theme parks. disney world and disneyland obviously. you saw that disney shanghai opening at 30% that propelled the stock further. >> stock just blasted up from 100. from 100 bucks you know >> it did. >> josh brown? >> yep if we're saying today's rally about the reopen riddle me this -- why is slack higher? it's not a work from home stock. it is a work from anywhere stock. and the street is finally figuring that out. >> right. >> this is not a stay home forever quarantine name. it is going to work even in the reopen because people use it and love it. >> good stuff, everybody kelly, we apologize for running into your time period but take it away. >> what's a couple seconds between friends? thank you, scott hi, everybody. welcome to the show today. rally on stocks are surging on optimism of reopening the economy and vaccine news the s&p back over 3,000 and back

above the key trend line and we will have the latest plus, play ball. we'll speak with the chicago cubs chairman on when baseball's coming back and the battle with players over that. >> later, could it be? a market strategist can make the case for a v-shaped recovery and much stronger stock market than most think we will have all of that for you. first the rally. bob pisani is here with more for us bob? >> we are back over 3,000, kelly. that is essentially the 200-day moving average for the s&p 500 sitting just off of the highs today and i think the break over 3,000 is certainly important psychologically. i mentioned just off the highs s&p midday getting stronger and then little bit of downside. mr. kudlow came out saying the trade deal is no longer a priority saw we dipped a little bit and not dramatically broken the overall momentum this is about reopening and the

vaccine. look at the travel and entertainment stocks ccl, carnival here, essentially double $8 a short while ago united air up dramatically that was $18 a month or two ago and doubled, too live nation $25 a month and a half ago so you see the stocks are all rallying here. dow leadership is banks and industrials. these are the sectors that have been lagging and doing the best the last week or so and all to the upside today fang not a big contributor microsoft down today so why are we rallying? remember the buckets of three or four parts of the market or issues that always move the market reopening is broadening out. the vaccine, we have had the merck and novavax advances or hopes and mcconnell talking about a fifth relief package likely and it moves the market no wonder we have a nice rally back to you.

>> we have the new york stock exchange partially reopening the floor today. but they're having only a few people on the floor and not letting you come to work on the floor if you come from mass transit and implications of the rest of the city coming back to work. >> sure does they lift that, that mass transit ban. can't show up if you take a mass transit once the lockdown expires but right now taking the subway you can't get in. it was a coup to get the governor today kudos to them, important development but still a lot of restrictions and a quarter of the actual floor brokers are back 80 people, quiet overall those that have the big posts there, they're not back yet here and probably won't be for several weeks and doing temperature checks, not coronavirus tests and going to require to sign a legal

indemnification going into the door when do we get a broader reopening? i think they wait a couple weeks. make sure there's no reinfections on the floor and then talking about bringing more people back and the people coming back bigger companies, designated market makers, jpmorgan and it remains to be seen how comfortable they are with everybody coming back, it is a gradual process. >> you have to sign a legal indemnification walking through the door i also wanted to point out a tweet of jay woods who's a floor guy not back to work yet and had an interesting point, if you bought the market on the day that the nyse closed the floor and then sold it when they reopen you'dbe up 25%. the market has already priced a lot of that in. >> we're fortunate that we have gotten good news on the vaccine and treatments we have gotten tremendous news in terms of the aggressiveness

of the fed and the stimulus program and so far the reopening is going well. remember, pain trade is up, a lot of people thought it wasn't going to roll out so smoothly and people are caught on the other side right now that's fueling the rally here, kelly. >> talking to the next guest about whether you should sell the market now or quote/unquote at the top we appreciate it bob pisani with the latest there. we have factors into the market today good news potentially on a vaccine continuing to help the rebound. how much of that success is already priced in as the s&p crosses the 3,000 mark today above the 200-day moving average. i'm joined by two guests it's great to see you both jim, let's talk about some of the levels is it a big deal that the s&p is above the 200-day moving average for the first time since march 5? >> for me not so much. i'm more fundamental and

