different place. the guidance gives us more flexibility than a mandatory standard would do and so we -- that's another reason. we at this time don't think it's the right route to go. we're finding other ways to bring people back and keep them safe >> yeah. i know that's a fight with the a afl-cio. thank you for joining us this morning. >> thank you >> carl? >> we'll see you this afternoon on "closing bell." good morning, welcome to "squawk alley. i'm carl quintanilla with morgan brennan and jon fortt coming to you live from separate locations. we did have a bit of a bounce at the open largely due to boeing but settled back a bit, the markets having to handle all kinds of things. the data flow, claims no good once again, but pmi and philly fed did show some sequential improvement. more china rhetoric this morning. we're looking at the structural shift in share in retail jon, it's been argued that market is getting a little tired going into a long weekend and the 10-year back to 66 basis

points, of course we had 74 earlier in the week sort of reflects that. >> it does indeed. let's talk about it. they join us now to break all of that down. good morning, guys. >> good morning. >> tobias, your target for the s&p in june 2021 just a bit higher than where we are right now. 3160 given that, how should investors be positioned? is it just a matter of averaging back in if you're not in the market and doing it cautiously or what do you expect? >> so i think you just put it perfectly and cautiously using that terminology i think the market right now is a bit ahead of itself so i think it's a bumpier road going forward in the nearer term four key issues to worry about, one the unemployment numbers, how quickly they come back

the fact that most of us will probably be somewhat in terms of practicing social distancing not going back to normal until things like vaccines, commercial industrial lending standards data suggest tightening of credit conditions which usually means no big bounce really in the fourth quarter, and lastly, the, you know, if you kind of think about the elections and will businesses want to step up in an aggressive way in front of the elections or wait to see the results in case there are major policy changes. >> sam, at what point do political polls start to effect the markets given president trump seems to be setting china up as sort of a foil in this election year? is it going to get to the point if the president is weaker in the polls, people read something into what's likely to happen with trade 2021 and beyond

>> well, i would actually say that market itself is a poll and if you look to july 31 through october 31 of presidential election years, historically it's been a very good indicator about 85, 90% of the time if the market has gone up, then the incumbent person or party has been re-elected. if the market went down in that three-month period, then the incumbent was replaced i would actually say yeah, you could look to the polls, but at the same time look to the market as its own poll. >> yeah. tobias, i'm curious, you used the word cautious, but when you look at hows the week actually started, the sectors that were performing the best, the fact that you did see the treasury yields tick up, there's a breather happening but the so-called reflation trade, is that something that is kicking around in this market? is it attractive are there certain areas where you would be playing that? >> sure. so let's break it down two

different ways one, if you look at the market and there's been a lot of narrative focusing on the f.a.a.n.g.s. or the big, large cap tech companies, the beneficiaries if you like of the pandemic, if you look at since the bottom march 23rd, actually an equally weighted s&p 500 is equal to that of the market cap. it's been more broadly based here it's not necessarily cyclicals versus defensives. i think the thing you should look at is not just the 10-year treasury yield but tips break even what is the bond market saying about kind of cyclical recovery, inflation prospects. that's doubled off the bottom and you don't see that in the 10-year yield necessarily. the other thing i want to point out this term caution one of the reasons we're cautious is our primary sentiment metric which measures positioning not feelings we got a signal in january before the market sold off and a

similar signal in september 2018 before the market sold off we are worried the market is a bit ahead of its skis here. >> yeah. sam, how about the ratcheting up of tensions between the u.s. and china? is obviously we had that bill that went through the senate yesterday. the rhetoric gets more pointed as well. how much is priced into this market >> well, i think that the additional bill is probably or something is priced into the market at this point, but the market, i believe, as tobias implied is now in a waiting game, waiting to see what kind of an effect that the reopening of the economy will have on second quarter gdp system as well as corporate earnings forecasts, also looking towards other things such as additional announcements of virus injections, virus inoculation capabilities and looking toward

