for the w.h.o. and revealing, he's been taking hydroxychloroquine the reaction from dr. scott gottlieb it is tuesday, may 19, 2020. "squawk box" begins right now. good morning welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. as joe mentioned, we are seeing a slight give back dow indicated down 84 points yesterday, the dow up by 911 points you saw the s&p up by about 90 points a gain of 3.1%. the nasdaq up 220 points for a gain of 2.4% all of this after the news we heard from moderna we'll talk about that and the success they are having for the early trials for phase one

also jay powell making comments that added to some of this those who have been under such pressure, those stocks were the ones that were the biggest rebounders disney up more than 7% banks were up across the board wells fargo up by 8% bank of america and citigroup up jp morgan up mgm resorts up 10.5% carnival up 15%. airlines each up 13% all of those gains coming as there is hope there will be some time those stocks can get become to normal and people will feel comfortable. that's the early trade also let's look at what's been happening -- >> i thought theme parks disney and comcast which is over $2 pretty big gain.

who knows whether it is displaced but it was on hopes of normalcy >> i don't think it is only moderna we are talking about there is four or five real pharmaceutical companies working on it. so just the potential you get and other data point where they say someone else has the success to we don't know what technique i don't know if it is mrna pfizer is working on the mrna technique as well. i don't know you could just see wow, maybe someone does go to a theme park >> then you have johnson and johnson pouring in over a billion dollars to go after this how quickly the mentality would change if there was a vaccine available. >> it could quickly change the other way too. we are going to talk to gottlieb, even neutralizing

antibodies sounds good. does it give you immunity? >> what does it give you immunity for you are right. >> we'll ask, these are all baby steps. >> the other piece of it is the time line. i don't think anyone is expecting this to be at scale until sometime in 2021, really so there is a question about the market >> there may not be a billion doses but you could have a fair amount before the end of the year >> i said baby steps do we know whether bill murray was on he called it as himself, not as an assistant greens keeper >> he sent a question in to warren buffett too we took and

asked. he's out there thoughtful and working around the edges. >> with working man's questions. he's from working class chicago. and i'm from working class cincinnati is there a working class scars dale >> i don't know, do the working class drive porsches >> they do if they make it you got to work hard looking at the dow reporting irnings coming in at $2.08 versus $2.27 home depot also suspended outlook due to uncertainty to the 2020 outlook

what was the estimate for same-store sales in the u.s. >> the street estimate was like 4 or 4.5 they did 7.5 domestic sales numbers were quite good for home depot. they commented that the end of q1 and early q2 was also strong. >> the outlook being suspended, not a surprise for you how do you see the outlook and the stock as you can see down 3.5% on this >> we've seen company after company doing this it is a smart move for home depot doing that saying, look, i think home depot is benefitting or capitalizing well through this crisis and is likely to perform well as the

crisis head winds abate. more people are spending more time in their homes. you are seeing that increase spend as people spend more time and working on their houses. >> where was the short fall? they are trying to do things for employees. expanded benefits and $1.50. 60 cent share investment would that cause you to the results? the dow is responding. we are now down triple digits and then some on the dow >> i don't think so. as the dust clears they called out $850 million in extra expenses right thing to do. we didn't know that number conceptually, we knew that cap that in it self-would not make

it the headline itself, i would add that 60 cents back in to 2.68. not apples to apples but better than the street forecast >> what can you tell us about lowes? similar expectations they are pretty similar. it is kind of a macro effect on both of the chains, right? >> i think so. over the last couple of weeks, i've spent a lot of time looking at home depot and lowes in the new york area. they are crowded what we typically see, typically home depot performs better in these type of situations if home depot is doing 7.5,

lowes is probably 5% >> it is kind of a sharp left side and less not quite as much of an incline but it is a v, kind of. >> i think so. home depot was more than 50% off of the bottom in march there has been a nice rebound in stock. that's the market realizing that home depot is performing well through this crisis. >> thank you we'll check back with you on lowes probably >> andrew. thank you. meantime, jp morgan chase set to hold its annual meeting this morning. the annual letter issued saying the bank is not only preparing for a safe reopening of the u.s. economy but laying foundation for recovery that unlocks opportunity for more

people providing $950 million in new loans. since the paycheck protection program began, it has funded a total of more than $30 billion to more than 250,000 businesses. i think that's a big key, andrew how the ppp is rolling out and how the big banks have been acting it is worth talking about those numbers. every time we hear from one of the big banks participating and getting the money out. >> as you know and we've talked about, a lot of the big banks strulked to get the money out in part because they wanted to but were limited in terms of how it was maybe originally biased towards the big banks and against the big banks and because some of them have huge market share in new york and elsewhere where so many clients

and customers were hit so hard >> the bottleneck is everywhere along with the sba or other places, it is hard to handout that amount of money there was also the administration irs is hiring 3,500 more telephone operators to try to deal with more calls americans saying, where is my money, it hasn't landed here yet. programs this big, there are going to be hiccups along the way. >> when we come back, dr. scott gottlieb weighing in and the statement that president trump is taking an unapproved drug as a preventative measure >> announcer: today's big number, 30%. that's how many stores jcpenney

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welcome back stocks surge after moderna's ceo report progress on its vaccine

candidate. joining us now is dr. scott gottlieb cnbc contributor and serves on the boards of illumina and pfizer we had spoken with you just before we spoke with the moderna ceo yesterday. this is the first time we get to ask you about your thoughts on what happened. the idea that there could be a vaccine candidate that works in early trials incredibly exciting we watched that play out with the market closed up more than 900 points on the end of the day. this was a small study phase one, eight out of eight people they said did develop the antibodies i wonder how you look at this as a doctor and head of the fda understanding what complications can come >> you are right it is a very early study

it is a positive development before this, we weren't sure these mrna con instructs would produce the con instruct they saw antibodies in 45 out of 45 patients. they only tested the first eight to determine whether they are neutralizing antibodies. we need to know the data on the other patients we are going to get that data hopefully soon they saw it in their highest dose in fevers so it seems like they are lowering the dose. 25 microgram dose. it doesn't look like they ar taking that forward. they are testing 100 microgram and now 50 microgram dose. it goes to speak to the fact that there is a lot of work ahead. they need to figure out the rights dose. they need do a phase two work before they get to the phase

three trial. i don't think they'll be able to pull forward they'll have a lot of work to do to figure out the right doses and make sure these are producing neutralizing antibodies >> how difficult or complicated is that figuring out if this gives you immunity and the question of how long that immunity might last? >> we are not going to know if it is giving you immunity until we look at the phase three program. we assume if a vaccine is producing the antibodies, it is producing some sort of immunity. it might not be absolute it might prevent you from getting very sick or getling covid the disease but you might get the infection. sort of like the flu shot. you can still get the flu but

typically less severe infection. in terms of the work this company has to do. they'll have a 2 a and 2 b study to figure out those right doses and also use a target population, the older population they'll have to look at older adults as well not clear when they would start that phase three, i think they said july. i think there is work to be done >> joe, i know you had questions too? >> i did doctor, this is a phase one trial. not that big these are interim results. is that normal to release positive early data from an interim phase one? and i'll ask you a follow up for that anything unusual about that? do you have a problem about that >> it was unusual they didn't

release the quantitative data. they released a lot of data on the bottom line tighter levels on what the antibody response was. this time, they didn't have that data available they may have waited on all the data on all the patients the nih has done a lot of work you would have thought that they would have waited until that data set was complete. we'll probably get that more complete data set soon we'll see those first eight patients maybe all 45 had been. you would assume that some compliment will. that's why people were reacting positively and looking at this as a positive development. >> becky asked how is your cash, are you going to need raise money?

they got a big bump in the stock and there was a public offering announced after the close. i don't thinks it for saling share holders. the timing, that's why i ask you whether it is typical to release the interim data immediately, people are caught on the outside of this looking at the gain of the market that they think is overvalued you are on the board of pfizer would pfizer release an interim study early and announce an offering after the close after their quote ran up >> bigger companies are in bigger positions they tend to be more conservative we've long known that. i think why people are enthusiastic it is early and speculative. we now have a number of data cards we've turned over and a

number of vaccines that suggest we'll get a vaccine to coronavirus that is possible to develop a vaccine against this virus. that is a reasonable statement to make. we should be able to make a vaccine against this virus the timing is questionable whether or not we can have it before the end of the year or wait until 2021 to have a product we could use more generally. >> one other question about the overall messenger rna therapy. years ago, this company came under a criticism for the black box and how things are working i hesitate to use the t word but there have been comparisons to the way that they were keeping a close lid on the research and whether they could actually prove it in clinical studies in the meantime, independent

researchers and bigger companies, would you say that they've proven a platform of a vaccine coming from messenger rna and we've put this to rest that this is something that might be done? >> i think it is a fair statement. there is hope that this can work there is a lot of companies working on these i think we val date these. it is interesting to make an observation if you look at the chinese vaccines that they are developing the similar vaccine to j&j the other three are activated viruss a very old approach. they are not taking the approach we are where we are using dna or rna vaccines

that may turn out good we may develop a more robust response or create more uncertainty. we don't know the answer to that question yet >> scott, i wanted to ask you. going back to the issue joe had raised around these stock sales but in a different light that the company ceo has a 10 b 5 program which means he's selling or often selling on a regular basis, preprograms but appears he's been selling down his stock the whole period. do you have concern of someone in this business during a pandemic like this and given the news and the constant news flow coming out of these companies, how do you think other ceos and health care companies should be thinking

about these during this personal period >> look, people make individual decisions. i can't second guess what individuals do with respect to stock sales and purchases. in an environment like this, i wouldn't be buying my company's stock or selling i'm a holder making purchases of pfizer's stock. as you know, i'm on the board. i wouldn't question buying or selling in this environment. people sell stock. it is not that unusual to see a ceo buying or selling stock, especially in the buy owe tech industry where a lot of their network is tied up in their stock. >> let's talk a little more about what we can expect, what we should expect or anticipate on a grander scale about when we might see a vaccine and where wir going to be this fall, if

things die down in the summer, if there is a resurgence in the fall, what kind of tools will we have at that point >> i think it hasn't changed remdesivir and the antibody based drugs will be available in the fall we'll have a very robust testing platform the question will be, will testing be accessible. we'll have a robust backbone for doing those tests. point of care based tests and swabable sticks where you can get tests quickly. we'll have more heading into the fall hope fulg hopefully more and more vaccines available. we'll use those if they have large outbreaks in the cities.

