but that is a better business than music streaming >> thanks very much. great crisis playbook. tyler. >> all right, thank you very much the s&p 500 is just turned a little bit negative. we should point out as the dow slumps a bit thanks for watch, everybody. our breaking news coverage continues into the final hour of trading right now with the closing bell see you tomorrow >> thank you and welcome, everyone stocks taking a breather after yesterday's massive rally. the s&p back to levels we haven't seen since early march though we are looking at near session lows here for the dow, down nearly 230 points big tech back in the driver's seat with all the faang names in the green, the nasdaq within 5% of all time highs. walmart and home depot all lower

despite strong sales during the shutdown, especially from walmart. and times of trouble in the housing market u.s. home building dropped by the most ever in april a lot of talk of a bottom has those housing stocks up as well today. >> absolutely. but as you said, the broader markets near the session lows. coming up on today's who, we'll speak with eric rosengren on the back of that congressional testimony from chair powell and secretary mnuchin. we'll get his read on the economy and whether we've reached a trough in the data plus, we'll speak exclusively with jim fiterling as the company releases a return to work playbook but let's focus in on the big stories we're watch ing today. mike is tracking the market action courtney has highlights from retail earnings. mike, you and the market just selling you have a bit, but of course only lightly following yesterday's big rally.

>> actually today is i think the narrowest range intraday for the s&p 500 in three months and by the way, three months to the day was the peak of the market the s&p did top on february 19th we're down about 13% since then, but sbles interestingly on a 12-month labasis, it's up did want to take a look at the field position of the s&p on a longer term basis. this goes back ten years and marked here are the areas where the index was approaching its 200 day moving average from below. o after a big sell off, trying to make a comeback and those circled areas show that usually in this instance, you've had little friction. a little chop iping around that 200 day average. why is it relevant now it's about s&p 3000 at the moment, so 1 to 2% up from here. you had one exception. in 2011, 2015, 2016, had some resistance at this area.

stalled out or backed off from there. also in late 2018 but interestingly in the v bottom from the december 28 low, really didn't slow it down in january of 2019. did a double touch kind of a tutor step on the way up, b but that was it. so no real hard and fast rule here and we have a downward sloping 200 day average, but auch it's just an occasion for the market to gather itself and see it has enough to get much past here, guys. >> i guess regardless of the overall levels of the market you're just touching on for today, what we're seeing again is that rotation we saw yesterday which allowed the market to rally and for once saw the s&p 500 equal weight ahead of the broader s&p it saw energy and banks finally outperform the rest of the market that has not held once again for more than a session or two when ever it does occur >> right today that's not the story certainly not a clear way. you have a very business nasdaq stocks leading again but also it's little more of a

mixed bag so it's not as if only those stocks are working you have some housing and travel related names that are at the top of the performance and also i think it's somewhat significant that yesterday, you had so much outperformance by the equal weighted s&p and value sectors. you've got given back all of that outperformance on a one day basis. so these things don't go in a straight line, but those are the relationships to monitor now, to figure out the character of this market and what it seems to be handicapping about the economy >> in terms of the move, if we can bring up the banks intraday or wells fargo, as we touched the lows a @ start of the show, it was a noticeable plleg down the banks as you can see which pulled the rest of the market with it so the banks now at the bottom of the pile in terms of sector performance not sure what that was triggered by but to my point earlier, banks not outperforming today as they were yesterday, sara. >> yes

treasuries are strong. yields are lower could be one reason why let's drill down on the retail sector number of big companies r reporting results earlier today. courtney has been tracking all of it for us what are the high lights, courtney >> walmart did beat across the board. u.s. comparable sales up 10% net u.s. commerce up 74% but the world's largest retailer did have 9 o $0 million in covid related spending a lot of that going to employee pay for extra bonuses and sanitation it's kind of like three quarters into one with the variability of consumer spend and behavior. walmart is shutting down jet.com. doesn't expect a material writedown as a result even though it paid $3.4 billion for it four years ago and home depot putting up really strong sales comps up more than %

850 million here it did miss profit by a wide margin and home depot did see three different phases of consumer spending including a stock up period but then a bit of a pullback before returning to more of a normal trend. now home depot isn't offering guidance, but the chief financial officer told me in downturns that are not housing led over our history, we have seen pretty steady demand for home improvement and unlike walmart and home depot, you've got kohl's with the entire fleet closed for half the quarter. its earnings loss was much larger than expect net sales down more than 43% half of its stores have reopened in the early days, the ceo says they're seeing about 50 to 60% of normal productivity but says that the acceleration they saw online during the closures, that has continued back over to you

>> one sort of fact that i pulled out of some of the results this i thought was interesting was the ticket size increasing people spending more at home e depot and walmart. at home depot, tickets increased 11%. walmart, 16.5% increase. just wondering how sustainable that is. p. >> i don't know that it's that sustainable because a lot of the behavior that at least the executives are trying to explain was that as the quarter wore on and as the shelter in place measures became common place, when hoppers went out to those essential se ril taers, they bought what they would to and didn't want to come back again i think that's part of the reason these retailers are pulling their guidance because things were just so varied throughout the quarters and some places really strong, it was april for walmart i believe, comp sales in the u.s. were up 15%. february was good, but up 3.8%

so a lot of variability within these quarters t. >> though i to wonder if the changing habits toward pick up and online makes you spend differe differently. maybe more impulse buying. any way, it's something we'll continue to look at. thank you and we'll talk b abab it later much or on walmart we'll talk the to bill simon, the former u.s. ceo of walmart federal reserve jerome powell and steven mnuchin testifying on cares act today. powell saying despite the $2 trillion in relief, there still seems to be a sense of uncertainty. >> this is the biggest response by congress ever and theest and biggest from us and still this is the biggest shock we've seen in living memory and the question looms in the air of is it enough. >> yeah, chief economist at goldman sachs joins us now to discuss that and much more great to see you as always always my first question actually relates to what chair powell

said and has said recently that he's not really considering negative rates because you think there's a higher chance of that than perhaps he's letting on >> well slightly i think the you know the economy is in a very deep recession. and the there could still be a need for significantly more stimulus i think the fed has made it very clear that from the first instance, that would come through additional asset purchases and at the moment, they're certainly not considering negative rates and i don't think probablity is high over the next year or so that they're going to get there but i also wouldn't rule it out completely because it really does depend on how the economy evolves and clearly, the fed's very concerned about the path of the economy and that's come up very clearly from the various appearances that we've seen from the chair and other fed

officials. so i certainly, it's r very far from our baseline expectation but i wouldn't rule it out completely either. >> the treasury secretary sounded optimistic that we're going to see a and a half f r recovery of some kind. what are you seeing in the reopening data from the states as far as economic activity and can we get that kind of bounce >> our expectation is that we will see a recovery in the second half. and the i think there's a decent amount of evidence that we've probably seen the low point on productivity if you lock ok at e of the high frequency numbers. april b probably was the low i think may and june are probably going to show some pick up and in the third quarter, it's going to show up in the quarterly numbers. we're seeing some recovery across a range of places it's not just the places that

have had reopened, but and obviously that reopening is very cautious and partial but in general, activity is starting to come off of the bottom >> does that mean no further stimulus is needed >> i think additional fiscal stimulus is needed and we're building it in in particular, we think that there will be money for state and local governments and we're expegting more money to go to the household sector, via a partial extension of the extra unemployment benefits and also probably another round of rebates. so that is baked into our expectations into what a lot of markets are expecting. that would at the margin at least a reason to become less optimistic about the reason we

can see a recovery we're say suming it, too >> what kind of expectations do markets have at this point for the federal reserve in terms of potential further action it sounded like investors were happy to hear from jay powell this weekend that they had more ammuniti ammunition >> i don't think there's a big expectation of a large additional stimulus in the near term they're continuing to buy assets, the pace of assets and purchases has come down. but they're going to continue with that. they're going to be implementing the facilities that have been announced. i think all of that will need to happen i think beyond that, what is important is that markets know that if the economy or the markets were to take another major turn for the worst, that there's more that they could do and i think the chair was very clear about the idea that

they're not out of am nix and fwen in the first instance, if you did need accommodation, it would come through more asset purchas purchases, maybe bigger credit facilities than what they've announced. negative rates something they're not considering at the moment. that's you know, a bit more distant. it's a possiblility, pu but it's more about the asset purchases >> where do you stand at how strong and effective the rebound will be in the u.s. compared to relative other developed economies. it's jumped significantly. will that have a long lasting effect or do you think that is temporary regardless of how different country have enacted their stimulus measure sns. >> as far as when we look at the shape of recovery in the different places, the shape of the downturn and the shape of the recovery, what strikes me most is is how similar it is between the different economies.

