without m&a. this will be a pretty difficult landscape with an american that will come out of this with $35 billion. >> that's unbelievable i know exactly what you're saying no net debt versus some of those incredible loads thank you, both, very illuminating brian naglinski talking about what maybe not to do in the airline space. the fed minutes are here now let's get over to "power lunch." tyler mathisen >> all right, kelly, thank you very much. we'll see you back here on "power lunch" in just a moment welcome, folks, to "power lunch," to the kitchen i'm tyler mathisen stocks are snapping back after yesterday's late-day sell-off. the dow now back into positive territory for the month of may joining the s&p and nasdaq in that category. now, the market volatility this week partially fueled by dueling headlines over moderna's possible vaccine for coronavirus. the founder and chairman of moderna will join us on the timing of their recent trial

data and their stock sale this week but first, we are just getting the minutes from the last federal reserve meeting. it was a major one, consequential. steve liesman digging through that release right now we'll give him some time to digest and dig, we'll hear from him in a minute. in the meantime, kelly, back to you. >> tyler, thanks we are awaiting the headlines from the fed minutes stocks are in rally mode right now, as all 50 states have now eased lockdown restrictions in some way let's get over to bob pisani who has more on the markets for us bob? >> i'm dying to hear more about what mr. powell said in the fed minutes. mr. powell has been much more aggressive in talking about the need for more fiscal stimulus. i'm sure that will come up in the minutes. stay tuned for steve i've been talking about broadening in the markets. we're not far from the highs today, but what you want to see happening, the broadening, it's happening again today. the banks are up, the transports are up we're seeing moves up in the russell 2000, the small caps stocks energy, materials, these were all laggards and now the last day today and monday, their leadership groups.

that's what i call broadening here where are we in the market internals? breadth, that's the advanced decline line every day how many more stocks are advancing? it's kbrooumproving and getting better there's oceans of liquidity and more corporate debt out there. market multiple, it's expensive. 23 times forward earnings. you can argue the market may be a little pricey, but certainly, that's understandable given the rallies that we've had one other thing i want to mention, china stocks are a little bit on the weak side today. the senate passed legislation just a little while ago that could ban a lot of chinese companies from the u.s. per listings that's a very important development here this whole china debate is heating up nothing is happening in the house yet, but we'll see democrats control that i don't know if they're going to oppose this. this may have a chance of passage here so look at these big cap china tech stocks down a little bit. luck in coffee, by the way, china coffee company, just started trading again on the nasdaq after being away for a couple of months, as they admitted that a lot of their

revenues were fabricated they're being de-listed by nasdaq and are challenging that. i guess the point here, guys, is a lot of this china stuff gets very caught up in this whole debate on coronavirus and trade overall. and it's going to be a major issue. you're going to have a little fight going on in the house of representatives of whether or not to pass this current bill. guys, back to you? >> all right, bob, thank you very much. for now, for more market reaction in the bond market, let's get to rick santelli with the day's update hi, rick >> hi, tyler and i'm going to let steve have all the specific headlines but suffice it to say, a lot has changed since the last fed meeting. and the biggest effects in the treasury markets that i have witnessed so far today are not coming in right this second. they came in, well, about an hour ago look at an intraday of twos, tens, 30s, we'll roll those charts because around 10:00 eastern, that's when 20-years priced, it

was a very good auction. even though we don't have any history on it. it hasn't been around until "back to the future's" movie first run, we can look at the last ten-year and 30-year auctions and blend those results, and what really jumped out at me, you had over two and a half times over subscription to this 20-year. $20 billion over $50 billion was thrown in to buy that $20 billion and that is a solid demand scenario. finally, those yields got down so they were 138 and 30, 66 in 10s. you can see they've come back just a little bit. and finally, the dollar index. if you look at couple of week chart at the dollar index, it's definitely giving up some ground under 99 1/2, that was solid support. you want to keep a close eye on how the dollar moves if interest rates are meant to go down a bit from here, i would expect that the dollar index should follow. tyler, back to you >> i'll pick it up, rickster, thank you. we want to get right to steve

