alternating between green and red. but i think one of the big stories this week is the move in oil as it presses in on $30 a barrel probably because of production cuts and also maybe some demand coming back so i guess that might be a little bit of a silver lining in all o this. have a great weekend >> you, too. enjoy the garden >> all right thanks a lot we'll put some miracle grow in breaking news coverage continues now with the gang from the closing bell >> thank you, tyler and kelly and welcome, everyone. i'm sara here with wilfred stocks have once again edged into positive territory in a volatile day of trade just turning negative 59 minutes left in the session in what is on track to still be the worst week for stocks since march. let's look at what's driving the action an historic plunge in retail sales and industrial production as coronavirus freezes the u.s. economy. increased trade tensions with china. the administration looking to

block shipments of semiconductors to huawei and more signs of unprecedented pain in the labor market as layoffs surged to a record high, but u there's in data showing consumer sentiment isn't as bad as fear. zpl we're just on the s&p, flat on o the dow, just higher on the nasdaq we'll distusz the tensions and drill down on the impact with t.j. rogers. first of all, mike is tracking another volatile day for markets. elon has more on the escalating tensions with china and josh is watching the move lower r for chips. but mike, kick things off with you in the broader markets >> for a second day in a row, the indexes were able to steady themselves after a big decline in the morning maybe one of the take aways of

this week, there's been kind of a correction the average stock is down a fair bit but the s&p 500 didn't have a three day losing streak and hasn't been able to generate very much downside momentum. take a look at a two year chart of the s&p it has settled into a range just below the recent highs also at a familiar level where there was just a ton of activity over the last few years couple of major highs. also where the market based last sumner that recession scare so clearly indescisive, but definitely able to find some traction the last couple of days with some rotational activity. wanted to lock ok at oil, too we were below zero on the near term contract just a little over a month ago and what we have now is a market that has risen to a level that represented the floor from early 2016. remember, we only traded below 30 briefly back then 26 or so was the low so the question is is this about

as far as this particular bull move in crude oil might go before it gets a little bit tougher on the way up, especially given what the demand situation looks like but there's been progress so far taking the pressure off some of those credit sensitive energy stocks >> to your point about that little bit of rotation that perhaps we saw at times during the week, if you look week to date, month the to date or quarter to date, including april as well, that just hasn't held occasional days where things like the banks bounce, it's far outweighed by the theme of late which remains value underperforming. >> absolutely. every one of these little reflex moves has been countertrend. which means it's just a little bit o of relief, snap back when the relationships get stretch, but hasn't been anything like an inflection point in terms of the styles and stocks that are not working. >> yeah, what do you make of the underperformance of the small caps

a lot of people, the deabears a pointing to that the s&p equal weight pointing to groups thstill stuc in bear market territory which is not seen by the overall index which is so dominated by the big tech stocks. >> for sure, it's obviously a little bit of a wait around the bull story although it hasn't been getting worse necessarily. it's just kind of continued that the average stock has underperformed the big cap indexes for the most part. the equal weighted s&p was down 8 to 10% so that's pretty much an internal correction of the market that the headline index didn't have much to do with. it's on some level, rational smaller stocks have less market power. probably going to have more debt and less flexibility we all know the reasons and so far, the fundamentals haven't been able to generate a lot of conviction that that trend is going to change just yet

>> all right, mike, we'll see you in a bit meantime, tensions between the u.s. and china ramping up again today as the trump administration moves to block shipments of chips to wa hey elon has more on the friction between the two countries. >> that's right. the white house is going after huaw huawei's supply chain because the administration believes it relies too heavily on u.s. technology and software so this new rule bans companies from supplying huawei with chips made with american designs or parts unless they receive the special permission from the commerce department also the rule applies not just to huawei, but to its affiliate and in house chip maker high silicon and the goal according to the administration is to stop huawei from trying to get around u.s. export controls remember, the company has been on a blacklist for the past year and in a statement, commerce secretary ross said huawei and its foreign affiliates have stepped up efforts to underline

these restrictions through an indigenous effort. this is not how a citizen beh e behaves ch this comes as the white house is blaming china for spreading the coronavirus. this afternoon, he told china he is -- meet its obligations under the phase one trade deal these new rules were js made formal in the past hour. they don't come into full force for 120 days so guys, the company and the industry will have time to weigh in with their perspective. back to you. >> what do you hear from your sources and members of congress about china right now? how serious the threat of ret retaliation is for china against the coronavirus and now that this trade deal may be in jeopardy >> well certainly amongst republicans, there is support for taking a harder line on china at this time we've heard from tom cotton who is supportive of this move and

you're hear iing from republicas that they want to actually impose sanctions on china for failing to control the spread of the virus. their concern b about potential hacking. so certainly president trump has some political support amongst republicans for this harder line democrats calling this just diversion. >> thanks r for that s&p 500 just positive as we stand. those rising tensions having bi impact on the chip sector today. josh lipton has been tracking that story for us. >> so wilf, check out the etf that tracks the chips. it's now on pace for its worst week in nearly two months. though still up sharply from its mid march lows checked in with chris of susquehanna. he thinks some of the sell off is overdone though yes t u.s. government is looking to cut off huawei from american shares, but that could mean good news for rivals, an opportunity to gain share. u.s. semiconductor companies can

still ship to those firms. tsmc now saying it's going to build an advanced semiconductor fab b in arizona spending $12 billion to do so with support from the u.s. government now it isn't clear what that support means, production starts in 2024 and will create 1600 jobs according to the company. back to you. >> thanks so much for that and sara, this is a weight on sentiment in the broad er marke. interest thag the rest of the market has shake beikaken that . the tsmv news is interest iing n terms of the delay we've got until we get to that point and i guess there's still a lot of room for this to never take effect for decisions to be drawn back again before they really come into effect and that requires a lot of political tensions to ease before them >> well like we saw with fox con in wisconsin sure

no question. it's a big win jim cramer said focus on that. that taiwan semi, which should qul upset china, is going to build this big plant in arizona. a win. instead of stoking trade tensions at a time where the calculus is just different for the u.s. we have more than 30 million americans unemployed we're in a very deep recession data point after data point highlight that it could be a tough time for the u.s. to go after china and also threaten motariffs in a break o the trade deal which only hurts the u.s. economy as well as china. >> yeah and you wonder to what extent china is now better prepare prepared to respond in a way they weren't a couple of years ago. they wouldn't have been if this had happened a decade ago. they've known the threat to huawei exists for quite some time for example and source other suppliers and other ways

around it. >> they're also threatening retaliation and naming names of companies including apple, that could be on the enter theties list we're trying to monitor them and could punish them companies that do a lot of business that are american companies. >> two great guests coming up on these topics don't want to miss those >> oh, kyle's going to have something to say about this. >> no doubt about it we've got what, 50 minutes left of the session all three of the major averages are higher just slightly nasdaq up 0.4% leads the charge. russell 2000 up 1.5% ahead of the three bigger cap indices today. after the break, it's been a rough week for financials. bank index down nearly 10% for the week as a whole. we'll kis discuss the names to buy on the dip with mike mayo. next

