consumers to do online so if you're seeing that there, we're going to see it even more so in other industries >> you have such a a good pulse check on small businesses, mark. how concerned are you about whether or not they're getting the temporary funding that they

need the very fact that the ppp second charge didn't run out in the same pace the first did. does that suggest that everyone who needed the money has gotten it or not? >> no, it's the opposite they don't know how to use it and the companies that are choosing not to take it there's really a catch 22 for small businesses right now on one hand, they'd like to open up but in some cases, municipalities, states, economies, whatever, are keeping them from opening. even if they are opening, they're making more from unemployment and compound add to that the eight weeks may not match up with the timing that they're able to get open to. and so you have a lot of this uncertainty and that's holding businesses back. we did a survey in dallas for the first opening of the, the first weekend we were opened in dallas and only 36% of companies even opened up so there's a lot of consternation, a lot of uncertainty and that's holding businesses back.

>> so what do you think is going to happen there? do you think ultimately, the government is going to have to pass another package because it's a myth and we're going to need money for a lot more than eight weeks or are we about to see a huge wave of closings for small business >> we've got a problem because we're not working from a foundation of data we're kind of guessing i think what we're missing is consumer demand that if businesses were able to fulfill demand, they would find ways to open but it's not just about physically opening up locations. just that consumers don't feel confident to spend money right now. so from my perspective, i'd like to see a stimulus that supports customer demand, consumer demand i would rather see us give out debit cards if you will, that say here's 1,0$1,000 that you he to spend within two weeks and preferably locally, so that we stimulate demand because no matter what we do in terms of trying to keep employees

employed, if there's no demand for those companies, they're not going to survive they're going to be zombie companies. but if we create demand and you force people to spend it unlike the $1200, i think savings rates have gone up 14%, if we stimulate that demand, then businesses have a way to stay opened and even if they can't get physically opened, they'll have demand via online services. without demand, we have no economy. and with all of the stimulus we could ever possibly hope for just keeping employees attached to businesses doesn't really help because they're not really being productive >> mark, there's definitely demand for live sports where are we on the nb ara? >> not close enough. it's still a safety issue. the minute that we can know that we can protect our athletes and essential personnel, we'll do our best to get open i mean like i said before, the mavs use the white house protocol we'll do whatever the white house tells us if we feel certain we can protect our employees like the

white house does, we'll open up our practice pha tillsies and push to go to work but we're not there yet. >> in your mind, what does that look like? would they play at their home arenas would they be flying all over? playing one designated area? would you even be able to go to see the game >> i don't know. i think it's going to be a hotel california approach where we pull people into one big location, say a hotel, a facility that has thousands of rooms and maybe an arena attached to it and play all our games there. it might be vegas. orlando. who knows, but in that type of environment, hopefully we can test people when they come in, keep players, essential personnel, maybe even their families, knowing they've been tested and are safe and as the regular-season ends, as teams are eliminated, that population reduces. i think that's the best approach but i don't think we're still to the level of confidence where we can do that yet. >> but you think it will happen before the end of the season

we'll still is have are a playoff? >> yeah i'm hopeful we'll have a season and playoffs and we'll do it on a made r for tv r sports i need it. i need my mavs back. >> a lot of people would agree with you thank you r ffor joining us >> thanks, guys. >> up next, we'll bring you uninterrupted coverage of the final minutes of trade when we take you inside the market zone. 15 minutes left. ptions 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.

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technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. break iing news on disney hi, julia. disney and the unions in florida have reached an agreement on safeguards to protect employees from coronavirus that includes mandatory masks for workers as well as social distancing and all of this comes as disney world prepares to bring back some worsers this weekend to open up disney springs th that's the outdoor mall outside and theme park on may 20th next week. >> thank you very much

we've got 12 minutes left and we are going straight into the trading zone cnbc markets commentator mike is here to break down these crucial moments of the trade iing day a today, we've got stephanie link back as well nice to see you. let's kick it off with the markets. >> off the lows, the dow is now up a few hundred points. we were down 458 at the low. there's the s&p, up almost three quarters of o1% most sectors are in the green. doe's up 280 points. this is a stephanie link kind of day. we've seen a turn around, but still stocks down 3% for the week feels like there's been shifting sentiment in recent sessions where have you been? what have you been buying or selling? >> it's shifting because we have rallied so much from the low so like the easy money back in march and april when you should have been buying, we're now up

26%. so i get it. we're a hostage to the headlines. it was a wild day. we had all the reasons in the world to be down especially after jobless claims and the negrete rick from the hedge fund community. i thought nelson did a very good job today in terms of just talking about the positive things that can happen i do still believe april, may,/june probably with the worst months of the economy this year and as you gradually open, you're going to start to get better points. look at what mastercard said today. paypal tractor sales are up in april in the united states, up 12% so the numbers are actually a little bit more encouraging and so i think that plus the liquidity. we have money supply growth at 14.5% year the date. that's enormous and it's a great tail wind for risk assets. so not buy ago ton here today in the haas welast week, those arl