oftentimes of what we've seen already. very sharp downturn in activity across pretty much all of the advanced economies and in terms of what we're expecting as we go into q3. sharp, but inkcomplete rebound i the and a half of the year and i don't think that's dramatically different between say the u.s. and europe or canada or what have yu, where we have much bigger differences is in terms of labor market institutions and the extent to which this dunn turn shows up in unemployment versus short-term work steams as in germany and other places and europe so that does look quite different. i think the u.s. model, so far, the good news had been most of the layoffs rb temporary and work is expected to go back to the old place f of work, the

risk is that if it lasts longer, some of these employer employee relationships are severed and it becomes more difficult to achieve employment recovery. we have an employment recovery, but it's only a partial one. we think that you know the unemployment rate even by 2021 or 2022 is still going to be significantly higher than how we got into this crisis >> good to check in with you thank you for joining us >> thank you >> chief economist goldman sachs. want to point out a story from stat news. getting a torre potentially moving stocks. the headline vaccine experts say ma doderna didn't produce data critical to the covid-19 vaccine, saying the experts they spoke with said that the data moderna put out proved ed very little information there's the s&p 500. maybe hit moderna hairs hard shd

harder remember, they had very good news yesterday drove the entire market. dow finished up more than 900 points moderna up more than 20% after announcing they're going to start phase three trials in july, sooner than expected, this pours a little bit of cold watt eer on that whole idea something actually we got at with dr. gottlieb that there's still a long road ahead to get this vaccine into the hands of and bodies of people in other words, they've still got a long road. showed good results from eight different people who received the antibodies some neutralizing, all good news, but looks like some of the information, there's really no way to know how impressive or not the vaccine may be so throwing in a little question, a little doubt in there. >> based on the tat news report and had more temporary effect on the broader market as you said seemingly more persistent effect

on the moderna share price the other to rehighlight is after yesterday's stropg boustrg bounce, they announced they'll be raising capital making most of the performance, roughly half has been given up. still ahead, the path forward for manufacturing. the workplace playbook how the company plans to get back the to business and protect its workers thheeo atnduch more still to come on the closing bell. motorcycle riders love the open road.

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stocks taking a breather after a massive rally. the nasdaq is the notable outperformer now only 5% away from all time highs. joining us now, sebastian page how are you guys positioned when it comes to stocks after this more than 30% rise from the s&p from the bottom? >> you know, we're close to neutral between stocks and bonds. we think now is a good time to be diversified between the two major asset. >> clay: classes we're also diversifying between value and growth stocks. generally speaking, there's a perception that the market is pricing in a v shaped recovery that stocks have gotten b b

ahead of themselves. i don't think that's the case. i think expectations are actually got low if you look at sentiment indicators and also if you look at the relative performance between value and growth stocks. right. if we expected a v shaped recovery on the virus in particular over the course of the pandemic, you would see a typical recovery where value stocks outperform growth stocks but with the exception of yesterday, you're not really seeing that, so because expectations are low and you see good news such as the moderna news yesterday, you will see value stocks outperform. so it's a tricky situation because growth stocks are ahead of value stocks by about 27% on a cumulative total return basis over the last 12 months and 55% over the last three years. but at the same time, those are at the secular winners and part of that return differential is justified by better fundamentals.

so really now is the time to be diversified between value and growth and keep exposure to growth outside in the u.s. will keep a balance right on the strategic allocation between both and in the u.s., we have a slight overweight to growth stock so that's how we're positioned at the moment >> where do you stand on treasure aries >> rates are close to an all time low treasuries are expensive and there's a need for safety and the t fact that treasuries are so expensive globally and in the u.s. as well, pushes investors towards risk assets. so does that mean we expect rates to rise in not necessarily. right. because we're seeing a process where we're loading up on debt even more than we have before. twice the size of the total stimulus debt we got for 2008 and qes one, two and three included all together. so that means that our central

scenario is one of the somewhat of a japanification if you h we'll continue to be in a low growth, low rate, low inflation requirement and ultimately, when things get really bad and we're in a period where there's a lot of uncertainty, treasuries still provide a hedge, but they're more expensive that stocks >> thanks so much for joining us s&p 500 just below the floot flatt line with what, 37 minutes left to trade. break iing news on visa kate has the story for us. hey, kate. >> hey, wilf visa's ceo just posting that he will allow employees to work remotely through the end of this kalcallender year saying workin remotely is the right thing to do for their employees and families visa has 20,000 employees. companies based in san francisco. this is the latest company to extend the deadline. we had google and facebook also

e extending to the end of the year and square and twitter are the only companies so far they have said they'll work from home permanently, but again, visa working, employees working from home through the end of this year guys, back to you. >> thanks so much for that till ahead, we'll ask jerry moran who sits on the senate banking committee, whether republicans and democrats will be able to agree on a new round of stimulus. as we head the break, here's a check on bonds we'll be right back. (soft music)

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welcome back down b about a third of a

percent on the s&p let's check some individual market movers. shares of spotify surging after a announcing an exclusive podcast deal part of spotify's push to make podcasting a core focus. they struck deals with president obama's production company and comedian amy schumer it's up 9.5% take a look at these three stocks moving after facebook announced shops. it's partnering with third party services like shopi fy but shares from etsy under pressure down about 1.5%. both up over 2% today. time now for a coronavirus update with sue herera hi, sue. >> hello and good afternoon, everyone president trump is dismissing krit isra m to take hydroxy

hydroxychloroquine and despite the fda's warning that it can cause heart problems and shouldn't be useded outside of a hospital setting >> people are going to have to make up their own mind plus it doesn't hurt people. it's been out on the market for 60 or 65 years for malaria, lupus and other things ch i think it gives you an additional level of safety. >> and today, the f drda says taking it is ultimately a choice made by patients and their doctors. and the widow of john glenn has died of coronavirus complications at the age of 100. you can go to cnbc.com to learn more b about her work as an advocate for the treatment of communication disorderers. you a back to you. >> thanks so much for that shares of moderna dipping this hour after report questioning the vaccine results r reported yesterday. the headline vaccine experts say they didn't produce data critical to assessing the vaccine. joinings now on the phone is the

reporter behind the story. good afternoon to you. thanks voch for joining us and the key part of this article which i just had to read through quickly is that you don'td enouo as to people outright misinterpreting the information that was released. >> right no one is saying that this vaccine doesn't work that hasn't been proven yet one way or another it's just they release d a very little bit of information yesterday. mostly words, not in numbers scientists like to assess numbers, and they didn't give anybody that kind of, enough data effectively to be able to say if the vaccine is working. >> but they did move up the timeline, right in for july for thaz three trial in they said th eight patients had antibodies. some were neutralizing antibodies there was some specific

information in there that led to the hope, wasn't there >> yes, of course. and you know, there is reason to be let me be clear my story does not say this vaccine doesn't work it says that there isn't enough information to assess whether or not. it's just too early to assess how well it is working one of the things the company did was they compared the antibody level rises in the people who got the vaccine to antibodies in people who had previously had coronavirus infection. to see if they were similar. but they wouldn't release the data upon which they were using. the comparative data so people were looking at this saying okay, could be, maybe, but you need to release more data for anybody to be able to be certain of what is going on here