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thanks for joining us. let's start on that headline point about how much the banks have underperformed of late. do you think it's justified or overdone >> well, these are sobering times. and thanks for having me on. unemployment's going up. you're seeing bankruptcies then you had the fede iing around thd stress test and how that impacts banks. so you have up to six weeks of waiting for the fed stress and what that means for bank dividends. having said that, this is an income statement recession for banks and not a balance sheet one. a decade of repairing and reenforcing bank balance sheets make banks prepared to absorb the likely losses that are to come ahead it's earnings. it's going to remain earnings hell maybe for the next quarter or two or for much of the rest

of the year, wu the banks have the where with all to absorb the losses and still broke book values that we think still earn their dividends you know once or twice over >> i guess some banks are going to need more capital as you suggest. one bank in particular has been able to raise about 33% of its market cap $15 billion this week by selling its stake in black rock the ceo of pnc was on with us yesterday. let's listen to a little sound bite from the interview yesterday in terms of what that capital might be used for if it is indeed for an acquisition >> this most likely form it would be another bank. we're not you know bearing off from our strategic direction of wanting to establish a national presence on both retail you know and cni side we've been doing that through a digital strategy, primarily digital strategy branched in networks surrounding it.

the ability to accelerate that strategic direction through acquisition would be attractive and it's a game we know well and we execute on well and it's market that's wildly fragmented. >> mike, what did you make of his comments there in terms of if he's likely to make an acquisition, what type of company it would be and if that might come soon or not >> i would say one word to what phil had to say. that was brilliant this is a brilliant move by pnc to build up a war chest to both you know weather this recession and also to capitalize and be a source of strength to some banks that probably won't fair so well remember this, bill led the effort for pnc to buy national city during the global financial crisis at 40% of tangible book so he's not likely to get another bank at 40% of tangible book he's likely to have the best

opportunity to buy another bank since that time and wilf, here's a very important point the balance power now is shifting from the sellers to the buyers like pn krrkc and now they haveo $12 billion in its pocket which it can spend on another bank or it could be a nonbank or f fintech, but they haven't now and they're ready to move and to do so from a position of strength and they have the technology which is making more of a difference than ever before and i really liked how in your interview yesterday how you got them to talk about that digital transformation and how these last two months have accelerated the digital transformation by ten years. that's a sign that size is making more of a difference than ever before so those smaller banks which were kind of you know, losing share, they had been losing share over the last few years, that's likely to accelerate and create even more

of a need for them to join up with the likes of pnc which has the highest quality bank in the banking industry with these enormous capital ratios. >> i thought the numbers on digital banking were strike iins well, mike, and you don't necessarily think of a pnc to be a huge beneficiary of that bill was saying they were in front of them. what's that ultimately going mean as far as bank branchs in this country real estate? jobs how do you see this transition impacting the real economy in. >> let's not forget banks are part of the solution now to this recession where as before they were part of the problem and part of the solution is helping out customers. not laying off employees at the largest banks. contributing to communities. so as it relates to jobs, you had the ceo morgan stanley on said that was an easy decision

for him to make even though it hurts expenses what it means for bank branches an acceleration of a, a reduction, a reduction in real estate and what you're seeing here is there's been a certain set of customers that were resistant to going digital who have been forced to do so. so a lot of older customers who were used to going to the branch, they're not right now. they have to use digital a lot of small business custo r customers who part of day-to-day transactions, they're not going to branches. you accelerated, the pandemic has forced customer behavioral changes that in turn makes the branches need it much less and wow what a difference bank branches expect an acceleration in the reduction >> so, pnc is cheerilearly goin be in the game to make an

acquisition. what about the banks bigger than pnc? there's been speculation of possible m and a up the size is that real ist oik or hard to expect regulatory approval >> well, look. goliath is winning you can look at the first quarter results. you have a play to quality benefit. largest banks. more deposits and more loans the largest banks have more capital markets. an extra pillar and you're seeing additional scaled benefits from technology so big bigger is better for the first time like yeah, over the last couple of years like ever. so we would expect a lot of consolidation. i don't see how that would happen the idea of maybe buying a bank, a nongsi b, that's certainly possible and there's a lot of moving parts here so the longer

this recession goes on, the deeper it goes on, the more possibility there will be for something like that to happen. but the idea of these megamergers among them, that's not likely >> globally systemically important banks. the biggest six or seven in the country. just really quick because i know we're out of time. which is your top pick >> look, the highest quality bank right now, we love what pnc did. the high beta one would be citigroup. if your willing to take some risk, go with citigroup. it's undervalued if you just want the higher equally, go with pnc >> thanks for joining us >> breaking news on tesla. phil >> take a look at shares of la electrek, a website that tracks

the electric vehicle industry is reporting that elon musk has essentially decided that the next final assembly plant what their calling the next giga factory for tesla will be in the austin, texas area they're not saying there's an official spot that's been picked out yet, so that may need to be worked out, but according to electrek, he decided he wants to have the next assembly plant for tesla, which they've said they're going to have another one here in the united states, would be in the austin, texas area, and hemts he wants to get it up and running quickly. we have reached out to tesla and haven't heard a comment on this report guys, if it is, it would not be surprising e elon musk is spending more time in texas. he has been speaking very favorably about texas and we know they were looking for another location for a second plant in the u.s., more centrally located. >> wasn't e he threatening to

pull out of california on the fremont place? >> what he was threatening was the he was saying we're going to move our headquarters p either to nevada or texas and whether or not to go down the road that remains to be seen and how the state treated them's be clear. they've said they want to have a second plan. >> right got it thank you. just under 40 minutes left of trading. take a look at the major averages big recovery from this morning dow is down as much as 271 after the open it's now up 48 points. s&p going strong up four points. still looking at our worst week since march but looking to end on a high note nasdaq is up half a percent. style ahead, kyle bass has been outspoken b about his hawkish

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34 minutes left of trade a check on the markets we continue to build momentum. down to 44 nasdaq is up half a percent. it's the russell 2000 which had been lagging which is up sharply up 2.5%. checking in on individual market movers shares of draft king posting a larger than expected quarterly loss sales revenue growing 30% from a year ago despite the pandemic shutting down. it does not expect a virus related impact the stock is up 13%. and office depot says it plans to cut more than 13,000 jobs and close an undetermined number of stores by the end of 2023. the office simply retailer says

the restructuring could save it as much as $860 million. the stock is up 8%, but oh, bad news again on the retail jobs front, wilfred >> unbelievable. the markets though are high er b 0.2% s&p and dow. nasdaq is up half a percent with 33 minutes left. president trump saying this afternoon his administration hopes to have a vaccine ready by the end of the year. we'll have scott gottlieb if he thinks it's realistic. he's he's check in on bonds yields starting the day low e but improved o.64 back in a couple of minutes. these days, it's anything but business as usual.

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we were down 270 points on the session but all three higher with 30 minutes left of the session. here are the key things driving the action a drop in retail action as the coronavirus freezes the economy. increased trade tensions china with the administration move in to block shipments of semiconductors to huawei and more signs of unprecedented pain in the labor market but there's new data that consumer sentiment is not as bad as feared. >> time now to get a cnbc news update >> good afternoon, everyone. ivanka trump and secretary of agricultural touring a food service business in maryland they're promoting a new $3 billion food program to help those affected by the pandemic

it's called the farmers to families food box program and it gives money to small businesses so they can distribute fresh food to non-profits and religious organizations. fitbit will begin making ventilators. they'll submit their technology to the fda in the coming days and in south carolina, nascar gets back on the track this sunday there won't be fans in the stands it will be the first nascar race because the season got put on hold the race will pay tribute to front line health care workers for more coronavirus coverage, head to cnbc.com back to you. >> thank you still ahead, rising tensions with china kyle bass joins us with his take on escalating tensions between the u.s. and beijing then we'll speak with tj rodgers about the

impact of the tensions on the chip sector and new measures announced from the white house on that front and tonight, 7:00 p.m., a new battle breaking out over what passengers want and what airlines are willing to give when it comes to safer seating. food fight ahead of the grocer's union ending its bonuses for front line store workers w d four individual business owners their struggles and how they're survive ng this period it's all coming to you tonight, 7:00 p.m. eastern for our special report is the salmon wild-caught? she only eats wild caught. [cash register beeps] uh, i need a price check on honey. don't get mad. get e*trade and get more than just trading. investing. banking. guidance.