that will be hard to start a phase three program in the summer we are likely to have outbreaks in the fall or the city or whole states and want to deploy those into the outbreaks starting the phase three clinical program may be difficult because you don't know where to start own rolling >> scott, can you weigh in on the president saying he's taking hydroxychloroquine i assume his doctor had to prescribe it i have that some front line medical workers have taken hydroxychloroquine prophylactically is there a reason to think it is a preventative when the president says something like that, you have to offset whether it could help

someone with whether it is going to be used in a harm way where it could result in harm or death to someone taking it what do you think of what hole saga that played out yesterday >> you are right initially, a lot of doctors were taking it prophylactically, especially in europe and prescribing it for patients off label. i think they've pulled back. a lot of studies haven't been encouraging. there was the va study showing results that demonstrated treatment effect it doesn't work. there is a big european study where they took a look and allowed that study to go on where they knew it wasn't hurting people with respect to the president, my belief is that he's at very low risk of contracting covid.

they are testing everyone around himg i would hope the drug would provide a preventative value he made an independent decision with his physician about what to do, i just hope they are protecting him well that people potentially infected aren't coming into contact with him >> dr. gottlieb, i want to thank you for being with us. every morning, we wake up with so many questions. we appreciate being able to talk it through with you from the policy and medical perspectives. thank you for your time. >> thanks a lot. >> we'll see you soon. an update on the effort to reopen america, we'll show you what it was like for some auto workers returning to the factory for the rstifit me in months keep it here or is it?

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welcome back to "squawk box. an update now on reopening america. governors in texas, west

virginia and kansas allowed gyms to reopen. expanding retail with more new jersey stores allowing curb side pick up. minnesota malls open now to foot traffic. in louisiana, casinos reopened at 25% capacity. temperatures taken and leave a gap between muches >> auto factories in michigan reopened workers wore masks and were subject to temperature checks. in california, the governor said the state could continue easing state-wide orders and hold sports events without retailers. retailers could open first week of june. jay clayton will join us

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good morning, welcome back to "squawk box" here we are about three hours before the stock market will be open.

right now, things look like they will open lower. dow off about 130 points nasdaq about 17 points lower nasdaq planning to unveil new restrictions and ipos that will make it harder for chinese companies to debut on its stock exchange they will not site chinese companies but the move is being driven the lack of accounting transparency and close ties to insiders with tensions between the u.s. and china on the rise now, president trump is signaling it may push chinese companies to follow u.s. accounting rules joining us with so much more on the phone in an exclusive interview is sec chairman jay clayton. good morning to you. it is night to speak with you. tell us how you are thinking

right now about chinese companies on u.s. exchanges? >> good morning. nice to talk to you again. how we think about, let's just put chinese companies with emerging companies at the moment that has become more attention has been drawn to it i heard more on the potential nasdaq move. let's go back to the two tremendous things. we put independent audit committees into public companies. independent directors with financial sow sophistocaiton

the other thing is public aud auditors those rules have been significantly relaxed. that's an important focus as emerging markets have become much more of, i would say, part of an investment choice and portfolio particularly for retail investors we do need to look at whether those types of prophylactic, quality control measures would apply equally to those measures. i'm happy to see that debate go in that direction. >> if you are an investor and

investing in merging companies and china. what rules could be coming and react frankly to stock prices? >> investors should be cheering to the extent you are putting in place more rigorous -- when i say bang for the buck, having a good committee is not only costly but can provide benefit of having pcob oversight is a pretty significant factor. andrew, investing is very much company specific but if you you are going to break things down geographically, you ought to also break things down as to size pending move, contemplative move looks at smaller companies that

list a lot of smaller companies around the world seek out u.s. listings as to what i would call a good housekeeping seal of approval we ought to raise the standard so that they are indeed entitled to a good housekeeping seal of approval >> let me ask you another question i don't know if you were watching earlier we were talking about moderna. out with early results they sold stock at the end of the day or at least announced the sale of a billion worth of stock. also talking about executive plans during this period of health care ceo who has a 10 b 1 plan to tell stock one thing we were talking about is whether health care ceo or

executives should be buying or selling during this period and how maybe even you or the sec would look at that >> i always like hearing my good friend scott gottlieb. i miss him here in washington. he was a terrific commissioner of the fda i love the way he oversaw his agency scott, as he always does, gave good advise here look, if you are an executive of a public company, there may be circumstances where you would be in the market but as we said for a long time in this time, please practice good corporate hygiene. i'm sure most good public companies have insider trading policies designed to prevent not only insider trailing but allegation or suggestion that there is insider trading that is a bit of a lawyer answer

to be saying, yeah, practice good hygiene be careful why would you want to even raise the question that you were doing something that was an appropriate companies need capital. completely different story from an invieder turning their investment needing cash. seeing a market opportunity to do so consistent with our rules which require disclosure of where we stand today i'm not going to comment on a specific company but i do hope they are making it clear to people where they stand. we want companies to be able to access both our equity and debt markets. we've seen a tremendous amount of activity in the debt markets where companies are looking to

bolster their debt balance sheets it is a wonderful thing about the markets that you can go and do that in times like this >> it is joe i wish i went to law scoot so many times i would have saved myself if i spoke like a lawyer. that mechanism to sell stock on a regular basis. that gives ceos a lot of cover that i'm not sure they always deserve. he could always fall out on that almost used that way i wonder if it has lost effectiveness. because it could be used as a

blanket statement. have you ever thought of it that way. is it okay do we noods to kwaumify it somehow. >> you are raising the question of being a 10 b 1, if you are a company insider at a time when you are on an equal footing with respect to information to the rest of the market say after earnings in a calm period, you are not planning anything. you can put in place a regular selling program. look, i can see and have seen where this makes sense have a lot of your network tied up in the company stock, you'd like to diversify given a chance to do that over a year or two. fine, there are times when that looks, nonlawyer term, not great because you continue to sell

when prices are volatile or ahead of bad news and it looks like you had an advantage. we do look at those and make sure they were put in place in the right way and being followed when these things are put in place, take a look at them make sure they make sense from the perspective of how your company is going to to look over the next couple of years i hope that gives you an explanation. >> it does they are always able to fall back on. hey, it wasn't me selling. it was out of my control but you do look at it and are aware of the possibility abuses, i guess. thanks >> yes yes. >> before you go, last time we talk talked to you was about a month

ago. we were headed into the earnings season and also suggested that ceos may temper how they communicate or temper how far they go. at some point, i imagine investors will start wanting guidance in part to have the type of confidence that maybe markets suggest we have today. if guidance is completely eliminated for the next three or four quarters, you would imagine confidence would take a hit. when do you think the guidance -- what is the appropriate time for companies to try to come back to the guidance to the extent that you think the guidance is a good thing? >> andrew, i want to say that i think this has been and will continue as the retailers come in they are a little more delayed than others in earnings season like no other than i remember.

we'll take your point on guidance usually guidance is a very quantitative metric. here, to use the word broadly was operational. it is like, here is how my operations look today and how they may look in the future. as social distancing guidance or overuse guidance changes that has given investors and the marketplace a tangle flavor of what companies will look like depending on how operations are allowed to go forward. i'm very -- look, we are in very uncertain times. usually the company has a lot of information. investors don't. companies try to level set right now, we all have uncertainty. companies i've seen by and large have been very good at

explaining that uncertainty. that adds the confidence in the marketplace. telling people you don't know something is better than telling people you do when you don't companies have been pretty transparent about their constrains giving them opportunities to assess how and when they could get back and i've begun pleased with that. revenues and operations, not the decision of the bps. i expect that to continue for some time as we get back from an operational health perspective >> okay. jay clayton, we appreciate it. always great to talk to you. we hope to catch up with you soon in the future >> thanks, andrew. always good to be with you >> thank you becky, over to you thank you. when we come back, new york's looming revenue problem. that story straight ahead. a reminder you can watch or

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coming up, big red flag for new york city. robert frank tells us why property tax revenue due in june could be a painful shock to the city's finances. and a programming note united airlines incoming ceo scott kerby will join us tomorrow at 8:30 a.m. eastern on his first day in the new job ok fwaloorrd to that "squawk box" will be right back.

new york city relies on property taxes for its revenue, but with a lot of uncertainty around, residential and commercial real estate right now that source of money is coming under quite a bit of pressure. robert frank joins us with more. hey, robert. >> reporter: good morning, joe new york city already looking at a $3 billion deficit could rise to 9 billion by next year it could get worse from a drop in tax revenues from offices and commercial space property taxes are now the largest source of tax revenue for new york city accounting for almost half of all of tax revenue. that's twice as much as the next big revenue razor. that's the income tax. even though the bulk of manhattan's real estate is residential, it's the commercial space that pays the bill because of the higher rates. the average tax bill for commercial space has more than

doubled since 2001 to over $7 per square foot. and that means that new york city is more dependent than ever on the sector that will be hardest hit in this downturn you have big banks and tech companies shrinking their tech footprints you have a growing number of restaurants and stores closing for good the big hit could come on june 20th that's when the property taxes are actually due to be paid. we'll see how many get paid, joe. >> robert, we will that's very strange in new jersey i was talking about it yesterday. i know this is a new york story. some things due june 15th. first quarter due july 15th. do you know about this it's like my accountant, are you kidding? are you telling me with a straight face? it's bizarre it's because of the jersey fiscal year. how is everyone going to do

their taxes? >> it's confusing. federal is july 15th some states are in sync with the federal government to your point, other states with their fiscal year have to go earlier. some states even stuck to the april 15th deadline so it depends on the state but it's very confusing. that's what's led to a lot of the cities and states just starved for revenue. they have higher costs right now and they didn't have that bump from april and they don't know when they're going to get a big bump or if they get one in june or july. >> okay. confusing. you can't come over. i guess not. now we're all self-isolating. >> not yet. >> you can't come over to go through some of my stuff never mind bad idea thanks, robert see ya later andrew coming up when we return, walmart set to report in the next few minutes we'll bring you the numbers and reaction on wall street. then later, barry sternlicht is going to give us an update on the big changes to american

businesses as states begin to reopen squawk returns with two big hours ahead. is alone. we're automatically refunding our customers a portion of their personal auto premiums. we're also offering flexible payment options for those who've been financially affected by the crisis. we look forward to returning to something that feels a little closer to life as we knew it, but until then you can see how we're here to help at libertymutual.com/covid-19. [ piano playing ]