what's the possibility of a resurgence in the covid cases. i think there's an awful lot that wall street will be looking out for, but still has to wait several weeks or months to get a better read on it. >> tobias, that was my question, what sam just said, because the last two times we've tried to spike to these levels, these 2930 levels, one was in late april on news about remdesivir and then the most recent one, of course, was the news out of moderna. given the amount of money that is parked in money markets, earning nothing, completely on the sidelines, dry powder, i mean how do we process this sort of hair-trigger sensitivity to even the slightest good news regarding therapeutics or vaccines >> so look, the market is looking for good news. investors want to hear good news and all of us i think want to hear good news on the therapeutics and on the future

vaccines to kind of get back to real normal as opposed to, you know, some sort of semi normal in that respect, that is kind of one of the key signals that investors want to hear the other side of it, you talk about the cash that's parked on the side, the no alternative to equities right now, if you look at the amount of cash held as a percent of financial assets for the household sector it's not at an extremely high level. if you look at absolute high dollars it looks higher but as proportion of financial assets there isn't. in that sense there was a fair amount of capital in theenutional world we did a survey in late march and found institutions had 10% of assets under management in cash that was twice what we had seen over the past decade and higher that be in december 2008 in the midst of the financial crisis. that probably has been put to work short covering has been occurring as well.

again, i think there is a lot of uncertainty and to answer, you know, if you really believe that the economy is going to get better because of whatever drug is going to come out in enough time for earl next year, some of the cyclicals look more interesting, the chips, the banks, few of the industrials, but still too early for the industrials. >> i want your take on big tech's outsized weight in the s&p 500 right now. i mean i guess on the one hand we call it big tech but on the other they're different kinds of companies. amazon having such a big retail component as well as the cloud microsoft and apple having pcs, facebook and alphabet having huge advertising they call them tech but they're different. is that healthy for them to be weighted the way they are in the s&p or is it not >> well, i think it's healthy,

jon. you brought up a good point now we're seeing the tech sector creep up in the upper 20% area of the s&p 500 from a market cap perspective. you did mention, amazon, that's actually in the consumer discretionary sector you talk about facebook. that's in the communications services category. so it really has been sort of spread out but i think the implication of the question is, we are still being driven or at least apparently so by the behemoth companies within as a result i'm fairly encouraged by the widening of the breath that we've been seeing over the last several weeks where actually mid and small cap stocks have been outperforming large cap issues we've been seeing a bit of rotation into the value area et cetera to me that is encouraging that investors are saying there could be additional life beyond the behemoth techs >> yeah. i guess to that point, tobias

the jobless claims numbers we got today the initial numbers still very, very high but starting to come down, but now increasingly a lot of focus on continuing claims as well. how closely are you watching that metric specifically and does today's reading actually signal a peak? >> so i think we saw the peak earlier on when we had 6, 7 million. but in the sense that, you know, we think there's some duplicates in there and some fraudulent claims in there, in other words somebody didn't get through or weren't sure they got through and put through another, you know, a second claim, our economists think that the numbers aren't really 38 million but closer to 28 to 30 million in reality >> that's a big difference. >> yeah. because again, if you're filing more than once because you're not sure if it worked the first time, that is a big difference still an enormous number of people out of work we actually think about half of those will probably get back to work by the end of the year for six months, let's say of

recovery, and then we still have this significant number of people that could act as a drag on consumer activity because the likelihood of extending these really powerful supplemental benefits are pretty low. we did a virtual visit if you like to washington on tuesday talking to some people on the hill and there isn't a huge appetite to extend because particularly small businesses saying it's acting as a disincentive to get people back to work. >> well, tobias, sam, great insights as always thank you. >> thank you, have a great day >> thanks. let's get a check on where we stand in today's trade. stocks have been mixed with dow, s&p and nasdaq all moving between gains and losses currently although in the red, the dow is down 96 points. the s&p is down 20 or about 0.7% the nasdaq is down 0.9%. energy, materials and tech stocks are leading the way lower. ayitusst wh