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tensions between the u.s. and china escalating after the trump administration issued new restrictions cracking down on chip exports to chinese equipment maker, huawei.

in a statement, commerce secretary ross saying in part, we must amend our rules exploited by huawei and high silicon and prevent u.s. technologies from enabling the line activities contrary to u.s. national security and foreign policy interests joining us by phone, kyle bass, founder and cio of hayman capital management hedge fund manager, kyle, and outspoken critic of the chinese government and especially lately in their handling of this virus. my question is is is now really the time to stoke these tensions with china a time where tens of millions of american rs out of work and are economy is deep in recession >> i guess if you're accusing whether we should wait to go ahead and do what we should have done long ago because it might affect your gdp by another couple of points, i think there's no better time for the president. when you look at huawei, cte,

they are the cancers to the global telecom networks. as you know, every single company based in china must do as the chinese government says it's their national champion and all the way back to the beginning of huawei in 2003, they stole cisco's source code and developed their own router and that was the formation of the entire company they steal from cisco, motorola and then you have huawei and cte going all over the world and bribing local governments. north africa, southeast asia look at all the countries they go into and they bribe, cheat, steal. that's how they infiltrate the world with their equipment then they own the data because it's going across their networks so i think we should stop it right now. >> kyle, whether that's true or not i guess it's in the past and we've known what huawei is like for the last couple of years does it make sense to be doing

this now when i guess they've had a warning shot in the last year or two. have they already learned to adapt? will this be as effective as it could have been? >> i mean wilfred, they're a $90 billion revenue company all over the world and you know whether they're using it for chinese you know, spying or chinese diplomacy or some mixture there of, we still have huawei and e zteed right here in dallas in the united states. you know, they need to start adhering to our laws and we need to bring our rule of law to them for all the global infractions they've engaged in i'm actually flabbergasted that the u.s. department of justice hasn't brought a case against either one of these companies. i imagine we still can if you just look at the facts, wilfred, these companies shouldn't be allowed to do business in the united states, period >> i think that's fair, kyle, but it comes on a week where the president has threatened to cut

off the relationship with china, where he's questioned whether china was adhering to phase one of the trade deal, where republican senators have floated the idea of sanction as against china for stopping the spread of coronavirus. really ramping it up on china at a time where as i said, american companies are suffering and the last thing they want is probably tariffs. >> i guess from my perspective and maybe i look at this too simplistically if the most big wall streets say if we completely decoupleded and separated from china, it would cause a 2.5 to 3% of gdp hit on the united states and the way that i look at china is they steal 2 to 3% of gdp and intellectual property from our company every year according to the u.s. defense department and the white house. and so and they earn profits on that theft so i just don't understand why we interface with

an enemy like we do. one thing that's not brought up on b cnbc often is they got over a million prisoners of conscious in religious camps yus for their religious preference i thought we went to never again after world war ii why does u.s. and wall street engage with such a murderous regime you guys are saying why now. i don't know why we ever did in the first place. >> what, kyle, do you think the likely reaction is going to be from china if things continue to amp up and this time, there's no phase one deal that takes the kind of heat out of the room where do we end up in six months or five years? i mean i'm going to put the word out there. is it possible this goes to the military level or not? >> well, look, i think there are four different wars that can be fought with china. we're already in the midst of three of them and the only one we haven't been fighting is a connectic war. i believe chinese economics as

somewhat of a paper tiger. they claim to be 15% of global gdp yet less than 1% of global cross border transactions settle in their own currency. they have a closed capital account. no one takes their currency as legal tender china's only as strong as the west says they are so it's my view that the west holds all the cards here and what we need to do is get china to play by the global rules they dance to the beat of their own drum and they don't care about laws they don't care about line about cheating about stealing anything to move this chinese agenda forward that's their plan. and so if we start enforcing our laws against them and they start playing by the global rules then i'm okay with fair trade i'm not okay with the manner in which the chinese commerce party operating today in many different ways >> the problem with what you're saying kyle, is it's too late. talk t

protector and gamble coca-cola. these are companies with a huge perresence in china yes, we can move critical medical supplies back here, which would be great and there's a huge awareness of that post pandemic, but this is already a globally interconnected economy that relies on china for growth. are you denying that >> i guess are you saying there's nowhere else around the world that can manufacture cheap iphones or cheap t-shirts or electronics? look at the rest of southeast asia >> i'm sure there are even cheaper places than china but it's also a consumer demand torre as well. >> yeah but they have to pay dollars for it, right? we have to keep funding them with dollars they have, they have come at us in so many different ways. they have infiltrated supernational institutions like the world bank, african development bank and even the w.h.o. in the last few months and everything they do is in an

effort to get these institutions to pay dollars to chinese loans. when you look at the chinese grand strategy and you know their plans for 2025 and 2050. if you look at secretary xi's speech from the last party congress in 2017, their plan is easy to see. it's just we on wall street and we in the united states, we can't wait to chase is.4 billion consumers and somehow figure out how to sell them things when in the end, i think all they do is enrich few people in the united states and they repress and s suppress their own people and don't live by b global standards. i just don't understand why we even interface with them given all of the inputs and the facts that we now know today >> let's talk about the markets and maybe start here with the s&p 500. are you surprised that the level of bounce we've seen from the lows is it too rich at the moment >> that's the best question of the day.

i think that when you look at the enormity of the fed's balance sheet and how much, how quickly congress is acting on the fiscal side, that's what's driven this market number one, liquidity, number two, the amount of capital that's gone into buying corporate bonds and etfs and bank debt and senior loans and everything that's being brought. today, the fed's balance sheet is almost $7 trillion today. so that's why stocks are where they are we just hope and i am optimistic that all of the west's talent is focused on developing a vaccine. there are 75 plus vaccines under development and there are a few teams that are ahead of others and no vaccines come from start to finish in less than three or four years and we're talking about bringing one in less than a year i hope we get to a vaccine before year end and find medicines that are effective and if they do, then these valuations make a lot of sense if we don't, then the market is

way ahad had of itself so i can't give you a great answer other than today, it seems to be b way ahead of itself, but human ingenuity and our scientific capacity will be there and will get somewhere by the end of the year on a vaccine. >> hopefully amen to that how exactly are you positioned right now, kyle? >> you know, i'm cautiously optimistic and invested long the united states. and you know, looking at the crucibles around the world of interactions with china and the leverage in the southeast asian banking system, call it long the u.s. and short southeast asia. >> and kyle, just to round it off outside of the positioning, how regularly are you in touch with the president or his administration and do you think he listens to you with your views on china >> first of all, i've never spoken directly to the president but i have plenty of contacts all over the administration and the think tanks and everyone

that i speak to and on the china initiative and particularly look, there's one issue with china that's the most burning issue i have a lot of interaction on, the it's chines companies listed here not add e hering to the same audit standards. if cnbc were to conduct a poll of 10,000 investors, i bet 85% of them would tell you they thought alibaba was subject to the same standards as ibm and they're not. may 7th, 2013, we gave them pass and we said you know what, it's okay if you guys don't want to adhere to pcob covered audits because you say every single chinese company and their data is an issue of national security, but guy, it's time to level the playing field. the president and his administration needs to focus on forcing compliance for all foreign issuers to submit themselves to the same audits that u.s. companies submit

themselves to or they shouldn't be able to raise money in the united states. >> kyle, thanks so much for joining us great to see you >> kyle bass we are flat on the s&p 500 with what, 14 minutes left of the session. up next, uninterrupted coverage of the falin minutes of trade when we go inside the market zone 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