technical but i think it is important for the market as a whole because i think there's a lot of technicians that certainly look at that as overhead resistance. we have broken through that. i think it adds with everything else you just mentioned to the level of optimism. you know like i said there's a lot of good things going on this is the first time in the crisis that the news flow is predominantly good and if you think ahead with reopening, it's likely to remain that way for a while and that's something new in this crisis really facing bad news the whole time and the real issue's going to be at what point is the whatever optimism is coming down the road, what point is that priced in? it is not a straight line but i think we started the new bull market and a new economic recovery and i'm not sure that it's going to peak out for good here i think it's still got more upside. >> janelle, looking at things from the fixed income side

do you get the same optimism from some of the these market moves? because if anything people point to the 10-year and say we can be hopeful about the shape about the rebound this year and suggesting a tough slog in the years to come. >> no, we do see the optimism, we see it today with credit spreads coming in, especially in the cyclic am factors. energy, consumer discretionary, rates higher so we see that things continue and fixed markets underperformed equities a little bit in here and comes back to market function and liquidity and for optimism is what the fed has done and continues to do. there's a number of facility that is have been announced that are being implemented and withey there's going to be near term support for a lot of segments as we look forward. >> you are interested in one area that a few of the fixed

income guests recommending lately making sense that's interesting every time you see the headlines and that's municipal bonds. is this predicated on value to be found because the buying is still yet to begin actually, as i ask about that, let's pause for a moment to bring in rick santelli with an auction of 2-year treasury notes. >> yeah. you know, once again, a very solid auction. not too out of the ordinary but c-plus is the grade. 44 billion in 2-year notes kicking off 127 billion in supply the yield at the dutch auction .178 and we had above average bid to cover at 2.68. indirects at 53.1 was just 3% higher than normal only real lacking area is direct bidders at 14.8. dealers take 32.1%

roughly 10 auction average and 5s and 7s to follow. solid new home sales today and confidence held up c-plus auction isn't bad short maturities are boring for investors. 5s and 7s should get more interesting, kelly back to you. >> thank you, sir. janelle, back to you quite simply, why municipal bonds? >> i think when we look at the facilities and what's been announced and not been implemented we have not seen municipal facilities implemented and probably more room to go in terms of fiscal support and looking across markets, risk of defaults, circles of default rates and go down to the securities and we do think that there's value there and liquidity continues to flow to the markets those opportunities are going to be realized and an attractive high for investors to look at the segments. >> jim, you were explaining why

you're more optimistic about the market and you think that we can continue to rally from here and said at the very beginning that made me pause because any time that the news flow runs optimistic it is like the economic surprise index. once everything is surprising to the upside it can only last for so long and then mean reversion and then maybe moving back down. what if we experience that for a period of time >> i agree with that, kelly. this is the first time you could say optimism is about in the markets and whenever that comes around it means risk is probably up for a first time. i don't think it's a straight line we'll bounce, have other periods where news is disappointing. that's true. we maybe have started a fresh bull here. an indicator i wrote about this morning in the letter not out there is that in april and then it got even better this morning

with the release of the conference board's consumer confidence, the expectation component now in consumer confidence exceeds the present situation component and every time since 1980 that that's happened it's marked the start of a fresh bull market so we went from -- this is the first time expectations in the future, consumers are more confident about that than the current. happened in the early '90s, early '80s, early2000s and her it is again happening. i think it says something that people now are feeling better about the future than the present. that's typically the start of a bull. >> interesting jim, you always bring a good anecdote for us just like that thank you both for the discussion today we appreciate it. we have headlines coming in from jamie dimon of jpmorgan speaking at the global financial services conference.

wilf >> yes it is ongoing. the presentation let's listen in to what he said about the dividend at jpmorgan >> recession but a lot of banks in particular, companies but banks continue to pay outsized dividends going into a crisis and depleted too much capital by doing that remember, this time around the real capital have been used by buying back stocks and people are misguided with dividends it is a drop in the bucket so we announced the dividend this quarter less than $3 billion .15% of the capital days if you take the base case, the kind of base assumption that there is out there, you know, we'll earn quite a bit of money this year. down a lot but that's a lot of money. why do you cut your dividend and then increase it right away? to meet that obligation of shareholders you don't really need it with excess capital and the better course of action was to wait