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the nation's largest retailer reporting quarterly results. we've got the numbers and the market reaction just moments away. the treasury secretary and fed chair set to testify in front of the senate banking committee about economic relief in front of the american people. we'll speak to pat toomey. the president's meeting with restaurant owners yesterday to talk about the reopening of america and the payroll protection program we will hear from a restauranteur about what he heard. the second hour of "squawk box" begins right now welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. equity futures. dow off 105 points s&p 500 off 11 nasdaq off 10. we have results hitting the tape that are going to be affecting potentially all of that. becky? >> yeah. second dow component to report

walmart results just crossing the wires. courtney ragan joins us. she's got the numbers. courtney >> hi there, becky walmart's shares, 1.18 adjusted. that does beat estimates by 6 cents. revenues better than expected at 134.62 billion the street was looking for 132.8 billion. walmart is withdrawing its full year guidance. the company spent $900 million in covid-related expenses here in the first quarter most of that was related to increased employee pay and policy changes gross margin also down 66 basis points and that is the company says from consumers buying more of these lower margin categories, food, consumables. some carryover from last year for these lower prices as well as some unanticipated markdowns there. strong u.s. comparable sales up 10% for the quarter. the street was looking for growth of 7.2% our national positive in nine out of ten markets

sam's club comps up 12%. strong u.s. net sales online so this is net ecommerce sales of 74% this is at least the strongest on record since they've been tracking the numbers as they do now for the net ecommerce sales. i spoke to walmart cfo brett business who said, quote, it felt like several different quarters within a quarter, particularly in the u.s. he said that there was a 3.8% comp in february in the u.s. then 15% in march as the stock filing really picked up including a 300% peak in pickup and delivery at one point. then he said, quote, april started slow, particularly in general merchandise. when the stimulus money hit in mid april, it picked up again. april u.s. comps were 9.5% business also said the second quarter has started off pretty well as we continue to see the stimulus money come in for consumers, though the retailer isn't sure that that is going to

continue at this pace, of course walmart is discontinuing jet.com but business is leaving the door open for the brand to be able to use that name, the jet name in the future, further explaining, quote, walmart.com has gained so much traction and jet has been playing a smaller part in the portfolio. a lot of that from mark lore's decisions as we have gone along. pretty banner quarter here from walmart withdrawing the full year guidance though just because of all of this uncertainty going forward and discontinuing jet.com. becky, back over to you. >> courtney, that is a lot to get your head around, just the idea of 10% comps for the quarter in the u.s. and the idea of 15% up in march we're not talking about a small retailer here. you're talking about the largest retailer in the world. working through numbers like that, what that really means is really difficult to kind of figure out >> reporter: absolutely. even when you look at the pure

revenue totals this is beyond of course just the u.s. to beat analyst estimates by $2 billion is considerable. now, of course, these are probably not numbers we're going to continue to see forever in perpetuity as the company begins to reopen, but walmart obviously sold a lot of those essentials that americans needed and frankly stockpiled during that month of march. >> we should also point out if you're watching walmart shares, they're up by 4.75%, gain of almost $6. the dow itself, because the walmart is a dow component, has improved by 40 points since we got the release of this. dow is indicated down 60 points. before we heard the numbers from walmart and the gains in that stock we were looking at the dow down by 105 points courtney, thank you. great stuff. good to see you. programming note, folks, tomorrow right here on "squawk box" we will be joined by walmart ceo doug mcmillon. he doesn't talk that often and hasn't been talking during this

pandemic we will get the chance to talk to him about all of these numbers, what he's seeing in the stores, what consumers are doing, what they're doing for the workers. we'll talk to him about the broader economy. he'll join us at 8 a.m. eastern time right here on "squawk box." with instant reaction to walmart's results, let's bring in charlie o'shea. charlie, these are very strong numbers. i think what's particularly interesting if you look at walmart versus home depot this morning, both those companies taking huge efforts and really making sure that they're trying to take care of employees. but you see that walmart was actually able to beat the street's expectations, both on the bottom and top line with this what's your take on what you're hearing? >> first, thanks for having me i hope everyone is doing well. this is expected i think that when we have seen what costco's been able to do, costco's a pretty good comp for walmart in the u.s., costco has been popping pretty big sales

numbers as well, we knew that walmart would be at least that good just because it's a more frequent shopper base and walmart's food business, consumables business is driving the top line and also driving some of the softening on the margin side because those are lower margin categories, but this was something -- you know, walmart's the bellwether name in u.s. retail and in a situation like this, you can learn an awful lot about how the consumer's feeling and shopping patterns when you look at walmart's results. it was instructive and informative to see on the margin side exactly what's been going on and where all these expenses are hitting, how much they're spending, and some of the impact on revenue and margin of, you know, the soft -- or the lessening of the store hours and the traffic, et cetera so this is an impressive quarter for walmart under really extreme circumstances. >> charlie, you said that this

gives us a good idea of what's happening to the u.s. consumer walmart has always been one of those stories that can go either way where when good times are there, wall 345mart does well when it's bad times, walmart tends to do well it's a discount retailer what can you learn about the consumer and the economy overall based on these numbers >> we're clearly in a needs is winning over wants environment right now. target is going to report tomorrow and the nondiscretionary categories are driving things walmart has a very high mix of nondiscretionary food consumables grocery equivalent level there is approaching 300 billion in the u.s. by our calculations when you include sams, so you see the stock up you see people really doubling down on in store pickup, doub

doubling down online 70 plus percent plus online sales growth in the u.s. is a staggering number. the pickup number that walmart has rolled out is benefitting consumers immensely. there are a lot of people out there afraid to go anywhere, afraid to get out of their cars and actually go into a retail store. so walmart's been able to flex everything at its disposal every arrow in the quiver is being flexed right now with faster delivery. everything the company is doing, they've doubled down i'd lake to call out something that doug mcmillon said at the analyst meeting which seems like eons ago on february 18th. they were talking about what they were doing in china walmart got kind of a preview, which isn't maybe the best word, but they got a little insight into what was potentially going to happen in the u.s. and he made a point of emphasizing that we need to keep our stores open.

we are involved in the communities. they need us and we're going to react like we do and he used the hurricane example. and that's exactly what the company's done they've really doubled down to make sure that they've got as much as they can control because they're still out of stock to make sure they can take care of the consumer. >> to continue that storm analogy if they're operating like they're in a hurricane, how do you think consumer practices will change? are these lasting practices? will they use walmart.com, pick up in stores, are those the type of patterns that the virus is either cured or dissipates >> absolutely. i think what you're seeing today are a lot of consumers that have never used in store pickup, have never really ordered online. going into the pan dome mick we're at high teens potentially retail penetration in the u.s. and that number is obviously going to be much higher.

i think what you're seeing is we're -- years are turning into months with respect to how fast the online business is expanding, and i think the expense levels are going to, you know, magnify that and i think as the consumer, again, gets more comfortable with someone picking their groceries and putting them in their car, in the back of their suv, ordering things online that they may never have ordered before, ordering from online retailers or retailers online that they've never used before because they don't have a choice right now, i think you'll see online growing much more rapidly than we thought it would prior to this, obviously, and i think you're going to see a lot of the brick and mortar retailers demonstrating to retailers that, hey, it's not just an amazon world here online. we can deliver we can handle your orders and we also have these stores that you can utilize for faster pickup and faster delivery of your

products >> charlie, i know you tend to focus on the corporate debt side i want to call your attention to a chart we were seeing a moment ago. i don't know if you're watching on tv now. if you are looking at walmart versus the dow, walmart shares up 32% versus the dow being down 4.5% i think that was the chart we were looking at. you can see walmart's numbers have gone steadily up since the beginning part of march. this is a question towards valuation. the market knows that walmart's going to be a winner how much more support should it be getting from investors jumping in here? how much of the valuation is already taken into account >> well, i think from a fundamental perspective, that's where i'll have to move this, i think walmart fundamentally is running ahead of the pandemic. i've covered the company for 17.5 years now and i've never seen the company operating better i think that recognition of how well this company does what it does and how effective those

investments that they made -- they started making in october of 2015 during that epic meeting at the stock exchange, i think the -- you know, the market both on the credit and i think on the equity side is recognizing that these investments paid off and they're going to continue to pay off and without those investments, walmart is not near where it is today. it would not be handling this crisis as well as it's handling it on the other side, the consumer wouldn't be benefitting to the extent it is today >> charlie, thank you for your time it's good to see you >> thanks, becky great to be back >> thank you joe, again, just for the viewers, we will have doug mcmillon, the ceo of walmart joining us this morning on "squawk box" first on cnbc to talk about the earnings report we've just talked about. >> that is great that is excellent. walmart helping obviously just do the math. now we're down 42 on the dow coming up, the treasury --

there's doug mcmillon on tomorrow. secretary and fed chair will head to the hill to testify about the economy and the plan for growth amid the pandemic we're going to hear from senator pat toomey about what he's expecting to hear. that's next. before we head to break, check out this morning's s&p's winners and losers "squawk box" will be right back.