they look ugly, but they're the cheapest ones at this point. >> ubs you said it's been an ugly day, upside for the banks which is rare. going to dive in on wells fargo in particular which has been underperforming all year but it's become particularly pronounced in this second quarter. look at wells fargo versus the banks index since early april. highlights that point down 16% compared to the banks down just half of one percent. that is even including today's big bounce for wells it's up 7% today stripping out today, may itself for the most recent month has seen an even more clear bout of selli selling. it's down well over 20%. touching an 11-year low at the open today and the selling has been volume niehaus neuse as well here's average shares traded in may. significantly elevated as you can see relative to prior months so raising the question as to whether one of the bank's single

large shareholders decided to start selling yesterday in particular since then, volumes are for wells fargo in may was higher, still higher than march berkshire's fell on the 2nd and 3rd of may and in fact, the sell issing didn't pick up for the month of may until just after that weekend monday's file iing showing that berkshire sold some u.s. bank corps so it allows us to at least pose the question as to whether berkshire hathaway way has been b a big seller of wells in the last couple of weeks. certainly someone has been and that is until today. interestingly, it looks from today's chart, that wells has turned around right after the open is what drags the banks higher

a new price or paused or selling today. haven't heard back from them yet and mike, it's a question that's been asked amongst various brokers as well that i've been speaking to because of that odd ten-day or so significant relative underperformance with very high volumes. >> yeah, people obviously p connecting those dots. it is the intuitive, the other interesting inference here would that be negative for wells or not, whether berkshire or another big holder were liquidating. what i mean by that is sometimes that represents a little bit of a capitulation move. more broadly, you can look at the banks and say they did get to an extremelevel of underperformance relative to anything else you look at. really almost back to the

offing the selling pressures to absorb here >> and also, you continue to hear these questions swirling that we hit with the pnc financial ceo just moments ago, are there dividends really safe as the ceos say they are especially with comments out of the federal reserve questioning whether they're going to have to preserve that capital and are we really not going to see negative interest rates in this country, even though jay powell has said he's not a fan and so many others from the fed, there continues to be question about these super low bond yields and in places like fed funds. >> exactly 8.5, 19% yield it's more important the them i did speak to one separate fund manager who had switched their

main bank hold iing earlier in e year and it's simply, i was able to upgrade the quality of the bank i hold at still a a below book value price and that could explain one perhaps rationale behind this. but certainly, certain ly the dividend is is something else that people are keeping an eye on and stephanie link is a holder i believe of wells fargo and stephanie, i don't know what your take is on this >> i am. >> this recent selling has it made you more attracted to it or more nervous? >> well i'm always a little nervous. especially when we don't, there's a lot of things we don't know you either believe you're going to get an economic rebound and it doesn't have to be b a robust one, or you don't. i believe that you are going to see gradual recovery in the economy and so therefore, that the banks are pretty well capitalized, guys. the liquidity coverage ratio at wells fargo is 121%. the rule, the standard is you

have to be higher than 100%. the common equity tier one is at 7% the standard is you have to be higher than 9% so they have the capital even if they cut the dividend which i'd be okay with, in half, it's 4%. charlie sharf is just beginning the restructuring. if you look at the results before f covid sh, he did see fee growth of 2%, the best since 2017 expenses fell 6% so he's doing the things that a restructuring ceo would do and trading at eight times earnings i think it's too compelling at this point >> let's move on to tualk about use of cash. credit swis pointing out net cash which is cash minus debt is at a record low. companies with net negative cash include at&t, verizon, comcast,

disney and wall r mart meantime companies with the biggest sheets like apple, microsoft, alphabet, but also cisco, sigocigna and gilead that's where the strength has been in the market and one of the reasons the market has held up so relatively well. the question is does that dynamic continue >> right the market has really gravitated in the direction of strong balance sheets it's penalized heavily debted companies. they've continued access to new debt to refinancing, to the capitaling markcapital i markets. a lot of that is going to be cover costs. probably less in the way of buybacks it seems as if the market at this point would prefer not to be too cued about it and by the companies that might come back i think at some point, the dynamic could get too extreme. maybe the market has gone as far

as in the direction of strong balance sheet and quality and if you get good economic numbers or people trying to sniff out and acceleration of the economy at least on a relative basis, i think the companies are probably going to have their moment >> mcdonald's giving guidelines on plans to reopen dining rooms on states that allow it. kate has the details. >> cnbc has obtained a copy of those guidelines are emphasis on hygiene and social distancing. pp perks as well as hand washing and wellness checks will be required self-service beverage bars and play places will be closed the company also highly recommends touchless options for opening up bathroom doors as well as a guest experience safety and sanitation lead of every restaurant's crew. operators were also given advice

for crew members on handling customers not wearing masks or ignoring social distancing masks as well as approaching transient or homeless guests the guide asks that you remember we only get one chance to do this the right way really underscoring how so many restaurants feel in this crucial time >> thanks for that we have one minute left of what has been a roller coaster session. we of course opened lower and have rallied nicely. the low of the day was quite near the open. the dow was down 458 points. the high right where we stand, 340 points 1.5% s&p is up a full 1% now. financials very much the leader up 2.4%. banks themselves within that up 3.7% and wells fargo is up 6.6%. only two sectors in the red