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closing bell market zone going into the close mike, crucial moments of the trading day and today, we've got charlie aboard as well welcome back we'll kick it off with the br d broader market after opening under pressure the dow, s&p and north ameriasdk for their first worst performance since march. what stands out to you in terms of today's action and the week and whether we were wondering earlier in the week if there was some bigger, broader shift in sentiment and in price action than the big bounce we had seen

off april. now the focus on sort of reality and the reopening and the fact it might not be as optimistic as people hoped it would be >> i think the market's re-grouping here after a big sprint i think the average stock if you look at the typical list of stocks is definitely given back more of the bounce and the headline indexes have. that's pretty normal as the market consolidates here i think it's noteworthy that the overall s&p 500, the other big indexes have not really generated multiday downside momentum as of yet so i do think it's still very much a push bull market. i've always been of the mind as you know, sara, that even ebb when the market was racing ahead in the rebound bounce, it wasn't really pricing in a real quick turn to a very strong economy. the it was just taking advantage of oversold conditions high liquidity, fed support, good credit markets, comeback and then some big stocks

>> i guess that probably got you a bit excited. short lived excitement >> yeah, obviously when we talk about the market and how well the s&p has done, that's mostly growth stocks. the faang stocks so i do laugh when people say they think the market's too optimistic and pricing in too much of a recoverecove recove recovery we tarted to get better improvement. some of the bigger names have come up a fair amount of their bottoms but we didn't get the kind of rotation we still need better news on the economy for that to happen >> on top of that, stock specifics in terms of outperformance and underperformance part of that is balanced on belief that the work from home means we're going to change our behaviors forever. where do you stand on that is this. >> i'm glad you asked. i think what is happening now is

that there are certain kinds of companies that are doing well in this environment and the market tends to extrapolate and think that today is going to last forever and we don't think that is the case there are things like elective surgery that replacing hips and knees. nobody's doing that right now. so stocks like zimmer are getting crushed. we love madison square garden, which owns madison square garden and we think people are going to go back the sporting events. i think you're right people are overextrapolating >> retail industry it's been holding up pretty well today despite a huge decline in retail sales this morning. courtney has a a look at some of the movers today hey, court >> some outsized moves in some of these retail stocks despite the worst ever report showing that sales in april were down u 16% and down 22% from last year. take a look though at department stores those sales 29% in april from

march. j.c. penny paid one of two interest payments due today after two grace periods expired. still b, we're seeing shares of dilla dillard's up 14% nordstrom up discounters, off price players, they're big, too big lots store, those have been among the names that have been open tjx stores those have not been open the digital platform also closed and that name reports next week, but tjx shares higher by 5% along with big lots today and at the higher end, canada goose tapestry, capri holdings, those are lower as well as vf corp back over to you >> charlie, is retail one of the sec r tors where the changes of f the last couple of months might last forever >> yeah, thanks. there are three categories we talk about all the time. companies that are doing as well or better. there are companies that have temporary problems that are

going to come back fine then there are companies that are going to be challenged and most of those were already challenged we think airlines and retailers are the big ones that you've got to be very careful here. these companies weren't doing great before this happened, unfortunately many smaller retailers, boutiques, the upper west side of new york has had a lot of retailers before this close that just may never come back >> mike, a lot of trading focused in on the university of michigan's sentiment numbers for consumer confidence, which came out a lot better than feared obviously still way down but do you see that as more of f a forward looking indicator versus the retail sales which were ugly for the month of april? does that help build a case with pent up demand when consumer continue to come back? >> i think it's at least a coincident indicator certainly, april data doesn't have a lot of information just

because we know what we were led to expect and the numbers are off the charts bad i think it also though this shock happened too quickly for public sentiment to go completely the other direction and turn a 180 and really kind of give up the idea that we were in a strong economy. we have to keep a strong eye on what the university of michigan trend is going to be in subsequent months, but yeah, there's this sense out there that the world is on hold. we just don't know if it's completely altered or going to go on like this for some time. by the way, these one day moves in these beat up retailers tell you that, too. it's almost lottery ticket stuff. it's binary. the stocks, the really pressured ones, are just this kind of equity stuff below a lot of debt it's sensitive to small changes in your outlook for restarting the economy. >> we'll get more on that next week with earnings like walmart. viacom cvs has been overcoming

julia? >> shares are are pretty much flat today but down nearly 60% year to date that's more than double the percentage declines of some of the other media giants including disney that decline also erases more than cvss entire market value before the two companies merged. while the first quarter earnings beat expectations, its total advertising fell 15% and googen heim says it will drop 19% in part due to exposure to live sports but 44% of analysts now have a buy rating on the stock in part because of optimism around pluto digital streaming service as well as some of its other digital revenue streams. guys, back to you. >> this has been one of your favorite stocks happened >> this is a classic example of

people extrapolate iing the curn environment into the future. we have the ncaa tournament cancel the masters get canceled cbsviacom has huge exposure to the nfl. this has been a terrible period of time but none of those things are going away permanently and the stock is trading about four times earning. the earnings they came out with were excellent the stock was up 2% on the two days afterward. we think trading is just crazy cheap. we had a value conference with mario, bill miller, staley and john rodgers and the one thing that all of us agree on is that some of the traditional media names are just way, way too cheap here >> which other ones? >> well, we think that actually even meredith, the owners of "people" magazine of the series of local tv stations that political advertising is not dead and meredith is is again way i, way, way too cheap.

and some of the advertising agencies, we believe that traditional advertising is going away sure, people are cutting back now, but that advertising spending is going to come become on the other side of this. >> meantime, the tech sector is is trading low but some on wall street are becoming more bullish. morgan stanley saying it's got growing confidence that apple will continue to expand iphone's reach after the data points to gaining share in every major region during the first quarter. the firm also positive on microsoft saying the it is poised to emerge as a leader in cybersecurity. of course already benefitting from big shifts to the cloud and mike, microsoft in particular stands out as a recent winner. apple's held up well as well and the question for them is as much bt about market sentiment and rotation as it is the fundamentals for these stocks. >> calls like that are ratifying

for these dominant tech leaders. not sure you have u to worry about how they're going to make next quarter it's much more about hiding in these massive blue chips and it's going to work probably until it doesn't even these switchbacks haven't lasted for long. >> we've got about a minute left of the session we are higher on all three of the major indices. gaining as we approach the close in fact and not far from the session highs. the dow's up 60 or 70 points or 0.3% s&p up a little bit more than that 0.4% nasdaq up 0.8% russell outperforming. up 1.5%. you can pretty much reverse that though for the week as a whole the russell is down 5.5% compared to the s&p's 2.3% decline. for today, we've got the likes of utilities and real estate and financials at the bottom in terms of sector performance. communication services and consumer discretionary at the top. oil prices have had a nice run this week.