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let's now get to meg tirrell who joins us with johnson and johnson's head of research meg? >>. [ no audio ] >> if you could give us a status check on where johnson & johnson is in its covid-19 vaccine development timeline and sort of where you see the company standing versus other efforts? we heard from astrazeneca today, they plan to start a phase three trial as soon as next month. are you still planning on phase one in september >> yes, we're still planning to start phase one in september and we closely work with the fda on

all regulatory steps towards that it's a careful designed process to go through, we started with 12 different vaccine constructs and selected the best one and we're now testing in animal models and we validated those models, they have been published on monday in science papers showing that animal model is valid and that the vaccine can protect animals and now we are challenging with a vaccine which is a proven vector based delivery where we boost the activity of the dna very much. we can therefore now test it in the month of june. and then we do upscaling and enter phase one in september we are upscaling the manufacturing in hope to make a billion vaccines next year part of the timeline in joint discussion with the fda. >> it's interesting to put j&j

timeline's into the context of the rest of the field. perhaps your starting date in humans is later but you're still talking about similar timelines in terms of having the vaccine potentially available to people early 2021 if all goes well. could you explain that difference is j and j taking more times to the lead up to human trials, being more careful how can you explain why the timelines are so different for you? >> we have definitely taken more time to make a selection of the vaccine and that shown in the animal models, that different pieces of the spike dna and different modalities to that give different protection in the animal models. that was a careful selection to go to the maximum protective spike piece we could use we have done that very carefully in the first three months of the work in parallel we have done the upscaling work so the decision

as i said before is based on the best immuno genic vaccine combined with the best productivity in the vaccine. to get to a billion vaccines you need huge productivity in your line, and very fast, you need to be careful on doing that the other point we have done a lot of work before we had four vaccines we have done it four times in hiv and rsv and zika and ebola and that learned us a lot on being very careful on selecting which vaccine you make, how you upscale it and how do you bring it to the clinic so that experience tells us step by step what we need to do and we have the blueprint applied in an accelerated way which brings a vaccine by the end of the year, hopefully at a billion level next year. >> and i want to ask you also about the construct of the vaccine.

you use it, a virus, to deliver it, an adno virus as the vekts and there was a paper in science just a week ago where dr. fauci and dr. collins of the nih mentioned one of the potential things to look at with the vaccines that uses this vector, if people have been preexposed to that virus they may have immunity to it and could affect how effective the vaccine is and needed to look at in early studies. you have a lot of data on this approach in other viruses. what is your take on that? >> yeah. we have studied extensively otherwise we would have used the same vector every time again with ebola and hiv and zika and rsv, we learned that with the vector we have it's not a fact it's in some regions it is somewhat more preexisting antibodies against it, but in

most of the regions not. that's different with other vectors like at 5 which was used five to ten years ago where you found a lot of antibodies in humans and we carefully selected this adno vector and we have not seen that even after many exposures in the same person, we have not seen building up against the vector itself. the science behind that is too complex to explain here but we have good evidence that's not the case for our vaccine >> it's greet haat to have you . in a week where investors and the general public are trying to get their arms around the nuances associated with data and studies coming out he want to go back to the monkeys for a minute how much weight should be put on the data as it relates to some of the results, some of the research, whether it's yours or some of the other reports we've gotten this week, about positive

results in monkeys how much of that can translate over to human beings >> well, it's difficult to predict for this disease because it never happened, but what we have been able to show in one of the two studies which have been published is that you can make a nonhuman primate sick, the virus multiplies, get antibodies, cure from it and when you rechallenge that animal it's not possible to rechallenge the animal, they quickly mount immunity against covid. it is an animal model to be used for challenge. the second was where dan and his team in boston, together with our folks, we tested several prototype dna vaccines which then showed protection and the level of antibodies was correlated with the level of protection there is a correlation which you can study in animal models how predicative that is for humans will be shown later, but

it's a good model for us to at least start testing whether we -- which vector, which dna and what should we use and select as the best possible immunogenic vaccine to protect people from covid. >> doctor, i have a question about vaccine distribution of course looking forward to getting to the point where that's our primary concern has there ever been a time when you've tried to distribute a vaccine to so many people so quickly and what do you expect the challenges to be in getting it out how quickly do you think it can be done? >> well, it's i think influenza is the best case there are very few in our times at least, in all times with polio vaccines, this type of efforts happen what can be done first of all i think we need to try to get to a simple vaccine which could be one dose. if we can make it with one injection that would be great.