today. real estate and consumer staples and only slightly in the red we have seen yields slip ten-year moving back towards 0.6 handle dollar had been stronger now just slightly stronger oil up healthily, 8.7% at the bell, we're really close to the session highs up 1.6% on the dow s&p up 1.2%. nasdaq up just shy of 1% a rebound led by the banks which themselves turned around intraday >> a pretty strong close 377 points welcome back, everyone take a look at how we finished up the day on wall street, started deep in the red and ended up sharply higher. up 1.62% on the dow. american express, the biggest winner there first positive day we've seen for the week and we are still lower a few percentage points lower on the week s&p 500. every sector except for consumer

staples managed to close in positive territory real estate popping positive, but it was financials that stole the show today up 2.6%. best performing sec r tor. also strength in consumer discretionary, technology and materials. as for the nasdaq, that tech move higher helped power the nasdaq and continue its outperformance we've seen all year russell 2000 had been down all day. it actually into the close as we this lift of markets finished higher by about a third of 1%. just going positive at the end of the session coming up, we're going to ask housing and urban development secretary, ben carson, about the government's move today to extend its eviction and foreclosure moritorium and whether it will be enough for millions of americans that have lost their jobs to keep their homes. joining us to talk about the markets today though, stephanie link is still with us. also newton investment

management, paul mark ham has joined the conversation. first, mike, what caused the turn around and what do we make of this late day rally, which runs counter to some of the action we've seen in recent sessions >> i don't know that you can really point to a news item or a headline or a data release that caused the turn around i think the market definitely - and you had this mean reversion move within it of course talking about the banks being strong basic materials. so that kind of drags things like the nasdaq higher toward the end of the day i don't think it told us much though down 3.5% over two days. up 1.5% today. it doesn't really go against this notion that maybe it's kind of a trading range market and you know these mean reversions, basic materials and banks and things like that, those haven't been really durable comeback moves today. so we'll see if that changes from here. i think it's a reaccepttivity by

the white house to talk b about further fiscal support maybe was a little bit of a cover story for the buying, but the big take away is the market continues to act like people are not overcommitted to stocks and when there have been dips, there have been people stepping in to raise exposure >> paul, do you think the type of reation we saw today is something you expect to continue was it warranted or just be a temporary one off day r for of relief for the likes of the banks? >> i think michael's right to say there's a kind of sense of not really being able to quite make sense of it there was a bit of talk about m and a around the banking sector, which we'll probably get to that space. for the perspective of the way value sectors constructed and what they have for me, it would be quite hard to really see it going on much further without it being a positive news flow around coronavirus and then some kind of visibility in a way and

possibly negative visibility about how the economy and consumer behaved after that. so i think this could be a false start but the market's really done nothing for the last month or so as measured by the s&p so maybe it's time for it to move one direction or the other >> stephanie, i just want to bring up some news as it relates to the virus, which maybe fingers cross eed somewhat encouraging. dr. scott gottlieb saying we're seeing a sustained decline in covid-19 deaths nationally another indication the epidemic is slowing, looking at the curb on mortality nationally and also new york, new jersey and connecticut where we've seen some meaningful improvement. i mean clearly, we're still waiting to see indications of what's happening with the states that have reopened, but that appears to be good news. is that still the kind of new us the market is teeing off of? >> i think it's that for sure. any kind of progress on vaccines, on treatments, on tests, that is certainly a confidence builder

but i actually also think the fact we're hearing from real companies starting to make progress on reopening. you guys just reported on mcdonald's and how about disney. that was very big news as well tapestry, a couple of other companies, so yes, the reopen is going to be slow and gradual, but it's going to happen now we have to see if it's going to keep this curve flat or even declining. that's the biggest question because you have 95% of f the states that are opening by the end of may, so there's going to be a lot more news around all of this stuff and it's all going to be factored into the market but again, you're up 26% from the lows it's not the best risk reward but on any pullbacks, you want to be a buyer given the liquidity tail wind. >> we've got an earnings report out. it's applied materials josh has the numbers josh >> that's right. so applied materials reporting q2 earnings here of 89 cents street was looking for 94 cents. revenue 3.96 billion analysts looked for 3.14

billion. nongross at 34.6%. just going quickly through the segments here, semiconductor systems, sales of manufacturing here 2.57 billion in the quarter. street was looking for 2.61. applied global services, so that would include insulation, maintenance, that's better than expected at one point, 0.2 billion. so the equipment used to make displays, that's better than expected at 365 million. no guidance is offered to investors right now. ceo gary dickerson saying in a tamt though here the situation remains fluid he says in his words, but based on the visible ty they have today, the supply chain is recovering and underlying demand for semiconductor equipment and services remains robust. this conference call kicks off at 4:30 p.m. eastern and we'll be on it >> thanks for that mike, what's your take on this one? >> without specific forward guidance, i don't know that it's going to have any kind of

bellwether effect right now. that's really what everybody is after at the moment. seems pretty much on target results wise the stock has had, it looks like a lot of charts, which is a sharp bounce still well below the highs regained about half of the early year losses at this point. >> paul, where do you stand on the chips and u.s. versus some of the asian names like tsmc >> we like the asian names the u.s. i guess tend to sort of lead the market in a sense we've had the view for quite some time that the chip stocks ha have started to pace areas. one of them is the stock which is much more discretionary related to the consumer. that's going to be a little murkier. i think the side which is more powering, the move to the cloud is an area which has more secular growth prospects, will be less volatile and cyclical. as we go to the end of this year, there's a possibility that we go through an inventory rebuild and there may be another