they're up 19% for the weeking . the dollar is flat today and truonger on the week as we hear the bell going at the end of a pretty crazy session and week, we've got the s&p 500 up 0.4%. dow up 0.3 and nasdaq up 0.8%. >> strong way to finish up a tough week for the bull us welcome back, everyone take a look at how we finished up u on a friday the doe closed higher e 60 points well off session lows. we were down 271 points near the open and had a recovery throughout the day ticked higher into the close as for the s&p 500, also ending positively up about .4% a lot of the consumer names led the charge today higher consumer services communication services consumer discretionary, staples

all were higher. energy also helped and that is oil prices trading near six week highs. that was a bullish factor. the nasdaq ending .8% higher as technology continues to dominate and some of those dominant tech stocks have been hideouts for investors on the week. nasdaq down only 1% while the s&p is down two and a quarter percent. it was a rebound kind of day after a big lag over the week. coming this hour, we're going to ask t.j. rodgers b about how increasing tensions between the u.s. and china could impact the chip makers with new rules against huawei today from the administration joining us to talk about the market, charlie is still with us and russ joins the conversation by phone russ, welcome. first, to you mike on how the market managed to shake off

renewed u.s. china trade tensions and more very bad economic data. what did that tell you >> clearly traders have declined pretty decent excuses to have a broad and deep pullback. semiconductors down on the news. apple was down at least 1% on the day before firming up at the close. the rest of the market didn't really go down with it it did kind of gain some traction again, it hasn't been able to generate even a three-day losing streak since march what that suggests any way is that when you get these pulls, large investors, there's a lot of liquidation that happened in march, don't feel exposed enough to stocks and they've added to it perhaps it's the inference right now, but it's in the context really what's developing into a long sideways range. we got to these levels and we've mostly chopped around from there. so hard to see how it's going to resolve, but for the moment, it's able to hover in there

despite the lack of immediate fundamental support. zpl despite finishing the week lower, the s&p close d off the lows in march. a number of high profile investors have weighed in on whether the market is fairly valued on cnbc this week >> 99 was more overvalueded. 2000 but yeah, i would say it's one of the most overvalued markets maybe the educational backgrosen >> when you're ready to buy something now in this environment you're probably going to have to wait awhile because sellers have adjusted to the likely declicline of what ty own. >> might be extended due to the fact we have a chasm of bad news here but i don't find it as dramatically overralled. >> depending upon how long this lasts. if a year from now we're still in the same situation, it will be calleded a second depression. >> look, there's so muchdoom and gloom and if this thing is not going to last forever. there's still loads of value in the market >> 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, it's hard to create a valuation for businesses >> kyle bass also weighed in last hour. he's cautiously optimistic russ, where do you stand are you topping up your equity exposure or cutting back >> we're trimming a bit. i don't think we're on the cusp of going back. we think the economy is going to firm in back half of year m we think that a lot of the companies that had dominated over the last ten years in the long-term this crisis may provide a tail wind but but absolutely, the market has run 30% off the bottom you have unprecedented uncertainty about the shape of the recovery about the way the world is is going the look when this is all over so we've been cutting back and have been effort sizing three things in addition to trimming, we've been focusing the portfolio on quality.

we've been putting carry into the portfolioand we've been us ing elevated selling it as a way to get additional income in ttoe portfolio. so what we're preparing for is a few months maybe longer where the market is range bound and a lot of f what you want to do is protect on downside and generate income >> just want to hit some headlines crossing the wire that come from the federal reserve. they just released a financial b stability report just kind of looking at the state of the market. and some headlines here. the fed is warning and this goes along with the cautious tone we heard from jay powell earlier this week. fed warning that covid-19 outbreak quote poses severe veer risks to businesses of all sizes and millions of households warren said the banking sector may experience strains as a result of economic and financial shock. warns that house hols, strains on household and business balance sheets are likely created fragilities that last for some time. they go on to warn, to talk b about how credit spreads are relatively low

they talk about asset prices and the fact, mike, that asset markets may be vulnerable here to the pandemic. and the shock. is that something we've heard and they sort of do these periodic assessments of the markets, but clearly, there's a lot of risk out there. jay powell made it clear he's worried. he can do more and he's pushing on fiscal policymakers to do more as well >> yeah, for sure. on some level, it reads as a standard force clause. like if in fact things get a lot worse from an already bad situation, we're not priced for it in terms of asset markets and yes, it does kind of set the scene for the fed having the posture of risk management and of looking to help if in fact there's these hazards present themselves along the way so i don't think it's really new to a market that's already seep you know all of these kind of consumer levered stocked get cut in half and credit spreads, yes, they're better than they were in

march but they're still elevated versus what they were going back to last year so it's not as if the market has gone to sleep on these concerns entirely >> charlie, where do you stand on had a terrible week >> sorry, say that gagain. >> where do you stand on banks, which have had a terrible week >> this is another area like retailing which i'm not really piling into here i think it's very tough to make money with this kind of yield curve. i think we're going to have more defaults frankly, the banking business isn't a business where people have a lot of sustainable competitive advantages, so we would not be cutting the table on the banks with some exceptions goldman sachs trading at 75% of book lazard we think is very, very cheap. there are exceptions, but the right down the middle of the bank, no >> i'll just hit one more of those federal reserve headlines from the financial stability report the fed says asset prices are subject to significant declines if the pandemic worsens.

is the market right now u bet ing pandemic is not going to worsen >> yes i think the market right now is discounting recovery we can all take if it's a v, it's certainly not a v if it's a w, a swoosh, an l, but they're definitely betting on a recovery if you were to see situation where states are forced to impose you're not going to get the second half recovery the market is going to trade lower on that. the good news though is that the market isn't expecting a v shape. you see that in what's leading if the market thaukt we wouthou we would come surging out of this the fact secular growth is still leading tells you the market does expect recovery, but a very uneven recovery. >> got it. charlie, thank you both for weighing in. >> thanks for having us. >> thank you chip stocks in the broader market taking a hit today after

the trump administration moved to block shipments of semiconductors to huawei once again ramping up tensions with china joining us now, t.j. rodgers what's the impact for u.s. semiconductors that the administration made today? >> well. >> they're going to lose a customer in huawei for sure to anybody who's exposed there, this is going to change things huawei, we have cut off. we won't buy their stuff, but huawei is making their own chips now from another route they have an internal semiconductor company called high silicon then they go to tsmc to make it and what happened today is that path which was all offshore got cut off.

they said if you make chips anywhere in the world or if you use american software on the chips or if you design the chips with american software, all of which are the only way to do it because that in effect is the infrastructure semiconductors, then you can't ship to huawei and we'll make your life miserable if you try it's death con five. it's real. >> do you think huawei steals american ip? do you agree with that assessment >> i don't know. but i do know some things and you can make a conclusion based on that. one is a company which is 11% owned by a single man. the other 99% are owned by a union. which gives phantom stock to the other 99% to the employees so we're led to believe it's an employee owned company

that of course is dubious. it hasn't reported so it doesn't have the scrutiny public companies face all the time and the question is do you want to take a economy like that, in a place like china you cause u the data streams of your major corporation to run through their equipment and my personal opinion is no, you don't want to do that. we should cut them off >> contract chipmaker who announced late yesterday they're going to be opening a new u.s. plant. what's the significance of f that >> well, behind the scenes is becoming successful. they are challenging intel successfully making the very highest end smallest geometry chips and my guess is if you don't wayou know word to them is

if you don't want trouble, you need to start making some in the u.s. so they're putting a factory in the u.s that's kind of like what the chinese in this case, it's taiwan they came from ti. they were big guys at ti and thought they could go do better in taiwan and have done a gate job. but again, it's a reflection of the american technology of semiconductors moore's law and the infrastructure we've created creating offshore wealth and in this case, they're a friendly company and we said hey, look, we want you to manufacture here. just like car companies have to manufacture where they sell their cars, it's not unreasonable >> i'm confused as to what your conclusion is describing the move at death con five at the start of this interview as if the pain is just going to be indescribable for u.s. corporations that would be selling to huawei.