liesman with the headlines from the fed's last meeting >> the federal reserve minutes rout from the recent meeting they're saying the coronavirus caused tremendous human and economic hardship in the u.s. and around the world they're concerned the virus will weigh heavily on economic activity all of that, we knew but they did discuss some additional measures they could take the committee could provide more explicit forward guidance at future meetings. that's been an issue that's been discussed. they could be either date-based or it could be outcome-based in other words, based upon gdp hitting a certain level or a certain amount of time for how low interest rates would be. they could also provide additional detail on treasury and mortgage-backed security purchases or plans to buy, and they did discuss doing additional quantitative easing finally, this is a bit of the bombshell, but be careful, because they didn't decide on this they did discuss capping rates at specified levels, capping rates in the short and medium-term markets at specified levels for a certain amount of time that's been something that's been out there as to whether or

not the fed might discuss this either targeting the yield curve or actually targeting rates. if rick hasn't fallen down, you may want to ask him about this he might be on the floor right now, but that is something that they discussed in terms of additional potential tools they could have, but again, not decided, guys. i'll goback in and read some more of this unless you have some questions but you can see clearly the fed discussing the things they had in place at the time, the plans to implement those, and what further it can do. and this really meshes with what powell has been saying about his thinking about the need to plan for doing more than doing less and going beyond what's already been out there and proposed. tyler? >> let me ask you a question capping rates. what does that mean in practice and what would that mean to the bond market or the equity markets?

>> i think it was the 1950s there was an interest rate cap i'll search that word and find that section again in the -- okay, i'll read you directly what it says here. a few participants -- and note, it's just a few, not the majority of the committee -- also noted that the balance sheet could be used to reinforce the committee's forward guidance regarding the path of the funds rate through purchases and treasury securities, on a scale necessary -- here's the part -- to keep treasury yields at short to medium-term maturities, capped at specified levels for a period of time i guess the fed would say the interest rate on the two-year shall be 1.5% or i guess it would be much lower than that, 0.5% or 0.2%, i guess where it is now and we will buy and sell securities, such that we would keep that there. now, the thing about the fed is they often don't have to actually do anything they can set things to a certain cap, and the market kind of magically adjusts there. but that's the way they would do it, i guess conduct open market

operations around a specific maturity or maturities that would keep the rate at a certain place. and this would allow it to have more of an impact on the economy. for example, targeting the five-year is a place where a lot of business loans are targeted off of, so they could keep that rate down if they needed to. >> very interesting and certainly, that would be a major escalation of the fed's involvement in the economy more broadly. steve liesman, thank you we'll give you more time to read through and we'll talk a little bit later, i bet for more, let's bring in david rosenberg, chief economist for rosenberg research, and craig columbus, ceo of columbus macro, welcome to both of you david, let me begin with you you're a skeptic of this market, for, among other reasons, the idea that you think that the market is overly optimistic and major business executives aren't >> well, i think that's exactly the dichotomy, is that, you

know, we have business activity plunging i don't see that even with the reopening of the economy as we're seeing in china, you can reopen the china, but the demand side is lagging well behind i mean, the social distancing is going to be with us until we get a vaccine. and that is going to hold back whatever recovery we're going to be seeing after this initial detonation but i guess you can call me skeptical. it's just more an understanding that -- let's call it for what it is, this is not really a stock market that is hinged to the economy. in fact, there's no more correlation between the spx and the gdp. the fed has broken that down this is strictly and purely a liquidity-driven rally that we're seeing right now and so it's easily understandable you go back to last october, we're back where we were last october. last october, the unemployment was 3.6%

here we are at 14.7, at the same level of the stock market is rather unbelievable, because i don't think anybody would believe that could happen. but when they say, don't fight the fed, that's not just a glib refrain. we're actually living it in the moment right now >> and you see this as the fed injecting liquidity. i would just say adrenaline, steroids into the marketplace, right? >> well, it's -- look, the money supply numbers are surreal i mean, you've got m2 growth north of 20%, m1 north of 10%. we've taken out the supply of money growth we had in the 1970s when we were watching happy days and playing trivial sprut. it's amazing how gold hasn't broken out to new highs, but

there's no question that the rapid expansion -- the fed's balance sheet has overtaken the economy and corporate earnings as the major source of correlation with the equity market so that's really what's happening here when the fed moves to the high yield market, the questions that i keep asking, especially now with powell saying, we're going to have more to do once you move to a part of the capital structure that resides next to the equity market, people believe that they're going to start to buy equities >> chris columbus, let's bring you in -- i mean, craig columbus chris columbus you are an explorer, craig i know that! so let's get your reaction with what the fed is doing. >> two things the fed can't fix, right?