>> based on the experts you're talking to on vaccines, helen, is it your sense that they're releasing say less data that you would normally get from a company at this stage of a vaccine because there's this massive rush for someone to come up with something to help fight covid-19 >> there is a rush and everybody is is trying to compress the timelines in every way possible to do safe ly i think part oof the issue is that typically, scientists are used to assessing data that is presented in studies either publishing to peer review journals or preprint service and they can take a look at the tables and see the numbers and see what's going on. the company did identify press releases and so there really isn't a lot of data here

>> well thank you for comie ingn to point it out. moderna shares down 9.5% after the break, boston fed president eric rosengren joining us to discuss today's key congressional testimony from chair jay powell and secretary mnuchin, plus, economic signs he's seeing from his dtrt isic and his thoughts on reopening. that's next. every financial plan needs a cfp® professional --

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dow down 184 breaking news from president trump. kayla has more >> in a cabinet meeting at the

white house moments ago, president trump said that he will sign an executive order instructing federal agencies to identify more regulations to waive, suspend or eliminate all together with all of his agency heads sit ng front of him, he said he wants to continue his push of regulation cutting to try to gin up more economic growth this is something white house officials had been discussing behind the scenes for weeks and it was unclear exactly what form this nebulous discussion about regulation cutting and searching for economic growth would take, but president trump now says it will be an executive order he'll sign further instructing agencies to cut regular laces. back to you. >> thank you speaking with the new england council today, our next guest expects the unemployment rate to remain at double digits even by the end of the year. steve liesman has a special guest, eric rosengren.

steve, take it away. >> thank you very much, sara i'm joined by president rosengren. thanks for joining us. maybe worthwhile to point out this interview was scheduled months ago it was going to be in person i was going to be in boston but things have changed a little bit, huh >> things have definitely changed. boston is one of the centers of the contagion. >> let's talk about your comments sara just alluded to. sounds like you're concerned that some of this reopening is premature. >> well, i think we have to consider carefully how this pandemic is affect iing the economy. and while one of the issues is certainly allowing businesses to open up, an important component is not only being open, but also to have the ability to have customers come in and feel comfortable in that setting. so when you think about retail trade, when you think b about getting on a plane, when you think about going into a restaurant, you have to be sure

that you're not going to be unsafe by going into those situations so that's not a matter of whether business is open, it's a matter of whether there's going to be sufficient demand until people are comfortable that community spread has been reduced so that they can start doing those activities and i would highlight those activities all involve a lot of people. so when you look at retail trade, when you look at restaurants, they employ an awful lot of people in the economy, so to get back to full employment, we need people confident that they can go to those kind of places and be safe >> does that concern extend to worries about potential second wave and how does that figure into your outlook? >> so i certainly hope there's not a second wave. i think if we open up too quickly and don't do it smartly, we run the risk that the economy will be worse off and the public health will be worse off so that it's not an on off

button you don't have to be completely shut down or open. the important thing is to stop the community spread of disease. tha going t's going to vary akr county tru, but it's important to focus on the data before we open up too much >> you're very busy now and about to get a whole lot buzzier. the boston fed e is the point back on the main street lending program. can you tell us when it will open >> we expect it to open before the end of the month and it's something that we've been working on quite diligently for the last couple of weeks people are working nights and weekends to try to get it up as soon as we can >> so this is a $600 billion program that offers four year loans with one year deferral how many loans are you prepared to give? as i understand it, there are thousands and thousands of companies that qualify for these

loans between 500 and 15,000 employees. do you have enough money >> i think we will have enough money. so it remains to be scene exactly what the demand for this program is the program's designed for businesses that were healthy at the end of the year but have suffered a severe shock as a result of the pandemic to the extent they meet that criteria, there may be a significant demand we'll have to wait and see, but i think we have enough capacity. one of the issues with opening this facility is we had to have the able ility to reach out to literally thousands of banks and be able to take thousands of different kinds of lopans and be able to pring them into our special purpose vehicle, bring them to the boston fed and provide the financing, so as you know, banks have to be available to provide depending on the program between 5 and 15% of the state of the loan and the rest

is being met by the federal reserve. >> eric, sara said your unemployment rate forecast is in the double digits. i think she was being kind or polite as she often isment you have a 20%, right? it is double digits, but really high i assume that's the peak when do we reach that peak and what happens by the end of the year unemployment rate in your forecast >> well steve, you know that the april forecast was 18.7% for the unemployment rate, but there was also a significant component that looked like it might have been errors in how the data was collected where people said they were employed, but had not been at work that week. so i think we were all ready relativically close to 20%. i don't think we can be too precise at this point. there are a lot of things going on in the economy that make assessing the unemployment rate

difficult. there's a difference between unemployment that is temporary and created by a tate mandated shutdown and an employment rate that has caused by permanent or more permanent unemployment rate which would occur in the business failed or if it had lack of demand for its products. is so what we're trying to do is make sure that doesn't happen so i'm expecting we're going going to continue to have bad news on the labor market over the next couple of months then we'll start seeing a pick up but a pick up from a low base that's reflecting the stoppage of the economy in order to a deal with the pandemic so my expectation is that we will still have double digits by the end of the year which means it will be much less than 20% but still significantly higher than a normal economy would be >> and eric, i just want to wrap up where we started with your views on the outlook it seems like what you're seeing is if consumers lack the confidence to go back to restaurants, back to concert,

back to things that are substantial parts of the economy, that it's hard for you to say we're going to be at full steam ahead or firing on all cylinders even by the end of the year >> 20% of the economy, 20% of the jobs are industries such as retail, trade and restaurants. so if you're not comfortable going into restaurants and stores, i think an important consideration is what the age distribution is. so when you look at who goes on travel, who goes out to restaurants, between 45 and 55% of those kinds of services are puchlsed by in ages between 50 and 79 so those people have to be comfortable that when they go out, they're going to be safe. so if you want restaurants and retailers to fully hire back the people that they had as of february, then customers have to

be coming back to restaurants, hotels and retail chains so i think it's really important to get the public health right if we don't get it right, it's going to be completely imb possible for us to get the economy right. >> eric, i want to thank you for joining us and hopefully next time we do this, it can be in boston or in person some other place. >> that would be great, steve. >> thanks. sara, back to you. i don't know, you've been doing this for a long time, too. how long it's been since you think you were going to be talking to a fed official about pandemics and closures and public health issues >> not in my wildest dreams. no i think janet yellen from my bedroom to her living room was one of the wilder experiences. hearing president rosengren there, he was one of the ones that voted against the last fed cut when we were not in this pandemic and were not in this crisis because he didn't think

the economy needed it. how cautious he sounds now and just how guarded you know some of these fed presidents are when it comes to calling a quick recovery i'm wondering where he fits on the spectrum of the fed voices and voters now because they don't sound as hopeful than the message we're getting from the administration and even other economists >>ed a key theme. which is tracking of the comments by fed officials. they are much more cautious, more concerned about the risk to the outlook. they, i think they felt a bit like a market had become unhinged from the outlook of this virus, their concern, powell said it several times last wednesday about the possibility of a second wave rosengren talked about it here and he's very strong, when he sees ris b ks coming forward, he

did not want to cut swres rates last time because he was concerned about the risk of too much corporate lending, which by the way, we're reaping the ills of that right now in that the fed has come and backstop. i believe it's trying to send a message to congress and markets which is to embrace the uncertainty that surrounds this virus. >> all right thanks for bringing up the interview. it was great tooef liesman and eric this is the last commercial break we are going to take before the closing bell. up next, we'll bring you uninterrupted coverage stick with us on closing bell. there are untold hours of careful construction... infinite "what ifs?" and contingency plans. creating funds that help target gaps in client portfolios. tap untapped potential. and strengthen confidence in you. flexshares. powered by over a century of investment expertise before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com