at the same time, saying that we need to cut ourselves off from huawei so you support this move or not >> for a free trader, i am that and i may be a trader to the flosty of free trade, i support it i don't think it's going to be a devastating move for american companies. when i say death con five, i mean huawei is going to hurt they don't have, what they have done is they've made cell phones and they make something like $60 billion a year cell phones they make 56 million in q4 cell phones apple made 72 so they're big and it matters and it's billions of dollars and what's happened is they're using a lot of american technology, not just cell phone technology on the chip sectors because of the cell phone, but american technology to make machines that make the way for american technology, the design chips that are so complex that one chip today equals all the

electronics that existed in world war the 2-so they're using a lot of our technology and they have been declared by the government so they're getting cut off from that technology now whoever sells to huawei is going to lose a customer but qulong they're going to lose a customer if you think b about it, if huawei buys chips from somebody else, then an american company will lose the chip on the other hand, if they can't by their chips from anybody else because nobody else can make them, then the american companies will have to buy, will have to sell extra chips to make up for the shortfall that's going to huawei that is some other cell phone maker apple or somebody else will make those phones, other than huawei. i don't think it's a zdisaster for american firms

>> great to see you. thanks for joining us. up next, financials have been drastically underperforming the broader market a pair of top stragitests debate whether now is the time to bet on the banks when we return. ♪ ♪ ♪ ♪ ♪ ♪

- [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. the broader market in recent months, but strengthened the past few days. investors asking if now is the time to jump in. good afternoon to you both tom, i'll start with you

why first of all do you think they've been so weak in the last month or two >> well banks are going to get caught up in a second wave of this global depression because they are either lenders or direct asset openers people lose their jobs and shut down anyone who's -- going to have a hard time making payments. so i think banks are caught there. more recently, we've had talk about the potential for negative rates imply iing some of the futures markets and of course that terrifies investors who really view bank products as spread products. >> so tom, given the pain they've suffered, they're 33% or so off the highs would you buy? i know you're bullish on the mark market >> we think you've got to barbell yourself now own some high quality, sector growth names like faang or tech

or the cloud but we want to run into the epicenter of this crisis this is what worked in b october of 2008 so even if we were five months from markets bottoming, still made money on oan absolut basis buying things that are really the bull's eye of this crisis so i think high quality financials make a lot of sense and some high quality leisure you are and travel mnames. >> bob, do you agree or you think there's more bad news to come for bank share prices >> i agree tom's comments about the longer term. i think it's a matter of time ing from where i sit a month ago, we got first quarter bank earnings. they were far worse than people thought. credit provisioning has not yet ended. that will be a great signal for me these are among my favorite cyclicals but i'm not prepared to go there while there's concern about when credit provisioning is going to peak and i think that's what has investors spooked.

before i came on the set, i looked at the six big banks. they're all down today some down 2 and 3% and their year to date performance has been horrible. so i don't think the market's ready to go there. it will because of the cheapness of the sector. their balance sheets are in much better shape than they've been credit provisioning is the issue i'm really watching. >> bob makes a point there, tom, as far as westill don't know the full extent of the damage. how do you feel confident buying the banks with the still big unknown? >> those are really important factors and i think your comments were spot on. but we have to keep in mind is in the 2008 crisis, because of what was happening with that recession, banks were subject to increased and much more burdensome regulations

what we're seeing in this you know, in this crisis, is the willingness of regulators to ease some of these restrictions and capital rules and so banks are sort of set up to make a lot more money when the cycle turns so i think the opposite is happening, which is a lightening of regulations and that has a positive effect. >> all right gentlemen, we'll leave it there. we'll have you both on soon. tom lee, bob doll, thank you, both we're getting news on google parent company alphabet an the department of justice antitrust division >> that's right. shares of alphabet dropped sharply. they've now recovered a little bit. down 2% in the afterhours. this comes from headlines from the dow jones that says the justice department and state attorneys journey are likely to bring sources against google they're focused on google's advertising business and how

it's used its dominance in search it also says it's looking at a probably sum l eer timetable states could file in the fall and the antitrust enforcers are in preparation for litigation. we know regulators were looking into alphabet on these antitrust concerns but we did previously have a timetable didn't know how far along they were, but this report saying it could be coming soon we've reached out and we'll let you know when we hear back >> well and not only that, wasn't it sort of assumed or at least the bulls on these stocks were assuming that we're in the middle of a global pandemic, massive recession, everybody's work is disrupted and a lot of these tech companies are being relied on as part of the solution with contact tracing and other things for those that we're assuming maybe this would be put on the back burner until after the election, this might come as a big surprise >> yeah, i think you're right and that's why we saw the sharp sell off in the afterhours

google and the other big tech companies have really showed how useful, how essential they are in daily life and work from home life and even contact tracing so potentially for the health authorities that a lot of these concerns were put on the back burner and this is really a reminder that they are far from over we've heard rumblings especiall when it comes to amazon and workplace safety bwith google especially, there' this thought it's proved so useful and critical during the pandemic that perhaps antitrust concerns would be delay ed but this report from dow jones saying it could come as early as this summer. >> i see here they're looking into how it's used, how they've used their dominance in search, which is similar to what the european antitrust authorities has fined google for it result ed in fines. not sure we know what the results of this lawsuit could be whether it could have more heft here in the u.s.

>> well, i'd say over the last few months especially at the start of this year, we did hear from some of the smaller rivals talk b about how google and big tech at large pointed out apple as well have once were partners and now coming to eat their lunch. so there has been a lot of talk from them. they've been willing to come out, yelps in particular as well as the smaller rivals so i think that this is all coming to if it comes to fruition now, they have a lot of arguments to go on. this already has been well in place before the pandemic. >> well, yeah, and also the europeans had a similar. thank you. hackers who breached a prominent law firm are threatening to release quote dirty laundry on president trump and other celebrities. coming up, we're going to ask a prominent cybersecurity expert what steps corporate america must take to ensure hackers

don't get access to this sensitive data it's quite a story especially as more people are working from home and you can always watch or listen us to live on the go on the cnbc app we'll be right back. save hundreds on your wireless bill

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stocks managed to close higher today but u still cap pe off the worst week since march back to mike taking a look at value dispersion mike, what are you looking at? >> doesn't have his mike, but if we had chart, it would probably be all we need we'll get mike back in a moment. there's the chart. i think it tells the whole story. don't you? >> large cap tech stocks versus small stocksme >> he's back mike, break it down for us >> i'm right here. sorry b about that my fault there no basically, that chart shows you unpredictable over small caps,

nasdaq 100 and the small caps at an extreme discount going back to 2000 not as extreme as the other front along. credit worthy companies are much more in demand in the stock market than less credit worthy ones and it falls exactly along with e credit rating if you look at aaa down to b, it's linear in terms of the year to date performance in those stock prices i think the big question is do you bet on a continuation of this trend or is this a ripe environment to try to say that it's gone far enough and if this economy recovers at all, it's going to be the lower quality stuff that has a lot of catch up to do, guys. >> really interesting. >> worth the wait. the head of the us effort to develop a krocoronavirus vaccin says hurricanes of millions of doses could be delivered by the end of the year. up next, we'll ask dr. gottlieb whether he thinks that's a realistic timeline or not. derek, seems like your team is operating just fine remotely.

yeah, everything is running smoothly with the now platform. (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you.