if we can then make a massive amount of vaccines to get to all parts of the world simultaneous ply because this disease has to be fought simultaneously all over the world that's going to be essential what is also essential is the stability of a vaccine on how you can distribute it. most of the new platforms you have minus 60 or 80 celsius for storage and it's difficult to ship that around the world with all the work we have done we can now -- we have stability at a normal refrigeration temperature at 12 months that allows simple distribute, large quantities and very stable conditions and hopefully with one single dose. those are the conditions to vaccinate the entire world including the simplicity of using a vaccine in the u.s. will also be important as it can be done in pharmacies, in primary care centers, i think that's very important for large and

effective implementation >> doctor, as you talk about potentially deploying this vaccine around the world, i am curious to know the implications of the funding that j and j has from barda less than half a billion dollars. barda is contributing. we saw a deal for astrazeneca getting funding from barda and guaranteeing the u.s. 300 million doses if successful. do you have to guarantee barda they will get your supplies first and what does that mean for distributing the vaccines to other countries especially poorer countries who can't make those financial contributions? >> we signed initially the colab brace with barda we made the agreement and commitment on the long hand we will jointly fund r&d and that was the contract and johnson & johnson commits to start building the production capacity in the u.s., ongoing at the moment that kicks in early next year, so that is in full

forceongoing and that manufacturing plant can make 300 to even more million vaccines already in the course of next year so while we don't have a supply agreement, we have the commitment that we'll make the vaccines in the u.s. and they will be available. on the other hand, we are expanding very quickly in the rest of the world in europe, asia, to build additional capacity to make sure everyone can get access almost at the same time. so the relationship with the u.s. is only a very positive one where the vaccine will develop faster because we have that cofunding but at the same time j&j, we on its own, we are working with other partners in the world to produce, to go and produce a vaccine in europe, asia and also for the countries we'll make an effort to also for the poorest countries if the world to get access to the vaccine. >>, doctor, we appreciate you being here and stay tuned as you

work towards the clinic september. thanks again >> thank you >> carl, back to you >> all right meg, thank you very much we're back to 2941 below yesterday's low on the s&p let's get to sue herrera and get a coronavirus update hi, sue. >> good morning, carl, good morning once again, everybody. michigan's governor has signed an executive order reopening parts of that state's economy next week. retail and auto show rooms will be able to resume operations by appointment. whitmer is lifting bans on nonessential medical and denl procedures president trump is scheduled to visit a ford motor plant in michigan making ventilators for coronavirus patients. updated guidance from the cdc says the coronavirus may not spread that easily on surfaces the agency added that it may be possible to get the virus by touching a surface although it stressed it is not thought to be the main way. and the tsa is implementin new procedures to limit contact

between passengers and officers ahead of the memorial day weekend. tsa is telling performings to hold on to your boarding passes, remove food from your bags and urging travellers to wear face masks. head to cnbc.com for more on the coronavirus impact and what it's having on travel morgan, i'm going to send it back to you. >> sue, that's right i'll take it still wondering what's going to happen to the temperature checks thank you. all virtual ipo is next. the ceo of select quote will join us. that company goes public today and just gone publicand you ca see right there it's already up 35% after pricing at $20 a share. we're going to bring you that after this break stay with us woman: my reputation was trashed online.

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amazon did cross on some interesting headlines from the journal. let's get to deirdre bosa on that. >> it's been quite a rub, carl,

running 35% year to date, hitting a fresh all-time high in yesterday's trade. the headlines from the journal, postponing its prime day i will get to that in a minute how amazon got here, it's been firing on all cylinders, its e-commerce business, of course, as people order nearly everything from home, there's also its cloud business getting a boost from more people working from home. prime video taking a piece of the streaming pie. groceries, this is a space that amazon has been trying to get into for over a decade, seeing some real traction now as people order more of their groceries. amazon is really operating at full throttle here but also spending a lot billions and billions of dollars to do so and to get back to prepandemic levels this morning the journal reporting as i mentioned that amazon is postponing the lucrative prime day shopping event to the fall but may not be able to hit the one or two-day shipping time that many of its customers have become accustomed to there's labor unrest that has