liquidity can't fix solvency you can't take good debt and turn it into bad and the second thing that's true all around the world, how do you refire consumption? it's not just in the sense of income replacement, meaning you get to transfer payments to the people that need it, but you have to have hconfidence in your safety and the country is so divided, even on the threat of the virus itself so to have a very sustainable recovery, youneed behavior to all fire in the same direction you need behavior to converge. now, as far as the market, it's not entirely irrational in the sense, though, that you think about tech, health care, communication services, over 50% of the s&p 500 so those sectors benefit from the transformation in our world. they're business models benefit from telework, digitalization, wellness and so the fact that those are also tech and health care, the sectors that have the lowest leverage, the two least

leveraged, so you need cash, and remember as an investor, some of these same growth themes that may be expensive in the u.s., you can access outside the united states, as well >> kelly >> let me bring in steve liesman here he has a few more headlines from the fed, including the fact that they have expressed concerns about the possibility of secondary outbreaks of the virus and that that may cause businesses to be reluctant to make new capital expenditures. >> exactly, kelly. we first heard jay powell discuss this concern about the second wave, most explicitly last wednesday and a couple other areas of concern that i think reflects the issues that we've heard about, the fed being more pessimistic. they're saying that participants are correspond that some business models, quote, may that longer be viable if consumer behavior changes they're saying, small businesses are not able to embrace an

extended -- may not be able tone dur an extended financial shock. and they are concerned about that second wave there was some discussion of a better-case scenario, kelly, of maybe this thing ending more quickly and consumers returning more quickly, as well. but there were also several really pessimistic views and concerns that the fed needs to brace itself and its policies for those outcomes >> steve, it's interesting at the time we're talking about kind of a v-shaped rebound in the markets and mortgage applications, we're still talking about the fed doing more, not less >> for sure. what i have gleaned from talking to several fed officials and listening to all their public presentations, kelly, is that they believe that the reopening could be premature in that they keep calling for additional testing, they keep calling for really having the kind of systems in place to have consumer confidence. that's a big concern they have out there.

david rosenberg is saying the same thing consumers may not come, because you don't have the systems in place to make them confident they're concerned that, yeah, you have some rebound, but it takes more to get back to where we were before >> steve, thanks for bringing those fed headlines. pretty spicspicy, all things. craig columbus -- craig, if we had christopher columbus here, we would really have had something. >> coming up, we'll have more on today's market rally check out two beaten down sectors, energy and financials, they are leading today's snapback plus, the race for a vaccine is heating up moderna causing waves over its recent trial data and spark sop confusion on wall street the founder and chairman will joining us to clarify some of th rhtatig after this break. stay with us

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the president was introducing operation war speed, focused on a vaccine, that he introduced moncef sloughy who happened to be a member of the board he made some comments saying he had seem some very early clinical trial data on a potential vaccine and he didn't say which one, that made him even more confident that the goal of having a vaccine by the end of the year was possible lots of speculation, of course, began that he was talking about moderna's vaccine. and monday morning at 7:30, moderna reported interim phase i date from its trial. and that data very early drove the stock up after the close of market, moderna announced it was selling $1.25 billion wort of stock and said it planned to primarily use those funds to fund the manufacture and distribution of

the covid-19 vaccine, if they were successful. finally, yesterday there was a report from stat news that really rattled both moderna's stock and the entire market, citing experts saying that there's just not enough data to determine who this vaccine is effective, based on what moderna reported and guys, a lot of speculation about why moderna reported those results monday morning, including from scott gottlieb on "squawk box" this morning, who speculated that it might be because dr. slaoui alluded to them on friday and moderna needed to then report the results monday morning we've got a lot of questions and the best person to give us answers is somebody from moderna, the chairman, noubar. it's great to have you monday morning you had interim data and only eight patients' worth of data. why monday morning for that data release? >> hi, meg