to see if you go -- if the recovery starts and i think we have a good idea when we report earnings then you don't -- never need to cut the dividend if by any chance that's clear that this is going to get worse dramatically then, of course, the board will take up the issue to say what should we do how should we do it? if they have to -- if a board is mature they consider that but you have to have a pretty bad economic environment i think for banks to justify the boards to show to cut it now. >> jamie dimon there we missed the key. it is important for companies to sustain their dividends. on buybacks, he said doesn't expect them to come back any time soon but some banks he said might do it in a small way and want to be the other side of the recession to see that. the stock price at session highs. relative to expectations in the headlines on unemployment

numbers that the consumer is in relatively good space and hopes the consumer will come back strongly as and when people go back to work if they're furloughed on mortgage forbearance, optimism that they'll be able to pay down what they owe fairly quickly when they start repaying it and on the investment bank trading he said as good as q1 so far in q2 so those strong sort of offsets to the earnings in q1 perhaps coming through in q2 it is ongoing, the presentation. the share price up sharply dragging the bank index up intraday. >> we had a strong performance prior to the comments. it's not because of this conference, presumably that's the trade we have today. >> absolutely. i think the underperformers benefiting with hopeful and fairly hopeful that the economy

reopens earlier than thought and cyclically linked to the economy like banks and underperformed like banks that are enjoying a -- don't forget the kw banks down sharply year to date realtive to the outperformers like the nasdaq. >> absolutely. interesting to hear him explain the dividend and having coverage thank you very much. jpmorgan shares up 8%. coming up, tensions with china heating up as the u.s. warns of a potential sanctions what's at stake for u.s. companies and the whole trade deal if this continues plus, why one market strategist has a v-shaped recovery is possible. before we go, take a look at the retail names also surging today. capri holdings up 12%. ralph lauren adding 10%. macy's up and gap around $9 a share. "the exchange" is back in a couple

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welcome back to "the exchange." china's pushing back against possible u.s. sanctions over the new security law for hong kong the state-run newspaper calling the u.s. threat, quote, but but bluffing will it heat up faster than others think joining me is fred kemp. great to have you here i know you've written about china maybe using a digital

currency to reclaim the place in the global sort of financial system if you will but i want to start on the political back and forth over the fate of hong kong and how involved do you think the u.s. will be >> president xi is wagering that the u.s. has so much on its mind right now dealing with covid-19, dealing with the elections that he can actually accelerate in any way he can the geopolitical shift in china's favor and hong kong certainly is an important piece of that and they'll watch how the u.s. responds to that and if they feel they managed that response then you have to watch areas more serious like taiwan but as you mentioned, i think that you're seeing president xi move forward on a whole slew of various issues and it is all about using what was a setback which was covid-19 started in china to turn that absolutely into an opportunity. new investments in technology,

emerging technologies, ai, new investments in the military, encrease the military spending to 9% this year and then launched an experiment in digital currency in four cities in april and that's put them way ahead of the united states in terms of creation of anything like a digital dollar. >> so should u.s. investors watch this and go, okay, sounds great? bottom line do i worry about the supply chain and sell nike shoes and starbucks locations and apple iphones in china or is the relationship changing? is the way that i think about this country need to be different? we know that's taking place so i guess the more concrete question, too, is what happens with the trade deal? it's hard to understand if changing the trade deal would cause major disarray again or become another event for us to deal with on the u.s./china front. >> yeah. i'm not sure you want to listen to me on markets

hong kong market is up today or who would have thought >> right. >> u.s. markets are where they are looking at the overall economy. so i'm not quite sure what's going to drive traders the decoupling of the u.s. economy of the chinese economy here's the problem china coming at the grab for global and political dominance in a patient way with a strategy we're countering it without a strategy we should be pulling the stimulus money into funding new technology, digital technology, education and science and math and engineering. we should be pouring this into the future right now but we are so focused on the present we are not building the future. china isn't willing to set a growth figure for this year in its national people's congress but they're interesting in the future so i would say to investors to keep watching the chinese market because the notion that the u.s. can actually get other allies and other friends to decouple with

us i think is farfetched. >> yeah. >> too many people have too much at stake with china to pull out of that market. >> not just that but even as you describe china has this vision and plan and for global dominance, you know, i don't think america -- does anybody here want to raise their hand and assert that should be a goal to pursue? how do you articulate what the real threat is to american interests? obviously there's a good part of the country that fundamentally understands this and not finding this viewpoint in circles in washington or in think tanks or the media. just not -- it is not seen as an important thing for the u.s. leadership to be thinking about. >> well, there's a comic from the 1960s where there's a character named pogo and very famous quote, we have met the enemy and he is us and i think that's what the u.s. has to think about right now. polarized politics