today at the white house, the head of the operation warp speed seemed optimistic b about a vaccine by year end. take a listen. >> i have very recently seen early data from a clinical trial with a coronavirus vaccine and these data made me feel even more confident that we will be able to deliver a few hundred million doses of vaccine by the end of 2020. >> joining us now, dr. gottlieb, serves on boards of pfizer that sounded very optimistic to me a few hundred million doses by the end of this year is that where your expectations a are? >> well i think our expectations should be that we're going to have multiple candidates heading into the fall clearing a phase one, phase two safety trials ready for phase three trials

and we'll probably have million of doses available for those clinical trials and maybe low tens of millions of doses if in fact you have multiple manufacturers, but i think having more than ten million or so doses between several manufacturers is aggressive, but i think we're going to have enough vaccine that we can run large scale trials and in the event of outbreaks in cities, use those vaccines both therapeutically and experimen l experimentally where we deploy them into those cities but also collect information on whif the vaccines are working in a clustered randomization where you would randomize people in a city to get the vaccine at different intervals and determine whether it's working and safe >> do you support early confident statements like that based on glimpsing i think is where those early data on something like this. i guess we got that with hydroxychloroquine and that now

seems like it was false confidence maybe the opposite was true with remdesivir but should we be making public comments of confidence like that when we haven't got all the data yet? >> well we've seen data from a number of vaccines now that we know that these vaccine candidates, at least the ones we've seen, are generating an antibody response. we need to make sure that they're safe we need to make sure that response is durable and a lot of the complexity is going to be scaling up the manufacturing in time to have those doses available. it's aggressive to have hurricanes of millions available before the end of the year because that's a difficult task and also with a lot of uncert n uncertainty. you don't know the yield you'll get. in 2009 with the h1n1 swine flu pandemic, we got delayed about two months in developing a vaccine because when we tried to manufacture that vaccine, the yield was much lower than we expected so scaling up the manufacture iing was more complx

now i've worked with them for a number of years. i used to be a member of the product investment board i have a lot of confidence in him and his able tilities and assessments. i just think going into the fall our base eck peckation should be that we're going to have a will the of vaccine b available to do large scale phase three studies to turn over the data card on which vaccines are working and which work the best and whether or not they're safe. the bar for safety here is going to be very high because these vaccines are going to be used to mass inoculate populations >> wanted to get you to unpack another troubling news development of the week and this is the increasing spread of the serious inflammatory condition syndrome in children related to covid-19 what do we know about this point and why did it take so long to discover why is is it happening so late here >> so cdc came out with a health alert late yesterday associating this condition with covid-19 for

the first time based on data show iing that the people who are getting this, the pediatric patients who are getting this, either have accurate infection or antibodies to covid-19 which indicates that they have recovered from the virus, but at some point were actively infected. this was first really recognized in late april in the united kingdom and now we've seen a lot of cases here in the united states and new york city in particular in outbreak settings. there was a recent report in lan set that identified a cluster of infection in a town in italy so this has been something that's been emerging just recently most ly in europe and the unite states interesting interestingly, we didn't see it in asia. that's either because it's not getting reported there or maybe the infection didn't strike as many children in asia so there weren't as many at risk children or there might have been other reasons it wasn't affecting children in this way, but it wasn't something we observe d in the data we got out of china it wasn't until the virus got into europe that we started to

observe these cases. >> dr. gottlieb, the new york stock exchange outlined plan this week to reopen in coming weeks and suggested that focus on testing returning workers would be on temperature checks as opposed to full covid-19 checks is a temperature test sufficient provided the workers are happy with it and sign various forms >> they're doing more than temperature checks they're doing questionnaires and providing for testing. i really think it depends on the work environment i think in work environments where you have employees that can't socially isolate add work. so you have at risk work settings so think of a shop floor where people are working chosely together in a manufacturing facility that might be a facility where you want to make testing available and do routine testing for the virus, but when you're b working in an environment where people can socially isolate at work, they can work in stations where they're not on top of each

other, where you're dedense fiing the workplace so not emp's coming back, the risk is different so i think different businesses are going to make different decisions about testing but i think there's going to be a lot of testing available for going into the fall the platforms are going to be widespread any bottleneck to getting testing out to people is going to be the front end. collecting the samples where do you ugo to get tested is it b available at work? but the mechanics, the platforms for rupping the tests, which has been in short supply now, i think we're going to have many more in the market by the fall >> well already we're seeing the number of testing, tests go up in the states that have reopened and that's a good sign i think the positivity rates are coming down. but what have you seen in terms of hospitalizations and deaths is there anything conclusive to draw out of whether these to answer the question of whether these states opened too early and did it in the right way? >> so the national trends are encouraging in terms of seeing

sustained reductions in new cases even against a backdrop of increased ed testing and the positivity rates are going down. 31 states are below 10% of positivity rate. we're seeing hospitalizations trend down even when you exclude the new york region. it's now leading us out and comprised of such a big portion of the overall cases but there are states still going up. you look at arkansas, arizona, mississippi, some of the early reopen state, you are seeing an uptick in cases. now it's hard to disearn a trend there so it's still early and many of these states don't report hospitalizations so you can't look at that and also the hospitalization day a ta is a lagging indicator. time to hospitalization is about eight days so you're not going to know whether you're impacting hospitalizations until about two weeks after you start reopening and having people engage in mor activity it's not only when they reopen, but how and it's

important in the stage fashion where they can introduce activity then start to look at these trends to make sure that they're not measure iing an increase in the number of cases. >> we need an hour with you. but until next week, dr. gottlieb, thank you very much. >> thanks a lot. up next, we will speak with a pair of former amazon employees who claimed they were fired for speaking out about coronavirus safetyontis cdionat the company's warehouses that's next on closing bell. this is decision tech. find a stock based on your interests

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found and run by david tepper, they've trimmed positions in alibaba, also alphabet, amazon and facebook. some of the notable ones there however, they took new stakes in microsoft, netflix, twitter and tesla along with a new position in wells fargo one of the biggest especially owners of wells fargo is berkshire hathaway among the note bable moves here, no real change to wells fargo, however they did trim their position modest ly in jpmorgan and reducd their stake in goldman sachs by 84%. they've trimmed their stake in goldman sachs and pnc financial by b about 6%. we're going to continue to comb through these numbers but some interesting themes between david and warren buffett back to you. >> dom, clear ly david's underwater if he's only been buying back in march wells fargo one of the few

stocks below its march lows as we stand today but warren buffett if he was trimming a couple of the banks, wells fargo as of the end of march wasn't one of them >> was not one of them however the big notable one like i said is the goldman sachs position an 84% reduction in goldman sachs and about a 3% trim in jpmorgan so some portfolio move there is but u the largest one that catches the eye for sure is the goldman sachs position being trimmed. the pnc one is interesting but not nearly as large as others in the portfolio, but the gold one was the one that caught people's eye. >> the only thing to mention is the timing of the selling. we don't know the average price but goldman is one of the banks that's rallied the most since the march lows and stands as a factor of the big six, the best year to date performance so interesting that's the one he decided to esell >> here's the interesting part these are balance sheet snapshot

views as of march 31st there's no telling whether some of these managers, whether warren buffett may be is not one of them, but there could be trading around positions there could have been trading or buying or selling since march 13 ist that won't be reflected until the next round of quarterly findings come out. so just like the earnings season hasn't been clear with regard to this particular covid-19 pandemic, a lot of these positions are fairly obsolete at some stages for some of these fund managers because of what's happened since march 31st. >> like the economic data. dom, thanks. dom chu. up next, amazon under fire the e commerce giant coming under scrutiny amid the pandemic with former employees claiming they were fired for speaking out about coronavirus safety 'll lkions weta to two of those former employees right after this break this is decision tech.