thanks for having me on. so the company, is as a public company, constantly monitoring when it is information that it deemed material to share with the public and that determination was made over the weekend that we should do so on monday morning, so we reported interim results that were reported with our collaborators and what we put out was the extent of the data that we had available and it reported on antibodies across 45 subjects that were tested, all of which produced antibodies, and a subset, four groups in two cohorts, all of whom had developed neutralizing antibodies that's the data we had that's the dad we shared so i want to ask you about, that's the data you had.

jack rose said, my guess is that the the numbers are marginal or they would say more. did you have more information and only report what looked good did you have numbers that were marginal, as this person suggests >> meg, look, moderna is a company that is not only trying to develop 15 different drugs and vaccines, but also has engaged in a public health crisis, like many other major pharmaceutical companies we take what we do very seriously. we would not have not put out only some of the data to make anything look any different than the reality. in fact, more importantly, not only is our scientific credibility very important to us, but the niad and the nih, i think whose credibility cannot be challenged by any experts or researchers have had every

ability and contributed to how we said what we said, and the extent of what we said, because they are ultimately responsible for presenting this data and if so, which we expect to happen some time soon so i think that we recognize there is so much attention on this matter, that there are many folks who are professoring expertise on guessing on what we may or may not have. that's not very useful to a world that is looking for some news that they can interrupt, only because as a public company, it's very difficult for us to respond to expert guesses. so i would simply urge the public to pay attention to what we say we stand by what we say and as more is said, i think that some of these guesses will be clarified for what they are. >> it's kelly back here in the

studio what most people who i have spoken are focused on is not so much just the results of that study, but the timing of the stock sales that evening and the fact that the ceo has been a consistent seller of moderna stock. is there a reason why he's not been more of a buyer of moderna? and the timing seems explicitly tied to the fact that the shares jumped in value, which is fine that's the whole point and obviously, the whole market is excited by the prospect of this being a cure. but should investors in moderna expect more of this, that any positive announcements should be fold by more stock issuance and what should they make of the ceo's behavior >> you macked several questions into one let me see if i can address them in the brief time that we have first, the timing of the stock sale was a function of the data and what it suggested to us as a company and the urgency we felt based on the data that we had to move even more quickly than we

have been moving already moderna is a recently public company and the resources that we have so far deployed towards this have been measured. certainly, we've had some assistance with government funding through barta. but we felt as a company, following obtaining the results, which just occurred, that it was prudent for us to add to our resources and invest directly from our balance sheet into accelerating the preparedness we have to be able to produce large volumes of the vaccine look, the reality is that we don't yet know if we will be able to show a safe, effective vaccine that can be licensed for distribution, but the data we do, we're going to wish that six months earlier, we had made the very investment we've sought the resources to be able to make so we feel a sense of urgency and obligation to do this. that's why we did it as for your questions around stock sales, look, there's a

background context that hundreds of companies and many of the management teams, including hours, have programmed selling that occurs periodically all of it is disclosed, and there's nothing unusual that has gone on. in tying these things to each other is fine to do, but they have really nothing to do with each other the reality is the company sought resources to be able to respond to the obligation and opportunity it sees. and we hope we will be vindicated in having made that decision >> noubar, it's meg terrell again. in the short time we have left, i want to ask you about moderna's approach to whether the company or any company working on a treatment or vaccine for this pandemic should make a profit off of it. bigger companies like johnson & johnson have said, this is a nonprofit endeavor for them. gilead is donating the first set of its doses of remdesivir

pfizer has said it's not necessarily a money-making endeavor but moderna is a smaller company and this would be your first product to make it to market do you believe and expect if it's successful that you will make a profit? >> meg, look, we have not commented on this, because everything we have been doing has been to as rapidly and as safely complete the only race that matters, which is a race against this virus a lot is being said around who's going to win a race or how many entrants there are apparently there's a hundred vaccine makers as far as we're concerned, we've consistently said that we are racing in our own lane we want to finish the race in our own lane, and if we get over the finish line, the only thing we want to do is deliver the quantity of vaccine that we're able to produce. that's our entire focus. so we are not thinking about a profit as the motivation here. certainly as a company, we will look at the value of what we're doing and try to actually reflect that in what we do, but