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she only eats wild caught. [cash register beeps] uh, i need a price check on honey. don't get mad. get e*trade and get more than just trading. investing. banking. guidance. we've got 12 minutes left in the trading day. we're now in the closing bell market zone. you just saw him, mike, here to

break down these crucial moments of the trading day and today, we've got jpmorgan private banks anastasia with us. the dow is lower down 278 points. 280 points session lows here. there's the nasdaq remains positive as tech has been an outperformer, losing some gains as we head into the close. just wonderer whag you make of this action here, mike, in the final hour of trade. it's been a little bearish was it the stat news article on moderna? >> yeah k it seemed like that news definitely did knock the market back a bit. it was just kind of treading water before that, retaining most of yesterday's rally, if not all and now we're giving back about a fifth of what was gained yesterday so it shows you a little bit what the drivers have been in terms of that last little bit of excitement yesterday on this prospect of a vaccine and a reopening. i will say we're also as i was pointing out yesterday, just stretched up to the top end of the trading range.

if we close down more than half a percent, let's see if people turn bearish and say you know what, that was it, we tried three times to get these levels, we couldn't do it. that's been the day-to-day kind of tact kl conversation. >> let's hit southwest giving home to airline investors today. phil >> southwest saying what we're hear iing from other airlines tt there seems to be b a gradual increase in the number of customers and while nobody is is saying this is a snap back in demand, it's an encouraging sign more specifically, when you look at shares of southwest, it's saying its bookings in may are now outpacing cancellations. for april and march, that have not the case more cancellations than bookings as of right now, they're at $25 million a day. that's an improvement from where they were. we heard similar comments from other airlines today at investor

conference delta says there's an increase in leez yur leez you are bookings and speaking of united, you don't want to miss this. this is a cnbc squak box exclusive. tomorrow morning at 8:30, we'll be talking to scott kirby. we'll talk to him about the state f f business, the airline industry no shortage of topics, guys. doept wa don't want to miss this tomorrow morning on squawk box. >> we'll be tuning in. thank you very much. anastas anastasia. obviously a stock story for southwest today, but wonder if it tells you anything broader about a recovery they're starting to see ticket sales going in the right direction after negative deb mohannad. how do you read it >> ipg the anchor today is is actually pointing to the fact that you can have two types of stocks do okay in the environment. the secular winners that we're so accustomed to in tech and health care but then you're

starting to see a pick up in booking flights and going out to restaurants and malls and stores so if you look at the performance today, you have seen the basket of covid understood perfo underperformers actually outperform on the day. they were up almost 1% of one point. so i do think there is more to this trend because if kru look at the last couple of months, the underperformers have underperformed by 56%. so as they start to come back, they'll catch up and if you think about market positioning, people are not poxed for this rally and you could see a chase, a rerating, but what do you chase? tech and health care or some of these stocks down 56% from february so i think in the near term, it's the latter. >> that said, mike, jux want to bring you back in before housing r starts because the market's at

the session lows just down 350 points on the dow and it is those underperform er that are loading us lower still. the banks for example down 3.4%. wells fargo down 5.6%. so ma doderna may have been the stat news angle moderna vaccine may have been the spark, but a lot of stuff selling off in reaction to it >> right so those are the stuff, that's the stuff that's sort of in faster money or weaker hands after yesterday. remember, small caps were up something like 6% yesterday. so you did have a lot of quick pops giving those back. i don't want to draw real broad conclusions, but walmart is is off the hi off the highs for the day and that's been one of the leadership stocks. you've got to continue to watch and again, we did have that late april high on that day when remdesivir looked like it had a great trial so i think you sometimes overshoot a little bit in the very, short-term on of

the disease relateded enthusiasm >> housing starts came out and fell to the lowest levels since 2015 diana looks at the impact op the builders >> yeah, and the stocks of the builders are still up on the day. as some called april the bottom to housing starts. the home construction etf up just barely led by names like le nared and taylor morrison. total sales fell 30%, but biltding permits, which are an indicator of future construction b paint a brighter picture estimates were for a a 27% drop and large builders on calls have noted higher demand from consumers in just the last three or four weeks. wilf >> thanks so much for that kai sy know stocks rallying today. contessa has those details for us >> all right, the regionals are getting the love today the first to reopen. you've got the casinos in

louisiana that opened yesterday with strong first day demand some of these customers reportedly drove hours then waited if line to gamble occupancy in louisiana is is limited to 25% and new orleans still is not allowing casinos to open look at the two day chart here you've got eldorado and penn up about 25% and boyd gaming says it will reopen three louisiana properties tomorrow then thursday, mississippi allows kai issy knows to reopen with 3550% capaci capacity even red rock resorts is benefitting though casinos there are still close ed but it's the anticipation that the locals will be anxious to get back to playing. take one last look here at the game -- [ inaudible

>> contessa -- breaking up a little bit but we got the point. nice move in the casino stocks today. wanted to hit consumer staples for you as well. weaker today but they've been a good bet for investors during the pandemic crisis. not all staple stocks are created equally. look at coke versus pepsi. one of the age old corporate rivalries. the price divergence in the market is the widest it's been in decades look at that right now the highest it's been since back to 2000. pep issy is down 3% so far this year coke down 20%. big outperformance from pepsi. coke has more exposure to restaurants, bars, stadiums, the away from home business. pepsi doesn't break it out, but it's a lot less than that. pepsi has an edge with snags while coca-cola is only in beverages. it has quaker, too, which has been a drag prior to this crisis

but with everybody eating breakfast at home, quaker's doing well, too. and international. coke is more exposed to volatility globally where fiscal responses haven't been as strong these challenges aren't going away r for coca-cola perhaps another reason analysts have recommended pepsi mike, just sbresing point here. usually the two sort of march hand in hand even though pepsi has outperformed on a long-term basis. >> pepsi now has a higher forward price earnings multiple with the only time in the last 15 years except for a brief period in late 2015 so the market is kind of pricing in better outlook but you have to see if that relationship is going to maybe reverse down the road but also a 3% dividend yield. >> yeah. good point what else are you seeing in the

market internals here as we go two and a half minutes into the close? >> slippage as you might expect. if you look at the new york stock exchange, much more volume to the downside. more break even on this measure earlier in the day, but that has slid a bit however, new highs versus lows on the nasdaq in favor of new high but it's a fair number of new 52-week highs. nasdaq is up 18 or 19% at the moment, the volatility index has struggled to really get too much below the 30 level. it's been normalizing, but it's going to be kind of day-to-day as to whether it can really drain away back toward what we would consider more normal levels >> mike, we have another day where the s&p 500 equal weight is outperforming the broader market even if it's not as positive a market as yesterday >> yeah, little bit. having the field come back against the favorite so to speak, but there's a lot of ground to make up though that relationship has gotten