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alphabet sinking sharply on

a journal that the states attorneys general are likely to brink an antitrust lawsuit it's down 2% john friedman joins us now on the b cnbc news line john, you've been going through this article what's your take, your level of surprise at the timing and the come peanut parts? >> so yeah, it is interesting because google relative to facebook, right, always seemeded kind of to me the more and to others, the more less under fire, less scrutinized and one of the reasons for that is because they have an outstanding lobbying effort here in d.c. and you know they're sort of known r for it, right? but in this administration, that may actually play against them in a way right? because they've engrashuated themselves to the establishment. i don't know but it seems to me this is as much, this has political aspects to it and you know i wouldn't buy into it too much it's a risk.

definitely risk. but i wouldn't buy into it too much until after the election. >> why i mean just the fact that they said that it's coming was a surprise we didn't even know they were still working on this. >> yeah, no they were definitely working on that. and how can i put this the establishment, there's a side of the establishment d.c., not just republicans, but there are also some democrats who really you know do view google as sort of evil and very threatening and you know the same kind of things we're talking about with microsoft in the '90s you know there's a constant, constant drum beat that you know for looking into google and scrutinizing the business practices, but to me, it does not look like they have

you know, it's okay to be a monopoly, right? as long as you can't exploit it unfairly and i know you have that pattern of behavior. >> john, to your first point, are you suggestingthat there's no chance anything comes of this before the lech and if so, what's the worst outcome in the election for google and for this case >> well, let's say they go forward and go to penalty phase before the election. right? that's possible. google would just appeal, right, so whatever outcome there is, that outcome will take place after the election right. it will probably take place two years from now if it's a serious and consistent doj effort but i wouldn't be surprised if for example, if joe biden won, i don't think that joe biden doj is going to pursue goggle as

aggressively i think they'll probably be busy pursuing other perhaps retaliatory programs, but i just don't think that's going to be their emphasis >> all right, john, thanks for jumpingright, john, thanks for jumping on the line. we'll see where this goes. >> up next, tackling cybersecurity concerns at a top law firm, the latest victim of the hack attack and the stakes ateohigh wh cs can protect their companies from the same fate right after the break. ♪

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lawyer allen grubman who represents bruce springsteen and lady gaga has been the victim of

a ransomware attack. they're threatening to release key confidential information if that ransom isn't paid, and putting documents on shared drives what can business leaders do to protect themselves from the same fate. a cybersecurity firm that specializes in monitoring the dark web thank you very much for joining us how surprised are you to hear of this type of hack for such a high-profile law firm. is it even forgivable for a law firm to be hacked in this way. should they not have the most secure servers of anyone >> i'm not surprised at all. unfortunately, covid-19 has been a golden opportunity for bad guys criminals seize on elevated levels of anxiety and fear and whenever we have disruption in our professional and personal settings and in this case, you have fewer defenders out there and fewer security professionals that are not able to work and perhaps working from home with

reduced access and productivity, they might be sick you've got a lot of folks teleworking from home and so unfortunately, the environment for cyber attacks and other types of schemes has been very conducive to these cyber criminals, and i cannot fault this law firm and we've seen fortune 500 companies that are suffering similar types of attacks. >> so what do we know? a spokesman for the law firm confirms that 750 gigabytes of documents have been compromised in what appears to be a hacking group revil. the firm has deleted the group's backups and they're demanding a ransom, which they're not doing. how common is this >> i don't have insight into this incident, but what we've seen in the past is very, very

sophisticated cyber criminal organizations that operate almost always outside of the u.s. and what they do is they're able to hack into a company's network and they do reconnaissance to understand what kind of value can they get out of this particular target. so in this particular instance i would imagine they managed to get access into the law firm's network, and after some reconnaissance they figured out that this is a gold mine for them because there's a tremendous amount of sensitive data belonging to high-profile clients that they can steal and they can then shake this law firm into paying a rhigh ransom. when you think about ransomware, they used to be quite different. they want encrypt the network and demand ransom. the companies got smarter and they've developed quite robust disaster recoveries and practices so when their network environment is locked up they are able to recover using backups. the problem is that the bad guys

innovated and adapted and instead of attempting to lock up the environment they're extracking as much data as they can into paying a high ransom and this is quite common and unfortunately, it's happening more and more. >> eli, are these hackers stateless or in order to operate in the way that they do, will it mean that some governments somewhere in the world are allowing them to operate out of their country whether they admit it or not? >> there's no question that some countries are turning a blind eye to these kinds of activities in some cases there's a direct effort to go after targets in the u.s. and other countries been in other cases there may not be direct effort, but they're turning a blind eye and they're giving them the leeway to do that because they gain some leverage and some insights and intelligence out of these kinds of operations and it is hard to say in this case, but again, there is often a direct or an indirect link between some

of these actors and the the countries in which they live >> does it tell you anything that they've threatened to reveal dirty laundry on president trump if they don't get what they want even though that the law firm confirmed that he was never a client nor were any members of his families a client. >> well, it makes for great publicity and we are here because of that. so we've seen this before where the bad guys will make a claim that is designed to get a lot of publicity and gets a let of pr, and that creates more pressure on the target and the victim to perhaps negotiate or to give in to some of the demands and it's a common tactic and we've seen it time and again. again, it's hard to say what they actually recovered from this particular victim, but i wouldn't be surprised as this situation drags on they'll be releasing some information and they'll be releasing more bomb shells, if you will, to put additional pressure on this particular company to negotiate with them. >> it's the worst nightmare for a lot of these executives.

eli, thank you for joining us. >> thank you for having me stay safe. >> on this wild story. >> we will hear from several retailers reporting earnings next week. walmart, home depot, kohl's, urban outfitters, target, lowe's, l brands and more all set to report their quarterly results. wilfred and mike santoli, trying to figure out the state of the u.s. consumer with terns of millions of americans unemployed, but states reopening and consumers potentially more hopeful and more optimistic than we thought with that better sentiment number, and i keep pointing that out, mike, because it's the survey and the sentiment readings which will point us in the direction and not the april sales, retail sales numbers which were so bad, but also were so backward looking. right. obviously that sentiment reading was taken when you did have income support programs. i do think it's an early read and it's certainly not something to be ignored. it's at the margin, hopeful.

i do think you will have a tremendous amount of emfas oits first two weeks of may and it will not be about last quarter's results as much as what's the trajectory from here it's actually become a joke on wall street with people looking at these incremental weekly increases in airlines and retail off of an extremely low base and it is down 90% year over year to down 07 a70 and that's the gaugt this point for lack of anything else to look at. >> we know of during the week that a little recovery today and ended lower 2.3% on the s&p 500. the dollar also strengthening somewhat stealthily this weekend and oil having a phenomenal week up 20% >> right maybe with the exception of the there are pulling themselves into kind of a neutral indecisive state, i would say. i think the stock market is very neutral right here it is not overbought or oversold sentiment is mixed and it's in a

range and people are mixing hope and a little bit of caution about what the outlook looks like so i think that's unsatisfily the spot we go into the weekend. >> we are out of time, from mike, sara and me. thank you very much for watching have a great weekend melissa lee has you covered next fast money starts right now. i'm melissa lee and tonight's trader lineup, guy adami, tim seymour, and jim mills coming up next, the ramp to reopen. >> what the [ bleep ] is going on when did this become flatten the curve, flatten the curve, flatten the curve to we have to fiend a cure or everyone's going to die >> that video getting a lot of attention, dave portnoy will join us and why he wants to punch boeing in the face and we begin with the smackdown on the china crackdown and chip stocks getting rocked as the u.s. takes a new aim at