we recognize this is a pandemic. this is a very urgent situation. and like others, we're focused on getting the vaccine made and not on a profit motive for doing so that's as far as we're able to comment today. there's a lot of unknowns out there. by the way, this is a u.s. issue. this is a worldwide issue. we are looking and making plans to produce the vaccine for worldwide distribution and working with many partners to be able to do that. that's our current focus >> and i know you've put that goal out there for a billion doses per year, potentially. but your chief medical officer also said on monday that the demand will be greater than the supply how much do you expect to have at the beginning and who's going to get those doses >> we are increasing that number as we speak by virtue of the resources that we've obtained. we are also hoping and looking forward to additional resources as we go forward nor to be able

to debt to that $1 billion dose per year number. it will be a heroic effort and a collaborative effort between governments, other private entities, whether they're foundations or companies, and ourselves and our shareholders first and foremost, who believe that this is something that we really need to be able to do look, i heard what tal said, and he's not only right at the beginning, he'll be right in the end, in a sense that i think that no matter how many of these vaccines actually make it over the finish line, we will still be constrained by the supply a lot of numbers are being thrown out, but these are just estimates. in terms of who will get this, we will work with the authorities and the governments that we're collaborating with to be able to make sure that the vaccine is appropriately distributed. as a company, as a private sector player, we very much rely on the public health authorities and our collaborates at nih and niad as well as other agencies

to guide us in that. and from day one, i think that dr. fauci has collaborated with us and many others know that this is a company that takes its responsibilities seriously and recognizes that there's things we can do well, design, develop, test, and communicate results, and there are some things that are beyond what the company can do and that pertains to who gets it, in what order. we will make as much supply as humanly possible safely available. and then it will be up to our collabora collaborators. >> noubar, we really appreciate you being with us here today and we hope that the vaccine development goes well in the further stages that are required to prove that it works, and of course, that it's safe thanks for being here. kelly, back to you >> our thanks to you and meg terrell with the chairman of moderna. coming up, we'll have much more on today's market rally. look at some of the stocks hitting new highs. facebook is now up 6%. amazon, 1.5% all-time highs

chipotle, well over 1,000 now and paypal as well the stay-at-home stocks are surging even as america begins to reopen, but wall street says some of these names have run too far, too fast. we'll dig into all of this after this short break ♪ ♪ ♪ ♪

welcome back here's a check on markets today which are rallying across the board. about 1.5% gains for everybody dow, s&p, nasdaq, all mostly recovering from yesterday's declines and oil is one of the strongest parts of the market, energy, that is. the oil commodity itself, wti, closing up about 4% to $33.53 a barrel that's a pretty impressive move

off the bottom we had signs of improving demand and a surprise drawdown in inventories and the stocks, the energy sector is the top-performing sector in the markets right now. tyler? >> well, kelly, let's go over to sue herrera for the latest on the coronavirus. hi, sue. >> hello, ty hello, everyone. here's what's happening at this hour alabama, north carolina, are the first states to use tracing technology you can get more at cnbc.com on how states plan to do contact tracing. 106,000 new cases of covid-19 have been diagnosed according to the world health organization over the last day. that is the most for any day since the outbreak began w.h.o officials also say an end to u.s. funding would have, quote, major implications for its evefforts to deliver health services around the world. and a little bit of

encouraging news for those who hope you can only get covid-19 once researchers in boston infected nine monkeys with the coronavirus. all of them recovered and developed antibodies that gave them protection from reinfection. the results are also promising for vaccines and their ability to provide immunity from the coronavirus. as always, ty, you're up to date i'll send it back to you >> i'm glad the monkeys are doing well and that's some promising news there sue, thank you very much now it's time for trading nation and look who gets to do it today, me btig warning this week of vulnerability in stocks, including grubhub, far fetched, chewie and etsy, and then there's the video conferencing stock zoom, a name up 155% just this year. and now with a larger market cap than 75% of the s&p 500. let's bring in matt maile of miller taebak and mark tepper,