correction already just been going through a correction so i think the area will continue to be volatile. but there's probably more of a secular tail wind to it now that we have the cloud based computing than we had when only really driven by pc and hand set sales. >> earlier on this show in this hour, we spoke to mark cuban and small businesses struggle iing o survive amid the coronavirus pandemic he said missing stimulus piece right now is consumer demand >> i would rather see us give out debit cards if you will that say here's $1,000 that you have to spend within two weeks and preferably locally, so that we stimulate demand because no matter what we do in terms of trying to keep employees employed, if there's no demand for those companies, they're not going to survive they're going to be zombie companies. >> stephanie, consumer space, do you go defensive or the valuation is a bit rich? >> well the valuation of the

staples names are expensive for a reason because the numbers aren't really coming down that much it's like one sector where i can model in earnings and you get a nice balance sheet with a good dividend yield as well but on the discretionary side, i think you can play in kind of the off price if you will or the home improvement the discover numbers the other day came out and they showed march 10th, week of march 10th home improvements rallied 25% in sales. so you know -- there are pockets of retail that you can invest. trimming amazon, i think it's had too hot a run at this point, but i still own a little bit clearly a stay at home beneficiary. so pockets within consumer >> within those pockets within consumer, wonder how much you have to look at the income group and demographics we got the new fed survey showing 40% of households with under $40,000 of income have seen at least one job loss and

that's really what wr the pain in this crisis is being felt >> it's terrible and i agree with you that it is going to be a challenge for the consumer but this is why we have a new fiscal package out there. 3 trillion maybe not 3 trillion maybe it's 1 trillion. either way, it's coming i believe and that's going to be of help. so i think that maybe even more down the road. so as long as that's in place and we start to reopen, then you're going to make baby step progress with the consumer >> paul, what's your read just switchi focus as to whether or not negative rates in the u.s. is a possibility the fed seems to say they're not considering it, but are those similar messages that koim came out of the european central bank before they ended up taking the plunlg into negative rates >> there was a recognition that the structural challenges that come out as a result of doing that are considerable and it tends to have a terrible effect

on the banking sector. the lucky thing in the sense of the way debt was structured in the u.s. was that it was facilitated rather than kept of balance sheets the bans tend to lend directly to keep the banks on the balance sheets where as the banks tend to issue traded debt so that sort of is back a little bit i would say however that i think it would be really something for the fed to make that move. i think they would do everything they can to not do it and i think that once you get there, the evidence we've seen is it's pretty difficult to get out of it we saw the swedes exit that swarks but aside from that, it's been a tough traffic for most central banks. i would say the fed would do what they can, but events are going to be pretty extraordinary. >> paul, stephanie, thank you both for joining us. >> thank you stay safe. >> still ahead, regional banks have crushed this year citizens financial will be

joining us to discuss their outlook of course following our interview with pnc financial nus.ofback here in a couple mite

still down more than 14 pest for the year joining us to talk about the banking landscape is the chairman and ceo of citizen's bank bruce, thanks so much for joining us

>> my pleasure thanks for having me >> we were discussing last hour with phil his decision to sell a large stake in blackrock and prepare for a rainy day r or opportunities in the future. do you wish you were in a position where you had a richly priced asset to sell to raise capital if you needed to to have to do it with your own share price? all the banks are so cheap at the moment >> well, i think we have a very strong capital position so i'm very comfortable with what we put aside for loan loss reserves the capital that we have and then the profitability that we generate so we feel good about the position pnc is a fairly unique animal amongst regional banks in having that big blackrock stake which has worked out spectacularly well for them.

but in the long run, it's not core to their franchise so monotizing it at a point where it was trading at a nice valuation makes a lot of sense for them >> and where do you stand on the topic of whether those loan loss provisions are going to get a lot worse? will what you all booked in the first quarter be the peak for a quarter or could it get a lot worse than that? >> well i think a lot depends on depth of the second quarter recession and also how fast we reopen then the recovery over the second half of the year. so you know i think we anticipated when we booked the reserve in the first quarter that we would a relative v shaped recovery. i think there's some doubt as to whether it will be as robust at this point so there may be a need to top up further at the end of the quarter

i personally think the next 30 days we're going to learn a lot. as we've gone through, we've we're seeing a ground swell towards reopening. part of the country are -- repping faster than the others we're going to see whether the consumer is out and about and willing to spend and visit stores and restaurants and other venues that open up and so when we come into the end of the second quarter, i think we'll have a lot more to go to go on in terms of honing the reserve order. >> just going to ask you to hang on because we're getting a news release from nike on the consumer putting out a release and update on its financial position and some stores ahead of its earnings in about a month. nike says as of today, 100% of nike owned stores in china and korea are open about 95% of them other store partner stores are open. there's a quote here from the president and ceo of nike saying

that we are encouraged by the recovery we are seeing greater china and south korea as we continue to deepen our connection to customers. also touts three features he says that should carry nike stronger in the long-term. that is the brand. the strong brand of nike, the digital momentum that nike has put in place the foundation they call it. and the financial position those three factors he says we believe this will be a catalyzing moment that strengthens nike's long-term picture and future i also want to mention an update we're getting on some of the other stores that have been closed since march for the rest of the world because there hasn't been a lot of update on this sos this is all new. sounds like they're opening in 15 countries as of today, and here are the numbers that was east going to care about roughly 40% of our nike owned stores in emea, 15% in apla, and