the fact that we're not investing in infrastructure the way we should be and china is investing in infrastructure. if we did all of those things we'll do just fine in the future authoritarian structures tend to be brittle they have a debt load that's built up they are having -- they're going to lose a lot of their supply chain and manufacturing base because people are going to diversify. people are going to maybe not climb entirely out of the chinese market but certainly hedge their bets elsewhere so we just focus on ourselves right now and took care of what we can stimulate then i think we would be okay. >> arthur brooks this morning said the way to handle this like adults is for the u.s. basically to slowly and gradually decouple sort to speak and especially in those industries of national importance like pharmaceuticals. do you think that's the case and there's other places to say we can keep on supplying stuff in china, selling in china.

the rest is not our problem. >> the motinotion that 80% or 9o antibiotics sourced with chinese materials, who didn't look at that earlier we should decouple in areas of national security importance and then limit the areas, make them in the militarily sensitive areas and don't expect that the entire world will go along with the complete decoupling from the chinese economy. a lot of our top trading companies or number one or two trading partners is china as the other partner. the other thing arthur brooks said which i thought was really smart is we are carrying a big -- sorry we are speaking loudly and carrying a small stick instead of speaking quietly and carrying a stick. we have to talk less and get

down to coming up with a long-term strategy as we did the soviet union and this is a competitor a lot more dynamic, a lot more economically nimble. a lot stronger on the global stage than the soviet union ever was. >> i don't think we're going to be speaking softly with the campaign season upon us, fred. but your point is taken regardless. >> that's a real downside, kelly. biden will try to outdo trump. i hope one of the two comes up with a strategy that can last. >> yeah. fred, always good to check in with you appreciate it. >> thank you. we actually have breaking news right now on apple store openings josh lipton has more on that josh >> kelly, apple just now announcing to be opening more stores, reopening this week here in the u.s. they say a total of about 100 more apple stores reopening, crisscrossing the country from california, oregon, to indiana that would bring the total to

about 130 stores in the u.s. that have now reopened apple operates 510 stores around the world. 271 in the u.s. alone. most of these stores will reopen for curbside and store front only so meaning customers don't enter the store and use the stores maybe to pick up orders or drop off devices at the genius bar and apple saying we are committed to reopening in a thoughtful manner with the health and safety of the cust mores and teams as top priority and look forward to seeing the customers again soon back to you. >> thank you, josh. coming up, play ball that's the hope for fans, players and teams as states begin to reopen. we'll talk about what we can expect. plus, the work from home double tax trouble a look at why the shift to remote work is creating tax headaches. you can listen to us on the

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welcome back let's get the very latest in the coronavirus pandemic over to sue herera for the headlines. >> hello, everyone hoe's what's happening st. louis mayor is joining a group of missouri officials calling on the lake of the ozarks memorial day partiers to self quarantine for 14 days. after ignoring social distancing guidelines over the weekend. images of a jam-packed pool party in the region led officials to issue a travel advisory and urge local employers to screen workers. sweden is rejecting mortality measurement showing it has one of the highest death rates in the world the country is faced criticism for the more lenient approach to the outbreak allowing restaurants and schools to remain open. didn't tests are considering uv light technology to reopen

the practices. it is already widely used as a disinfectant in hospitals and larger medical facilities and more on that at cnbc.com. >> such a hassle going back now for the routine appointments. >> absolutely. >> thank you. the shift to remote work is creating new tax headaches for both companies and ploys of course it is! ylan muoy joins me with the important details. >> working from home can lead to double the tax trouble and that's because for employees where you pay state income tax depends on where you work and not live for example, you might work in englewood cliffs, new jersey but live in new york city. we are all corking working from home and means that technically new york would have the right to tax all of the income that you earned while you were logging from the basement, trapped in the husband's man cave and wearing your bathrobe.