steve mnuchin appearing in front of congress talking about the $2 trillion economic package. steve liesman joins us with more >> they will be appearing virtually. the dynamic duo, mnuchin and powell running the financing they're talking about the idea that they expect the output in a rise in unemployment but does

expect some improvement as the year goes by saying the fed has taken unprecedented steps to address the coronavirus. talking about those two, here's the fed's balance sheet. $2.5 trillion additionally hold on, folks, because you ain't seen nothing yet it is about to, i believe, surge when the fed starts launching the programs that are out there. what programs? the fed has committed eight programs at the fed. that will amount in trillions of dollars. corporate bonds, ppp loans, only a bunch of these i was counting 1, 2, 3, 4, 5 of those 8 programs look to be open at the moment. there's also 259 billion not committed and that could amount to an additional trillions of

dollars more in spending or lending at the federal reserve under these programs or additional programs as needed. as for the treasury secretary he will say on the hill, quote, we are working closely with governors. we are beginning to open the economy in a way that minimizes risk for customers we expect economic conditions to improve in the third and fourth quarters that is the baseline forecast. they see a rebound in the third quarter and fourth quarter goldman recently downgraded the second quarter to 4.9% but sees a sharp rebound in the fourth quarter. powell for his part, andrew, as you know, has talked on "60 minutes. his concern about a second wave and his caution in the reopening efforts around the state andrew >> before you go, how much of this do you think is just going to focus on the actual -- not just the numbers and whether the goalposts are going to -- have been moving on ppp

i imagine that's going to be a big part of this conversation about who's getting the money, who's not getting the money. how much longer this needs to get extended what kind of things -- how do you think that's going to be framed by mnuchin? >> you know, andrew, you ask an excellent question that really gets at how i'll be listening to the testimony today and the reason is because you don't so much listen to the people who are the witnesses, you listen to the questions and the questions will tell you what the partisan divides are on these programs. i think you're going to hear a lot of questions about state and local assistance, which is something the democrats want i think you might hear about debt and finance from the republican side. i'm not sure how this all shakes out. one of the remarkable aspects we've lived through is the bipartisanship that they got to of the c.a.r.e.s. act. now the question is the bipartisanship of the c.a.r.e.s.

act going forward. the ppp program is really critical do they get rid of the requirement that you hire the workers and let them use more expenses -- more of the money forex pens are they ready to do additional funding for the possibility that this thing goes on further >> thanks. this person's going to hear all of this, lucky guy gets to watch all of it real time with more on today's hearing, let's bring in senator pat toomey, member of the banking committee. senator toomey is also a member of the congressional oversight commission charged with overseeing the fed and treasury's activities in relationship to the c.a.r.e.s. act. it's nice to see mnuchin and powell get along so well, too. they talk a lot on the phone what do you want to hear today, senator, about the progress of the c.a.r.e.s. act there are some -- a couple of things that need to be smoothed

over it's not getting out there fast enough probably. >> well, there's a few things, joe. good morning thanks for having me first of all, actually, one of the things i'd like to clarify is the mischaracterization of the chairman's comments about the congress dropping another money bomb on the economy. he was not calling for that. he was -- it was much more nuanced comment in which he observed that there are costs to doing that so it might be helpful to clarify that i also hope we'll have some discussion about the importance of reopening the economy because government spending is no substitute for having an economy and in many places, including my state, we are overdue. we're behind where we ought to be in terms of reopening but then there are the questions about the programs one of the first questions is when are we expecting to see the main street lending programs actually funded? when is that money going to get out the door because not a dime has moved

yet. i'd lake to better understand some of the hurdles they're facing in getting that operational. some of the decision-making process that got them to the design how much uptake they expect on this program, both in terms of lenders participating, including non-bank lenders which i think would be helpful, and also the demand from borrowers. there will be a lot to try to cover. >> at this point you think we need to see how the current c.a.r.e.s. act plays out before considering another 3 trillion what did you call it, strap on another money bomb what was that? that's not a great thing >> yeah. well, joe, you can forgive, if you will please, the metaphor, but it's really incredible to me what we've done. $2.8 trillion of direct appropriations the fed has the authority to complement that with another call it $3 trillion of loans now way, way less than half of that has actually made it out

the door we've approved about 20 -- no, more like 30% of america's entire annual economic gdp that's how much we've authorized to spend or lend already most of it hasn't happened yet don't you think we ought to take a little bit of a pause and a breath and try to understand what we've done, what unintended consequences there are, what needs might remain before we go out and launch another trillion or so? i think we ought to wait. >> there are certain things that states and cities and localities, you know, firemen, policemen, there are things that probably aren't covered even if we do get this out more quickly than the bills that are already passed, right? >> yeah, but there's a real debate as to whether there should be any federal funding going directly to states and municipalities to replace lost revenue. >> right. >> i'm a skeptic about that, as many of my colleagues are. and with respect to the private

economy, i think it's very hard to assess what the c.a.r.e.s. act has done yet especially since so much of it hasn't been implemented. >> it's got to be implemented, then we're right in the middle of this grand experiment of trying to reopen in varying speeds depending on localities and population and everything else so i guess we could -- i mean, in the next two weeks we're going to know a lot more than we know right now, senator, about that >> yeah. absolutely we will have quite a number of states that will have had some significant reopening underway for several weeks, even a month or so. that will tell us a lot. i'm extremely optimistic i think all the signs point to a successful reopening, but i think we need to get on with it. >> andrew? >> senator, can you just speak to your concerns and why exactly you would be against providing some more funding, especially to hard-hit states and

municipalities that clearly have been impacted and are at least expected to be -- continue to be impacted for the foreseeable future >> well, first of all, andrew, think about what we've already done we've sent $150 billion to the states to offset expenses that are even remotely related to covid. so that's a huge slug. we increased the federal share of medicaid spending that's a big category. in fact, it's the biggest category of spending for most states so a lot of money has already gone out the door directly to the states, and of course they are meant to allocate it to their municipalities and their counties so, for one, we've already covered a tremendous amount of it and, you know, why is it that the federal government should be the source of this money i mean, states and municipalities have taxing authority of their own they vary enormously in terms of how much money they choose to spend per resident

some are very efficient and lean and they have rainy day funds, others are completely insolvent. it runs the gamut. you know, it's true, we in the federal government can borrow money more readily. >> senator -- >> yeah? >> why wouldn't you think about this being the equivalent of a natural disaster in the way team ma might fema might approach things when we have a demonstrable disaster we throw money at it. we go to that state that's been most impacted and we try to help in every way we can. look, it's my home state, new york, that i imagine is going to be the longest term impact, but, you know, i guess the question is why when you're looking at the tri state area and other places, by the way, you know, there are so many states that will be impacted, but demonstrably in certain places like that it's less to me about the efficiency of how the money is spent and we can have guqual

ams about that, but there are places that are hurt in many ways. >> there are direct expenses we're covering plus upping medicaid sending out money for primary, secondary, even college education. there's a tremendous amount out the door very large percentage of the total costs. what i'm questioning now is first of all whether we should go even beyond that. what about the fact that many states made decisions that left them in a different set of circumstances? some states there's been a lot of discretion about how extensive the shutdown is, how long it will endure. so, you know, it's just not obvious to me after all the hundreds of billions of dollars we've already sent to the states, it's not obvious to me that there's some specific amount above and beyond all of that that we also have to send now. >> all right we're going to let you go,

senator. we appreciate it the betting sites are now 51/49 whether republicans keep the senate have you seen that >> i understand. yeah, it looks like we have a lot of very competitive races. >> it will be something to behold all right. thank you, senator toomey. we appreciate it >> thanks for having me. >> we'll be watching. >> you can catch today's testimony if you have been up and unable to -- no, kidding you can catch today's testimony from jay powell and secretary mnuchin starting at 10 a.m. eastern. it will be absolutely riveting i should not have started that like that. when we come back, starwood capital founder barry sternlicht will join us to talk about the reopening of america and the economy. that's a few minutes away. two big earnings reports home depot reporting 2.08 a share compared to a consensus of 2.27 they did beat the forecast though that stock is down by 2.1% as

home depot suspended the 2020 outlook. then there was walmart earning 1.18 a share beating estimates by 6 cents revenue and same-store sales better than expected u.s. same-store sales up 10% that's propelling it by 4% "squawk box" will be right back. assisting millions of customerse 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. some companies still have hr stuck between employeesentering data.a. changing data. more and more sensitive, personal data. and it doesn't just drag hr down. it drags the entire business down -- with inefficiency, errors and waste.