he is with strategic wealth partners to discuss. matt, what do you think of these stocks as a group, and are there ones that you can separate out specifically as being winners and others sinners >> yeah, i do think that a lot of them are getting a little ahead of themselves. the one that stands out to me is zoom it's a great product i never used it before this year and now i use it all the time. not only has it gone up 150%, it's got a p\e now above -- wel above 300. but more importantly, this market is so dependent on momentum right now and this is a stock that looks like it has good momentum, but the quality of that momentum is starting to wane let me explain you look at the chart on the stock, and even though it's made a series of higher highs, it's mac d chart rather than the 50 and 200-day. it's rolled over a couple of times. and as stocks made new highs,

it's made lower lows it shows that that momentum really isn't there like it was a month or two ago i would also mention, which i didn't put in the chart and i apologize, the last rallies have come on much lower volume. so a stock like kelly just mentioned, facebook, which is breaking out to new all-time highs, that quality of momentum is still there, where it's really not there for some of these other names. you want to be a little bit more choosey. >> mark, what are your thoughts? >> so i agree. a lot of these names that have been high flyers lately, they're going to give back some of their gains when people start leaving their homes again, however, i think there's a group of specific companies where i think they're set up to really realize sustainable, you know, stock price rises. and i think two examples would be dollar general and o'reilly so, obviously, i mean, we all hope covid goes away as quickly as possible, but unfortunately, the by-products of the virus, those are here to stay job destruction, high unemployment dollar general is your typical

trade down stock when times get bad, their business ramps up. 70 to 80% of their revenues come from consumables and 80% of the stimulus money that was recently sent to families has gone towards grocery stores and there's more talk of that to come with o'reilly, we like o'reilly, but we think this is going to be the year of the road trip. no one flying, gas is cheap. people will put extra miles on their cars our problem is, our cars are the oldest they've ever been they need to be fixed and o'reilly is the answer there we think they'll be good during covid but also post-covid. >> i'm with you on the idea that this is going to be a driving summertime for many, many people who are going on vacation and maybe an rv summertime for a lot of them. matt and mark, thank you very much and for more trading nation, you can head to our website or follow us on twitter @tradi twitter @tradingnation kelly? >> tyler, thanks still ahead, the coronavirus crisis is hitting every corner of america and one expert says it could leave to the demise of rural america. he'll join us to make his case,

next plus, our day three crisis playbook we'll look at how restaurant stocks could be benefiting from the delivery boom. and which ones remember, you can always watch or listen to us live on the go on the cnbc app. we're back in two.

today for the first time, all 50 states have at least partially emerged from lockdown. but as we get back to work, who gets the blame if someone gets sick kayla tausche is looking at that issue in our "states of play" survey kayla? >> hey, tyler. who shoulders that liability is one of the key questions facing lawmakers as they try to craft the next phase of congressional relief, but the answer isn't so clear cut according to our latest cnbc and change research

survey conducted over the weekend in six critical battleground states. in that survey, 45% of respondents said that employees and customers should be able to sue a company if the virus spreads there. that's the position backed by democrats. 42% of respondents said businesses should be protected from lawsuits over the spread of the virus. that's the position held by most republicans. the rest of respondents say they're not quite sure who should be blamed of course, pinning the virus on a particular establishment would require large-scale contact tracing, so that people's whereabouts can be accurate tracked and americans aren't completely sold on that idea quite yet. more voters in these swing states say they're not ready to share their data to allow their whereabouts to be tracked. 14% say they are on the fence about that of course, most officials hope that there is a another future outbreak in some of these cities, that they happen in small clusters so invasive technology isn't needed. of course, we don't know whether

or when any second wave could take place and how some of the data will look after these reopenings tyler and kelly? >> kayla, thanks very much kayla tausche. as states reopen, our next guest is worried that it's too soon and says that it could lead to the demise of rural america. rural meat packing plants don't have the health areas like bigger cities. here to explain is benga agalori. i have a couple of reasons for skepticism about this. not least of which is that the demise of rural america may be attenuated from work from home as more people are finally able to leave high-cost cities and go to more of the inner parts of the country. but explain why you're so concerned about these areas and how much more at risk you think they are to coronavirus. >> my biggest concern is the infrastructure issue and so biggest part of it is the health care infrastructure that