5% in north america are open with some operating with reduced hours. our wholesale partners in these countries have also begun to reopen stores. so picture there of the slow reopening of nike stores as far as what it all means for nike's results and what they're telling us now, there's going to continue to be an impact on nike's operational and financial performance which they call in this release uncertain and it will depend on many factors outside of nike's control. so i think a short-term update wilfred on how they are starting to reopen stores reminder that they're putting out to investors that the financial impact is going to be, they didn't say this, significant, but it's going to be affected by given how many stores are still closed they're encouraged by what they're seeing in china with all the stores opening there and they're encouraged about their long-term position as far as nike share, they're moving higher about 2% probably

on the encouragement they're seeing out of asia, which they have a big presence there. has been a huge growth market for nike the fact there'sa lot of touting of dingital services in this release and how much engagement they're having with consumers on the website on fitness programs. with consumers doing it at home and how they feel confident in their long-term future nike's shares have pretty much performed in line with the market this year down b about 14% this year that's in stark contrast to say under armour, who reported and i spoke to the ceo this week, that stock is down 60%. it's been absolutely hammered. totally different momentum story going into the crisis where nike was really at the top of its game when it came to innovations and connecting with the consumer under armour not so much and i think this really just further emphasizes that still going strong at least when it comes to digital despite the challenges

of having to keep so many stores closed and having no customers coming in through the doors. >> i'm amazing that africa is 40% reopened particularly as it relates to europe, which i imagine is a a large portion of that emea footprint. relative to the u.s. at 5% i mean outside of germany, it's not like there's been drastic economic reopenings there, so that's quite a surprising and stark number i don't know if they just got fewer stores there, but maybe an encouraging sign of europe that we haven't quite got our finger on the pulse of yet. >> yeah, no, i think i don't know exactly, but i think it encompasses a broader region and specifically in the release, germany, france, a number of the big countries were mentioned as far as the united states, why it's been so slow just following the regular laces here state by state. i would mention to that point, they go to some detail here explaining what they're doing to

reopen and sanitization providing face coverings to retail employees and in our distribution centers obviously there's things that all consumers facing and not companies are thinking of and trying to put in place as they reopen nike i would say has one lit leg up which is that it did this in china already and has dealt with the reopening and i think that's a bigpart of what the story is here >> so nike moving up 1.3% on that news in afterhours trade. we're going to bift back pivot k to bruce thanks so much for being patient and sticking by with us. >> sorry, bruce. >> i wanted to ask if i may about dividend policy. something that keeps coming up all over the banks and there have been some comments about it in the last week from the federal reserve from randy quarles. do you expect the fed to step up a little bit further on that and

actually restrict you all from paying dividends >> i think philosophically the fed is comfortable that if the banks go through the stress testing process and have rigorous governance around assessing what the capital position is is that the banks boards and management team should be the ones to set that poll ic policy so most banks at this point have curtailed share repurchases through at least the second quarter. we've said that we're going to not repurchase any shares through the end of the year. i think it's important that we have capital available for our customers that we can make loans and support the economy. but it is important to sustain your dividend and to make sure that shareholders are getting a nice return on the stock and i think the fed understands the importance of that and want to keeps the sector investable and

hopefully not override the ability of boards and management teams to set their dividend policy >> bruce, overall, i just wanted to sort ask you what you feel about the share price performance. not so much of citizens, but of the broader banking secsector. when you see the broader market only down 10% or so year to date but banks likely having in value or just shy of that and trading a at you know, 0.5 times, 0.7 times book value, the market is saying we wonder if some of these banks are going to go out of business. it's not just a question of earnings being low for a couple of quarters. is that view wrong are you and your sector going to be strong throughout this crisis in a couple of years we'll look back on these share prices and think what an extraordinary buying opportunity for bank investors. >> i think that's the case it's quite surprising that very high quality banks like ourselves are trading below our

book value the market effectively is saying that we're price ng a very severe adverse scenario where there's going to be significant credit losses and also a big downdraft in your profitable il and therefore, ability to absorb some of those credit losses. frankly, i don't really see that so almost any scenario that we've been modeling the credit losses can be covered with what we have in terms of capital and also the profitability we have first quarter, we were up 3% year on year our tangible book value per share has been stable at $23 so you know, i just think at this point, there's too much uncertainty and there's too much unknown for investors to really take a confident position and back up the truck and start buying these banks so they're chasing sectors like the big tech stocks who are benefitting

or doing very well through the covid situation, but there's not a will tlot of glory at this po b buying into banks. i think folks would like to see more visibility in terms of how is the economy recovering. what does the next round of reserving look like before they start to wade back into the water and put money back to work in bank stocks >> bruce, thanks for joining us. >> okay, my pleasure stay well. >> it was another volatile day on wall street up next, we will look at whether an increase in bearish sentiment among retail investors could be a red flag for the market and as a reminder, you can always watch or listen us to live on the go on the cnbc app app. we will be right back. that's the clarity you get with fidelity wealth management.