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giter the break. mac johnson in the 8 a.m. hour back in a moment

states across the country are looking past the pandemic to plan their business's reopening. some are already partially back up and running hoping to mitigate the financial damage of the shutdown joining us is barry sternlicht which has $60 billion in assets

under management he's the chairman and ceo of sh resorts. how are you doing? >> good. how are you, becky nice to see you. >> nice to see you wlets' talk a little bit about what you're seeing at least in the hotel business, in the leisure business at this point, where are things and how are consumers feeling about getting back out and traveling? >> well, i think the economy is clearly picking up i think what you're seeing is roadside is doing okay where people are driving that's picking up first. it's not group there's no international travel involved that will be the last of the hotel markets to open. anything that's international. we can talk about how we do that we opened a hotel in

jacksonville on the beach a couple of weekends ago we ran nearly 60% occupancy on the weekend because people are desperate to get out of their houses it's been surprising to me i was wondering why traffic in malls is up. two things, surveys show consumers after they get out of their house, they want to go somewhere. they want to go to the mall. i was surprised to see that. they have all the time in the world. they're home they've gone to stop and shop and publix down in florida, now they're going to explore it's like a flea market. giant sale the local mall is important. it is interesting and it's not in order of the questions you've asked me i have never seen the difference between social distancing in walmart or abercrombie & fitch they should not be disadvantaged to the major nationals, costcos,

they're just as important as the large stores new york city is seeing such a spike in taxes that's what happens when you keep everything shut we can do social distancing in outlets. you don't have to go to walmart to buy gardening stores. you can go to your local hardware store just because they're small doesn't mean they can't practice the same health benefits than the larger ones can. in fact, maybe they'll be more careful. >> barry, you mentioned the hotel that you opened in jacksonville on the beach at 60% occupancy for the weekend. where did you think occupancy levels would hit >> like 30, 35 every major hotel we have in the major gateway cities, miami, new york, los angeles, they're all closed with no signs of opening.

los angeles is having a bad experience per se. the mayor extended the shutdown for another three months i think arbitrarily. here in miami, i think some issues with crowd control, international travel miami can probably reopen. we're prepared to run the hotels, you might be curious, your investors might be curious, list eners we can probably break even at the property line with 35% occupancy. if you want us to cover debt service, real estate taxes, okay cue pan sis need to pass 50%, 60%. you might get there based on the moderna vaccine by theend of the year, but air travel, you know, i'm really delighted to see the airlines put mask requirements on, temperature checks as soon as people have confidence, they're going to fly. i have some friends that were supposed to come out from california to miami, the two planes were full people do want to get on with

it, especially the younger people they're tired of this and i'm kind of in their camp as long as those at risk stay home. so i think the nation needs to open and i think the blue states that are really getting hammered, they happen to coincidentally be the places where the virus has been the worst, they need to get on with it too we're anxious to open our offices. we make attending our offices totally voluntary. my guess is 25% won't come out and the rest will get back to business the way we can do it. >> barry, you guys obviously meade to make some type of plans for the rest of the year and into 2021. you've probably been the most aggressive or optimistic, i should say, about the time line for all of this. you talked about the moderna vaccine and even the end of the year we can debate it i think that's probably a little

bit early in terms of that getting to people at scale, but the question i'd ask you is to the degree you're making investments or thinking about how the business is going to operate or how you're going to deal with debt service over the next, you tell me, how many months or longer, you're sort of making your plans around >> we're not your typical owner of assets so we are fairly deep pocketed we have large funds. i'm more thinking about all of my friends who own hotels and other businesses and own office buildings, for example you know, i said on march 13th when i came on your show that i was fairly bullish i think i look like a crazy person but i gave you five reasons. one, interest rates were low and stay low which they have it's a cut for businesses, tax cut for consumers. oil prices down, tax cut for consumers, tax cut for businesses we would have over stimulation probably the biggest worry i have right now is we go hogg

wild and bananas it's so interesting. 100,000 deaths, 90,000 deaths. 100,000 deaths at $6 trillion. that's $60 million a death we give people $1,000, even $500 for signing up for contact tracing, you can do ichb stansty i said it was world war 3 for 90 days 90 days has another three weeks to go. june 13th. it's war at war with a virus. why don't we mandate contact tracing. we'll even pay you for doing it. $500 per person. that's 150 billion versus the $3 trillion democrat stimulus package. once we track it, we can deal with it. that's 150 billion bucks at least there will be a return on the investment. i'm empathetic i'm involved with robin hood we help the poor i totally understand this has been disproportionately hitting those most in need we need to help them

probably not lift $600 million on top of $3 trillion because we have created disincentives we are worried about hiring some hotel workers back because they're making more money getting less work. good idea. a little over zealous. the over stimulation could be real it's on a global scale it's not just us we're buying etfs today. i'm not sure why we're buying etfs nasdaq is up s&p down 9%. maybe you needed it three months ago, you don't need it today then you have it's a flu we've proved it's a flu. 50 of 52 the r0 is down, negative only 2 states where it's still red. minnesota and maine. we don't hear about that often in the press we are getting through this. the last one is the medical breakthroughs. if it's not moderna, mike mill

kin said there are 100 different vaccines working the odds of none of them working, i'm not going to say that's high. it is a question of the slope, from here to that to when people feel comfortable contact tracing can help us. temperature tracing, wearing a mask, all of the things everyone's heard about in general, if we wait too long, if the states stay shut too long it can be irreversible damage. these small businesses will never open that will be a shame because the only guy left on main street was a small restaurant guy everyone else has gone online. i don't think the main streets will ever look the same. i don't know, i think people will want to come back and shop is if i canically to some extent because it's a social experiment they didn't have to go to the movie, they watched the movie on the ipad human behavior, i've been to the west side of the state in western florida, northern florida, they are out and about and doing their own thing. they're keeping respectful distancing in georgia they're being

careful. we don't have much of a choice the country can't survive being locked up. we don't have enough money in the world to actually pay for an entire economy in the meantime, other nations are moving forward we have to get our manufacturing back one really positive thing that will come about this which a friend told me is we used to have just in time inventory. now we're going to have just in case inventory that means we are going to bring back key pharmaceuticals, key equipment for a pandemic it could be the manufacturing revolution that the trump administration has sought to do. that could be a long-term significant benefit of the situation. i think people are surprised at just how dependent we are on foreign supply chains and you'll see, i think, a lot of effort made by companies to basically bring back critical materials to the country. that's good because some of these small shop owners are going to have to be retraine for new jobs >> hey, barry, yesterday the president was meeting with

representatives of the industry, a lot of big restaurant chains and others he kept saying what he thinks they need is deductibility, to be able to deduct expenses that come through this. seems to me most of them were pushing back and saying they need an extension of ppp more money to be paid out. where do you come down on that >> they need confidence. they need consumer confidence so people come back and can sit outside or sit inside. restaurants won't work with 25% occupancy. their rents would have to be cut in half and that would be a rolling stone into oblivion. i think the ppp program has been a very good program even down the street, one restaurant right down the block has reopened we were told it was going to close and it reopened. so, again, it depends when they open south florida, miami-dade is unique. it's been a hot spot so we're not open.

if you go to broward or palm beach, you'll find people out and about and they're not fully open either, but i think this contact tracing is a really big deal having the ability to know you've been with somebody, had this and self-quarantining can be a game changer. we're getting that slope fast. i think -- i don't think it's about tax deductions i think deductibility. you need revenue you need revenue and customers to get customers you need employees and materials. the ppp is a good program. >> okay. barry, thank you very much it's great to see you and we will talk to you again soon. coming up, restaurant groups sitting down with president trump yesterday to discuss reopening and the payroll protection program we're going to hear from the ceo of guy ayla plaza restaurant an

kevin mccarthy will be our guest coming back.

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welcome back to "squawk box. president trump sat down to a roundtable meeting and the hot topic for discussion was the time allotted for the paycheck protection program the next guest was one of those executives melvin rodriguez melvin, it is great to see you for the last 20 years i've been going down to your restaurant. i miss your bread pudding so very, very much. and, boy, do i wish you all the luck in the world. tell us a little bit about the meeting that you had with the president yesterday and what you told him specifically about the ppp program. >> well, first of all, would he have' got to get you some of that banana bread pudding sooner

than later we are starting to open new orleans now but the capacities are quite restricted that's a bit of a challenge. we'll keep working on it someone mentioned consumer confidence earlier that's obviously so important right now. and -- but, you know, our message to the president yesterday was really clear and it was this, the payroll protection program has been a help to many millions of businesses across the country and it's got a great opportunity to be a help to restaurants. what we need is an alainment of the test period and us being open for business. that being said, what we've done is not ask for more money, we may need that in the future, but instead of more money what we

asked for was to give us a larger window of time. and we asked for it to go from eight weeks on the test period for forgiveness to 24 weeks on the test period for forgiveness. that would give us -- that elongated time period would give us staying power to weather the storm, keep our staff and just make up for the shortfall in revenue that we were experiencing >> hey, melvin, in terms of the challenge that you're confronting, one of them, of course, is social distancing and requirement that you can only have 25% occupancy i'm curious what you think the appropriate occupancy could be and keep everybody safe. the other question i had is how much of it is the social distancing requirements and how much of it is just strictly a demand picture given that new orleans is such a wonderful tourist destination and an environment where people aren't flying into town for the

weekend, there's less people that i imagine are going to be going out. >> so you're 100% right. it's a twofold issue first and foremost it's hard to believe, but when i reopen tomorrow at 25% capacity, i'll be losing more money than last week when i was shut down because i'll begin incurring expenses below the break-even. and, you know, that's a scary thought, but we've got to do it to get the economy moving again and build consumer confidence and build up to what would be a reasonable capacity. as far as demand, i think that there will be a demand early on for those restaurants that are open we've got a lot of calls when we made our announcements last week and so that's incredible and a good deal. that being said, you definitely hit the nail on the head new orleans is a city of 400,000 people and the greater metropolitan is about 1.1 million. that's not enough to sustain

1500 restaurants in any math that you do. so we need those 19 million visitors back. that takes me back to our solution yesterday, which is a win for all restaurants, is if we can get -- and we did we got great commitment from the president and secretary mnuchin to work on this. if we can get from eight weeks to 234 weeks on the -- 24 weeks on the forgiveness that allows us to stretch those loans and get forgiveness and that gives us the staying power we need to get closer to a point in time where those 19 million visitors do come back to new orleans, or new york, or san francisco or anywhere else in between. >> well, melvin, i wish you all the luck in the world. i hope i can get down there and get some of that shrimp creole and the banana bread pudding.