been growing, especially among its warehouse workers who are demanding more protections amid the pandemic even here amazon is taking matters into its own hands earmarging at least $4 billion for the coronavirus response a billion of that to develop its own testing program which morgan stanley says could be a game changer and even be a new revenue line for the company if it does so successfully and is eventually able to license it out or share it with governments or other businesses. there is at least one challenge that amazon may not be able to innovate its way out of and that is anti-trust scrutiny we know ceo jeff bezos has been called to testify to congress, but the company declining to commit him and it's unlikely lawmakers will accept anyone else back to you. >> yeah. it's going to be one that we continue to watch and you will report out thank you for bringing us the latest on amazon let's take a quick look at where we stand in today's trade more

broadly in what's a down day for the markets. we've got a newly public company, select quote, which just ipoed at the new york stock exchange, virtual ipo, up 39% right now. the ceo is going to joins us so stay with us (soothing music) - did you know that americans that bought gold in 2005 quadrupled their money by 2012? and even now many experts predict the next gold rush is just beginning. so don't wait another day physical coins are easy to buy and sell and one of the best ways to protect your life savings from the next financial meltdown. - [announcer] today u.s. money reserve announces the immediate release of us government issued 1/10 ounce gold american eagle coins for the incredible price shown on your screen. these gold american eagles are minted at the united states mint, and right now they are being sold at cost for the price shown on your screen. - pick up the phone and call america's gold authority u.s. money reserve. with nearly two decades in business,

over a billion dollars in transactions and more than a half a million clients worldwide, u.s. money reserve is one of the most dependable gold distributors in america. - [announcer] today u.s. money reserve is releasing official gold american eagle coins at cost. for the incredible price shown on your screen. these government-issued gold coins are official us legal tender made from solid gold mined right here in america and fully backed by the united states government for their gold weight purity and content. do not delay, call now to purchase your gold american eagles for the amazing price shown on your screen. gold is now on sale at prices unseen in years and this year could be one of the greatest gold buying opportunities of all time. call now while vault inventory remains. as one of the largest us gold coin distributors in the country. us money reserve has proudly served

hundreds of thousands of clients worldwide. don't wait another minute, call now to purchase 1/10 ounce gold american eagles for the amazing price shown on your screen. in case you missed it, shares of facebook coming off another all-time high after launching a new e-commerce feature this week. facebook shops wall street bullish on the announcement morgan stanley saying shops could be a multibillion dollar opportunity for facebook and make them a competitor to amazon and google bernstein took it higher saying it's facebook's entrance into a trillion dollar market sheryl sandberg joined jim cramer to talk not only about

shops but what the company is hearing from small business on the impact so far of covid-19. >> this is not just a health crisis, this is an economic crisis and it's a crisis for small business small businesses create two-thirds of the jobs in this country and i know that's why you're so focused on them and everyone should be we put out a report this week that state of small business business, which says that 31% of small businesses have stopped operating entirely and another 11% believe if things don't change, they will go under as well this is the worst number, half of small business owners don't believe they will be able to rehire the people they had to let go >> yeah. now you can see here facebook shares this morning trading above $230 a share, up about 1 i .3%. stay with us

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select quote going public a few moments ago in an all virtual ipo at the new york stock exchange price is at 20 opens at 26.20 under the ticker slqt tim danker is the ceo and joins us this morning. tim, congratulations it's good to have you with us. >> thanks so much for having me. appreciate it. >> just got to start with the

virtual thing, it's good to see an ipo happen, but is the experience and the process much different virtually than it would have been if we were talking to you on the floor today? >> well, we certainly probably had a little different plan in mind around our show, but it's great and exciting to be a first in terms of a virtual and it's been in the works for a long time and it really reflects a lot of hard work of all of our associates we've been building the business with 35 years, it's been focused on providing consumer solutions for what they value most, their families, their health and their property, and being able to launch thisipo in this type of environment i think really reflects the solid fundamentals of the business as well as the resiliency we're very excited >> i think a lot of viewers are familiar with your ads which you've been running on our air a long time. you are making the argument even