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back to mike for a look at how investor sentiment is holding up >> it's a split depending on which investors you want to track here that weekly retail investor survey we look at a lot. the american association investors shows bearishness over the last few weeks another week when there were twice as many people, that typically is a pretty upbeat

contrarian signal. usually bad things don't happen to stocks when everyone's expecting bad things so that's in a way encouraging for the market but then if you look at more professional fast money professional or tactical traders, they're getting less nervous and more confident less hedging, less bets on the downside for socks and that suggests that at least coming into this week, short-term complacency. i think this fits together in a little bit of a nuanced picture where it is i think the hot money definitely got a little overconfident with the market rally, but there's a long-term investor skepticism out there, too, that would seem as if combined with very high cash levels to buffer the market against immediate deep downside for the moment >> mike, thanks. some good news for the 8.1 million americans with an fha

insured mortgage who may be struggling financially. the federal housing authority announcing today it is extending the moratorium on forclosure and eviction for single family borrowers through the end of june joining us now, dr. ben carson, the secretary of housing and urban development. nice to have you here. talk about how the extension that you put in place today is going to help million of americans and what happens when it runs out come july when those extra unemployment benefits also are set to expire. >> when people are worried about their health and the health of their loved ones, the last thing they need to be worried about is is whether they're going to lose their house. that's why we've aggressively moved forward with the moratori moratorium the original one is expiring so it needs to be extended and we'll do what's necessary. fully recognizing that you know this crisis will end

this is is going to go away. this is temporary. what we have to be able to do is bridge the gap and to keep you know the housing market in tact. to keep the economic infrastructure in tact long enough to get people back to work again. >> secretary carson, i think you said you extended the eviction moritorium to the middle of next month, june. you just mentioned the work you've aggressively extend ed te moritorium i guess that's not an aggressive extension as i look at it. is this also a pledge that you'll extend it again by another month if we start to come up to the mid june date and the economy is still suffering like it is >> well, again, the principl again being that we have to maintain the infrastructure in an appropriate way we can't let it be destroyed and have to start over again so we'll do what's necessary in order to do that

>> you said it's going to be temporary. i mean another 3 million americans files last week for unemployment benefits. we have now seen more than 36 million in a matter of weeks secretary carson it doesn't seem like it's just going to snap back >> because we mentionly shut down the economy recognizes this is a very, very strong economy upon which this is built as opposed to back in 2008 that was a very weak economy so it took an extended period of time for it to return. in this case, a lot of underbrush is being burnt off. no question that some businesses won't come back. but the ground is still very fertile and people are still very innovative and entrepreneurial. and things will come back. and that's what people have to recognize. we're making sure that we don't get into a situation where we'll

destroy everything and have to start over again >> secretary carson, most of the reporting out there seems to suggest that the democrats are pushing for much more help for renters and homeowners and that the administration is the one pushing back on that in terms of the shape of the next government relief bill any way. where do you stand on that are you u pushing back or are you in fact campaigning for much more help for renters and homeowners yourself? >> well, again, recognizes that thib things were moving along qe well we have very low unemployment. businesses are growing and this is always the go and you need to determine what you're going to do based on reestablishing the path way to maintain that type of economic activity so that's really the answer it

depends on what we're going to be able to accomplish. if we're going to increase debt and not really concentrate on how we reopen the economy, we're not doing a whole lot that's very helpful in this situation >> what about what democrats are proposing. 100,000 as part of their new heroes act is that something you would support given we have very high unemployment right now and a lot of renters need help >> i support helping renters i every way that we can including opening up the workforce again i'll be willing to do whatever is necessary to keep them sheltered and moving in the right direction. what the dollar amounts are remains to be seen but i look at

it more as an investment, but we don't want to bankrupt the next generation in the meantime and that's an argument that a lot of people really haven't stopped to think about. you know thomas jefferson said it is immoral to borrow from future generations. he would u probably have a heart attack if he were here today seeing what we're doing. at the same time, that doesn't mean we're not going to take care of the people who need to be taken care of >> yeah, i mean i think right now, the crisis is so large and so deep and we're seeing unemployment numbers we haven't seen since the great depression and businesses are literally frozen, there are a lot of warnings that small businesses are just going to go under that that is offutt most concern, an immediate concern of how much fiscal health they can get now to use that to borrow jay powell's quote right now we'll worry about the debt

later. right now, we have a massive economic crisis to get through >> well, you know, i probably am somewhere more in the middle i recognize that we have to do what we have to do in order to keep people whole and not to destroy everybody's lives. i understand that. but i also understand that if we shutter everyone and don't reignite the engine of this economy, you're going to have a situation that is so devastating you'll have a lot more people dying than ever have died from the virus. so you have to be able to weigh these things together and not have one subject taboo that you're not supposed to talk about. >> secretary ben carson, thank you for weighing in. >> okay. >> still to come, a look at the atoforavusesngndste conir tti a which companies have the most reliable tests thus far. back in a couple of minutes. eighty dollars.