>> look me up. thank you. >> you bet becky? >> banana bread pudding and shrimp on the way. you when we come back, representative kevin mccarthy will be next magic johnson will join us and mbe capital majority owner with raelfa martinez. "squawk box" will be right back.

breaking news. earnings season winding down but it's not done yet. critical retail services from walmart, retail and kohl's the dow has been moving swiftly on those results. another event investors will be watching closely today. remarks from fed chair jay

powell and treasury secretary steven mnuchin they're going to be testifying on america's multi-trillion dollar response to the coronavirus. he's hoping to bring a little magic to badly hurting small businesses nba legend magic johnson is going to be joining us live as he works to get more than $100 million out the door the final hour of "squawk box" begins right now good morning, everybody. i'm becky quick along with joe kernen and andrew ross sorkin. u.s. equity futures at this hour are indicated down but just by a little dow futures only down by 30 points that comes after a gain of 911 points yesterday s&p futures down by 5 and the nasdaq is actually in positive territory, up by 10 points right now. we have seen this swing around based on the earnings that we've heard from a couple of dow components this morning. we'll talk about this in a moment look at the treasury yields right now it looks like the 10

year is sitting around the yield of 0.731% so that yield has picked up over what we have seen over several days. as i mentioned, a number of quarterly reports out from key u.s. retailers this morning. two of them dow components walmart reporting results above analyst expectations this came out an hour ago. same store sales were up by 10% for the quarter versus a consensus estimate of just over 7% in the united states comps were up by 15% for the month of march. walmart did withdraw the 2020 guidance it announced it is discontinuing the jet.com brand. we will have the chance to speak with the ceo of walmart about all of this. don't miss an exclusive interview with walmart ceo doug mcmillon home depot, another dow component, posted a mixed first quarter with revenue and comp sales beating estimates. they are taking out something

like 60 cents a share, $850 million to do things to try and support their employees and that's why the number was below expectations we did talk to one analyst who said, hey, look, this is a bigger number than a lot of people had anticipated so he wouldn't call it a miss. the stock is down by 1.25% home depot is suspending the full year outlook. shares of kohl's they posted a wider than expected quarterly loss and cited store closures it is providing comps. stock up by 1% joe? >> thanks, becky senate banking committee expected -- scheduled to question chair jay powell. secretary mnuchin about the roughly $3 trillion the u.s. is committed to fight coronavirus meanwhile, late last week the house passed another $3 trillion in aid but it was a narrow vote. opinions on that package are split. joining us, house minority leader kevin mccarthy. remember the last time you were

on we were doing this again and at that time you were saying that the democrats were loading things up for the post office and, i don't know, a lot of pork in there that you didn't like. they wanted help for hospitals when it finally came around, i think both sides finally got a few things now we're back doing it again. someone said that cannabis was mentioned 60 times or something in this bill and some other things that seemingly more important weren't in it at all the democrats want help for the states and the city. are we going to come together at some point do you think it's just not needed, any add-on spending? >> no, we will come together this bill was nothing of that. i mean, you spent all your time talking about jobs if you read that bill it mentioned cannabis more than it ever mentioned jobs. much of that bill was about legislation that democrats have wished and tried to pass in the house long before covid ever

came around. it was about pot, prisoners, about election law changes, it was about illegal immigrants then the worst part is about pensions i mean, it wasn't dealing with covid itself it didn't go through any committees no one had any input into it and it was the largest bill ever voted on they knew it was a political -- just a political point they wanted to make i'm not sure why they did it much as when i'm not sure why nancy pelosi would hold up all the other bipartisan bills, but it's another political game being made today i will sit down with a vice president and treasury secretary mnuchin and leader mcconnell looking for ways to work together looking forward to move forward it's not just 3 trillion we passed in the house. you have the fed somewhere 4 to 5 trillion when you leverage that let's make sure it's all implemented into the economy before we start drafting something. let's draft something that has meaning inside

liability protection would be the number one thing i would look at. >> liability, that's going to be a tough one. i saw senator schumer say, i don't know, in his own fashion he made it out to be something that just a fat cat ceo would like it made no mention that -- i don't know how many lawyers are lined up at this point they're just ready to go it's going to be like the flood gates are going to be open before anything even happened. >> they're already advertising it it's not about -- it's really small business they go after they go after colleges, school districts. there's more than 700 suits already. remember in our very first bill we tried to get liability protection for 3m so they could sell millions of more masks to the medical community. the democrats said no. it wasn't until the second bill were we able to break them to get protection from one company for ppe, personal protection of masks. so, yes, democrats will hold

true to the trial lawyers even in a covid situation so it will not be easy but no bill will pass without it. >> andrew? >> leader, wanted to ask you about providing assistance to states and municipalities. senator pat toomey said this morning it was not something that he would be in favor of obviously we've heard from mitch mcconnell. where are you? i ask you specifically because you represent the great state of california which is going to be hard hit and i would suggest when pat toomey and others have said, look, there are states out there making decisions about staying closed longer than maybe certain people would prefer, that that's a state choice what's your reaction >> well, governors have certain decisions. our governor said there would be 25 million californians affected by this. he was off by 24,900,000 we were fortunate.

we have deaths a little over 3,000. you look at california, it's about four states in themselves. if we could start moving opening up we have provided roughly about $750 billion to states i'd like to see more flexibility for them i'd also like to see if there's anything more we do for states, not go through the governors because the governors will always take their 25%. let's go directly to cities and counties because when you are really talking about firefighters, police officers, states don't employ them, cities and counties employ them let's give them the flexibility and resources they need. let's make sure it's just about covid. illinois, prior to this their credit rating was equal to indonesia. i understand the governors, especially in those type of states are going to want to see money to take care of places they mismanaged. that's not the place for money for hard working taxpayers

>> leader, let me ask you then there is going to be a budget short fall in the state of california as there is in new york and many so-called blue states i know you're on the red side of it would you recommend those states raise taxes on those citizens? >> i don't know how california can raise higher, we're at 13% we continue to lose our population we'll lose a congressional seat in california. we're the sixth largest. we used to have toyota they went to texas now tesla, they're pushing the companies that want to stay in california if you look at the state representatives, they tell them to "f" off i don't know why we want to do that if there's something directed to covid. i think that's a place where the federal government has a role. just like that's why we've already provided almost $1 trillion this is unheard of of what we were able to do. think in perspective we spend roughly $600 billion in

a year on medicare in one month we provided roughly $750 billion to states now if there's opportunities that we could be more flexible with that money for the states, i'm more than willing to look at that if there's direct covid expenses, i would look at that from a perspective of providing it directly to the cities and the counties just when i look at providing money to schools, i don't want to send it to the administration, i want to send it to the classrooms that's why i think it's appropriate and that's what we should look at. >> leader, when you were trying to get the first bill passed and there was some question, i thought some on the republican side were ready for proxy voting you say this would give, i guess, speaker pelosi introduced a bill you said it would give her more power. you don't want -- people deserve representation in person you don't like this? >> let's put it in perspective of what our founders believed in they believed the constituents

would lone pan power for a voicr them 435 would make up congress today 20 people inside congress have all the power because what the democrats did was put all the power where a proxy vote, you would give your vote to somebody else. they could hold ten proxies. 20 people on the democratic side can decide everything that happens. how do those across this nation, the millions of people who lone their voice to somebody else, how can they hold them accountable. how can congress pass a $3 trillion bill that was written just inside speaker's office it never went through committee. there was no challenges. that's how you end up with a bill that is more cash for cannabis than actually dealing with covid that's the problem that we have and i don't know whysomeone would celebrate that. >> leader, while we have you here >> sure. >> you're outspoken about china as well. i want to get more comments on that because most people we

speak to, they're saying down the road we have to deal with a lot of these issues but right now is probably not the time how do you -- i mean, the president, you talk to him about it is it still a priority, the second phase of the trade deal, the first phase actually happened is that something to abandon at this point because we're not getting along on both sides? >> look, if not now, when? i was this weekend at camp david with the president this was one of the discussions that we had. think for one moment it's not just because of this virus. more than a year ago i went to the speaker and asked do we have a bipartisan committee, equal number of republicans and democrats, to talk about china because i don't want a republican strategy or a democrat strategy, i want an american strategy for the next century. as we sit back and look at this virus, one of the top professors of harvard was arrested by the fbi because on the payroll of china.

we don't make vitamin c or penicillin we looked at what china did about lying to the rest of the world. when they canceled their own commercial flights into beijing, they allowed those international flights from wuhan to affect the rest of the world, i don't know how we sit back. when i watch what they're doing to australia today, simply because australia along with 100 other nations wanted to study what happened with covid, they put 80% tariff on them why are they so afraid of what happened why can't they tell us who is patient number one if they truly believe wet markets opened this, i don't understand japan is having a supply chain in china i wouldn't move it in vietnam. after the usmca i would move it to north america we all studied we all understand just in time,

but if you can't move a ship, if you can't move it out, you can truck it like every delivery driver did every single night resupplying our restaurants. i would be in north america. i would put my supply chain there and we should incentive advise we should look at what they're doing in universities and every element when it comes to the strength of america and our ability to make sure the next century is ours. if now is not the time, there never will be a time to do this. that's why i went forward with our own task force when the democrats after they disagreed pulled out in february nancy pelosi said talking about china was a diversion. it is not a diversion. thousands of people died because china lied to us >> leader, let me ask you a separate question. i want to go back to the issue of getting back to work and reopening the country, and specifically reopening the state of california, which i know you're advocating for. one of the things that's happened is you have three of the largest, most valuable

companies in america based in california, i'm thinking of google, facebook, salesforce, which have effectively said their employees would not work for the office throughout the end of the year. that will have a huge impact because other companies will be following their lead this goes to what a reopening looks like or doesn't look like. what do you tell the leadership of those companies >> i think those companies are more poised to be able to work from home. they work from home before they had a virus. remember, you're talking about tech companies that's a fundamentally different thing than building a car in tesla and others we can open in a safe manner remember california, how large we are there are number one in agriculture for the rest of the nation number two when it comes to energy production. california is so diverse one

size doesn't fit all the idea that you are going to close beaches that have life guards just because you're four hours away and you don't understand it, i believe that's wrong. let's start looking at the local community. let's understand where we are today is different than where we were two months ago. every american understands social distancing. they understand about how to treat it differently than they were prior. >> leader -- >> yes. >> do you think they're making mistakes because they are considered l d leaders and you have people in the tech space and other spaces saying if facebook is doing this, if google is doing this, maybe we should too. >> no. i look at all companies could hybrid congress should be hybriding now. why aren't we bringing back certain committees that have work to be done. you don't have to bring back all of them. you would have bigger rooms to have social distancing why is starbucks open two blocks from here but the capitol is not. the senate is but the house is

not. we are essential and can show an example like salesforce, google and others they have a different capability working from home. this campus should open as more than just a campus because this is the voice of america andif the american voice cannot be reopened, how can any business open up. as we look to this thank you. coming up when we return, a special interview with basketball legend magic johnson. current project trying to get more than $100 million for minority small businesses suffering from the pandemic. show time right after the break. as we head to that break, check out shares of disney in the premarket. the big news on that stream iin.

disney+ and at one point slated to become the ceo. expected to be the ceo of that company. didn't get theob j now he's going to ticktock you're watching "squawk" on cnbc staying connected your way is easier than ever.