very skewed over the course of the past few months. >> we've got just over a minute left of the session as we stand. we are down 0.9% on the s&p 500. dow's down 1.4 350 points right at the session lows as we approach the close russell's down 1.8%. two big factors in the last hour of trade hurt market sentiment one was the stat news angle on the moderna vaccine. perhaps not as positive as the market interpreted yesterday and a bearish interview between steve liesman and eric rosengren. 11 out of 11 consumer discretionary had been holding on to green. real estate, financials and energy towards the bottom so the banks, the energy companies which have been the laggards here today with the once suffering. down 3.4% today though over the two sessions of this week still higher by 4.3%

again, important to remember how strong yesterday's gains were and put into context today's sell off even though today we're seeing quite a number of plays in contrast to a number of plays. we are lower by 1% on the s&p 500. 1.5% session lows, 280 points on the dow and half a percent on the nasdaq >> first down day for stocks in the last three sessions. welcome back if you're just joining us, i'm sara along with wilfred frost. take a look at how we finished up the day on wall street. weak close there stocks took a tumble in the final hour and final minutes of trade. the dow settled lower by 390 points we were in a tight range, down less than 220 points for most of the day. down 1 is.5% s&p 500 close iing lower. it's still up 2% for the week thanks to the giant rally

yesterday, but did give back a percent today as you can see every sector did close lower consumer discretionary and tech just popping lower at the close. they had remained higher all day. check out the nasdaq which had outperformed, continued to outperform, but did close lower after being positive most of the day. the russell 2000 index of small caps down more than the rest down 2% by the small names like banks and other small caps that have been down double digits for the year coming up, an exclusive interview with dow chairman and ceo. we're going to ask him whether his company's reopening plan could be a template for the broader manufacturing industry l they're out with a new 53-page report on how they're going the reopen joining us to talk about the market first, anastasia still with us. first though, to you, mike, on the give back we saw in the markets after yesterday's massive rally. >> we had a 3% plus gain yesterday. when you have a big gain like that on a monday, it isn't that unusual to give some back so you

have to say you give back about a third of it today, but the way it happened on a headline driven move and also with the s&p right at levels that people were kind of wondering if they were going to be a little bit of a ceiling, i think it shows you some fragile sentiment. also treasury yields, they were helpful yesterday by rising ten-year up toward three quarters of one percent. they were backing off all day and didn't give you any help if you thought this economy was going to need another round of big fiscal help. not sure the senate hearings with jay powell and futumnuchine you more confident that was likely to happen >> let's get to bob for a look at today's big stock movers which changed in that final hour, bob. >> kind of sideways for a good part of the day then we had news in the middle of the dayment hard to figure out what to make of this, that the moderna vaccine might not be as effective as people thought. it took some wind out of the

sails of the market so all of the ro opening stocks just kind of fell apart. look at avis c-a-r is the symbol. much of the market experienced that, but all of the travel and leez yur stocks did then just general disappointment about the lack of follow through yesterday. the bank stocks particularly even before this discussions about the moderna vaccine came out in the day, bank stocks were weak so all of the stuff that had nice rallies yesterday, 4, 5, 6% in companies like fifth third and regions financial all just kind of fell apart again today. no follow through on the second day. that's disappointing for the market same situation with the energy stocks remember yesterday i put up 4, 5, 6, 7, 8% gains in all f the big oil xwacompanies. nothing happened even before the

moderna discussion chevron, exxon and most of the big tstocks were on the weak side instead, more interest no goin . a new high in some of these names. hit a new multiyear high today so kind of disappointing even before the middle of day but certainly close near the lows. back to you. >> thanks so much for that anastasia, when you see it kind of fall apart like that, to bob's point, that we can't see two days in a row, does it make you kind of lose faith that that will happen at all until we get some kind of game changing vaccine or game changing reopening o f tf the economy? >> it doesn't and there's many ways to look at market internals and we have all these different factors we look at and before the moderna news, we've seen you had both the work from home basket, which is tech, and you also had the covid

underperformers basket that actually hang in there so i do think some of these cyclical stocks that ended up underperforming at the end of the day are really looking to rally as the economy recovers. now i want to comment on the moderna news and the report this came out it is perfectly reasonable for us to see a bit of a give back from yesterday's positivity because the reality is this is is a phase one trial what typically happens is in phase one, we assign a ten, maybe 15 probability of success and only phase two do we go up to 35 or 40% and phase three is 70 pereira, so this is very early stage and i think the markets really need to appreciate that. so i understand the give back but at the same time, you say do i lose faith, lose hope that we're going to find a treatment? absolutely not we have 100 vaccines under investigation and they're not all going to have data readouts in the next week or two weeks

but over the kcoming months, i suspect we'll see positive news on that front and that will once again help some of the cyclicals. >> that was my question, mike, about the cyclicals. which group are you watching to get the read on how optimistic this market is about the economy's prospects, the vaccine on a day like we saw yesterday where you saw transports and industrials and all those groups that really benefit. who are you watching which stock? >> those, i would also watch the consumer finance stocks. you know if you took discover financial or capital one, very much exposed to kind of the credit card business, they've been cut in half obviously, the broader bank issue has been there, too, but i look at auto, consumer finance, some retail and travel related just as a fix on exactly what the market is is trying to hint at and they're all down tremendously still so we're still talk about bumping along the recent lows, trying to get some traction and maybe see if there could be an

inflection nobody should expect any kind of to be clean. it's fits and starts the gears slip all the time when you get these. i'm not sure you want to have tremendous conviction one way or the other it's going to happen they're all right for a median type move to the upside. whether or not the companies just rest or backslide or even participa tis tate in further u. >> wells fargo is down 55% year to date. another one that's been a clear kind of bellwether for that sentiment. american express has held up relatively welcome paired to some of the other credit card companies. either way, back to the big underperformers, is valuation and dividend yield, are they a support to these shares or is it a technical market sentiment

>> i think it's, it's certainly technical or fund throw relateded in its positioning, but i think it's about where do they trade relative to some reasonable normalized level. it's not about 2020 earnings necessarily. it's about kind of the core earnings power book value that really matters and it's the time to a return to normal is the big metric you know, obviously we can all talk about how fast the economy's going the grow, but how long do we have to you know, sort of absorb the lack of revenues or losses or risks further kind of debt rating degradation before we get to normal if all those things are fitting in, but in the meantime, people are very lightly positioned in the deep value stocks. >> eric rosengren came on the show last hour and here was his outlook for the economy and unemployment >> i'm expegting that pechting

that wee going to continue to have bad news on the labor market over the next couple of months then we're going to start seeing a pick up, but it's a pick up from a low base that's reflect iing the stoppage of th economy and a deal with the pandemic so my expectation is that we'll still have double digits by the end of the year, which means it will be b much less than 20%, but still significantly higher than a normal economy would be >> anastasia, clearly quite a down beat outlook, whether or not it directly impacted market sentiment or not do you get worried that the bounce in economic activity will be hindered more by the fact we've seen unemployment rise so much already or do you think it can fall as quickly as it's risen? >> i think his comments were spot on in that we're going to see a very gradual and slow pick up in the physical side of the economy. because what's happened over the last two months, you've heard the ceo of microsoft say this. you had two years of dingital