in the framework of this virus, that the digitalization of insurance continues, even accelerates as people try to compare products virtually can you talk about that? >> that's right. our business model is what's called a direct to consumer business model where we are really combing a hybrid model of both digital as well as human advisory services and that's been part of our model for 35 years when we launched really the first direct to consumer term life exchange in 19 5 with our founder and chairman, and we've extended that into two other high growth verticals, senior health care and auto and home senior business is riding the wave, strong demographic tailwinds, has over 10,000 seniors took 65 every day, and the popularity of medicare advantage and medicare supplement plans that we distribute the way consumers want to interact is shifting to your point being able to do research

online but maltsly connect with a highly skilled agent to help guide them through the process. >> yeah. and certainly you seem to be like right in the sweet spot in terms of the industry which i think is being reflected in hows the stock is trading up 40% right now. essentially acting as this match maker between the insurance companies and consumers taking the commission, given all the impacts we're seeing right now from this coronavirus pandemic, what has consumer activity looked like and what has the ability to strike deals with these these insurance companies meant? >> great question. with respect to covid we have seen heightened consumer awareness for insurance products, especially the health and protection products that we distribute so we're seeing that in terms of kind of our lead generation and marketing capabilities and i think now more than ever consumers want to make sure that

they're on the right plans for their specific needs i would also say, you know, regarding the shift in terms of distribution, you know, historically there's been a lot of in home, across the kitchen table selling of insurance and our model, consumers benefit from the ability to do research online and then connect over the phone and we think that trend is going to continue to exist for some time. finally i point out we're excited about the ipo. it gives us the capital we need to super charge growth for the company and part of that is really hiring additional highly skilled agents and certainly there's a lot of great hard working americans that are out of employment right now and one of the things we're seeing is we're seeing very strong job applications we're up over three times our normal levels and we look forward to being able to help in our own small way. >> hey, tim. you talk in your s1 quite a bit

about analytics and the need to control your marketing spend and just deliver a better experience through using data and your proprietary algorithms i haven't been able to figure out to what extent you're active in the cloud, to what extent you're using a.i. tools from some of the major platforms to enhance that talk to us about your strategy there? are you partnered with any major tech providers in the use of a.i. tools and how do you intend to get smarter with those algorithms to enhance the business >> yes we've made significant investments in our technology stack, not only things that are helping our agents become, you know, more productive and tools that ensure that our underlying clients get on the right plan, but also really made a significant investment in data science. that has helped us really, you

know, helped generations and customer retention to cross-sale capabilities given the breadth of our three different insurance lines. with respect to who we partner with, we've worked with amazon in terms of cloud which has allowed us to be very flexible in terms of our approach to technology >> lloyds of london recently came out and expected or i guess called that the coronavirus could be the largest loss on record for the industry. where do you expect -- i realize this is a broad question given there are different lines of coverage that you're involved in, but where do you expect rates to go from here? >> with respect to our, you know, our carrier partners, i think they're obviously wanting to work with us on an even more tightly and integrated level it's always been a hallmark of the companies, the fact that we're managing over 50 different high-quality, blue chip insurance carriers and so we continue to, you know, work with them to help them through this

time and also they're looking to continue to grow their businesses as well and direct to consumer business like select quote have proven to be highly resilient and i think we'll continue to partner together as we work through this together. >> finally your do point out that competition from government-run health insurance exchanges could increase your marketing costs and reduce your revenue. is the degree to which the administration continues to challenge obamacare is that considered a risk factor or a potential tailwind >> you know, we wouldn't want to speculate exactly how that could play out, but i would say we've operated the business for 35 years in all types of economic environments and have done very, very well. ultimately we believe the consumers really value choice and we play a critical role in that and really believe we'll be

able to do very well in multiple types of environments. >> tim danker, congratulations on getting this done this is how we're doing things for now, but look forward to seeing you maybe on the floor one day soon thanks. >> we look forward to the trip to new york and really appreciate the time an opportunity. thank you. >> coming up, the president of boston university is going to join us next on plans to bring students back to campus in the fall we will discuss it after a quick break. tempur-pedic's mission is to give you truly transformative sleep. so, no more tossing and turning. because only tempur-pedic adapts and responds to your body... ...so you get deep, uninterrupted sleep. during the tempur-pedic summer of sleep, all tempur-pedic mattresses are on sale! during the tempur-pedic summer of sleep,