the govern knorr cig nalged he does intend to go after every one of the dollars as he tries to close the state's massive shortfall. for businesses with a remote workforce means they could face corporate income taxes in the state. so the question is whether having one remote worker could constitute nexus for the state to start imposing tacks. of course, kelly, there's legislation proposed on capitol hill for these issues. no movement on them yet but perhaps the pandemic could change that dynamic. >> this is memorable and especially with the bathrobe, ylan thank you very much. >> very cozy. >> i could use one we appreciate it check with your employer. another streaming service hits the screen with hbo max launching and with stoppages and states reopening, is the launch on time? we'll speak with the man in charge jix plus some staggering new housing numbers that suggest the recovery is closer than we

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especially in times like these, strong public schools make a better california for all of us. welcome back to "the exchange." dow's up 670 right now also by far the outperformer of the major averages let's go to dom chu for a check on that. >> the bulls are in charge with the dow, s&p and nasdaq up about 1% to almost 3% overall. for the dow, up nearly 40% since the lows we saw on march 23rd. if you look at the s&p 500, it

is now above the longer term trend line and see the 200-day average price at 3,013 you have consumer staples, technology and health care the relative laggards today. a few of the stocks to watch,en cluds citizens financial, a regional bank leading the financials higher. optimism and slightly more constructive interest rate environment helping there and then oil and gas companies like chevron up big here and catching a lockdown easing tailwind as oil prices rise on prospect of more demand and then airlines like american up as travel and leisure companies try to work off depressed levels there was a time when we used to say oil rising prices bad for airlines but a rising tide lifts all boats. >> thanks very much. america is still waiting for the return of baseball

so far there's a proposal for an 82-game season starting in july with no fans the players have yet to sign off on it, though. the financial damage is done for many teams the cubs estimated to lose at least $100 million even with half a season if no fans here to talk about the path forward is tom ricketts, co-owner of chicago cubs and great to have you. welcome. >> good to be here as you can see, wrigley field is not quite being used to what we expect it to be used for this year instead of playing the marlins tonight we have turned the ballpark into the largest food pantry in chicago with the partners. >> fantastic yeah we hear so much about food insecurity right now the leans for the food pantries insane so that gives the important community function meantime and everybody, tom, saying what can we expect to be back in the stadium for ball

games or can fans expect to be back in the stadium this year? what are the players going to accept there's some big stumbling blocks here. >> there's a lot of questions. i think everyone is intent on getting baseball back on the field even without fans but there's a lot that goes into that first and foremost is the safety of the players and the other people in the park in the games without fans and the league has put together a very thorough safety protocol, 67 pages, being reviewed by the teams, being reviewed by the players' union hopefully that will get to the paint that everyone's comfortable with it and comfortable of a safe work environment. hopefully that will be enough to get each of the local jurisdictions, different states or cities to sign off so that everyone will feel like it's safe enough at least for the players and personnel to go and then we have to work through the

finances of it all. >> right that's tricky because the economics are super interesting here 70% of the revenues in like yours come from game day sales and now all of a sudden you won't have fans. if you play the games don't get that revenue and have to pay the players, you oar going to be in a huge hole so are you trying a way to pay a lower percentage, something to say we appreciate you're here or are they saying, no, it is it has to be 100% for us to show up? >> that is the discussion. ultimately the league as a whole is looking at about $4 billion of losses and that's particularly hard on teams like the cubs we do get 70% of our revenue from tickets, parking, concessions and 30% of the revenue from media and that's only part of that is national media so the local television we already lost half that season so in a best-case scenario we're

looking at recovering maybe 20% of our total income. that is where the rub is and where the discussions will go with the players over the next few weeks. >> my question is, would you even want a season under those conditions would it be better to say wrigley field this year is a food pantry? >> hopefully it can be a no-fan ballpark and food pantry at the same time but, you know, we'll have to see how it goes but we like to see baseball back, like to see the team back on the field. i know the players want to play. the manager wants to manage and i know even if it is on television only i think people want to see baseball back. >> what would you say in terms of the other sports considering? the nba reportedly looking at everybody in district. i think baseball is looking at maybe some regional opportunities to sort of clusters where people would -- they're allowed to take the bus

back and forth no locker rooms. this would be very, very different experience. >> the nba and nhl have a totally different set of facts and got through about 80% of the season so they can finish up with a tournament or just play some games in one location and wrap that up we didn't even start so the financial impact on baseball is even more dramatic than the other sports but talking about the schedule, i think the league is thoughtful and creative of ways to get us playing again with schedules and maybe involving less travel. but we want to play in our own ballparks and not a tournament setting like the nhl or nba are looking at those discussions are ongoing and hopefully soon we'll have resolution on this. >> what would you say just best guess to have a baseball season this year and that we have it as soon as even july 4th? is that out of the question? >> no.