trans forr information take place in the last two months so as much activity as possible is is being pushed online and that's benefitting the tech companies but until we feel comfortable turning up at tors and restaurants, we may not do that at the prior levels of activity so short-term, i think we have this nice pick up of activity, but we look back in the middle of summer, we'll find ourselves having levels of economic activity still well below seasonal levels. i think all the investment taking place now in technology unfortunately it is displacing workers. and again, until we feel comfortable turning up in public places, you just not going to get back to 100% precrisis revenue levellevels >> the vaccine tidbits of news that we get and treatment news is so important. chief economist at goldman sachs

also joined us last hour and he said that the market is banking on more stimulus from fiscal side of things whether it's state and local government assistance and other types of assistance and that it would be a disappointment if we weren't to get that. i just thought that was notable because i haven't heard that from that many other market participants and i know you've been saying that you think so far the market telling you what we've got will bridge the gap to the reopening. >> well the market is indicate wg the recent strength it's willing to bet that perhaps it could be enough but also if it's fot enough, there's going to be more behind it in other words, every time we've gotten a round of stimulus or support during this whole phase, the market has not had to act up and throw a tantrum to get it. and so i do think that's the premise right now. so it's not so much that i think in the very specific way there's a fully formed idea of what the next stimulus measures are but that in general, the backstop will be there in other words, i think mostly

that the federal government -- states to go under >> yeah. did you get anything from powell and mnuchin today in terms of news that moved the market? >> not really although powell is very, very careful not to seem to be explicitly endorsing this sort of aggressive fiscal measures but not sure that was a surprise based on you know what he would normally want to do in trying to leave it to congress >> all right anastasia, thank you for being with us for the market zone. appreciate it. up next, we'll ask former walmart ceo about whether the retail giant will be able to continue seeing a surge in sales as many of its rivals tart to reopen their stores off of strong salesumrs nbe reported today. back in just 90 seconds.

urban outfitters numbers are out. >> this is a messay quarter. they're reporting a loss of 1.41 the street had been looking for a loss of 29 cents so a much larger than expected loss here urban's revenues also missing estimates at $588 million compared to $627 million comparable sales were down 28% now remember this of course is a nonessential retailer so stores were closed for about half the quarter. the quarter ended here on april

30th so a pretty messy report here. it says that gross profit do dollars decreased almost 96% from just under $12 million to 269 million. with the gross margin falling to 2% from 31%. back over to you >> wow big slide there. thanks very much for that. shares of walmart by the way also slid after reporting impressive earnings this morning. they posted $1.3 billion in revenue, but $900 million in covid-19 related expenses. the shares opened higher by 3 or 4%, but closed lore. joining us for more is bill simon. thanks for joining us. we'll get into the walmart specific stuff in a moment but what did you make of what we saw in terms of the underlying sales growth they saw in the individual months from the start of the quarter into this

quarter? >> yeah, walmart i think it tracked the virus. i think that's really what happened if you think about it. their february number was pretty good march really took off as things stocked up, the sort of once ing march with a dip in april and another infusion of cash with the stimulus checks and pick up back at the end of april >> how much of it do you think is sustainable, bill in other words, how much are behaviors changing where walmart is can really capitalize on this new behavior >> i really don't think you can infer a lot out of it other than walmart did just a terrific job in a very, very difficult situation. let's pray that we're not locked down again and walmart's one of only a few retailers open and

let's pray we don't have to continue to issue stimulus checks to people because that drove a lot of the sales both of those two things walmart like i said did a wonderful job, but i wouldn't try to infer too much into or read too much into what happened other than they did a great job and i do think that there will be an acceleration in digital online spending. >> with that said, they're shutting down jet.com com, bill. what do you make of that >> well, you know, it's an expep pensive acquisition to shout down in under five years, but as doug said, i think they got what they needed to out of it to boost their walmart.com side i'll keep an eye on mark i think his obligation is going to come to an end at the five-year mark this sumsummer we'll see what happens there >> home depot was out today as

well also pretty strong despite thees then kohl's, which was a big miss is it as simal as winners and losers or staples versus discreti discretion how do you determine >> yeah. i mean depot was open and kohl's was closed difficult to say one did well. depot did well staying open during this difficult time was just incredible for those guys doing it and if you went by there and i did several times, they were busy people were shopping you go by kohl's and they're close closed so it's difficult to say kohl's had a bad quarter. bad financial quarter but we won't really know until they get open and start to gain traction again. >> none of these department stores have had a major e commerce success story like what

we're see iing from walmart so even though walmart was allowed to be b open and kohl's wun wasn't, it's not like people were going directly online and shopping other brands like nike had to close all its stores and got a huge surge of business in online >> sure and i think that will be a big learning those retailers that adapt and bring their brand to the customer in whatever form they want to deal with and develop a digital business will be successful and if you can't, it's going to be hard and i do think this last couple of months accelerated that trend >> bill simon, thank you very much appreciate your insight. don't miss an exclusive interview with walmart's ceo doug mcmilllon om bb on squawk box.

ahead, we'll ask jim fitterling whether his company is starting to see demand and whether he's planning to open back up save hundreds on your wireless bill

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you can see how the final hour of trade was fairly messy. down 390 points on the dow 1% for the s&p and half a percent for the nasdaq although of course we did have strong gains yesterday. s&p 500 still up 2% so far over the last two trading sessions. leets have a look at what drove the action today a report from stat news threw some cold water on the vaccine results. moderna closed down 10%. the president makes more hawkish views on china saying he feels differently now about the chinese trade deal than three months ago and uncertainty over the stimulus plan as fed chair powell draws more support. >> also got a big reversal in walmart which didn't help as well let's go back to mike looking at corporate debt and equity issuance this has been a hot topic. >> the capital markets have been b wide open for companies to sell debt and equity this year

really has allowed them to kind of refresh their balance sheets, build up cash. a chart of the past five years, year to date each year through may 18th pretty much apples to apples $1.1 trillion this year so far the biggest chunk coming in investment grade debt at records year to date so far and also, equity at $100 billion so almost no ipo so keep that in mind this is all existing public companies. selling fresh equity and what that tells you is yes, the markets have been opened by what the fed has done in anding beb hind them, but also says that down the road, it can be a little pressure on the supply demand picture for stocks because remember, you have minimal buyback activity right now. $20 billion monthly pace of new equity offerings and what does it do to corporate behavior? put them in debt paydown mode or they've raised equity because they're covering costs

so it's going to create when we come out of this, a slower metabolism in corporate america. maybe less capex, although if these companies don't niese the cash they've raised, wouldn't be surprised to see m and a and a buy back of restart activity but that's probably several months down the road. >> yeah, nobody's talk iing abo restarting buybacks. up next, we'll ask the chairman and ceo of dow about the cost of reopening his facilities around the globe and how he enplans to ensure workers are safe from coronavirus. that's next. ♪ ♪

♪ ♪ ♪ right now, there are over a million walmart associates doing their best to keep our nation going. because despite everything that's changed, one thing hasn't and that's our devotion to you and our communities. our priority will always be to keep you and our associates safe, while making sure you can still get the essentials you need. ♪

dow down 35% for the year so far. dow has more than 100 manufacturing sites and as the world starts to reopen, the company is laying out a new plan to safely bring its employees back to work and joining us now is dow chairman and ceo.

jim, welcome nice to see you. >> good afternoon, sara. great to see you again >> so, the market's been bucket ed around on your stock included on news of vaccine trials an efficacy how closely are you watching that kind of data, especially around a vaccine to figure out when you can actually get back to normal? >> health and safety is the number one thing that everybody's looking for here so a vaccine or a treatment is is something that we're all looking for. but i'd say more importantly, we know that we need to get the economy back and we've got to get people back to work and that's why we've focused on using our experience as an essential manufacturer and our experience in working through the pandemic to try to help other companies with their return to workplace playbooks. >> so jim on that note, r what are the things you've learned from that, sorry, sara that you're able the share with other companies as they perhaps go back to work for the first time