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get faster internet speeds with a click. order xfi pods to your home in a snap. or change your xfinity services with just a touch. all in one place. you're only seconds away from all of that on xfinity.com. faster than a call. easy as a tap. now that's simple, easy, awesome. welcome back to "squawk box. right now we're going to talk about assistance from those hurting from the coronavirus slowdown magic johnson helping deploy $100 million capital to minority owned small businesses the ppp loans are being offered through a partnership with equitrust and mbe partners joining us is magic johnson and mbe capital partners raphael

martinez good morning to both of you gentlemen. >> good morning. >> good morning. >> so much to talk to both of you about. it's great to see you both again, magic i'm going to raphael first everybody knows you, magic you have to hold on for a second we'll talk about "last dance." how did this whole thing come together >> so the great thing about doing good things with great people is that you kind of attract each other we have mutual friends that put us together and irving team, eric, kent at equitrust came together and we put this amazing deal together in five days lawyers got together, make sure the contracts were right, and off we went. so here we are today looking to reach out to about 100,000 small businesses in our community to make sure they get the ppp loans. >> and, magic, how are you going

to be doing that what size loans are you imagining? and what kind of businesses are you hoping to get money to >> well, you know, what raffl fail a and i want to do is make sure we're going to vet these companies. that's raphael's job we're going to write the check we've already written $100 million check and he's going to deploy the capital the main thing is we need to keep these businesses open also, too, those business owners need to keep their employees so this will allow them to keep their employees and also keep their doors open and we have to remember that these businesses have been in irvin communities for a long, long time. they've been doing great things. they didn't have a great

relationship with banks when the stimulus packages went out we are now able to say, hey, you can have a relationship with us, keep your employees, keep your doors open that's what we want to do. make sure minority owned firms, women-owned firms can stay open and last but not least, you know, financially this has really hurt our community, as well as health wise hurt our community. with raphael and i coming together, this is really important. and so he's going to work with the sba and we're going to make sure that these great firms are able to keep their doors open. >> raphael, in terms of getting the money out the door quickly, how do you vet the companies >> the great thing that the sba, you know, administrator coranza

and treasury, you know, the great thing that they did is simplify the application process and made it easier to qualify for these loans. at the end of the day we have to go by the guidelines that the sba set, which the bar was lowered to the point where every business that's out there can go online right now because there's a ton of money left. this is a call to action what we're trying to do is make sure we vet everybody to the standards of the sba and assure that this money goes out because the next step in this procedure is working with a depository bank to multiply irving's investments to a billion dollars and more that's what we're doing next we're doing what the sba wants it to do we've been in business for 21 years doing supply chain finance for minority vendors so we know the space. what we're trying to do right now is expand that to help others that are not being helped by the banks that we do business

with or don't do business with. >> if i could add, those checks will be different sizesbecause the companies will need different amount of capital to stay open. so it won't be a certain amount to everybody it depends on what you need to help you stay open and also help you to grow, too, grow your business at the same time. >> right >> hey, magic, what did you think when you heard that the lakers had asked for the ppp program originally it feels like the goalposts on these programs have moved a little bit they returned the money, but curious what your first instinct was when you heard that news >> i think we were all surprised. but at the same time, you know, in this climate, nothing should surprise any of us, right? but they returned the money. they did the right thing jeannie bus is a very good owner and she's smart so i'm glad she

returned the money because there's a lot of companies out here who really need that money and she was smart enough to understand that. >> right you used to own a lot of movie theaters back in the day do you have any -- do you have any thoughts about when we're all going to be sitting in movie theaters ever again? >> i think we will be sitting in them but not probably until probably i think next year because they going to have to really if you go out how we're going to social distance in a movie theater when everybody is staying safe so i think it's going to really take some time to really figure out how are you going to sit everybody where they're still six feet apart whether that's on the right or left side of you or in back of you and in front of you.

is this is going to affect us big time so i'm really curious about the strategy they're going to have to keep us all safe when we go back to the movies >> what about professional sports do you think that everybody can get tested do you think people can stay guaranteed in a hotel? do you think people will be in the audience, not in the audience >> i think when we go back, no people in the audience right now. if the nba comes back, major league baseball starts, mls soccer, i think you're going to see all those sports come back but empty stadiums probably have to do that almost every day especially before

games and so -- because we need it america, we thrive on our sports that's how we escape our everyday life is to indulge our self into sports and so we need sports to come back, especially if we're going to continue to stay home, right? so we just need sports to come back, make us feel good and we can cheer for our teams. >> okay. i have a business leadership question for both of you magic, you know, we've all been watching "the last dance," it's been unbelievable. >> right. >> what michael did on the court and his quote, unquote, management style, if you will, could be tough i think that was one of the big reveals of "the last dance." you probably knew that already because he was talking trash in your ear all the time. the question is does that leadership, which he said he paid a price for, does that work in business?

you're seeing a lot of people trying to do business analysis on michael jordan on the court versus the business analysis of being a ceo. what do you think? >> no, i think it works in sports, no question about it, because that style worked for michael jordan and the bulls and winning six nba championships. in business you really have too understand that every employee is different, right? you have to understand how to motivate them and how to make sure you get the best out of them, 150% out of them so my management style is to hire them, not to micromanage them i hire the best people, smart people, smarter than myself and then let them do their job and also pat them on the back and encourage them so that's always been my style and i will continue to do that and michael jordan, that style works in sports but in business i don't think that style works we've seen it now, right

when you got talented people, they going to say, you know what, i don't have to deal with that i can leave and go to another corporation so talented people have choices just like michael jordan had a choice to have that style in sports, but in business those employees will leave and go somewhere else because there's so much competition out here in business >> time question because we have the numbers coming andy roddick was on twitter tweeted in for you a question, magic. >> okay. >> which is this what's your favorite, proudest post basketball business accomplishment and why and he wants you to take the dodgers out of it. >> okay. it's really easy the thing that really made me a legitimate businessman, i had to give howard schultz and starbucks the credit because when i built those 125 starbucks in irvin america, everybody

thought no way they were going to work, that it could make money, it could be successful and we were able to prove them all wrong. so that, i will always have to go back to starbucks and give a big thank you to howard schultz to for believing in me and now starbucks has built thousands of stores in the inner city. >> thank you very much. >> come on back and give us a progress report when you can. >> you got it. >> thank you very much >> stay safe. rick santelli is standing by at the cme in chicago. rick, the numbers and the data please. >> housing starts, 891,000 that's from an unrevised 1.216

million. analysts had this pegged they are looking for a number like 891,000 that's the lowest pace and that's seasonally adjusted annualized of course since february of 2015 that's down a little bit over 30%. permits were better than expected it was 1,074,000 which really isn't a bad number 1.074. and then the reason i think that it was so much better is because in the end be, don't think we're not anywhere down a bit because the last number was 1.35 million. this is down significantly, it's just holding up maybe a little bit better and ultimately on the housing front low interest rates continue to be one of the positives. and of course the whole social distancing, coronavirus does make the process a little bit

more cumbersome whether it's closing or of course going and looking at the house, bringing relatives. i was looking at a house with my daughter actually yesterday and there's definitely different rules involved in the process than there used to be. we see a bit of curve steepening in front of jay powell it's long maturities rates were higher, higher especially tens and 30s. short maturities are virtually unchanged. joe and the gang, back to you. >> you do that for me. thanks, rick let's bring in diana olick and steve liesman for some reaction. liesman, you're on, baby look up. here we are. what do you think. >> thank you, joe. for the coaching there housing starts were deferred the interest rates, finally the

ability of americans to pay. if these jobless numbers are temporary, we're going to come back to at least where we were maybe even a little fast er in the next month, maybe another down month diana is going to know a lot, joe, about the dynamics inside the housing market the only thing i'll say, the fed looks at this for an idea of is the policy working where low interest rates are not really going to help rate now they could dramatically help down the road depending on what's happening inside the housing market, the ability of people to buy and pay. >> i guess it's probably almost two months, maybe six weeks ago out in my neighborhood i saw a sign with open house, balloons i looked at it and it was so tone deaf.

house always looks nicer >> yeah, there's a lot of dynamics going on. >> the permits are better. the future construction. single family. that says a lot about the difference in the builders right now. they want the single family housing starts higher. the multi-family they're shopping from homes and that's the difference between newly built homes and existing

homes. you can shop for a home just like you would at any other. it's a terrible shortage of existing homes for sale. critical the builders and that's why you don't see the permits down as much as they thought they are seeing demand come back' specially for new product out in the suburbs they don't want to be in the city anymore they want a bigger place they want a clean, pristine place. >> i don't know if wanting to move out to the bedroom communities can offset the general malaise in the economy, diana. >> they're making them urban like, more walkable. it isn't the suburbs that we saw

them you have retail out there. you have office out there. office and urban areas people want to live. you know the builders are going to cater to this they're making it cheaper. some incentives. they offer the lower price models, they're doing better. >> thank you, diana. >> go ahead, steve >> no, i was going to add, that's a great development but you have to think about the cities look, we spent how many decades, 20, 30 years trying to bring new york city back, making it more livable. this exodus for the city will be a problem for the city making it livable for people to stay there what is good for the suburbs, the dynamic that is happening is going to be something we have to address from the urban standpoint. >> i wouldn't feel great owning in new york city i really wouldn't. >> no. >> how much do you think -- how much is it down. >> it's down a lot

something to be there. >> thank you thanks, rick diana, steve liesman. >> have a good day. coming up, "the wall street journal's" greg ipp weighs in on data and green chutes he's seeing stay tuned "squawk box" will be right back. it's not "pretty good or nothing."