there's no access to hospitals, things like that so when an outbreak comes out, then they're not going to be able to tackle this virus. you bring up a good point about working from home. a lot of these rural communities don't even have the broadband infrastructure to do that. so if they move out there, they're not going to be able to work from home so there are all of these infrastructure issues that are going to cause problem >> right, although, if there is enough of a demand, that could finally get the broadband infrastructure to expand, following that demand. let's go back to the core issue about the spread of coronavirus. you mentioned iowa, the meat packing plants and so forth, but every state that has reopened has so far seen a lower r-0, a lower sort of spread of coronavirus than it had prior to the lockdowns. do you see any evidence that reopening is intensifying the spread of coronavirus in rural america? >> yeah, because when we talk about rural america, one thing we have to understand is that it's not a monolith, that iowa, georgia, mississippi, even central california, there's all these different parts of rural

america. you look at travel communities in new mexico. they're having huge outbreaks at the level of big cities. you look at joirnlgeorgia, mississippi, alabama they're also having huge outbreaks. at a state level, it may not look like it's actually getting lower, but we look even deeper and specifically focus on rural communities, it's actually getting worse. >> understood. and i know -- listen, i grew up in a pretty rural community, so i definitely know what you mean about health care support, although i will add even in that community, they've had basically no outbreaks or hospitalizations of coronavirus but there's something else to balance this against, because i know you're concerned about these reopenings and say we should even have a national shutdown again the damage from that including the death toll and health toll could be terrible for these rural communities. you know, this is a population, as you know, that tends to be sicker, older, you know, more vulnerable we've already seen people having to postpone routine medical checkups, people who might have cancer or diabetes or chronic conditions, not able to get the

care they need isn't it more urgent that the economy reopens in order for them to get that care and to be sure that those jobs that are support those communities don't go away? >> i think this is a place where the policy makers can really step in and actually help without with these reopenings. one of the things we have to think about is when we reopen, people may not come back, because they may still be worried about the outbreak you can reopen the economy, but people may not come back so if policy makers put more money into relief program thos o help out with businesses and people who are out on layoffs. we have huge layoffs and decrease in retail sales so policy makers can step up and make the environment much more safer. >> you can read more of benga's piece. he says the coronavirus may accelerate the rise of rural america. thank you for joining us today >> thank you for having me >> kelly, thank you very much. fascinating conversation there let's take a look at the markets, shall we? another rally underway right now and the nasdaq is just a few

percentage points from all-time highs, if you can believe it we'll take a look there. you see those numbers right in front of you up next, we'll take a look at some of the big movers on the day as "weluh"onnu after thises (soft music)

- [female vo] restaurants are facing a crisis.

and they're counting on your takeout and delivery orders to make it through. grubhub. together we can help save the restaurants we love. time now for today's power movers starting with inovio pharmaceuticals. that company says its virus vaccine showed a response in mice and guinea pigs harley-davidson, they make hogs. they're resuming production albeit at lower rates. and we went with shares of camping world which have had a huge resurgence from the bottom

up 350% in two months and trading levels not seen since the end of 2018. >> thanks. well, many areas of the economy are still shut down. there is strong demand for workers in other parts of the economy. we're joined now to talk about how companies are working together to meet the demand work, maybe move people around, and keep them employed rahel? >> what we're seeing is some of the fastest reallocations. others are scrambling to find workers. what we're finding is that companies at both ends of this spectrum are working together to help the workers who are sort of caught in the middle who have lost their jobs through no fault of their own we know that amazon has partnered with hilton and others as it looks to hire 100,000 workers. albertson's, for example, also worked with 35 businesses including mgm resorts and hired 60,000 new part-time employees cisco telling me that it partnered with kroger to prevent its furloughed workers temporary