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yeah, everything is runningis smoothly with the now platform. (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you. welcome back all 50 states are, at least, partially reopened we're taking a closer look at how the easing of those rules is

impacting the health of the country. the lighter color shows states with increases the darkest shows states with increases above 80% since opening on may 11th. washington state has seen a 12% increase in new cases. 208 cases per day. week over week, cases have fallen 9%. testing in the state has increased about 13% with 6% of tests returning positive taking a look at wisconsin since reopening on the same day, the state has seen a 31% increase. that's a 25 3% increase week ovr week testing has increased 45%. 8% of those tests are returning positive results north carolina has seen a 50% increase in cases since reopening on may 8th average of 517 cases per day they are seeing week over week increase of 19%.

testing is also up significantly with 6% of cases returning positive there to the state of massachusetts with faculty is eyeing for students to be back on campus, joining us is the president of the university, robert brown thank you for being with us today. >> thank you for having me it's a pleasure to be here >> you presented a four phase process to return students and faculty to the campus for the fall walk us through the effort and what needs to go right in the coming weeks for this plan to materialize. >> it is a complicated plan. phase three is the key we're in the beginning of phase one where our research and clinical operations will begin

repopulating next week phase three begins with the repopulating of the campus it will be a very different college experience for our students it will have different living condition condition our residences and very different kind of educational environment where we deliver classes residentially and remotely simultaneously using a learn from everywhere technology that we're developing inside the university the key to make this happen will be testing

symptom tracking, case management, isolation, contact tracing have to be be implemented inside the constitution to make this work over time. it's going be very different living condition and classroom experiences. >> given the fact it will be such a different experience, what is your expectation in terms of enrollment from student heers s here in the u.s. and foreign students >> we're trying to kraecreate te safetiest environment we can conceive of. we believe from the data we're getting from our students and parents is students want to continue their education they want to continue it in the residential mode because it's the best learning experience

our hope is the majority of our students will want to come back and be with us it's about the situation from travel from their home country to the united states and the visa situation whether or not they will be allowed to come into the country with a student visa we know a lot of our international student, especially our graduate, professional students are still in the united states they never left. >> question about how the campus will culturally work unless college students have changed dramatically in the past 20 years since i was there, a lot of students will not socially distance. what is your plan as far as what to recommend for students as far as how they gather and how large

a group theys they gather. is there any plan to make sure professors stay a certain distance away for safety how are you thinking through those things >> you have to think through all of these issues. we know that humans do not like to socially distance what we have got to do is create the right kind of environment where students can farm and the word we're using is households so there aren't going to be a group of student who is we will socialize and will be treated together and will be treated in testing and tracing differently than the whole student body. we have to create an environment where students have some collection of people they can be close to that's the residential experience at the same time, what you're trying to do is keep those groups from mixing in terms of -- from an infection point of

view mixing with the whole student body all the time. staff is where the most vulnerable population. our staff that is more senior than others. we have to get to a pients where they are comfortable in the classroom or let them teach remotely >> do you see any structural shift in demand for a college degree because of financing or just the appeal or usefulness of having one in this new economy i wonder to what degree that affects the way brown thinks about admissions >> boston university the way we're thinking about things and everything i'm thinking about is need nor education and the value won't be

changed by the pandemic long term i say when we're on the other side and have an effective vaccine. we saw this in the spring when we forced to go into remote learning mode. what we're going to do is capture that knowledge and push that forward we'll be much more flexible on the other side

>> we definitely are i'm curious, the fact that bros on the is major brawn area, it's a big city and a big college town, what are your conversations looking like are you clab rating with some of the other universities and major entities given the fact that you can't realistically just keep students on campus quarantined >> one of the things in the governor's recovery process, he stood up higher education working fwrgroup which i'm a mer of the university of massachusetts has been working oen a frame work that would guide people to come back.

we have a lot more in common in terms of the different kinds of environments we're establishing. >> robert brown of bu, thank you so much for your time. it's going to be a fascinating summer and fall. we appreciate it very much we're well off session lows here, let's get to the judge in the half thank you very much. our breaking news coverage of the markets does continue now. good to see everybody today. our top story this hour, the risk and reward of buying stocks as the major averages try and creep back towards new highs we'll discuss and debate that with our investment economy with me as always today