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still to come here on "squawk box. we'll be talking markets and the retail results a special reminder not to miss a minute of "squawk box" tomorrow. we have interviews with ceos of pvh, coca-cola and scott kirby with the first day of ceo on united airlines. starts at 6 a.m. stay tuned we'llen back with more "squawk box" right after this.

in these days of social distancing, there are all types of different ways to try and take celebrations. make them special. this is in times square. it likes he's a fireman just getting married. they're standing on top of hard

rock they just got married. that's on top of the hard rock in times square. >> meagan and kyle. >> they're being cheered by people below there were people standing below, they were social distancing looks like they just said their vows above the crowd at times square >> yeah. good old kyle and meagan that's nice to see in the middle of all of this on the hard rock. can we see the actual -- i mean, i can look out and they do have on the marquee congratulations, meagan and kyle. >> way to go, meagan and kyle. the rest of us are cheering you on, too. that is a special moment to see. >> marriage is wonderful. >> using so many new ways to celebrate. >> i use my joke, people don't tunnel into prison but usually -- congratulations i'm sure this is going to be great. no, i love marriage. >> you would have no life without penelope. >> can you imagine >> can you imagine >> no, i can't >> no way to go through --

>> no, i can't congratulations to kyle and meagan we wish you our best. >> congratulations to meagan and kyle. >> this is you, beck >> this is me. the most recent economic data has been truly devastating as we saw with the housing starts number. greg epp has been writing that things may have bottomed out for now. joining us is greg epp he's the chief economics commentator. i read with great interest your piece over the week end be talking about different statistics there are points in time that capture where we are it shows things are there and we have to remember this is a fast-moving series of events we went from a strong economy to utter collapse i do some of the housing starts data retail sales, industrial and all showing record declines but

since then some states started to open up so at times like this you can't rely on the monthly data which is outdated. we have to look at things like daily and weekly data. we have a lot of that from private places which shows that the worst point was early april. now we've seen a significant yup tick in mobility you translate that to visits to retailers that are compiled by a company called uni cap you listen to some of the commentary from companies like uber or wendy's, they're saying the worse is behind them and the year over year decline is diminishing which tells them on a sequential basis things are looking up we may look back and conclude that april was the bottom. >> you know, greg, it's great news and it certainly shows that people are having some returns to competence. i like the apple maps number because i realized i hadn't used waiz in months and i used to use

it constantly. it's a huge dropoff. maybe down 50% we are not talking about a v-shaped recovery in any stretch. >> not yet, but i'm one of those who wants to be a little bit more patient with the data before i write off the possibility that we'll have a decent rebound let's keep things in context it was only three months ago that we were at record low unemployment recession typically lasts -- the shortest recession before this was six months the longest was 18 months. it may turn out that this was only 2 or 3 months long. we need to give it a little bit of time to develop some confidence as stores reopen, as confidence returns to consumers and business, you could see a self-sustaining recovery all of that, of course, contingent on the virus not coming back and not being a second wave of infection. >> yeah. i think the big question so many people have is how many of the furloughed employees become

permanent layoffs. how do you kind of go about trying to figure that out? >> we know that of the 20 million people who lost their jobs in april, 80 or 90% said they were on temporary layoff. what that means is two things. what that means is first of all a lot of them are going to come back as soon as stores and companies are allowed to reopen. it means a couple million at least, as many as 4 or 5 million people have permanently lost their jobs that suggests the unemployment rate is not coming back down at 3.5% any time soon most of the optimistic people you talk to don't see it coming below 7 or 8% for the rest of the year of course, it's kind of -- becky, been down so long looks like up to me. i guess what i'm trying to say here, if it was awful in april, it will be better in may, a lot better in the summertime nothing like saying we'll be fully recovered. >> greg, thank you great to hear from you please come back as you get more of these results that you're tracking

>> always a pleasure thanks, becky. >> good to see you okay when we return, we're going to check in with our good friend jim cramer as we make our way towards the opening bell mr. crerig aam rhtfter the break. you're watching "squawk" on cnbc

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market analysis to get you ready for the trading day ahead. the futures this morning are near the flat line we have been all over the place. the futures were down by 140 after home depot came out with numbers on earnings per share that were less than anticipated. we've seen steady build back since then dow futures back up 23 points after gaining 900 points yesterday. when the world gets complicated,

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. welcome back to "squawk box. let's get out to cnbc headquarters and jim cramer. walmart and home depot are offsetting up each other is it a tale of two cities a tale of two different companies? >> no, i think home depot, if you add back 60 cents for what they had to spend on different issues involving covid and the employees, you would say home depot is good. walmart is extraordinary i have to tell you, for -- i know you dguys have doug mcmilla tomorrow he has pulled off something which is hard to believe the brick-and-mortar is on fire, but the dotcom is even stronger. i don't know what's going on

there. they're like trading like a small cap. >> new high, jim could be a new high. all-time high this morning >> they also, let's remember, they're essential. how many didn't smaller companies were not essential i know if you want to be political about it, i don't think there's sense being political, but the winners were the companies that had the great balance she'd sheets and were b. i would have opened some of these areas and had some of the competition for these guys that is neither here nor there look at the share they took. >> becky wants in. i'm thinking about georgia that took a lot of nerve for you to say anything positive about that governor at the time. i don't want to get into it. >> i like the governor of florida, trooo >> yeah. becky? >> jim, you watch this so closely, we had an analyst on this morning who talked about with walmart, it was that seminole moment about four years ago when doug mcmillan decided to double down and spend on

investing in the stores and online and he said it has paid off since that time. i think that's right the stock sold off at that point. we watched that happen >> we both had him on. >> without those investments he wouldn't be here now one thing that's incredible, they are a small store family that is the biggest store in the world. the family wanted him to win the family did not want him to fall by the wayside. he proposed so many things that were aggressive that it was stunning he decided to hammer his own stock in order to be long-term so all those gripers who say that wall street, there's no long-term thinking, that was the essence of long-term thinking. she be congratulated >> it will be great tomorrow >> the other one that has done it so well is target, too. >> brian cornell did it fantastically. >> right >> these guys are visionaries.

i'm sick and tired of hearing the ceos are a bunch of knuckleheads who make themselves rich these guys did the ultimate thing. they said we're not going to make money, sorry, but we will make money later that's not what you're supposed to do. >> that's a good word, knuckleheads when you are searching for a word and you don't want to curse, knuckleheads. >> you have to go back in time >> thank you, jim. >> andrew? >> we have a couple of things going on we will get to jim paulson and mike santoli trying to get their thoughts on where the market is headed later today given the gyrations we've seen this morning and some of the dow component news, then, of course, the moderna news yesterday which seemed to propel us forward. is it one step forward, two steps back one step back, one step forward?

where are we jim? >> well, i don't know about the near-term, andrew. who knows. i think we're kind of in recovery in the stock market and the economy, too for me, the biggest near-term thing is what greg talked about, we're en route to the next several weeks of data that's bouncing, and we'll come out better than it was in this month of april i think if you see data starting to pick up, it's going to reconnect wall street with fundamental information again, which i think will take some of the emotion that's been prevalent here we've been divorced from fundamental information, which will help. with so many states reopening, you will see data continue to improve as we go down the road you put that together with a

market that if this s&p 500 could break 3,000, i don't know if it can, but if it does, you will see a lot of technicians looking at this differently as well that's the 200-day moving average. if it gets above that, you have better data coming, there's some discussion of whether we're in -- we're heading for recovery, i think there's some potential upside here. >> mike, people talk about sort of what the baseline here is, and where the pressure is or the support levels are how strong do you think this market is? joe, becky and i have this bet going -- i much prefer to lose this bet insofar as the beginning of may i thought it would be harder for the market to go that much higher, and yet here we are. >> well, it actually has been harder for the market to keep up the same pace. one thing you have to keep in mind is before yesterday market was pretty much going sideways

for four, five weeks the average stock had a good pullback within the index. so i think the big feature of yesterday was people found themselves and big investors found themselves underexposed to the reopening theme, the idea that things can go smoothly, the economic cycle could quicken from here. it was too crowded on the side of the boat of defensive big growth quality stocks. it was a big rush for the cyclical, small, risky does that continue is that a huge inflection point or a tide change i don't know just to back up on what jim said, it is true, we will get this incremental reopening improvement in activity. if you're bullish about how that goes, you're not going to be proven wrong for weeks or months in the worst case scenario there's a time here where that can play the big question is do people start telling the microsofts and amazons to fund the other stuff. that would mean the other

indexes could be stuck for a while if that happened >> gentlemen, we thank both of you. it's a longer conversation, but i know we will have you all back show you where things stand right now in terms of the futures. you know, had these big dow components, a huge show tomorrow, you don't want to miss the interview with doug mcmillan we will be back here tomorrow, becky, joe, join us tomorrow "squawk on the street" begins right now. good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures are steady coming off the best day since april 6th s&p at the highest since march 6th as the tension does turn to walmart earnings and the hill. the fed chair and the treasury secretary in front of senate banking virtually, that starts in about an hour june oil expires today up for the fourth day in a row the discus