not at all it comes down to how quickly and efficiently the league and the union can get together and kind of hack through the issues. >> right how much maybe the players are willing to accept to show up and so on and so forth we know that the damage -- >> certainly an issue. >> yeah. and the financial losses, issues for another year and certainly a big headache tom, thank you very much for joining me today good luck and thank you for doing what you are doing serving the community. >> thank you. >> chairman and co-owner of chicago cubs. billionaire, 270 of the restaurants open, 2 casinos, the pulse on the economy and ask him about plans for the basketball season coming up. hbo max debuts tomorrow, the most expensive streaming service to hit the market and entering a crowded field. we'll talk to the owner and chairman about timing, content

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welcome back stocks are soaring today and have been on optimism of potential coronavirus vaccines and the reopening front. the s&p climbing back above 3,000 first time since march is this a signal that a v-shaped recovery is possible joining me is michael darda. meekal, welcome. . >> thanks for having me. >> i feel bad because this was such an out of consensus view a couple weeks ago and by the time we have this discussion today don't you think it's almost become people don't think you're as crazy as they once did i bet. >> well, we'll see about that. certainly the market has been making a v-pattern upward and

there's been a tremendous amount of skepticism about that and just now starting to see the data turning and obviously reporting on the better than expected housing numbers but seeing in other places, too, as reopenings get under way in virtually all states now and seeing activity bounce off of very low levels. >> something i think fundamentally for people to know about is from comparison of '08 back then the fed's efforts didn't get to the supply growing measures does that say not only is a v-shaped recovery possible but what it looks like after that, will we have a weak economy for two years? >> i sure hope so. it does appear the fed is getting more traction this time

than the opening innings of the crisis response in 2008. if you remember the back half of '08 the fed's balance sheet went up by two and a half fold and barely moving forward. 4% or 5% growth. this year the fed's balance sheet up about 70% but the broad liquidity measures up about 20%. so this is much more bang for the buck than what we saw last time now, the velocity of money is still depressed. that's low market interest rates. we have a sudden and dramatic collapse in the economy taking shape but the recovery off of this collapse should be much more vigorous than the recoveries after the last three recessions and what commentators seem to be keying off of and probably not a good model for the upswing in front of us. >> what do you -- how do the models incorporate an idea of a ton of debt on the corporate

side for coronavirus and repaying the debt means they're not growing profits the way they were and slows down the recovery in the future? >> yeah. that would be a bigger risk if the policy response weren't so aggressive and the nature of this shock is different. the shock was not the result of corporate debt levels being high the shock was the result of a pandemic and shutdowns as a way to deal with the pandemic. the debt levels are a concern but they will not prevent the economy from starting to revive. this is probably going to go down as a shortest recession in u.s. history, also the sharpest so i'm not trying to down play it but the peak to trough downturn is probably going to end up totalling four or five months, shortest in history. >> and the s&p going maybe up to 3400 range from where we are now.

again, this is more out of consensus view when you published it a couple weeks ago. thank you for joining me to discuss it >> thank you up next, another streaming service hits the tv screen tomorrow amid competition and at a hefty price. that's next. check out shares of facebook on pace for its eighth straight day of trading gains that's the longest winning streak for facebook since september of 2015. the shares have added just about 20% over the past months as investors are optimistic of advertising. we''re back in a couple. talking through a new strategy... ... just in case things, you know, get a little rocky? i'm sorry on the upside i think that's waterproof. maybe not...