work how about this example vcs. saying they have 60,000 people either currently being considered actually going through the process or who have already been hired and consider this. they have had 1.3 million people apply for jobs in the past two months that certainly gives you a sense of what type of need is out there for these temporary work opportunities. >> it's fascinating. rahel, do you think these are workers that will go back to what they were originally doing? or do they think this could be my new job or industry for some time >> it's such an interesting point. sysco made it a point to me that those temporarily working at kroger, they're still sysco employees and will remain to be so it depends i think we did a story on "power lunch" last week about that study out of becker institute

for every ten layoffs by covid-19, three jobs were created. we'll to see if some of these shifts become permanent. but at least for certain partnerships, they want to make it clear that those temporary employees are still very much their own. so we'll have to see what shift happens permanently. >> it's good they say we want our workers. not good luck to you. >> exactly mgm said they welcome their employees back with open arms when they can finally start to reopen it's a good point. >> rahel, thanks tyler? >> all right thank you very much. big split in the restaurant industry between those that deliver and everybody else shares of chipotle up 80% in two months papa john's up 50% can those gains hold as more restaurantreen ats nt "power lunch. where will you go first? will it be familiar streets?

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welcome back we're going to dig into restaurants and tell you what to avoid and what to buy there. starting before the pandemic, the boom in delivery and the promise of reopening is sending a lot of them much higher recently with chipotle actually hitting new highs today. and with us now to share her playbook, nicole miller reagan, an analyst at piper sandler. good to have you with us the simple fact that separates today's winners from the losers is delivery and pickup, right? >> absolutely. you have to look for those brands that have the culture and the concept to deliver but deliver in different channels >> deliver in different towns, you say? >> delivery in different channels everything up a premise. rapid pickup is a great expansion. digital in the form of delivery is the most obvious and the one that's ticking up two to three

x. that's a very investable theme >> a lot of the big publicly traded chains are kind of quick food service establishments. darden is not necessarily that it has more dine in. how do you try and analyze the restaurants that are dine in restaurants? we spoke yesterday with tillman. most of his -- he's not publicly traded, but most of his restaurants whether it's morton's or ocean air, they're all sit-down places. and those are going to have a harder time coming back, right >> they are, but there's a difference that's really important to understand. yes we love limited service and they have the best capabilities, but for casual dining or full service, april was better. may is even better and the distinguishing point would be those concepts you just mentioned at the very high end are tied to corporate spend.

and that's going to come back much more slowly than the leisure check. >> that's a great point, nicole. it's kelly here. i wanted to ask about delivery for all restaurants which is obviously more important than ever but my understanding is it's not great in terms of how it weighs on profitability it's expensive you're relying on third party partners how is that going to affect companies that now rely on this more than ever >> it's actually net net neutral if you have scale. and that just means a global footprint. and if you are one step ahead. everybody trying to do delivery now and catch up are still at the lower end of the spectrum. the other fact is the in-room dining, you know, is your base margin any rapid pickup to go off premise is actually better margin and then delivery is slightly dilutive to margin. but as long as those two grow lock step, net net you're going to get around the same margin. >> your favorites here are

chipotle, wing stop, and darden. explain why and remind us who's in the darden portfolio. >> absolutely. so chipotle is our top pick number one number two and number three. the fact of the matter is, they're exiting their recovery phase and going into global growth growth that will accelerate digital and units. wing stop, also great culture and unit level economics and darden, that really comes down to scale and people they hire the best of the best of the best. and all of darden and longhorn will be here in the future they will continue to take share. >> all right nicole, thank you very much for being with us. nicole miller regan. i want to draw attention to shares of disney and seaworld which are o two of the companies we might be hearing about their

plans to reopen on thursday. disney is up a little less than 4% right now seaworld is spiking a little less than 10%. >> that would be a big talisman of what could be coming. and of course some of the shopping and dining areas at some of the disney locations and universal have changed kelly, great to be with you today. >> and now over to "the closing bell," tyler we'll see you tomorrow >> thank you very much for that. welcome to "the closing bell." i'm wilfred frost alongside sara eisen. stocks back in rally mode. let's have a look at what's driving the action today hope for economic recovery as states continue to gradually reopen and congress debates a stimulus extension decent demand for the treasury's first 20 year bond issuance in decades. while fed officials show an extraordinary amount of uncertainty in the economy and the nasdaq hit its highest levels