>> we've got about 14 thur,000 u 37,000 employees reporting every day to our sites we've taken nonessential personnel and asked them to work from home, which is working fine as those 14,000 come in to work, we practiced very strict physical distancing. we wear facial coverings when we come back into the workplace we do screening every day when somebody b comes the work. we ask them questions about their health, where they've been, if they've traveled somewhere, if they've come into contact with somebody with covid-19 and we take a temperature screen if somebody doesn't pass the screen, they don't come onsite that protects the rest of the workforce. if somebody needs to be quarantined, they go home for 14 days we pay them while they're home and then once they're clear of symptoms and pass a test, they can come back to work. if somebody has come into contact with somebody with covid

even if they're not showing symptoms, a lot of times we'll ask them to quarantine just to be safe. >> do you pay them if they test positive or not feeling well if they have symptoms because one of the issues is as employer, you don't want it to be punitive if they have to miss work for being sick >> we pay them this could happen to anybody and in our culture and our principles, the way we treat people, we do not want to discriminate against somebody just because they happen to have come into contact with covid-19 or have the symptoms so we pay them we ask them to stay at home. the safe thing to do it protects the rest of the workforce. we also do contact tracing so we, we'll have a health services professional do an interview with that person and find out if they came into contact with anybody else at work and as a preventive measure, we might ask somebody at work who's come into contact with somebody with covid to go home for 14 days just to be

safe >> what do you think of nonessential manufacturers who will be weighing up? do you have some sympathy as to how hard it will be to make the decision do you think the guidance is clear enough >> well i've been involved with the michigan economic recovery council, which is the governor's county is sill to get the state of michigan opened up. in that, i had the chance to work with many different manufacturers including the big three auto manufacturers, so gm, dow worked together a lot on these return to workplace man mr. plaps. there's a group that just came back to work on monday they had a week last week which was areorientation for coming back to work and that went extremely well and of course these were workers that were getting paid unemployment you know to be at home but they want to get back to the workplace and they want to get back to work b and they juice just need assurance that it is safe to come back. so give you dow's experience

we've had 70 cases since the pandemic started and 61 of the people have recovered and come back to work. so it is manageable. you can create a safe work environment. you can protect the employees and it can be safe we're not asking people you know, when you're not at work, stay at home when you're at work, stay at work if you leave work to go get lunch and come back, we're going to screen you again and check you again when you come back in, by the reality is is it is safe to go back the work, but it isn't the same as before the virus. we've got to take precautions. >> jim, how do you handle people with underlying conditions or people who are older than the age of 60 who have a higher risk here against covid-19? >> so before anybody comes back into the workplace we'll have a discussion with them about what's expected from a safe work practices perspective. we'll talk to them about their

individual situation also bearing in mind prifsy is very important we don't want to put high risk individuals at risk so we'll talk that into account if they need to ta home and do work from home, we'll try to make arrangements to make that happen that is one of the things that we're very sensitive to. the other thing quite honest ll wee not talking about going back to work in the offices because right now we're working virtually pretty well and in office space, especially where we have open office concepts, we have to do some work to manage traffic and seating patterns to keep physical distancing >> it's a good snapshot of what companies are trying to figure out. talk to us about demand. you're a good benchmark for a global gdp what are you seeing all over the world as countries do start to reopen and what do you project as far as how fast we can see recovery >> so in our packaging and specialty plastics business

which goes into many consumer goods, food, nonwovens for hygiene and medical application, those volumes are holding up well welcome paired to first quarter where we saw hoard buying and welcome paired to last year and our industrial solutions business, which is intermediates for clean iing, solvents, hand sanitizers, et cetera, that business is is holding up really well as you get into durables and our polyurethane business that touches the automotive industry and most of the auto industry has been down for month, those numbers are down maybe 20, 30% we see that in construction. construction just now is r starting to come back. in our business that goes into paints, our coatings business, the do it yourself market has been very good so people b have been home and doing do it yourself projects, doing the best numbers in ten year, but the contractor business, the construction business has been slow and that's just starting to open up.

i think april, may in the united states will be the slowest months, i would say the same in europe then june will start to pick up. and china is any indication, the chinese industrial economy is back to 80 to 90% of pre covid levels and we see a gradual steady increase i would say the consumer demand in china is lagging that a little bit. the consumer demand is a little bit uneven because people are still staying home more than they're going out. so i think it's going to take a little while for auto sales to match production or appliance sales to match, but we're making gains on it and then the other area would be mobility in the states if you look at the google or apple mobility track er we're back to within 5 to 10% of last year on people moving around so we are tastarting to'a return some things are coming back sooner than others >> going to have to add that mobility tracker to our watch

list jim, thank you, appreciate the time >> thank you, sara appreciate it. >> still ahead, we'll ask jerry moran who sits on the senate banking economy whether he's in favor of more coronavirus relief spending and how those funds should be targeted we're back in a couple of minutes.

welcome back time now to get a coronavirus update with sue herera hi, sue. >> hello, everyone ford is recommending president trump wear a mask when he visits the company's ventilator factory in michigan tomorrow however, the company says the white house will make its own safety decision and the company will not stop trump from entering if he does not put on a facial covering. you can go to cnbc.com for more

on this story. the u.s. and canada have agreed to keep their border closed to nonessential travel through june 21st, but justin trudeau predicts it could be months in russia, the hot spots have driven to nearly 3 thourk there is significant und undercounting in some areas. russia now has the second most cases of any country behind the u.s. and in england, some premier league soccer players returned to training this morning. clubs are are only allowing small groups of players to train together and workouts are being limited to 75 minutes. maybe that's the new normal. wilf, back to you. zwl sounds like sadly the english premier league is still 50/50 at best for a soon return. six positive tests for coronavirus across three clubs came in this week so still up in the air. but thanks so much up next, major tax troubles.

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welcome back we had a dramatic close on wall street the dow fell 1.6%. down almost 400 points at the close. s&p 500 lost a percent and nasdaq lost half a percent after it was positive for most of the day. gave up gains and saw this final hour of trade tumble after a headline from stat news claimed vaccine experts say moderna didn't produce data critical to assessing its coronavirus vaccine candidate. moderna finishing the day down 10%. just the question mark after the giant rally yesterday sparked by the positive news on moderna helped pull the market lower though there were other signs

including a big turn around in walmart early in the day >> property taxes by the way are now new york city's largest source of tax revenue, but that could be under threat thanks to the coronavirus. robe robert has the story >> you've got the tech companies, big banks, media, talk iing about a smaller footprint in manhattan that means a big drop in revenues from property taxes they're now the largest source of revenue for new york city account iing for more than halfo almost half of all tax revenue and even though the bulk of manhattan's real estate a is residential, the it's the commercial space that really pays the bills with over $12 billion collected last year. new york city is already facing a $3 billion deficit and big day of reckoning could come 20th, which is when commercial property taxes come due. >> when you factor in as well how high the state income taxes are and the fact that the

production was removed, my point is it's hard for them to off is set that by increasing income tax or other measures in lieu of less property revenues >> exactly and you know, the reality is that doing business in new york city with workers is very expensive that's why companies have seen that when you can do business remotely and have a portion of your workforce work from home, to be b able to cut that real estate bill even if it's just by a third or 20% is is significant. so that's why i think new york city is going to face a lot of issues, not just pr the income tax, sales tax, but also the property tax, which is now the most important tax >> robert frank, thank you and for much more on the impact on the state and local level, doen don't miss b cnbc's interview with gavin newsome tonight, 5:00 p.m. eastern fast money breaking news on johnson & johnson and its talc powder.