a hundred dollars. i had good health insurance. why isn't this covered? well, then they started getting bigger. eight-hundred dollars. eighteen hundred dollars. i saved for this. but not that much. i'm glad i had aflac. they gave me money when i needed it most. that's why aflac is here, to help with the expenses health insurance doesn't cover. i love that aflac duck. aflac! get to know us at aflac.com we hope you find our digital solutions helpful to bank safely from home. deposit a check with your phone or tablet. check balances, pay bills, transfer money and more. send money to people you know and trust with zelle. stay safe. stay home. together, we'll get through this. pnc bank

. investors have been b giving bio tech the stamp of approval during coronavirus, but coming up, we'll have the new head of innovation organization why the pharmaceutical industry's approval among the public has been slipping. back in a couple of minutes. siss 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.

time for a coronavirus update with dom. >> california governor gavin newsome is proposing more than $6 billion in budget cuts in order help off set the pandemic. newsome is asking state workers to ask a 10% pay cut as part of that proposal. in michigan, protests at the state capital continued in the

rain today crowd were smaller most called for the governor to e reopen the state some showed their support for the stay at home order as well and a new study shows speaking creates tiny droplets that can remain in the air for eight minutes or more. the researchers did not look at whether coronavirus could be transmitted through u speaking, but the author says the results make a strong circumstantial case that droplets created in normal conversation could create a risk of spreading the coronavirus and in dallas, hurricanes of people lined up to receive food from a texas food bank volunteers and the national guard helped people load their vehicles last month, the north texas food bank handed out 7500 boxes of food this time, they plan to distribute 10,000 of them. as always for more on the coronavirus and coverage there, head over to cnbc.com. sara, back to you. >> dom, thank you. up next, we'll take a look at

the state of the biotech industry as those stocks trade near all time highs. ♪ ♪

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the industry increasingly sees its work right now as an opportunity to regain the public's respect both the ceo of bristol myers and pfizer expressing that sentiment earlier this week at b cnbc's he wialthy returns conference listen >> i know that it increases appreciation for the role we play i think it's really important. we have a major role to play in addressing this especialpidemich level of cooperation between our companies in tri industry, it's really unprecedented >> i hope that these prices could reset the perception involved that the industry is bringing to society. millions of businesses and governments are investing their hope for a solution to the pha

ma industry. that should mean something >> but the data tells a different story. cnbc's polling and partnership with change research shows the public's perception of the drug industry actually declined between april and may. our next guest hopes to change that joining us, michelle mcmurray who was just announced as incoming ceo of bio. she's joined by meg. meg, take it away. >> thank you so much and dr. mcmurray heath, it's great to have you with us i want to start by asking if you agree with the ceos who hope that their work on the pandemic is is a moment to regain the public's trust and respect what do you think? >> well, first of all, thank you for having me today. i think it's an incredible opportunity for the public to get to see the very incredible work that our scientists are toi doing every day. it couldn't be more true that

science and access to science is a social justice issue patients are waiting for the solutions that our companies and our innovators produce and we have to do everything we can to make sure that we are delivering those innovations to patients, saving lives, improving people's health and improve iing the sta of the environment >> do you think if the industry is able to regain the public's trust through this work and through bringing new drugs and vaccines at report breaking paces to save people from a pandemic, does it then need to change any of its current practices to keep that trust >> it's very true that patients are frustrated we need to do everything we can to make sure that patients in need have access to life saving cures and solutions. that's a bottom line that's a must do but at the same time, we need to do everything we can a scientists to illustrate how challenge iing it is to really

answer some of these remaining questions. follow the easy questions in science have been answered what's left are the hard challenges what's left is big science and it takes a concerted effort and grit and determination to solve those issues and to improve the lives of the patients waiting for them >> and i apologize, this is so quick, but we are bumping up against the end of our show. i just want to ask do you think the industry is going to come through within a year and a half or o even less than that with a vaccine or a drug to help us with this pandemic >> you know, meg, i spent over 12 years at the bench and treated patients in the e rerks and it's been incredible to see the pace of progress in the last 16 weeks, over 400 projects have been launched by bio companies trying to answer the call of covid. over 80 vaccine development programs are underway. this is an unprecedented feat that we are witnessing and i'm hoping that the answers will come at an unprecedented rate.

it's incredible to see the dedication of the heroes and sheroes in science that are trying to answer this call and we are all depending on their success and i hope we'll all cheer them on. >> well thank you so much for being with us. i love the term sheroes of science and hope we get to use it r more. sara, back to you. >> meg, thank you. breaking news here on the new york stock exchange. president stacy cunningham writing in an op-ed that the trading floor will reopen to a subset of floor brokers on may 26th the day after memorial day remember it has been closed for trading all electronic, so some indication there that she is looking at reopening giving a date. may 26th, for some floor traders. we'll try to confirm that and get more information about how u that would look and work, wilfred. >> and when we'll be back joining them >> of course and when we'll be back

unclear about that as well. they were sort of, criticized. late to close. still operating and had floor traders even though they were taking temperatures and doing checks and doing tests, which actually found out that a number of those tests came back positive and so they had abruptly shut down and as a result we had to switch to electronic trading fully and there is a debate now on whether that floor needed to reopen and how that does impact the actual flow of the market, the trade, and the closing hour, for instance a lot of people said there was nor volatility now that they don't have the floor trading. >> i, for one, can't wait until it's fully operating and we are there in person. safety first, of course, but it will be great to be back in the middle of the action just ahead, richard burr tem temporarily stepping down amid the coronavirus sales. we'll bring you the latest after this break (♪)