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welcome back to the exchange tomorrow another streaming

service enters an already crowded marketplace. hbo max making its debut there are some challenges. for more i'm joined by julia along with rob greenblatt. julia. >> thanks so much, kelly bob, thank you for joining us today. just a day ahead of hbo max launching. >> yes, nice to be here. so happy to be here. >> bob, this is quite intense timing for you to launch a new service. it's more expensive. you're launching with half dozen original shows we're seeing sports start to come back with a promise of more sports coming back are you concerned that consumers won't want to pay for yet another streaming service right now? >> actually, to the contrary

we are feeling good about what we have to offer we have the entire hbo service we have these deep libraries we have these third party aqcuisitions we have so many things to offer. we think this is a great proposition. we're a little late to the game but no time like the present >> well, you are a bit late to the game we have disney plus has already over 15 million paying subscribers. you're coming to market at a time when we're entering a recession. a lot of people are unemployed right now. are concerned about that price point and the fact there are so many streaming services out there? >> of course, we're always going to be a little concerned we didn't expect this pandemic to be hitting us at this moment in time. we also really feel good about where hbo has been in this marketplace for so long at this price point. what we're really giving people

is all of the hbo service but twice the content with all this new additional con tent. we feel good about the price point. also the fact people are wanting to consume more content now being home and sort of being in this situation that we're in >> you have talked about how there's an ad supported version in the works where does that stand now? are you trying to accelerate the l launch of an ad supported version so you can have something lower cost >> i think we're looking at that closely because it's good to offer the consumer a lower price point. i think it's going to take us a better part of a year to get the plans together we always felt the hbo content existed in ad free environment to go that way initially with the right strategy for us but i

think you'll find something like that down the road just don't have the entire plan put together yet >> now, in terms of the productions being impacted by covid. there's been stoppages of productions around the world right now. we're starting to see them happen again but production stoppages have impacted your content pipeline how much do you think we'll see that impact on the kinds of content you'll be able to introduce within the first couple of months and when do you expect to be able to start production again >> well, you won't see any real impact in first couple of months in fact, we're in pretty good shape through the rest of the summer and into the early fall we would be doing production now for later into the calendar year and the first quarter of next year we're in the same boat with

every one and hoping we can get the shows back into production sooner than later. we have so many people working on that front. the most important thing is safety and we have to bring so many people together to a set in order to get one of these things up and running i think it's going to be well into the fall before we get most of them back on their feet there are some things we'll able to do between now and then a little bit more in the home or we just picked up the show with selena gomez and her grandparents and a cooking show she's been doing during this covid situation. we can probably put that show into production pretty easily. getting these hundreds of people to the set is is really the most important thing and safety and doing it right is the most important. >> well a fascinating time for the industry i wish we could talk more but we'll have to have you back onto hear about how this launch goes.

thank you so much for joining us today. back over to you >> our thanks to you we appreciate it coming up, april home sales coming in way better than expected as people were out house hunting despite most states being on lockdown we'll dig into the surprising numbers. the ceo of winnebego michael happe joining us. don't miss it. or is it? what if business as usual means putting people first... and understanding their needs? if that's your business. 365 days of every year, then business as usual is precisely what these times require. which is why your lexus dealer will do what we've always done. put you first. find out how we can service your individual needs at lexus.com/peoplefirst. findiit's not "acceptablece your oor nothing."eds

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you keep being you, derek. keep being you. welcome back the home builder stock getting a little boost from today's positive housing data but it was a big boost. sales of newly built homes were

far better than expected in april. let's get to diana in washington with the numbers for us. >> reporter: new home sales came in with slight gain in april almost 1%. that may not seem like a lot but the expectation was for a 22% drop while sales were still lower than a year ago, that was a huge surprise to the up side. in addition, we also saw a big price drop part of which may have been due to mix of homes selling. the strength with in homes priced below $300,000. sales were weakest in the west which is the priciest region another help, a big drop in mortgage rates after they spiked in march these sales numbers represent signed contracts so people out shopping in april when rates were falling some are saying this is more evidence of urban flight that's the need for more space, especially outdoor space as so many people continue to shelter at home. >> we have a bidding war breaking out down the street now. it's crazy

>> reporter: yeah, the bidding war numbers are going up the competition is high and the supply is low. that's why the builders are seeing such demand sd >> you can tell people that want to get out in a you ahurry. thank you. that does it for the exchange today. i will join melissa over for power lunch which starts right now. our coverage of today's big market rally continues right now on "power lunch. the dow up 700 points crossing above 25,000 the nasdaq just 4% away from record highs progress in coronavirus vaccine and optimism on reopening the economy driving this action today. we have two big interviews this hour to dig deeper into the economic fall out and recovery bi bi rv sales have soared 170% during this pandemic. "power