>> they're not going to sell it anymore in the united states and canada they're saying that due to a product review, resulting from the covid-19 pandemic, they have decided to cut b about 100 different products from their assessment including all of their talc based johnson's baby products they say the discontinuation is only effective in the united states and canada and that the products represent about half a per sebt of their total u.s. consumer health business they add that demand for those products has been in decline, but johnson a& johnson remains steadfastly confident in the safety of their talc based products and decades of scientific studies justify it. they say they will defend vigorously against those unfounded allegations. they're going to get rid of the talc based baby products at least here in the u.s. and canada back to you. >> interesting story

after hours move in the stock not too significant. up next, stimulus spending house democrats pushing forward a sweeping coronavirus relief pack percentage. get his take on how much the government should be spending on pandemic relief. back in a couple of minutes. where will you go first? will it be familiar streets? or perhaps unknown roads? wherever you may go, lexus will welcome you back with exceptional offers. find a lexus for every road at lexus.com.

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up next, a a look ahead after weak trading at the close. will the selling continue tomorrow morning at the open plus, more key earnings to atnd a big preview of tomorrow coming up after the break. these days, it's anything but business as usual. that's why working together is more important than ever. at&t is committed to keeping you connected. so you can keep your patients cared for. your customers served. your students inspired. and your employees closer than ever. our network is resilient. our people are strong.

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let's take a look at how we finished up the day on wall street it was a bumpy ride into the close. the dow ultimately closed lower by 390 points, more than 1.5% and the s&p down 1% at the end of the day with all sectors inside going negative including technology the nasdaq had been positive all day long it took a spill into the close and ended down a half a percent. the russell 2000 index of small caps lower by 2% keep in mind, it was only a

slight giveback to yesterday's giant rally which leads the market higher two% on the week house democrats putting their $2 trillion coronavirus relief package dubbed the heroes act, it is a trillion dollars for state and local governments anda i second round of stimulus checks for individuals and private business leaders pitching their own plan of action here on cnbc. >> i would rather see us give out debit card, if you will, that say here's $1,000 that you have to spend within two weeks and preferably locally so that we stimulate demand because no matter what we do in terms of trying to keep employees employed that there's no demand for those companies, they're not going to survive they're going to be zombie dumps. >> why don't we have 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 can track the virus we can deal with this virus

that's $150 billion, 5% of the 3 trillion, at least there will be return on the investment. >> interesting ideas let's bring in republican senator jerry moran of kansas, a member of the senate banking committee. senator, thanks for joining us >> good to be with you. >> where are we on the new stimulus senator mitch mcconnell, majority leader said he will assess it over the next couple of weeks and there doesn't sound like there's an urgent need for more stimulus coming >> well, i think it's appropriate to have a pause, but the pause, i assume, won't be very long. congress has returned and the senate is in sessions for the next three week, but with memorial day behind us -- coming up, we'll be out of here for two or three days or a little bit longer and it is time to figure out what's working and not working, but i think there's a general belief by me and my colleagues that something is still yet to be done, but we need to determine exactly what that is so that we're not

wasting taxpayer dollars. >> clearly, originally, senator, we hoped the economic impact would be very brief. it doesn't look like it's going to be very brief, and quite possibly will be prolonged does that mean in the very least that existing programs' terms need to be extended if -- even if it doesn't mean significant amounts of extra dollars were added to the stimulus. >> we've done that in a time or two and increased the resources available to the programs and tpp is one that comes to mind and such a forefront of the small business community, but yes. those are the kinds of things that are easier. i think what's happened that causes the anxiety here is that the democrat package that passed the house of representatives last friday is, in many ways, unrelated to covid and becomes a democrat wish list and it makes

me nervous we've had a lot of success in staying pretty bipartisan and we've done that by keeping the bills focused by covid and are responsible for the consequences of the virus if this becomes the political wish list and that becomes the standard and no democrat can vote for a bill that doesn't accomplish the things that are in the house bill we're at real laggerheads on getting something more done, and i think there is a need, and ultimately there will be a desire for something additional, at least fixing what we've already done and adding to the things that are working. >> well, what about state and local governments? because that's something where it feels like it's not a democratic wish list thing you have republican and democratic governors of states saying they have deep holes right now and they have to pay workers. why is that something that republicans are reluctant to talk about >> i don't think that as a

republican that's a reluctance and at the moment the greater value is can we give greater flexibility to spend the money that they've already been provided in some circumstances that's really necessary and depending upon the magnitude of the virus in your community or in your state, that plays differently across country so that's a place to start, and then i think the standard for me is that i don't want kansas taxpayers to have to pay for years of mismanagement and overspending in other states while we've been pretty frugal and responsible in our spending patterns, but i am interested in trying to make certain that the things that are a result of covid-19 are things that we still can try to help communities resolve and we've been looking for ways to do that even more than the money that's been given to states or the largest counties or the grants to local lauchl, grants to health departments and grants to hospitals and i think there's still a role for us to play in trying to solve the problem.

we need a better economy than what we had and what we've been having and the key to that is healthy boom and people who know they're healthy and so continued investment in ways that cause people to be able to access the necessary tests, certainly the ppe and the protection equipment for healthcare providers and others is important. we need to do more in regard to making certain our food supply is safe and secure and the people who work in that industry are safe and they know they are. so there's plenty to do that are related to ways that they can help states and communities as well as businesses and most importantly, employees. >> senator, thanks so much for joining us. >> my pleasure thank you. >> senator jerry moran >> take two set to report tomorrow and josh lipton, expedia's earnings and seema mody >> it's the first earnings report under newly appointed ceo

peter curran and the covid-19 testing and the promise of a vaccine is having a longer impact on longer travel bookings and whether the growing trend of people moving from shifting to coastal towns and the rise of vacation rentals is having an impact on the home rental backgound whichec pedia bought to directly compete with airbnb and it is down 30% so far this year sara >> seema, thanks let's get to josh lipton now with a preview of take two's results. josh >> so, sara, investors have piled in to take two check out that stock it hit a new all-time high in today's trade. it has now surged more than 40% from its mid-march lows and so far this year, easily besting the broad market bulls bet take-two benefits as people shelter in place and search for entertainment tomorrow the key question will be take-two's guidance and what

executives have to tell investors about their game pipeline guys, back to you. >> thanks so much for that >> it's been a big week for retail earnings and tomorrow we'll hear from target, lowe's and l brands and mike san tolly, retailers fascinated today with walmart and an extraordinary, big jump at the open and it gave up most of those gains throughout the session >> obviously, they've been the strong parts of that sector. home depot and wal namart did te higher and i do think there is a reassessment going on and they'll have 25 times earnings and 2% give or take. it doesn't seem that it's unrecognized that they're the incumbents and the strongest and it's the same question, are we going to rotate into the laggards and the more cyclical plays and they're the more sector basis going in retail >> i wonder if there are any green chutes mike for consumer

discretionary. we knew walmart was going to have a good quarter. we knew home depot would have a good quarter and they provided essentials and the discretionary names that come will be interesting. >> yeah. i think they're going to talk about what happened the first couple of weeks of may and you will be able to see incremental improvement. is it enough >> thanks for watching we're out of time on "closing bell." "fast money" is next >> fast money starts right now i'm melissa lee. guy adami, tim seymour, and karen finerman >> we'll talk to him about that and plus what elon musk told him about pulling tesla out of california also ahead, former home depot ceo bob nardelli says we are in the middle of an economic tsunami and we are understating just how big the damage will be. later, check out shares of beyond meat soaring into today's session an