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get the connectivity your business needs. call today. comcast business. >> senator burr stepping down as senate intelligence chair in the wake of his probe as stock sales. kayla tausche has the latest. >> the move effective tomorrow comes as north carolina republican senator richard burr

is the subject of a federal probe into possible insider trading after well-timed stock sales in mid-february that came just after he attended a briefing in late january into the coronavirus. now cnbc has learned that senator burr attended at least three additional private briefings on the coronavirus that were hosted by the intelligence and health committees where he served some senior roles one of those briefings took place on january 12th, just the day he sold stock worth between 600,000 and $1.7 million those sales taking place before the market tanked 30%. the fbi obtained a search warrant and seized the senator's phone last night, a senior law enforcement official tells nbc news the senate ethics committee is also investigating burr's actions at his request and while the the senate republican conference rules only require a member to step aside like burr did today in the case of a felony indictment, today he told

reporters he felt it was a distraction. >> this is a distraction to the hard work of the committee and the members and i think the security of the country is too important to have a distraction. >> the trading activity of other lawmakers has also been called into question. senator dianne feinstein of california, her office has said that she has answered basic questions from the fbi and provided documents showing that activity by her husband had no involvement by her and the office of kelly leff ler had said that that office had not been searched with a search warrant. >> looking ahead, parts of new york set to reopen tomorrow and contessa brewer with what we should be watching for contessa >> wilfred, baby steps toward reopening what has been the epicenter of this outbreak new york'sgovernor says four regions in this state have met the benchmarks for phase one reopening tomorrow these are some of the more rural areas of the state, counties in many cases that have seen cases

only in the low dozens well, beginning tomorrow they can launch in-store or curbside pickup for retail, wholesale trade, manufacturing and construction,ing a culture and forestry, social distancing rules are mandatory and where possible, face masks are required some of these businesses, let's be honest, wilfred, have never shut down during this outbreak they have defied the governor's orders restaurants and professional services and schools remained closed statewide in new york, but at least it's a start. >> behind you, contessa, it looks lovely upstate somewhere. >> it is everybody needs fresh air. yes. >> contessa brewer, thank you very much for that we have a few minutes left and time for final thoughts. the standout for me as we discussed earlier, just an enormous bounce in bank stocks and wells fargo in particular, but i guess it's only hardly

makes any difference to the statistics year to date down 32% for wells fargo and those are the year to date figures comparing to the s&p which was only down 11%, 12%, mike and a little bit of a rebound today and it needs to have a prolonged week or so of rotation for it to make a big difference there. >> for sure. the rubber band snapped back at least partially. what i found interesting is in the context of those beaten up areas getting a reprieve today by the end of the day the overall index was not going to buckle until it did have the big, traditional growth stocks and the nasdaq mostly participated, as well. so you do have this kind of positioning flow that i do think is very important when we're in this range bound market not being driven so much by real time economic numbers and it is about what's been beaten up too

much and where is there too many shorts and where do people feel underallocated and definitely a little bit of a bad day for the bears in a sense because the market refused to buckle when it seemed like there was a chance for that there have been a few chances for a three-day down streak for the s&p in the last stretch. we have not had one yet. >> so for me, the focus continues to be, and i think this is a huge wild card on what the consumer is going to do and how the consumer emerges from this crisis. we started the day with another 3 million americans filing for unemployment benefits even if connecticut's numbers were overstated there and just what the damage is going to be done don brought an update on the lines at the texas food banks and then at the same time you hear these updates like we brought this hour from nike that they are slowly and trying to safely reopen and 5% of stores in north america, a greater percentage about 40 or so in europe, mideast and africa starting to open the question is will the

consumers come and what does that demand look like after we continue to see so many people losing their jobs. are those going to be temporary? are they going to come back and will there be this pent-up demand that the markets are looking for and it seems like the markets are starting to see the retail and starting to see the restaurants and the demand side is a question >> yeah. for the market right now it's grading on a curve and even the mastercard data said the last couple of weeks looked better and an extremely year base, so it is a tremendously open question and the higher stock prices go, the tougher it will be for just that kind of modest, incremental move to have an effect there will be a big consumer loss in the middle of this economy and it's going to get absorbed somewhere we just don't know where and how quickly it can get refilled. >> sarah, nike will be a great one to look at over the next 6 to 12 months to see if consumer habits and the way they spend

changes forever and not just temporarily and the comments were absolutely fascinating and a huge uptick in terms of engagement and will that mean people will not have to go back to bank branches and we'll have to wait and see and it has implications for all industries. we are out of time for "closing bell " melissa lee has you covered. >> tonight's trader lineup is guy adami, tim seymour, steve grasso and more troubles for the airline industry plus the gold miners and they'll break down how they're making the big move and making the bacon how breakfast is giving a nice sizzle for this food stock. the financials leading today's charge rallying 2.5% and check out this move in wells fargo, the stock climbing 7% today on reports that goldman sachs is considering acquiring the bank we don't normally talk about